<a id="bm-comp-a67c9f3d-82ea-44b7-a369-58ae01260f10" name="bm-comp-a67c9f3d-82ea-44b7-a369-58ae01260f10" class="BMCustomAnchor"></a><table><tr><td bm-component-id="a67c9f3d-82ea-44b7-a369-58ae01260f10" style="vertical-align: top; width:100.000000%;"><ul><li>Cancom Q2 PW and cut FY'25 EBITA guidance by -25%, stock -8%</li><li>Blames reluctant customers, and particularly weak Germany</li><li>Germany is 16% for Proact, we expect no quick recovery</li></ul></td></tr></table><a id="bm-comp-12b35dcb-2d6c-43d5-a96a-6edfa96c59e3" name="bm-comp-12b35dcb-2d6c-43d5-a96a-6edfa96c59e3" class="BMCustomAnchor"></a><table><tr><td bm-component-id="12b35dcb-2d6c-43d5-a96a-6edfa96c59e3" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Another profit warning from Cancom</h3><p>German listed peer Cancom PW'd for Q2 yesterday evening and cut its FY'25 guidance on sales by -4% and EBITA by -25%. It blames "continued reluctancy of customers to buy", especially in its core market Germany. Q2 revenues were flat y-o-y, -3% vs FactSet cons but better than the -7% in Q1, while the new FY sales guidance implies -2% growth vs 2024 (vs previously +2% and FactSet cons at +1%). Stock -8% today.</p><h3 class="bm-h3">Slow recovery likely for Proact Germany</h3><p>Proact has also faced challenges in its German operations (part of segment Central) which represented 16% of sales in 2024, where its average organic growth has been -5% over the last two years. Proact is currently in a restructuring process of its German operations, to adapt to a lower market demand and increased focus on its core offering. This has partly been driven by aggressive price pressure from key competitors Bechtle and Cancom. Given yesterday's negative outlook from Cancom for the rest of the year in Germany, we expect no immediate changes to the competitive landscape, but the market to remain challenging near-term.</p></td></tr></table><a id="bm-comp-7b0b8159-b9f1-40ef-be04-b38903639102" name="bm-comp-7b0b8159-b9f1-40ef-be04-b38903639102" class="BMCustomAnchor"></a><table><tr><td bm-component-id="7b0b8159-b9f1-40ef-be04-b38903639102" style="vertical-align: top; width:100.000000%;"></td></tr></table>