Prosus Nv Sp/Adr

Hello, partners. How are you? Welcome to our results call. I hope you received and you enjoyed our results today. I'm quite excited to what we shared today. At the same time, we could share a little more about our growth. Not only that we are growing 20%, but even more important that our ecosystem thesis is working. So I enjoyed very much to share the numbers of Despegar. It's not only 5% of Desperate AI revenue coming from the iFood ecosystem, but we share the data week by week. You can see a very strong growth. I'm quite confident we'll get to 10%, 15% in the short term. So this is the base of our thesis, our ecosystem thesis. We are growing very fast in iFood, but we're pushing Desperate AI to grow together. At the same time, we could share a little of our numbers in terms of results. You saw we grew 70% to $530 million. I think it's great to share this number with you. One year ago, I told you I expect us to have more profit than a decent difference, and I expect us to get to multiple billion dollars of profit. And many people said, I can't see process doing that. So hope you can see process doing that today. We are going to get between $1.1 to $1.2 billion in profit this year, excluding jet and la central so we can expect a little bit two three four billion dollars of uh initiative this year and fourth floor couple billion dollars of profit in the next few years so i'm quite excited about our numbers in terms of results we keep the discipline we sold 1.2 billion but we are on track to sell at least 2 billion dollars these years of our assets we keep our buyback now so we bought back more than 40 billion dollars generate more than 60 60 billion dollars results uh so i think we keep the discipline we keep the growth but i want to reinforce all of that is the foundation to how we are going to build a much bigger company so innovation is growing amazingly well at uh bros i i wanted to do a bigger session innovation now but because of the timing decided to focus on numbers today but In a few weeks, by December 15, maybe January 15, we are going to make a much longer presentation on how AI is changing our lives in terms of life commerce models, in terms of assistance. You saw we had 20,000 assisted already. So I could talk a lot about innovation. Hope you make questions about that. It's quite exciting. So our moment now is execution, execution, execution. We have some discipline also in M&As. A few M&As are focusing growth. For example, the Indian ones, Ixibo and Hapdo, they are growing. Hapdo is growing more than 120% year over year. We are very excited about that. A few M&As are increasing our profitability, like La Central, Jet, and Despergar. So I think the company is doing good. I'm excited about the results. Hope you have many exciting questions for us today. And my priority now, execute both of those few billion dollars in results. We are just getting started. We really want to build at least $100 billion outside of Tencent and one of the best tech companies in the world. Let's talk more about that today. So let's go for our questions.

Mr. Owen, guide us. Speaking of just getting started, let's get started on the Q&A, shall we? Catherine, why don't you, if you could, remind the audience how to ask questions, please. And then I'll start off with a quick question. So please, Catherine.

Ladies and gentlemen, we will now begin our Q&A session. If you have a question, we ask that you please use the raise hand function at the bottom of your Zoom screen. Once called upon, please unmute your audio to ask your question. If you have joined via a phone line, please press star nine to enter the queue and star six to unmute once called upon.

for those of you watching on the webcast if you would like to submit a written question please type it in the ask a question tab to the right hand side of the player i will now hand back to your host owen ryan to take your questions that's great captain thanks very much it's great to be here today um it's it's good to hear from you guys um as you said for bco i think we're following through on our commitments one such commitment was uh investment in our ecosystems the biggest investment today has been jet and i think It's on the minds of most of investors. So can you give us a little update? We're a few days in since the delisting of JET. What's the future look like?

Let's talk about the JET, Alio. First, we closed the JET transaction completely a few weeks ago, but just last Monday or Tuesday, we changed the management, the supervisory board. So now I and a few other people from Prozos are part of the supervisory board of JET for the last six days. So what I can tell you, we are very, very confident. As you saw, we shared lots of data on DeskPagar, how it's growing, how we are working on the ecosystem. On Jet, we have just six days, so it would not be appropriate to share today. What I can tell you, first, we are, this week, working a lot with Jet on our key set of culture to enable the company to think big, move faster, and grow a lot. Jet is not growing over the last few years, as you know. Obviously, we know that, too. I'm very, very confident that together we deliver a hope that grow faster is much better. The first big thing is on culture. It's happening right now, the re-planning of jets. That's why I couldn't add the numbers because we need a few more weeks to have projects for jets. At the same time, our focus besides culture, and again, you saw me here last week on PROS, the results we have today is because of the change of culture one year ago. Besides of culture, technology and product are the three big areas of energy of our reforms on technology we need again to move faster and to make sure jet becomes a more a tech-first company with first-class technology in the world using ai to take all its decisions on products we have to make sure that a few areas jet is a little say behind we get we move faster for example loyalty program that is for in latin america but it's not ready here in europe So we are going to push those three things. We expect to push it in November and December. Hopefully, in January, we have a few results to share. Today is still too soon. But I can tell you that I am yet is not performing well. We all know that. But the level of confidence I have that you have a company growing again and competing very well is very, very high. And probably, you know, I like some letters from the CEO. Maybe we should

share a letter from the ceo whether you can share more informed jets but you have more specific questions i can answer today is the holiday season for letter writing so maybe you can write one to investors there okay okay well thanks for that i'm sure there'll be some follow-up questions on that throughout the call but let's open it up to uh the audience and i think the first question is coming from uh will packer at bmp will your lines open make sure you're on mute

