Half Year 2026 Quadient SA Earnings Call

September 23, 2026

Laura Paxton: Good evening, everyone. Welcome to Quadient's H1 2026 results presentation. I am Laura Paxton, Quadient's Head of Investor Relations. Today's presentation will be hosted by Geoffrey Godet, our CEO, and Laurent du Passage, our CFO. The agenda for today's call is on slide three. As usual, there will be an opportunity to ask questions at the end of the presentation. You can either submit your questions in writing through the web or ask questions live by dialing into the conference call. Thank you very much. With that, over to you, Geoffrey.

Speaker #1: Good evening, everyone. Welcome to Quadient's first half 2026 results presentation. I'm Laura Paxton, Quadient's Head of Investor Relations. Today's presentation will be hosted by Geoffrey Gaudet, our CEO, and Laurent Dupassage, our CFO.

Speaker #1: The agenda for today's call is on Slide 3. As usual, there will be an opportunity to ask questions at the end of the presentation.

Speaker #1: You can either submit your questions in writing through the web or ask questions live by dialing into the conference call. Thank you very much, and with that, over to you, Geoffrey.

Speaker #2: Thank you, Laurent. Good evening, everyone. Let me remind you, to get started, of the strategic direction that we set at the beginning of the financial year.

Geoffrey Godet: Thank you, Laura. Good evening, everyone. Let me remind you to get started of the strategic direction that we set at the beginning of the financial year, since everything else follows on from it. The pivot to digital is not new for Quadient, as you know. We have been preparing it for years. Demand for digital automated business and financial communication keeps building up. Artificial intelligence is accelerating it. The digitalization of financial workflows is also accelerating, and so are the invoicing mandate coming across Europe. We set a clear objective, digital becomes Quadient's largest and most profitable solution by 2030. This is where the growth is, this is where our capital and our focus belong. We reinforced the executive committee with four digital business leaders at the beginning of the year, and I personally took over direct leadership of the digital business.

Speaker #2: Since everything else follows on from it, the pivot to digital is not new for Quadient, as you know. We've been preparing for it for years.

Speaker #2: Demand for digital automated business and financial communication keeps building up. Artificial intelligence is accelerating it. The digitization of financial workflows is also accelerating. And so are the invoicing mandates coming across Europe.

Speaker #2: And we set a clear objective: digital becomes Quadient's largest and most profitable solution by 2030. So this is where the growth is. This is where capital and our focus belong.

Speaker #2: We reinforced the executive committee with four digital business leaders at the beginning of the year, and I personally took over direct leadership of the digital business.

Speaker #2: Additionally, this year, on July 20th, we announced that we were conducting a strategic review of our Locus business. I am happy to report that this review is now complete.

Geoffrey Godet: Additionally, this year, on 20 July, we announced that we were conducting a strategic review of our Lockers business. This review, I am happy to report that is now complete, and I will take you through the outcome on the next slide. First of all, let us look at what the Locker team has built. Moving back to 2018, Lockers was small, we would say, around 2,000 Lockers and around EUR 6 million in revenue. Then quickly after that, as we set our strategy, we acquired Package Concierge, a US-based company in 2019. From there, progressively, we expanded across the US, Canada, Japan, the UK, and France. We also made another acquisition called Package Concierge, another US-based company, to consolidate the US market in 2024. In 2025, as a summary, the business delivered EUR 114 million of revenue.

Speaker #2: And I will take you through the outcome on the next slide. But first of all, let's look at what the local team has built.

Speaker #2: So, moving back to 2018, Locus was small—we would say around 2,000 Locus—and around $6 million in revenue. Then, quickly after that, as we set our strategy, we acquired Parcel Pending, a US-based company, in 2019.

Speaker #2: And then, from there, progressively, we expanded across the US, Canada, Japan, the UK, and France. We also made another acquisition called Parcel Concierge, another US-based company, to consolidate the US market in 2024.

Speaker #2: And in 2025, as a summary, the business delivered 114 million euros of revenue. So just as a quick reminder, this represented a 22.4% gross versus 2024, and a reported basis.

Geoffrey Godet: Just as a quick reminder, this represented a 22.4% growth versus 2024 on a reported basis, and represented also 11% of Quadient revenue. The EBITDA margin was 5% last year, which was up 4.4 points, after already passing the break-even point in 2024. If I was to summarize, in seven years, we multiplied 19 times the revenue and around 14 times install base of location of Lockers worldwide. We could say that we have today a mature asset, profitable and at scale. The number one position in the US and in Japan, and a UK network that scaled actually very fast in the last three years. We could say that this business has delivered on its promise. Just take the opportunity to thank, obviously, all our partners and our customers, and most importantly, the Quadient Locker team that built up this business for us.

Speaker #2: And it also represented 11% of Quadient's revenue. The EBITDA margin was 5% last year, which was up 4.4 points after already passing the break-even point in 2024.

Speaker #2: So, if I was to summarize, in seven years, we multiplied 19 times the revenue and around 14 times the install base of locations of Locus worldwide.

Speaker #2: We could say that we have today a mature asset, profitable and at scale; the number one position in the US and in Japan, and a UK network that has actually scaled very fast in the last three years.

Speaker #2: We could say that this business has delivered on its promise. So, I just want to take the opportunity to thank, obviously, all our partners and our customers, and most importantly, the Quadient LOCUS team that built up this business for us.

Speaker #2: And this is the context in which we ran the strategic review this summer. So now, the time is right to consider what is next for Locus.

Geoffrey Godet: This is the context in which we ran the strategic review this summer. Now the time is right to consider what is next for Lockers. Let us look at the outcome. Going to slide 6. In conclusion, I think the review produced two major outcomes, and you can see them on the left. The first, following a competitive process, we have signed an agreement to sell our UK operation, our open network, to a company called IDS for EUR 65 million. The second outcome is that we also have launched the sale process for the rest of our Locker business. As a result, the Locker solution is now presented in accordance with the accounting rule called IFRS 5 in this presentation and in our H1 financial statement. Consequently, 2025 figures have been restated on the same basis. Laurent will take you through all those changes and their impacts.

Speaker #2: So let's look at the outcome. We're going to slide 6. In conclusion, I think the review produced two major outcomes, and you can see them on the left.

Speaker #2: The first, following a competitive process, we have signed an agreement to sell our UK operation, our open network, to a company called IDS for 65 million euros.

Speaker #2: The second outcome is that we have also launched a sales process for the rest of our local business. As a result, the LOCUS solution is now presented in accordance with the accounting rule called IFRS 5.

Speaker #2: In this presentation, and in our first half financial statement. Consequently, 2025 figures have been restated on the same basis. Laurent will take you through all those changes and their impacts.

Speaker #2: So let's start with the sale of the UK Open Network to IDS, which, as a reminder, is the owner of Royal Mail, and also, importantly, is an affiliate of a company called Visa Equity Investment, which is a shareholder of QUADIENT.

Geoffrey Godet: So let's start with the sale of the UK open network to IDS, which as a reminder, is the owner of Royal Mail, and also importantly, is an affiliate of a company called Vesa Equity Investment, which is a shareholder of Quadient. Let me come back to the price. The price is EUR 65 million. I would highlight a few key points. The UK was the least mature of our three key geographies, with an expected 2026 revenue, a little bit more than EUR 10 million, and it was doubling. We had a fast growth, we were doubling in size, which was 25, as we were in the ramp-up period of getting more and more usage. Given this early stage of development, because our larger investments are usually on a 10-year cycle, so it's the first few years, it was naturally the most capital consuming of our open network bases.

Speaker #2: So let me come back to the price. The price is €65 million. I would like to highlight a few key points. The UK was the least mature of our three key geographies, with expected 2026 revenue a little bit more than €10 million, and it was doubling as we had a fast growth rate—doubling in size versus 2025—as we were in the ramp-up period of getting more and more usage.

Speaker #2: And given this early stage of development, because our locus investments are usually on a 10-year cycle, so in the first three years, it was naturally the most capital-consuming of our open network basis.

Speaker #2: Getting that price at that stage, at that maturity of the development, provides us with a very strong return. The agreement—I want to stress this—came out of a competitive process that was run, obviously, with the advisors that we mentioned to you at the beginning of July.

Geoffrey Godet: Getting that price on that stage, on that maturity of the development, provided us with a very strong return. The agreement, I want to stress this, came out of a competitive process that was run obviously with the advisors that we mentioned to you at the beginning of July. We had a chance to consider multiple offers that we have received, and naturally, after reviewing them, the board of Quadient concluded that this offer delivered the best value for the UK network and was in our corporate interest and its stakeholders, all our shareholders, and therefore approved the transaction unanimously yesterday. We expect this transaction, after the signing yesterday, to close before the end of 2026, hopefully even sooner. Let's move to the next point that I want to talk to you about the consequence on leverage for Quadient.

Speaker #2: We had a chance to consider multiple offers that we have received. And naturally, after reviewing them, the board of Quadient concluded that this offer delivered the best value for the UK network and was in our corporate interest, and its stakeholders, all our shareholders, and therefore approved the transaction unanimously yesterday.

Speaker #2: We expect this transaction, after the signing yesterday, to close before the end of 2026—hopefully even sooner. So, let's move to the next point that I want to talk to you about: the consequences on leverage for Quadient.

Speaker #2: We expect the proceeds to take our leverage ratio targets, which exclude leasing, from 1.5 times—our previous guidance—to 1.2 times. Let me be precise on this one.

Geoffrey Godet: We expect the proceeds to take our leverage ratio target, which excludes leasing, from 1.5 times, which was our previous guidance, to 1.2 times. Let me be precise on this one. These improvements come from the UK transactions alone. It assumes nothing about the rest of the process and nothing about the CapEx, which is my next point. If I step back a little bit on our capital expenditure at the Quadient level, and to be clear, we focus on the local business as a whole, even though the UK represented a large portion of the CapEx of the Lockers, it more or less now will remove around EUR 120 million of Lockers CapEx over the next five years. EUR 120 million that are no longer required, and it's a capital that we can now redirect to new priorities and focus.

