Quadient Sa Unsp/Adr

Good evening and welcome to Quadion's first quarter 2024 sales presentation. I am Catherine Hubert-Dorel, Quadion's Head of Investor Relations, and I'm here today with Geoffrey Godet, our CEO, and Laurent Dupassage, our CFO. We'll have a short presentation followed by a Q&A session. You can submit your questions in writing through the web or ask questions by dialing live into the conference call. Thank you very much. And with that, over to you, Geoffrey.

Thank you, Catherine, and good evening, everybody. 2024 started on a positive trend with Q1 sales reaching €261 million, which is up 3.2% on a reported basis and 1% for organic growth. Growth from subscription-related revenue is now representing 72% of our total revenue and continues to outpace our organic trend because it's increasing now by 1.2% organically against a relatively high 2023 comparison basis on that note. Regionally, North America is the most dynamic region for the group with a 2.4% organic increase. We had a solid business trend over the quarter and our revenue performance was in line with our expectation. So naturally, we confirm our financial guidance for the full year 2024. Lastly. and Laurent will come back to it later in the presentation, we raise also €155 million of new debt over the course of the first quarter, anticipating the maturity of our bond in early 2025. So, over to you, Laurent, for the details of our Q&A's performance.

Thank you, Geoffrey, and good afternoon and good morning, everyone. I'm Laurent Dupassage, I'm Quentin's Chief Financial Officer, and I'm happy to walk you through The Q1 revenue for Quadient, now moving to slide 7, as mentioned by Geoffrey, at €261 million, Quadient Q1 revenue is up by 1% organically compared to last year. When looking at breakdown by revenue category, both subscription and licensed hardware sales show positive trends. In hardware, very favorable MRS placement and ICA licenses have positively impacted the license and hardware for the quarter, which results in an unusual license and hardware trend at plus 1.9%, being more dynamic than subscription-related revenue at plus 1.2%. On subscription-related revenue, trends from ICA continue to offset natural MRS decline. From a geographical standpoint, on the right-hand side, North America continues its growth up 2.4%. Many European countries' growth is better than before, notably thanks to a good quarter in France, Benelux and Germany. Lastly, international is up by almost 1% thanks to a strong quarter for both MRS and ICA, which have more than offset the adverse trend in Parcel Locker due to the Yamato contract renegotiation. Turning to slide 8 and our traditional revenue bridge by solution. Total reported revenue for the quarter is up by 3.2%. Indeed, from the €253 million of Q1 2023, on the left-hand side, Italy being classified under IFRS 5 in this first number, the two main contributions to the reported growth are the €6 million of revenue from acquired companies, Daylight and Frama, as well as ICA growth, bringing another €4 million. This 4 million is the main contribution to the organic growth at plus 6% up compared to last year. The sum of mail-related solutions, parcel lockers and currency effects is limited, leading to a total reported growth of 3.2% and a group organic change of plus 1%. Now moving to the next slide. As a summary on this slide, you can see that Quadrant Q1 1% organic growth rate is supported by a good performance from North America from a geographical standpoint. From a solution standpoint now, MRS remains impressively resilient while ICA shows growth, allowing for total revenue growth despite some decline in past sale occur. Now, moving to the next slide, as mentioned by Geoffrey, and as you can recall, we have a bond maturing in 2025 with a remaining capital of €268 million to be reimbursed. I'm very happy to announce that we have already secured about €155 million of new debt, of which €140 million should shine, a mix of euro and dollar, with maturities ranging from three to seven years. And a €15 million of loan from BPI split in several tranches and maturities between four and seven years. We're still successfully extended by a year our revolving credit facility of €300 million. Now maturing in 2029, this credit facility is undrawn. Moving to the next slide for the solution review. Over to you, Geoffrey, for ICA.