Hi there, many thanks for taking my questions. Two from me, please. Firstly, Fabrizio, you talked to optimizing the buyback in your prepared remarks video. Could you help us think through the implications of that optimizing? Is it the current buyback run rate of $6 to $7 billion as the new normal for FY26, 27 and beyond? Or should we think of you cutting the buyback? And then it sounds like it's fair to assume that there's going to be some flexibility of funding, perhaps away from Tencent towards Meituan and free cash flow. In terms of my second question, the global... Online classified share prices have sold off sharply in recent weeks, following the OpenAI Developer Day and Rightmoves AI profit warning. For Fabrizio specifically, GenAI is central to your vision for the group. How are you thinking about the risk and opportunity for classifieds in terms of GenAI? Does this recent sell-off make the sector an increasingly attractive potential use of your M&A firepower, or would you rather see the dust settle first? Thank you.

Thank you, Will. Thank you for the questions. First, you asked about optimizing the buyback. You have lots of good numbers there. I don't want to repeat all of them. But in general, as you said, the buyback is more or less $6 to $7 billion this year. We have an open buyback. We are going to keep an open buyback the way it is. I like buybacks because I think we are, if our company is cheap, we should be investing in our own company and increasing the value of the shareholders that want to stay. So we are going to keep doing that. On the other side, I think the company we have today is a very different process than it was two, three years ago. Remember, again, one year ago, I said we are going to get to multiple billion dollars of profits. Many shareholders didn't see it coming. It is coming. Hopefully, you can see that in the numbers that we are sharing today. So, process is on a different moment. The discount is on a different moment. Tencent is on a different moment. I'm a big fan of Tencent. I think Tencent is going to be a big winner in the AI race. Tencent is positioned for that in China. And if you compare the multiples of Tencent versus everything else in the US, there is a lot of space for Tencent to keep growing. So it's exactly what I said, it's optimizing the buyback. We are going to keep the open buyback as we have, but I'm not going to say the names of other companies. People ask me not to name other companies. I can tell you that there is other companies in our portfolio that we believe has smaller growth potential than Tencent. growth and strategic potential in Tencent. And yes, we are going to sell these companies and use this money also to keep a buyback. So what you are going to see is optimized exactly that. Eventually the buyback is, I don't know, one billion maybe, half a billion is for Tencent, half a billion is for other companies that we can sell and use the cash to, I think the right word is the one that's used, to make a better capital allocation. With the number one company in China growing fast, well positioned to win in the AI race, it's not the best decision to me to sell Tencent, even if we increase the value per share. So if I can optimize it, selling other things and increasing our participation, that's what we intend to do. We expect it to sell at least $2 billion this year. And how can I say... You can expect that we are going to do buybacks using other sources than Denset.

Just to remind you, although we are selling Denset on a per share basis, we've actually increased our exposure to Denset and by minting the share buyback with the other proceeds from other divestments. And I will further enhance on a per share basis the exposure of the Denset compared to continuing on the current path. So I think that is a critical way of how we can further enhance the LCI market.

For example, there's other companies that we believe have less focus today than they should. We could sell companies that we believe have less focus and invest more or sell less of companies that we believe are performing well, have less focus, and we believe are going to win the Chinese market. So that's what I mean by optimising.

Those companies are the companies you're talking about as the additional $2 billion, right? Just to be clear. At least $2 billion.

And we already sold $1.2 billion, so at least $400 million. And can we use this money to offset, let's say, $1 billion for other companies or two? Yes.

seen from the group in many years, the more active portfolio management.

Yeah, the buyback was 100% automatic. That's what I don't like. You should sell more or less depending on what's happening, and you should select better what to sell. Right. And to the second question. Yes, the second question was on the AI and classified, as you said. Many people sometimes ask me if I think... I'm not the first one this week. If I think... AI could have impact on classifieds? My answer is, it's much bigger than that. I think AI is going to have impact in classifieds, on e-commerce, on food delivery, in investing, in analysts' reports from banks. AI is going to have impact everywhere. Obviously, as you know, the market today is a little too heavy, so everyone looks like an AI leader. But there will be AI winners that will create trillions of dollars of value. Not only trillions of dollars of cost, but trillions of dollars of value. And it is going to happen. How I see that on classifieds. The point here is not if AI is going to hit your industry or not. Because if you think AI is not going to hit your industry, you are wrong. It will hit our industry. The point is how we play our game on that industry. And I think what we are doing here in Brussels is very, very good. We are not like... You said some other company, or you said some classifieds went down. Other classifieds, they have been much more conservative in technology, and they invested much less to be classified because many people were, how can I say, surfing the high profitability without investing enough in technology. That's not our approach. Brazos as a group is investing in large commerce, but it should understand the customers better than itself, and use data to of our companies. We're investing a lot on agents. We have more than 20,000 agents doing everything, including many things on classifieds. We're investing a lot in ventures, and the only focus of ventures from Prozos now is not to be a venture capital that invests in everything. It's to invest in companies that can make our ecosystem run better, or that can run better because our ecosystem. So these three areas has profound impact in our classified business. We are using the large commerce model to run better classified business and ads. On agents, we are running lots of our services to agents. For example, taking care of customers, taking care of retailers. Remember, our classified is less horizontal, more focused in real estate and jobs. Autos, thank you. So we are taking care of the autos, retailers, and our partners. And third, we are investing in early-stage AI companies that are better in growing in classifieds. So we can make these companies grow faster, and we can also make our classifieds not only keep growing, but disrupt other classifieds companies. So yes, AI will have impact. I think Process is very well-positioned about that. because everything we are doing, we could talk about that for one hour, but part of our positive results, not because we are lucky or because our market just grows, because we are selling better, we are reducing the cost of ads, we are increasing the efficiency of the company, we are reducing the requirements for hiring people because our agents expands our working capacity so we are doing a lot of classifiers for example let's remember one thing we just invested one company that are automating through agents the relationship between real estate and their in their customers we are doing that by ourselves and we invest in a company that is doing like 300 percent doing the same thing our classifier is very well positioned to use ai as a competitive advantage so that's how i see ai in drugs So the next question is going to come from .

