VusionGroup

Good day and thank you for standing by. Welcome to the Fusion First Half 2026 Results Conference Call and Webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star, one, one, your telephone keypad. You will hear an automatic message advising your hand is raised. To withdraw a question, please press star, one, and one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Olivier Gersnant, Investor Relations Officer. Please go ahead.

Thank you, Nadia. Ladies and gentlemen, good afternoon to you all and welcome to our first half 2026 results presentation. We meet today our Thierry Gadot, our Chairman and Chief Executive Officer, as well as Thierry Lemaitre, our Deputy CEO of Finance and Corporate. Thierry Gadot will start with some remarks on the group's business performance. Thierry Camet will then make some comments on our financial performance, and both Thierrys will end the presentation with some comments on our full-year outlook. After these remarks, we will be happy to take your questions. As a reminder, some of the information to be discussed on our call today is forward-looking and subject to important risks and uncertainties that could cause actual results to differ materially. For these, I refer you to the safe harvest statement included on our press release, and on slide three of this presentation. This evening's release was issued a short while ago and is available in French and in English on Dijon's website, Dijon.com. The slides of this presentation can also be found on our website in the regulated information section. A replay and a transcript will, as usual, also be made available on our website after the call. And with that, it's my pleasure to hand you over to Thierry Gadot for his opening remarks.

Thank you, Olivier. Good afternoon. Good morning, everyone. Thanks for joining our conference call. I'm very pleased to present with Thierry Lemaître our results for the first half of the year. So, in summary, you already know our sales figures. We delivered around 30% organic revenue growth in H1, including an even higher growth in VAT revenues, which are revenues from software services and non-ESL solutions. and recurring VATs were even up by over 70% year-on-year. Our operating income grew sharply, much faster than our top line, as well as our net income, driven by our product mix and an improvement in both our VCM, buyable cost margin, and OPEX ratios. And by the way, this is both true for IFRS and adjusted figures. Our operational free cash flow also surged by over 50%, Fusion's balance sheet is strong with a positive net cash position. Finally, with this strong H1, we reiterate our full year 26 profitable growth guidance. So, let's review the semester's performance. As you know, the first half was in line with our expectations, delivering strong organic growth, around 30%, and even 37% at constant tariffs and foreign exchange rates. This growth was mostly driven by America, but with an improving momentum in Europe. EMEA revenues and order intakes grew in the first half. The momentum is good in the region. We win more deals and expand the business with our large customer base. Higher growth and more wins are expected in the second half, both in the grocery sector and other verticals. We expect revenue growth of 15% to 20% for the full year in EMEA. In the Americas, we'll have soon completed the very successful deployment of EdgeSense at Walmart in the United States, which is the first stream of a broader partnership. Other projects involving new solutions are underway, as well as expansion in new geographies, which will continue driving the activity. In addition, we have a strong pipeline with major North and South American retailers. We anticipate good momentum in H2. and strong future adoption in the region over the coming years, especially as the strong value of our new HS platform and the impressive results it delivers is now beginning to be visible at scale. So I won't comment further on the detailed sales number. We did that during our last conference call at the end of July. But here are just a few additional comments from an overall market perspective. First, our market share and leadership in the market has strengthened. In H1, our revenues are more than twice that of any of our competitors. And if you look at our leadership in, you know, it's even stronger in non-ESL revenues as our vast revenues is worth several times the accumulated amount achieved by our main competitors. Second, what makes us very proud of our performance since the beginning of the year and confident about the future is that, as I mentioned earlier, we begin to see at scale the value of the platform we created. I'd like to illustrate a few things around this idea. As you know, over 50,000 stores are now operated in our cloud platform. That's already two-thirds of our total stores installed base, and over half a billion cloud-managed devices, ESLs, smart rails, AI cameras. Our cloud activity is massive. with, for example, over 1.5 billion API calls last month. In terms of new use cases, with our technology, stores become guided stocking and picking environments, and we see a surge in the volume of guided tasks, which are guided pick-to-light and guided stock-to-light tasks, which have now reached over half a billion events per month. This is driving productivity, e-commerce growth, and better on-shelf availability for our customers. We now begin to see shoppers using in-store product finding and shop-to-live features already at over a million times a week, and this is growing fast. You can see on social media how shoppers are excited by these new features, and we have here a video with a selection of those, so we thought it might be interesting to have a two-minute video here.