Q2 2024 Global Blue Group Holding AG Earnings Call - Pre-Recorded
Good morning, Good afternoon, I am <unk> CEO of global Blue and then with oxygen before.
CFO.
The group and we will commence today Q2.
Speaker 1: Good morning, good afternoon. I am Jacques Therne, CEO of Global Blue, and I'm with Roxanne Dufou, the CFO of the group. And we will commend today the two figures for the financial year, 23, 24.
Figures for the financial year.
'twenty three 'twenty four.
Before opening the floor to giving the floor to <unk>, Let me give you an overview of this presentation.
First of all you will see that Q2 and H one financial results have shown a significant increase both in terms of growth and profitability.
Speaker 1: Before letting the floor to give the floor to Oxan, let me give you an overview of this presentation.
And this is driving a continuous improvement of the annualized quarterly adjustment EBITDA to $142 million.
Speaker 1: First of all, you will see that Q2 and H1 financial result have shown a significant increase both in terms of growth and profitability.
Oxide will come back in detail on that.
Speaker 1: And this is the driving, a continuous improvement of the annual RSCOTR, the adjustment ABDA to 140, 2 million, of some will come back in detail on that.
Second in November Global Blues concluded two important capital structure transaction. The first one whereby tencent have agreed to invest $100 million in global blue consisting in 50% primary and 50% secondary for total stake of seven six.
Speaker 1: Second, in November , global blue has concluded an important capital structure conduction.
Speaker 1: The first one, whereby 10 cents have agreed to invest 100 million in global blue, consisting in 50% primary and 50% secondary for a total stake of 7.6%.
<unk> percent. This is significant because one its validate our leadership second it reflects the confidence.
In the ongoing.
Travel recovery in particular.
Speaker 1: This is significant because one, it's very date, our leadership. Second, it reflect the confidence.
From Chinese and final needs to support the delivery of the deleveraging of the company.
Second transaction.
Speaker 1: Indian ongoing travel recovery in particular from Chinese. And finally, it supports the delivery, the delivery of the company.
Is the refinancing of all of our debt.
Which end up with a new facility over 600.
$10 million.
Speaker 1: Second from the action is the refinancing of all of our debt, which ended up with a new facility of the 600.
Quantify a term loan b and CFO of $97 5 million and they also had significant because each scheme.
Extend the maturity of our debt too.
Speaker 1: 10 million qualified term known B and a new FTF of 97.5 million and they also it's significant because it extend the maturity of our depth to 2013.
2013.
Last but not least.
Following the reporting of Q2.
We are pleased to reiterate our financial guidance of adjusted EBITDA for the fiscal year 'twenty three 'twenty four.
Speaker 1: Last but not least, following the reporting of Q2, we are pleased to reiterate our financial guidance of the adjusted ABDA for the fiscal year 2324, 245, 265. So with this overview in mind, I now give the floor to Oxand for data presentation of the Q2 financial year.
$245 265, so with this overview in mind I now give the floor.
<unk> for a detailed presentation of the Q2 financial year.
Thank you.
And you saw the Sasol Goodbye Blue and I will take you through the group's financial performance for the second quarter and healthier.
And on the surface of September 2020.
Speaker 2: Thank you Jacques. I'm Roxanne Dutro, the CFO of Global Blue, and I will take you through the group's financial performance for the second quarter and half-year period, and did on the 30th of September 2023. Again, as a reminder, our financial year runs from April to March, hence this is our Q2 and H1 results announcement. Our reconciliation to the nearest ISOS matrix are included into the appendix.
And then as a reminder of our financial year runs from April to March. Hence this is our Q2 and H one.
A reconciliation to the nearest isi's metrics are encouraging.
Move to slide eight the adjusted.
Adjusted P&L relate to two of our second quarter.
He is here to report a solid start to the year, we still can progressed against all of our key metrics TFS.
TFS in ABP S reported 17 stores increased by $2 million, an increase of 42% versus Q2 last year.
Speaker 2: Let's move to slide 8 for the adjusted piano related to our second quarter.
Speaker 2: The app is here to report a solid start to the year. We see if you can progress against all of our climate.
Copel then you only increased by 38% to 113.
Speaker 2: TFS and EVPS support its self-sistance increased by 2 billion and increased by 42% versus Q2 last year.
Million Euro that's just at the same period last year.
Turning to adjust to the game, we have doing that as soon as you can see Portland to $47 2 million Euro versus $25 8 million you hold in the same period last year. Finally, we recorded an adjusted net income for the group of 14 million again, a significant improvement versus negative two.
Speaker 2: Group revenue increased by 38% to 113 million euros, that is the standard life.
Speaker 2: Turning to address CDBDA, we have delivered a significant improvement to 47.2 million euro. There's just 25.8 million euro in the center of last year. Finally, we recorded an adjusted net income for the group of 14 million. Again, a significant improvement versus negative of 2.1 million euro in Q2 last year. Let's turn now to slide 9 to go into the revenue performance.
One <unk> in Q2 last year.
Let's turn now to slide nine to go into the revenue performance.
Here you can see that we have a solid start to the year with strong growth across the business. We delivered a 38, 2% increase in her new versus last Joe Albi.
I won't go into the detail at that division on the following slides, but you can see here for PFS 80 per cent Etsy is that they are contributing to a further 31 million you're holding her venue in Japan with a further one seven meal yours coffee effect from TFS, new countries and cheaper acquisitions reported in there.
Speaker 2: Here you can see that we have a solid start to the year with strong growth across the beginning.
Speaker 2: We delivered 38.2% increase in revenue versus last year. I will go into the detailed pair of division on the following slides, but you can see here for TFS, ADTS and RTS that they are contributed to a further 31 million euro in revenue in the period with a further 1.7 million euro scope effect from TFS new countries and cheaper pack positions reported under air.
Yes.
We then.
One 7 million you will impact related to the FX, which gets us at the end to a 132 million you or a perennial in kitchen in Q2 Bcf. That's just 82 million in the same tired less gel.
Speaker 2: We then have 1.7 million euro impact related to the effects, which get us at the end to a 113.2 million euro of revenue in Q2 this year, the US 82 million in the same period last year. Turning now to the revenue performance.
Turning now to the revenue performance by Division.
Nothing with TFS accounting for 76% of corporate revenue in Q2 this year.
