Q1 2025 Global Blue Group Holding AG Pre- Recorded Earnings Call

Operator: in 9 billion, which is an increase of 33%.

Which is an increase of 32%.

Roxanne: As mentioned by Jack, we achieved a group of new of 180 million, which is an increase of 25%. Juvened by a particularly strong performance in tax-free shopping solution, and I will come back on that. In terms of contribution, here we, which is over new, minus viable cost, here we achieved a 29% increase, with significant growth in post-purchase solutions.

As mentioned by Todd We achieved a group revenue of 118 million you, all which is an increase of 25% driven by a particularly strong performance in tax free shopping solution and then I will come back on that.

Speaker Change: In terms of contribution.

Speaker Change: Which is although new minus I bet cost here, we achieved 29% increase with significant growth in post trade solutions.

Roxanne: Turning to address CDBDA, the significant improvement here with an increase of 55% to 43 million euro, reflecting the high operating leverage profile of the business, together with the ongoing focus on the cost-based. This resulted in a seven-point increase in the HDBDA margin to 36.5%, with a 65% drop-through.

Speaker Change: Turning to adjusted EBITDA significantly.

Speaker Change: Significant improvement here with an increase of 55% to 43 million Euro.

Speaker Change: Making the high operating leverage profile of the business together with the ongoing focus on cost based.

This resulted in a seven point increase in the adjusted EBITDA margin to 36, 5% with a 65% drop through.

Roxanne: Finally, we recorded an adjusted net income for the group of six million euro versus two million euro last year. Let's turn now to slide the eight to go into the divisional performance. Starting first, with tax-free shopping solutions, which accounted for 78% of group of new in the quarter, the division delivered the strong performance with an increase of sales in store of 42%, and an increase in revenue of 33% to 91 million euro. Jags will cover this in more detail later, but looking at sales in store, there is a strong improvement in both Continental Europe and Asia Pacific.

Speaker Change: Finally, we recorded an adjusted net income for the group of 6 million York that says to me than your last job.

Speaker Change: Let's turn now to slide eight to go into the divisional performance.

Speaker Change: Starting first with tax free shipping solutions, which accounted for 78% of could prevent you in the quarter.

Speaker Change: The division delivered a strong performance with an increase of self install of 42% and an increasing because when you have such a 3% to 91 million.

Speaker Change: Jack will cover this in more detail later, but looking at self install there. He is a strong improvement in both Continental Europe and Asia Pacific.

Roxanne: The 20% growth in continental Europe can be attributed to strong euro-neur progression across all nationalities, with GCC, plus 43%, mainline China, plus 31%, and US, plus 70%. The 91% euro-neur performance in Asia Pacific reflects a solid acceleration in the recovery with mainline China, plus 224%, now it's Asia, plus 146%, and on comment I won, plus 69%. You can see here the difference in size growth of 42% versus revenue growth of 33%, which is mainly due to continental mix. This is because Asia Pacific is growing during this quarter, grow much faster than Europe, with sales in store at 42%, versus 31% last year, and the vast rate in Asia is much slower at around 10%, versus 20% in Europe.

Speaker Change: The 20% growth in Continental Europe can be attributed to strong year on year progression across all nationalities, with GCG, plus 43% mainland China cause 31% and U S 17%.

Speaker Change: The 91% year on year performance in Asia Pacific reflects a solid acceleration in the recovery with mainland China, because 224% now East Asia cause 114, 6% and Hong Kong and Taiwan to 69%.

Speaker Change: You can see here the different instances costs of 42%. That's just for ammonia rolls of such a 3% which is mainly due to continental. Thanks. This is because Asia by C piece is growing during.

Speaker Change: During this quarter grew much faster than Europe with self install at a 42%. That's just south of two 1% last year and the VAT rate in Asia, it's much floor at around 10%, that's just 20% anymore, but.

Roxanne: But this will normalize when the growth of both continents is similar. What is also important to highlight here, you can see that overall pricing impact is now flat. Moreover, the usual impact that we had previously from merchant mix, where we had an increased level of business with larger merchants, with whom we shared a higher rate of commission, is now positive. Then, if we look at contribution, here we delivered a 34% increase to 77 million euro, with strong improvement in both continents, meaning Europe and Asia. Pacific. KFS has a strong contribution margin of 84% with the variable cost mainly related to airport reforming costs, which is airport and agent fees.

Speaker Change: But this will normalize to win the growth of boss Continence is similar.

What is also important to highlight here you can see that overall pricing impact is now flat.

Speaker Change: Moreover, the usual impact that we had previously for Mexican techniques, where we had an increased level of business with larger merchants with whom we shed a higher rate of commission is now positive.

Speaker Change: Then if we look at contribution.

Speaker Change: Here, we detailed a 34% increased to 77 million year old with strong improvement in both contingent, meaning Europe and Asia Pacific PFS as a strong contribution margin of 84% with the valuable costs, mainly related to airport refunding cost which is airports.

Operator: in 9 billion, which is an increase of 33%. As mentioned by Jack, we achieved a group of new of 180 million, which is an increase of 25%. Juvened by a particularly strong performance in tax-free shopping solution, and I will come back on that. In terms of contribution, here we, which is over new, minus viable cost, here we achieved a 29% increase, with significant growth in post-purchase solutions.

Speaker Change: Agent fees.

Roxanne: We're turning now to payments. Payments accounted for 17% of group revenue in the quarter. Here we delivered another solid performance with these goals of 5% and revenue goals of 8% to 20 million euro. You can see the key driver for the increase in revenue versus these goals is an increased margin on both Tracer Regain and Aquarius, and also a positive impact from FX gain and others. Then if we look at the contribution level of 11 million euro, 10 million euro is from FX solution with an increase of 2%, and 1 million euro is from acquiring a gateway, which is an increase of 15%.

Speaker Change: Turning now to payments.

Speaker Change: Siemens accounted for 17% of group revenue in the quarter.

Speaker Change: Here, we delivered another solid performance with sales growth of 5% and revenue growth of 8% to 20 million Euro.

Operator: Turning to address CDBDA, the significant improvement here with an increase of 55% to 43 million euro, reflecting the high operating leverage profile of the business, together with the ongoing focus on the cost-based. This resulted in a seven-point increase in the HDBDA margin to 36.5%, with a 65% drop-through.

Speaker Change: You can see the key driver for the increase in revenue versus his boss is an increased in margin on both trees are we getting in acquired and also a positive impact from FX gain and owners.