Thank you very much, Will.

Hi, guys. Can you hear me okay? Yep. Perfect. Good afternoon. I've got two, please. The first one is to follow up on Will's question on optimization of the buyback and to understand how it relates to where the discount is at a given period of time. It's been observable that the cadence of buybacks has slowed down in the last few months as the discount has stayed in my kind of high 20s to 30-ish percent zone, depending on the definition of the NAV. So should we kind of see that as a signal that the company feels there's less attractive opportunities in buying its own shares relative to the rest of the NAV at these levels? And should we expect the buyback to move up or down depending on where the discount is? That's the first question. The second one is to follow up on the opening remarks on JET. I appreciate it's going to be hard to give guidance today, but if you could give us a flavour of the level of investment that you'd like to put into JET, that would be very helpful. Thank you.

Thank you, Andrew. On the buyback, I was concentrating on the JET. You want more information on whether it's a function of the discount coming down, the buyback coming down? What I don't like is to have a completely automatic thing. It's a function of many things, how well we are doing, how fast we are growing, how profitable we are, how our discount is. You said the discount was around 26, 27 of the last few, one month, two months. I am an optimistic founder. You can discount my optimistic opinion, but I will also, one year and a half later, remind you that we are delivering everything that we promised one year ago. We are delivering the growth, the profitability, the discipline, the completely reset on culture, and the innovation. So my optimistic vision is it's going to go down more because if the density is very valuable and we have one, two, three, four billion dollars in profits in our core that is playing well, innovating, et cetera, I will call you later to ask, so why is the reason to have this level of discount at $26 or $7 or $8? So considering all of that, the buyback is going to be more aggressive or less aggressive. My point on optimization now specifically is if we can keep buying back, but not only from Tencent, but from Tencent and other assets that we are selling, this is much better for us all. So that's what we are trying to implement now. Another question? Yeah, it was on the level of investment for JET. Yes, the level of investment for JET. It's not the problem, to be honest, Andrew. Not the problem today. So how I see that? First, would I invest more in JET? Yes. My problem today is not to invest more in JET. We became operators of the company six days ago. Today we are having the full week of meeting to plan the next three or four months. The government doesn't even have a plan for the next three or four months because their budget stops in December. We are doing today, tomorrow, tomorrow the planning for the next three or four months. So we had this discussion last week. Should we be doing like in one day a proposal? The answer is no. You have our guidance results yet. We will give more information on the guidance we've shared as soon as we have it. But I want to reinforce, first, the problem is not the level of investment to me. The problem is the efficiency. Two things. First, JET is under-delivering in what they promised. Their current guidance, what they are delivering is less than their current guidance. But second, the efficiency of the investment in JET has to improve before any other movement. So I'm not going to increase investment directly in JET if I don't think we are making the I could put $100 million in JET. It's not very well invested. It's not worthwhile. So right now, we are trying to rebalance return on investments and help technology improve return on investments. That's why the guidance for the next two, three, four months, they are not very valuable because if we think we can improve it a lot in 45 days, I have to run it first and see the results. then do a new guidance. So that's why we need 45 days to have a better view on JET numbers. But I just want to reinforce, and Nico wants to complement, but to reinforce our level of confidence that we can run JET better in terms of growth and profitability is very, very high. And we will share many things more about that when we share more data on JET.

And I'm reminded just to comment on Fabricio's saying that JET did not perform well. It was a listed company until last week. Last time it came to the market, you would have seen that order growth was negative 7.7%. Company guided at that stage given their own internal metrics in Euro terms, reported in Euros, and EBITDA of about 360 million Euros for the calendar year FY20. five which is to say between five now um what i i can't say to you that some of those things have continued in during q3 where we've seen further reduction in some of the autograph and that will cause and have an impact in terms of their original guidance but our expectations will not measure against that is that they will materially miss the 360 million anyway

my confidence on JET growing faster and improving results is very high. But since we have six days, you need to update the numbers on JET in the next call.

