Half Year 2026 SoftwareOne Holding AG Earnings Call

August 26, 2026

Speaker #2: Ladies and gentlemen, welcome to the SoftwareOne H1 2026 results conference call and live webcast. I am Matilde, the call operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded.

Operator: Ladies and gentlemen, welcome to the SoftwareOne H1 2026 Results Conference Call and live webcast. I am Matilde, the conference call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. 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 #2: 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. For operator assistance, please press star and 0.

Operator: For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Kjell Arne Hansen, Head of Investor Relations at SoftwareOne. Please go ahead.

Speaker #2: The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Shiel Arne Hansen, Head of Investor Relations at SoftwareOne.

Speaker #2: Please go ahead.

Speaker #3: Good morning, everyone, and thank you for joining SoftwareOne's H1 2026 presentation. My name is Kjell Arne Hansen, Head of Investor Relations at SoftwareOne. Joining me today are CEO Raphael Erb and CFO Hanspeter Schraner.

Kjell Arne Hansen: Good morning, everyone, and thank you for joining SoftwareOne's H1 2026 presentation. My name is Kjell-Arne Hansen, Head of Investor Relations at SoftwareOne. Joining me today are CEO, Raphael Erb, and CFO, Hanspeter Schraner. In terms of agenda, Raphael will start with an overview of the H1 2026 business performance. Hanspeter will then take us through our detailed financial performance, and finally, Raphael will present the outlook for 2026 and share his closing remarks. Before handing over, please let me draw your attention to the disclaimer regarding forward-looking statements and non-IFRS measures on slides two and three. With that, I will hand it over to Raphael.

Kjell Arne Hansen: Good morning, everyone, and thank you for joining SoftwareOne's H1 2026 presentation. My name is Kjell Arne Hansen, Head of Investor Relations at SoftwareOne. Joining me today are CEO, Raphael Erb, and CFO, Hanspeter Schraner. In terms of agenda, Raphael will start with an overview of the H1 2026 business performance.

Speaker #3: In terms of agenda, Raphael will start with an overview of the H1 2026 business performance. Hanspeter will then take us through our detailed financial performance, and finally, Raphael will present the outlook for 2026 and share his closing remarks.

Kjell Arne Hansen: Hanspeter will then take us through our detailed financial performance, and finally, Raphael will present the outlook for 2026 and share his closing remarks. Before handing over, please let me draw your attention to the disclaimer regarding forward-looking statements and non-IFRS measures on slides two and three. With that, I will hand it over to Raphael.

Speaker #3: Before handing over, please let me draw your attention to the disclaimer regarding forward-looking statements and non-IFRS measures on Slides 2 and 3. With that, I will hand it over to Raphael.

Speaker #4: Thank you, Kjell Arne. And a warm welcome to everyone joining the call. I'm proud of our performance in the first half of 2026. On a combined like-for-like basis, we delivered 11.6% year-on-year revenue growth.

Raphael Erb: Thank you, Kjell-Arne, and a warm welcome to everyone joining the call. I am proud of our performance in H1 2026. On a combined like-for-like basis, we delivered 11.6% year-on-year revenue growth. We also delivered a 24.9% adjusted EBITDA margin, a 4.5 percentage point improvement versus the prior year, with our profitability translating into a cash conversion ratio of 69% over the last 12 months. We achieved CHF 100 million of run rate cost synergies, delivering the top end of the announced target six months ahead of the original schedule. Integration is now substantially completed, with the company's focus shifting fully to commercial execution and customer value creation. Now, let us take a closer look at the financial results. I will mainly focus on the like-for-like performance, as this best illustrates the results of the combined business.

Raphael Erb: Thank you, Kjell Arne, and a warm welcome to everyone joining the call. I am proud of our performance in H1 2026. On a combined like-for-like basis, we delivered 11.6% year-on-year revenue growth. We also delivered a 24.9% adjusted EBITDA margin, a 4.5 percentage point improvement versus the prior year, with our profitability translating into a cash conversion ratio of 69% over the last 12 months.

Speaker #4: We also delivered a 24.9% adjusted EBITDA margin, a 4.5 percentage point improvement versus the prior year, with our profitability translating into a cash conversion ratio of 69% over the last 12 months.

Speaker #4: We achieved 100 million Swiss francs of run-rate cost synergies, delivering the top end of the announced target six months ahead of the original schedule.

Raphael Erb: We achieved CHF 100 million of run rate cost synergies, delivering the top end of the announced target six months ahead of the original schedule. Integration is now substantially completed, with the company's focus shifting fully to commercial execution and customer value creation. Now, let us take a closer look at the financial results. I will mainly focus on the like-for-like performance, as this best illustrates the results of the combined business.

Speaker #4: Integration is now substantially completed, with the company's focus shifting fully to commercial execution and customer value creation. Now, let's take a closer look at the financial results.

Speaker #4: I will mainly focus on the like-for-like performance, as this best illustrates the results of the combined business. Q2 '26 maintained a strong momentum from Q1, with revenue growing 10.4% year-on-year.

Raphael Erb: Q2 2026 maintained a strong momentum from Q1, with revenue growing 10.4% year-on-year. As a result, H1 2026 revenue increased 11.6% year-on-year, with all regions and business lines contributing to growth. As already mentioned, in H1 2026, we delivered an adjusted EBITDA margin of 24.9%, an improvement of 4.5 percentage points versus the prior year period. Q2 2026 was particularly strong, with adjusted EBITDA margin reaching 28.9%, up 5.4 percentage points year-on-year. I would also like to highlight that our reported EBITDA margin for H1 2026 was 22.7%. This is an increase of 5.2 percentage points compared to SoftwareOne standalone reported EBITDA in H1 2025, reflecting well-executed integration and synergy realization. Overall, our results illustrate the strengths of our business model and confirm the strategic rationale of the merger we closed a year ago. Now, let us look at the business line performance on a combined like-for-like basis.

Speaker #4: As a result, H1 2026 revenue increased 11.6% year-on-year, with all regions and business lines contributing to growth. As already mentioned, in H1 2026, we delivered an adjusted EBITDA margin of 24.9%, an improvement of 4.5 percentage points versus the prior year period.

Speaker #4: Q2 26 was particularly strong, with adjusted EBITDA margin reaching 28.9%, up 5.4 percentage points year-on-year. I would also like to highlight that our reported EBITDA margin for the first half of 2026 was 22.7%. This is an increase of 5.2 percentage points compared to SoftwareOne's standalone reported EBITDA in H1 25, reflecting well-executed integration and synergy. Overall, our results illustrate the strengths of our business model and confirm the strategic rationale of the merger we closed a year ago.

Raphael Erb: I would also like to highlight that our reported EBITDA margin for H1 2026 was 22.7%. This is an increase of 5.2 percentage points compared to SoftwareOne standalone reported EBITDA in H1 2025, reflecting well-executed integration and synergy realization. Overall, our results illustrate the strengths of our business model and confirm the strategic rationale of the merger we closed a year ago. Now, let us look at the business line performance on a combined like-for-like basis.

Speaker #4: Now, let's look at the business line performance on a combined like-for-like basis. In H1 26, all business lines showed positive growth, with Channel and Services showing an exceptional 35.6% and 17.4% growth at constant currency, respectively.

Raphael Erb: In H1 2026, all business lines showed positive growth, with Channel and Services showing an exceptional 35.6% and 17.4% growth at constant currency, respectively. Software and Cloud Direct grew 1.5% in H1, driven by EA to CSP conversion. This continued in Q2. However, growth declined 1.8% as the comparative period benefited from several larger deals. We expect Direct to return to growth in H2 2026. Adjusted EBITDA margin for H1 2026 ended at 50.8%, at the same level as last year. Our Channel business had an exceptional H1, growing 35.6% with an adjusted EBITDA margin ending at 57.2%, an increase of 9.3 percentage points versus prior periods. This clearly proves the key message from our CMD. This is a very scalable business model.

