Quadient Sa Unsp/Adr

Good evening and welcome to Quadient's third quarter 2025 sales presentation. I am Anne-Sophie Jean, 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 into the conference call. Thank you very much. And with that, over to you, Geoffrey.

Thank you, Anne-Sophie, and good evening, everybody. For the third quarter of 2025, Quadium delivered €248 million in revenue. While this reflects a 3.5% organic decline year-on-year, our growth engines continue to show a strong momentum. Digital accelerated with a 9.2% organic growth, driven by and sustained subscription growth across all regions. Our lockers business accelerated in subscription growth and once again posted double-digit subscription revenue growth. Subscription growth for the lockers is fueled by increasing customer adoption and the continued modernization of our U.S., Japanese, and European locker networks. Meanwhile, mail remained broadly in line with the previous quarter's trends, and we now expect the rebound in U.S. hardware sales in the fourth quarter firmly. Let me highlight a few key achievements in the third quarter. Quadient's digital SaaS-based intelligent automation platform is now number one worldwide. Let me repeat this. Number one worldwide for customer communication management according to the latest IDC ranking with an 11% market share in 2024. We are also expanding our portfolio with the future acquisition of CDP Communications, a pioneer in document accessibility and automation. This is an opportunity to reinforce our number one position on the market. On the e-invoicing side, Cerenzia by Quadient, our recent acquisition of Q2, has completed all tests and is on track for final accreditation from the French tax authority. And this ahead of France's national invoicing rollout planned for 2026. On the locker side, we're expanding our European Open Locker Network to Italy, further extending our footprint. Looking at the first nine months of the year, both digital and lockers delivered a double-digit growth in subscription-related revenue. So naturally, combined with the expected year-on-year, full-year EBITDA margin improvement in these two activities, digital and lockers, and the continued resilience of nail margin, these results give us confidence in achieving our full-year 2025 credits. To you, Laurent.

Thank you, Geoffrey. Good afternoon, everyone. So on slide 6, I would like to highlight some important developments in our shareholding structure since end of July. Here you can see the shareholder positions as of the end of October. Our main shareholders have recently reinforced their commitment to Quadient. Vesa Equity Investment, our largest shareholder controlled by Daniel Kuczynski, has further demonstrated its long-term commitment. On September 22nd, Vesa crossed the 25% legal threshold. And by the end of October, it held 26.1% of Quadient shares, up from 22.7% held at the end of July. In addition, BPI France has also strengthened its position, rising from 8.1% at the end of July to 9.2% at the end of October. Furthermore, BPI France continues to increase its stake after October 31st, reaching 9.91% as of November 14th. BPI France public disclosures are available on the AMF website. Let me now go over the details of the 9 months key financials. Moving now to slide 8. This waterfall chart shows the main factors behind the revenue evolution from the first nine months of 2024 to the same period in 2025. Starting on the left with 797 million euros, we see a 13 million euro positive scope effect. It's mainly coming from the acquisition of Paquets Concierge in December last year and to a lesser extent from Serenza. Digital and lockers contributed positively, with digital adding 15 million euros and lockers 7 million euros. However, you can see mail saw a 48 million euro decline. It's more than half being related to hardware. And finally, currency effect stands at minus 19 million euros due to US dollar, weaker this year than last year, starting Q2 onwards. This results in a net 32 million euro decrease. It's a minus 4% reported, bringing us to the 765 million euros. Moving now to slide 9 to see the revenue evolution by geography. So due to the large success of the certification last year and slower recovery than expected this year, North America Q3 and 9-month revenues declining around minus 4% compared to the year before, despite the good performance of growth engines locally. It differs from the past year trends. On the other side, many European countries and international dynamics continue to show a decline consistent with past quarters, with mail trend partially offset by lockers and digital growth. But I think we need to mention that we have extremely promising install-based development on locker side, UK, France, Italy, and also on invoicing side for digital. Moving now to slide 10. So in the past years, we have been focusing on delivering sustainable growth on subscription-related revenue, fueled by the acceleration of digital and locker subscription revenue streams. Subscription-related revenue from these two gross engines is up by 11.4% in the first nine months of 2025 and represents €228 million, as you can see on the left-hand side. Looking at the longer term, the strategy focusing on this long-lasting, predictable revenue has paid off when you look at the right-hand side of the slide. Since 2020, the share of subscription-related Revenue from digital and lockers have almost doubled, supported by a 15% CAGR over the 2020-2025 period. This reflects our strategic move from a transactional, deal-based model to a recurring revenue model, a transformation we first implemented in mail and successfully replicated into digital and lockers. Year after year, subscription revenue has grown steadily, driven by an expanding install base, strong market trends, digitalization and automation, as well as parcel growth linked to e-commerce. While mail continues to contribute, its share of subscription revenue is gradually declining due to the market decline, primarily due to the mail volume decline. And this is affected by the growth in subscription-related revenue of digital and lockers. So let's now move to the business review section over to you, Geoffrey, to give some details on our digital business. Thank you, Laurent.