I think the important thing to point out here is that the acquisition was not made on the results of this year. The acquisition was made on the expectations for turnover multi-years, which is what you're talking about as planning has just begun on that. Yeah, so...

As I said, on these six days, we think the numbers are bad because of this reduction of 6%. I believe that in 45 days, we have a strong reset in culture and moving faster in tech. We have good news to share, but we can't do that today because it's too early.

Thank you, Andrew. And the next question we'll take from Cesar at Banco America.

Hi, thanks. Hi, everyone. Thanks for the presentation and the opportunity to ask questions. I just want to focus on M&A. So I have a couple of questions on it. The first one, do I understand correctly that the available firepower for M&A is still around $8 billion? That's the first one. The second one, should we expect you to pose a little bit M&A as you focus on the integrating all these assets and focusing on the ecosystems? Or should we expect any large transactions in the next couple of months? And then the third one, it seems to me that you've been talking a lot more about India recently. Should we understand that this is back as a focus area for you? So I felt you talked a little bit more about it than at the Capital Markets Day, for example.

Let me take the first one. So Cesar, thank you for the question. At the end of September, from a total group perspective, we had $20 billion of cash on the balance sheet, about $18 billion of that related to our central corporate cost, corporate cash position. And subsequent to September, we have settled, of course, a jet acquisition as well as last September. So that was about $7 billion that were spent on that. So on a performer basis, that leaves us with about $11 billion dollars of cash at the center. Obviously, we need some liquidity buffer against that. What is available for M&A is, I would say, at least eight and more from a peer partnership perspective.

That said, our priority is not to spend $8 billion or more or nine on bigger positions right now. Big priority by far. I think I want to highlight one thing. First of all, the financial execution has been very, very good. We talk more about it on those meetings, but WellEx is doing very good, very profitable, growing well. So we have good expectations with La Central synergies. And second, again, when we announced that they just did acquisition, many people said, ah, but it's expensive. I really don't believe it. I think we are being pay four to five in something that should value $15 billion. That's what we had to build. So my biggest priority by far is how to make sure JET comes back, gets back growing with the best technology and products in the world and really win in Europe. That's our biggest priority by now. So as a curiosity, I read in the newspapers other two or three rumors. Processes intend to expand $5 to $10 billion on those things. I can tell you that we read on the newspapers these rumors. We are quite much focusing on delivering right now. And again, I think now I have some reputation inside Prozos. We delivered the numbers we promised. And also, I always talk about transparency. We will use transparency on JET just after a few more weeks or months of work. So it's like you said in your opening remarks, it's focused on execution, execution.

that Cesar had was on India and whether it's a bigger focus right now.

Yeah, we talked a lot about the last few days. I met Prime Minister Modi a few days ago, so it was all in the news that we were talking about India. It was really great, to be honest. I'm always complaining Europe has to move faster and talk about creating big tech companies and meeting Prime Minister Modi was how we move faster. He asked me, let's do more. So it was a very inspiring conversation. I think what we've done in India is very good. We are the biggest FDI, international investor in India. Many of our companies have more value to unlock, so we promised you a few IPOs in the last 12 months. Most of them happened. We still have expectation that there will be another very big IPO, and it's going to be big and good, of amazing companies, so our returns on investment in India are quite positive. We invested in the last one month, I think. Two companies that are growing very fast, Hapu is growing 120%. It's the number one company in mobility in JCPOA. It's growing very fast. I don't know where we are now, maybe 70%, something around that. And they are very good online travel agents and travel and mobility too. So I think we are keeping the consistency in the areas we want to invest. We are keeping the idea of the consistent synergies. And I expect a lot more good news from India. Not only like spending a lot of money, but... We put that in the presentations. For years, including you, our analysts complained that PayU has to perform better. PayU is profitable. Finally, after many years, the profitability of PayU is growing quarter by quarter, by 12, month by month, even better. PayU is helping other companies to grow faster, and the other companies are helping PayU to grow faster. So how do we get closer to our ecosystem? We've created other positive impacts. We're excited that we are going to build many billions of dollars in value in

I think it's clear you can see the operational improvement in the owned and operated AU, but you're also seeing that increasing connectedness of all of the individual pieces within the ecosystem working together a little bit more.

Yes. So you see, this time we shared lots of data in Latin America. Probably you saw that Shark revived for the node and the loyalty in the center, and many businesses around benefit from these customers. We even share some data. We are doing the same thing in India. The results are good. We are going to share more data with that in the next few months. So we don't expect to spend $80 billion in India right now, but to keep having good results in terms of ecosystem building

And with PayU now profitable, we could say that all of our main businesses are indeed profitable, which is something we've never been able to say. And if you think about millions to a billion and then to multiple billions, that's certainly a necessary thing. What did you just say? All of the businesses are profitable. All of the businesses are profitable. You heard it here. Broken news. So, yeah, we are in the middle here. All right, Cesar, thanks very much for the questions. And we'll move to Michael from Asia.