Speaker #2: These improvements come from the UK transactions alone. It assumes nothing about the rest of the process, and nothing about the capex, which is my next point.

Speaker #2: So, if I step back a little bit on our capital expenditure at the Quadient level—and to be clear, we focus on the Locus business as a whole—even though the UK represented a large portion of the CapEx for Locus, it more or less now will remove around €120 million of Locus CapEx over the next five years.

Speaker #2: 120 million euros. There are no longer required, and it's a capital that we can now redirect to new priorities and focus. My next point is that we expect to, obviously, additional proceeds from the sale of the this is in addition to the proceeds from the UK.

Geoffrey Godet: My next point is that we expect, obviously, additional proceeds from the sale of the rest of the Locker business, and this is in addition to the proceeds from the UK. This includes, obviously, for the rest of the Locker, a Japanese base and a North American operation, to cover where we have. These are our largest and much more profitable Locker networks. They hold a leading position, the number 1 position in their respective markets. We are currently engaging with potential buyers, and obviously, like we're doing right now in the UK, we will update the market in due course as we make progress. Put all of this together, and we have what we could say now, a strategic and financial flexibility that we simply did not have six months ago. Let me now hand it over to Laurent for the H1 financials. Laurent.

Speaker #2: This includes, obviously, for the rest of the locus, our Japanese base, and our North American operation, to cover what we have. These are our largest and much more profitable local networks—their whole leading position, the number one position in their respective markets.

Speaker #2: We are currently engaging with potential buyers and, obviously, as we're doing right now in the UK, we will update the market in due course as we make progress.

Speaker #2: With all of this together, we now have what we could call strategic and financial flexibility that we simply did not have six months ago.

Speaker #2: So let me now hand it over to Laurent for the first half financials. Laurent.

Speaker #3: Thank you, Geoffrey. Good evening. And before going into the numbers, a word on presentation: just following the strategic review, as mentioned by Geoffrey, the Locus business is reported in accordance with IFRS 5.

Laurent du Passage: Thank you, Geoffrey. Good evening. Before going into the numbers, a word on presentation. Just following the strategic review, as mentioned by Geoffrey, the Lockers business is reported in accordance to IFRS 5 in our H1 financial statement. The European private local network, which we are retaining as they are largely managed through mail employees, has been reclassified within the Mail segment. All 2025 comparatives shown today have been restated on the same basis, except if explicitly mentioned, so that the figures you see are fully comparable. This reclassification strongly benefits to our EBITDA and EBIT at group level, as Lockers are dilutive up to the Quadient margin. It brings about 130 basis points on EBITDA and about 230 basis points on current EBIT margin. On the revenue side, as you can see on the slide, the transition post IFRS 5 is very straightforward.

Speaker #3: In our half-year financial statement, the European private locus network, which we are retaining as it is largely managed through Mail employees, has been reclassified within the Mail segment.

Speaker #3: All 2025 comparatives shown today have been restated on the same basis, except where explicitly mentioned, so that the figures you see are fully comparable.

Speaker #3: This reclassification strongly benefits our EBITDA and EBIT at group level, as Locus are dilutive to Quadient's margin. It brings about 130 basis points on EBITDA and about 230 basis points on current EBIT margin.

Speaker #3: On the revenue side, as you can see on the slide, the translation post-IFRS 5 is very straightforward. Digital scope remains unchanged, and mail sees about 3 million, of revenue for the private locus network being added into H1 2026.

Laurent du Passage: Digital scope remains unchanged, Mail sees about EUR 3 million of revenue for the private local network being added into H1 2026. On that basis, Quadient delivered EUR 448 million of revenue in the first half of 2026, representing a 2% organic decline compared to the same period last year. Digital confirmed its gross momentum up 6.7% organically at EUR 146 million, while Mail was down 5.7% at EUR 302 million. From a geographic perspective, North America, our largest region, was essentially flat at EUR 254 million. Many European countries were down by 4.4% at EUR 165 million with, as usual, we will see that further later, a stronger Mail underlying decline in the geography. International is down by 4.9% at EUR 29 million, mostly driven by Mail. Turning now to profitability. While as just mentioned, total EBITDA margin is improved post IFRS 5 due to the dilutive EBITDA from Lockers.

Speaker #3: On that basis, Quadient delivered €448 million of revenue in the first half of 2026, representing a 2% organic decline compared to the same period last year.

Speaker #3: Digital confirmed its gross momentum at 6.7% organically at €146 million, while Mail was down 5.7% at €302 million. From a geographic perspective, again, North America, which is our largest region, was essentially flat at €254 million.

Speaker #3: Main European countries were down by 4.4%, at €165 million, with—as usual; we'll see that further later—a stronger mail underlying decline in this geography.

Speaker #3: International is down by 4.9% at 29 million, mostly driven by Mail. Turning now to profitability: while, as just mentioned, total EBITDA margin is improved post-IFRS 5 due to the dilutive EBITDA from Locus, EBITDA at Digital and Mail level are impacted by some Locus transit costs and dis-synergies, reallocated to both Solutions and impacting EBITDA margin by about 0.6 points. On top of which you have a small dilutive private network impact on the Mail side for 0.5 points.

Laurent du Passage: EBITDA at Digital and Mail level are impacted by some Lockers transit cost and synergies reallocated to both solutions and impacting EBITDA margin by about 0.6 points, on top of which you have a small dilutive private network impact on the Mail side for 0.5 points. Group EBITDA margin stands at 21.5%. It is down 0.8 points compared to last year, mostly due to the erosion on Mail side and unfavorable mix effect. Digital margin was stable at 14.5% despite the implementation costs linked to the French invoice in Go Live and of course, the Forex. Current EBIT for the period came in at EUR 57 million, a 5.9% organic decline due to Mail. Let us now turn to the revenue bridge on slide 9.

Speaker #3: Group EBITDA margin stands at 21.5%. It's down 0.8 points compared to last year, mostly due to the erosion on the Mail side and unfavorable mix effect.

Speaker #3: Digital margin was stable at 14.5% despite the implementation cost linked to the French invoicing go-live, and of course, Geoffrey X. Current EBIT for the period came in at 57 million euros, a 5.9% organic decline due to mail.

Speaker #3: Let's now turn to the revenue bridge on slide 9. Starting on the left is €465 million restated revenue for last year's H1. This bridge shows the continued rebalancing of our portfolio.

Laurent du Passage: Starting on the left is EUR 465 million restated revenue for last year H1. This bridge shows the continued rebalancing of our portfolio. Digital contributed EUR 9 million of additional revenue, partially offsetting the EUR 19 million of organic decline in Mail. The scope effect added EUR 2 million from the acquisitions of both Serensia and Gemalto last year, and CDP Communications in December 2025. On the right-hand side, currency had a EUR 10 million negative impact, and it is all coming from Q1, meaning on Q2, no currency impact on the bridge. All-in reported revenue decline of 3.7% and by 2% on an organic basis. Moving now to the current EBIT bridge on slide 10.

Speaker #3: Digital contributed €9 million of additional revenue, partially offsetting the €19 million of organic decline in Mail. The scope effect added €2 million from the acquisitions of both Serendia and June last year, and CDP Communication in December 25.

Speaker #3: On the right-hand side, currency had a €10 million negative impact, all coming from Q1. This means that in Q2, there was no currency impact on the bridge.

Speaker #3: All-in, reported revenue declined by 3.7%, and by 2% on an organic basis. Moving now to the current EBIT bridge on slide 10: From the €64 million restated current EBIT last year, digital EBITDA gross of €3 million partly offsets the €6 million decline in mail EBITDA, and you have an additional €1 million euro of organic increase in depreciation and amortization, notably tied to digital R&D.

Laurent du Passage: From the EUR 64 million restated current EBIT last year, digital EBITDA growth of EUR 3 million partly offsets the EUR 6 million decline in mail EBITDA. You have an additional EUR 1 million of organic increase in depreciation and amortization, notably tied to digital R&D. Currency accounted for EUR 3 million of negative impact on the current EBIT, while the scope effect was relatively neutral at the EBITDA level. As a result, current EBIT for the H1 stands at EUR 57 million, down 5.9% on an organic basis. Let's now move into the details of the performance by solution, starting with digital.

Speaker #3: Currency accounted for €3 million of negative impact on the current EBIT, while the scope effect was relatively neutral at the EBITDA level. As a result, current EBIT for the first half stands at €57 million, down 5.9% on an organic basis.

Speaker #3: Let's now move into the details of the performance-by solution, and starting with digital. On slide 12, so before reviewing specifically the half-year, let me put our digital performance into a longer-term perspective and note that those figures are prior to the application of IFRS 5 due to the locus that are due to the locus business.

Laurent du Passage: On slide 12, before reviewing specifically the half year, let me put our digital performance into a longer term perspective. Note that those figures are prior to the application of IFRS 5 that are due to the Lockers business for the sake of the consistency of those figures across the long time period. On the bottom left chart, our annual recurring revenue has grown from EUR 109 million in 2019 to EUR 264 million at the end of July 2026, a compound annual growth rate of about 15% per annum with a remarkably regular improvement over the period. The chart on the bottom right now shows the same story on quarterly revenue, with subscription-related revenue growing at 16% compound annual growth rate since 2020.

Speaker #3: For the sake of consistency of those figures across the long-time period, on the bottom left chart, our annual recurring revenue has grown from €109 million in 2019 to €264 million at the end of July 2026, a compound annual growth rate of about 15% per annum, with a remarkably regular improvement over the period.

