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good morning and thank you for standing by and welcome to Plexi third quarter fiscal 2026 revenue presentation after the presentation there will be an opportunity to ask questions by passing star and one at any time I advise you that this conference is being recorded at this time I would like to hand over the conference to pulling the whole head of Investor Relations please go ahead madam

Good morning, everyone, and thank you for joining us today for Plexi's third quarter fiscal 2022 revenue course. I hope you are having a good start to the summer season. So I'm Pauline, and I'm pleased to be here with you today to share our first nine months revenue performance. I'm pleased to be joined by Aurélien, our CEO, and Stéphane, our CFO. Before we begin, let me walk you through today's agenda, which you can see on the next slide. Aurélien will start the highlights and the key figures for the third quarter and the first nine months. of Cisco 2026, including an overview of our financial momentum, and Stéphane, which then takes you through our top-line performance in more detail. Finally, Aurélien will conclude with our output, including an update on the situation in Brazil before we open the start of Q&A. And with that, I will now hand over to Aurélien.

Thank you, Pauline, and good morning, everyone. I'm pleased to be with you today to present our performance over the first nine months of fiscal 2026. Let me start with the key takeaways. First, we continue to make progress towards our full year of business targets. This was supported by continuous momentum in new client acquisition and resilient net retention, confirming the relevance of Plexus value proposition in a more demanding environment. V V V V V V V V V V V V V V V V V V V V V reflecting, as anticipated, the initial effect of the patch reform in Brazil, as well as some headwinds from the current macro environment. Finally, we confirm our financial objectives, based on the performance delivered over the first nine months and the robustness of Plexi's fundamentals. Let me now turn to the key revenue figures of the quarter and the first nine months. In the third quarter, total revenues reached 312 million euros, down minus 3.3% organically year-on-year, and up plus 0.9% on a reported basis, supported mainly by positive currency effects. This performance was anticipated and mainly reflects the impact of the reform in Brazil on our tech operate since the beginning of Q3. Looking at the first nine months, total revenues reached €967 million, plus 2.7% of NEP, and plus 2.3% on a reported basis. Overall, the last nine months' revenue performance remained positive, keeping us on track to deliver our full year objectives. Let me now focus on our commercial performance. Over the first nine months of fiscal 2026, we continue to make progress across our key business indicators. First, new client development, which is 1.2 billion euros in annualized BDI. This puts us significantly ahead of our plan, given our full-year target of more than 1.3 billion euros. Second, net retention remained resilient at 99% in BDI. excluding the temporary delay in the ordering of the large employee benefit program in Romania. It reflects robust plan loyalty and active portfolio management, while facing breakers from end-user portfolio plans in certain markets. Third, face value growth remained a major central driver of net retention. Since fiscal 2024, increases in average fair value have generated 3.2 billion euros of cumulative additional BVI, meaning that we are already ahead of our cumulative three-year target of more than 3 billion euros. Let's now take a closer look at new client points. New client development reached 1.2 billion euros in annualized BVI over the first nine months, V V V V V V V V V V V V V V V V V Let me now turn to net retention, the second key pillar of our commercial performance. Over the first nine months, net retention stood at 99% in BVI, excluding the temporary delay in the ordering of the large, integrated program in Romania. This performance reflected first, plant priority maintained at a high level across plant sizes and geographies, confirming the strength of flexible value proposition in a more demanding environment. Again, phase value also continues to grow across all regions. Over the first nine months, increases in average phase value generated 0.8 billion euros of additional BVI, bringing the cumulative contribution in fiscal 2024 to 3.2 billion euros. This means that we are already ahead of our target. We also continue to see further upside, notably in continental Europe, where recently announced legal cap increases are taking time to fully materialize. Third, cross-selling that continue to gain traction, driven by both employee mobility and gift benefits across Europe and Latin America. the evolution of our end-user portfolio remain negative as some clients in several markets tend to freeze recruitment or reduce headcounts as a result of the current macroeconomic context. I will now hand over to Stéphane who will take you through our financial performance in more detail, starting with business volume.