Same thing the strong performance with an increasing revenue of 38% on a reported basis to $86 2 million.
Speaker 2: Starting with TFS, accounting for 76% of group revenue in Q2 this year.
On a like for like basis revenue in Continental Europe increased by 28, 5% to 75 million Youll, while revenue in Asia Pacific increased by 155% to 11.2 million.
Speaker 2: The FF's deliver the strong performance with an increase in the volume of 38% on the reported basis to 86.2 million euros.
Speaker 2: On a life-or-like basis, Hovernure Inc. has increased by 28.5% to 75 million euro, while Hovernure Inc. has increased by 155% to 11.2 million euro.
This strong performance reflects the ongoing recovery across our origin nationalities with the reopening of Chinese border in China January 2023, being the key driver of the revenue improvement, especially in Asia, where self install of surpass for mainland China has already recovered to 109%.
Speaker 2: The strong performance reflects the ongoing recovery across all origin nationalities with the reopening of Chinese border in January 2023, being the peace driver of the revenue improvement, especially in Asia, where self-install of shoppers from mainland China has already recovered to 109% versus 2019. Jacques will cover this in more detail later.
That's a 2019.
Zach will cover this into more detail later.
Turning now to EPS.
ADP has accounted for 18% of group revenue in Q2 this year.
This division also delivered a strong performance with an increase in home when you have such a 2% on a reported basis to $20 2 million, reflecting a strong performance across both business segments on a like for like basis for the new NSX solution increased by 17, 9% to $10 4 million while revenue in the acquiring business.
Speaker 2: ADPS accounted for 80% of group revenue in Q2 this year. This division also delivers the strong performance with an increase in revenue of 32% on a reported basis to 20.2 million euro, reflecting a strong performance across both business segments. On a light-for-like basis revenue in a solution increased by 39% to 10.4 million euro while revenue in the acquiring business increased by 42% to 10 million euro.
<unk> increased by 42% to 10 million you'll.
As with TFS any guess is also benefiting from the ongoing recovery in the travel industry.
Turning now to EPS.
<unk> accounted for 6% of group revenue in Q2 this year.
Speaker 2: As with TFS, AVPS is also benefiting from the ongoing recovery in the travel industry.
As a reminder, PFS reflect the acquisition of Zigzagging March 'twenty, one consolidation of your good I instead of or in 'twenty, one and the acquisition of ship up in November 22 here you can see at yes revenue increasing by 65% on a reported basis to $6 7 million in Q2 this year.
Well there was a strong organic growth of 79% from Zig Zag, and you called out and an additional $1 1 million from the acquisition of ship.
Turning now to slide 13 for the very strong issued since two ammonia.
Speaker 2: There were strong organic growth of 39% from zigzag and yucuda and an additional 1.1 million euro from the acquisition of ships.
This is here to bridge detailing a number of items to consider between the issue of seats to the reported revenue here. We are showing the comparison, that's just calendar year 2019.
Speaker 2: Turning now to slide 13 for the bridge from issue 6 to revenue.
We all had to 124% with Golar. He thought he should self install in TFS and even kit. The issue is presented on a like for like basis, meaning at constant upon itself.
Speaker 2: This is here the bridge detailing a number of items to consider between the issue 6 to the report is revenue. Here we are showing the comparison versus calendar year 2019.
When we consider the scope effect one for the U K.
Speaker 2: We are at 124% recovery for issues facing store in TFS and AVTF. The issue TFS is presented on the light for like basis, meaning at constant parameters. Then we consider the scope effect. One for the UK related to the abolition of the tax reshoping scheme in January 2021. And as a reminder, prior to the abolition of the scheme, the UK accounted for 14% of good TFS report TFS, which is no longer the case here.
The abolition of the tax free shopping scheme in January 'twenty, 'twenty, one and as a reminder, our payout to the abolition of the scheme. The U K accounted for 14% of group TFS pretty positive, which is no longer the case here.
The impact from the UK British monkeys, and coupons, then you'll have a further impact of five pumps due to the FX translation and one point related to the discontinuation of our GFS business in her shop, which should keep us at the end of 100% recovery in you should see in TFS and EPS reported one with TFS at 94% and 80 P. S at one.
Speaker 2: The impact from the UK Abolitionment is 18 points, then you have a further impact of five points due to the effects translation and one point related to the discontinuation of our TFS business in Russia, which achievers, at the end, 100% recovery in issued fees in TFS and ADPS reported one, with TFS at 94% and ADPS at 130%.
130%.
We then have the refund ratio as a reminder, once the transaction is issued to traveler has to validate the trucks before them and get the refund of dysfunction kinds of transactions as part of the reported seats, which triggers the hernia today do you have to refund ratio is slightly lower than 2019, but it's mainly due to the.
Speaker 2: We then have the refund ratio as a reminder, once the transaction is issued, the traveler has to validate the tracks performed and get the refund. At this point in time, the transaction sits part of the reported system, which triggers the reunion. Today, the actual refund ratio is slightly lower than 2019, but it may need you to the nationality mixes.
And then he can mix effect.
Then there are transactions completed a failure.
This is swap transactions are issued in the quarter and validated and refunded in the following quarter.
This gets us to a 102% recovery for completed six inch T. S. S. N V P S.
Speaker 2: Then there are transactions completed of period. This is where transactions are issued in a quarter, but validated and refunded in the following quarter.
Then we have some leakage from these completed six to the reported revenue.
For PFS, 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. We didnt have an increase in average spend which means a higher rate of VAT.
Speaker 2: This gets us to a 102% recovery for completed C in TFS and AVPS.
Speaker 2: Then we have some leakage from this completed system to the 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. We then have an increase in average 10, which means the higher rate of that that is refunded and therefore a lower take a plate for the baby.
We funded and therefore, a lower take a plateful goodbye.
Second we have the ADP is consistent effect, where the ADP as business, which is a lower margin is growing faster than Texas.
These give us 87% reported revenue recovery for ADP SNCF S. Finally, we have 5% contribution for MTS, which gave US 92% revenue recovery for the group.
Speaker 2: Second, we have the AVPS-nacess-exact, where the AVPS business, which is a lower margin, is going faster than T.S.
Speaker 2: These give us 87% reported revenue recovery for AVPS and TFS. Finally, we have 5% contribution for RTS, which give us 92% revenue recovery for the growth.