Speaker Change: If we look at the contribution level of 11 million year old 10 million Euro is from ethics solution with an increase of 2% and 1 million Euro is from acquiring and gateway, which is an increase of 15%.

Operator: Finally, we recorded an adjusted net income for the group of six million euro versus two million euro last year.

Roxanne: It's important to note here the difference in contribution margin with FX solution at 96% and acquiring a gateway at 13%, acquiring being a pass-through model, incurring payment of interchange and network fees to financial institutions.

Speaker Change: It's important to note here the difference in contribution margin with Sx solution at night at 96% and acquiring at gateway at 13% acquiring being a pass through more than incurring payment of interchange and network fees to financial institutions.

Operator: Let's turn now to slide the eight to go into the divisional performance. Starting first, with tax-free shopping solutions, which accounted for 78% of group of new in the quarter, the division delivered the strong performance with an increase of sales in store of 42%, and an increase in revenue of 33% to 91 million euro. Jags will cover this in more detail later, but looking at sales in store, there is a strong improvement in both continental Europe and Asia Pacific.

Roxanne: Turning now to Persperchase solutions. Persperchase solution accounted for 5% of group revenue in the quarter. The division reported a revenue decline of 11% to 6 million euro in the quarter, but, as previously disclosed, revenue continues to be impacted by our decision to move away from carrier sales to some of the exact clients, which is a service that generates revenue but with a lower contribution. So the end of this service has a positive impact on contribution, and the contribution growth here was strong at plus 14%, with the contribution margin of now 61%, and here variable cost are mainly related to the logistic carrier cost of the exact.

Speaker Change: Turning now to push the chase solutions.

Speaker Change: Especially solution accounted for 5% of our revenue in the quarter. The division reported a revenue decline of 11% to 6 million in the quarter, but as previously disclosed revenue continues to be impacted by our decision to move away from carrying your sales to some of this.

Operator: The 20% growth in continental Europe can be attributed to strong euro-neur progression across all nationalities, with GCC, plus 43%, mainline China, plus 31%, and US, plus 70%. The 91% euro-neur performance in Asia Pacific reflects a solid acceleration in the recovery with mainline China, plus 224%, now it's Asia, plus 146%, and on comment I won, plus 69%. You can see here the difference in size growth of 42% versus revenue growth of 33%, which is mainly due to continental mix.

Speaker Change: Our clients, which is a service that generates revenue, but with a lower contribution.

Speaker Change: So you end of the seventies has a positive impact on contribution and the contribution Gulf here was strong.

Speaker Change: Chris 14% with a contribution margin of now 61% and here viable costs are mainly related to the logistic carrier cost of it's exactly.

Speaker Change: Turning now to detail on adjusted EBITDA.

Roxanne: Turning now to detail on adjusted EVD. As I said earlier, the significant improvement in revenue, together with high operating leverage profile of the business and the ongoing focus on the cost base led to a 55% increase in adjusted EVD in the quarter, with a 65% drop-through. We begin with our adjusted EVD of last year, which was 20 million, then with the additional contribution of 21 million related to the business, and the fixed cost and foreign exchange impacted of 6 million euro, the group delivered an adjusted EVD of 43 million euro, with an increase in adjusted EVD margin of 7 points to 36.5%.

Speaker Change: As I said earlier, the significant improvement in revenue together with high operating leverage profile of the business and the ongoing focus on the cost base led to a 55% increase in adjusted EBITDA in the quarter, which is 65% drop through.

Operator: This is because Asia Pacific is growing during this quarter, grow much faster than Europe, with sales in store at 42%, versus 31% last year, and the vast rate in Asia is much slower at around 10%, versus 20% in Europe.

Speaker Change: We begin with our adjusted EBITDA of last year, which was 20 million.

Speaker Change: And with the additional contribution of 21 million related to the business and the fixed cost and foreign exchange impacted off 6 million you all the good data other than adjusted EBITDA of 43 million you all with an increase in our adjusted EBITDA margin of seven points to 36, 5%.

Operator: But this will normalize when the growth of both continents is similar. What is also important to highlight here, you can see that overall pricing impact is now flat. Moreover, the usual impact that we had previously from merchant mix, where we had an increased level of business with larger merchants, with whom we shared a higher rate of commission, is now positive. Then, if we look at contribution, here we delivered a 34% increase to 77 million euro, with strong improvement in both continents, meaning Europe and Asia. Pacific.

Roxanne: Turning now to slide 12 for the DNA deposition and amortization. You can see here the breakdown of the DNA; they have increased by 2 million euro in the condition, to 11 million euro. This is due to 1 million euro increase in the capitalized software amortization, which reflects the increase in CAPEX related to software over the last 2 years. Following the ramp up of the investments in software CAPEX, annual software CAPEX amortization should converge in the coming years, with annual software CAPEX spend periods.

Speaker Change: Turning now to slide slide 12 of them, all the D&A depreciation and amortization.

Speaker Change: You can see here the breakdown of the journey.

Speaker Change: Does he have increased by 2 million youre willing to pay up to 11 million you all.

Speaker Change: This is due to 1 million annual increase in the capitalized software amortization, which reflects the increase in capex related to software, although the last two years.

Speaker Change: Following the ramp up of the investments in software Capex and you also asked about Capex, how much is essential converged in the coming years with the annual software capex spend per year.

Operator: KFS has a strong contribution margin of 84% with the variable cost mainly related to airport reforming costs, which is airport and agent fees.

Roxanne: Turning now to net finance cost. Here we are showing an increase of 4 million euro in net finance cost. This is the same period last year. This is mainly due to the increase in interest rates on the senior debt, which is over 8% in this quarter. This is 5.6% in Q1 lecture. Looking to 24.25, the expected senior debt cost is 45.3 million euro, which includes 3 million euro from a swap on a rebor for half of the senior debt.

Speaker Change: Turning now to net finance cost.

Operator: We're turning now to payments. Payments accounted for 17% of Group Revenue in the quarter. Here we delivered another solid performance with these goals of 5% and revenue goals of 8% to 20 million euro. You can see the key driver for the increase in revenue versus these goals is an increased margin on both Tracer Regain and Aquarius and also positive impact from FX gain and others. Then if we look at the contribution level of 11 million euro, 10 million euro is from FX solution with an increase of 2%, and 1 million euro is from acquiring a gateway, which is an increase of 15%.

Speaker Change: Here, we are showing an increase of 4 million in net finance costs. This is the same pound last year.