Thank you, Ariane. Good morning, everyone. It's a pleasure to be with you today to present our financial performance, focusing on our top line for this Q3 2016. I will start on slide 10 with, as usual, business volume issues, or BDI, as their name, an important leading indicator of our underlying commercial momentum. The total business volume issued averaged 6.6 billion euros in Q326, reflecting a plus 9.4% organic worth. This was supported by, first, the positive momentum in employee benefits BVI, which grew organically by plus 8% to 5.2 billion euros in Q326. Employee benefits were converted for close to 80% of total business volume issued, and marked a speed improvement compared to H1 with all regions contributing to growth over the quarter. This confirms the strengthening of our underlying commercial momentum during the quarter. Second, other products and services BBI returned positive growth, delivering plus 15% organic growth in Q3-26. This improvement was primarily driven by continental Europe, as the Q3-25 comparison base in public benefits was lower. Overall, Q3 confirmed a stronger volume trajectory compared to H1. Echoing Aurélien's presentation on our key growth levels, let's now look at how the growth in employee benefits BVI was skewed at the end of Q3 on page 11. over the first nine months of fiscal 2016 employee benefits bdi grew by 6.6% organically to 15.3 billion euros this was driven by first new client acquisition which contributed approximately 1.1 billion euros of additional business volumes over the period this highlights the effectiveness of our commercial strategy and the strength of demand for our solutions across markets and client sizes. Second, a slightly negative net retention contribution of minus 0.2 billion euros as active paid value management and cross-selling did not fully offset pressure on our end-users portfolios in several markets. Third, a 0.2 billion euros contribution on positive currency and stock effects. Let's now see how total revenues swindled over the period on slide number four. Total revenues over the first nine months of fiscal 26 reached 967 million euros up plus 2.7% organically and plus 2.3% on a reported basis. This includes a plus 0.8% scope effect, partly offsetting a minus 1.2% currency impact. Focusing now on two-three, total revenues reached 312 million euros, down minus 3.3% organically. Reported revenue growth remained positive at plus 0.9%. supported by a favorable press 3.7% currency impact and a plus 0.5% stock defect. Looking at the breakdown by nature, operating revenue, which represented 89% of total revenues, reached 270 million euros in the third quarter, down minus 4.1% organically. While underlying trend remains solid, This performance mainly reflected the anticipated initial effect of the implementation of the PATH reform in Brazil on the group take-up rate, as well as the challenging macroeconomic environment in continental Europe. Over the first nine months, operating revenue continued to deliver a solid plus 2.5% organic growth, reaching 843 million euros. At the same time, gross revenue reached €42 million in Q3 26, that plus 2.8% organically and plus 7.4% on a reported basis, including a plus 4.6% currency impact. This continued growth was supported by a positive volume effect in countries where interest rates remained elevated and by higher investment yield year-on-year. Over the first nine months, float revenue generated a solid plus 4.5% organic growth, reaching 124 million euros. I will now turn to the underlying trends behind operating revenue by line of service and best serving. operating revenue reflected a differentiated trend between employee benefits and other products and services. Focusing first on Q3, employee benefits were down minus 2.6% organically, reaching €239 million as anticipated. While business volume remained well-oriented, Revenue Conversion was impacted by a CFR-50 basis point decline in the Group Technoplex. It was mainly driven by the implementation of the 3.6% regulatory cap on the merchant discount rate in Brazil. In continental Europe, performance was also affected by the indirect effect on clients of the more uncertain macroeconomic and geopolitical environment. Second, further projects and services continue to test headwinds, declining by minus 14.3% organically over the quarter to 31 million euros. This was primarily driven by the ongoing transformation initiative underway in both BGT and the U.S. as well as by the continuous effect of the anticipated scale downs of certain public benefit contracts in Europe. Looking now at the first nine months, employee benefits remain the group main growth engine, delivering a plus 5.4% organic growth, despite the implementation of the regulatory evolution in Brazil since Q3. Let's now return to the geographic mix of such operating revenue on slide 14. Operating revenue performance continued to reflect contrasted regional dynamics in shoe three all over the first nine months of fiscal year. Starting with continental Europe, operating revenue reached €368 million over nine months down minus 1.5% organically and almost stable on reported basis. In Q3, operating revenue went down minus 3.2% organically. While southern Europe as well as countries such as Belgium remained well-oriented, this was offset by persistent macroeconomic headwinds and lingering public benefit-based effects in other countries, which are both expected to continue into the fourth quarter. Moving to Latin America, operating revenue reached €336 million over nine months, paid plus 6.1% organically and plus 8.3% on a reported basis, benefiting from a positive currency impact of plus 1.5%. In Q3, operating revenue declined by minus 5.6% organically, as anticipated, mainly driven by the initial impact of the past reform in Brazil on the tetra trade. This regional trend is expected to become more pronounced in Q4 with the further rollout of the reform in Brazil. Lastly, operating revenue in the rest of the world reached 114 million euros over 9 months at plus 5% organically and minus 2.6% on a reported basis in Q3 operating revenue declined by minus 2.9% organically but increased by plus 3.4% on a reported basis supported by a favorable plus 5.6% currency impact performance was primarily driven by continued strength in foreign-paying benefits, particularly in Turkey, more than upset by transformations related in the UK and the US. From Q4, we expect the region to return to growth. Overall, the group maintained a resilient growth trajectory over the first nine months, despite the third quarter masked by XC and time-bound regional headwinds. After recollecting revenue, I will now conclude this top-line performance review on how flow revenue also contributed to growth on page 15. Flow revenue reached €124 million over the first nine months, up plus 4.5% organically, and plus 0.7% on a reported basis, including €42 million in Shusui, up just 2.8% organically, and plus 7.4% reported. This performance continued to reflect the continuous expansion of the full base in countries where interest rates remained elevated. It also benefited from a higher investment yield, up she got the safety baby from 6.2 percent of our neighbors this was driven by slightly higher interest rates year-on-year and by plexi disciplined investment approach overalls will follow you as we meant the consistent contributor to the group top-line performance over the first nine months is now complete my comment on the financial performance and I will now I'm back to moving up what you would be able to.

