Q1 2024 Global Blue Group Holding AG Earnings Call Pre Recorded

August 28, 2023

Yeah.

Good morning, good afternoon, Yeah Theres extend.

You bet.

Luke and I will present to you the Q1 figures of 'twenty three 'twenty four with Roxanne before.

Speaker 1: Good morning, good afternoon. I'm Jacques-Tem, the CEO of the Global Blue. And I will present to you the Q1 figures of 23, 24 with Roxanne-Duffour, the CFO , the group. So, likely, first.

CFO.

So let me first start by that.

Key takeaway of this Q1 figures.

Very pleased to report a very strong performance in Q1.

Operator: Good morning, good afternoon.

In terms of.

Top line and profitability. So topline first saw an increase in terms of revenue of 68% at $95 million.

Jacques Thel: I'm Jacques Thel, the CEO of the Global Blue and I will present to you the Q1 figures of 2324 with Roxanne Dufort, the CFO of the group. So, likely first stop by the key takeaway of these Q1 figures. So very close to report a very strong performance in Q1 both in terms of the top line and profitability. So, top line first, so an increase in terms of revenue of 68% at 95 million and an increase of the adjusted ABD of more than 300% at 28 million.

Speaker 1: stop by the key takeaway of these two one-segers.

Speaker 1: So very pleased to report a very strong performance in Q1, both in terms of top line and profitability. So top line first, so an increase in terms of revenue of 68% at 95 million.

And an increase of the adjusted EBITDA of more than 300% at $28 million, So based on that and if we annualized.

EBITDA.

<unk> decision to ADT.

Speaker 1: and an increase of the adjusted ABDA of more than 300% at 28 million. So based on that, and if we analyzed the ABDA, including the seasonal edT.

Our Q1 figures on 12 months now reached $141 million.

Which is $20 million more than last quarter.

The fourth quarter of 2000.

Perfect.

Speaker 1: our Q1 figures on 12 months now reach 141 million which is 20 million more than the last quarter, so the fourth quarter of 2023.

Obviously, and I will come back with more details on that.

Jacques Thel: So, based on that, and if we annualized the ABDA, including the seasonality, our Q1 figures on 12 months now reach 141 million. Which is 20 million more than the last quarter of 223. Obviously, and I will come back to you on that one of the reasons of the acceleration is the recovery or the stop of the recovery of mainland China. So, we are benefiting from that, but we will continue to benefit from that is just the start and just to give you a sense of that.

One of the reason of the acceleration is the recovery or the start of the recovery of mainland China. So we are benefiting from that but we will continue to benefit from that is just the start and just.

Speaker 1: Obviously, and I will come back in more detail on that. One of the reasons of the acceleration is the recovery, or the start of the recovery of mainland China. So we are benefiting from that, but we will continue to benefit from that. It's just the start.

Sure.

To give you a sense of that.

If we were to reach a 105% of China's recovery.

We are now only at 8% as I was mentioning we were we would be able to reach a 200 million adjusted EBITDA I will go through the details of that.

Speaker 1: to give you a sense of that if we were to leach a hundred and five percent of Chinese recovery.

Which basically translate that for the next 18 months 18.

Speaker 1: We are not only at 38% as I was mentioning, we were able to reach 200 million adjusted FDA. I will go to the details of that, which basically translate that for the next 18 months, we're 18 to 21 months, we still have a very strong, 10-win coming from the China recovery. But beside that,

18 to 21 months, we still have a very strong.

Okay.

Jacques Thel: If we were to reach a hundred and five percent of Chinese recovery, we are not only at 38% as I was mentioning, we would be able to reach a 200 million adjusted ABD. So, I will go to the details of that, which basically translate that for the next 18 months, with 18 to 21 months, we still have a very strong 10-win coming from China recovery. But beside that, we project ourselves post the Chinese recovery. Obviously, we will continue to benefit from long-term growth driver that I will detail more in this presentation.

The tailwind coming from China.

China recovery, but besides that.

<unk> ourselves post.

The Chinese recovery obviously.

We will continue to benefit from long term growth driver that I will detail more in this presentation. So let's stop buy at the beginning and.

Speaker 1: project ourselves post the Chinese recovery. Obviously, we will continue to benefit from long term growth driver that I will detail more in this presentation. So let's start by the beginning, and I will let the floor, I will give the floor to Roxanne for the detail Q1 performance.

I will let the floor I will give the floor to <unk> for the detailed Q1 performance.

Thank you.

Hello, everyone I'm hughson before the selloff in global Blue and Irene. Thank you for the group's financial performance for our first quarter ended on the surplus opportunity in 2020.

Again, as a reminder of our financial year runs from April to March.

Speaker 2: Hello everyone, I'm Roxanne Dufour, the CFO of Globalblue and I will take you through the group's financial performance for our first quarter ended on the 30th of June 2023. Again as a reminder our financial year runs from April to March. Here this is the Q1 results announcement and all reconciliation to the nearest IFRS metrics are included in the appending.

Roxanne Dufort: So, the playstop by the beginning and I will let the floor, I will give the floor to Roxanne for the detailed Q1 performance.

He had this is the Q1 results announcement and our reconciliation to the nearest ISS metric, including total happened so.

Roxanne Dufort: Thank you, Roxanne.

Roxanne Dufort: Hello everyone. I'm Roxanne G4, the CEO of Global Blue, and I will take you through the group's financial performance for our first quarter, indeed on the 30th of June 2023. Again, as a reminder, our financial year runs from April to March. Here, this is the Q1 results announcement, and all reconciliation to the nearest IFRS metric are included into the appendix. So, let's move to slide 7 for the adjusted P&L related to our first quarter.

So let's move to slide seven.

P&L highlights to our first quarter.

We are very pleased to report a solid start to the year with significant progress against all the key metrics.

Fifth in Adp's reported self install increased by $2 5 billion Euro and an increase of 75% versus Q1 last year.

Speaker 2: So let's move to slide 7 for the adjusted P&L related to our first.

Speaker 2: We are very pleased to report a solid start to the year with significant progress against all the key metrics. TFS and ADPS reported self-increded by 2.5 billion euro, an increase of 75% versus Q1 less.

<unk> increased by 68% as mentioned biotech too fast to $94 5 million, you're all in the same period last year.

Roxanne Dufort: We are very pleased to report a solid start to the year with significant progress against all the kinetics. TFS and IDPS reported self-installed increased by 2.5 billion euro, an increase of 75% versus Q1 last year. Group revenue increased by 68%, as mentioned by Jack, to 94.5 million euro in the same period last year. We have delivered a significant improvement to almost 28 million euro versus 6.8 million euro last year at the same period.

Turning to adjusted EBITDA, we have had a significant improvement to almost 28 million annual two versus $6 8 million youll unless J Anderson pad.

Speaker 2: Group revenue increased by 68% as mentioned by Jack to 94.5 million euro in the same period last year.

Finally, we recorded an adjusted net income for the group of $2 1 million you all again, a significant improvement versus negative $11 6 million your whole last year now, let's turn to slide eight to.

Speaker 2: Turning to add the CDBDA, we have delivered a significant improvement to almost 28 million euros to a versus 6.8 million euros last year at the same period. Finally, we recorded an adhesive net income for the group of 2.1 million euros. Again, a significant improvement versus negative 11.6 million euros last year.

To dig into the revenue performance.

Here you can see we have had a solid start to the year with strong growth across the business. We delivered a 68% increase in reported revenue in Q1 of this yes. That's just the same period last year equating to 67% like for like basis.

Speaker 2: Now let's start with slide 8 to dig into the Revenu performance.

Roxanne Dufort: Finally, we recorded an adhesive net income for the group of 2.1 million euro. Again, a significant improvement versus negative 11.6 million euro last year. Now let's start to slide 8 to dig into the revenue performance. Here you can see we have had a solid start to the year with strong growth across the business. We delivered a 68% increase in reported revenue in Q1 this year's versus the same period later. A quite thing to 67% like for like basis.

Speaker 2: Here you can see we have had a solid start to the year with strong growth across the business. We delivered a 68% increase in reported revenue in Q1 this year, which is the same period larger, equating to 67% like for like base.

I wouldn't go into did you think that the vision on the following slides, but you can see here.

N T S and X is contributed.

That's a $7 6 million youre, having a venue.

With a further one 6 million scope effect from Jefferson excellent. We have also an FX impact of 0.9 million annual which forget this agenda to a $94 5 million annual in Q1. This year in revenue. That's just the same period last year, which we were at 56 million.

Speaker 2: I will go into the details per division on the following slides, but you can see here TFS, AVPS and RTS contributed a further 37.6 million euros in revenue, with a further 1.6 million euro scope effect from TFS and RTS.