Turning now to slide 14 for details on adjusted EBITDA.
The significant improvement in revenue together with the ongoing focus on the cost base led to a 80% 83% increase in adjusted EBITDA in Q2 this year.
Speaker 2: Turning now to slide 14 for details on adjusted details.
We have a drop through of revenue drop through at 68% and I would say acute so did he say here.
Speaker 2: The significant improvement in revenue together with the ongoing focus on the cost base led to a 33% increase in address TVVA in Q2 this year.
We begin with our I. Just you did you gave which was $25 8 million you who last year in Q2 lecture.
Speaker 2: We have a drop-through, a revenue drop-through at 68% and I will take you through the details here.
And then if you look at the additional contribution of each business contribution being the margin down in revenue minus to imagine that that would tie up and plus we have a further 25 million in Q2 this year.
Speaker 2: We begin with our address CDVV, which was 25.8 million euro last year, in Q2 last year. And then if you look at the additional contribution of each business, contribution being the marginal revenue minus the marginal direct variable cost, we have a further 25 million euro in Q2D.
When considering $2 5 million your fixed cost the whole 0.5 media of scope effect and zero point for me Daniel of a foreign exchange impact the group deliver an adjusted EBITDA of 47 2 million with an increase in adjusted EBITDA margin of 10 points to 42%.
Speaker 2: then considering 2.30 million euro of fixed cost. They hope on 5 million of scope effect and they hope on 4 million euro of foreign exchange impact. The group delivered a majesty division of 47.2 million euro with an increase in majesty division margin of 10 points to 42%.
Turning now to slide 15 for subs obtained on adjusted EBITDA.
Here, we are showing the annualized adjusted EBITDA based on the quarterly recovery.
To note. The yearly extrapolation include PFS 80 per cent Etsy as performance in the values quarter reply to you previously we had excuse me that's it from this calculation now. It's included you can see here is T V and consistent improvement in the annualized quarterly adjusted EBITDA now.
Speaker 2: Terminal to flight 15 for further detail on adjusted video.
Speaker 2: Here we are showing the annualized address CDBGA based on the quarterly recovery.
Speaker 2: Just to note, the yearly extrapolation includes TFS, AVTS, and RTS performance in the values quarter applied to the year.
Based on the Q2 recovery the annualized quarterly adjusted EBITDA. He's at 142 million Euro. This led to a significant improvement in margin from 27% in Q2 last year to 34, 8% in Q2 this year.
Speaker 2: Previously we have excluded that is from this calculation. Now it's included.
Speaker 2: You can see here a TV and consistent improvement in the annualized quarterly adjusted
Speaker 2: Now based on the Q2 recovery, the annualized quarterly address TVG is at 142 million. You're this has led to a significant improvement in modeling from 27% in Q2 last year to 34.8% in Q2 this year.
Now I will take you through the financial details for the first half of the year slide.
Slide 17.
We are showing the adjusted P&L for the first time softer yeah and again, we see the same positive trends as with the second quarter.
Speaker 2: Now I will take you through the financial detail for the first half of the year.
If they said Navy P. S reported self install increased by $4 5 billion, an increase of 55%. That's just H one less true.
Speaker 2: We are showing the adjusted P&L for the first half of the year and again we see the same positive trends as with the second quarter.
<unk> revenue increased by more than 50% to 208 million, you'll that's just 138 million last year.
Speaker 2: TSA is an AVPS reported self-installed, increased by 4.5 billion euros, an increase of 55 percent. There's just H1 last.
Turning now to address the bogey, we have been without the significant improvement to 75 in general.
Speaker 2: Proven you increased by more than 50% to 208 million, versus 138 million last year. Turning now to address to the VGA, we have delivered the significant improvements to 75 million.
That's just starting to point 6 million you're hearing the same tired lecture finding.
Finally, with an adjusted net income for the group of 16 mean annual as soon as you can see improvement versus negative $13 7 million in a ton less true.
Speaker 2: versus 32.6 million euros in the center of last year. Finally, we would put in an additional team that includes for the group of 16 million euros, the significant improvement versus negative 13.7 million euros in a trillion last year. Turning now to slide.
Turning now to slide 18.
Here similar to Q2, we are showing the detailed for each one where we achieved 170% increase in that just to give you get in each one of this year with a 61% revenue drop through in that just to give you give us just the same period last year.
Starting with our adjusted EBITDA at $32 6 million you hold last year.
If we look at the additional contribution of each business. We have a further 54 million you'll in each one of this year.
Speaker 2: Starting with our address CDBD at 32.6 million euro last year. If we look at the additional contribution of each business, we have a further 54 million euro in H1 this year.
And then <unk>.
<unk> 8.9 million annual fixed cost $1 6 million your scope effect and almost 1 million annual a foreign exchange impact the group delivered an adjusted EBITDA of 75 million with an increase in adjusted EBITDA margin of 20 points to 36%.
Speaker 2: Considering 8.9 million euro of fixed cost, 1.6 million euro of scope effect and almost 1 million euro of foreign exchange impact, the group delivered an adjusted DVD of 75 million euro with an increased in-adjusted DVD margin of 12 points to 36%.
Now moving to slide 19 for the D&A and net finance costs.
There has been a slight increase in adjusted EBITDA.
So $17 9 million Youre holding the failure on the annual basis, just give us a DNA of 36 million you all which is in line with our 200 out of Capex.
Speaker 2: Now moving to slide 19 for the DNA net silence course.
Speaker 2: There has been a slight increase in majesty the BDA to 17.9 million euros in the period. On the annual basis, these give us a DNA of 36 million euros, which is in line with our current level of capacity.
Then to the net finance cost cost increased by 0.8 million to 25 6 million, you'll and it just was mainly due to an increase in interest costs of 12 million you. All that's just last year due to an increase in interest rates from 281% to six points the whole five.
Percent associated with the senior debt and our revolving credit facility.
This was largely offset by the OCI finance costs decreasing by 11 million you and as a reminder, each one last year.
Impacted by the foreign exchange losses related to set the highest nights head equity transactions and the supplemental shall hold office and you keep that web denominated in USD, while global Blue reporting unit.
Now, let's move to slide 20 for an analysis of our cash flow statement.
I'll start and adjusted EBITDA of 75 million your whole and the level of Capex at about 18 million.
In the bed do you see the capex essentially related to technological developments.