Speaker #4: Software and Cloud Direct grew 1.5% in H1, driven by EA to CSP conversion. This continued in Q2; however, growth declined 1.8%, as the comparative period benefited from several larger deals.

Speaker #4: We expect Direct to return to growth in H2 2026. Adjusted EBITDA margin for the first half of 2026 ended at 50.8%, at the same level as last year.

Raphael Erb: We expect Direct to return to growth in H2 2026. Adjusted EBITDA margin for H1 2026 ended at 50.8%, at the same level as last year. Our Channel business had an exceptional H1, growing 35.6% with an adjusted EBITDA margin ending at 57.2%, an increase of 9.3 percentage points versus prior periods. This clearly proves the key message from our CMD. This is a very scalable business model.

Speaker #4: Our channel business had an exceptional first half of the year, growing 35.6%, with an adjusted EBITDA margin ending at 57.2%, an increase of 9.3 percentage points versus the prior period.

Speaker #4: This clearly proves the key message from our CMD: This is a very scalable business model. The growth in H1 26 was led by the CSP business, as well as strong growth from other ISVs, with AWS at the forefront.

Raphael Erb: The growth in H1 2026 was led by CSP business, as well as strong growth from other ISVs, with AWS at the forefront. In addition, the expansion of CloudIQ to new countries further contributed to Q2 2026 performance. Performance in our Services business was also strong in the period led by CSP-related services. In addition, cloud services, especially in AWS and Google, data and AI, and cybersecurity continued to deliver strong performance. Profitability in Services business also improved, and our adjusted EBITDA margin ended at 8.5% for H1 2026, a significant increase from 3.3% in H1 2025. Growth in H1 2026 was broad-based across all our regions, and I would like to walk you through key highlights for each region. DACH grew 6.8%. Microsoft-related growth remained strong, driven mainly by continued EA to CSP conversion, which also drove double-digit growth in our Services business.

Speaker #4: In addition, the expansion of Cloud IQ to new countries further contributed to Q2 26 performance. Performance in our services business was also strong in the period, led by CSP-related services.

Speaker #4: In addition, cloud services—especially in AWS and Google—data and AI, and cybersecurity continued to deliver strong performance. Profitability in the services business also improved, and our adjusted EBITDA margin ended at 8.5% for H1 '26, a significant increase from 3.3% in H1 '25.

Raphael Erb: Profitability in Services business also improved, and our adjusted EBITDA margin ended at 8.5% for H1 2026, a significant increase from 3.3% in H1 2025. Growth in H1 2026 was broad-based across all our regions, and I would like to walk you through key highlights for each region. DACH grew 6.8%. Microsoft-related growth remained strong, driven mainly by continued EA to CSP conversion, which also drove double-digit growth in our Services business.

Speaker #4: Growth in H1 26 was broad-based across all our regions, and I'd like to walk you through key highlights for each region. DACH grew 6.8%. Microsoft-related growth remained strong, driven mainly by continued EA to CSP conversion, which also drove double-digit growth in our services business.

Speaker #4: Western Europe grew 11.7%, driven by strong double-digit growth in services and over 50% growth in channel, supported by continued EA to CSP acceleration in direct.

Raphael Erb: Western Europe grew 11.7%, driven by strong double-digit growth in services and over 50% growth in channel, supported by continued EA to CSP acceleration in direct. The Nordics delivered particularly strong growth of 26%. Our services business, which amount to over half of the regional revenue, grew close to 20%. Direct delivered double-digit growth and channel grew more than 50%. I am very pleased with our progress in North America, which delivered its second consecutive quarter of growth, up 8.6% for H1 2026. This was driven by channel, which nearly doubled year over year alongside strong services growth from CSP and AWS cloud services. APAC was our fastest-growing region, up 23% for H1 2026 and accelerating to 27% in Q2. Growth was broad-based with particular strengths in Australia and New Zealand, India, Southeast Asia, North China. The service business remains the primary growth engine, led by cloud services and cybersecurity.

Speaker #4: The Nordics delivered particularly strong growth of 26%. Our services business, which accounted for over half of the regional revenue, grew close to 20%. Direct delivered double-digit growth, and channel grew more than 50%.

Speaker #4: I'm very pleased with our progress in North America, which delivered its second consecutive quarter of growth, up 8.6% for H1 '26. This was driven by channel, which nearly doubled year over year, alongside strong services growth from CSP and AWS cloud services.

Raphael Erb: This was driven by channel, which nearly doubled year over year alongside strong services growth from CSP and AWS cloud services. APAC was our fastest-growing region, up 23% for H1 2026 and accelerating to 27% in Q2. Growth was broad-based with particular strengths in Australia and New Zealand, India, Southeast Asia, North China. The service business remains the primary growth engine, led by cloud services and cybersecurity.

Speaker #4: APAC was our fastest-growing region, up 23% for H1 '26 and accelerating to 27% in Q2. Growth was broad-based, with particular strengths in Australia and New Zealand, India, Southeast Asia, and North China.

Speaker #4: The services business remains the primary growth engine, led by cloud services and cybersecurity. LATAM grew 6.9% to 49.3 million Swiss francs, led by services, cybersecurity, data and AI, and AWS, with direct stable year-over-year. Brazil and Mexico both contributed positively.

Raphael Erb: LATAM grew 6.9% to CHF 49.3 million, led by services, cybersecurity, data and AI, and AWS, with direct stable year over year. Brazil and Mexico both contributed positively. Lastly, CEE grew 16.7% to CHF 42 million, with strong performance across all business lines, particularly in Hungary, Romania, and Bulgaria. Let me now share a great example of how SoftwareOne moves from project execution to strategic engagement. What started as a cloud migration project has become a strategic partnership. Together with Allianz Ayudhya, the Thailand-based subsidiary of Allianz, a leading global insurance and asset management company, we successfully migrated over 500 servers to AWS, reduced infrastructure operational run cost by 24%, and accelerated their cloud transformation journey.

Speaker #4: And lastly, CEE grew 16.7% to CHF 42 million, with strong performance across all business lines, particularly in Hungary, Romania, and Bulgaria. Let me now share a great example of how SoftwareOne moves from project execution to strategic engagement.

Raphael Erb: Let me now share a great example of how SoftwareOne moves from project execution to strategic engagement. What started as a cloud migration project has become a strategic partnership. Together with Allianz Ayudhya, the Thailand-based subsidiary of Allianz, a leading global insurance and asset management company, we successfully migrated over 500 servers to AWS, reduced infrastructure operational run cost by 24%, and accelerated their cloud transformation journey.

Speaker #4: What started as a cloud migration project has become a strategic partnership. Together with Allianz Ayudhya, the Thailand-based subsidiary of Allianz, a leading global insurance and asset management company, we successfully migrated over 500 servers to AWS, reduced infrastructure operational run costs by 24%, and accelerated their cloud transformation journey.

Speaker #4: Today, we are supporting broader modernization and innovation initiatives, such as the development of an app that would modernize Allianz Ayudia's life and health claims process, demonstrating how our business model and offering, coupled with successful execution, creates opportunities for deeper customer relationships.

Raphael Erb: Today, we are supporting broader modernization and innovation initiatives, such as development of an app that would modernize Allianz Ayudhya's life and health claims process, demonstrating how our business model and offering, coupled with successful execution, creates opportunities for deeper customer relationships. With that, I will hand it over to our CFO, Hanspeter Schraner, who will take you through the financial details of the first half of 2026.

Speaker #4: And with that, I will hand it over to our CFO, Hanspeter Schraner, who will take you through the financial details of the first half of ’26.