Roxanne Dufort: I will go into the detail per division on the following slides but you can see here TFS, ADPS and RTS contributed a further 37.6 million euro in revenue with a further 1.6 million euro scope effect from TFS and RTS. We have also an FX impact of 0.9 million euro which gets us at the end to 94.5 million euro in Q1 this year in revenue. That's just the same period last year which we were at 56 million euro only.

Speaker 2: We have also an FX impact of 0.9 million euro, which together is at the end to 94.5 million euro in Q1 this year in Hovernew. That's just the same period last year, which we were at 56 million euro only.

Yes.

Turning now to the revenue performance per division.

Starting with <unk>.

<unk> accounted for 72% of the group revenue in Q1 of this year.

Yes.

Strong performance with an increasing revenue of 73, 5% on a reported basis.

Speaker 2: Turning now to the Revenue Performance per division.

Speaker 2: Starting with TFS, which accounted for 73% of the group revenue in Q1 this year, TFS delivered a strong performance with an increase in revenue of 73.5% on a reported basis. On a like-for-like basis, revenue in continental Europe increased by 63.5%, while the revenue in Asia-Pacific increased by 166.5%.

On a like for like basis, our revenue in Continental Europe increased by 63, 5%.

While the revenue in Asia Pacific increased by 166, 5% the increase in revenue primarily reflect the ongoing recovery across all nationalities coupons with the reopening of Chinese bother in January 2023, and as Jack mentioned, he will cover that in more detail later.

Roxanne Dufort: Turning now to the revenue performance per division. Starting with TFS which accounted for 73% of the group revenue in Q1 this year, TFS delivered a strong performance with an increase in revenue of 73.5% on a reported basis. On a like for like basis, revenue in continental Europe increased by 63.5% while the revenue in Asia Pacific increased by 166.5%. The increase in revenue primarily reflects the ongoing recovery across all nationalities coupled with the reopening of Chinese border in January 2023 and as Jack mentioned he will cover that in more details later.

Speaker 2: The increase in revenue primarily reflects the ongoing recovery across all nationalities, coupled with the reopening of Chinese border in January 2023, and, as Jacques mentioned, he will cover that in more details later.

Turning now to 80 P F.

ADP is accounted for 20% of will prevent you in Q1. This year. This division also delivered a strong performance with an increase in revenue of 49, 2% on a reported basis, we've built a strong performance across both business segments.

Speaker 2: AVPS accounted for 20% of the revenue in Q1 this year. This division also delivers a strong performance with an increase in revenue of 49.2% on reported basis, reporting a strong performance across both business segments. On a life-or-life basis revenue in FX solution increased by 64%, while revenue in the acquiring business increased by 44%.

Like for like basis revenue in ethics somebody showing increased by 64% while revenue in the acquiring business increased by 44%.

Roxanne Dufort: Turning now to ADPS. ADPS accounted for 20% of the group revenue in Q1 this year. This division also delivered a strong performance with an increase in revenue of 49.2% on reported basis, reporting a strong performance across both business segments. On a like for like basis, revenue in FX solution increased by 64% while revenue in the acquiring business increased by 44%. As with TFS, ADPS is also benefiting from the ongoing recovery in the travel industry.

With TFS, our Ats is also benefiting from the ongoing recovery in the travel industry.

Turning now to <unk>.

<unk> accounted for 7% of group revenue in Q1. This year as a reminder, at T. S reflect the acquisition of US exactly in March 'twenty, one consolidation of you'll put out.

Speaker 2: As with TFS, AVPS is also benefiting from the ongoing recovery in the travel industry.

September 21, and consolidation of ship up from November 22.

Speaker 2: RTS accounted for 7% of group revenue in Q1 this year. As a reminder, RTS reflects the acquisition of ZigZag in March 21, consolidation of Yokuda in September 21, and consolidation of ShipUp from November 20, 2021.

You can see at T. S revenue increased by 78% on a reported basis to $7 1 million in Q1. This year that was strong organic growth of 48, 6% or $1 9 million you off on Zig Zag, and you called up and an additional $1 3 million from the acquisition of ship.

Roxanne Dufort: Turning now to RTS. RTS accounted for 7% of group revenue in Q1 this year. As a reminder, RTS reflects the acquisition of the exact in March 21, consolidation of Yucula in September 21 and consolidation of ship-up from November 22. Here you can see RTS revenue increased by 78% on a reported basis to 7.1 million euro in Q1 this year. There was strong organic growth of 48.6% or 1.9 million euro from Yixag and Yucuda and an additional 1.3 million euro from the acquisition of ship-up.

Speaker 2: Here you can see RTS revenue increased by 78% on a reported basis to 7.1 million euro in Q1 this year. There was strong organic growth of 48.6% or 1.9 million euro from Yixag and Yucuda and an additional 1.3 million euro from the acquisition of sheep.

But.

Turning now to slide 12, our fault the breach from issued two ammonia.

Ian This is the region, maintaining a number of items to consider between the issue that S. I S to rip out your door count and here, we are showing the comparison, that's just calendar year 2019 pick of it later.

Speaker 2: Turning now to slide 12 for the bridge from issued fees to revenue.

We are at 120% recovery fall issued self install into a fascinating P. S.

Speaker 2: Here, this is the bridge detailing a number of items to consider between the issued SIS to the reported revenue. And here we are showing the comparisons versus calendar year 2019 pre-COVID level.

Roxanne Dufort: Turning now to slide 12 for the bridge from issues to revenue. Here, this is the bridge detailing a number of items to consider between the issues SIS to the reported revenue. And here we are showing the comparison versus calendar year 2019, pre-COVID level. We are at 120% recovery for issues that are seen stored in TFS and AVPS. And the issue the SIS is here presented on a like for like basis, meaning at constant parameters.

The issue that I say, yes. He's here are presented on a like for like basis at constant parameter.

Then we take into account the scope effect of the U K abolishing the tax free shopping scheme in January 'twenty, one and as a reminder, prior to the abolition of the scheme. The UK accounted for 14% of booked TSS reports he does say, yet which is no longer the case now.

Speaker 2: We are at 120% recovery for issued cell scene store in TFS and AVPS. And the issued SIS is here presented on a like for like basis, meaning at constant parameter.

Speaker 2: Then we take into account the scope effect of the UK abolishing the tax free shopping scheme in January 21. And as a reminder, prior to the abolition of the scheme, the UK accounted for 14% of group TFS reported SIH, which is no longer the case.

The impact from the U K, a bullish monkeys 12 bonds and there is a sort of a five point impact due to FX translation and also a one point impact related to the discontinuation of our business in Russia.

Roxanne Dufort: Then we take into account the scope effect of the UK, abolishing the tax free shopping scheme in January 2021. And as a reminder, prior to the abolition of the scheme, the UK will concede for 14% of group TFS reported SIS, which is no longer the case here. The impact from the UK abolishment is 12 points and there is a further 5 points impacted due to effects translation, and also one point impact related to the discontinuation of our business in Russia.

Which gave us at the end of 102% recovery and ensure they say, yes and shifts in EPS reported this time with TFS at 96% and Navy P. S at the 128%.

Speaker 2: The impact from the UK abolitionment is 12 points, and there is a further five points impacted due to effects translation, and also one point impact related to the discontinuation of our business in motion.

We have the refunds ratio a bit.

Speaker 2: which give us at the end 102% recovery in issued SIS in TFS and AVPS reported this time with TFS at 96% and AVPS at 128%. So that's what I think we are going towards.

One ratio, meaning that once the transaction is it should the traveler has to validate the tax reform and get the refund.

At this point in time the transaction is part of the report you. This I asked which triggers the oven.

Roxanne Dufort: We'll give us at the end 102% recovery in issue SIS in TFS and AVPS, reported this time with TFS at 96% and AVPS at 128%. Then we have the refund ratio, refund ratio, meaning that once the transaction is issued, the traveler has to validate the tax reform and get the refund. Only at this point in time the transaction is part of the reported SIS, which triggers the revenue. Today the actual refund ratio is slightly lower than 2019, but it's mainly due to a nationality mix effect.

Today, the actual refunds ratio is slightly lower than 2019, but it's mainly due to a nationality mix effect.

Speaker 2: refund ratio, meaning that once the transaction is issued, the traveler has to validate the tax reform and get the license.

Speaker 2: Only at this point in time, the transaction is part of the reported SIS which triggers the revenue. Today, the actual refund ratio is slightly lower than 2019, but it's mainly due to a nationality mix effect. Then there are transactions completed off-period. This is where the transactions have been issued in a quarter, but validated and refunded in the following quarter.

Then they outruns extra uncompleted a failure. This is where the transactions have been issued in a quarter of it validated and refunding in the following quarter.