Speaker #3: The chart on the bottom right now shows the same story on quarterly revenue, with subscription-related revenue growing at 16% compound annual growth rate since 2020—a logical, similar trend compared to the ARR—and now represents 87% of digital revenue at the end of H1 2026.

Laurent du Passage: A logical similar trend compared to the ARR, now represents 87% of digital revenue at the end of H1 2026. At the top left side, you can see the profitability trajectory with EBITDA rising from around EUR 20 million over a 12-month period at the beginning of the chart, to more than EUR 50 million if you take both H2 last year and H1 this year for the past 12 months. Over to you now, Geoffrey, on slide 13.

Speaker #3: And at the top left side, you can see the profitability trajectory with EBITDA rising from around €20 million over a 12-month period at the beginning of the chart, and to more than €50 million if you take both H2 last year and H1 this year, so the past 12 months.

Speaker #3: Over to you now, Geoffrey, on slide 13.

Speaker #2: Thank you, Laurent. As I mentioned at the beginning of the call, our focus is on our digital solution. I think we can say that we have built a comprehensive and differentiated B2B platform centered around business and financial communication.

Geoffrey Godet: Thank you, Laurent. I mentioned at the beginning of the call that our focus is on our digital solution. I think we could say that we have built a comprehensive and differentiated B2B platform centered around business and financial communication. We bring it all together in one connected experience, customer communication management, invoicing, account payable, account receivable, payment, and cash visibility. Once a customer is on the platform, every module, every product offers opportunities for upsell, making our solution stickier for the customer. Compliance with the regulatory or financial is the entry point. It's not the destination. Every change in the regulations offers new opportunities for us. The invoicing mandate in Europe is a case in point. This is a clear regulatory catalyst that offers significant growth opportunities for digital solution. Take the example of France. It just went live with its invoicing mandate on 1 September.

Speaker #2: We bring it all together in one connected experience: customer communication management, e-invoicing, accounts payable, accounts receivable, payment, and cash visibility. Once a customer is on the platform, every module, every product offers an opportunity for upsell, making our solution stickier for the customer.

Speaker #2: Compliance, whether regulatory or financial, is the entry point—it's not the destination. And every change in regulations offers new opportunities for us. The invoicing mandate in Europe is a case in point.

Speaker #2: This is a clear regulatory catalyst that offers significant growth opportunities for digital solutions. To take the example of France, it just went live with its e-invoicing mandate on September 1st.

Speaker #2: Germany follows in 2027; the UK in 2029; and the broader European framework in 2030. Each one of those deadlines extends our addressable base, market by market, over several years.

Geoffrey Godet: Germany follows in 2027, the UK 2029, and the broader European framework in 2030. Every one and each one of those deadlines extends our addressable base market by market over several years. This is not a single event in one country. It is a sequence for which we have been preparing for, in which we reinforce the synergies between our mail and digital activities. Our mail solution brings a large installed base of business customers who will have to digitalize their financial processes. What goes through a franking machine and folders inserters are mainly invoices, which will have to find the delivery electronically in the future. We are therefore ideally positioned to support our mail customers into their digital transformation. Moving on to the next slide. Let me give you the facts on invoicing in France, where the Go Live happened on 1 September, so barely 3 weeks ago.

Speaker #2: This is not a single event in one country. It's a sequence for which we have been preparing, and through which we reinforce the synergies between our mail and digital activities.

Speaker #2: Our mail solution brings a large installed base of business customers who will have to digitalize their financial processes. What goes through a franking machine, and for those insurers, are mainly invoices.

Speaker #2: Which will have to find the delivery electronically in the future. We're therefore ideally positioned to support our mail customers and to support their digital transformation.

Speaker #2: Moving on to the next slide, let me give you the facts on e-invoicing in France, where the go-live happened on September 1st—so, barely three weeks ago.

Speaker #2: Since that day, every business must be able to receive electronic invoices. Large and mid-sized companies must issue them. The issuance obligation extends to SMEs on September 27, which is a year from now.

Geoffrey Godet: Since that day, every business must be able to receive electronic invoices. Large and mid-sized companies must issue them. The issuance obligation extends to SME in September 2027, which is a year from now. End of 2028 will be the first full year of the widened scope. Where do we stand? As of 21 September, just a few days ago, more than 950,000 entities were registered with Serensia by Quadient. 950,000, so we are a little bit short of 1 million entities. That also includes entities registered with our partners. As a reminder, we go to market directly and through white label. For a business we acquired 15 months ago, this is a strong commercial success as we currently are one of the largest platform in term of registered entities.

Speaker #2: The end of 2028 will be the first full year of the widened scope. Now, where do we stand? As of September 21st, just a few days ago, more than 950,000 entities were registered with Serendia by Quadient.

Speaker #2: 950,000, so we're a little bit short of a million entities. That also includes entities registered with our partners. As a reminder, we go to market directly and through white label.

Speaker #2: For a business we acquired 15 months ago, this is a strong commercial success, as we are currently one of the largest platforms in terms of registered entities.

Speaker #2: Now, there's two different categorizations. For example, SIREN, or on SIRET numbers of companies or entities, slightly less than 50% of the companies and entities in France, have registered with an e-invoicing platform to date.

Geoffrey Godet: Now, there are 2 different categorization based on SIREN or on SIRET numbers of companies or entities. Slightly less than 50% of the companies and entities in France have registered with an invoicing platform to date. For the one that have registered with the companies or entities, we can estimate that we currently have between 13% to 19% market share. A market share that is now much bigger than we have ever anticipated. Contracted annual invoices now stand at around 350 million. This is to be compared to a total national wide number of invoices that we estimate from the French government between 2 to 2.5 billion of B2B invoices exchanged annually. We have a commercial momentum that is very strong. The invoicing booking in France grew elevenfold year on year in Q2. Let me just repeat this. E-invoicing booking in France grew elevenfold.

Speaker #2: For the one that have registered, where the companies or entities we can estimate that we currently have between 13 to 19% market share. A market share that is now much bigger than we have ever anticipated.

Speaker #2: Contracted annual invoices now stand around 350 million. This is to be compared to a total national number of invoices that we estimate from the French government between 2 to 2.5 billion of B2B invoices exchanged annually.

Speaker #2: We have a commercial momentum that is very strong. E-invoicing booking in France grew 11-fold year on year in the second quarter. Let me just repeat this.

Speaker #2: E-invoicing booking in France grew 11-fold. This includes a multi-million euro white label agreement. Now, let's go on actual volumes. I want to be measured.

Geoffrey Godet: This includes a multi-million euro white label agreement. Now, let us go on actual volumes. I want to be measured. We processed in the last few weeks, in the last 3 weeks, only 700,000 invoices. We expect the ramp-up to remain slow, and probably slow until the end of the year, as there are only a few platforms fully operational in France, limiting the digital exchange of invoices, right? Somebody registered with us, they would like to send an invoice to a company that is not yet registered, but the exchange cannot happen digitally still, right? So we need the entire market to be able to come together. So there will be an exponential acceleration progressively, but we are still in a slow ramp-up phase. Market is in just in its first few weeks. Many receiving platforms are still coming online.

Speaker #2: We process in the last few weeks, in the last three weeks, only 700,000 invoices. We expect the ramp-up to remain slow and probably slow until the end of the year as there are only a few platform fully operational in France.

Speaker #2: Limiting the digital exchange of invoices, right? Somebody registered with us that would like to send an invoice to a company that has not yet registered, but the exchange cannot happen digitally still, right?

Speaker #2: So we need the entire market to be able to come together. So there will be an exponential acceleration progressively, but we're still in a slow ramp-up phase.

Speaker #2: The market is just in its first few weeks. Many receiving platforms are still coming online. A lot of the different platforms that had obtained their registration are not live yet, and they will likely come in the next few months.

Geoffrey Godet: A lot of the different platforms that had obtained their registration are not live yet, and they will likely come in the next few months. Adoption will take time. What matters at this stage is the following. We are certified, we are live, we are fully operational, and I would add that we are part of a limited number of fully functioning platforms. We are operating without any incidents, and we have secured an already significant number of customers, so the volume will continue to follow. On monetization, the model is a subscription structured by deal type plus the monetization of the usage, numbers of transactions of invoices. If I focus on our direct go-to market, where we sell directly to companies, we offer a subscription fee plus an invoice volume commitment.

Speaker #2: Adoption will take time. So what matters at this stage is the following: we are certified, we're live, we're fully operational, and I would add that we are part of a limited number of fully functioning platforms.

Speaker #2: We are operating without any incidents, and we have secured an already significant number of customers. So, the volume will continue to follow. On monetization, the model is a subscription structured by deal type, plus the monetization of the usage numbers—transactions or invoices.

Speaker #2: So, if I focus on our direct go-to-market, where we sell directly to companies, we offer a subscription fee plus an invoice volume commitment. If I now focus on our white label customers, we offer them a subscription covering a committed volume.

Geoffrey Godet: If I now focus on our white label customers, we offer them a subscription covering a committed volume that will be guaranteed revenue for us. In both cases, sorry, invoices above the commitments will be billed per invoice. Invoicing is way more than just processing invoices. For us, it is a fantastic upsell opportunity within our digital platform. Let me explain to you why by turning to the next slide. The invoicing mandate brings customers to us in France, but also in other European countries as we build a proven track record of delivery and reliability. The opportunities around this initial invoicing service are what drives customers' retention in the long term and what helps grow our relationship with them. On our digital platform, e-invoicing is embedded with account payable automation. The customer gets approval and purchase order matching. He has an ERP-integrated workflows.

Speaker #2: There will be guaranteed revenue for us. And in both cases—sorry—invoices above the commitment will be billed per invoice. Now, e-invoicing is way more than just processing invoices.