Hello, Michael. Hi, can you hear me clearly? Yes. Perfect. Well, first of all, thank you. Thank you for letting us ask the questions and for the presentation. So the first one is actually in iFood. So with Kita and Didi now ramping up their presence in the Brazilian food delivery market, what are your thoughts and what have you seen since October? And then how do you think this is going to impact iFood's growth trajectory over the next year to two years? And then maybe just touching on India. So you mentioned that there's a lot more collaboration between yourselves and the different companies that you have minority stakes in. How do you think about monetizing that going forward? Is that largely given from yourselves or are they providing data back at higher rates?

Do you understand the end of the question? By yourself, what? It's a connection between the companies in India and particularly the minority trust companies and whether there's how we facilitate data sharing to improve the outbreak. Very good.

So first on iFood, I think many of you were in Brazil and have visited Brazil one or two months ago. The people that were there, they could see iFood is more than one business that is doing the same thing for the last five, seven years. The reason iFood is growing so fast, we just got through, including all the business, 160 million orders. Just to remind you, last time we met, we celebrated 100 million orders, now we're celebrating 160 million orders. It's because it's a company innovating and rethinking how we offer business and offering the best technology for our customers. So obviously we have competition now, more competition, that is GT, And Kieta, made one, is also entering, because you just entered. Those two companies enter in a few cities, I think two or three. They are spending a lot of money per order. They have discounts of 20%, 50%, 60%, sometimes 70% in an order. So my advice to you, just check later how much they are paying to be there competing. And look, if you give a free meal to someone, people will eat for free. It will happen. But is it sustainable to have the best service, best offer over time? And remember, this isn't the core, that is the food delivery. iFood today have, besides the core, a big loyalty program that gives free delivery, plus discounts on Despergar, plus discounts on, I think, a thousand other companies. We have FinTech, We have dining, we have POS machines in the restaurants where we take transactions. We have kiosks where we put orders in the restaurants. We have a credit card called meal voucher credit card with 1 million people buying food with a credit card, paying through iFood. We have the business of ads that is doing super well. We bought one company, I was hoping to invest in CRM bonus, great company in terms of loyalty. We have the classified, the integration with Despegar is a big success. So everything that buys in iFood, they get three points to use on Despegar. We have a company for entertainment at Insimpla. We have the, we are launching now, just now, we launched one series today, this week, iFood plus Uber. So Uber has tens of millions of customers that are not iFood customers, and iFood has tens of millions of customers that are not Uber customers. I guarantee you that we are going to see a lot of cross-sell in the two best companies in the region. So some companies are investing a lot to have the offer that we had six years ago. And we welcome competition. This makes everyone run faster. But it's much more than, let's make an Excel of a business and cash call this business. It is, can we be the best, creating new business, innovating, moving faster? I put this doing that. So if you study around the see many business. Interesting thing for you because I know you like the numbers and more than my things on innovation. Fintech. We spent two, three years saying Fintech is the future for iPhones. Fintech numbers are growing very fast and profitability in Fintech is growing very fast. So our profitability keeps growing because a few business we were invested one, two years ago. I'll tell you two. Fintech, groceries, and selling through WhatsApp called Anotaí. We were losing money the last two, three years, now we are making money. So my point to you is, iFood is a good business, and there will be competition, and let's fight for offering the best service for our customers. And I want to remind you, we are very focused in iFood. There, some of our competitors are distracted all around the world. Even in their home markets, there is a lot of, how can I say, pressure to compete against other players. So we are confident, but you compete,

And Michael, you also asked in terms of, given the competitive environment, how do we see the impacts of that might be? And look, in terms of the high growth rates that iFood is going, we're very confident that for the second half of this year, we will continue to sort of stay at those levels. And we also reiterated our confidence in the overall guidance. iFood is it. is also investing buying a new product also against some of the competitors. But we've built a lot of that into our existing processes, and we are sort of re-evaluating various other projects and elements to utilize and free up funding so that we can actually fight against the competitors without changing the sort of trajectory that iFood's on for this financial year.

I think another important point though is the concept of competition for iFood is certainly not new. Over the years where they've actually had the most competition are the periods where we've seen the most growth. One of the things that Diego often says is when you focus on price, it's the race to the bottom, but you build a real moat through product. What you've just described there is an ecosystem that is iFood with an ecosystem that is LATAM. And I think you've highlighted, I think there's tremendous hidden value in that pago business that we should and will do more to bring to you guys in the future. Now, how about we touch on the India ecosystem? And the question there was, How you can really build the LCM and the connectivity between those businesses without connecting data. And you asked about minority companies. Yes, exactly.

Look, my mind doesn't work like that. I remember the last results call, someone made this same question. If you are a minority, then you can't cooperate between the companies. I disagree. I absolutely disagree. I think we can cooperate with minority companies. We do it. We don't do it because I call there and say, I'm your boss, do you know what I'm saying? We do it because we call a company and say, that's how we run fine-tuning our AI models. That's how we run customer support using AI. That's our KPIs on optimizing our partner's relationship with agents. When we show off that to a good company, the company say, I want it. I'm going to get this data. I want to run my company just like that. With other companies, I'll tell you another story. We show off that to Mishu. Mishu liked it. But Mishu showed how they are doing. I think it was multi-language customer support. And we said, oh my God, this is very good. We want to use it also. We want to learn more from that. So the point is not being majority or minority. And if you need to be majority to do something good, it's because there's something wrong. Or you are not selling well, or the guy there is not the right guy. We can work with the minorities because we're saying, this company can grow faster. These are the data and the technology that gets there. And we are cooperating well on that. One example, PayU is giving credit and working with customer profiles, with users, hoping that we are minority investors. But the companies are growing faster because of PayU. That's why we are here.