Speaker #5: Thank you, Raphael. And a welcome from my side as well. I will now take you through the IFRS income statement. As a reminder, the 2026 income statement includes Greyon, which has been consolidated since 1st of July 2025, and therefore significantly impacts year-over-year comparisons.

Hanspeter Schraner: Thank you, Raphael, and welcome from my side as well. I will now take you through the IFRS income statement. As a reminder, the 2026 income statement includes Crayon, which has been consolidated since 1 July 2025, and therefore significantly impacts year-over-year comparisons. Revenue through 68.2% to CHF 818.3 million in H1 2026. The performance also reflects tailwinds from multi-year CSP contracts and early renewals triggered by Microsoft price increases in July 2026, consistent with the trend we saw in Q1. Reported EBITDA increased to CHF 185.4 million, corresponding to a margin of 22.7%, a significant improvement of 5.2 percentage points versus the prior year, driven by strong revenue growth, synergy realization, and disciplined cost control. Depreciation and amortization include CHF 20.5 million of amortization associated with acquisition-related intangible assets arising from the purchase price allocation.

Speaker #5: Revenue grew 68.2% to $818.3 million in H1 26. The performance also reflects tailwinds from multi-year CSP contracts and early renewals, triggered by Microsoft price increases in July 26, consistent with the trend we saw in Q1.

Speaker #5: Reported EBITDA increased to CHF 185.4 million, corresponding to a margin of 22.7%—a significant improvement of 5.2 percentage points versus the prior year—driven by strong revenue growth, synergy realization, and disciplined cost control.

Hanspeter Schraner: Reported EBITDA increased to CHF 185.4 million, corresponding to a margin of 22.7%, a significant improvement of 5.2 percentage points versus the prior year, driven by strong revenue growth, synergy realization, and disciplined cost control. Depreciation and amortization include CHF 20.5 million of amortization associated with acquisition-related intangible assets arising from the purchase price allocation.

Speaker #5: Depreciation and amortization include $20.5 million of amortization associated with acquisition-related intangible assets arising from the purchase price allocation. The net financial result mainly reflects higher debt levels following the Greyon acquisition, whereas the prior-year period benefited from positive fair value adjustments on SoftwareOne's pre-existing investment in Greyon.

Hanspeter Schraner: The next financial results mainly reflect higher debt levels following the Crayon acquisition, whereas the prior year period benefited from positive fair value adjustments on SoftwareOne's preexisting investment in Crayon. H1 2026 effective tax rate was impacted by non-capitalized tax losses and non-tax-deductible expenses. As a result, net profit for H1 2026 amounted to CHF 54.3 million. Let me now turn to the bridge from the reported EBITDA to adjusted EBITDA. Adjustments remain low and continue to be largely driven by the Crayon integration activities. In H1 2026, CHF 60.9 million of the total of CHF 18.4 million EBITDA adjustments related to Crayon integration costs. Since the start of the integration in 2025, cumulative Crayon integration expenses have reached CHF 42.3 million as of H1 2026.

Speaker #5: The H1 26 effective tax rate was impacted by non-capitalized tax losses and non-tax-deductible expenses. As a result, net profit for H1 26 amounted to CHF 54.3 million.

Hanspeter Schraner: As a result, net profit for H1 2026 amounted to CHF 54.3 million. Let me now turn to the bridge from the reported EBITDA to adjusted EBITDA. Adjustments remain low and continue to be largely driven by the Crayon integration activities. In H1 2026, CHF 60.9 million of the total of CHF 18.4 million EBITDA adjustments related to Crayon integration costs. Since the start of the integration in 2025, cumulative Crayon integration expenses have reached CHF 42.3 million as of H1 2026.

Speaker #5: Let me now turn to the bridge from reported EBITDA to adjusted EBITDA. Adjustments remain low and continue to be largely driven by the Gredyon integration activities.

Speaker #5: In H1 '26, $60.9 million of the total $118.4 million EBITDA adjustments related to Greyon integration costs. Since the start of the integration in '25, cumulative Greyon integration expenses have reached $142.3 million as of H1 '26.

Speaker #5: We now expect total cumulative integration cost by the end of '27 to be in the range of $75 million to $85 million, below the initial estimate of $80 million to $100 million.

Hanspeter Schraner: We now expect total cumulative integration costs by the end of 2027 to be in the range of CHF 75 to 85 million, below the initial estimate of CHF 80 to 100 million. Looking ahead, we anticipate realizing a further CHF 5 to 10 million of cost synergies by the end of 2026. With approximately CHF 20 million of integration expenses expected in H2 2026, around CHF 20 million of integration costs remain to be incurred in 2027. This slide summarizes OpEx development on a combined like-for-like basis. OpEx remained broadly flat year over year at CHF 632.9 million. Cost discipline remains intact. Realized incremental in-year cost synergies of CHF 37 million were largely offset by tax inflation, performance-related compensation, growth invests, and higher third-party delivery costs linked to revenue growth. FX further reduced OpEx. EBITDA adjustments also reduced from CHF 33 million to CHF 18 million, reflecting the improvements from reported to underlying profitability.

Speaker #5: Looking ahead, we anticipate realizing a further $5 to $10 million of cost synergies by the end of 2026, with approximately $20 million of integration expenses expected in H2 2026. Around $20 million of integration costs remain to be incurred in 2027.

Speaker #5: This slide summarizes OPEX developments on a combined like-for-like basis. OPEX remained broadly flat year over year, at $632.9 million. Cost discipline remains intact. Realized incremental in-year cost synergies of $37 million were largely offset by OPEX inflation, performance-related compensation growth, investments, and higher third-party delivery costs linked to revenue growth.

Hanspeter Schraner: OpEx remained broadly flat year over year at CHF 632.9 million. Cost discipline remains intact. Realized incremental in-year cost synergies of CHF 37 million were largely offset by tax inflation, performance-related compensation, growth invests, and higher third-party delivery costs linked to revenue growth. FX further reduced OpEx. EBITDA adjustments also reduced from CHF 33 million to CHF 18 million, reflecting the improvements from reported to underlying profitability.

Speaker #5: A fix further reduced OPEX. EBITDA adjustments also reduced from $33 million to $18 million, reflecting the improvement from reported to underlying profitability. Turning to the balance sheet.

Hanspeter Schraner: Turning to the balance sheet. As of June 2026, net debt stood at CHF 408 million, up from CHF 369.3 million at year-end 2025. Gross debt primarily consists of the CHF 550 million term loan and CHF 200 million drawn on the revolving credit facility. As planned, the bridge facility was fully repaid in January 2026. Comparison to June 2025 should be viewed with some caution, as the June 2025 balance sheet reflects the pre-closing structure. At that time, we had both the bridge facility drawdown and the Crayon shares recorded as financial assets prior to settlement of the transaction. Net working capital after factoring improved to -CHF 509.2 million as of June 2026, compared to -CHF 216.6 million a year ago. This improvement mainly reflects the structurally attractive and acquired working capital profile of Crayon.

Speaker #5: As of June 26, net debt stood at €408 million, up from €369.3 million at year-end '25. Gross debt primarily consists of the €550 million term loan and €200 million drawn under the revolving credit facility.

Speaker #5: As planned, the bridge facility was fully repaid in January '26. Comparison to June '25 should be viewed with some caution, as the June '25 balance sheet reflects the pre-closing structure.

Speaker #5: At that time, we had both the bridge facility drawdown and the Greyon shares recorded as financial assets prior to settlement of the transaction. Net working capital after factoring improved to negative CHF 509.2 million as of June 26, compared to negative CHF 216.6 million a year ago. This improvement mainly reflects the structurally attractive and acquired working capital profile of Greyon.

Hanspeter Schraner: At that time, we had both the bridge facility drawdown and the Crayon shares recorded as financial assets prior to settlement of the transaction. Net working capital after factoring improved to -CHF 509.2 million as of June 2026, compared to -CHF 216.6 million a year ago. This improvement mainly reflects the structurally attractive and acquired working capital profile of Crayon.