Speaker #2: For us, it's a fantastic upsell opportunity within our digital platform. So let me explain to you why by turning to the next slide. The e-invoicing mandate brings customers to us in France, but also in other European countries, as we build a proven track record of delivery and reliability.

Speaker #2: The opportunities around this initial e-invoicing service are what drive customers' retention in the long term, and what help grow our relationship with them. On our digital platform, e-invoicing is embedded with accounts payable automation.

Speaker #2: So, the customer gets approval and purchase order matching. He's got ERP-integrated workflows. He's got payment control and compliance with e-reporting. They move from being just compliant to actually improving how they work.

Geoffrey Godet: He has payment control and compliance with EU reporting. They move from being just compliant to actually improve how they work. The benefits are tangible. Our published figure shows 5x average return on investment on those solutions. Invoice processing time cut by half. Approvals 56% faster. From there, we connect account payable with accounts receivable, and that gives a real-time view for a CFO of both sides of the cash cycle. In June, if you remember, we launched our AI-powered cash dashboard, which report now better forecasting and better working capital decision for those modern CFOs. Each new module deepens the relationship, and each one of them increase the value of the platform, which in turns for us into more upsell.

Speaker #2: And the benefits are tangible. Our published figure shows a five times average return on investment on those solutions. Invoice processing time is cut by half, approvals are 56% faster.

Speaker #2: From there, we connect accounts payable with accounts receivable, and that gives a real-time view for a CFO cycle. In June, if you remember, we launched our AI-powered cash dashboard, which now reports better forecasting and better working capital decisions for those modern CFOs.

Speaker #2: So each new module depends on the relationship, and each one of them increases the value of the platform, which in turn results in more upsell for us.

Speaker #2: Looking ahead, and to give you a sense of the proportion for the opportunity from e-invoicing, we're expecting revenue from e-invoicing to increase at a very fast pace from now to 2030.

Geoffrey Godet: Looking ahead, and to give you a sense of the proportion for the opportunity from e-invoicing, we are expecting revenue from e-invoicing to increase at a very fast pace from now to 2030. In terms of upsell into the financial automation, we expect the invoicing and financial automation solution combined to represent close to half of our European digital revenue by 2030. Another key point that I would like to stress with you is our solution is recognized, obviously, externally, and such across our customer journey. If I take a few examples, during the period, Quadient was named a leader by QKS Group in the SPARK Matrix for account payable automation for the third year running. In the same SPARK Matrix for account receivable application, and this time for the fifth time running. In both cases, specific recognition for AI-driven capabilities.

Speaker #2: In terms of upsell into financial automation, we expect the e-invoicing and financial automation solutions combined to represent close to half of our European digital revenue by 2030.

Speaker #2: Another key point I'd like to stress with you is our solution has been recognized, obviously, externally, and across our customer journey. So if I take a few examples, during the period, Quadient was named a leader by the QQS Group in the Spark Metrics for accounts payable automation for the third year running.

Speaker #2: In the same Spark metrics for the accounts receivable application—and this one, this time, for the fifth time running—in both cases, there was specific recognition for AI-driven capabilities.

Speaker #2: Moving to the next slide, I do not want us to lose sight of customer communication management. It remains the foundation of our digital business.

Geoffrey Godet: Moving to the next slide, I do not want us to lose sight of customer communication management. It remains the foundation of our digital business, and this ties together the financial automation and e-invoicing to the rest of Quadient's offering. Our performance remains very solid for our CCM business, especially in the US, where we have signed up several large deals in H1. Let me give you a few examples. We had a longstanding US financial services customer that signed a multiyear agreement to expand from a point solution to a full CCM platform. This is a multimillion-dollar commitment. Let me give you another example. A major healthcare customer expanded volumes by 75%, from 4 billion to 7 billion pages, and they consolidated onto Quadient, displacing competing solution again. Both of these are expansion within our existing enterprise or larger enterprise customer base, right?

Speaker #2: And this ties together the financial automation and e-invoicing to the rest of Quadient's offerings. Our performance remains very solid for our CCM business, especially in the U.S., where we have signed several large deals in H1.

Speaker #2: So let me give you a few examples. We had a long-standing US financial services customer that signed a multi-year agreement to expand from a point solution to a full CCM platform.

Speaker #2: This is a multi-million dollar commitment. I'll give you another example: a major healthcare customer expanded volumes by 75%, from 4 billion to 7 billion pages, and they consolidated onto Quadient, displacing the competing solution again.

Speaker #2: Now, both of these are expansions within our existing enterprise or larger enterprise customer base, right? In both cases, we're replacing somebody else, so it was a competitive win.

Geoffrey Godet: In both cases, we are replacing somebody else. It was a competitive win. For me, that is still the clearest evidence that this platform delivers at enterprise scale. Why do customers choose us? I will give you five top main reasons. Unified platform, flexible deployment, governance, compliance, and enterprise at scale. Similarly to the financial automation product, Quadient was also named a leader by the QKS Group in the SPARK Matrix for customer communication management for the sixth year in a row. We sit at the top right of the leader band on both customer impact and technology excellence. With that said, Laurent will now take you through the digital numbers.

Speaker #2: So, for me, that's still the clearest evidence that this platform delivers at enterprise scale. So, why do customers choose us? I'll give you the top five main reasons.

Speaker #2: Unified platform, flexible deployment, governance, compliance, and enterprise at scale. Similarly to the financial automation product, Quadient was also named a leader by the QQS Group in the Spark Metrics for customer communication management for the sixth year in a row.

Speaker #2: So, we sit at the top right of the leader band on those customer impact and technology excellence. With that said, Laurent will now take you through the digital numbers.

Speaker #1: Thank you, Geoffrey. So, digital revenue reached $146 million in the first half of '26, up 6.7% organically. Another recurring revenue increase brings it to $264 million, representing an annualized organic growth of 12.9% compared to the end of January '26.

Laurent du Passage: Thank you, Geoffrey. Digital revenue reached EUR 146 million in H1 2026. It is up 6.7% organically. Annual recurring revenue increased further to EUR 264 million, representing an underlying organic growth of 12.9% compared to the end of January 2026. It was driven by the momentum of bookings. It is up 20% in Q2 versus last year, related to French invoicing and by a solid performance in North America and CCM. It includes around EUR 5 million of contractually committed components related to invoicing. It also absorbs EUR 1 million of negative currency effect compared to January 2026. Subscription-related revenue continued to show a sustained growth. Non-recurring revenue improved markedly in Q2 compared to Q1, thanks to a more moderate decline in professional services revenue. On the right-hand side, EBITDA reached EUR 21 million, up 17% year on year on an organic basis, with an EBITDA margin stable at 14.5%.

Speaker #1: It was driven by the momentum of bookings; it's up 20% in Q2 versus last year, related to French invoicing and a solid performance in North America and CCM.

Speaker #1: It includes around $5 million of contractually committed components related to invoicing and also absorbs $1 million of negative currency effect compared to January '26.

Speaker #1: Subscription-related revenue continued to show sustained growth. Non-recurring revenue improved markedly in Q2 compared to Q1, thanks to a more moderate decline in profit and services revenue.

Speaker #1: On the right-hand side, EBITDA reached $21 million, up 17% year on year on an organic basis, with an EBITDA margin stable at 14.5%.

Speaker #1: It's a solid outcome given the increase in implementation costs tied to the French invoicing go-live, and we expect margin progression over the full year.

Laurent du Passage: It is a solid outcome given the increase in implementation costs tied to the French invoicing go-live, and we expect margin progression over the full year. On an organic basis, margin has increased by 130 basis points. Moving to mail on slide 18. The structural trend in mail is well understood, and it has not changed. What I want to show you here is different. Mail is not simply declining business that we manage for cash. It is an asset that is actively supporting the digital transition. In Europe, cross-sell of digital financial automation solutions to mail customers grew fourfold ahead of the French mandate. The mail base is doing exactly what we said it would do. It gives Quadient privileged access to business as they digitalize their financial processes. At the same time, we keep investing where customers ask us to.

Speaker #1: On an organic basis, margin has increased by 130 basis points. Now, moving to Mail on slide 18: The structural trend in Mail is well understood, and it has not changed.

Speaker #1: But what I want to show you here is different. Mail is not simply declining business that we manage for cash. It is an asset that is actively supporting the digital transition.

Speaker #1: In Europe, gross sales of digital financial automation solutions to Mail customers grew fourfold ahead of the French mandate. So the Mail base is doing exactly what we said it would do.

Speaker #1: It gives Quadient privileged access to businesses as they digitalize their financial processes. At the same time, we invest where customers ask us to.

Speaker #1: We launched the IX9, a premier mailing system in France, which extends our leadership at the high end of the market. We secured a major US public sector deployment for certified mail.

Laurent du Passage: We launched the iX-9, the premier mailing system in France, which extends our leadership at the high end of the market. We secured a major US public sector deployment for certified mail. Our DS-67iQ for the inserter is now rolling out globally. We also continue to create intelligent devices by adding complementary software to our mailing solution globally. To date, we have rolled out our intelligent solutions to almost 80,000 customers globally, reinforcing the value of our mailing hardware. We continue to add capabilities to this solution with S.M.A.R.T. eCertified, ability to print and manage all certified and tracked mail, and digital stamps coming in November this year in the US. The customer relationship remains strong. Satisfaction was above 96% globally and 98% in North America, our largest market.

Speaker #1: And our DS67 IQ for the Insetter is now rolling out globally. We also continue to create intelligent devices by adding complementary software to our mailing solution globally.

Speaker #1: To date, we have rolled out our intelligent solutions to almost 80,000 customers globally, reinforcing the value of our mailing hardware. We continue to add capabilities to this solution with smart e-certify, the ability to print and manage all certified and tracked mail, and digital stamps coming in November this year in the US.