This gets us a 101% recovery for completed S. I S T a fascinated kit.

Then we have some leakage on completed with what you just say you have to report to you. The revenue first for TFS, we Havent merchant mix effects, where there has been an increased level of business with larger merchants will get a higher rate of commission. We have an increase in average spend which means a higher rate of V. T that is refunded.

Speaker 2: This gets us a 101% recovery for competitive SIS in CFS and IVTS.

Roxanne Dufort: Then there are transaction completed of period, this is where the transactions have been issued in a quarter, but validated and refunding in the following quarter. This gets us 101% recovery for completed SIS in TFS and AVPS. Then we have some leakage from completed reported SIS to reported revenue. First for TFS, we have a merchant mix effect, where there has been an increased level of business with larger merchants who get a higher rate of commission.

Speaker 2: Then we have some leakage from completed reported desire to reported revenue. First for TFS, we have a merchant mix effect where there has been an increased level of business with larger merchants, we get a higher rate of commission. We have an increase in average spend, which means a higher rate of VAT that is refunded and therefore a lower take up for global growth.

And therefore, a lower take up fall goodbye.

Because we have the a V P S mix effect, where the H D. P. S business, which is lower margin is growing faster than Texas.

US 87% reported revenue recovery for ADT isn't Jeffus. Finally, we have the contribution from kiss from MTS business, which gave US 94 per cent per venue recovery for the group for Q1 'twenty three 'twenty four.

Speaker 2: Second, we have the AVPS mix effect where the AVPS business, which is lower margin, is going faster than TSP.

Roxanne Dufort: We have an increase in average spend, which means a higher rate of VAT that is refunded and therefore a lower take up for global. Second, we have the AVPS mix effect, where the AVPS business, which is lower margin, is going faster than TFS. This gives us 87% reported revenue recovery for AVPS and TFS. Finally, we have the contribution from TFS, from air TFS business, which gives us 94% revenue recovery for the group for Q1, 23, 24.

Speaker 2: This gives us 87% reported revenue of recovery for ADTS and TFS. Finally, we have the contribution from RTS Business, which gives us 94% revenue recovery for the group for Q1 23-24.

Turning now now to adjusted EBITDA.

The significant improvement in her venue to get out with the ongoing focus on the cost base led to a four times increase in our adjusted EBITDA in Q1 this year versus the same period last year with a 55% for venue dropped scope in adjusted EBITDA.

Speaker 2: Turning now to Agile CDVD.

Speaker 2: The significant improvement in revenue together with the ongoing focus on the cost-based led to a four times increase in an adjusted EVA in Q1 D-Share versus the same period last year.

And that will take you through this in detail here, we begin with our adjusted EBITDA on the left side, which was six to 8 million you hold last year.

Roxanne Dufort: Turning now to Azure CDBDA. The significant improvement in revenue together with the ongoing focus on the cost-based led to four times increase in the Azure CDBDA in Q1 this year versus the same period last year. With 55% revenue drop through in Azure CDBDA, and I will take you through this in detail here. We begin with our Azure CDBDA on the left side, which was 6.8 million euro last year. As I covered on the previous slide, there was a strong revenue improvement across all the business lines, and you can also see this here.

Speaker 2: with 55% for the new drop through in adjusted DVD, and I will take you through this in detail here. We begin with our adjusted DVD on the left side, which was 6.8 million euro last year.

As I covered on the previous slide there was a strong revenue improvement across all the business lines and you can also see this here if we look at the contribution additional contribution of the of each business' contribution being dual revenue minus the direct via because here we have a soldier 29.

Speaker 2: As I covered on the previous slide, there was a strong revenue improvement across all the business lines and you can also see this here. If we look at the contribution, the additional contribution of each business, contribution being the revenue minus the direct variable cost. Here we have a further 29 million euro in Q1, this year.

Million Euro in Q1 this year.

Looking to the divisional contribution it's just an additional 24 million.

Yes, that's.

Almost 4 million from FX solution. They opened 6 million format, yes, and available to them again from the acquiring business.

Roxanne Dufort: If we look at the contribution, the additional contribution of each business, contribution being the revenue minus the direct variable cost. Here we have a further 29 million euro in Q1 this year. Looking into the divisional contribution, this is an additional 24 million from TFS, almost 4 million from FX solution. 0.6 million from TFS and 0.2 million from the acquiring business, this. Then, thinking into account for 6.4 million euro of 6 costs, 1.1 million of scope effect and 0.6 million of foreign exchange impact, the group delivered an adjusted BBVA of 27.8 million euro, precisely, with an increase in adjusted BBVA margin of 17 points to 29 percent now in Q1, 23, 24.

Speaker 2: Looking into the divisional contribution, this is an additional 24 million from the FS, almost 4 million from FX solution. They're up on 6 million from RTS and they're up on 2 million from the acquiring base.

Then thinking into calling to six 4 million your fixed cost $1 1 million of scope effect and the whole point of foreign exchange impact the group and even other niches to EBITDA of $27 8 million you hope It Pisses me with an increase in adjusted EBITDA margin of.

Speaker 2: Then thinking into a current 6.4 million euro of six costs, 1.1 million of scope effect and 0.6 million of foreign exchange impact, the group delivered an adjusted EBDA of 27.8 million euro, precisely, with an increase in adjusted EBDA margin of 17 points to 29 percent now in Q1, 23, 20.

17 points to 29% now in Q1, 'twenty three 'twenty four.

Turning now to slide 14 for further detail on Egypt.

Yeah, we are showing the annualized adjusted year based on the quarterly every government. The yearly X population includes the PFS in Atk's performance in the values coauthored applied to the year and excluding purchase business. You can see here is TD and consistent improvement in the annualized.

Speaker 2: Turning now to slide 14 for further detail on EDD.

Speaker 2: Here we are showing the annualized adjusted EBD based on the quarterly recovery. The yearly extrapolation includes the TFS and ADPS performance in the various quartered, applied to the year and excluding her

Yeah, just to give you get from 43 million your whole less sho same failure in Q1, 'twenty two 'twenty three to 121 million Euro in Q4, our financial year 'twenty two 'twenty three now during this quarter based on the Q1 recovery the annualized quarterly EBITDA.

Roxanne Dufort: Turning now to slide 14 for further detail on EVD. Here, we are showing the annualized adjusted BBVA based on the quarterly recovery. The yearly extrapolation includes the TFS and ALPS performance in the values quartered, applied to the year and excluding RTS business. You can see here a steady and consistent improvement in the annualized quarterly at the CDBGA from 43 million euro last year, same period in Q1, 22, 23 to 121 million euro in Q4 financial year, 22, 23.

Speaker 2: You can see here a steady and consistent improvement in the annualized quarterly at the CDBDA. From 43 million euro last year same period in Q1, 223, to 121 million euro in Q4, financial year, 223. Now, during this quarter, based on the Q1 recovery, the annualized quarterly EVDA is at 141 million dollars.

At 141 million you'll.

This has led to a significant improvement in margin from 18, 7% in Q1 that show to search a seven 2% in Q1 this year.

Turning now to slide 15 for a breakdown on D&A and net finance cost.

Speaker 2: This has led to a significant improvement emerging from 18.7% in Q1 data to 37.2% in Q1. This.

Roxanne Dufort: Now, during this quarter based on the Q1 recovery, the annualized quarterly EVD is at 141 million euro. This has led to significant improvement in margin from 18.7 percent in Q1 last year to 37.2 percent in Q1 this year. Turning now to slide 15 for a breakdown on DNA and net finance cost. Here, on the left side, related to the DNA, we have a slight increase of 0.3 million euro to 9 million.

Yeah on the on the on the left side are related to good unit, we have a slight increase of available 3 million or two 9 million.

Speaker 2: Turning now to slide 15 for a breakdown on VNA and net finance.

And on an annualized basis. This equates to a journey of 36 million, which is in line with Capex guidance at 35, New Daniel.

Speaker 2: Here on the left side, related to the DNA, we have a slight increase of 0.3 million to 9 million. And on an annualized basis, this equals to a DNA of 36 million years, which is in line with capex guidance at 35 million years.

Roxanne Dufort: And on the annualized basis, this equal to a DNA of 36 million euro, which is in line with CAPEX guidance at 35 million euro. Then, on the right side, you have the net finance cost details. Cost increased by 0.7 million euro to 10.7 million euro this year. And this is mainly due to an increase in interest cost of 5.4 million euro versus last year. And this increase in interest cost is directly linked to the increase in interest rates.

Roxanne Dufort: Turning now to slide 15 for a breakdown on DNA and net finance cost. Here, on the left side, related to the DNA, we have a slight increase of 0.3 million euro to 9 million. And on the annualized basis, this equal to a DNA of 36 million euro, which is in line with CAPEX guidance at 35 million euro. Then, on the right side, you have the net finance cost details. Cost increased by 0.7 million euro to 10.7 million euro this year.