Speaker #5: Intangible assets increased substantially following the acquisition, and now include the goodwill and the acquired intangible asset recognized as part of the purchase price allocation.

Hanspeter Schraner: Intangible assets increased substantially following the acquisition and now include the goodwill and acquired intangible asset recognized as part of the purchase price allocation. I would also like to note that we have now finalized the purchase price allocation for the Crayon acquisition. As a result of this final valuation work, goodwill was adjusted by CHF 22.5 million retrospectively as of the acquisition date. Importantly, this is a balance sheet remeasurement. There is no impact on SoftwareOne's cash flow, underlying operating performance, or previously communicated synergy expectations. Overall, equity increased to CHF 992.7 million, almost doubling versus June last year, reflecting the capital increase related to the Crayon acquisition and the profit for the period, partially offset by dividend paid and currency translation adjustments over the period. Turning to working capital, which remains a key management focus.

Speaker #5: I would also like to note that we have now finalized the purchase price allocation for the Greyon acquisition. As a result of this final valuation work, goodwill was adjusted by $22.5 million retrospectively, as of the acquisition date.

Speaker #5: Importantly, this is a balance sheet remeasurement that has no impact on SoftwareOne's cash flow, underlying operating performance, or previously communicated synergy expectations. Overall, equity increased to CHF 992.7 million, almost doubling versus June last year, reflecting the capital increase related to the Greycon acquisition and the profit for the period, partially offset by dividends paid and currency translation adjustments over the period.

Hanspeter Schraner: There is no impact on SoftwareOne's cash flow, underlying operating performance, or previously communicated synergy expectations. Overall, equity increased to CHF 992.7 million, almost doubling versus June last year, reflecting the capital increase related to the Crayon acquisition and the profit for the period, partially offset by dividend paid and currency translation adjustments over the period. Turning to working capital, which remains a key management focus.

Speaker #5: Turning to working capital, which remains a key management focus. On a like-for-like basis, and looking at the last 12-month period to June 26, net working capital before factoring improved by €46 million.

Hanspeter Schraner: On a like-for-like basis and looking at the last 12-month period to June 2026, net working capital before factoring improved by CHF 46 million. These improvements came even as we used our utilization of short-term factoring by CHF 12 million. So after factoring, the net improvement was CHF 34 million. I would like to emphasize that we delivered strong growth across the combined business while keeping net working capital broadly stable. This reflects continued discipline in working capital management and ongoing improvements in our underlying processes, which remains a priority going forward. At our Capital Markets Day, we introduced a cash conversion target above 60% throughout 2026 to 2030 periods. On a last 12 month basis, we delivered a 69% cash conversion, excluding the impact of factoring. Last 12 month operating cash flow was CHF 271.6 million, primarily driven by profitability.

Speaker #5: This improvement has even reduced our utilization of short-term factoring by $12 million, so after factoring, the net improvement was $34 million. I would like to emphasize that we delivered strong growth across the combined business while keeping net working capital broadly stable.

Speaker #5: This reflects continued discipline in working capital management and ongoing improvements in our underlying processes, which remains a priority going forward. At our Capital Markets Day, we introduced a cash conversion target above 60% throughout the 2026 to 2030 period.

Hanspeter Schraner: This reflects continued discipline in working capital management and ongoing improvements in our underlying processes, which remains a priority going forward. At our Capital Markets Day, we introduced a cash conversion target above 60% throughout 2026 to 2030 periods. On a last 12 month basis, we delivered a 69% cash conversion, excluding the impact of factoring. Last 12 month operating cash flow was CHF 271.6 million, primarily driven by profitability.

Speaker #5: On our last 12-month basis, we delivered a 69% cash conversion, excluding the impact of factoring. Last 12-month operating cash flow was $271.6 million, primarily driven by profitability.

Speaker #5: Adjusting for the CHF 12 million reduction in factoring utilization, operating cash flow was CHF 283.6 million. After capex of CHF 71.9 million, free cash flow amounted to CHF 211.7 million.

Hanspeter Schraner: Adjusting for the CHF 12 million reduction in factoring utilization, operating cash flow was CHF 283.6 million. After CapEx of CHF 71.9 million, free cash flow amounted to CHF 211.7 million. Against last 12 months reported EBITDA of CHF 308 million, this translates into a cash conversion rate of 69%, well above the target. Last 12 months CapEx of CHF 71.9 million was primarily related to internal IT investments, followed by platform investments, with services and other investments accounting for the remainder. As outlined at the Capital Markets Day, we expect CapEx to increase modestly during 2027 and 2028 as we accelerate investments in platforms, internal IT, and D&T initiatives. During this period, CapEx is expected to represent approximately 7% to 8% of revenue before normalizing towards around 5% from 2029 onwards.

Speaker #5: Against last 12-month reported EBITDA of $308 million, this translates into a cash conversion rate of 69%, well above the target. Last 12-month capex of $79.19 million was primarily related to internal IT investments, followed by platform investments, with services and other investments accounting for the remainder.

Speaker #5: As outlined at the Capital Market Day, we expect capex to increase modestly during '27 and '28, as we accelerate investments in platforms, internal IT, and ERP initiatives.

Hanspeter Schraner: As outlined at the Capital Markets Day, we expect CapEx to increase modestly during 2027 and 2028 as we accelerate investments in platforms, internal IT, and D&T initiatives. During this period, CapEx is expected to represent approximately 7% to 8% of revenue before normalizing towards around 5% from 2029 onwards.

Speaker #5: During this period, capex is expected to represent approximately 7% to 8% of revenue before normalizing towards around 5% from 2029 onwards. Regarding cash conversion, we continue to expect a meaningful tailwind from net working capital improvements over the first three years of the plan period, with benefits moderating thereafter.

Hanspeter Schraner: Regarding cash conversion, we continue to expect a meaningful tailwind from net working capital improvements over the first three years of the plan period, with benefits moderating thereafter. The exact phasing will naturally depend on the pace at which we execute further working capital improvements across the combined business. Turning to the H1 2026 cash flow statement. It generated operating cash flow of CHF 90.1 million, up slightly from CHF 87.1 million in the prior year period, supported by stronger profitability. Profit for the period increased significantly from CHF 9.1 million to CHF 54.3 million. This benefit was largely offset by working capital movements, which resulted in CHF 72.1 million cash outflow in H1 2026, compared to a cash inflow of CHF 81.8 million in the prior year. The prior year period benefited from the introduction of our then new non-recourse factoring program.

Speaker #5: The exact phasing will naturally depend on the pace at which we execute further working capital improvements across the combined business. Turning to the H1 2026 cash flow statement.

Hanspeter Schraner: Turning to the H1 2026 cash flow statement. It generated operating cash flow of CHF 90.1 million, up slightly from CHF 87.1 million in the prior year period, supported by stronger profitability. Profit for the period increased significantly from CHF 9.1 million to CHF 54.3 million. This benefit was largely offset by working capital movements, which resulted in CHF 72.1 million cash outflow in H1 2026, compared to a cash inflow of CHF 81.8 million in the prior year. The prior year period benefited from the introduction of our then new non-recourse factoring program.

Speaker #5: We generated operating cash flow of CHF 90.1 million, up slightly from CHF 87.1 million in the prior-year period, supported by stronger profitability. Profit for the period increased significantly from CHF 9.1 million to CHF 54.3 million.

Speaker #5: This benefit was largely offset by working capital movements, which resulted in a €72.1 million cash outflow in H1 ’26, compared to a cash inflow of €81.8 million in the prior year. The prior-year period benefited from the introduction of our then-new non-recourse factoring program.