Speaker Change: This is mainly due to the increase in interest rates on the senior debt, which is over 8% in this quarter that is five 6% in Q1 that that's true.

Speaker Change: Looking to 'twenty four 'twenty five they expected senior debt cost is $45 3 million, which includes 2 million you all from a swap on he bought for half of the senior debt.

Operator: It's important to note here the difference in contribution margin with FX solution at 96% and acquiring a gateway at 13%, acquiring being a pass-through model, incurring payment of interchange and network fees to financial institutions.

Roxanne: Turning now to detail on the annualized adjusted BDA. So here we are showing the annualized adjusted BDA for the group based on the quarterly performance. You can see here the CD and consistent improvement in the annualized quarterly adjusted BDA and a strong acceleration in this quarter. We are now at 205 million euro versus 164 million in the previous quarter, with a significant improvement in margin for about 2 points. On the 41 million euro improvements in the annualized adjusted BDA, 3 points to consider here. First, Europe that has reached 100% revenue recovery in Q1. They have used 82% in the previous quarter to event by the strong increase of this from US and DCC.

Speaker Change: Turning now to a detailed on the annualized adjusted EBITDA.

Speaker Change: So here, we are showing the annualized adjusted EBITDA for the group based on the quarterly performance.

Speaker Change: You can see here is T D and consistent improvement into annualized quarter here, just if you could do it.

Speaker Change: And his tongue acceleration in this quarter.

Speaker Change: We are now at 205 million Euro.

Speaker Change: That's just 164 million in the previous quarter with as soon as you can see improvement in margin for about two points.

Operator: Turning now to Persperchase solutions. Persperchase solution accounted for 5% of Group Revenue in the quarter. The division reported a revenue decline of 11% to 6 million euro in the quarter, but as previously disclosed, Revenue continues to be impacted by our decision to move away from carrier sales to some of the exact clients, which is a service that generates revenue but with a lower contribution.

Speaker Change: On the 41 million annual improvements in the annualized adjusted EBITDA three points to consider here.

Operator: So the end of this service has a positive impact on contribution, and the contribution growth here was strong at plus 14%, with the contribution margin of now 61%, and here variable cost are mainly related to the logistic carrier cost of the exact.

Speaker Change: Fifth Europe that has reached 100% of revenue recovery in Q1.

That's just 18, 2% in the previous quarter driven by the strong increase of six from U S. M D C.

Roxanne: Second, we have APEC that is now at 159% revenue recovery in Q1 this year. They have used 124% in the previous quarter to event by a strong increase of this from midline channel. Finally, the level of fixed costs are quite comparable with 2019, despite higher inflation over the last three years and the retiring of talents to support the business increase.

Speaker Change: Second we have APAC that he's now at 115, 9% revenue recovery.

Speaker Change: In Q1, this year versus 124% in the previous quarter. It was owned by a strong increase of seats for mainland China.

Speaker Change: Finally, the level of fixed cost are quite comparable with 2019, despite higher inflation over the last three years and the rehiring of tenants to support the business increase.

Operator: Turning now to detail on adjusted EVD. As I said earlier, the significant improvement in Revenue, together with high operating leverage profile of the business and the ongoing focus on the cost base led to a 55% increase in adjusted EVD in the quarter, with a 65% drop-through. We begin with our adjusted EVD of last year, which was 20 million, then with the additional contribution of 21 million related to the business, and the fixed cost and foreign exchange impacted of 6 million euro, the group delivered an adjusted EVD of 43 million euro, with an increase in adjusted EVD margin of 7 points to 36.5%.

Speaker Change: Now, let's have a look on our cash flow statements.

Roxanne: Now, let's have a look on our cash flow statements. After an adjusted BDA of 43 million euro and a level of APEC at 10 million euro in the period, this is here essentially related to technology development. So, we have a significant improvement in adjusted BDA less APEC at 33 million euro versus 20 million euro last year. You can see here a working capital needs outflow of 39 million euro, and I will cover that in more details in the next slide. So, after APEC's working cap and lease payments, there is a pre-tax only right free cash flow outflow of 10 million euro.

Speaker Change: I still have an adjusted EBITDA of 43 million, you will and the level of Capex.

Speaker Change: At 10 million, you're willing to pay us.

Speaker Change: This is here essentially related to technology development.

Speaker Change: So we haven't seen as you can see improvement in adjusted EBITDA less Capex at 33 million year old veteran 20 million you hold last year.

Speaker Change: You can see here a walking capital needs are old school of 13 9 million your and I will cover that in more details in the next slide.

Operator: Turning now to slide 12 for the DNA deposition and amortization. You can see here the breakdown of the DNA, they have increased by 2 million euro in the condition, to 11 million euro. This is due to 1 million euro increase in the capitalized software amortization, which reflects the increase in CAPEX related to software over the last 2 years.

Speaker Change: So after capex walking cap and lease payments that he's a pretax unlevered free cash flow outflow of 10 million year old. That's just not true of 31 million you'll in the previous period.

Roxanne: There's used a not flow of 31 million euro in the previous period. So, we have ended the period with a solid improvement in cash flow, with an overall outflow of 34 million euro versus 53 million euro last year.

Operator: Following the ramp up of the investments in software CAPEX, annual software CAPEX amortization should converge in the coming years, with annual software CAPEX spend periods.

Speaker Change: So we have ended the period with a solid improvement in cash flow with a novel at an outflow of 34 million versus 53 million last year.

Speaker Change: Finally, there is an increase of net debt of 43 million you will and again, we'd come out that's in Logitech later.

Roxanne: Finally, there is an increase of net debt of 43 million euro, and again, I will cover that in more detail later. Let's turn to the working capital explanation. So here we are showing the working capital variation on a quarterly basis. As a reminder, our working capital is driven by the timing of the refunds that we make to international travelers and the timing of the vast payments that we receive from merchants and tax authorities. We typically refund travelers, on average, 30 to 45 days before we are paid by the merchant authorities. As a result, there is cash flow seasonalities throughout the year with a larger networking capital need during this spring summer.

Speaker Change: Let's turn to the walking capital expansion.

Operator: Turning now to net finance cost. Here we are showing an increase of 4 million euro in net finance cost. This is the same period last year. This is mainly due to the increase in interest rates on the senior debt, which is over 8% in this quarter.

Speaker Change: So here, we are showing the working capital variation on a quarterly basis as.

Speaker Change: As a reminder, our working capital is driven by the timing of the refunds that we make to international travelers and.