Thank you, Stefano. Before turning to our full year objectives, I will start with an update on Brazil and how we are navigating the ongoing market conditions. Since the revised framework was announced, we have consistently executed our action plan in Brazil. It's tangible progress across our three work streams in line with the regulatory milestones. Starting with operation readiness, our open arrangement is now in place alongside the rollout of our best-in-class offerings. This provides the operational foundation required to adapt to the new market framework and it serves our clients effectively. Going forward, we will continue to build and innovate to strengthen our leadership position in that market. In parallel, our adaptation plan is being progressively deployed across all dimensions of the business, with a clear focus on efficiency gains. This includes commercial, operational, and cost levels, which we'll continue to work on as a reform is being implemented and market conditions evolve. Then, on engagement with public authorities, discussions remain active and focused on technical implementation, feasibility, scope, and time frame. Lastly, on the legal front, we continue to pursue the appropriate legal proceedings, including our deal on the merits of the case, both in dependency and in coordination with industry association ABBT. Overall, we are executing our roadmap in line with plan. supported by fully mobilized teams every day and at group level. This supports our confidence in confirming all our financial objectives. The performance delivered over the first nine months, together with our strong execution capabilities, give us confidence in confirming our financial objectives for the year end. First, The total revenues are expected to remain stable on an organic basis. While Q3 reflected the anticipated first effect of the past reform in Brazil, our top-line performance over the first nine months remains positive, supported by solid underlying business trends. This gives us confidence as we enter Q4. Again, we continue to expect a slight organic expansion in recurring EBITDA markets. This illustrates the resilience of our business model, our disciplined cost management, and our ability to adapt our operating model in a more demanding environment. And so, we continue to target around 80% recurring cash conversion on average over fiscal 2024-2026, backed by the strengths of our self-generated profile, and this is in indignation. Before opening the floor to questions, let me briefly wrap up this presentation. Over the third quarter, pipeline evolution reflected, as anticipated, the first effects of the regulatory changes in Brazil and some macro-invents, while remaining consistent with our plan to the effector. at the same time, commercial PPI stayed well-oriented overall and business volume growth regained momentum, confirming the underlying strengths of our business and providing a solid foundation for future revenue growth. Overall, our performance over the first nine months reinforces our confidence in the resilience of Plexi's business model and in our ability to navigate a more demanding environment while delivering on our fiscal 2026 commitments. Going forward, our priorities are unchanged. Maintain robust commercial execution, manage the transition in Brazil with discipline, and leverage the group's fundamentals and execution capabilities to continue creating long-term value for all our stakeholders. Thank you for your attention. And now, with Stéphane, we will be happy to take your questions.