Speaker #5: Investing cash flow amounted to an outflow of $34.2 million, primarily reflecting $36.5 million of capex, broadly in line with the prior period and focused on internal IT and platform investments.

Hanspeter Schraner: Investment cash flow amounted to an outflow of CHF 34 million, primarily reflecting CHF 36.5 million CapEx, broadly in line with the prior period, and focused on internal IT and platform investments. This compares an outflow of CHF 64.7 million in H1 2025, which included the settlement of the swap agreement related to the Crayon investment. Financing cash flow was outflow of CHF 102.4 million compared to an inflow of CHF 369.3 million in the prior year. This year's figure was negatively impacted by the acquisition of Crayon minority interests. The prior year's figure, by contrast, benefited from CHF 424.2 million drawdown of the Crayon acquisition bridge facility. As a result, cash and cash equivalents were CHF 382.8 million at the end of June 2026, compared with CHF 419.1 million at the beginning of the year. Let me conclude with the development of net debt over the last 12 months.

Speaker #5: This compares an outflow of CHF 64.7 million in H1 2025, which included the settlement of the swap agreement related to the Greyon investment. Financing cash flow was an outflow of CHF 102.4 million, compared to an inflow of CHF 369.3 million in the prior year.

Speaker #5: This year's figure was negatively impacted by the acquisition of Greyon minority interests. By contrast, the prior year's figure benefited from a €424.2 million drawdown of the Greyon acquisition bridge facility.

Hanspeter Schraner: This year's figure was negatively impacted by the acquisition of Crayon minority interests. The prior year's figure, by contrast, benefited from CHF 424.2 million drawdown of the Crayon acquisition bridge facility. As a result, cash and cash equivalents were CHF 382.8 million at the end of June 2026, compared with CHF 419.1 million at the beginning of the year. Let me conclude with the development of net debt over the last 12 months.

Speaker #5: As a result, cash and cash equivalents were $382.8 million at the end of June 26, compared with $419.1 million at the beginning of the year.

Speaker #5: Let me conclude with the development of net debt over the last 12 months. As of June 26, net debt stood at CHF 408 million, with a leverage ratio of 1.1.

Hanspeter Schraner: As of 26 June, net debt stood at CHF 408 million, with a leverage ratio of 1.1. Compared to the net cash position of CHF 36.2 million in 25 June, the increase was mainly driven by the acquisition of Crayon. Beyond the acquisition itself, the key cash outflows were income taxes and interest paid, capital expenditures, and Crayon transaction and integration expenses. This concludes the H1 financial review. With that, I will hand over to Raphael for his closing remarks.

Speaker #5: Compared to the net cash position of $36.2 million in June 25, the increase was mainly driven by the acquisition of Greyon. Beyond the acquisition itself, the key cash outflows were income taxes and interest paid, capital expenditure, and Greyon transaction and integration expenses.

Speaker #5: This concludes the H1 financial review. With that, I will hand over to Raphael for his closing remarks.

Speaker #1: Thank you, Hanspeter. We are tracking well towards delivering against all targets. Looking at the numbers, FY25 revenue growth was 1.4%, and on an LTM basis to June 26, that's now at 8.9% growth.

Raphael Erb: Thank you, Hans-Peter. We are tracking well towards delivering against all targets. Looking at the numbers, FY25 revenue growth was 1.4%, and on an LTM basis to 26 June, that is now at 8.9% growth. Our 2026 guidance remains mid to high single-digit revenue growth. H2 2026 growth is expected to moderate as the benefits from accelerated EA to CSP conversion and early renewals, which supported H1, do not repeat at the same pace, compounded by a tougher comparison base in H225. On EBITDA margin, FY 2025 was 20.9% on an adjusted basis, with LTM now at 23.2%. We continue to guide to above 23% adjusted margin for 2026. Our dividend payout policy remains 30% to 50% of adjusted profit for 2026, moving to 30% to 50% of reported profit as we look forward to 2030. Lastly, our cash conversion outlook for 2026 is above 60%.

Speaker #1: Our 2026 guidance remains mid- to high single-digit revenue growth. H2 2026 growth is expected to moderate as the benefits from accelerated EA to CSP conversion and early renewals, which supported H1, don't repeat at the same pace, compounded by a tougher comparison base in H2 2025.

Speaker #1: On EBITDA margin, FY2025 was 20.9% on an adjusted basis, with LTM now at 23.2%. We continue to guide to above 23% adjusted margin for 2026.

Raphael Erb: On EBITDA margin, FY 2025 was 20.9% on an adjusted basis, with LTM now at 23.2%. We continue to guide to above 23% adjusted margin for 2026. Our dividend payout policy remains 30% to 50% of adjusted profit for 2026, moving to 30% to 50% of reported profit as we look forward to 2030. Lastly, our cash conversion outlook for 2026 is above 60%.

Speaker #1: Our dividend payout policy remains 30% to 50% of adjusted profit for 2026, moving to 30% to 50% of reported profit as we look forward to 2030.

Speaker #1: And lastly, our cash conversion outlook for 2026 is above 60%. We wanted to use today's update as an opportunity to give you a bit more detail on what's driving the path to our 2030 margin ambition.

Raphael Erb: We wanted to use today's update as an opportunity to give you a bit more detail on what is driving the path to our 2030 margin ambition we laid out at the Capital Markets Day in June. As a reminder, we are targeting an EBITDA margin above 28% by 2030, a five-percentage point improvement compared to the 2026 outlook, which we expect to face roughly linearly over the period. The largest contributor, around three percentage points, comes from AI and automation efficiencies, and further embedding that across our own internal processes. A further one percentage point comes from scaling our channel business. Margin expands faster than growth as we scale within our existing footprint and as we expand into new markets. The final percentage point comes from our services business.

Speaker #1: As we laid out at the Capital Markets Day in June, as a reminder, we are targeting an EBITDA margin above 28% by 2030—a 5 percentage point improvement compared to the 2026 outlook—which we expect to achieve roughly linearly over the period.

Speaker #1: The largest contributor, around three percentage points, comes from AI and automation efficiencies, and further embedding that across our own internal processes. A further one percentage point comes from scaling our channel business.

Raphael Erb: The largest contributor, around three percentage points, comes from AI and automation efficiencies, and further embedding that across our own internal processes. A further one percentage point comes from scaling our channel business. Margin expands faster than growth as we scale within our existing footprint and as we expand into new markets. The final percentage point comes from our services business.

Speaker #1: Margin expands faster than growth as we scale within our existing footprint and as we expand into new markets. The final percentage point comes from our services business, as AI drives a more scalable delivery model through, for example, central platforms that allow us to leverage expertise globally and standardize some delivery. Alongside continued SG&A efficiency, we expect this to improve margin with no dilution effect.

Raphael Erb: As AI drives a more scalable delivery model through, for example, central platforms that allow us to leverage expertise globally and standardize some delivery alongside continued SG&A efficiency, we expect this to improve margin with no dilution effect. Last but not least, as we have already said this during the CMD, sharpening our services portfolio is something that will contribute to the margin expansion. All three of these build on the foundation we have already delivered. Our CHF 100 million cost synergy program completed in H1 2026, and continued benefits from the more efficient operating model that the program put in place. Underpinning all of this is continuous cost discipline across the group. Now I am pleased to present our evolved executive board, effective from 1 September.

Speaker #1: And last but not least, as we have already said during the CMD, sharpening our services portfolio is something that will contribute to the margin expansion.

Speaker #1: All three of these build on the foundation we have already delivered. Our 100 million Swiss francs cost synergy program was completed in H1 26, and we continue to benefit from the more efficient operating model that the program put in place.

Raphael Erb: All three of these build on the foundation we have already delivered. Our CHF 100 million cost synergy program completed in H1 2026, and continued benefits from the more efficient operating model that the program put in place. Underpinning all of this is continuous cost discipline across the group. Now I am pleased to present our evolved executive board, effective from 1 September.