Speaker #1: The customer relationship remains strong. Satisfaction was above 96% globally, and 98% in North America, our largest market. Quadient was also named the leader in the IDC MarketScape for worldwide mailroom solutions and services in its 2026 vendor assessment.

Laurent du Passage: Quadient was also named the leader in the IDC MarketScape for worldwide mailroom solutions and services in its 2026 vendor assessment. Let's now move to the number for Mail on slide 19. Mail revenues stood at EUR 302 million in the H1. It's down 5.7% organically. The two factors explain this performance. First, it's a slower subscription-related revenue, reflecting the gradual contraction of the installed base after the lower placement of recent periods. Second, software hardware volume in Europe, partly offset by the resilience in North America. Q2 was down 6.4%, a weaker sequential performance, which mainly reflects the expiry at the end of Q1 of a service contract in UK. Excluding this specific impact, the underlying trend was stable over the two quarters. On the right-hand side, Mail EBITDA came in at EUR 75 million.

Speaker #1: Let's now move to the number for Mail on slide 19. Mail revenues stood at $302 million in the first half. It's down 5.7% organically.

Speaker #1: The two factors explain this performance. First, it's a slower subscription-related revenue, reflecting the gradual contraction of the install base after the lower placement of recent periods.

Speaker #1: And second, software and hardware volume in Europe, partly offset by the resilience in North America. Q2 was down 6.4%, a weaker second sale performance, which mainly reflects the expiry at the end of Q1 of a service contract in the UK.

Speaker #1: Excluding this, its specific impact, the underlying trend was stable over the two quarters. On the right-hand side, Mail EBITDA came in at €75 million.

Speaker #1: It's down 6.6% year-on-year. On an organic basis, with an EBITDA margin of 24.9%, down only by 0.6 points despite the top-line performance.

Laurent du Passage: It's down 6.6% year-on-year on an organic basis, with an EBITDA margin of 24.9%, down only by 2.6 points despite the top-line performance. This resilience reflects our continued cost discipline, US tariff reimbursement, as well as the commercial productivity gains achieved with digital in connection with the ramp-up ahead of the invoicing mandate in France. Moving now to Quadient financials. First, let's review on slide 21, the P&L. As you can see in this slide, the 2025 comparatives are shown both as published and restated for the application of the IFRS 5 to the local business. Starting from Q&A bit of EUR 57 million, optimization expenses and other operating income amounted to EUR 7 million, essentially restructuring Mail. This brings the EBIT to EUR 50 million. Net financial expenses stand at EUR 23 million, slightly above last year.

Speaker #1: This resilience reflects our continued cost discipline, U.S. tariffs reimbursement, as well as the commercial productivity gains achieved with digital in connection with the ramp-up ahead of the invoicing mandate in France.

Speaker #1: Moving now to Quadient financials. First, let's review slide 21, the P&L. As you can see on this slide, the 2025 comparatives are shown both as published and restated for the application of FS5 to the local business.

Speaker #1: Starting from the current EBIT of €57 million, optimization expenses and operating and other operating income amounted to €7 million. Essentially, this relates to restructuring in Mail.

Speaker #1: This brings EBIT to 50 million euro. Net financial expenses stand at 23 million euro, slightly above last year. Income before tax is therefore 27 million euros, with an income tax charge of 7 million euro.

Laurent du Passage: Income before tax is therefore EUR 27 million, with an income tax charge of EUR 7 million. This charge benefits from the release of EUR 5 million tax provision. Net income from continuing operations comes out at EUR 21 million, and net income from discontinued operation is a -EUR 11 million, and that reflects the measurement of the local asset at fair market value, less cost to sell in the Europe outside of the UK, plus the loss of the business over H1. All-in net income for the pay stands at EUR 10 million, of which EUR 19 million attributable to shareholders. Moving now to slide 22 and the cash flow. We are up to a very strong free cash flow, standing at EUR 34 million for the H1. It's significant improvement compared to the -EUR 4 million we had last year at the same date.

Speaker #1: This charge benefits from the release of a €5 million tax provision. Net income from continuing operations comes out at €21 million. Net income from discontinued operations is a negative €11 million, and that reflects the measurement of the local asset at fair market value less cost to sell in Europe outside of the UK, plus the loss of the business over H1.

Speaker #1: All in, net income for the payers stands at €10 million, of which €9 million is attributable to shareholders. Moving now to slide 22 and the cash flow.

Speaker #1: We are up to a very strong free cash flow, standing at 34 million euro for the first half. It's significant improvement compared to the negative 4 million we had last year, the same date.

Speaker #1: Starting from EBITDA at €96 million, other items represent a €10 million outflow, bringing cash flow before net cost of debt and tax to €86 million.

Laurent du Passage: Starting from EBITDA at EUR 96 million, other items represent a EUR 10 million outflow, bringing cash flow before net cost of debt and tax to EUR 86 million. The change in working capital required is a EUR 25 million outflow. It is a normalized level compared to H1 2025, reflecting our business model and leading specificity. Last year, if you remember, this working capital was particularly affected by the additional inventory you had built at the end of January 2025, and that was paid over the first half of 2025. The change in this receivable contributed to a positive EUR 29 million, reflecting the continued decline in our install base. Interest and income tax paid amounted to EUR 31 million, which is well below last year's EUR 652 million, which included, as we mentioned last year, one-off impacts of the bond refinancing as well as the big tax and the 360 tax payments.

Speaker #1: A change in working capital required is a €25 million outflow. It's a normalized level compared to H1 2025, reflecting our business model and billing simplicity.

Speaker #1: Last year, if you remember, this working capital was particularly affected by the additional inventory you had built at the end of January 25, and that was paid over the first half of '25.

Speaker #1: The change in business available contributed to a positive 29 million euros, reflecting the continued decline in our install base. Interest and income tax paid amounted to 31 million euro.

Speaker #1: It's well below last year, to 52 million euro, which included as we mentioned last year, one of impacts of the bond refinancing, as well as the bid tax in the Swiss exit tax payments.

Speaker #1: Cash flow from operations therefore reaches 59 million euros, and after capital expenditure of 25, continues to reflect a low level of capex in mail.

Laurent du Passage: Cash flow from operations therefore reaches EUR 59 million, and after capital expenditure of EUR 25 million, continues to reflect the low level of CapEx in Mail, free cash flow comes out at EUR 34 million. Cash flow from discontinued operation represents an outflow of EUR 12 million, it is higher than last year due to the EUR 5 million plus increase in CapEx in the UK. Moving now to slide 23 to give you some details on the CapEx. The CapEx expenditure presented here excluding IFRS 16, stands at EUR 25 million for the first half, down from EUR 28 million last year, mostly due to the lower placement in Mail. This mainly reflects a reduction of Mail CapEx in line with lower sorting machine placements, while investment in digital is growing also due to acquisitions.

Speaker #1: Free cash flow comes out at €34 million. Cash flow from discontinued operations represents an outflow of €12 million. It's higher than last year due to the €5 million-plus increase in capex in the UK.

Speaker #1: Moving now to slide 23 to get you some details on the capex. The capital expenditure presented here including excluding IFRS 16, stands at 25 million euro for the first half.

Speaker #1: Down from €28 million last year, mostly due to the lower placement in mail. This mainly reflects a reduction of mail capex in line with lower franking machine placements, while investment in digital is growing, also due to acquisitions.

Speaker #1: As you can see, the published figure from 2025, local content for a very large share of total capex was about 30% in H125, against a revenue that represented at the time about 10% of the company.

Laurent du Passage: As you can see, the published figure from 2025, Lockers accounted for a very large share of total CapEx with about 30% in H1 2025 against a revenue that represented at the time about 10% of the company. Moving now to slide 24, we are focusing on the net debt and the leverage. The debt stands at EUR 683 million. That includes IFRS 16 at the end of July 2026. It is broadly stable compared to the end of January. In reality, it hides a Forex adverse to the debt at EUR 15 million, between the two dates. It is offset by the cash generation during the period. At the end of H1 2026, it breaks down into EUR 435 million of net financial debt for leasing and EUR 216 million of non-leasing debt, as well as the EUR 32 million of IFRS 16 debt.

Speaker #1: Moving now to slide 24, focusing on the net debt and the leverage. The debt stands at 683 million euro. That includes IFRS 16. At the end of July 26, it's broadly stable compared to the end of January.

Speaker #1: But in reality, it hides a forex that is adverse to the debt at €15 million. Between the two dates, it's offset by the cash generation during the period.

Speaker #1: At the end of H1 2026, it breaks down into €435 million of net financial debt for leasing, €216 million of non-leasing debt, as well as €32 million of IFRS 16 debt.

Speaker #1: All leverage ratio excluding leasing is stable at 1.6 times. EBITDA, even if when removing EBITDA from local and cash held by local entity, which is 7 million euro, the leverage at group level stands at 3.1 times, including leasing.

Laurent du Passage: All leverage I show excluding leasing is stable at 1.6x EBITDA, even if when removing EBITDA from Lockers and cash held by Lockers entity, which is EUR 7 million, the leverage at group level stands at 3.1x including leasing. Please note that the H1 ratios reflect the application IFRS 5, while prior periods have not been restated on this graph. Those ratios continue to stand well below our covenant levels, and as mentioned by Geoffrey Godet, the set up UK open network is expected to bring the leverage ratio extremely down to around 1.2x by the end of the financial year. Moving now to slide 25 and our financial structure.

Speaker #1: Please note that the H1 ratios reflect the application of IFRS 5, while prior periods have not been restated on this graph. Both ratios continue to stand well below our covenant levels.

Speaker #1: And as mentioned by Geoffrey, the sale of UK Open Network is expected to bring the leverage ratio, excluding leasing, down to around 1.2 times by the end of the financial year.