Speaker Change: The tightening of the VAT payments that we've received from merchants and tax authorities.

Operator: This is 5.6% in Q1 lecture. Looking to 24.25, the expected senior debt cost is 45.3 million euro, which includes 3 million euro from a swap on a rebor for half of the senior debt.

We typically we fund travelers on average 30 to 45 days before we are paid by the merchants all twenties.

Speaker Change: As a result, there is a cash flow seasonality piece was our two year.

With a larger on net working capital needed to Inc.

Operator: Turning now to detail on the annualized adjusted BDA. So here we are showing the annualized adjusted BDA for the group based on the quarterly performance. You can see here the CD and consistent improvement in the annualized quarterly adjusted BDA and a strong acceleration in this quarter. We are now at 205 million euro versus 164 million in the previous quarter with a significant improvement in margin for about 2 points.

Speaker Change: This spring summer.

Roxanne: When international travelers are traveling much more frequently and during the winter, this is followed by a working capital and wind during those months. So you can see the same trend here with a higher hold flow of 39 million in the first quarter, which will reverse during the winter season and which also is in line with our guidance of neutral working capital on the annual basis.

Speaker Change: When international travel nurse.

Speaker Change: They are traveling much more frequently and during the winter. This is followed by a working capital unwind.

Speaker Change: During those months.

Speaker Change: So you can see the same trend here with a higher hold floor of 39 million euro in the first quarter, which will reverse during the winter season, and which also is in line with our guidance of new trial walking I can tell us on an annual basis.

Roxanne: Turning now on analysis related to our net debt position, at the end of June 24, our net financial debt amounted to 566 million euro, from 523 million euro at the end of March, but with a leverage ratio that is maintained at 3.4 times. Net debt has increased in the quarter because of the working capital seasonality. And as I explained on the previous slide, this will reverse and wind in the winter season, which will positively impact the net leverage ratio and will reaffirm the objectives of being below 2.5 times.

Turning now on an analysis related to our net debt position.

Operator: On the 41 million euro improvements in the annualized adjusted BDA, 3 points to consider here. First, Europe that has reached 100% revenue recovery in Q1. They have used 82% in the previous quarter to event by the strong increase of this from US and DCC. Second, we have APEC that is now at 159% revenue recovery in Q1 this year. They have used 124% in the previous quarter to event by a strong increase of this from midline channel.

Speaker Change: At the end of June 'twenty fall, our net financial debt amounted to 566 million Euro.

Speaker Change: Ah Prom 523 million at the end of March.

Speaker Change: With a leverage ratio that was maintained at two four times.

Speaker Change: And then that is an increase in the quarter because of the walking capital since the 19th.

Speaker Change: And as I explained on the previous slide this will reversed and wind in the winter season, which will positively impact the net leverage ratio and we reaffirm the objective of being.

Operator: Finally, the level of fixed costs are quite comparable with 2019 despite higher inflation over the last three years and the reiring of talents to support the business increase.

Speaker Change: Below two five times.

Speaker Change: Turning now to the key takeaways.

Roxanne: Turning now to the key takeaways. Here are the main highlights for the period. First, we are very pleased to report a very strong start to the year, with the significant increase in revenue of 25% to 180 million euro. Second, thanks to the strong revenue growth, significant operating leverage, and ongoing management of the cost base. We are pleased to report a strong improvement at the CDBG to 43 million euro, which is an increase of 55% of that report last year, with a 65% drop true. On that basis, if we analyzed the address CDBG based on the quarterly performance of the book, there is an acceleration to 200 5 million euro.

Speaker Change: Here are the main highlights followed by other.

Speaker Change: First we are very pleased to report a very strong start to deal with the significant increase in golf venue of 25% to 118 million you'll see.

Operator: Now, let's have a look on our cash flow statements. After an adjusted BDA of 43 million euro and a level of APEC at 10 million euro in the period, this is here essentially related to technology development.

Speaker Change: Second thanks to the strong revenue growth. He if he can't operating liberate and ongoing management of the cost base. We are pleased to report a strong improvement of adjusted EBITDA to 43 million, which is an increase of 55% Oh that we bought last year with a 65% of the profitable.

Operator: So, we have a significant improvement in adjusted BDA less APEC at 33 million euro versus 20 million euro last year.

Speaker Change: And that means if we annualized.

Operator: You can see here a working capital needs outflow of 39 million euro and I will cover that in more details in the next slide.

Speaker Change: Adjusted EBITDA based on the quarterly performance of the book that is an acceleration to 205 Mcdaniel.

Roxanne: And finally, we deliver the strong improvement in the net leverage ratio to 3.4 times versus 5.7 times in the same period last year. And we really await our objective of being below 2.5 times.

Speaker Change: And finally, we delivered a strong improvement.

Operator: So, after APEC's working cap and lease payments, there is a pre-tax only right free cash flow outflow of 10 million euro. There's used a not flow of 31 million euro in the previous period.

Speaker Change: The net leverage ratio to three four times that's just.

Speaker Change: Five seven times in the same period last year, and we reiterate our objective of being below two five times.

Operator: So, we have ended the period with a solid improvement in cash flow with an overall outflow of 34 million euro versus 53 million euro last year.

Roxanne: So this concludes the financial sections, and I will now hand over to Jacques to present the latest strengths and the long-term growth driver from Global. Thank you, Roxanne.

Speaker Change: So this concludes the financial section Sendai, we know handle prozac to present, the latest trends and the long term both tradeoff will go backwards.

Operator: Finally, there is an increase of net debt of 43 million euro and again, I will cover that in more detail later.

Speaker Change: Thank you Roxanne.

Jacques: So let us train, which means July for tax reshorting. So for the first time, we are now reporting on year-over-year versus recovery. Having said that, you will find in the appendix all the details for the recovery if you want to continue to follow this metrics. But we thought now, with the normalization of mainland China, it's a good time to move to year-on-year.

Speaker Change: <unk> latest strained, which mean July with actually shopping.

Operator: Let's turn to the working capital explanation. So here we are showing the working capital variation on a quarterly basis. As a reminder, our working capital is driven by the timing of the refunds that we make to international travelers and the timing of the vast payments that we receive from merchants and tax authorities. We typically refund travelers on average 30 to 45 days before we are paid by the merchant authorities.

Speaker Change: So for the first time, we are now reporting on year over year versus recovery. I think you said that you will find in the appendix will be detailed further recoveries you want to continue to follow these metrics, but we sold no with the normalization of mainland China.