Turning now to walking up walking capital.
Being in the peak period of Jeff has actually seen the first half of the year, we usually see and increasing our.
Walking capital during this period.
Speaker 2: turning out to working capital. Being in the peak period of TFS activity in the first half of the year, we usually see an increase in our working capital during this period. And as a reminder, the travelers that get three funds up front and about a month later, we collect the VAT from the merchant or the authority.
And as a reminder, the travelers they get refunds upfront and about two months later, we collect the V. T phone didn't have time to audio until Richie.
Yeah, and you can see that we had an outflow of $79 2 million for the period, but there will be a tail wind during the third quarter of our fiscal year.
The interest related to our senior debt for the last six months paid in May 2023, as also went back into cash flow by $19 6 million and finally, our net financial debt increased by $18 7 million you. That's just March 'twenty two 'twenty three.
Speaker 2: Here you can see that we have a node flow of 39.2 million euros for the period, but there will be a tailwind during the subquarter of our fiscal year.
Speaker 2: The interest related to our senior debt for the last six months paid in May 2023 has also impacted the cash flow by 19.6 million euro. And finally, our net financial debt increased by 18.7 million euro. There is just much 2023. Turn in now to slide 21 for the debt position.
Turning now to slide 21 for the debt position.
As of end of September of 2023, our net financial debt amounted to $568 5 million, you're introducing fashion question equivalents of almost 222 million you'll maybe it was the last knowing the recent evens I propose to them directly onto the next slide.
Speaker 2: As of end of September 2023, I will not financial debt amounted to 568.5 million euro, including cash and question equivalent of almost 222 million euro. Nevertheless, knowing the recent events, I propose to jump directly on the next slide.
As mentioned by Iraq in the introduction, we have recently completed a $100 million strategic investment form consent, what leading internet and technically the company didn't tend to agree to invest $100 million in global Blue common equity at a price of $5 five two loss per share.
Speaker 2: As mentioned by RAC in the introduction, we have recently completed a $100 million strategic investment from Tencent, a world-leading internet and technology company. Tencent agreed to invest $100 million in global blue community at the price of $5.5 per share, generally in line with the volume-weighted average price over the previous three months.
And they're highly in line with the volume weighted average price over the previous three months.
The common shares will consist of 50% primary common shares to be issued by global Blue the proceeds of which will be used to deliver rates of the company.
And 50% secondary common shares to be sold by affiliates of Sidoti I can start a coupe and south of manga or go back to the board and management.
Speaker 2: The Common Shares will consist of 50% primary Common Shares to be issued by Global Blue, the process of which will be used to deliver it to the company, and 50% secondary Common Shares to be sold by affiliates of CIVELEC and partner group, and certain members of Global Blue Board and Management.
This represents 18 2 million common shares in playing are now shipping Lebesgue Loopnet will be approximately seven 6% of the total issued shakopee Tal on the fully diluted basis upon completion of the transaction.
Speaker 2: This represents 18.2 million common shares in playing an ownership in global law that will be approximately 7.6% of the total issue to capital on a few-year-divitability basis upon completion of the transaction.
This agreement reflects confidence in the ongoing travel recovery and support the long term leverage target of below two five times net debt over I'd just T D.
Turning now to slide 23 for detail on the refinancing.
Speaker 2: This agreement reflects confidence in the ongoing travel recovery and support the long-term leverage target of below 2.5 times net debt over adjusted EBTA. Turning now to slide 23 for detail on the refinancing.
Our senior debt and revolving credit facility at the maturity date of August 2025 earlier. This month, we took the opportunity to renegotiate our senior debt to strengthen global blue balance sheet. The new agreement, which was signed on the 24th of November is comprised of a term loan of 600.
Speaker 2: Our say now that and revolving credit facility at the maturity date of August 2025. Earlier this month, we took the opportunity to really go shape our senior debt to strengthen global global ship. The new agreement, which was signed on the 24th of November , is comprised of a term loan of 610 million euro and a revolving credit facility of 97.5 million euro with maturity extended to 20.30.
10 million year old and the revolving credit facility of $97 5 million Youll with maturity extended to 2013 due.
The term loan as a valuable way to equal to where he bought for the failure.
There's probably a 500 basis sponge per annum, while the revolving credit facility as a variable interest rate equal to every ball plus a spread of 450 basis sponge behind them.
Speaker 2: The term loan has variable rate equal to a rebor for the period.
Speaker 2: plus a spread of 500 basis points per annum, while the revolving credit facility has a variable interest rate equal to a rebor, plus a spread of 450 basis points per annum. In that context, two public ratings have been issued to Goodbye Blues with Moody's and S&P, attributing B1 and B plus, respectively.
In that context to be preaching I've been issued two goodbye blues with Moody's and S&P.
Beauty, B, one and B plus respectively.
Turning now to slide 'twenty fall, which showed a pro forma net debt.
So this is he had a net debt position for each one as if the financing was in place.
Speaker 2: turning on to slide 24, which shows the performance map that
S T have been drawn and the Super mantle cell older fashion, he fully repaid that keep us with our gross financial debt of 610 million you're on a pro forma basis than we have 48 million of cash and cash equivalent.
Speaker 2: So this is here, the net debt position for H1, as if the financing was in place, with the RCAF and drone and the supplementary or older facility fully repaid, that leads us with a gross financial debt of 610 million or on a performance basis. Then we have 40, 18 million of cash and cash equivalent, which leads us at the end with a performance of 562 million euros.
And he was at the end with a pro forma debt of 562 million.
Turning now to slide 25.
The key takeaways.
First we are pleased to report on the so recovery with the significant increase in each one of her new off more than 50% to 208 million annual.
Speaker 2: turning now to slide 25 for the t-take away.
Second thanks to the strong revenue growth and ongoing management of the cost base. We are pleased to report a strong improvement in each one adjusted EBITDA to 75 million with an increase of 130% of that reported last year and with a revenue drop through of 61% and adjusted EBITDA.
Speaker 2: First, we are pleased to report a Soviet recovery with a significant increase in H1 revenue of more than 50% to 208 million euros.
Speaker 2: Second, thanks to the strong revenue growth and ongoing management of the cost-based, we are pleased to report a strong improvement in H1-adjusted EBTA to €75 million, with an increase of 130% of that reported last year, and with a revenue drop-through of 61% in adjusted EBTA.