Speaker #1: Moving now to slide 25 and our financial structure. Our liquidity position at the end of July was still strong: €123 million in cash, €200 million of undrawn credit facilities, maturing in 2030.

Laurent du Passage: Our liquidity position at the end of July was still strong, EUR 123 million in cash, EUR 200 million of undrawn credit facilities, maturing in 2030, and a customer leasing portfolio at EUR 522 million, contributing to future cash flow visibility with maturities well spread over the coming years. Subsequent to the period end, in August, we carried out two transactions, the issuance of a EUR 100 million Schuldschein loan, a German private placement, and the early repayment of EUR 65 million of our existing Schuldschein, covering the tranches maturing both in November 2026 and May 2027. This confirms both our access to diversified sources of financing and our discipline in managing a balanced maturity profile. Let's now move to conclusion on page 26 and 27. We are confirming our guidance for the full year on the basis that now excludes Lockers. You can see the translation on this slide.

Speaker #1: And the customer leasing portfolio at 522 million, contributing to future cash flow visibility, with maturities well spread over the coming years. Subsequent to the period end, in August, we carried out two transactions, the issuance of a 100 million euro issue shine loan and a German private which is a German private placement and the earlier repayment of 65 million euro of our existing issue shine, covering the trenches matching both in November 26 and May 27.

Speaker #1: This confirms both our access to diversified sources of financing and our discipline in managing a balanced maturity profile. Let's now move to conclusion. On page 26 and 27, we are confirming our guidance for the full year on a basis that now excludes lockers.

Speaker #1: You can see the translation on this slide. Our previous guidance for fiscal year 2026 was organic revenue change of minus 2% to plus 2%.

Laurent du Passage: Our previous guidance for fiscal year 2026 was organic revenue change of -2% to +2%. EBITDA margin above 20% in Digital, above 25% in Mail, and above 10% in Local. The leverage ratio extremely being of 1.5 times. Take Lockers out, and that translates mechanically organic revenue change of -3% to +1%. EBITDA margin above 19% in Digital and above 24% in Mail. Those are the figures we confirm for the full year. We stress this is a technical translation, it's not a change in our view of the business. The margin step down reflect the reallocation of Locker store cost and the synergies across Digital and Mail. For Mail, it does reflect the utility effect of the European private network, private local network we are keeping.

Speaker #1: EBITDA margin above 20% in digital, above 25% in mail, and above 10% in lockers. And the leverage ratio excluding leasing of 1.5 times. Now, take lockers out and that translates mechanically, organic revenue change of minus 3 to plus 1.

Speaker #1: EBITDA margin above 19% in Digital and above 24% in Mail. Those are the figures we confirm for the full year, and we stress that this is a technical translation.

Speaker #1: It's not a change in our view of the business. The margin step-down reflects the relocation of lockers to net cost and the synergies across digital and mail. For mail, it also reflects the dilutive effect of the European private network.

Speaker #1: We are keeping the private locker network. On average, the same translation takes out our deleveraging targets from 1.5 times to 1.6 times because lower EBITDA comes out.

Laurent du Passage: On average, the same transition takes out our deleveraging targets from 1.5 times to 1.6 times because Local EBITDA comes out. Then we apply the proceed of the UK sale, and that takes us to the 1.2 times at the end of the financial year, comforted with the strong free cash flow generation at the end of each one. That assumes the sale completes before year-end. Finally, moving to slide 28. The same logic applies to our 2030 ambitions, and here I want to be explicit about what we are doing. 2030 revenue ambition, if you remember, by solution are unchanged. It's around EUR 560 million for Digital and around EUR 500 million for Mail.

Speaker #1: Then we apply the proceed of the UK sale and that access to the 1.2 times at the end of the financial year, comforted with the strong free cash flow generation at the end of H1.

Speaker #1: That assumes the sale completes before year-end. And finally, moving to slide 28. So the same logic applies to our 2030 ambitions. And here, I want to be explicit about what we are doing.

Speaker #1: 2030 revenue ambition, if you remember, by solutions are unchanged. It's around 550 million euro for digital and around 500 million euro for mail. On profitability, take lockers out and the ambition.

Laurent du Passage: On profitability, take Lockers out and the ambition we announced in March would mechanically come down as well, around 29% for Digital instead of 30%, and a range of 19% to 24% for Mail, instead of 20% to 25%. We expect to absorb that impact in full, so we are maintaining around 30% for Digital and 20% to 25% for Mail by 2030. On the restated scope, that is in a grade. It is our commitment to absorb around one point of margin over five years through the growth we are building in Digital. Taking Lockers out does not dilute the ambition we set, and Digital is on track to become Quadient's largest and most profitable solution by 2030. A Digital business growing with strong regulatory and structural tailwinds behind it.

Speaker #1: We announced in March that, mechanically, it came down as well: around 29% for Digital instead of 30%, and a range of 19% to 24% for Mail instead of 20% to 25%.

Speaker #1: We expect to absorb that impact in full. So, we are maintaining around 30% for Digital, and from 20% in 2020 to 25% for Mail by 2030. On the restated scope, that is an upgrade.

Speaker #1: It is our commitment to absorb around 1 point of margin over five years through the growth we are building in digital. Taking lockers out does not dilute the ambition we set, and digital is on track to become quite the largest and most profitable solution by 2030.

Speaker #1: A digital business growing with strong regulatory and structural tailwinds behind it. A mail business that is resilient and that is actively feeding the digital transition.

Laurent du Passage: A mail business that is resilient and that is actively feeding the digital transition, with financial flexibility to act. Thank you. With that, I think we are ready to take the questions.

Speaker #1: And real financial flexibility to act. Thank you. With that, I think we are ready to take questions.

Speaker #2: Thank you. This is the conference operator. We will now begin the question-and-answer session. Anyone wishing to ask a question may press star and one on their telephone.

Operator: Thank you. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone with a question may press star and one at this time. Once again, if you wish to ask a question, please press star and one on your telephone. At the moment, there are no questions from the conference call.

Speaker #2: To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time.

Speaker #2: Once again, if you wish to ask a question, please press star one on your telephone. At the moment, there are no questions from the conference call.

Laura Paxton: All right. We can pass to written questions. Thank you, everybody. First question, what is the expected timeline and valuation range for the remaining assets? The US and Japan businesses where Quadient has leading market positions. Do you expect the transaction to be completed by the end of FY2026? Would you pursue a single buyer for the entire business or separate transactions by geography?

Speaker #3: Hi. I have two written questions. Thank you, everybody. So, first question: What is the expected timeline and valuation range for the remaining assets? The US and Japan businesses were quadrant hogs, leading market positions.

Speaker #3: Do you expect the transaction to be completed by the end of FY26? Would you pursue a single buyer for the entire business, or separate transactions by geography?

Speaker #1: Well, it's a good question. I think what is important is to do the process right and maximize the value for Quadient.

Laurent du Passage: Well, it is a good question. I think what is important is to do the process right and maximize the value for Quadient. That is really, I think, our guiding principles. The US market is a market we probably have close to a third or 40%, a third of the market share. We are definitely number one. It is an ad scale business. It is probably representing 85% or 90% of the rest of the revenue. This is really the primary asset in term of value creation. It is a profitable base. It is cash generative. We have obviously a lot of things for us to look for. In combination to the strong position, we also have the Japanese base, where we have 7,000 Lockers. Roughly a little bit less than half the base in the US. It is a more mature base, strongly cash generative.

Speaker #1: So that's really, I think, our guiding principles. The US market is a market where we probably have close to a third, or 40% of the market share.

Speaker #1: We're definitely number one. It is an at-scale business. It's probably representing 85% or 90% of the rest of the revenue, so this is really the primary asset in terms of value creation.

Speaker #1: It is a profitable base. It is cash generative. So we obviously have a lot of things for us to look for. In combination with the strong position, we also have the Japanese base where we have 7,000 lockers.

Speaker #1: Roughly a little bit less than half the base is in the US. It's a more mature base, strongly cash generative. We probably have 60%, 65%, 70% market share still left there.

Laurent du Passage: We have probably 60%, 65%, 70% market share left there. I would call them definitely premium assets with respect when comparison to the lower maturity of the asset we just sold in the UK. We do have, obviously, global players that are operating throughout the US and Japan in different areas that are interested by those assets because they obviously play into the Lockers themselves, use Lockers, invest in Lockers, potentially also use their own Lockers. We also have local or country-specific interested parties. I would say it will take as long as it needs. The rest of the Lockers will obviously be a bit more complex than the UK. We have several entities across several countries, spanning from France to UK, US, Canada, Japan, et cetera, with a bigger scope of the business.

Speaker #1: So I would call them definitely premium assets, with respect, when compared to the lower maturity of the asset we just sold in the UK.

Speaker #1: We do have, obviously, global players that are operating throughout the US and Japan and different areas, that are interested in those assets because they obviously play into the locker themselves, use lockers, invest in lockers, and potentially also use their own lockers.

Speaker #1: And we also have local or country-specific interested parties. So I would say it will take as long as it needs. The rest of the lockers will obviously be a bit more complex than the UK.

Speaker #1: We have several entities across several countries, spanning from France to the UK, US, Canada, Japan, etc., with a broader scope of the business.

Speaker #1: And so, aside from that, we'll do what we think is the right thing to do. We have obviously communicated this announcement publicly, so it's also in our best interest to move diligently and as efficiently as we can on that.

Geoffrey Godet: Aside that we will do what we think is the right thing to do. We have obviously communicated this announcement publicly, so it is also in our best interest to move diligently and as efficiently as we can on that. I am not going to commit to any particular timeline. We obviously just want to make sure we are doing the right thing, but we are definitely focused on it now that we have completed the UK sale.

Speaker #1: We're not going to commit to any particular timeline. We obviously just want to make sure we are doing the right thing, but we're definitely focused on it.