On the right side that you'll have the net finance costs detailed cost increased by 0.7 million, you'll hold to $10 7 million you hold this year and this is mainly due to an increase in interest costs of a $5 4 million you all that as Fletcher and disease. These are distinct freezing into I suppose.

Speaker 2: Then on the right side you have the net finance cost details.

Speaker 2: Cost increased by 0.7 million euro to 10.7 million euro this year. And this is mainly due to an increase in interest cost of 5.4 million euro versus last year. And this increase in interest cost is directly linked to the increase in interest rates. Last year the dendy's rate was at 2.72% and now it's 5.60%.

Is directly linked to the increase in interest rates that are the debentures right was a two point, 72% and now it's 560% and this is the Intel isolated to the to our senior debt and revolving credit facility.

Roxanne Dufort: And this is mainly due to an increase in interest cost of 5.4 million euro versus last year. And this increase in interest cost is directly linked to the increase in interest rates. Last year, the damage rate was at 2.72 percent, and now it's 5.60 percent. And this is the interest related to our senior debt and revolving credit facility. This will largely offset by the other finance cost decreasing by almost 5 million.

This was largely offset by the finance costs decreasing.

By by almost <unk> 5 million as a reminder, last year.

Speaker 2: And this is the interest related to our senior debt and revolving credit facilities.

We had a major impact.

Roxanne Dufort: Last year, the damage rate was at 2.72 percent, and now it's 5.60 percent. And this is the interest related to our senior debt and revolving credit facility. This will largely offset by the other finance cost decreasing by almost 5 million. As a reminder, last year, we had a major impact due to the forehand exchange losses related to the surface and knighted equity transactions. And the supplemental shareholder facility, those are being used in the USD while global law reporting on.

Due to the foreign exchange losses related to the south of us and nightclubs and equity transactions and just simply Monotype shareholder S. E. T are those are they don't mean anything to the U S. D Y Bluebird Blue report to you.

Speaker 2: This will largely upset by the other finance cost decreasing by almost 5 million. As a reminder last year, we had a major impact due to the forehand exchange losses related to the surface and knighted equity transactions. And the supplemental shareholder facility, those are the new means in the United States while global law reporting on.

Now, let's move to slide 16 for and then you just put on on our on our cash flow.

Roxanne Dufort: As a reminder, last year, we had a major impact due to the forehand exchange losses related to the surface and knighted equity transactions. And the supplemental shareholder facility, those are being used in the USD while global law reporting on.

I fell in adjusted EBITDA of $27 8 million, you'll you'll have a seven to 8 million of Capex in the quarter and this is essentially related to technology development. It's very pleasing to report a positive adjusted EBITDA less capex of 20 million you all while we continue to invest in its Todd.

Speaker 2: Now let's move to slide 16 for an analysis on our cache show.

Speaker 2: After an adjusted CDBDA of 27.8 million euros, you have a 7.8 million euros of CAPEX in the quarter, and this is essentially related to technology development. It's very pleasing to record a positive adjusted CDBDA less CAPEX of 20 million euros, while we continue to invest in strategic projects.

Roxanne Dufort: Now, let's move to slide 16 for an analysis on our on our cash flow. After an adjusted division of 27.8 million euro, you have a 7.8 million euro of CAPEX in the quarter. And this is essentially a related to technology development. It's very pleasing to report a positive adjusted division as CAPEX of 20 million euro while we continue to invest in strategic projects. Turning now to working capital, as we see the travel industry recover, we see increase in volume, which leads to an increase in our capital, in our working capital needs, as the travelers get refunded upfront and about a month later we collect the VAT from merchant authorities.

<unk> project.

Turning now to walking catch style as we see the travel industry to recover we see increase in volume of which leads to an increase in our capital.

In our working capital needs.

Hudson to troubled us gets refunded, a prompt and about the monthly tell we collected E. T for match on toll authorities, Yeah, and you can see that we have a working capital outflow during the quarter of $47 4 million.

Speaker 2: Turning now to working capital, as we see the travel industry recover, we see increase in volume, which leads to an increase in our capital, in our working capital needs.

Roxanne Dufort: Here you can see that we have a working capital outflow during the quarter of 47.4 million euros but again this is completely in line with the increase of the volume during this period during the summer and automatically what's in our business. You have a tailwind of this of this working capital and you have an inflow that correspond to this outflow that will be as close as the summer season. All the time this is in cutree that we see this inflow coming back.

Speaker 2: As the traveoff gets, we find did a prompt and about months later we collect the V? T from matchant AU.

But again this is a completely in line with the increase of the volumes were in display during the setup and automatically what's our in our business you will have a tailwind of this oh this walking capital and you'll have an inflow that correspond to these outflow that will be I still listen us.

Speaker 2: Here you can see that we have a working capital outflow during the quarter of 47.4 million euro. But again, this is completely in line with the increase of the volume during this period during the summer.

And then most of them all the time decision to treat that we see this inflow coming back.

Speaker 2: And automatically, what's in our business, you have a tailwind of this working capital and you have an inflow that corresponds to this outflow that will be after the summer season, most of the time this is in Q3 that we see this inflow coming back.

The second 0.0 that is important to mention on the cash flow just as the interest that's off a related to the senior debt that has been paid for the last six months during the quarter and it is in fact hit the cash flow by a $19 4 million Euro.

Speaker 2: The second point that is important to mention on the cash flow, this is the interest that are related to the senior debt that has been paid for the last six months during the quarter. And it has impacted the cash flow by 19.4 million euro. And as an information, the next payment is at the end of November 23. We pay every six months.

<unk> as a as an information the next payment ease at the end of November 23.

Roxanne Dufort: The second point that is important to mention on the cash flow, this is the interest that are related to the senior debt that has been paid for the last six months during the quarter and it has impacted the cash flow by 19.4 million euros and as an information the next payment is at the end of November 23. We pay every six months. Most of the time. Finally our net financial debt increased by 58 million euros which I will cover in the next slide.

We pay every six months.

Most of the thing.

Finally, our net financial debt increased by 58 million, which I will cover in the next slide.

As of June <unk> as of end of June 23, our net financial debt multiple of six $608 million.

Speaker 2: Finally, our net financial debt increased by 68 million euros, which I will cover in the next slide.

Both our senior debt and he got Lincoln personal care of I'm, not sure who to date AR at the end of August 2025.

Speaker 2: As of June , as of end of June 23, our net financial debt amounted to 608 million euros. Both our senior debt and revolving credit facility have a maturity date at the end of August 2025. As a reminder, the financial covenant is based on the level of total net leverage, lower than 4.5 times.

As a reminder, the financial Covenant is based on the level of total net leverage lower than four five times we.

Roxanne Dufort: Finally our net financial debt increased by 58 million euros which I will cover in the next slide. As of end of June 23 our net financial debt amounted to 688 million euros. Both our senior debt and revolving credit facilities have a maturity date at the end of August 2025. As a reminder the financial covenant is based on the level of total net leverage lower than 4.5 times. We were in compliance with the first testing date as of 30th from March 23 with the total net leverage at two times and we anticipate that we will be in compliance with the next financial covenant testing on September and of September 23. You can see we have a strong balance sheet with 182 million euros of cash and cash ex-revalent at the end of June.

We went in to where we were in compliance with the self testing data is of such a test on rush 'twenty three with the total net leverage at two times and we anticipate that we will be in compliance with the next financial Covenant testing on September end of September 22.

Roxanne Dufort: As of end of June 23 our net financial debt amounted to 688 million euros. Both our senior debt and revolving credit facilities have a maturity date at the end of August 2025. As a reminder the financial covenant is based on the level of total net leverage lower than 4.5 times. We were in compliance with the first testing date as of 30th from March 23 with the total net leverage at two times and we anticipate that we will be in compliance with the next financial covenant testing on September and of September 23. You can see we have a strong balance sheet with 182 million euros of cash and cash ex-revalent at the end of June.

Speaker 2: We were in compliance with the first testing date as of circuit of TomBrash 23, with the total net leverage at two times. And we anticipate that we will be in compliance with the next financial covenant testing on September end of September 20.

And you can see we have a strong balance sheet with a 182 million of cash and questions wavelength at the end of June.

Turning now to slide 18 for the key takeaways.

Okay.

Speaker 2: You can see we have a strong balance sheet with 182 million euro of cash and cash equivalent at the end of June . Turning now to slide 80.

First we are very pleased to report is based on a solid recovery as soon as he kind of increasing revenue of 16, 8% to 90 95 million.