On that basis, if we annualized the adjusted EBITDA based on the quarterly performance of our business that is an acceleration in each one at 142 million.
Speaker 2: On that basis, if we analyzed the adjusted BDA based on the quarterly performance of our business, there is an acceleration in H1 at 142 million euros.
We then have the 100 million dollar equity investment from consent, which validates our confidence in the ongoing travel recovery and support our deleveraging targets finally to further strengthen the balance sheet. The group refinance it's totally in that that's with the senior debt.
Speaker 2: We then have the $100 million equity investment from Tencent, with validates confidence in the ongoing total recovery and support our delivery during target. Finally, to further strengthen the balance sheet, the group refinance its total indebtance with a senior debt of 610 million euro and a revolving credit facility of 97.5 million euro in place until 23.
Of 610 million annual and the revolving credit facility of 97 5 million annual in place until 'twenty section.
So this concludes the financial section and I will now hand over to Zach to present, the latest trends and the long term growth driver for goodbye.
Thank you Roxanne, so let's start by the latest strange.
Speaker 2: So this concludes the financial section and I will now hand over to Jacques to present the latest trends and the long-term growth driver for global.
And namely October for the tax free shopping business.
So you see that.
October 2020, Three's broadly in line with Q2 with a like for like performance over 123%, which reflect one side a slight decrease of the recovery in Europe, that's hundreds and 15% and on the other hand strong momentum in APAC.
Speaker 1: So let's talk by the letter strains, and namely October for the taxisly shopping business.
Speaker 1: So you see that October 2023 is broadly in line with Q2.
Speaker 1: with a lack for like performance of the 123%, which reflect one side, a slight decrease of the recovery in Europe at 115%, and on the other hand, strong momentum in a pack at 147% versus 634% in Q2. If we go to the detail...
We returned 47% or 632% in Q2, if we go through the detail.
She's of Europe Continental Europe.
You can see that the performance of October reflect recovery of 91% of international shoppers, but an increase of the spend of 26%, which and we've reached 115% recovery in terms of sprint.
Speaker 1: Anadesis of Europe , continued Europe . You can see that the performance of October reflects a recovery of 91% of international shoppers, but an increase of the spend of 26%, which end up with this 115% recovery in terms of spend.
If we go to the detail bird nationality coming as a destination in Continental Europe, you see that if we exclude mainland China, which is on the course of recovery in Russia.
Speaker 1: If we go to the detail per nationality coming as a destination in continental Europe , you see that if we exclude mainland China, which is on the course of recovery in Russia for for the reason that we know the sub-total of all the other nationality is broadly in line in October . This is Q2 at 150, 4%.
For the reasons that we know the subdue tools all the other nationality is broadly in line in October of Ashish Q2 at 154%.
And I will have a detailed slide on the U S does it coming second but.
Important to note that we have bought back so the Gulf.
Countries at 241% in the <unk>.
Speaker 1: and I will have a detailed slide on the US in the coming second, but no important to note that we have a bond backs of the Gulf countries at 241 percent and the rest of the nationality are broadly in line with Q2.
Rest of the nationality are broadly in line with Q2.
If we look to China, and I will have they ever so slightly in the coming minutes, we see.
Slight acceleration at 52% in October which is 45% in Q2.
Speaker 1: If we look to China and I will have there also a slide in the coming minutes, we see a slight acceleration at 52% in October versus 45% in Kyoto.
A couple of slides in order to understand.
The U S shopper recovery.
And I say stay tuned to see that October schuh basically.
Speaker 1: Couple of slides in order to understand the US shopper recovery and assess the status. You see that October show, basically a very stable situation at 260% recovery versus two.
Very stable situation and 260% recovery versus 258% recovery in Q2, which translate one side an increase of 162% of recovery for the number of Cutler, but also an increase of the spent of 60% which ended up.
Speaker 1: 168% recovery into two, which translate one side an increase of 162% of recovery for the number of regular, but also an increase of the spend of 60% which end up to this 260% recovery in terms of
To this 260% recovery in terms of spend.
When we tried to detail.
Peru consumer type.
Performance of 210% to 60%.
You can see in the slide where we have basically.
Speaker 1: When we try to detail per consumer type,
Compare the consumer.
Speaker 1: of 260%. You can see in this slide where we have basically compare the consumer who are shopping in each of these periods. So H122, H22, H123 and H23, with the amount
Hoping each of these.
So H 122 to 'twenty two 'twenty three in Q3, 'twenty three with the amounts.
At the same person who has the same basketball number will spending in 2019, you can see that basically the more.
Actual events or wealthy you are the more you tend to increase youll spend too.
Speaker 1: that the same person with the same passport number was spending in 2019. You can see that basically the more affluent or wealthy you are, the more you tend to increase your spend.
To give you. An example, if we take Q3.
2023, you see that for consumer spending more than 20000 euros with global Blue.
Speaker 1: So I give you an example if we take 23, 2023, you see that...
The increase of the sponge is a multiplier of three times.
<unk> 2019, where if we look to the segment below afterwards.
Speaker 1: for consumer spending more than 20,000 euro with global blue.
<unk> are spending more than 3000 and less than 20000, you'll see that the multiplier is one nine and the rest I E. Below 3000 domestic player. There is below 2019 zero six so in average 60% increase with multi player.
Speaker 1: The increase of the spend is a multiplier of three times.
Speaker 1: the SUS 2019. Where if we look to the segment below, affluent.
Speaker 1: which are spending more than 3,000 and less than 20,000. You see that the multiplier is 1.9. And the rest, IE below 3,000, the multiplier there is below 2019 0.6.
One six.
But I think what is important too.
To see here is that the trend has been very very consistent including in the last quarter.
Speaker 1: So in average, that 60% increase is a multiplier of 1.6.
Sure.
As you see that the main figures are really stable.
Speaker 1: But I think what is important to see here is that the train has been very, very consistent, including in the last quarter. As you see that the main figures are really stable.
So in summary, the U S. We see no change in in particular for the more.
ICU networks individuals where the spend is still very strong.
If we turn now to the Chinese.
Speaker 1: So in summary, the US, we are seeing no change and in particular for the more the ICO and networks individual where the spent is still very strong.
The nationality of origin coming to Europe Continental Europe.
The nation, we're seeing that in October.