Speaker Change: It's a good time to move to year on year, Let's forget 2019. So if we go to the slide 20, which gave you the the main element.

Jacques: Let's forget 2019. So if we go to the slide 20, which gives you the main element, where do I basis? You see that Europe has in July performed slightly lower than Q1, 12% versus 19%. We come back on that. And also, in effect, with the growth of 64%, versus 109% that we come back on that. And you see what is interesting on the right side in terms of nationality that basically we have very strong performance of China, even though we are now coming to the period of normalization with the reopening, which is more than 12 months.

Operator: As a result, there is cash flow seasonalities throughout the year with a larger networking capital need during this spring summer. When international travelers are traveling much more frequently and during the winter, this is followed by a working capital and wind during those months. So you can see the same trend here with a higher hold flow of 39 million in the first quarter, which will reverse during the winter season and which also is in line with our guidance of neutral working capital on the annual basis.

Speaker Change: Worldwide basis, you see that Europe is.

Speaker Change: In July performed.

Speaker Change: Slightly lower than Q1, 12% versus 19% can we come back on that and also in APAC.

Speaker Change: The growth was 64% versus 109% that will come back on that and you see what is interesting on the right side in terms of nationality that.

Speaker Change: Basically we have very strong performance of China, even though we are now coming to the period of normalization with a reopening which is more than 12 months.

Jacques: But we see in particular very strong performance of country like US, which is now recovered for more than two to three years. So it's a very good momentum.

Speaker Change: But we see in particular very strong performance of country like U S.

Operator: Turning now on analysis related to our net debt position, at the end of June 24, our net financial debt, the amounted to 566 million euro, from 523 million euro at the end of March, but with a leverage ratio that is maintained at 3.4 times.

Speaker Change: Which is now recovered for more than two to three years.

Speaker Change: So very good momentum, let's go down a little bit more in detail to Europe.

Jacques: Let's go now a little bit more detail in Europe. And you can see that the main element in Europe in July was the wheat performance of France at minus 2% versus 10% growth in T1, which is really explained by the pre-Olympics negative impact in Paris. The rest of the country has been more or less in line with G1, namely Italy, Spain, or a slight acceleration in Germany. If we move to the nationality, I was mentioning the very strong performance of the US, despite the weak ones in France. You see 15%, which is really good, and also mainland China, where we had a positive plus 33% versus last year.

Speaker Change: And you can see that.

Speaker Change: The men element in Europe in July is ashish to warm who's the weak performance of France at minus 2% versus 10% gross two one which is really explained by the pre Olympics.

Operator: Net debt has increased in the quarter because of the working capital seasonality. And as I explained on the previous slide, this will reverse and wind in the winter season, which will positively impact the net leverage ratio and will reaffirm the objectives of being below 2.5 times.

Speaker Change: It is impacted by basically for Houston as Bobby was totally empty before Olympics clearly the Olympics has been positive that we will see this impact.

Operator: Turning now to the key takeaways. Here are the main highlights for the period.

Speaker Change: Okay. The rest of the country has been more or less in line with Q1, namely, Italy, Spain.

Operator: First, we are very pleased to report a very strong start to the year with the significant increase in revenue of 25% to 180 million euro. Second, thanks to the strong revenue growth, significant operating leverage and ongoing management of the cost base. We are pleased to report a strong improvement at the CDBG to 43 million euro, which is an increase of 55% of that report last year with a 65% drop true. On that basis, if we analyzed the address CDBG based on the quarterly performance of the book, there is an acceleration to 200 5 million euro. And finally, we deliver the strong improvement in the net leverage ratio to 3.4 times versus 5.7 times in the same period last year.

Speaker Change: Slide decks.

Speaker Change: In Germany, if we move to the nationality I was mentioning the very strong performance of the U S. Despite the.

Operator: And we really await our objective of being below 2.5 times.

Speaker Change: The weak want in France, you see 15%.

Speaker Change: Which is really good and also mainland China.

Speaker Change: There we had two positive.

Speaker Change: Plus 33% versus juice.

Speaker Change: Last year, so overall I would say in continental Europe, if we strip out the pre Olympics.

Jacques: So overall, I would say in continental Europe, if we strip out the pre-Olympics, mainland China, which has been more or less the same as T1.

Speaker Change: <unk>, which has been more or less the same than Q1.

Jacques: If we move to the back now, clearly we have seen a kind of upper growth for now, a couple of quarters. In July, we have seen a certain slowdown of these upper growths. Still, we had 64% growth versus last year, but particularly in Japan, we have seen a kind of slowdown of these upper growths at brackets only 103% versus 172% in previous quarter. All nationalities are, I would say, contributing to this phenomenal level of growth, but probably to mention that the recent softness or strengthening of the Japanese yen have mechanically, with the elasticity of the business, created a kind of slowdown of these upper growths in Japan.

Speaker Change: If we move to the back now.

Speaker Change: Clearly we have seen them.

Speaker Change: Kind of EPS growth for now.

Speaker Change: Quarter.

Speaker Change: In July we have seen them.

Speaker Change: Certain slowdown of the shipper groups still we are at 64% growth versus last year.

Jacques: So this concludes the financial sections, and I will now hand over to Jacques to present the latest strengths and the long-term growth driver from global.

Speaker Change: But particularly in Japan, we have seen a general slowdown of the EBITDA growth at <unk>.

Jacques: Thank you, Roxanne. So let us train, which means July for tax reshorting. So for the first time, we are now reporting on year over year versus recovery. Having said that, you will find in the appendix all the details for the recovery, if you want to continue to follow this metrics. But we thought now with the normalization of mainland China, it's a good time to move to year on year. Let's forget 2019.

Brackets, only 103% a 672%.

Speaker Change: The previous quarter.

Speaker Change: Or nationality are.

Speaker Change: I would say contributing <unk>.

Speaker Change: To this phenomenal level of Bruce, but probably to mention that.

Speaker Change: The recent softness.

Speaker Change: Our strengths to knee.

Speaker Change: Japanese yen of mechanically with the elasticity of the business created a kind of slow down of the shipper goes in.

Jacques: So if we go to the slide 20, which gives you the main element, where do I basis? You see that Europe has in July performed slightly lower than Q1, 12% versus 19%. We come back on that. And also, in effect, with the growth of 64%, versus 109% that we come back on that. And you see what is interesting on the right side in terms of nationality that basically we have very strong performance of China, even though we are now coming to the period of normalization with the reopening, which is more than 12 months. But we see in particular very strong performance of country like US, which is now recovered for more than two to three years. So it's a very good momentum.