Speaker #1: Underpinning all of this is continuous cost discipline across the group. And now, I'm pleased to present our evolved executive board, effective from September 1.

Speaker #1: These changes mark the next phase of SoftwareOne's development, increasing regional representation at the executive board level and bringing customers, partners, and markets closer to decision making.

Raphael Erb: These changes mark the next phase of SoftwareOne's development, increasing regional representation at the executive board level and bringing customers, partners, and markets closer to decision-making. Regina Manfredi will assume responsibility for the full Americas region, expanding her current mandate for NORAM to include LATAM. Regina led Crayon's NORAM business ahead of the merger and has served as President of North America since July 2025. Rico Andreoli will lead the full EMEA region, broadening his responsibilities beyond Western Europe to include the Nordics, BAS, and CEE. Rico brings nearly two decades of experience at SoftwareOne, having joined in 2009 and most recently serving as Regional President, Western Europe. Varun Paliwal will continue to lead APAC, a region he has led since January 2025, after more than a decade in senior roles at SoftwareOne. Lastly, Guðmundur Aðalsteinsson has been appointed Chief Channel and Ecosystem Officer.

Speaker #1: Regina Manfredi will assume responsibility for the full Americas region, expanding her current mandate for NORAM to include LATAM. Regina led Greyon's NORAM business ahead of the merger and has served as president of North America since July 2025.

Speaker #1: Rico Andreoli will lead the full EMEA region, broadening his responsibilities beyond Western Europe to include the Nordics, DACH, and CEE. Rico brings nearly two decades of experience at SoftwareOne, having joined in 2009 and most recently serving as regional president, Western Europe.

Raphael Erb: Rico Andreoli will lead the full EMEA region, broadening his responsibilities beyond Western Europe to include the Nordics, BAS, and CEE. Rico brings nearly two decades of experience at SoftwareOne, having joined in 2009 and most recently serving as Regional President, Western Europe. Varun Paliwal will continue to lead APAC, a region he has led since January 2025, after more than a decade in senior roles at SoftwareOne. Lastly, Guðmundur Aðalsteinsson has been appointed Chief Channel and Ecosystem Officer.

Speaker #1: Varun Pallival will continue to lead APEC, a region he has led since January 2025, after more than a decade in senior roles at SoftwareOne.

Speaker #1: Lastly, Gudmundur Adal Steinsson has been appointed Chief Channel and Ecosystem Officer. Gudmundur recently served as Chief Partner and Sales Officer and brings more than 25 years in the software and cloud industry.

Raphael Erb: Guðmundur recently served as Chief Partner and Sales Officer and brings more than 25 years in the software and cloud industry, including a decade at Crayon in senior commercial leadership roles. Combined, the new structure strengthens accountability and supports faster execution. I would also like to mention that our Chief Operating Officer, Oliver Berchtold, has decided to leave the company. Let me close with a few key takeaways. With integration substantially complete and synergies of CHF 100 million achieved, our focus is now shifting fully from integration to commercial execution and customer value creation. We remain on track to deliver on our 2026 financial targets across growth, margin, and cash conversion. We continue to focus on sustainable working capital improvements to further strengthen our cash generation. Taken together, this sets a clear foundation for how we execute against our ambition going forward.

Speaker #1: Including a decade at Greyon in senior commercial leadership roles. Combined, the new structure strengthens accountability and supports faster execution. I would also like to mention that our Chief Operating Officer, Oliver Bergstolt, has decided to leave the company.

Speaker #1: Let me close with a few key takeaways. With integration substantially complete and synergies of $100 million achieved, our focus is now shifting fully from integration to commercial execution and customer value creation.

Raphael Erb: Let me close with a few key takeaways. With integration substantially complete and synergies of CHF 100 million achieved, our focus is now shifting fully from integration to commercial execution and customer value creation. We remain on track to deliver on our 2026 financial targets across growth, margin, and cash conversion. We continue to focus on sustainable working capital improvements to further strengthen our cash generation. Taken together, this sets a clear foundation for how we execute against our ambition going forward. With that, we will now move to the Q&A.

Speaker #1: We remain on track to deliver on our 2026 financial targets across growth, margin, and cash conversion. We continue to focus on sustainable working capital improvements to further strengthen our cash generation.

Speaker #1: Taken together, this sets a clear foundation for how we execute against our ambition going forward. And with that, we will now move to the Q&A.

Raphael Erb: With that, we will now move to the Q&A.

Speaker #2: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the telephone.

Operator 2: We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume from the webcast while asking a question. Anyone who has a question may press star and one at this time. The first question comes from the line of Nooshin Nejati from Deutsche Bank. Please go ahead.

Operator: We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume from the webcast while asking a question. Anyone who has a question may press star and one at this time. The first question comes from the line of Nooshin Nejati from Deutsche Bank. Please go ahead.

Speaker #2: You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two.

Speaker #2: Questioners on the phone are requested to disable the loudspeaker mode and, if possible, turn off the volume from the webcast while asking a question. Anyone who has a question may press star and one at this time.

Speaker #2: The first question comes from the line of Nooshin Nejati from Deutsche Bank. Please go ahead.

Nooshin Nejati: Hi. Good morning, Raphael. Good morning, Hanspeter, and congrats on the quarter. I have a couple of questions on margin. Given how strong margin has been in H1, why are you only reiterating the guide for 2026? I guess my question is, what are you expecting to be on margin in H2? On 2030 margin bridge, and thanks for the color, very useful. The biggest piece is from AI and automation efficiencies. How much investment do you need to achieve this? Where exactly do you see those coming from? Is it internal processes, SG&A, or delivery productivity? If I may, also on the linearity of that expansion, do you also expect the contribution from AI to be linear, or is that more back-end loaded? Thank you.

Speaker #3: Hi. Good morning, Rafal. Good morning, Hanspeter, and congrats on the quarter. I have a couple of questions on margin. Given how strong margin has been in H1, why are you only reiterating the guide for 2026?

Speaker #3: I guess my question is, what are you expecting to weigh on margin in H2? And on the 2030 margin bridge—and thanks for the color, very useful.

Speaker #3: The biggest piece is from AI and automation efficiencies. How much investment do you need to achieve this? And where exactly do you see those coming from?

Nooshin Nejati: How much investment do you need to achieve this? Where exactly do you see those coming from? Is it internal processes, SG&A, or delivery productivity? If I may, also on the linearity of that expansion, do you also expect the contribution from AI to be linear, or is that more back-end loaded? Thank you.

Speaker #3: Is it internal processes, SG&A, or delivery productivity? And if I may, also on the linearity of that expansion, do you expect the contribution from AI to be linear, or is that more backend loaded?

Speaker #3: Thank you.

Speaker #1: Thank you very much for the question. Maybe, first of all, on the EBITDA margin target. I think the lower end of the range would require a scenario where several things, I would say, would move against us at once.

Raphael Erb: Thank you very much for the question. Maybe first of all, on the EBITDA margin targets. I think, the lower end of the range would require a scenario where several things, I would say, would move against us at once. We are not seeing evidence of that today. The range, as guided, reflects the realistic band of outcomes. Based on the underlying growth trajectory, the momentum in services and channel, and the trends across our regions, we are comfortable that we will land in the range and we are, from an EBITDA margin, positive that we will not land at the bottom of the 23%. I hope this clarifies your question on the EBITDA margin. Then I think you had a point related to the AI efficiencies.

Speaker #1: We are not seeing evidence of that today. The range we have guided reflects a realistic band of outcomes. But based on the underlying growth trajectory, the momentum in services and channel, and the trends across our regions, we are comfortable that we will land in the range. From an EBITDA margin perspective, we are positive that we will not land at the bottom.