C guns are thanks to the strong revenue growth and the ongoing management of the cost base. We are very pleased to report a strong improvement in adjusted EBITDA to 28 million, which is four times of what has been reported last year at the same time, we the revenue drops through a 55% in adjusted EBITDA.

Speaker 2: First, we are very pleased to report a base on a solid recovery, a significant increase in the volume of 68% to 95 million.

Roxanne Dufort: Turning now to slide 18 for the PTC queries. First we are very pleased to report based on a solid recovery a significant increase in revenue of 68% to 95 million euros.

Speaker 2: Second, thanks to the strong revenue growth and the ongoing management of the cost base, we are very pleased to report a strong improvement in adjusted EVV to 28 million euros, which is four times of what has been reported last year at the same time, with a revenue drop through of 55% in adjusted EVVVM.

Roxanne Dufort: First we are very pleased to report based on a solid recovery a significant increase in revenue of 68% to 95 million euros. Second thanks to the strong revenue growth and the ongoing management of the cost base we are very pleased to report a strong improvement in adjusted BBVA to 28 million euros which is four times of what has been reported last year at the same time with the revenue drops through of 55% in adjusted BBVA.

Finally, if we hadn't if we annualized adjusted EBITDA based on the quarterly performance of just Q1, Oh, just Q1 for TFS and Apis that shows a consistent improvement from 47 million you'll ask Chuck at the same pad two now at 140 <unk>.

Roxanne Dufort: Second thanks to the strong revenue growth and the ongoing management of the cost base we are very pleased to report a strong improvement in adjusted BBVA to 28 million euros which is four times of what has been reported last year at the same time with the revenue drops through of 55% in adjusted BBVA.

Speaker 2: Finally, if we annualized at the adjusted ABDA based on the quarterly performance of this Q1, 40 FS and 80 FS, that shows a consistent improvement from 47 million euro pasture at the same period to now at 141 million euro.

$1 million.

This concludes the financial fixtures fiction and I will now hand over to <unk> to present, the latest strengths and the long term growth drivers I'll go back.

Roxanne Dufort: Finally if we annualized at the adjusted BBVA based on the quarterly performance of this Q1 of this Q1 for TFS and APS that shows a consistent improvement from 47 million euros last year at the same time to now at 141 million euros.

Thank you Brooks onshore I was struck by the religious range too.

Speaker 2: This concludes the financial section and we'll now hand over to Jacques to present the latest trends and the long term growth driver for Global

In particular.

July you can see on this table that was like that.

That basically is utilized.

We're stupid or something which was really in line with where Q1.

Speaker 1: Thank you, hot fans. So I will stop by the latest trend. So any particular link to July , you can see on these tables, there's like 21 that basically in July , we have posted something which was really online with what you want. Apart the next iteration of the rules in the back.

Jacques Thel: This concludes the financial section and we'll now hand over to Jacques to present the latest trends and the long-term growth trade-off on global. Thank you. So I will start by the latest trend. So any particular link to July, you can see on this table that was like 21 that basically in July, we have posted something which was really online with what you want. Apart the next iteration of the rules in the back, we are on the back of the journey recovery.

But both the next iteration of the blues in the back.

Sure.

Exactly the journey recovery.

Three points increase like for like should set us too.

Such as the percent of it's just congestion and 11% in Q1 and in Europe, basically more or less at the same level.

Speaker 1: We're on the back of the channel recovery. We have a 23 points increase like for life. We should expect to install at 150 per cent. There's just 11%. 21 and you're basically more or less at the same level or under 10%, 20%. Let's be right now into the detail.

As a Christian let's deep dive into the detail.

In Europe as it was mentioned we have seen in July more or less interesting there was in the room.

Jacques Thel: We have a 23 points increase like flight. We should start at 135 percent, that's just 11 percent in Q1 and in Europe, basically more or less at the same level or under 10 percent. Let's divide now into the details. So in Europe, as I was mentioning, we have seen July more or less at the same level than the G1. And we continue to see an increase of spent, which is healthy, around 30 percent, 29 percent, to be precise.

We continue to see an increase of space, which is healthy alone 50% anchor seemed to be precise too.

Speaker 1: So in Europe , as I was mentioning, we have seen a July more or less at the same level than the G1. And we continue to see an increase of spank, which would help see around 30%, 29% to the size. So between that, we have a recovery in terms of number of shopping of 92% like for like, the system to 19, where thanks to the average spank increase, the spank is reaching a recovery of one within into the size.

Which means that we have a recovery in terms of number of shoppers of 92% like for like those two things.

Thanks to the average increase this thing is.

Yeah.

Richie.

One is with an eight 2%.

When we look to be tempered nationality, we are basically seeing that.

Jacques Thel: So between that, we have a recovery in terms of number of trouble of 92 percent, like for like a system to 19, where thanks to the average spent in grade, the spent is reaching a recovery of one within into process. When we look to the detail per nationality, we are basically seeing that in July, the nationality beside China and Russia are more or less consistent around 150, 160 percent. We saw, I would say, slight movements for US and just to see which are a little bit near soft, where the mid and long pole are around the stable around one of the 10 percent.

These rely.

Nationality beside China, and Russia are more or less consistent enrolled 150, <unk> hundred 60%.

Speaker 1: When we look to the Vietnam-Purge nationality, we are basically seeing that in July , the nationality beside China and Russia are more or less consistent around 150, 160%.

Some.

I would say.

<unk> reached over to you.

U S and just your shoes and it could be clear sourced.

Where the leases and loans fall.

Loans are stable.

Speaker 1: We saw, I would say, slight movements for the US and GCC, which are a little bit near-source.

When they were let's say, 20%, while the other hand, if we see that the China or as.

The slightly negative in July.

Speaker 1: where the mid and long fall are stable around 1.1%

Terms of the level of retail <unk> also maybe 40% versus.

Which is 7%, let's go a little bit more into the detail of join them, So basically ensuring though we.

Speaker 1: On the other hand, we see that China has been slightly negative in July in terms of level of recovery versus Q1. So maybe 40% versus 47% let's go a little bit more into the detail of China.

We are seeing that.

Thank you Christie.

Recovering nicely, which is great.

Jacques Thel: On the other hand, we see that China has been slightly negative in July, in terms of the level of recovery versus Q1. So maybe 40 percent versus 47 percent. Let's go a little bit more into the detail of China. So basically in China, we are seeing that the accuracy is recovering nicely, which is right. But the number of international shoppers in July has been far lower than the capacity probably there. The combination of the cost of the flight, but also the delay to obtain these are to come in Europe, explain why you had this light between the recovery in terms of international shoppers and the air capacity.

The number of international Sugar in July as being.

Speaker 1: So basically in China, we are seeing that the AI capacity is recovering actually, which is right, but the number of international troubles in July has been far lower than the AI capacity.

Our the MDI capacity, probably there could.

Combination of the cost of the slides go to through.

The delay to obtain a visa.

So to come in Europe explained why you have the slide between the recovery in terms of international shoppers Erika.

Speaker 1: Probably there, the combination of the cost of the flight, but also the delay to obtain these out to come in Europe , explain why you have this light between the recovery in terms of international shopping and the air capacity.

Capacity.

But we are benefiting with yoga hand, like food most of yoga and rationality in Europe, although increases the average Chinese.

<unk> spending in Europe with <unk>.

Speaker 1: But we are benefiting, on the other hand, lack for most of the other nationalities in Europe , over an increase of average spent, so Chinese spending in Europe of 54%.

The 4%.

If we move now to a Buck I was mentioning in acceleration in July.

We have reached.

Pembroke and 34% versus just wonder if when we let ambitious in Q1 and there clearly.

Jacques Thel: But we are benefiting of the other hand like for most of the other nationalities in Europe over an increase of average length, so China spending in Europe will be 4 percent. If we move now to a pack, I was mentioning an acceleration in July, we have reached 100 to 134 percent versus 111 percent in Q1. And there, clearly, on the back of the substantial more increase of spent, if in Europe, we were talking about 29 percent here, we are talking about a new period of spent of 40 percent.

Speaker 1: If we move now to the back, I was mentioning an acceleration in July . We have reached 134% versus 111% in June 1. And there, clearly, on the back of the substantial more increase of spent, if in Europe we were talking about 29% here, we had to put about a new period of spent of 40%.

The substantial increase of spend.

In Europe, we were talking with a 29% fewer different windows.

Just think of 40% which means that.

At the end.

In July we worked if it were to have a recovery in terms of number of shoppers, 96% and expense recovery of 104% where do we go into the details of the nationality.

Speaker 1: which means that at the end in July , we were capable to have a recovery in terms of number of shoppers of 96% and a spent recovery of 134%.

Like in Europe July was more or less stable.

All nationalities excluding.

China.