Speaker 1: If we turn now to the Chinese as a nationality of origin coming to Europe , continental Europe as a destination, we're seeing that in October a slight increase to 52% level of recovery versus 14, a five percent in Q2. And you can see on the right that this is translated a recovery of 39% in terms of...
Might increase.
52% level of recoveries versus 14, 5% in Q2 and you can see on the right that this is translated into a recovery of 13, 9% in terms of shoppers with an increased spend of 33% and you can get to.
52% tax re spent recovered.
Worst mentioned that.
Lead the.
Speaker 1: Shoppers with an increased spend of 33% ending up to 52% tax-re-spend recovery.
Linked to the lead time required for visa issuance, but also the absence of <unk>.
Group trouble until now.
Speaker 1: Worst mentioned that lead link to the lead time required for visa issuance, but also the absence of a group travel until now, we have seen that the international shopper recovery is below the air capacity, but those two rock blocks
We have seen that the international sharper recovery is below the air capacity, but those two road blocks should unwind.
I would say in the coming months, and particularly the group travel, which I expect it to return.
By the end of this calendar year or the beginning of next year.
Speaker 1: should unwind, I would say, in the coming months, in particular the group travel, which I expect in return by the end of this calendar year or the beginning of next year.
When we look to the same charge that I've shown to the U S for Chinese coming in Europe, you see that we are seeing the same elements. So I remind you send people with a certain number of buy sports who have shopped during the period shown here versus 2019, and there also we see lack of or.
Speaker 1: When we look to the same chart that I've shown to the US for Chinese coming in Europe , you see that we are seeing the same elements. So I remind you.
Again that the more we'll see.
I E. The one spending more than 20000.
Speaker 1: same people with the same number of passport who have shopped during the period shown here versus 2019. And there also we are saying like American that the more wealthy, I either want spending more than 20,000 are have a multiplier of spend versus 2019, which is the highest.
Or have a multiplier of spend versus 2019, which is the highest two five times in Q3, and then also we see a very strong consistency in the data.
The next in the last 18 months.
Speaker 1: 2.5 time in Q3 and they also we see a very strong consistency in the data in the next in the last 18 months
Turning now to APAC as a destination.
We see that October as showed a continuous increase.
Of the recovery at 147% versus 2019 versus 134% in Q2 and there also we are seeing very strong increase of the spent with 34% but.
Speaker 1: Turning now to a impact as a destination, we see that October have shown a continuous increase.
Speaker 1: of the recovery that 147% versus 2019 versus 134% into two. And they also we are seeing a very strong increase of the spent with 34%. But
We see there that the level of International Road show for our recovery I have now reached the level of 2019, we've even an increase of 110% versus 2019 in terms of number of shoppers.
Speaker 1: We see there that the level of international software recovery have now reached.
If we look to the detailed per nationality and they also.
Speaker 1: the the level of 2019 with even an increase of 110% versus 20% in terms of number of shops.
Excluding China.
As in the origin country, you see that we see an acceleration in October at 118, 9% driven by.
Speaker 1: If we look to the detail per nationality and they also excluding China as an origin country, you see that we see an acceleration in October at 118 percent, reasoned by citizens from Hong Kong Taiwan, but also followed by Japan and Korea, so we see a missile that could vape, so there is the Chaseau missilesClip, and then uhm I expect the
Citizens from Hong Kong, Taiwan, but also followed by Japan and Korea, So most east Asia with.
Very strong set of results.
Well above 250%.
For those two nationality.
And if we look to mainland China, we will use to represent 56% of the sales and so in 2019, we see a slight increase.
Speaker 1: with a very strong set of results, well above 250% for those two nationalities.
October at 109% recovery versus 110, 5% in Q2.
Speaker 1: And if we look to mainland China, who used to represent 56% of the sales in so in 2019, we see a slight increase in October at 109% recovery versus 105% in June .
They also if we go a little bit more in detail, we see that the level of recovery in terms of number of shopper is 47%.
Whereby where the increase in average spend is 132%.
Speaker 1: There also, if we go a little bit more in detail, we see that the level of recovery in terms of number of shoppers is 47%. Whereby, where the increase in average spent is 132%, translated into this 109% in terms of tax-repaint recovery.
Translated into this 110, 9% in terms of tax re spent recovers.
So in summary, if we exclude mainland China and Russia, we can see that the recovery and continued towards Europe is well above 150% and even move at 190% now in the back and obviously, we still have China.
Speaker 1: So in summary, if we exclude mainland China and Russia, we can see that the recovery in continental Europe is well above 150%, and almost at 190% now in attack.
Which.
<unk> needs to continue to recovered which has started in APAC, where we reached 109%, but still around 50% in October.
Speaker 1: And obviously, we still have China, which needs to continue to recover, which has started in effect, where we reach 109%, but still around 50% in October .
Why this is important this recovery of the Chinese.
Obviously, because this drive a further improvement of profitability for Global group you know this John just to remind you.
Speaker 1: Why this is important? This recovery of the Chinese, obviously, because this drives further improvement of profitability for global blue. You know the chart, just to remind you a few things.
Sure thing.
As mentioned by your hooks on our quarterly.
Annualized EBITDA is now after Q2, reaching 142% 42 million.
Speaker 1: So, as mentioned by Roxanne, our quarterly analyzed ABDA is now after 22 reaching 142 million, which implied recovery in terms of China revenue of 40%.
Implied recovery in terms of China revenue of 40%.
And this is to be compare to our top proof.
Profitability.
Calendar year, 2019, where we returned with an 80.
<unk> 7 billion euros of Abd and all the rights on the Green part of this chart you can see the simulation of the Chinese recovery and if I take for example, 125%.
Speaker 1: And this is to be compared to our top
Speaker 1: profitability on the calendar year 2019, where we reach 187 million euros of ABD. On the right, on the green part of the chart, you can see the simulation of the Chinese recovery. If I take, for example, 125% recovery for the Chinese in the coming quarters,
The recovery for the for the Chinese in the coming quarters.
Based on the.
Well capacity over there.
And also this.
Stating over the roadblocks that I was mentioning in Europe, We struggled group and visa you can see that the group could reach.
Speaker 1: based on the more capacity of the airline and also this fading of the roadblocks that I was mentioning in Europe with Struddled Group and VISA.
More than 200 million EBITDA, which I remind you is our guidance for her.
Speaker 1: you can see that the group could reach
<unk> 425.