Thank you. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one under touch. Don't tell the phone. To remove your cell phone, the question is transcribed. I'm please press turn to please pick up to receive an asking questions in the interest of time we ask that you please limit yourself to questions to from the caller the first question is from as the line growed JP Morgan I good morning and thanks for taking my questions and other first question on Brazil and I mean I time operating organic growth was a lot better than what we were initially anticipated

and can you elaborate a bit more on this I mean is it likely largely a timing slash phasing effect and or if so should we expect Q4 to be the first quarter reflecting the full impact from the shift to open loop and actually my second question will also be on Brazil could you also explain how the shift to open loop is shaping up in Brazil at the moment more technically speaking I mean speaking are you seeing any surprise what are the biggest challenges so far and are you also working on a hybrid model whereby you can also be the acquirer in the transaction? Thank you.

Thank you, Estelle. I'm going to answer maybe your two questions in one answer, but coming back on the implementation of the past reform, as I said, it's progressing broadly in line with the timeline that we anticipated. so the first level including the MDR cap and the 15 days no transfer investment came into effect on the March 1st so at the beginning of Q3 and since then we have successfully opened our arrangement and launched what we believe is the best in class offer while as I was mentioning still focusing on the commercial executive firm you're a good friend and and and all the mitigation initiatives and so they don't let the observer and so far as a history performance has been brought in line with the with our new person and register to say that looking ahead as before we will provide us greater insight into the tangible effect of the opening of our arrangement and and what we expect either is a negative impact to intensify in people and with the further rollout of her of the report and so this is this is the what what what we should anticipate for of you pointed and again typically speaking and in the implementation of our arrangement we are we are in line with our plan we've not been facing any unexpected changes on this aspect. And we will still see some impact, of course, on H1, the first semester of our 27. The next question is from . Hi.

Thanks for taking my questions.

I also have a question on regulations. Could you please provide an update on where do we stand on framework review in France, the timing of it, and if there has been any change in text recently versus what we have seen in the past. And then related to that, any other sort of new developments in your markets, including an update on Chilean inquiry would be helpful here. And then the second question is on float revenues, which was stronger than expected in Q3. Does this drive any change to your expectations for full-year float revenues in FY26 and also next year? Thank you.