Jacques Thel: Which means that at the end in July, we were acceptable to have a recovery in terms of number of shoppers of 96 percent and a spent recovery of 104 percent. When we go into the detail of the nationality, a bit like in Europe, July was more stable for all nationality, excluding China at around 175 percent. On the back of the very solid performance from Hong Kong and Taiwanese residents, almost 900 percent recovery versus 2019.

At around 175%.

Speaker 1: When we go into the detail of the nationality, like in Europe , July was more or less stable for all nationality, excluding China at around 175%.

On the back of a very solid.

Personal loans from Hong Kong and Taiwan. These residents.

At 400% recovery versus June and obviously, the nice increase of the region has been.

Speaker 1: on the back of the very solid performance from Hong Kong and Taiwanese residents, almost 9,400 percent recovery versus 2019. And obviously the nice increase of the region has been possible thanks to the increase of China.

Possible. Thanks.

Decrease of China.

We're from 60% to what we are now moving 200%.

July.

We go through the detail.

The understanding that it's mostly coming from the average spend.

Speaker 1: where from 60% into one, we are now moving to 100% in July . And if we go to the detail of the understanding of that, it's mostly coming from the average spent, because you see that in terms of recovery of international traveler at 56%, we are more or less.

Because you see that in terms of recovery of international traveler at 56%, we are more or less.

Jacques Thel: And obviously, the nice increase of the region has been possible thanks to the increase of China, where from 60 percent to what we are now moving to 100 percent in July. And if we go to the detail of the understanding of that, it's mostly coming from the average spent, because you see that in terms of recovery of international traveler at 36 percent, we are more or less equal to the air capacity.

Equal to the capacity.

Clearly the increase of the spend by Chinese when there should be in the back.

Is explaining.

100% spend recovery with this average increase.

Speaker 1: equal to the air capacity and clearly the increase of the spend by Chinese when they are shopping in the pack, is explaining the 100% spend recovery with the average increase of 100 and 19%.

19%.

So in summary, what we can fill in the later spring season.

Very solid business, excluding joined <unk> in Europe in the back.

With the level in July which is more or less stable. So a 165, 60% in Europe.

Jacques Thel: And clearly, the increase of the spent by Chinese, when they are shopping in a pack, is explaining the 100 percent spent recovery with the average increase of 110 percent. So in summary, what we can say on the later strengths is very solid business, excluding China in Europe and Iraq with a level in July, which is more or less stable, so 155-60% in Europe, 155 in Iraq, and clearly what makes a difference is the increase in the impact of the Chinese recovery reaching for the first time now 100% with Europe still lagging, probably as mentioned because of the combination between the cost of flight and the time to issue these up, and also the desire from Chinese travelers to enjoy a kind of more short hold in Japan and in Korea, which are the two of the destination, which are benefit from most of the recovery in effect.

Speaker 1: So in summary, what we can say on the later strengths is very solid business, excluding China in Europe and the pack with a level in July , which is more or less stable, so 155, 60% in Europe , 175 in the pack. And clearly what makes a difference is the increase in the impact of the Chinese recovery at reaching for the first time now 100%. With Europe ...

Friday netback and clearly.

What makes a difference.

Great.

In the back of the journeys recovery, reaching for the first time, not 100% with Europe still lagging.

Probably as mentioned because of the composition between the cost of light the timing to issue.

And also the desire from Chinese travelers to enjoy the kind of more.

Short hold.

Speaker 1: still lagging probably as mentioned because of the combination between the cost of flight, the time to issue these out. And also the desire from Chinese tremors to enjoy a kind of more short hold in the Japan and in Korea, which are the two destination, which are the benefit from most of the recovery in a pack.

Japan and Korea.

Which are the true measure this.

Distributions, which are benefit from most of the recovery.

So, let's turn ourself, a little bit more in the next months and and what are the key drivers for this show continuous recovery in particular.

China is so huge.

A few of them in there to share with you first of all the willingness from Chinese travel remains very high <unk>.

Speaker 1: So let's turn ourselves a little bit more in the next month and what are the key drivers for this continuous recovery in particular of the Chinese. Thank you for listening.

Above 70%.

You know that we've ever launched.

Jacques Thel: So let's turn ourselves a little bit more in the next months and what are the two drivers for this continuous recovery in particular of the very Chinese. So few elements they are to share with you, first of all, the willingness from Chinese to travel remains very high, of all 70% you know that we survey every month something like 10,000 Chinese in order to test their appetite to travel and see now a couple of quarter, actually three quarter, two quarter plus two likes, we are thinking that it has reached around 70%.

Something like pay TV Chinese in order to.

Speaker 1: A few elements there to share with you. First of all, the willingness from Chinese in travel remains very high, above 70%. You know that we survey every month something like 10,000 Chinese in order to test their appetite to travel. And since now a couple of quarter, actually three quarters, two quarters plus July , we have seen that in times reach around 70%.

That's the appetite to travel and see snow, coupled with a quarter actually three quarter to quarter close July we have seen that it has reached around 70% secondly, we should not forget about that and we have seen that in a breath already.

Potentially.

Average rents to be much higher than in 2019 will be driven by the saving natures of luxury spin that Chinese.

Speaker 1: Secondly, we should not forget about that. And we are seeing that in effect already, the potential average spent to be much higher than in 2019 would be driven by the saving issues of luxury spend that Chinese have done during COVID.

<unk> recorded during Covid I remind you around 30 to 40 billion per year of luxury personal will have not been spent so to kind of muscle around the $100 billion.

Jacques Thel: Secondly, we should not forget about that, and we are seeing that in effect already the potential average spent to be much higher than in 2019 would be driven by the saving issues of luxury spend that Chinese have done during COVID, during COVID, every menu around 30 to 40 billion per year of luxury personal will have not been spent, so it's a kind of mass of around 100 billion which has been spent, and clearly this is why we are seeing such a level of very high average spent in place per shopper in the back, and hopefully we will see that in Europe in the coming months. Clearly, in terms of management for the recovery to develop the air capacity instrument, and we are seeing and forcing a nice increase month after month, a couple of months, both in Europe and in effect, as you can see in this slide.

Which has been spent and clearly this is why we're seeing such a level of very high average trades increased pressure groups.

Speaker 1: During COVID, I remind you, around $30 to $40 billion per year of luxury personal will have not been spent. So it's a kind of mass of around $100 billion which has been unspent. And clearly, this is why we are seeing such a level of very high average spent increase per shopper in the back. And hopefully, we will see that in Europe in the coming months.

And hopefully we see that.

In Europe in the coming months.

Really.

In terms of the.

Men and moved to <unk>.

So the way to develop the asset.

<unk>.

Key element and we are seeing in full swing.

Speaker 1: Clearly, in terms of management for the recovery to develop air capacity in this G element, and we are seeing and foreseeing a nice increase month after month.

Have a nice increase months after launch.

George Bush in Europe into your thought.

As you can see slide <unk>.

As I was mentioning capacity to get to the guide would be Japan Korea, Singapore, almost you live yet now relate back to where you want to travel.

Speaker 1: couple of points, both in here, opening the attack. As you can see, there's a slide. Obviously, either I was mentioning.

You attempted to go there because you can do it straight away where in Europe in order to get your reserves couple of months and therefore really two plan, which more which is again, something which will continue to play but probably.

Speaker 1: capacity to get a visa to go to Japan, Korea, Singapore is almost immediate now in the tax when you want to travel.

Speaker 1: You're attempting to go there because you can do it straight away, wearing your up.

Vanish.

Jacques Thel: Obviously, as I was mentioning, capacity to get a visa to go to Japan, Korea, Singapore is almost immediately at now in the back, so when you want to travel, you are tempted to go there because you can do it straight away, where in Europe, in order to get your visa it's a couple of months, and therefore you need to plan much more, which is again, something which will continue to play, but probably which will vanish, and we say in the coming months, just because the countries in Europe are reopening visa center one after one in China, and therefore easing the process in order to get those visa. So, as I was mentioning, China is for the next, I would say, a couple of quarters, clearly the speed option for Global Blue to continue to increase the profitability of the book.

In the coming launch just because.

Speaker 1: in order to get your visa, a couple of months, and therefore you need to plan much more, which is again, something which will continue to play, but probably which will vanish, and we'll say in the coming months, just because the countries in Europe are reopening visa center one after one in China. And therefore, by easing the process, you know, they do get those visa.

The countries in Europe and are reopening visa center one after one.

Yeah.

China, and therefore easing the process.

Who get visa.

So as I was mentioning joined the ease for the next.

I would say a couple of quarters.

Clearly the.

Still there.

<unk> continues to be true.

Speaker 1: So as I was mentioning, China is for the next, I would say a couple of quarter clearly.

Our visibility of the book.