And the other thing to take into account is the LLM, so the LCCM that we're testing now at TAM and we're getting some of the results already in the deck.

That's something that we can also bring to bear in the other ecosystems. So today we have an event with 80 people from all around the world being trained. We launched Amsterdam AI House two weeks ago, where we have now a center of learning and knowledge of AI that everyone is traveling there to participate in the events. We are running today an event with 80 people inside browsers on fine-tuning large language models to optimize e-commerce transactions. So everything that we did in Latin America is now, like really today, going to India and Europe. So we don't need to give authority to do that. And we are quite confident we have a lot of growth. A curiosity, I intended to use a lot of the time of the meeting today morning to talk only about tech and innovation, but it was too much information. So we said, let's focus on numbers today. We will get back soon, as soon as Owen wants. If he wants to do it, he's fine to talk to me, because I want to do it in two weeks. But we are going to share why we are more posted than ever, and we are one of the best players in AI in commerce in the world, and so we'll talk more about that soon.

You brought up the AI hub, so we'll get to your questions again, but I think this is an important thing to pause on, because this is something that is kind of inherent in the new culture. It's not something you would expect.

uh one two years ago can you talk a little bit about the ai ai has why why you've opened it what you're hoping to achieve um because it certainly is um certainly different i want to make amsterdam the center of ai in europe so it has a lot of knowledge but not the vibrant community if you go to silicon valley every day you go there there is hackathons so we create a big space in amsterdam where every day we have a hackathon a meeting a course And it's open for two weeks. We are having every day a big event with hundreds of people, and we are helping the ecosystem, and we are helping ourselves too, but we are contributing to make Netherlands a center in Europe AI. We also hosted last week, the AI House official opening was last week. Two weeks ago, we hosted the Luminate, an event in Europe talking about putting regulators and founders together to reinforce that. And Mario Draghi was one of the speakers there, and Mr. President Barroso. We are talking about Europe needs to move faster. Europe needs to play to win. There are many things in the Europe regulation, including the AI Act. Congratulations, Europe, because we did a big change this week. Including the GCCOM that we think should be taking more risk to create leaders. So the process is taking a much more aggressive or preeminent position to say, let's lead in terms of technology and regulator to create a big European tech leader. And we are very confident on our actions. I would tell you more every time.

That's great. Please don't kill my email now. We'd love to have some of our investors now at the AIS so we can match up certain events with your travel bikes. Please reach out to IR. So let's move on. Thank you, Michael. We'll move on to Luke at Morgan Stanley. Hi, Luke.

Yeah, hi, good afternoon, everyone. I just wondered if I could pick up on this thread of more competition in food delivery. So you signaled more investment in JET. Obviously, we heard from Delivery Hero and Talabat also pointed to more investment, Dash as well, being a big theme over the last month. But if we just map that through then, for iFood, how can we see that progressing into FY27? Is that kind of the trajectory that you see there? And just particularly in the context that you may need to, do you feel like there needs to be more investment into dark stores or more 1P logistics? I'd just be interested to hear your thoughts there. And then just finally, I appreciate you might not be able to say anything, but the Delivery Hero situation, obviously you've got till mid-August to sell down to single digits. Is there anything that you can comment on in regards to that? Thank you.

Okay, so on competition on Talabah, we have no access to different view on Talabah. iFood made a projection for the year that included competitive investors. We are going to deliver on our projection and our growth and everything else. So we are doing quite good. I can't talk today on the numbers for the next year. But as I told you, many of the businesses that we started one year or two years ago, or three years or four years ago, they are becoming mature now. So iFood is more than the food delivery. One example is the iFood Pago. You remember me about this. Remember that Mercado Livre has half of its profit from Mercado Pago. iFoodPapo is an important part of iFood already. It's growing. So I don't have any numbers today to share on the next year. I can tell you that what's better for this year, we are delivering. We are happy with that. And we have to do the next year in one or two months. On DeliverHero, I'm sorry, I don't have any updates on that. We have an agreement. The agreement is for 12 months. We are going to deliver in the agreement that we made. Sometimes I talk to the press that I believe that this agreement is not the best thing for Europe. Europe would be better as a continent if we have global tax changes. That said, we have an agreement. We are going to do the agreement according to the terms of the agreement, nothing to share. However, we are selling assets of companies that has lower... We are selling assets of companies. When I say we are going to sell 2 billion this year, it doesn't include the delivery year. So maybe we're going to sell more than 2 billion. Maybe we're going to sell next year. We just don't have any updates on that.

