Quadient Sa Unsp/Adr

Good evening and welcome to Quadient's first quarter 2025 sales presentation. I am Anne-Sophie Jujan, Quadient's head of investor relations, and I am here today with Geoffrey Godet, CEO, and Laurent Dupassage, CFO. We will have a short presentation followed by a Q&A. You can submit your questions in writing through the web or ask questions live by dialing in into the conference call. Thank you very much. And with that, over to you, Geoffrey.

Thank you Anne-Sophie. Good evening everybody. For the first quarter of 2025, we posted €258 million in revenue. This represents a 1.1% reported decline compared to the same period last year. As we highlighted during our last result conference call, this performance was, for the most of it, anticipated. As you'll remember, I set the expectation we would have a low Q1 and a progressive improvement quarter after quarter. In terms of Q1 solution achievement, I want to highlight a few things. We have, once again, posted another strong quarter for our digital and local solutions, with double-digit growth in subscription-related revenue for both solutions. Their strong performance underscored the strengths and the success of our offering against our competition and the fast pace of innovation that we bring today to our customers. In the first quarter, we experienced also a low point in the renewal cycle of mail equipment impacting the performance of our mail business. This is a cyclical trend that we had expected and we anticipate a recovery in our mail activity as we move forward. Additionally, this performance was amplified by the challenging macroeconomic environment, notably in the United States, a factor many companies currently are navigating. Despite the small top line decline in Q1, I am very pleased to say that our current EBIT has been growing organically compared to last year and supported by the EBITDA margin positive development in all three solutions. Let me repeat, in all three solutions. Our teams have demonstrated strong operational discipline by continuing to deliver steady profitability increase in our digital solution over the last two years, and now, more recently, over the last 12 months, for our lockers solutions. So, despite its lower top line, our mail solution also slightly improved its EBITDA margin as it benefited from the Frama integration. Looking ahead, we are confident in a stronger second half of 2025, and as I have just mentioned, we expect to see a progressive recovery in mail. Additionally, our momentum in digital and lockers is set to remain strong, with further improvements in their profitability that is expected. Our order pipeline across all solutions is promising as well, indicating a healthy demand for offerings. So naturally, based on these expectations, we are maintaining our full-year 2025 guidance. Laurent, over to you.

Moving to slide 6, thank you, Geoffrey. I would like to draw your attention to some noticeable movements in our shareholding. The Swiss hedge fund, Teleos, exited the shareholder base early April after having reduced their position to below 5% on March 27th. Conversely, Vesa Equity Investment, our largest shareholder, controlled by Daniel Kretinsky, has further demonstrated its long-term commitment, increasing its ownership to 22.6% as of April 1st, up from 16.5% at the end of January. The legal crossing notification associated with this movement can be found on the AMF website. Let me now give you the details of the Q1 sales performance. As you can see on the left-hand side, Q1 2025 is done organically by 2.5%, explained by a lower May placement in the US, while we saw continued growth in the recurring revenue, which is good news, and now represents 75% of total revenue, up from 72% last year. This reflects the strength of our subscription-based model. On the right-hand side, geographically, North America has always been positive since COVID, but indeed marks a decline this quarter, notably due to the lower point in the renewal cycle of mail equipment that was mentioned by Geoffrey, reinforced by the macroeconomic headwinds. In Europe, we can see the same trends as last year, but some countries are performing well or very well, notably the UK, which demonstrates good performance in all solutions. Moving now to slide 9 to see the bridge between Q1 last year and Q1 this year. This waterfall chart illustrates the key driver behind the revenue evolution from Q1 last year to Q1 this year. So starting with €261 million that we published last year, we see a €4 million positive scope effect from the acquisition of packets concierge. Digital and lockers contributed positively, with digital adding 4 million euros and lockers adding 3 million euros. However, the mail saw a 14 million euro decline, the majority being related to hardware. Currency effect were neutral this quarter, as you can see on the right hand side, with the US dollar stronger at the beginning of the quarter and the software at the end. The net result is a 3 million euro decrease, or a minus 1.1% reported, bringing us to 258 million euros. Over to you, Geoffrey, to give some details on our digital business. Thank you, Laurent.