Speaker Change: Japan.

Speaker Change:

Jacques: Last slide on the later strain, which I think is interesting for you to understand what happened with China, is a slide which shows you that because of this weakness of the yen versus the LNBO, the euro, all currency, around 30% to 35%. If you compare to 2019, and because in our business, we have a very strong elasticity in particular for Chinese, so three times, which means that when we have a move of currency of 30%, it means that it's an impact positive or negative, it has been positive of 90% for three times the currency variation.

Speaker Change: The slide on the later spring, which I think is an interesting for you to understand what happened with China.

Is this slide which show you that because.

Speaker Change: Of this <unk>.

Speaker Change: Recognition of the of the yen versus.

Speaker Change: The euro.

Speaker Change: All the currency.

Speaker Change: Around 30%.

Speaker Change: 35%, if you compare to 2019.

Speaker Change: And because in our business, we have a very strong elasticity in particular for Chinese two three times, which means that when we have the move of current shield 30 percentage means that it's an impact positive or negative it has been positive.

Speaker Change: 90% for three times the currency.

Speaker Change: <unk> because of that clearly, Japan as being low place to attract consumer Chinese consumer during Q1.

Jacques: Because of that, clearly Japan has been the place to attract consumer, Chinese consumer during two months. You can see that on the left, where in 2019, 33% of the overall spend of Chinese abroad was done in Japan; where during the same period of two months in 2024, it has been 61%. And so, it's not by surprise that we see a recovery for mainland China of 62% in Europe, and a very strong recovery in Japan, and in an impact in general at almost 200%. So I think what you have to keep in mind is Chinese recovery.

Jacques: Let's go now a little bit more detail in Europe. And you can see that the main element in Europe in July was the wheat performance of France at minus 2% versus 10% growth in T1, which is really explained by the pre-Olympics negative impact in Paris. The rest of the country has been more or less in line with G1, namely Italy, Spain or a slight acceleration in Germany. If we move to the nationality, I was mentioning the very strong performance of the US, despite the weak ones in France.

Speaker Change: You can see that on the left.

Speaker Change: There in 2019, 33% of the overall spend of Chinese abroad was the Japan, where during the same period of Q1 in 2020 before it has been 61% and so it's not by surprise that.

Speaker Change: We see a.

Speaker Change: Recovery.

Speaker Change: For mainland China of 62% in Europe, and a very strong recovery in Japan.

Speaker Change: In APAC in general at almost 200% so I think.

Speaker Change: What you have to keep in mind used Chinese your recovery.

Jacques: It was 122% into one. And clearly we are seeing, because of the weakness of the end, an attraction, a pull of attraction in Japan, which distort a little bit where the recovery happened in Japan less in Europe.

Speaker Change: It was 122%.

Speaker Change: In Q1, and clearly we are seeing because of the richness of the overdue.

Jacques: You see 15% which is really good and also mainland China, where we had a positive plus 33% versus last year. So overall, I would say in continental Europe, if we strip out the pre-Olympics, mainland China, which has been more or less the same than T1.

Speaker Change: Yes.

Speaker Change: And the attraction of the pool of attraction.

Speaker Change: In Japan, which distort a little bit where the recovery happens I E more in Japan, and Europe, but clearly with what Doug just said, which is a softening.

Jacques: But clearly, with what I've just said, which is a softening or strengthening of the yen after the weak point of the yen that we have seen in July, clearly we can expect that in a couple of months we can see a more moderate growth in Japan and probably better growth in Europe with this change in the currency in Japan.

Speaker Change: Or strengthening of the yen after the source.

Jacques: If we move to the back now, clearly we have seen a kind of upper growth for now, a couple of quarter. In July, we have seen a certain slowdown of these upper growths. Still, we had 64% growth versus last year, but particularly in Japan, we have seen a kind of slowdown of these upper growths at brackets only 103% versus 172% in previous quarter. All nationalities are, I would say, contributing to this phenomenal level of growth, but probably to mention that the recent softness or strengthening of the Japanese yen have mechanically, with the elasticity of the business, created a kind of slowdown of these upper growths in Japan.

Speaker Change: The weak point of the yen that we have we have seen in July clearly, we can expect that in couple of months, we can see a more moderate growth in Japan, and probably better gross.

Speaker Change: Europe we.

Speaker Change: With this.

Speaker Change: Change in the currency in Japan.

Speaker Change: Yeah.

Jacques: So that was really the latest trend to conclude, like I said, that July has been quite good and in line, I would say, with our expectation. With that in mind, and as I was mentioning before, Q1 being really strong, July being a very strong also, we have reiterated our financial guidance of 200 million, as mentioned by Roxanne. But despite that, we see no rewriting of the Global Blue shares.

Speaker Change: So that was really do relate to strengthen to conclude let's say that July has been quite good.

In line I would say with our expectation.

Speaker Change: With that in mind and as I was mentioning before.

Speaker Change: Q1, being really strong July.

I would say very strong also.

Speaker Change: We have reiterated our financial guidance.

Speaker Change: 200 million as mentioned by <unk>, but despite that.

Speaker Change: We see no rewriting all the global Blue shares.

Jacques: Last slide on the later strain, which I think is interesting for you to understand what happened with China, is a slide which shows you that because of this weakness of the yen versus the LNBO, the euro, all currency, around 30% to 35%. If you compare to 2019, and because in our business, we have a very strong elasticity in particular for Chinese, so three times, which means that when we have a move of currency of 30%, it means that it's an impact positive or negative, it has been positive of 90% for three times the currency variation.

Jacques: And so with that in mind, again, strong operation performance, financial guidance, reaffirm, and a happy day there very soon, and no impact on the share price. The board of directors have decided yesterday to launch a 10 million share buy-back program, a program which will be for six months, and where the main shareholders Silverlake and Patent's Group will not participate. This program translates really the confidence of the company and the management on, I would say, our operational performance from now, from today, but also for the year. And also the strong delivery of cash flow, which helped us to deliver, to deliver the business.

Speaker Change: And so.

Speaker Change: With that in mind again strong operations performance financial guidance, reaffirm and happy de leveraging and moving back when the share price the board of director.

Decided yesterday to loans of $10 billion share buyback program.

Speaker Change: The program, which will be for six months.

And where the main shareholders Silver Lake Partners group will not participate this program translate really.

Speaker Change: The confidence of the company and the management.