Let me just add to that. A lot of the investments that we're making in iFood that drives our business forward, regardless of the competition, are exactly in the same areas that we now need to do even better because of the competition. For instance, optimizing the delivery aspects of the business, you know, cheaper food elements. loyalty program and all of those things we have been doing we're just accelerating and improving even more in those spaces and now we have the ai elements that we can add to enhance that efficient and to complement that nico's points on some of the things that we did on iphone over the last five years that are quite big you can replicate that in jet starting this week because only now we are the

in the management of JET. So there is lots of upsides inside the ecosystem. That's what I'm selling for one year to you. I think Google and Microsoft and Meta and Tencent are winning, not only because they have one key product, but because they have a scale inside an ecosystem that enable cross-sell AI technology. We have that, and we will have benefits on that on JET and on iFood.

I think one of the things that iFood has done a fantastic job of in the past is areas that required investments to scale. then don't need all of that investment going forward. You take some of that from area A and deploy it into area B. So it's not incremental investment always in the asset. One of the questions that we get underneath this perhaps is, well, what does this mean for kind of your future year guidance? And what, you know, is this a kind of retrenchment or a return to kind of an investment cycle? But I think you were very clear at the beginning of the call that you expect to go from the one point something billion today, one, two, even three, you said, to more than that. And that includes investments in the other parts of the business and food.

So I guess here the credibility is to think that first time we talk about 2 billion, everyone said, oh my God, I don't see how they can do it. We will get to 2 billion. And so we are confident we are going to keep increasing our margins.

I think they probably said the same thing on 160 orders at iFood. So thanks very much for that, Luke. And we will go to Robert at Caliber. Hello, Robert.

Good afternoon. Thank you. Thank you very much. First question on the impact of agentic consumer applications on marketplaces. If you look at these agentic applications, people are using it for more and more tasks. In the case of browsers, I think you saw the first impact at Stack Overflow, where people found coding suggestions of agentic applications better than browsing on the forum. But increasingly, it could be the case that purchasing decisions could also move towards these consumer agentic applications like ZCBT. So I'm wondering, how do you plan to integrate your marketplaces inside of these applications? And as user behavior shifts towards consumer agentic applications, could some marketplaces like Classified lose distribution leverage and the data advantage? So how will you address this to stay ahead? Maybe second question on the IRRs. I think in the past you targeted the 20% IRR target with a higher hurdle for startups and lower for high-quality, more mature businesses. If I look at, for example, La Centrale, which you're buying for around 1 billion euros, clearly a high-quality business. It's growing at a kegger of 13% EBDA, and you expect that market growth to continue. So I think it's challenging maybe to get the 20% IRR, So I'm wondering, what is kind of your lower hurdle in terms of larger investments, in terms of IRR? So what is your minimum hurdle to make these deals?

I'll try to respond quickly just because of the time. But on the first one, what you just asked, life agents are going to compete against us. Yes. I told you in the beginning, I want to talk one hour about our strategy there. It's exactly about that. So what we are going to tell you soon is we are doing live commerce model, we are doing agents focusing on our internal and partners, and we are doing live agents, sorry, live assistance, where we deliver this kind of service to our customers. And I think we will be very well positioned because of our ecosystem and how to operate there, better than any other player outside. So I could talk about that for one hour, but I need you to wait a little more, but... I agree with you, Robert. It's a risk. Yes, it's an opportunity too. We are moving fast to lead on that, including on many investments we made exactly on this area. So we are bullish and excited about what we can do in what we call live assistance. Next chapter is to know more about that. The second is on IRR. We expect, yes, 30% IRR on La Central. Remember, La Central is a small company operating more isolated. We think that putting it together a lot everything we are doing outside, we are going to get good levels of growth, increasing profitability, and we expect it to get more than 30% in last year.

Okay. Thank you.

Great. Thanks. And it looks like Will, you're back in the line. You want to unmute your line?

I was very stressed with Robert. If you have more time, I can get back to Robert's question, but let's see what else you have. Will, are you there?

You left us. Sorry, I was just unmuting. Just wanted to come back. So thank you for your comments earlier. Very useful. So it's pretty clear the six to 7 billion is the right kind of framing for the FY26 buyback. When we think about FY27 beyond, is that the kind of level we should be thinking or is it just, you know, you're going to have optionality and decide depending on the relative appeal of different uses of capital? Thanks.

Most companies, they do a buyback very specific. I'm going to buy back $5 billion. We are doing an open buyback. So we are not exactly not saying this is the number for the next one to three years. So we don't have any number for next year. But as I told you before, what I don't like is to have an automatic thing. We have to analyze what we have, what opportunities we have, what's happening in the world. I'll give you one thing to think. I think browsers is ridiculous shit. Again, oh my God, well, we can have a company that's creating $1.5 billion close to that in profits, and we still have a discount. The world is not like that today. We have many companies valued at 100 times revenues. Having our cash position, maybe the world is going to change. That's my point. There is a lot of change ahead. I think process is very well positioned. If the world changes, we are going to become even more profitable. attractive company because we are doing innovation, AI, we are generating cash, and we have investment capacity. So I for sure, since I have an open-ended buyback, I don't need to think how it's going to work next year, one year in advance. I have to keep playing well with discipline, with good capital allocation. That's what you asked me one year ago. What I'm telling you now, one year after, we deliver the discipline. One year after, Selling less Tencent and more other companies is good capital allocation because we believe much more in the growth of Tencent. But what I commit to you is we are going to keep executing well, but we don't have a guidance for next year yet. We simply don't have it. So in six months, maybe we can share it more. Again, I'm confident we are going to keep executing well. What we have in terms of innovation delivery, too big. I think next year is much more a year of opportunity for us than a year of, oh, my God, how are we going to handle not believing what we promise?