Fiscal year, so over 200 million. So this would imply 100 and a 5%.
Speaker 1: more than 200 million in BDA, which I remind you, these are guidance for 24-25 fiscal year, so over 200 million. So this would imply 105 percent.
Recovery of the Chinese.
Revenue.
So, let's turn now to a few side all the recent achievement Hu think they're too mentioned first on the commercial front for tax free shopping we are continuing to improve our market share.
Speaker 1: read
Speaker 1: So let's turn now for few sites on the recent achievement. You think there to mention first on the commercial front for tax reshopping. We are continuing to improve our market share. You see on the right couple of very significant names which have gained in H1 23, 24, but a cabinet or a demar pigay like us.
You see on the right couple of very significant names, which have gained in H, one 'twenty three 'twenty four but the cabinet.
P J like ghost.
But also all the grants.
And worst mentioned that these strong gain but also.
Sure.
Very strong gross retention rate of 99, 4% and up to the net retention for the last four years, including the.
Speaker 1: but also other brands. And worse to mention that this strong gain but also very strong rules retention rate of 99.4% and up.
H one.
Reset of result of 103% so.
Speaker 1: to a net retention for the last four years, including this H1 reset of result of 103%, so again versus loss, which is positive by 3% per year. So reinforcement of market share in tax reshopping.
Gain versus loss, which is a positive by 3% per year, so reinforcements of market share in tax free shopping.
It also in tax free shopping the continuing level of.
Increase of Digitalization, which you know is very beneficial in terms of increased penetration, which.
Speaker 1: but also in tax reshopping, the continuing level of increase of digitalization, which you know is very beneficial in terms of increase penetration, which
Increased at the end the volume, but also in terms of cost as you know.
More digitalization in terms of refund out of the airports means also reduction of the cost you can see here that the progress in all fronts issuing we are almost now at 100% of digital issuing validation.
Speaker 1: increase at the end of the volume, but also in terms of cost. As you know, more digitization in terms of refund out of the report means also reduction of the cost. You can see here that the progress is in all front issuing. We are almost now 100% of digital issuing, validation, H1 front, like more or less the same level than last year. We have not
H, one translate more or less the same level than last year, we had not shift any new country in terms of export digital vegetation with SKU on that.
Pipeline.
In terms of consumer engagement through our mobile customer care you see that we continue to increase the coverage at 66% versus 62%.
Speaker 1: shift any new country in terms of export digital validation, but few are on the pipeline.
Last year and digital refund.
Speaker 1: In terms of consumer engagement through our mobile customer care, you see that we continue to increase the coverage at 66%, the C62%.
Out of the airport you see also there in your improvement in H, one so continuous improvement in terms of Digitization I will come back.
Speaker 1: last year and digital refund out of the approach you see also there an improvement in H1. So, continuous improvement in terms of digitalization. I will come back talking about the long-term target in couple of minutes and this is one of the key elements of our volume growth.
Talking about the long term target in a couple of minutes and this is one of the key elements of our volume growth.
Turning now to EPS or added value payments solution. They also so very nice gain in.
In terms of FX, so tissue injury H one.
<unk> for the ATM DCC management, but also PPE.
H in Japan Scotia Bank in Canada, a beachy CPA in Italy, and well pay in the U K. They also mentioned the very strong gross retention rate for the last three years in line with <unk> at 98, 2%, which still.
Speaker 1: H in Japan, Scotiabank in Canada, BC.
Speaker 1: He paid in Italy and World Pay in the UK.
State into a net retention rate, so net gain and loss of 104.7%.
Speaker 1: They also to mention a very strong growth retention rate for the last three years in line with H1 at 98.2%, which translates into a net retention rate. So net gain and loss of 104.7.
Last but not least to mention and to report the successful launch of the global <unk> Gateway.
In the last.
Speaker 1: Last but not least, to mention and to report the successful launch of the Global Blue Hospitality in a retail gateway. In the last quarters more than about 280 hotels which has been rolled out with this new gateway and during the last quarter.
Quarters more than.
About 280 hotel, which has been.
<unk> rollout with this new gateway and during the last quarter.
We have been able to sign seven you require adopting our gateway solution in terms of technology with names like mix C. But also Monday really big but it also AIDS red Knights and for which in the convenient.
Speaker 1: We have been able to sign seven new required adopting our gateway solution in terms of technology with names likeographs. Hope this video was useful please share this video
Most we will roll out this technology.
These new hotel to be signed its already the counties for next feat and Fuji sushi in Mondi. It will be the case, but with desk mid thank meds and exit in the coming months.
Speaker 1: And for which in the coming months, we will roll out this technology with new hotel to be signed. It's already the case for Nexy and for GCC and Mondere. It will be the case for Vesca, Maybank, Net and A and Z in the coming month.
Top of that very pleased to report that we have on top of those seven acquired sign.
16, acquire which are in the pipeline. So it was very strong and successful.
Speaker 1: On top of that, very pleased to report that we have on top of those seven acquired sign 16 acquired which are in the pipeline. So a very strong and successful lounge of our global blue sauce pitality and retail gateway which are complementary to the DCC and slash FX solution that we are sending to acquire.
<unk> of our global resource <unk> and <unk>.
<unk> gateway, which are complementary to the D C C.
<unk> solution that we are sitting to acquire.
Let's turn now on the long term guidance and target. So you know that we have released in September 2023.
Our set of guidance and long term targets.
Speaker 1: Let's turn now on the long-term guidance and target. So you know that we have released in September 2023 a set of guidance and long-term targets.
It gives you the highlight of that first and we reconfirmed. This guidance following Q2 reporting for the financial year 'twenty, three 'twenty, four and DVD guidance between 145 million to $165 million.
Speaker 1: I give you the highlight of that first and we reconfirm this guidance following you to reporting for the financial year 2324 a nitty-d guidance between 145,965 million.
In terms of next fiscal year 'twenty four 'twenty five.
The target of more than 200 million EBITDA and for the period post full.
Speaker 1: Next is Stolier 24-25.
I would say.
Nobody's Asian.
Our objective long term of revenue of 8% to 12% for the group with revenue to EBITDA drop through above 50% and Capex, which for all the periods is set to be between 40 and 45 million euros.
Speaker 1: target of more than 200 million EVDA and for the period post-full I would say normalization an objective long term of revenue of 8 to 12 percent for the group with revenue to ABDA drop through above 50 percent.
