Quadient Sa Unsp/Adr

Good evening, everyone, and welcome to Quadient's first quarter 2026 revenue call. I'm Laura Paxton, Head of Investor Relations at Quadient, and I'm here today with Geoffrey Godet, CEO, and Laurent Dupassage, CFO. We will have a short presentation followed by a Q&A, and then you can submit your questions in writing through the web or ask questions live by dialing into the conference call. The presentation and press release are now available on our website at invest.quodient.com, and the replay of the call will also be available on our website. Thank you very much for joining us this evening. I will now hand over to you, Geoffrey.

Thank you, Laurent, and welcome, Laurent. Good evening, everyone. Starting on slide five, so let me start with a brief reminder of some of the key dynamics shaping our performance as we entered 2026. As you remember, as I have outlined during our full year results, we continue to operate in an environment that has been driven by key structural trends, right? So, first one is the acceleration of digitalization, supported in particular by AI and the Involucing Mandate. And the second one is the ongoing structural evolution of the mail market. Along the side of our full year result in 2025, we also announced a major realization of the Executive Committee, with a very clear intention. Align the leadership with our operational priorities, and most importantly, put our digital automation platform at the center of the company, with the clear goals to accelerate both growth and innovation. Now, this has already enabled a sharper and more coordinated go-to-market approach, and particularly when it comes to e-innovating in Europe. invoicing is not just a one-size-fits-all rollout, right? It requires local execution aligned with country-specific regulation and ecosystems. And traction is already coming through. So notably in France, ahead of the September 2026 deadline. And contributing to the strong acceleration we're now seeing in the digital ARR. So against this, the first quarter is in line with the trajectory that we set out at the beginning of the year. So if we now look at the performance by solution, you can see how these trends are translating across markets. In digital, ARR growth accelerated sharply, up around 16% on an annualized basis versus the end of January 2026. This was supported by both solid booking activity and low-term and great usage. So more broadly, this level of activity reflects the continued relevance of our solution and environment, where both automation and AI are obviously, as you know, becoming increasingly central to the customer needs that we have. So lastly, the subscription-related revenue continuing to grow in desirable digits, in particular. In May, when we moved to the second solution, we saw a clear easing of the rate of decline, which is a great thing, right? With the trend improving significantly from almost an 11% decline in the last quarter, right, in Q4 2025, to roughly a 5% decline in Q1 2026. And this was primarily driven, naturally, by our main market, by an improved performance in North America. We are also seeing some very encouraging signs from a commercial standpoint, right? So in line with the recent change to the executive committee, we have founded a new chief solution officer for mail, and we are stepping up execution. We have enhanced commercial discipline that supports that progress moving forward. So we do expect, naturally and consequently, Now, if you were just on lockers, subscription-related revenue continued to grow very rapidly, driven by an increase in usage and the network expansion at the same time. And the overall performance was impacted on the other hand. The high comparison basis in the hardware sales, in particular in our international segment, and we'll go with Laurent over in more details. So overall, if I step back a little bit, these developments illustrate the continuous strengthening of our revenue profile with a further increase in our subscription-related revenue and even a much more controlled evolution of our ML solution. As a wrap-up, for the first quarter of 2026, we posted €242 million in revenue, down slightly, 1.9% on an organic basis. Just a little word on profitability, we have also made a very good start of the year, and we're tracking in line with our expectations on the front end spot. So, looking ahead for the rest of the year, we expect digital unlockers, both, to continue delivering some solid subscription-oriented revenue growth, and while the male trends are expected to continue easing in the coming quarters. On that basis, naturally, we confirm our full year 2026 guidance. So, with all that said, I will now hand it over to Laurent on front of the network.

Thank you, Geoffrey. I'll now go over the details of the Q1 revenue performance. So, let's now start with slide 7. This waterfall chart illustrates the key drivers behind the change in revenue from Q1-25 to Q1-26. Starting from 258 million revenue, we see a 1 million euro positive impact from scope effect. from the acquisition of Serendia and CDP in June and December 25 respectively. Digital contributed positively year-on-year, adding €5 million over the quarter. As for mail, we saw a €9 million decline, an improved trend compared to previous quarters. If you remember, on average in 25, mail has been declining about two times faster at €17 million a quarter. Lastly, lockers decreased by €1 million in revenue, impacted by a strong comparison base for hardware. resulting in an organic decline for Quadrant overall at 1.9% for Q1. Currency effects impacted revenue by 12 million euros this quarter. Comparison base should ease for USD 2 euro throughout Q2. The net result is a 15 million euro decrease. It's a 6% reported, bringing us to 243 million euro for Q1 26. Let's now move to slide 8. When looking at the breakdown of revenue, we see the continued shift towards subscription-related revenue cross-quadrant, moving from 70% to 77% from Q1 2022 to Q1 2026. This is the chart on the left-hand side. Despite headwinds on the subscription side for the mail business, notably in Q1 2026, the quadrant still shows a positive growth on the subscription-related revenue in Q1 2026 compared to Q1 2025 by 1.3%. On the right-hand side, digital and locker penetration within this subscription-rated revenue has surged from 29% to 43% in the same pile of time, resulting today in an almost balanced contribution between mail and gross engines. Back to you, Geoffrey, to update us on the digital business.