Raphael Erb: Based on the underlying growth trajectory, the momentum in services and channel, and the trends across our regions, we are comfortable that we will land in the range and we are, from an EBITDA margin, positive that we will not land at the bottom of the 23%. I hope this clarifies your question on the EBITDA margin. Then I think you had a point related to the AI efficiencies. We mentioned before on the trajectory to reach the 28% plus target for 2030 on EBITDA margin that we see this linearly improving. For AI related, for sure we see some more of the effects, probably 2028 onwards.

Speaker #1: Of the 23%. I hope this clarifies your question on the EBITDA margin. Then I think you had a point related to the AI efficiencies.

Speaker #1: We mentioned before, on the trajectory to reach the 28% plus target for 2030 on EBITDA margin, that we see this linearly improving. Now, for AI-related, for sure, we see some more of the effects probably 2028 onwards.

Raphael Erb: We mentioned before on the trajectory to reach the 28% plus target for 2030 on EBITDA margin that we see this linearly improving. For AI related, for sure we see some more of the effects, probably 2028 onwards.

Speaker #3: Right. And sorry, how much investment do you need to achieve this?

Nooshin Nejati: Right. Sorry, how much investment do you need to achieve this?

Raphael Erb: This is what we have communicated at the Capital Markets Day. The CapEx will increase in 2027, 2028 to, we said also today, 7% to 10% of revenue, funding these investments in AI and automation. The funding will come from the reuse of net working capital. So it should be in a way cash neutral. So we will have heavy investments the next two years and then benefiting the years beyond.

Speaker #1: I mean, this is what we have communicated at the Capital Market Day. The CAPEX will increase in '27, '28 to, we said also today, 7 to 12% of revenue.

Speaker #1: Funding these investments in AI and automation, and the funding will come from the release of net working capital. So, it should be, in a way, cash neutral.

Speaker #1: So we will have heavier investments in the next two years, and then benefit in the years beyond.

Speaker #3: Thank you. Very helpful.

Nooshin Nejati: Thank you. Very helpful.

Speaker #2: The next question comes from the line of Lurian Treisch from Kepler Cheuvreux. Please go ahead.

Operator 2: The next question comes from the line of Florian Treisch from Kepler Cheuvreux. Please go ahead.

Operator: The next question comes from the line of Florian Treisch from Kepler Cheuvreux. Please go ahead.

Speaker #4: Yes. Good morning, gentlemen. Thanks for taking my question. I have basically two questions around this EA to CSP shift. So, the first is: Can you kind of quantify the transitions you have seen in H1 and what you expect to happen in H2?

Florian Treisch: Yes. Good morning, gentlemen. Thanks for taking my question. I have basically two questions around this EA to CSP shift. The first is, can you kind of quantify the tailwinds you have seen in H1 and what you expect to happen in H2? Or can we argue that higher pricing at Microsoft can compensate for the higher comparison base in H2? The second one is, like you reflected, the CSP shift has also positively impacted your services margin. Can you maybe talk a bit about the sustainability in that segment if you look into the coming quarters? If it's fair to assume a 10% plus margin also the quarters to come. Thank you.

Speaker #4: Or can we argue that higher pricing at Microsoft can compensate for the higher comparison base in H2? And the second one is, like you flagged, that the CSP shift has also positively impacted your services margin.

Florian Treisch: The second one is, like you reflected, the CSP shift has also positively impacted your services margin. Can you maybe talk a bit about the sustainability in that segment if you look into the coming quarters? If it's fair to assume a 10% plus margin also the quarters to come. Thank you.

Speaker #4: Can you talk a bit about the sustainability in that segment if you look into the coming quarters? Is it fair to assume a 10% plus margin also in the quarters to come?

Speaker #4: Thank you.

Speaker #1: Thank you very much, Florian. We mentioned during the call that the EA to CSP conversion was a bit accelerated in H1, due to early renewals, and also due to the fact of the price increases of Microsoft as per July.

Raphael Erb: Thank you very much, Florian. We mentioned during the call that the EA to CSP conversion was a bit accelerated in H1 due to early renewals, also due to the fact of the price increases of Microsoft as per July. That clearly gave us certain tailwinds in H1. We mentioned that the tailwind is around 4 percentage points overall. This will then also have an impact on H2, where we see a bit of decelerated growth compared to H1. The second point, it is absolutely true that the EA to CSP conversion has an impact, not only on our direct or channel business but also on our services business line. It has a positive impact because we sell CSP always as a bundle, which consists of the license plus a service wrapped around. Typically, there are various support packages which we offer to our customers.

Speaker #1: And that clearly gave us certain tailwinds in H1. And we mentioned that the tailwind is around 4 percentage points overall. And this will then also have an impact on H2 where we see a bit of decelerated growth compared to compared to H1.

Raphael Erb: The second point, it is absolutely true that the EA to CSP conversion has an impact, not only on our direct or channel business but also on our services business line. It has a positive impact because we sell CSP always as a bundle, which consists of the license plus a service wrapped around. Typically, there are various support packages which we offer to our customers. There is always a service wrapped around. Obviously that then also helps us accelerate our services business and contributes to the growth which we have achieved in H1. It will also contribute to the growth which we see in H2.

Speaker #1: The second point: it's absolutely true that the EA to CSP conversion has an impact not only on our direct or channel business, but also on our services.

Speaker #1: The business line has a positive impact because we always sell CSP as a bundle, which consists of the license plus a service wrapped around it. Typically, there are various support packages that we offer to our customers.

Speaker #1: But there is always a service wrapped around, and obviously that then also helps us accelerate our services business and contributes to the growth which we have achieved in H1.

Raphael Erb: There is always a service wrapped around. Obviously that then also helps us accelerate our services business and contributes to the growth which we have achieved in H1. It will also contribute to the growth which we see in H2.

Speaker #1: And we'll also contribute to the growth, which we see in H2.

Speaker #4: Great. Thank you.

Florian Treisch: Great. Thank you.

Speaker #2: We now have a question from the line of Mark Burgie from Finanz und Wirtschaft. Please go ahead.

Operator 2: We now have a question from the line of Mark Börge from Finanz und Wirtschaft. Please go ahead.

Operator: We now have a question from the line of Mark Börge from Finanz und Wirtschaft. Please go ahead.

Speaker #4: Yes, thank you. Actually, my questions were already asked. Yes, I was interested in the tailwinds that you get due to the early renewals, but you’ve already clarified that.

Mark Börge: Yes. Thank you. Actually, my questions were already asked. Yes, I was interested about the tailwinds that you get due to the early renewals, but you already clarified that. Thank you.

Marc Bürgi: Yes. Thank you. Actually, my questions were already asked. Yes, I was interested about the tailwinds that you get due to the early renewals, but you already clarified that. Thank you.

Speaker #4: Thank you.

Speaker #1: Thank you.

Raphael Erb: Thank you.

Speaker #2: As a reminder, if you wish to register a question, please press star one on your telephone. The next question comes from the line of Christopher Tong from UBS.

Operator 2: As a reminder, if you wish to register for a question, please press star and 1 on your telephone. The next question comes from the line of Christopher Tong from UBS. Please go ahead.

Operator: As a reminder, if you wish to register for a question, please press star and 1 on your telephone. The next question comes from the line of Christopher Tong from UBS. Please go ahead.

Speaker #2: Please go ahead.

Speaker #1: Yeah. Morning everyone. Thanks

Christopher Tong: Yeah. Morning, everyone. Thanks for taking my question. Maybe just 1 from my side. On Microsoft 2027 incentive changes, I was just wondering what your thoughts were on the introduction of growth margins and the change of channel partner incentive changes.

Speaker #5: Thank you for taking my question. Maybe just one from my side. On Microsoft 2027 incentive changes, I was just wondering what your thoughts were on the introduction of growth margins.