If I remind you what the.

I'm, just saying a couple of weeks ago.

Today.

Speaker 1: still an option for global blue to continue to increase the profitability of the group. If I remind you what the whole time was saying a couple of minutes ago today in the Q1 we are reaching an annualized bid of 141%, which

Yeah.

Q1 that we are reaching an annualized.

EBITDA of 141%, which will include.

Recovery for Chinese.

38% and on the right of the chart you have a sensitivity.

Jacques Thel: If I remind you what I have found the same a couple of minutes ago, today in the Q1, we are reaching an annualized 80% of 111%, which include recovery for China's travel of 38% and from the right of the chart, you have a sensitivity, which based on a different level of recovery of Chinese, but the same level of recovery for the TFS and ADPS on the other national ADT would end up to those simulations. So, if I take an example, at 100% of recovery versus 38 into one of China, Chinese would end up at 100 and 95 million and even not enough for the 29, which is why we are mentioning that at 105% of recovery for the revenue from Chinese would be exceeding 200 million for the V8 and just reminding everyone at the top of our profitability before COVID, which was the calendar year 2019, we reached 100 and 87 million.

Based on the different level of recovery of Chinese, but at the same level of a.

Speaker 1: that include a recovery for Chinese traveler of 38%. And on the right of the chart, you have a sensitivity which based on a different level of recovery of Chinese, but the same level of recovery of the TFS and AVPS on the other nationality.

Recovery of the GFS and the EPS on the older nationality.

It would end up too.

Those simulations so if I take an example.

100% recovery versus 38 in Q1 of China Chinese.

$195 million.

Speaker 1: would end up to those simulations. So if I take an example at 100% of recovery versus 38 into one of China, Chinese would end up at 195 million.

With a margin of $43 nine which is why we are mentioning that at 105% of recovery there.

Revenue from Chinese we would be achieving 200 million of EBITDA and just.

Speaker 1: and with a margin of 3.9.

Speaker 1: Which is why we are mentioning that at 105% of the

Remind you and everyone.

At the top of our profitability before Covid, which was looking into year 2019.

Speaker 1: We cover the weathering from Chinese. We will be receiving 200 million for the DBA. And then just.

100 and.

87 million, so definitely the parent.

Speaker 1: reminding everyone at the top of our profitability before COVID, which was the calendar year 2019, we reached 100 and 87 minutes. So definitely the current but progressive recovery of Chinese shoppers will help us to go to this type of level pre-covid

But progressive recovery of the Chinese shoppers.

Bruce.

Due to these type of levels pre COVID-19.

No.

Okay.

Obviously the next question is.

So the next <unk>.

21 months.

The Chinese we drive.

Jacques Thel: So, definitely the current but progressive recovery of Chinese shoppers will help us to go to this type of level pre-covid question in the end. And obviously, the next question is perfect, so for the next 18 months, 21 months, Chinese will drive the global growth question is what next? Well, what next is really what is important or, you know, as important, which is what are the long term driver for global blue and just to remind you that we have four.

First question is what next well my next is really what is important.

Speaker 1: And obviously, the next question is perfect.

As important which is what are the long term driver.

Speaker 1: 18 months, 21 months, the Chinese will drive a global blue ghost. The question is, what next? Well, what next is really what is important or...

And just to remind you that we have for the first one is the dynamic of the.

Jacques Thel: And obviously, the next question is perfect, so for the next 18 months, 21 months, Chinese will drive the global growth question is what next? Well, what next is really what is important or, you know, as important, which is what are the long term driver for global blue and just to remind you that we have four. The first one is the dynamic of the overseas luxury market, which is driven by by basically two component one, the emerging market middle class and the other one, which is the increase of networks and digital and just to remind you that on the period of 10 years before COVID, if the luxury market was increasing by 5.8% the GFS market has increased by 10%, which is explained by this high correlation of the GFS with the increase of little class.

Oversee luxury market, which is driven by two components.

Speaker 1: you know, as important, which is what are the long term drivers for global blue. And just to remind you that we have four

Emerging market leadership for us.

The other one which is an increase over our networks individuals and.

Speaker 1: The first one is the dynamic of the sea luxury market, which is driven by basically two components. One, the emerging market middle class.

Just to remind you that.

On the period of 10 years before Covid.

Actual market was increasing by five 8% the GFS market has increased by 10%, which is explained by the high co relation.

Jacques Thel: The first one is the dynamic of the overseas luxury market, which is driven by by basically two component one, the emerging market middle class and the other one, which is the increase of networks and digital and just to remind you that on the period of 10 years before COVID, if the luxury market was increasing by 5.8% the GFS market has increased by 10%, which is explained by this high correlation of the GFS with the increase of little class. And if you believe in this little class in emerging country, which are traveling, which are shopping abroad, you can understand it's a positive global look, but also high networking digital because in our business around 25% of the spend is done by 1% of the traveler.

Speaker 1: and the other one, which is the increase of ad networks individual. And just to remind you that on the period 10 years before COVID, the luxury market was increasing by 5.8%.

Of the GFS.

The early <unk>.

Increase of video, Josh and if you believe as leader charged from emerging country.

Speaker 1: the GFS market has increased by 10%, which is explained by this high correlation of the GFS with the increase of leader class and if you believe in this leader class in emerging countries.

Which actually which are shopping abroad, you can understand why I suppose it will go to Luke but also heightened networking did it all because in our business around 25% as expenses down by 1% of the toddler.

Speaker 1: which I probably which I show up in the road, you can understand what its a positive global look, but also high networking digital because in our business around 25% of the spend is done by 1% of the traveler. This is people who are spending 50,000, your career and this other one which are the bread and butter of a luxury market.

These people were spending 50000 per year and these are the ones, which are the bread and butter regulatory.

Jacques Thel: And if you believe in this little class in emerging country, which are traveling, which are shopping abroad, you can understand it's a positive global look, but also high networking digital because in our business around 25% of the spend is done by 1% of the traveler. This is people who are spending 50,000 euro per year and these are the ones which are the bread and butter for the consumer. It's around the capacity of the group to open new country.

Second writer.

<unk>.

The capacity of the group too.

Opened new country.

Again.

10 years before Covid, we were capable.

<unk> set a new country.

Speaker 1: It's around the capacity of the group to open new country. Again, 10 years before COVID, we were capable to open seven new country, which contributed at the time to 2% of SIS growth during these 10 years.

Which contributed at the time, two 2% of SaaS Bruce.

Jacques Thel: This is people who are spending 50,000 euro per year and these are the ones which are the bread and butter for the consumer. It's around the capacity of the group to open new country. Again, 10 years before COVID, we were capable to open 7 new countries, which contributed at the time to 2% of SIS growth during these 10 years. And just to remind you that today, on 180 countries, which are the deaths of the VAT, we are covering today only 72 of them with the VAT Research Team, and only 43 where we operate.

This 10% than 10 years, and just to remind you that today 180 <unk>.

Jacques Thel: Again, 10 years before COVID, we were capable to open 7 new countries, which contributed at the time to 2% of SIS growth during these 10 years. And just to remind you that today, on 180 countries, which are the deaths of the VAT, we are covering today only 72 of them with the VAT Research Team, and only 43 where we operate. So, more new countries, and therefore, it's a component of our little tongue goals.

Trees, which are adopted.

Deogee.

We are covering today 72.

Because the <unk> scheme.

Speaker 1: And just to remind you that today, on 180 countries which have adopted VAT, we are covering today only 72 of them with a VAT reference scheme, and on which only 43 where we operate. So more new countries, and therefore, it's a component of our little triangle.

And on which only 43.

Upwards, so more new countries and therefore, it is a component of our long term groups.

Third one on the tax rate, which is important and which is also important for the year payment business as we have is digitalization.

Just the slide.

It will regress here to remind you that.

Speaker 1: The third one on the tax screen, which is important, and which is also important for the pendant disney as much we have is digitization. And just the slide on the graph here to remind you that.

We still have the penetration which is around 50%.

Jacques Thel: So, more new countries, and therefore, it's a component of our little tongue goals. The third one, on the text screen, which is important, and which is also important for the independent business we have, is digitization, and just the slide, or graph here, to remind you that we still have a penetration, which is around 50%, I think, when you take 100% of energy, volume of business, and you see how much has been refunded, only 50% of that has been refunded.

When you take 100% energy boom.

Most business and received how much has been refunded only 60% of that has been recently because of.

Jacques Thel: The third one, on the text screen, which is important, and which is also important for the independent business we have, is digitization, and just the slide, or graph here, to remind you that we still have a penetration, which is around 50%, I think, when you take 100% of energy, volume of business, and you see how much has been refunded, only 50% of that has been refunded. Because falls have not been issued in the store, or because people, and not the time at the airport, that is it, and the refunded their form.