Of which 80% of capitalized software.
Speaker 1: and CapEx, which for all the periods are set to be between 40 and 45 million euros.
Besides those P&L.
Term target three or their target, which has been revealed in September.
Speaker 1: of which 80% of capitalized software.
First that we confirmed that in terms of networking capital this should be neutral in the future.
Speaker 1: beside those PNL long-term target, three other targets which has been revealed in September .
Post 'twenty five 'twenty six in terms of the effected staffed right.
Speaker 1: First, that we confirm that in terms of networking capital, this should be neutral in the future. Post 2526.
Rate of 24% to 26% and as mentioned.
By hooks on any Q2 presentation and objectives in terms of net debt to EBITDA below two five.
Speaker 1: in terms of effective staff trade rates of 24 to 26% and as mentioned by Roxanne in the Q2 presentation and objectives in terms of net debt to EVDA below 2.5 IE priority on debt.
E a priority.
Pay down in terms of the usage of cash flow.
Two slides in order to give you a little bit more detail.
Especially on the long term target I E post 'twenty.
Speaker 1: pay down in terms of usage of cash flow.
Speaker 1: Two slides in order to give you a little bit more detail, especially on the long-term target, IE post 24, 25, which will still be a year of recovery with Chinese coming back in Europe and in the impact. So post-experience, so starting in 25, 26.
420, fives, which will still be a year of recovery.
<unk>.
Coming back in Europe and in APAC.
Actual push experience so starting in 'twenty five 'twenty six.
As mentioned we.
And the target of growth of 10% to 14% in terms of surge in store for tax free shopping broadly in line with the last 10 years figures.
Speaker 1: As mentioned, we have a target of growth of 10 to 14% in terms ofautical services. teams
Just before Covid and in particular.
Strong objective besides market gross 6% to 8%.
Speaker 1: broadly in line with the last 10 years figures just before COVID and in particular with strong objective beside market growth, 68% of contribution of new country between 1.5 and 2% contribution, digitalization, so more penetration of our solution thanks to digitalization, 2.5% growth.
<unk> contribution of new country between one five and 2% contribution digitalization, so more penetration of our solution. Thanks to digitalization.
Two 5% goes.
And finally net retention.
Between the open five and one 5% contribution coming from net gain from current clients in TSS.
And this should translate.
Speaker 1: And finally, a net retention of between 0.5% and 1.5% contribution coming from net gain from clients in TFS.
<unk> revenue growth in terms of our tax.
Tax free shopping between seven and 11%.
As shown on the right.
All of the draft very consistent there also.
The 10 years.
Moments before Covid.
If I turn now to ethics solution. So they also.
Taishan group.
Growth.
In terms of volume.
Between nine and 13% very much in line. They also with the long term trend pre COVID-19.
Speaker 1: If I turn now to ethics solution, so there also an expectation of growth in terms of volume between 9 and 13%, very much in line, there also with the long-term trade pre-COVID, which has reached around 10%, and 13.5% including the acquisition of currency select.
<unk> has reached around 10% and 13, 5%.
Including the acquisition of guarantees in select.
Which would translate they also with.
Our revenue growth between nine and 13% very much in line there also.
The.
Or.
Speaker 1: which translate there also with a revenue growth between 9 and 13 percent, very much in line. There also with the the past 100s pre-COVID of the ethics solution division.
Performance pre COVID-19 or the ASIC solution Division.
Last but not least just to remind you that global blue is well ahead once again the inflation.
And you have been discharged remap reminding that.
Speaker 1: Just to remind you that global blue is well-heared once again the inflation.
If the luxury brands have increased their price of 27% in average versus 2019.
Speaker 1: Uh, and you have in this chart a reminder, reminding that, uh, uh, if the luxury brand would increase their price of 27% in average versus 2019.
Inflation has been.
Brackets, only but only 20% which means that.
We had a positive impact in terms of P&L and probably more importantly today to remind you that given the positioning of global blue in luxury but more importantly in selling luxury goods to <unk>, we're keen to retool and more wealthy people.
Speaker 1: The inflation has been brackets only by only 20% which means that we had a positive impact in terms of PNL.
Speaker 1: And probably more importantly today to remind you that given the positioning of global blue in luxury but more importantly in selling luxury goods to high-network individuals and more wealthy people.
10% of our consumer base represent almost 50% over.
Sales in stores or volume.
Given this particular T of positioning global Blue in the last recession has been able to pushed basically flat figures versus the luxury market down by 8% and travel down by 16%. So in summary, we are hedged against a recession, but.
Speaker 1: 10% of our consumer base represent almost 50% of our set installs or volume.
Speaker 1: Given this particular of positioning, global blue in the last recession has been able to push basically flat figures versus a luxury market down by 8% and travel down by 16%. So in summary, we are hedge again, recession but also inflation, which is in this uncertain time important to having more.
So inflation, which is in this uncertain time important tool to have in mind.
So with that in mind and for concluding this presentation.
Just to re mentioned that Q2 actual.
I would say a strong set of results which are basically following.
Speaker 1: So with that in mind, and for concluding this presentation,
So a very strong Q1 that during the last week, we have announced two important capital structure transaction, one which is this investment of Tencent.
Speaker 1: just to remensure that Q2 have shown a strong set of the results, which are basically following also very strong Q1 that during the last weeks, we have announced two important capital structure conduction, one which is this investment of 10 cents, of 100 million dollars.
Over $100 million.
And secondly, the fact that we are fully refinance our debt.
No new package of debt with maturity extended to 2030.
And last but not least that we.
Speaker 1: And secondly, the fact that we are fully refinanced our debt with now a new package of debt was a maturity extended to 2030.
The Q2 reporting we are pleased to reiterate.
<unk> guidance for the year and in particular, the adjusted EBITDA between 145 and <unk>.
Speaker 1: And last but not least, that with the Q2 reporting, we are pleased to reiterate our financial guidance for the year and in particular the HSDABDA between 145 and 165 million.
<unk> hundred 65 million.
Thank you very much and with works on we'd give you another R&D who for Q3. Thank you very much and bye bye.
Alright.
Okay.
Okay.
Speaker 1: Thank you very much and with Waxan we give you another round of view for Q3. Thank you very much and bye.
Okay.
Okay.