Speaker #1: Now that we have completed the UK set.

Speaker #3: Thank you, Geoffrey. What is the return on investment of the lockers business?

Laura Paxton: Thank you, Geoffrey. What is the return on investment of the Lockers business?

Speaker #1: So, on this question, I can take it. I'm not sure if the return on investment is—if we're looking at the diverse part or the existing part.

Laurent du Passage: On this question, I can take it. I am not sure if the return on investment is, you are looking to the divested part or the existing part. I think we have been quite clear when we are presenting the investment in Lockers that we are expecting, notably in Japan, we discussed for that, but notably in UK, that we were expecting an internal rate of return that was significantly above a WACC, whatever the region of the world is. I think, the divestment of the Lockers in the UK is an example of divestment where we have been achieving these goals in terms of return. It is the same that we see today in the Japanese base when we look at the future cash flow.

Speaker #1: I think we've been quite clear. When we were presenting the investment in lockers that we're expecting—notably, Japan discussed for that, but notably in the UK—that we were expecting an internal return rate that was significantly above, or, whack, whatever the region of the world is.

Speaker #1: I think the divestment of the lockers in the UK is an example of divestment where we've been achieving those goals in terms of return.

Speaker #1: It's the same that we see today in the Japanese base when we look at the future cash flow. And, as mentioned by Geoffrey, it's also the rest of the local network and its quality that we expect to produce a strong payback, which I remind you is already significantly positive in terms of ADA in the regions that are Japan and North America.

Laurent du Passage: As mentioned by Geoffrey, it is also the rest of the Lockers network and its quality that we expect to produce a strong payback, which I remind you, is already significantly positive in term of EBITDA on the regions that are Japan and North America.

Speaker #3: Thank you. Will the €120 million of locker-related capex, which is expected to be freed up over the next five years, be reallocated to accelerate investment in the digital business?

Laura Paxton: Thank you. Will the EUR 120 million of locker-related CapEx, which is expected to be freed up over the next five years, be reallocated to accelerate the investment in the digital business? Over what timeframe does management expect to eliminate the EUR 2 to 3 million of stranded costs?

Speaker #3: And over what timeframe does management expect to eliminate the $2 to $3 million of stranded costs?

Speaker #1: So, a few parts. I think I could talk a little bit about the strategic allocation of our capital, and normally you can specify. I think the stranded costs are probably a little bit more complex than what was mentioned in the question.

Geoffrey Godet: A few parts here. I could talk a little bit about the strategic allocation of our capital and, Laurent, maybe you can specify, I think, certain costs that are probably a little bit more complex than what was mentioned in the question. From a capital allocation perspective, I think we have been, in our last capital market day, pretty specific about how we intended to allocate CapEx, the leverage of the company, debt reduction, shareholder returns, we looked at the dividend, also share buybacks, and obviously what we think it was needed also to invest into the business, and potentially at times also doing some smaller acquisition as we have done with Passeport Scellé, and we have done more recently with Serensia. I think we have been also very clear as it relates to what is our focus and our strategy, right?

Speaker #1: So, from a capital allocation perspective, I think we've been, in our last Capital Market Day, pretty specific about how we intended to allocate capex, the leverage of the company, the production, shareholder return—most notably dividend, also share buybacks—and obviously what we think was needed also to invest into the business.

Speaker #1: And potentially at times also doing some smaller acquisitions that we've done with PASEL Concierge, and we've done more recently with Selendia. I think we've been also very clear as to what is our focus and our strategy, right?

Speaker #1: And our decision to sell the Locker business is only to be able to focus even more on our goal, which is to make Digital the largest activity, naturally, of the group, and seize the momentum that we see. We've been investing in New York.

Geoffrey Godet: Our decision to sell the Lockers business is only to be able to focus even more on our goal, which is to make digital the largest activity naturally of the group and seize the momentum that we see with investing in Europe. As a reminder, to achieve our goal for 2030, this is an organic plan and does not require, does not necessitate any inorganic investment or allocation of capital. From that perspective, we just remain opportunistic, right? Now that I have shared that context, I think it is important that we complete the UK sale, we finish the divestment of the rest of the Lockers. Once we have received those proceeds, it will be a time probably around, or after our full financial communication for the full year.

Speaker #1: Now, as a reminder, to achieve our goal for 2030, this is an organic plan and does not require, does not necessitate, any inorganic investment or allocation of capital.

Speaker #1: So from that perspective, we just remain opportunistic, right? So now that I have shared that context, I think it's important that we complete the UK sale and finish the divestment of the rest of the lockers.

Speaker #1: And once we have received those proceeds, it will probably be around the time after our full financial communication for the year. Then, that will be a good time to reset expectations, I think, for the coming years.

Geoffrey Godet: Now that there will be a good time to reset the expectation, I think, for the coming years. As part of that, obviously, to be able to share with you what the board of Quadient will have decided in term of allocation of those resources and capital. From a business priority, I think we are pretty clear and pretty focused on what we need to do.

Speaker #1: And as part of that, obviously, to be able to share with you what the Board of Quadient will have decided in terms of allocation of those resources and capital.

Speaker #1: But from a business perspective, I think we are pretty clear and pretty focused on what we need to do.

Speaker #3: Thank you, Geoffrey. Could you remind us what the revenue in a bit from the UK Open Network was, and what multiples do the €65 million represent against these?

Laura Paxton: Thank you, Geoffrey. Could you remind us what the revenue and EBITDA from the UK Open network was, and what multiples do the GBP 65 million represent against these?

Speaker #1: So, I think Geoffrey mentioned the revenue being expected to be more than €10 million this year, and ABDA being expected to break even this year.

Laurent du Passage: I think Geoffrey mentioned the revenue being expected more than EUR 10 million this year and EBITDA being expected breakeven this year.

Speaker #3: Thank you. Is it safe to assume that the US and Japan will be sold to two different buyers?

Laura Paxton: Thank you. Is it safe to assume that the US and Japan will be sold to two different buyers?

Speaker #1: No, it's not safe to assume that. We have a business that operates on a common platform with shared R&D. It's one platform—the same platform that is being used by our US consumers.

Geoffrey Godet: No, it is not safe to assume that. We have a business that has a common platform, a shared R&D. It is one platform. It is the same platform that is being used by the US consumers, the multi-family residents in the US as the one that is being used in Japan or Canada or other parts of the world, by the way, even in the UK, which is good opportunity for me just to specify. We sold the UK base, but we did not sell the IP of Quadient, right? So the ownership of the platform and the technology and the R&D with the software is retained by Quadient. So what we are selling is the distribution entity of the Lockers base in the UK, and we retain that IP, and that IP is necessary to sustain both the US and Japanese base notably.

Speaker #1: The Naughty family, the residents in the US, the one that has been used in Japan, or in Canada, or the rest of the world—by the way, even the UK.

Speaker #1: Which is a good opportunity for me, just to specify. We saw the UK base, but we did not sell the IP of Quadrant, right?

Speaker #1: So the platform is the ownership of the platform and the technology and the R&D with the hardware or software is retained by quadrant. So this is really what we're selling is the distribution entity of the locker base.

Speaker #1: In the UK, we retain that IP, and that IP is necessary to sustain both the US and Japanese base, notably. So, there's, I think, a legitimate case for a buyer that would be interested in the entirety.

Geoffrey Godet: There is, I think, a legitimate case for a buyer that would be interested by the entire IP. That being said, we obviously, this is the purpose of the process, will remain open to see if there are various interests as part of the business, and if it makes sense and it creates more value, then it is something we could also consider.

Speaker #1: That being said, we obviously—this is the purpose of the process. We'll remain open to see if there are various interests as part of that business, and if it makes sense and it creates more value, then that's something we could also consider.

Speaker #3: Thank you. And how does Quadient intend to use the disposal proceeds? Debt reduction, enhanced share buyback program, special dividend, or reinvestment in the digital business?

Laura Paxton: Thank you. How does Quadient intend to use the disposal proceeds? Net reduction, enhanced share buyback program, special dividend, or reinvestment in the digital business?

Speaker #1: So I think it's a similar question to the one we had before. I think I could just use the difference on a short-term basis.

Geoffrey Godet: I think it is a similar question from the one we had before. I think I could just use the difference on the short-term basis. We do expect to receive the cash of the EUR 65 million of the UK divestment before the end of the year. Laurent explained to you that based on that, we will be able to leverage the company much further than what we had anticipated in our guidance. So from the 1.5 to the 1.2, at minimum obviously, but that is a short-term leverage, and I think it will be great at the full-year result to be able to come back to you and set a new expectation as we move forward in line with our business strategies, which is obviously to focus on our digital business and shareholder return.

Speaker #1: We do expect to receive the cash of €65 million from the UK divestment before the end of the year. Laurent explained to you that, based on that, we won't be able to deliver the company much further than what we anticipated in our guidance.

Speaker #1: So, from the 1.5 to the 1.2 at minimum, obviously. But that's a short-term deleverage. And I think it will be great, at the full-year results, to be able to come back to you and set a new expectation as we move forward in line with our business strategies, which is obviously to focus on our digital business.

Speaker #1: And shareholder return.

Speaker #3: And could you give us an overview of the criteria on which the transaction was done?

Laura Paxton: Could you give us an overview of the criteria on which the transaction was done?

Speaker #1: Yeah, on that front, I think we have a very open process, and we have received, obviously, multiple bids because of the quality of the assets. We've reviewed it independently, and I would say on different aspects.

Geoffrey Godet: Yeah. On that front, I think we have a very open process. We received, obviously, multiple bids, because also the criteria of the assets, and we reviewed it independently and, I would say, on different aspects. Obviously, price is one of them, speed of execution, also the quality of the partnership, because I remind you that we didn't sell the IP here, just the distribution. So what does it mean for the coming quarters, for the coming months in terms of software, for example, in terms of support, services, et cetera. All those elements, and obviously, the IDS offer has been the best offer we received.