Okay. Thank you. Thank you, Palin. Good morning. So I'm going to start, and then you take the question on the float revenues. So for France so quite recently in June a member of parliament submitted a bill and the proposal the intent proposal remains probably consistent with all the previous required initiatives we still need to keep up modernizing the main benefit system and simplifying the framework so this is being more specifically proposed measures that include the food digitization of the meal vouchers the permanent extension of their use to all food products and the plan on the client discount and the facilitation of the mixture of meal vouchers to the NGO so this is the So no surprise, I mean, this is what somehow was stated by Serge Papin, the minister in charge a couple of months ago. Now, timing-wise, we expect this to be discussed by Parliament after summer, and of course it will depend on the legislative agenda. Regarding Chile, there is a case that is related to a claim filed by the Chilean Antitrust Authority before the Chilean Antitrust Court concerning the inviolability market in Chile. So the allegations relate to a historical period before 1941. of course we've been, Plexi has been fully cooperating with the authority during the investigation and we will continue to investigate constructively and transparently as for the judicial process. It's fair to say that this case remains at an early stage. Proceedings in front of this antitrust court are typically I'm going to take several minutes for final of them. But more importantly, we've been taking this matter very seriously right from the beginning. So we have engaged with all our stakeholders, starting with our clients, our partners, and all of those stakeholders to provide transparency on the situation, and to share as well our ethics, compliance, and government framework that is in place. And so far, we have a good continuation of our business in Chile.

Good morning, Kevin. getting you on your second question on football you so this is food at the foot of a new demand for the first nine months and into three again consistent and a constant contributor to to go to organic growth and when we compare to what we had in mind at the very beginning of the fiscal year this is true that there have been less interest rates cuts in compared to what we had initially planned, and it was only based on the consensus of market. And in countries like Brazil or Turkey, for example, in Turkey there were no cuts at all yet. In Brazil, the steady interest rate remained high all along the year, with a slight cut recently. And then we have been able to roll out in just enough time and I'm still in the studio 26 or DCP investment approach but it's expanding a little bit the majority of business in order to to support a strong eat and all these have been put together we have been able compared again to what we had initially in mind to deliver a strong organic rose going forward and we don't guide on a quarterly basis but what I can tell you is that what we will deliver in Q4 will be a little bit lower compared to what we deliver so far in terms of organic growth but overall this means that for the full year for the full fiscal year 26 we are now tending to a slight organic growth positive a slight positive organic growth for the new of course but this doesn't needs a leader for the overall organic rules keep in mind that close revenue represent a little bit more than 10% of over the new the big rose engines the operating over you and of course we add this additional food from on top of you but it does not change things for the overall table of the stable top line that we have for the top line as well And for fiscal year 27, this is far too early to provide you with some detail on this. As you know, the geopolitical environment has been very uncertain and very volatile in the last months. So on one side, we are still working on the management of the maturity of our investment, which we provide with some basis for fiscal year 27, but then we have to take into account when the time comes

um the the situation in by the end of next October the next question is from a Han Lightner Jefferies yes thanks for letting me on I got two questions the first one is on Brazil the regulatory headwinds you mentioned it only just started if we are now thinking about you the absolute impact and then the trajectory over the next couple of quarters you haven't let them around low double digit organic growth and now you so if you're calculating the headwind it could be between 10 and 15 or 10 and 17 million headwinds from the Brazilian regulation I think originally you talked about high single digit impact for the year so you mentioned everything going according to plan so should we then expecting Q4 quite a big an increase in these headwinds and maybe you can talk about what caused that dynamic I guess the 4C model will not be such a big clip and then maybe just a second question on the European macro situation Maybe you can talk a little bit about the moving parts. You called out also face value being a positive or starting to develop a positive tailwind. But given the macro concerns, maybe you can flesh that out a little bit. Where do you see that? Is it which country, which sector, or is it rather more competitive nature, which you obviously backfilled very well with the incremental wins in BVI? Thank you.

a I am and and and and and and and and and and and and and macroeconomic factors and specific portfolio dynamics and still some public benefits phasing effect. From a pure macro standpoint, we continue to see a prosperous environment in several markets. We've been, and this was the case previously, it remains the case, with science remaining present on a hiring and in some cases on the increase of employee benefits and what we see as well is that the end user portfolio in France remains a headwind in a number of countries. France is an example, Germany, Romania. While also recent and increases in sales value caps are taking longer than what we materialize and what we initially expected. But again, the picture remains quite different across the region. South-Saharan Europe continues to show good resilience and a solid commercial community. and while the markets are facing more importantly, you know, this challenging economic background. Again, I think this is a country that, as I mentioned, France and some countries in the Central and Eastern Europe. Regarding Brazil, Stéphane, you want to start? Good morning, Enes.