Speaker 1: We still have a penetration which is around 50%. When you take 100% of energy boom.

That's not the issue the store or because people and most of the time at the airport.

Speaker 1: volume of business and you see how much has been refunded, only 60% of that has been refunded.

And physicians.

Therefore, but at the end.

Penetration is a key driver for us.

Speaker 1: I've not been issued in the store or because people and not the time at the airport to the airport and the official airport, but at the end penetration is a key driver for us.

Digitalization means looser experience less friction which increase basically.

<unk>, probably see a consumer to use tax rate.

Jacques Thel: Because falls have not been issued in the store, or because people, and not the time at the airport, that is it, and the refunded their form. But at the end, penetration is a key driver for us, because digitization means a smoother experience, less friction, which increases, basically, the probability of consumer to use tax rate. Two figures to illustrate that, when you look to this success ratio of 150%, as I was mentioning, when you look to digital country, anywhere you have a validation, where you have a digital validation through a kiosk, we have a success ratio of 65%, where as a non-digital country, it's 42%.

Configured to illustrate that.

Speaker 1: because digitalization means a smoother experience, less friction, which increase basically the probability of consumer to use tax rate. To figure this out, when you look to the success ratio of 150% as I was mentioning, when you look to digital country, anywhere you have a validation where you have a digital validation through a chaos, successful fluffy for example.

When you look to the success ratio of a 150% as I was mentioning when you look to digital countries.

Jacques Thel: But at the end, penetration is a key driver for us, because digitization means a smoother experience, less friction, which increases, basically, the probability of consumer to use tax rate. Two figures to illustrate that, when you look to this success ratio of 150%, as I was mentioning, when you look to digital country, anywhere you have a validation, where you have a digital validation through a kiosk, we have a success ratio of 65%, where as a non-digital country, it's 42%.

Where you have a validation where.

You have a digital validation towards Joseph we have the success ratio was 53%, whereas non digital country. It's 42%. So digitization is an easy brackets subject that we work on.

In order to also there contribute more.

Speaker 1: whereas in non-digital country it's 42% so

Serge in store in the past 10 years before Covid, which contributed to.

Speaker 1: digitization is an easy rocket subject that we work on in order to also there contribute to more sets in store.

<unk>, 2% and it's more or less the same in the <unk>.

<unk> business grew in the GCC business less cash more curated job means more opportunity to propose a decision and therefore the opportunity to grow the business.

Speaker 1: in the past 10 years before COVID, which contributed to 2%. And it's more or less the same in the EVPS business or in the DCC business. Let's cash more credit card means more opportunity to propose a DCC and therefore more opportunity to go to this.

Jacques Thel: So digitization is an easy rocket subject that we work on, in order to also, there, contribute to more sales in store, in the past 10 years before COVID, which contributed to 2%. And it's more or less the same in the EVPS business, in the DCC business, less cash, more credit card means more opportunity to propose a DCC, and therefore more opportunity to grow the business. Last but not least, thanks to our digital situation into the feedback, we are now exposed to the online market, and thanks to our two company sheepup and the effect, which are playing in this online world, we would benefit to the long-term growth order of the e-commerce 10% as you know, even though today, a little bit less positive, but after a very big positive wave.

Not least thanks to our diversification into the returns that we are now exposed can be.

In line with the market.

Thanks to our two companies <unk> and <unk>, which are placed in this online world. We replenish it to the long term growth driver of the ecommerce.

Speaker 1: Last but not least, thanks to our dedication into the retail tech, we are now exposed to the online market. And thanks to our two companies, Shepup and Zigzag, which are playing in this online world, we will benefit to the long-term growth driver of the e-commerce 10%, as you know, even though today a little bit less post-COVID, but after a very big positive wave.

10% as you know.

Even though today, a little bit less post COVID-19, but after a very big positive wave.

Last but not least.

Just to remind you that we benefit from the inflation luxury companies are increasing their price at the level, which is higher than these ratios will here you have the <unk>.

Thousand 23 price level versus 2019, so if our costs are increasing more or less at the level of inflation slightly less.

Speaker 1: Last but not least, just to remind you that we benefit from the inflation and luxury company are increasing their price at the level which is higher than the inflation. So here you have the 2023 price level versus 2019. So if I have cost to increase more or less at the level of inflation likely less.

So 20% if we look back to 2019 the lucky.

Jacques Thel: Last but not least, just to remind you that we benefit from the inflation, luxury company are increasing their price at the level which is higher than the inflation, so here you have the 2023 price level versus 2019, so if our cost are increasing more or less at the level of inflation, it's likely less, so 20% if we look back compared to 2019, the luxury goods price at the increase of 27% and as our business is based on the percentage of the volume that our retailer is doing, we have a positive equation moving from that. And really last, last but last, I would say, to remind you that we have a defensive play, because if you look back to the last recession in 2008-2009, we are capable to post that sales in store performance, whereas the luxury in the federal industry were negative.

Luxury goods prices increases of 27%.

Our business is based on the percentage of volume that hurt retailer as rig we have a positive equation.

Speaker 1: 20% if we look back compared to 2019, the luxury goods price had increased of 27% and an ounce.

And really last last book loss.

I would say to remind you that.

Speaker 1: our business is based on the percentage of the volume that our retainer is doing. We have a positive equation for that.

Additionally, <unk> play.

If you look back to the last recession and approaching 2008 2009, we were capable to boost flat sales in store.

Speaker 1: And really last, last but last, I would say to remind me that we have a different things played, that is, if you look back to the last.

Performance, whereas the luxury and the total industry, where negative why that because again, we come back to that.

Speaker 1: recession in 2008 to 2009. We were capable to post that says in store performance, whereas the luxury in the Southern industry were negative. Why that? Because again, we come back to the high network in the visual, which are less touched by recession and which are an important part of this this in focus on more than than the the rupture.

Net worth individuals, which are less touch very recession and reach.

An important part of our business in Polk also more than than the road shows.

So in summary.

For this Q1 very solid performance, both in terms of revenue growth and profitability and acceleration of visa adjusted EBITDA.

Jacques Thel: Why that? Because again, we come back to the high network in the world, which are less touched by recession, and which are an important part of our business, in focus on more than the reduction. So in summary, for this Q1, very strong performance both in terms of revenue growth and profitability and acceleration of this adjusted ABBA, more or less 20 million per quarter, which showed the impact of the reopening of China in particular in the last two quarter.

More or less 20 million per quarter, which which show the impact of.

Speaker 1: for this Q1, very strong performance, both in terms of revenue growth and profitability, and acceleration of this adjusted ABDA, more or less 20 million per quarter, which showed the impact of the reopen of China in particular in the last two quarter.

The reopening of China in particular to quarter on that basis.

Jacques Thel: So in summary, for this Q1, very strong performance both in terms of revenue growth and profitability and acceleration of this adjusted ABBA, more or less 20 million per quarter, which showed the impact of the reopening of China in particular in the last two quarter. On that basis, if from 38% recovery, we are able to reach 105, we could reach the 200 mark in terms of adjusted ABBA, which is an important mark for Global Blue. And beside that, very comfortable to re-extress that we have strong long-term driver. And we are quite well positioned in terms of both recession and hedge, again, the risk of inflation.

38% recovery.

I prefer to reach <unk> hundred five we could reach the 200 million Mark in terms of adjusted EBITDA, which is an important mark will global blue and besides that very comfortable to reexpresses that we are still long term driver.

Speaker 1: On that basis, if from 38% recovery, we are able to reach 105, we could reach the 200 mark in terms of adjusted ABDA, which is an important mark for global blue. And besides that, very comfortable to re-express that we have a strong long-term driver, and we are quite confident that we are going to reach 100. And we are very confident that we are going to reach 100.

We are quite well positioned in terms of booths recession and hedge again. This organization. So thank you again for the listening and as usual.

Jacques Thel: On that basis, if from 38% recovery, we are able to reach 105, we could reach the 200 mark in terms of adjusted ABBA, which is an important mark for Global Blue. And beside that, very comfortable to re-extress that we have strong long-term driver. And we are quite well positioned in terms of both recession and hedge, again, the risk of inflation. So thank you again for the listening.

We will take the question in meetings in the coming days. Thank you.

Speaker 1: well positioned in terms of both recession and hedge again for this

Yeah.

Okay.

Speaker 1: So thank you again for the listening, and as usual.

[music].

Speaker 1: We will take a question and meeting in the coming days. Thank you.

Jacques Thel: So thank you again for the listening.

Operator: And as usual, we will take a question and meeting in the coming days.

Operator: Thank you.

Q1 2024 Global Blue Group Holding AG Earnings Call Pre Recorded

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