OK, thank you, Will. We have four minutes left. Thanks, Will. We'll try to get two in. Madim from SBG, if you're on. So please unmute.

Good afternoon. Yes, just two very quick ones from me. So we noticed that the likes of Rightmove and others are investing at quite a high rate in AI. This has the impact of weighing down on their profitability. I'd just like to understand how process have done it. Because we haven't really seen that impact on profitability with these substantial investments in AI and LCM. And then just on top of that, just how much of a differentiator is it when you're looking to acquire businesses like LaCentral, the ability to bring these capabilities to the acquisition post deal?

So the first question was, how has OLX been able to do so well and expand margins immediately while investing in AI, whereas other companies, I won't repeat their name, have now had to kind of reset expectations? because they're investing. And it's been a long journey of OLX investing in AI.

Yeah, so I think it all started one year ago on culture, focusing results, innovating more. I think OLX is really delivering and operating well, but also it has the support of an ecosystem. So many of the things OLX is setting up right now, they are also learning and sharing from inside the ecosystem. Large commerce model, for example, the investment was holding an iPhone. And now that it is ready, we are pushing it to Alexa and to InGen. So I think that's the central story or thesis of process. We can have one classified company operating by itself, or, and that's my thesis, to get a bigger group that knows how to operate with classifieds and AI, we can make their performance better. So the first big company operating that is Despegar. The number of Despegar doesn't look that big because April, May, and June were bad. I looked at Despegar month by month. It is increasing every month for six months. So that's the difference. Who lacks benefits from that? And I'm quite sure Los Angeles benefits from that too.

So the overall benefit of being part of the group. Nadeem, thanks very much. We have to move to the last question. I think we're going to land this. Maddy, take us home, please.

Yes. Thanks a lot for taking my question. Just two quick ones from my side. Given your recent positive trip to India and the meeting with the Prime Minister Modi, would you say your CMD ambitions for India were too conservative? In hindsight, I mean, with just about 1.3x revenues from FY25 to FY28, and just above 5% margins. That's what your CMD guidance was. So wondering whether that changes at all post the meeting with the Prime Minister. And then the second one, on the asset monetization opportunities outside of Tencent and Mithuan, is there any major opportunities you can talk about? Thank you.

So, first, it was inspiring to meet the Prime Minister, it was really inspiring, but then you said many numbers, 1.3, 1.4, 1.5, I didn't connect those numbers super well, so for you?

Yeah, I think the numbers you're referring to are like essentially the long-term ambition that we shared at the CNBC. for India, but essentially at that point, those are the control businesses that at this stage is buying India. And obviously the ecosystem around that is much bigger. So it really depends how the control positions evolve over the next few years. So it could be substantially different depending on how it kind of goes down.

Yeah, it makes total sense. That's why I didn't recognize it though, because we are looking just to pay you basically. Our expectations are bigger than that, but but that's the way it is. This will be important on there. After talking with Prime Minister, if something changes, I'll tell you, yes, I'll tell you one thing. We did all the, we moved faster innovation in Brazil and Europe. That's the true thing that we're really running on AI. I think we are leading this big thinking. India has to lead. India cannot be one day behind Brazil and Europe, so expect more moves from us, making sure we have the best AI possible in Egypt. Any other questions? I forgot the other question.

Yeah, look, we've got 2 billion that we are in for this financial year. There are other assets that we can consider, but we're not going to sort of pre-announce it yet.

Yeah, there is some recommendations that say we are selling this company, probably you can understand why, but our portfolio is much more than made to earn and that's it. So there is many others, some of the others we talked about this year today, but there is many others, other five or 10, and there's many more billions we could sell, but we're not going to say exactly what. I can guarantee you this year we sell 2 billion, probably next six months we are going to announce how many billions we are going to sell the next year, but at least a few more billions.

All right. Well, thank you for that, Manny, and thank you very much, everybody, for joining us. Are there a couple of words you want to leave us with? You want to say a few final words?

I have a few final words. Today, the focus was on numbers. And I'm happy. I think we are moving on the right direction on numbers. We will get a few billion dollars in profits. There is much more to talk on execution of jets, not for today. Much more to talk on innovation, specifically the question that someone asked me today. I will talk exactly about that. So I am always unsure that we should be doing more and moving faster. But I think we are moving well. Just getting started, but our thesis from here is we are going to be a strong tech-focused operating company. We are going, we are getting there. So I'm excited with the results. Hope you enjoy them too. And I hope we're going to keep sharing good news with you in the future. Thanks for coming and thanks for being partners. Let's keep building the future together. Thank you.

Thank you very much, everyone. Thank you guys, and there are a couple of questions here that I will follow and and always if you have follows please reach out directly to your friendly IR team and we will see you see you very soon, thank you very much bye bye.