So regarding what is going to be happening and as we started to explain in the presentation, this is true that the impact of the reform is going to be higher in Q4 compared to what we have seen in Q3, but I'm not going to share with you some absolute number as you try to put them together because there is still a lot of uncertainties remaining. on this reform and the impact of this reform. Please keep in mind that this reform defines a merchant discounted tax, but then all business in Brazil, like in other countries, if we leave aside the gross revenue, remains based on two main world themes. a when you want me much and it was so on-line me some balance being who's on the year and you said these are the competition on the market and then of course we are taking all these changes with the all of the competitors you know I can only know that you game of the chairs and it's really difficult for us to assist inside the same back and what I can tell you that to pull and in Q4 the impact will be somehow in terms of organic growth twice the impact that we had in Q3 for Brazil and then in Q1 and Q2 of next year same thing we have strong impacts stronger compared to what we have experienced in Q3 but we will come back to you later when we have more clarity with all the remaining uncertainties based on what I was explaining on how the market is operating but also on what Aurélien did

the people that he got a year and legal uncertainties though I'm the decision we are dealing with the government and the and and and the legal procedures baby just to just let my team and for us and what what another way is that the fundamentals in Brazil and remain there and very soon from Apple momentum continues to be robust and supported by solid plant acquisition and a healthy retention level. So this strong strength definitely reinforced our confidence in the long term, you know, regarding the effectiveness of the Brazilian market and our ability to create value in this period.

The next question is from Andre Juillard, Deutsche Bank.

Good morning. Congratulations for these solid results. Two questions, if I may. First one about competition. Do you see any moving parts in Brazil following the new regulation, any small players being under difficulties and pushing for consolidation? second question about your balance sheet the fact that you still got a pretty solid net cash position and you have a better visibility of the idea on this use of cash between M&A potential return to shareholders or any other decision thank you

you want to start a hello good morning on a go to start with the signal returns from them away good morning away so it's a link to your question regarding your balance sheets as you will know very well on to three there is no date on the balance sheet better in the end change compared to what the community then of the trial as you are seeing these significant firepower remaining on our balance sheet I remember all of us that this is on purpose that the time of the spin-off the balance sheet of Luxee was designed with this very strong base in order to provide us with some potential in order to deliver some M&A since the spin-up, we have put it up with our capital allocation strategy, which was to, on one side, go on investing in order to feed the organic growth with some capex through many new technologies, accelerate the potential for organic growth by acquiring new technologies, you you don't get something better that he did as well and of course he's done that you too of shareholders who did that or even a shot which which we did by running out is 100 million your share buyback that we launched at the beginning of the current fiscal year and which came to an end at the beginning of May and when you you you compare all these particular protection of addition has been very well balanced since the beginning of this of this new story for Plexi with approximately 200 million euros for each of them stands since this enough if we decide the non-cash transaction that we have with Santander going forward so we remain you know V V V V V V V V V So no change to this capital allocation policy. And what was behind your question, is there anything that we should share regarding some further return to shareholders? This is a question that should be decided by support. And so far, no, there is nothing. And this is too early. We will first close this period of 26.

and then we'll see but again this is something that should be decided by the ball okay and so regarding your first question competition in Brazil and the impact on the small player it's too early to see any major impact on their activities is there been some some some discussion you know regarding any consideration move and to my knowledge and for the moment we still know none of it and there might have been some some discussion between some of them but but again um I mean it might be just just rumor um and uh and again I think that we need we need to wait a bit of time to see all the the potential impact that this path report could have on the competitive environment.

