Synergie SE

Good evening and welcome to Quadient Alfeur 2025 results presentation. I am Anne-Sophie Jujan, Quadient's Head of Investor Relations. Today's presentation will be hosted by Geoffrey Godet, CEO, and Laurent Dupassage, CFO. The agenda for today's call is on slide 3. As usual, there will be an opportunity to ask questions at the end of the presentation. You can submit your questions in writing through the web or ask questions live by dialing into the conference call. Thank you very much. And with that, over to you, Geoffrey.

Thank you, Anne-Sophie. Good evening. The first half of 2025 showed a solid performance from our two growth engines, digital and lockers, with a double-digit growth in recurring revenue. Both solutions are firmly on a strong and predictable revenue growth trajectory. From a profitability standpoint, Locker's EBITDA margin also confirms its fast-improving trend, and both solutions are expected to deliver EBITDA margin increase for the full year 2025 and also for 2026. The end of the U.S. postal decertification program that we mentioned last time impacted our mail hardware sales in the U.S., leading to a temporary lower revenue in the period for a mail solution. All players in the industry have experienced similar declines. More importantly, we managed to protect the profitability of our mail solution thanks to the cross-selling between our solution and also the contribution from the recent integration of the Frama acquisition that we did more than a year ago. As a result, for the first half of 2025, we delivered €570 million in revenue, which represents a 3% organic decline compared to the same period last year. Despite the decline in male revenue, current EBIT for the period was stable at €60 million. So, Let's now turn to the details of our H1 result with Law.

Thank you, Geoffrey. Overall, Quadion delivered 517 million euros in total revenue in the first half of 2025, representing a 3% organic decline compared to last year. This reflects a 13.4% organic drop in non-current revenue affected by the lower male product placements in the US compared to last year, this certification period. Mail performance was very much in line with Q1 and also consistent with overall market trends. That said, our subscription-oriented revenue continued to grow and now stands at €384 million, representing 74% of total revenue, up from 72% last year. From a geographical perspective, North America has been declining by €10 million compared to last year, resulting from a €19 million decline in mail, while our other solutions continue to grow. Europe performance in H1 is in line with previous year, with a notable exception, UK and Ireland, overperforming the rest of Europe, as it benefits from strong dynamics in both lockers and digital. International has also been overperforming thanks to large locker deals. Let's now turn to the revenue bridge by solution on the next slide. This bridge clearly highlights the strong and continued momentum in both digital and locker solutions, while mail experienced a sharper decline of €31 million in the middle. Out of this €31 million, €16 million are coming from the lower US hardware placements. Just as in Q1, lockers delivered double-digit growth and digital grew above 7%, while mail declined by around 8% year-over-year. The scope effect added €9 million on the left, mainly coming from the acquisition of Package Concierge in December 2024, and to a lesser extent from the 7-Z acquisition in June 2025. On the right-hand side, you can see the 10 million euro negative currency effect entirely coming from Q2 due to US dollar. Moving now to the next slide on current EBIT. So slide 9, despite higher decline in mail, Quadrant delivered a stable current EBIT thanks to a slight growth of EBITDA and digital, a limited decline in mail thanks to our cost adjustments, as well as significant improvement in lockers, which is up by 5 million euros year over year. The reported current EBIT for H1 2025 stands at 60 million euros. It's nearly unchanged compared to the 61 from last year, with a slight positive organic growth, 0.1%, offset by the currency effect of 1.7 million euros on the right-hand side compared to last year. So now we'll move into the details of the performance by solution. Over to you, Geoffrey.