Speaker Change: I would say are operational.

Speaker Change: Performance.

Speaker Change: From now.

Speaker Change: From today, but also for the year.

Speaker Change: And also the strong delivery of cash flow, which help us to deliver.

Jacques: Because of that, clearly Japan has been the place to attract consumer, Chinese consumer during two months. You can see that on the left, where in 2019, 33% of the overall spend of Chinese abroad was done in Japan, where during the same period of two months in 2024, it has been 61%. And so, it's not by surprise that we see a recovery for mainland China of 62% in Europe, and a very strong recovery in Japan, and in an impact in general at almost 200%.

Speaker Change: To deleverage the business.

Jacques: So it's a good transition for me to talk about guidance and long-term target. So here we, as mentioned, reiterated 2425 with this 200 million EVDA target, but an equally important for the year onwards after 2425. We are also confirming our long-term target in terms of revenue, 8 to 12 percent revenue growth, in terms of drop-through with a 50 percent objective of revenue to drop-through into a VDA, but also in terms of CAPEX with 40 to 45 million euro CAPEX, of which 80 percent capitalized software. We also reiterating what was mentioned by Roxanne a few minutes ago, that we continue to be in a business where we are expecting a neutral working capital, the tax rate of around 24 to 26 percent, and this objective of being below 2.5 in terms of People will try to remind you what are the key elements which are helping us to confirm those midterm guidance.

Speaker Change: So it's a good transition for me to talk about guidance and long term targets. So here, we as I've mentioned reiterate 'twenty four 'twenty $5 $200 million.

Speaker Change: EBITDA target, but an equally important for the year onwards.

Speaker Change: After 'twenty four 'twenty five.

Speaker Change: We are also confirming our long term target in terms of revenue, 8% to 12% revenue growth in terms of.

Speaker Change: Drop through with a 50% objective over run.

Speaker Change: Revenue to drop through into EBITDA, but also in terms of capex with 40% to 45% to 45 million Euro capex of which 80% capitalized software.

Jacques: So I think what you have to keep in mind is Chinese recovery. It was 122% into one. And clearly we are seeing because of the weakness of the end, an attraction, a pull of attraction in Japan, which distort a little bit where the recovery happened in Japan less in Europe. But clearly with what I've just said, which is a softening or strengthening of the yen after the weak point of the yen that we have seen in July, clearly we can expect that in a couple of months we can see a more moderate growth in Japan and probably better growth in Europe with this change in the currency in Japan.

Speaker Change: We also re Jerry team, which was mentioned by hooks on should we need to go that we continue to be in a business, where we expecting a neutral working capital with tax rate of around 24% to 26% and this objective of being below two five in terms of leverage.

Speaker Change: Sure.

Speaker Change: [laughter] couple slide to remind you.

Speaker Change: What.

Speaker Change: Are the key element.

Speaker Change: Sure.

Speaker Change: Helping us to confirm Booz midterm guidance first of all.

Jacques: First of all, a growth expected of 10% to 14% in terms of long-term C's growth, which has two components, one which is really the market. So here we're not talking about the luxury market, we're talking about the overseas luxury market with an expectation of growth of 6 to 8%. And basically, on top of that, four to six points of growth, which are coming from management initiative, digitalization, gain of new clients, and also opening of new countries. So a kind of balance growth between market and company initiative, and very much in line with what was delivered pre-COVID, which was 14%, which is a graph on the left.

The gross expected.

Speaker Change: Of 10% to 14% in terms of long term sheets gross.

Speaker Change: Which has.

Speaker Change: Two components, one of which is really the market. So here, we're not talking about the luxury market, we're talking about the overseas luxury market we.

Jacques: So that was really the latest trend to conclude, like I said, that July has been quite good and in line, I would say, with our expectation. With that in mind, and as I was mentioning before, Q1 being really strong, July being a very strong also, we have reiterated our financial guidance of 200 million as mentioned by Roxanne. But despite that, we see no rewriting of the Global Blue shares. And so with that in mind, again, strong operation performance, financial guidance, reaffirm, and a happy day there, very soon, and no impact on the share price.

Speaker Change: Expectation of gross of 6% to 8%.

Speaker Change: And basically on top of that four to six points of growth, which are coming from management initiative.

Speaker Change: The digitalization journey of new clients and also opening of new countries. So the general balance.

Gross between market and company initiative and very much in line with what was delivered pre COVID-19.

Speaker Change: Which was 14% which is the graph on the left.

Jacques: In terms of translation into this six-sets-in-store into revenue, we are expecting 7 to 11% revenue growth with two elements which are negatively impacting the C's growth, which is pricing evolution, even though we have seen in the presentation of oxen that it was zero for this quarter, but we maintain a project approach of an impact of 113 basis points per year. And secondly, a negative mixed effect coming from merchant or countries or continent. You have seen also in Q1 that if we strip out the mixed effect between EPAC and Europe, which we call continental effect, the rest of the effects were positive.

Speaker Change: In terms of translation into this six says in store into revenue.

We are expecting 7% to 11% revenue growth.

Jacques: The board of directors have decided yesterday to launch a 10 million share buy-back program, a program which will be for six months, and where the main shareholders Silverlake and Patent's Group will not participate. This program translates really the confidence of the company and the management on, I would say, our operational performance from now, from today, but also for the year. And also the strong delivery of cash flow, which helped us to deliver, to deliver the business.

Speaker Change: Two element.

Speaker Change: Which are negatively impacting to seize growth, which is pricing evolution, even though we have seen.

Speaker Change: In the presentation of OXXO that it was zero for this quarter, but we maintain a prudent approach drove an impact of 130 basis point per year.

Speaker Change: Secondly, the negative mixed effect.

Speaker Change: Coming from matured all countries. All confident you have seen also in Q1 that if we strip out the.

Speaker Change: Mixed effect between APAC, and Europe, which we call continuing to affect the rest of the effects were positive I E. We are seeing a normalization of those in fact.

Jacques: I.e. We are seeing a normalization of those impacts.

Jacques: So it's a good transition for me to talk about guidance and long-term target. So here we, as mentioned, reiterated 2425 with this 200 million EVDA target, but an equally important for the year onwards after 2425. We are also confirming our long-term target in terms of revenue, 8 to 12 percent revenue growth, in terms of drop-through with a 50 percent objective of revenue to drop-through into a VDA, but also in terms of CAPEX with 40 to 45 million euro CAPEX, of which 80 percent capitalized software.