The next question is from Justine Forsyth, UPS.

Thank you very much. Good morning, Aurelien and Stéphane. Thank you for the time. So a couple of questions on my end. just wanted to ask one on Brazil here. I mean, it seems like you're flagging quite a bit of uncertainty in the legislative environment moving forward. Maybe you could just elaborate on the latest there, like exactly where you stand with the appeal process. It feels like maybe there's some feeling on your side, some aspects of the regulation could get overturned. And just further on that point, and the competition point, I mean, it seems like some of the newcomers are growing incredibly fast. Like, I think iFood was growing over 100% in their voucher business in Brazil in FY26. Maybe you could just elaborate on that. And then, Stefan, a question on FX impact. So you flagged Turkish lira, which was strongly negative, Brazilian Rai, and Mexican peso as the main drivers of FX. But if I look at other countries, the FX benefit was 6%. And that would also include a strongly negative Turkish lira. So can you just help us understand what's driving that FX positive in other countries? Thank you.

Hi, Justin. Thanks for the question. I would not comment, of course, on any of my competitors' performance. What I can tell you is that from the business volumes standpoint, we've been still delivering double-digit and already growth and so again a very very solid performance and in Brazil and and and will remain them very consistent in them in our future there and really in what you you qualify as in certainty as I said in the presentation indeed there is to summer some legal proceedings in progress and it does include our appeal on the merits of the case so there are two procedures in parallel, one run by Luxee and another one run by the industry association and what we are trying to get through those procedures is more clarity more clarity on the whether or not the implementation of the 4C should be mandatory, and should it be the end of the 3C use of the closed-loop model, and still some visibility on the interoperability. This is what we are trying to address through the proceedings. Regarding the ethics impact, Stéphane?

Good morning, Justin. On them on the ethics of situation we we have seen significant changes of our over the last months so basically if you refer back to 25 we had a significant headwind internal effects and many coming from from Brazil and Turkey and in this year months after months the situation has significantly changed with first really I'm real reinforcing against you and sensing for duty in the last q3 which which know is this really something in you if you look at the Turkish we are in our q3 for our q3 when you compare with the year before the Turkish you are against you is six percent higher compared to what it was one year ago And so last year we had overall in fiscal year 25 8% headwind in terms of reported growth because of foreign exchange exposure. Beginning of this year in the first quarter it was only minus 4. It turned close to balance in Q2. And now it's positive. And it's positive with mainly Brazil and then Turkey contributing for this positive trend in terms of foreign exchange exposure. So we'll see what's going to happen in the next month. We can't manage it, but when you look at the consensus, you know the situation is currently quite at this balance in terms of foreign exchange exposure.

As a reminder, if you wish to register for a question, please press star N1 on your telephone. The next question is from Pallan Daswani, C3.

Morning, early answer, Sam. Thanks for taking my questions. I've also got a couple. Firstly, could you talk about the next steps in Brazil since you've implemented the open loop infrastructure? So have you seen merchant acquirers connecting to this? Have you seen volumes shifting over? Or sounds like that's really going to be in Q4. and then secondly on face value increases I think you mentioned some delays in seeing the higher inflation levels come through in face value increases what's really driving that is that mainly a timing issue and you should expect that to kind of come through in the next few months okay okay so regarding the face value and again good morning so so

is that you remain and and and and and and and and and and and and and and and and and and and and is the shouldn't go to the well recently the good thing for you I've been approved but the the the speaking it more time to be be fully implemented both and then she did and in there for example he's he's he's made me there you can't believe you know in the continent that you all and I'll bedroom and it any Romania and and and and and because and at the moment left by on time asking them and given the uncertainty and then of the macroeconomic environment and in Latin America and rest of the world situation is different because as you pay from the dynamic is and it is quite supportive it was quite supportive there and it would continue and and contribute to the and now, regarding Brazil and the implementation of the Open Arrangement, as I said, it's quite early. Our Arrangement was open mid of May, so it's early stage. We are currently discussing with a choir that would like to join our team and it would be extended over time. But it's quite encouraging, isn't it?