Speaker #5: And the change of channel partner incentive changes.

Speaker #1: Thank you very much, Christopher. I mean, we think, broadly speaking, on the FY27 incentive framework, the focus is increasingly on growth, basically. And partners which grow fast, they can, I would say, benefit, right?

Raphael Erb: Thank you very much, Christopher. We think broadly speaking on the FY27 incentive framework, the focus is increasingly on growth, basically. Partners which grow fast, they can, I would say, benefit, right? As Microsoft announced, they announced this 5% margin reduction from October 2026 on products such as Microsoft 365, E1, E3, OneDrive, SharePoint. Based on our discussions with Microsoft and also our assessment, it suggests that we would not expect a meaningful impact overall. Any reduction on these products should largely be balanced by other incentive opportunity. Also, these products make up only a small part of our overall CSP business. Therefore, I would expect there is absolutely no material impact for us on the incentive changes. We see them as very neutral.

Speaker #1: As for Microsoft, they announced this 5% margin reduction from October 26th on products such as 365 E1, E3, OneDrive, and SharePoint. Based on our discussions with Microsoft and also our assessment, it suggests that we would not expect a meaningful impact overall.

Raphael Erb: Based on our discussions with Microsoft and also our assessment, it suggests that we would not expect a meaningful impact overall. Any reduction on these products should largely be balanced by other incentive opportunity. Also, these products make up only a small part of our overall CSP business. Therefore, I would expect there is absolutely no material impact for us on the incentive changes. We see them as very neutral.

Speaker #1: Any reduction on these products should largely be balanced by other incentive opportunities. Also, these products make up only a small part of our overall CSP business.

Speaker #1: And therefore, I would expect there is absolutely no material impact for us on the incentive changes. We see them as very neutral.

Speaker #5: Got it. Thank you very much.

Christopher Tong: Got it. Thank you very much.

Speaker #2: We now have a question from the line of Christian Bada from Zürcher Kantonalbank. Please go ahead.

Operator 2: We now have a question from the line of Christian Bader from Zürcher Kantonalbank. Please go ahead.

Operator: We now have a question from the line of Christian Bader from Zürcher Kantonalbank. Please go ahead.

Speaker #6: Yes, good morning. Congratulations on these excellent numbers. I have a question regarding taxes. Your IFRS reported tax rate was 42% in the first six months.

Christian Bader: Yes, good morning. Congratulations to these excellent numbers. I have a question regarding taxes. Your IFRS reported tax rate was 42% in the first 6 months. However, in terms of cash taxes, the cash effective tax rate was only 20%. I was wondering, can you maybe provide some color on what we should model for the full year? Some tax rate.

Speaker #6: However, in terms of cash taxes, the cash effective tax rate was only 20%. So I was wondering, can you maybe provide some color on what we should model for the full year?

Speaker #6: In terms of tax rate.

Speaker #1: Yeah, for '26, you can assume a more normalized tax rate in the range of 30%.

Raphael Erb: For 2026, you can assume a more normalized tax rate in the range of 30%.

Speaker #6: And is this a good run rate for the coming years thereafter?

Christian Bader: Is this a good runway for the years thereafter?

Speaker #1: Of course, the ambition is to further reduce, but for '26, given where we stand with integration, it's a reasonable rate for '26, yes.

Raphael Erb: Of course, the ambition is to further reduce. But for 2026, given the very standpoint integration, it is a reasonable rate for 2026. Yes.

Speaker #6: Okay. All right. Thank you.

Christian Bader: Okay. All right. Thank you.

Speaker #2: Once again, to ask a question, please press star and one on your telephone. We have a follow-up question from the line of Mark Burgie from Finance und Wirtschaft.

Operator 2: Once again, to ask a question, please press star and 1 on your telephone. We have a follow-up question from the line of Mark Börge from Finanz und Wirtschaft. Please go ahead.

Operator: Once again, to ask a question, please press star and 1 on your telephone. We have a follow-up question from the line of Mark Börge from Finanz und Wirtschaft. Please go ahead.

Speaker #2: Please go ahead.

Speaker #4: Yes, thank you. Could you maybe explain the logic behind the reorganization? Why did you decide to streamline it and reduce the number of regions?

Mark Börge: Yes. Thank you. Could you maybe explain the logic behind the reorganization? Why did you decide to streamline it and reduce the number of regions? Thank you.

Marc Bürgi: Yes. Thank you. Could you maybe explain the logic behind the reorganization? Why did you decide to streamline it and reduce the number of regions? Thank you.

Speaker #4: Thank you.

Speaker #1: Thank you, Mark. I mean, as we have mentioned, we are now going into the next phase—from integration towards customer focus and execution. That's really the key.

Raphael Erb: Thank you, Mark. I think we have mentioned, we go now into the next phase from integration towards customer focus and execution. That is really the key, and I think with that, it is very vital that we make sure that within the executive board, we really have the representation which is close to the customers and close to our markets. Therefore, elevating some of the regions into the executive board makes a lot of sense. That is what we have done now. We have 3 overarching regions with EMEA, Americas, and APAC, focusing exactly on this. Then we also, last but not least, very importantly, is the channel representation and our vendor partnership representation in the executive board with Guðmundur joining. We mentioned the channel business, which is part of 2030 strategy and plan, the fastest-growing business line, also a very margin accretive business line.

Speaker #1: And I think with that, it's very vital that we make sure that, within the executive board, we really have the representation which is close to the customers and close to our markets.

Speaker #1: And therefore, elevating some of the regions into the executive board makes a lot of sense, and that's what we have done now. We have three overarching regions.

Raphael Erb: We have 3 overarching regions with EMEA, Americas, and APAC, focusing exactly on this. Then we also, last but not least, very importantly, is the channel representation and our vendor partnership representation in the executive board with Guðmundur joining.

Speaker #1: With EMEA, Americas, and APAC. Focusing exactly on this. And then we also, last but not least—and very importantly—have the channel representation and our vendor partnership representation in the executive board, with Gutmunder joining.

Speaker #1: We mentioned the channel business, which is, as part of the 2030 strategy and plan, the fastest-growing business line, and also a very margin-accretive business line.

Raphael Erb: We mentioned the channel business, which is part of 2030 strategy and plan, the fastest-growing business line, also a very margin accretive business line. We have that now represented in the executive board. That is why basically we are very confident that, and I am personally, honestly very excited to work with this newly structured executive board moving forward.

Speaker #1: And we have that now represented in the executive board. And, yeah, that's why basically we are very confident, and I'm personally, honestly, very excited to work with this newly structured executive board moving forward.

Raphael Erb: We have that now represented in the executive board. That is why basically we are very confident that, and I am personally, honestly very excited to work with this newly structured executive board moving forward.

Speaker #4: Thank you.

Mark Börge: Thank you.

Marc Bürgi: Thank you.

Speaker #2: Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Shiel Arne Hansen for any closing remarks.

Operator 2: Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Kjell-Arne Hansen for any closing remarks.

Operator: Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Kjell-Arne Hansen for any closing remarks.

Speaker #1: Thank you, and thank you everyone for joining. As always, please don't hesitate to reach out to the IR team if you have any follow-up questions.

Kjell Arne Hansen: Thank you, and thank you everyone for joining. As always, please don't hesitate to reach out to the IR team if you have any follow-up questions. Thank you.

Speaker #1: Thank you.

Speaker #2: Ladies and gentlemen, the conference is now over. Thank you for choosing Coruscal, and thank you for participating in the conference. You may now disconnect your lines.

Operator 2: Ladies and gentlemen, the conference is now over. Thank you for attending the conference call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

Operator: Ladies and gentlemen, the conference is now over. Thank you for attending the conference call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

Browse all earnings call transcripts

Half Year 2026 SoftwareOne Holding AG Earnings Call

Request TrialDemo

SoftwareOne

Earnings