Speaker Change: So from that point of view, we're sort of Q1 was very reassuring.

Jacques: So, from that point of view, also the Q1 was very reassuring in our capacity to reach those figures for next year. Also a guidance in terms of payment, which is 9 to 13% both in terms of set-in-store and revenue, and there also a good combination of macro growth coming from the market, 5 to 7%, and the rest, which is 4 to 6% coming from management initiative.

Speaker Change: To reach Zeus.

Speaker Change: <unk> figures for next year.

Speaker Change: Also our guidance in terms of payment, which is 9% to 13% boost in terms of sets in store and revenue and they're also a good combination of macro growth coming from the buckets, 5% to 7% and the rest.

Speaker Change: Which is four.

Speaker Change: Two 6% coming from management initiative and they also.

Jacques: And there are also the guidance, which is very in line with what has been the average pre-2019. Last but not least, I remind you that global growth will hedge against one of the inflation. We have seen it in the last two years. It has boosted the set-in-store recovery for global blue as the luxury bonds and entry their price at a higher speed than the inflation.

Speaker Change: The guidance, which is very in line with what has been delivered pre 2019.

Jacques: We also reiterating what was mentioned by Roxanne a few minutes ago, that we continue to be in a business where we are expecting a neutral working capital, the tax rate of around 24 to 26 percent, and this objective of being below 2.5 in terms of People will try to remind you what are the key elements which are helping us to confirm those midterm guidance. First of all, a growth expected of 10% to 14% in terms of long-term C's growth, which has two components, one which is really the market, so here we're not talking about the luxury market, we're talking about the overseas luxury market with an expectation of growth of 6 to 8%.

Speaker Change: Last but not least I remind you that global Luis will hedge against one.

Speaker Change: The inflation, we have seen it in the last two years. It has boosted the sales in store recovery for global Blue.

Speaker Change: Has the luxury brands have increased their price at all.

Hi is higher speed than the inflation, but also we are which is probably more important.

Jacques: But also we are, which is probably more important today, hedge against the recession. You have here figures of the last European large recession in 2020, 2008-2010, where you see that tax reshopping was basically posting flat year-on-year growth versus domestic market for luxury, which was negative by excess. And there also, you understand why. You know why it's clearly because our customer base is, I would say, less sensitive to recession. 70% of the consumers are what we call iNetwork individual affluence. And therefore, they are less, more resilient and less subject to recession.

Speaker Change: The hedge again the recession you adhere figures over the last.

Speaker Change: European large recession in 'twenty, and 2008, 2010, where you see that the tax free shopping was.

Speaker Change: Basically boosting flat year on year, Bruce that's just domestic market.

Speaker Change: <unk>, which was negative by <unk> and there were so you understand why you know why it's clearly because.

Jacques: And basically on top of that, four to six points of growth which are coming from management initiative, digitalization, gain of new clients, and also opening of new countries. So a kind of balance growth between market and company initiative, and very much in line with what was delivered pre-COVID, which was 14% which is a graph on the left. In terms of translation into this six-sets-in-store into revenue, we are expecting 7 to 11% revenue growth with two elements which are negatively impacting the C's growth, which is pricing evolution, even though we have seen in the presentation of oxen that it was zero for this quarter, but we maintain a project approach of an impact of 113 basis points per year.

Speaker Change: Our customer base is.

Speaker Change: I'd say less sensitive to recession, 70% of the consumer are what we call our network and give you accurate.

Speaker Change: And therefore they.

Speaker Change: They are less.

Speaker Change: More resilient and less subject to restrictions.

Jacques: So, just to have that in mind.

Speaker Change: Just to have that in mind.

Jacques: And obviously, to conclude this presentation, you have heard already those figures, so I will not come back to the debate, just to reaffirm that the good quarter won in terms of revenue and ABDA, but also the good figures in July that have helped us to confirm our guidance of 200 million of ABDA and also have given us the confidence to announce the share buyback of 10 million, which has been approved by the board yesterday.

Speaker Change: And obviously to conclude this presentation you have heard already those figures so I will not come back to the to the to.

Speaker Change: To the extent, but just to reaffirm that the good quarter one.

In terms of revenue and EBITDA, but also the <unk>.

Speaker Change: Good figures in July as a help us to confirm our guidance of 200 million of EBITDA and also us gives us the.

Speaker Change: The confidence to announce the share buyback over the $10 billion.

Speaker Change: Which has been approved by the board yesterday with that in mind.

Operator: With that in mind, Roxanne and myself, we remain at your disposal for any one and one.

Speaker Change: And myself, we remain at your disposal for any one and one.

Operator: Thank you for that, and let's meet again for you too.

Speaker Change: Thank you for that and.

Speaker Change: Let's meet again for Q2.

Speaker Change: [music].

Jacques: And secondly, a negative mixed effect coming from merchant or countries or continent. You have seen also in Q1 that if we strip out the mixed effect between EPAC and Europe, which we call continental effect, the rest of the effects were positive. I.e, we are seeing a normalization of those impacts. So from that point of view, also the Q1 was very reassuring in our capacity to reach those figures for next year. Also a guidance in terms of payment, which is 9 to 13% both in terms of set-in-store and revenue, and there also a good combination of macro growth coming from the market, 5 to 7% and the rest, which is 4 to 6% coming from management initiative.

Jacques: And there are also the guidance, which is very in line with what has been the average pre-2019. Last but not least, I remind you that global growth will hedge against one of the inflation. We have seen it in the last two years. It has boosted the set-in-store recovery for global blue as the luxury bonds and entry their price at a higher speed than the inflation. But also we are, which is probably more important today, hedge again, the recession.

Jacques: You have here figures of the last European large recession in 2020, 2008-2010, where you see that tax reshopping was basically posting flat year-on-year growth versus domestic market for luxury, which was negative by excess. And there also, you understand why. You know why it's clearly because our customer base is, I would say, less sensitive to recession. 70% of the consumer are what we call iNetwork individual affluence. And therefore, they are less more resilient and less subject to recession. So, just to have that in mind.

Jacques: And obviously to conclude this presentation you have heard already those figures so I will not come back to the to the to the debate just to to to reaffirm that the good quarter won in terms of revenue and ABDA but also the good figures in July that has helped us to confirm our guidance of 200 million of ABDA and also have given us the confidence to announce the share by back of a 10 million which has been approved by the board yesterday.

Operator: With that in mind Roxanne and myself we remain at your disposal for any one and one.

Operator: Thank you for that and let's meet again for you too.