The next question is from Joanna Jordan, Adobe HF.

Yes, good morning. Two on my side, please. On the PATH reform in Brazil, can you please clarify the expected impact on the revenue and cash flow, or at least give us a direction? coming from the next regulatory milestone, so in particular the interoperability in November 26 and also the transition to a prepaid model for public sector clients. And second, on other products and services, the revenue remains under pressure in Q3. When do you expect this business to stabilize, particularly after the U.K. and U.S. transformation initiatives? Thank you.

And we want to start with a question from Joanna.

Good morning, Joanna. Your question was about the impact on two main indicators, revenue and cash flow, of the tax reform happening in Brazil. And I'm not sure exactly what the question is, but I'm going to provide you with some further information. In terms of revenue, we clearly indicated that, as Oregon insisted, that there is no impact on the business volume, and we are still seeing a strong momentum in this country. This business is very active, but we have, and this is what is happening on revenue, an impact on the merchant discount sector, which has an impact on the take-up rate, with some, again, balance in between the client revenue work team and the merchant revenue work team. So there will be an impact with lower revenue, of course. This is what we are seeing and this is what is going to happen. With some uncertainties regarding the balance of operating and closed revenue, as we will need to see the behaviors of merchants, many merchants in Brazil have been activating over the last year, this express reimbursement option that we offer to them. And we will see with the shortening of the repayment terms if this has some impact on their behavior going forward. And so I'm seeing here that we don't see if the impact will only be on operating revenue with much lower express reimbursement option. that and then the photo the movie meaning and change of if so much and we will we will decide to keep the express reimbursement with in this case for us is the same level of operating revenue in this in this aspect and our local so this is just to share with you some color that there is a lot of uncertainties regarding what will be the final impact of these 3.6% cap on merchant discount rate and the impact of what is behind this reduction in payment terms down to 15 days in terms of merchant behaviors. In terms of free cash flow, it's a little bit the same thing, but we have some positive tell me also, uh, in progress, um, and that's the belief of this fellow 27. Um, I was explaining that we have this express reimbursement option that is open for merchant and depending on, on, on what they decide to do, uh, there might be a higher or lower impact. If I say it again, uh, if the merchant don't change, uh, their, um, their, uh, in the ocean to activate this express reimbursement, there will be more significant impact on the free cash flow for us, because this means that we will have the amount on our balance sheet of being reduced by all in all to merchants. But in case they decide to stop activating this option, that should be limited impact on the in the balance sheet, and in this case, limited impact on the . Again, we'll see. This is too early to say what will happen. And going forward, in fiscal year 27, we also have as part of the decree the current request, requirement, that public clients should move to prepaid scheme. which is not the case right now, which might have some positive impact on the PICATO. Again, a lot of uncertainties. I just can't share some colors of the potential upside or downside, and we will have more clarity, hopefully, by the end of this period of 26 or beginning of this period of 27.

and and and and and and and and and and So this is and on one hand, and on the other hand, the performance of UK and U.S. And which is the, which will still remain, I mean, still remain on the , maybe a few words on the U.K. and U.S. The reconditioning that we started is progressing totally in line with our plan. the the the the the the the the the the the the the We are focused on how to build long-term value creation model there. And to build the fast-growing, scalable, and profitable . Having said this, we continue to expect UK and US. to progressively improve and become more supportive to our growth, but from fiscal 2027, as our new model stands up there.

Gentlemen, no more questions. I turn the conference back to you for any closing remarks.

thank you very much so thanks to everyone for joining us today and for all your questions and as a team we remain fully focused on executing our strategy with discipline achieving our financial objectives and continuing to deliver sustainable profitable growth we appreciate your continue the interest in Plexi and look forward to speaking with you again soon. Have a good day all. Goodbye.