Avolta Ag Unsp/Adr

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. Ladies and gentlemen, welcome to the Avolta Q3 Trading Update conference call and live webcast. I am Sandra, the course call operator. I would like to remind you that all participants have been listened only mode and the conference has been recorded. The presentation will be followed by a Q&A session. Thank you very much.

Good morning, good afternoon, good evening, everybody, and thank you for attending this trading update on quarter three results for Abolta. I'll go straight to page four of our presentation with some highlights of the current situation. I have said that many times, but what we are seeing in this quarter three is the direct consequence of our strategy. We implemented a new strategy in 2022, called Destination 2027, based on three key pillars. The focus on the traveler, both on the physical space and the digital space, geographical diversification, and a continuous improvement operating model. As a consequence of this strategy, we have been, year on year, increasing and diversifying our platform. Geographically, we are in many more countries than four years ago, also on business lines, complementing retail with food and beverage and vice versa, which gives us an increased level of resilience. Continuous improvement operating model is more flexible and faster for change than it was before. And that's what we are seeing in quarter three. Despite an increased volatility, starting with the Middle East crisis, but also the consequences that crisis had on the oil price, on the airfares, On affecting the level of traffic in certain regions of the world, like North America, where we have a slightly negative number of passengers. Despite all those that had an effect on Quarter 2, we see a fast recovery in Quarter 3. It's not by chance. The consequences of our network and resilience and the decisions we've been taking in the last few months on a pretty rapid manner. Going to the next step, to the next slide, we can see that in the organic growth. The organic growth in quarter three has reached 4.6%, way ahead of the 2.9 we had in the quarter two. Part of it, Thank you very much. is accelerating in EMEA, in North America slightly, and in Asia Pacific in a very considerable way. Not so in Latin America, but there are quite a few macro effects, like some elections, some macroeconomics, some climate-related effects in some locations. Once more, I think what is important is the resilience of the overall group. I know afterwards there will be detailed questions about growth in this region, in this month, in this quarter, but as I always say, of course there will be volatility. The shorter is the time, the more specific is the location, but that's what Avolta provides. Despite this local performance or underperformance, the overall, it goes on the right direction. Moving to the next slide, I think here we included this to reassure everybody that, of course, we focus on the short term. Of course, we try to compensate for the short-term headwinds, but we are equally committed to the transformational Thank you very much. is the name we give to all these digital and data-related initiatives that are continuously improving the business. I have repeated some of the data in this slide quite a few times, but I think it's so relevant I'll do it again. Of the 10 billion people that travels by plane, we have access to a quarter, 2.5 billion of those. We had 700 million of those being our customers. And Clappa Volta, our loyalty program, has reached 21 million active members, knowing that was launched only in October 2024. So just about two years. All the programs related To data have the purpose to gather as much data, as many signals as possible, from the customers, from the non-customers, and from the environment. But getting a lot of data is not enough to make value. You need to connect that data. So our data strategy is to convert as much as possible that data in elements we can use to change the business. And that's what we call deactivations. So as many signals as possible, to connect them as much as possible, but to convert them into specific actions. Clapper-Volta is one, but not the only one. This new digital data-driven approach It's changing the way we approach a sermon, to have it faster, adapting faster to what the passengers want. And if you do that efficiently, you also have advantages on the working capital. Getting the right pricing at the right moment, getting the right staffing. Sometimes we talk a lot about digital measures that affect The top line, but also there are a lot of digital transformation that affects directly the bottom line. So despite what happens quarter on quarter, we continue on the transformational elements of our strategy and we do not stop them. because we believe it's the future for the next few years. And moving to the next slide, just an update I typically give on Club of Volta. Club of Volta continues evolving, but not only on number of members. There are other measures, and we don't disclose all of them for obvious reasons, that are very important. For example, today, a third of the pre-ordering is already done through the Club of Volta app. Not through the website or other options you have but through the Club of Volta. Clapperbolt, as I said, is only one of the elements of our overall data and digital strategy, but of course is the one that provides for frequent flyers the highest possibility of intimacy. That's why we are getting traction quarter on quarter, not only with the passengers, but also with partners, airlines, BAP lounges, et cetera, people that wants to be part of this connection with the travelers. And the industry is recognizing year and year with a few awards that it is really the most advanced program in the travel space. The travel retail and travel food and beverage. But I want to say something. I still believe we can have a much better program, much bigger and much more value added. Moving to the next slide.

It's to emphasize a concept, consistency.