Speaker #1: Obviously, price is one of them. Speed of execution, also the quality of the partnership, because I remind you that we didn't sell the IP here.

Speaker #1: It's just the distribution. So, what does it mean for the coming quarters, for the coming months in terms of software, for example, in terms of support services, etc.?

Speaker #1: All those elements. And obviously, the Idea software has been the best offer we received.

Speaker #3: And could you give us some more color on the involvement of Vesa in the lockers, mail, and digital business?

Laura Paxton: Could you give us some more color on the involvement of Vesa in the Lockers, mail, and digital business?

Speaker #1: None. Whatsoever. The Vesa and we're very grateful to have them as our first shareholder. But they are not at the boat. So they have no board of representation.

Geoffrey Godet: None whatsoever. Vesa, and we're very grateful to have them as our first shareholder, but they are not at the board, so they have no board representation. Therefore, they're not part of the deliberation, evaluation, reviews of the different stage of the offers we have received for the UK sale. Neither as part of the decision and the making of the decision about which offer to select and which deal to make. After that, I will not speak on behalf of any of our shareholders about anything else that they may think or have expressed, unless they have expressed it publicly.

Speaker #1: Therefore, they're not part of the deliberation, evaluation, reviews of the different stages of the offers we have received for the UK sale, neither as part of the decision and the making of the decision about which offer to select and which deal to make.

Speaker #1: And after that, I will not speak on behalf of any of our shareholders about anything else that they may think or have expressed, unless they have expressed it publicly.

Speaker #3: And what are your expectations regarding the cash proceeds from the lockers divestiture? Leverage is already under control, and 2030 goals are organic.

Laura Paxton: And what are your expectations regarding the cash proceeds from Lockers divestitures? Leverage is already under control, and 2030 goals are organic.

Speaker #1: So, that's a good comment and statement. It's logical. And I think with Laurent, we've been very clear, and we've been supported by the Board that, for us, this year was the year where we needed to get shareholder return and be focused on the return to our shareholders.

Geoffrey Godet: That's a good comment and statement. It's logical. I think with Laurent, we've been very clear and being supported by the board that, for us, this year was the year where we needed to get shareholder return and being focused on the return to our shareholders. We have made, during the last few years, significant investment to transform the company. We felt that it was time also to be able to provide a return to our shareholders. Now, there could be different ways, right? The share price, the dividend, the share buybacks. It's true that unless there is something significant that would come, we can achieve our 2030 ambition without that.

Speaker #1: We have made significant investments in the last few years to transform the company. And we felt that it was time to be able to provide a return to our shareholders, now in different ways, right?

Speaker #1: The share price, the dividend, the share buybacks. And it's true that unless there was something significant that would come, we can achieve a 2030 ambition without that.

Speaker #1: So a big part of the analysis between what is expected as a fair deliverage, the interest rates are also increasing, or they haven't been as low as they used to be.

Geoffrey Godet: A big part of the analysis between what is expected as a fair leverage, you know the interest rates are also increasing, or they haven't been as low as they used to be, and we need to also anticipate how the market condition could evolve. There's always a case for a little bit more leverage. After that, we have many other options, I think, to create the shareholder return. Dividend is part of our policy. We've been increasing it steadily year on year. Now, if we have exceptional proceed, I think that could also be something we could review. Obviously, there's also a legitimate evaluation of the opportunity of doing a share buyback, especially when we have a share price that is low.

Speaker #1: And we need to also anticipate how the market conditions could evolve. So, there's always a case for a little bit more deleveraging. After that, we have many other options, I think, to create that shareholder return.

Speaker #1: Dividend is part of our policy. We've been increasing it steadily year on year. Now we have the exceptional proceeds. I think that could also be something we could review.

Speaker #1: And obviously, there's also a legitimate evaluation of the opportunity to do a share buyback, especially when our share price is low.

Speaker #1: And that's part of what the board is reviewing on a regular basis, and they have made decisions on a regular basis to augment or initiate different programs in the past.

Geoffrey Godet: That's part of what the board is reviewing on a regular basis and have made decision on a regular basis to augment or initiate a different program in the past. I think it's in that light that I am sure we will review those expectations and set a new course probably at the beginning of next year.

Speaker #1: And I think it's in that light that I'm sure we will review those expectations and set a new course, probably at the beginning of next year.

Speaker #3: Thank you. So IDS Holdco is owned by EP Group. Mr. Kuczynski, who is also a more than 26% shareholder of Quadient through Vesa. How was the conflict of interest managed in the transaction?

Laura Paxton: Thank you. IDS Holdco is owned by EP Group, Mr. Kaczynski, who is also a more than 26% shareholder of Quadient through Vesa. How was the conflict of interest managed in the transaction? Were there any competing third-party offers for the UK open network? Did the board obtain an independent fairness opinion confirming the EUR 65 million valuation?

Speaker #3: Were there any competing third-party offers for the UK Open Network? And did the board obtain an independent fairness opinion confirming the €65 million valuation?

Speaker #1: So, this was a very competitive process. We had received several offers at various stages—non-binding and, obviously, preliminary LOIs—various levels of indication of interest before we could select the right party for us.

Geoffrey Godet: This was a very competitive process. We had received several multiple offers at various stage of non-binding and preliminary LOIs at the various level of indication of interest before we could select the right party for us. We had independent advisors with Société Générale and also our legal advisors, as supported us in the process to make sure we could have a good and fair valuation of the different terms and condition that was presented to us. I think on just the merits of the competitive offer, I think for the board, which is an independent board, Mr. Kaczynski or his entities do not participate at the board of Quadient, right?

Speaker #1: We had independent advisors with Société Générale and also our legal advisors that have supported us in the process to make sure we could have a good and fair valuation of the different terms and conditions that were presented to us.

Speaker #1: But I think on just the merit of the competitive offer, I think for the board—which is an independent board—and Mr. Kuczynski or his entities do not participate at the board of Quadient, right?

Speaker #1: So, it's really that the board has been able to review those without any interference from anybody else. And I think we made the decision that was in the best interest of Quadient based on a very competitive process.

Geoffrey Godet: The board has been able to review those without any interference from anybody else. I think we made the decision that was in the best interest of Quadient based on a very competitive process.

Speaker #3: Thank you. There is a provision for the European Parcel Network; on which country? What would be the remaining equity for the European Parcel Network?

Laura Paxton: Thank you. There is a provision for the European parcel network on which country. What would be the remaining equity for the European parcel network? Is there specific explanation versus other areas where parcels are strong? Is the European parcel network to be sold in the medium term?

Speaker #3: Is there a specific explanation versus other areas where parcels are strong? And is the European parcel network to be sold in the medium term?

Speaker #1: So, I'll take that one, Geoffrey. The rest of Europe, in terms of balance sheet and size, is relatively small. So basically, the level of equity is limited outside of the private network that is now part of the Mail Division.

Laurent du Passage: I will take that one, Laurent. The rest of Europe in terms of balance sheet, in terms of size, is relatively small. The level of equity is limited outside of the private network that is now part of the mail division. There is not much left, I would say, in the value of Europe. Obviously, the biggest part is obviously Japan, to a certain extent North America, and also all what we call the IP that stands in France, and that is part of the scope to be sold.

Speaker #1: So, there is not much left, I'd say, in the value of Europe. Obviously, the biggest part is Japan, to a certain extent North America, and also all what we call the IP that stands in France.

Speaker #1: And that is basically part of the scope to be sold.

Speaker #3: Thanks, Laurent. Are your expectations to sell at a premium versus the UK price in the US and the Japan lockers business?

Laura Paxton: Thanks, Laurent. Are your expectations to sell at a premium versus the UK price, the US, and the Japan Lockers business?

Speaker #1: It's very difficult to know at this stage. We obviously have, I think, a very competitive price for the UK. I think we need to go through the process and look at what the market will tell us on the rest of our local business, which, again, I think have significant differences in terms of maturity, scale, and leadership position in those respective markets versus the UK.

Geoffrey Godet: It is very difficult to know at this stage. We obviously have, I think, a very competitive price for the UK. I think we need to go through the process and look at what the market will tell us on the rest of our Lockers business, which again, I think has significant difference both in terms of maturity, scale, and leadership position in those respective markets versus the UK. We look forward to it.

Speaker #1: And we look forward to it.

Speaker #3: And how much profit is expected on the €60 million divestment of UK households?

Laura Paxton: How much profit is expected on the EUR 60 million divestment of UK parcels?

Speaker #1: So, it's a €65 million divestment. I'd say we really don't go into the details of, by country, what's the equity of each locker.

Laurent du Passage: It is a EUR 65 million divestment. I would say we really do not go to the detail of by country, what is the equity of each locker. I suggest we end, we wait for the closing, and we see eventually at the end of the year, what is the net impact on the specific IFRS 5 line and how much upsides there has been against the equity value.

Speaker #1: So I suggest we end, we wait for the closing, and you will see eventually at the end of the year what is the net impact on the specific RFIS pipeline.

Speaker #1: And how much upside has there been against the equity value? I think, principally, without the equity, we have a little bit of tax naturally that you pay.

Geoffrey Godet: I think it is just principally the, with that equity, we have a little bit of tax naturally to pay.

Speaker #1: Absolutely. But there is a.

Laurent du Passage: Absolutely. But there is a-

Speaker #2: There's nothing special.

Geoffrey Godet: Nothing special.

Speaker #1: Absolutely. And the bulk of it will be the net between whatever the purchase price is, minus the tax, and minus the equity, which is mostly the tangible assets—that are the lockers, the 3,000 lockers.

Laurent du Passage: Absolutely. The bulk of it will be the net between whatever the purchase price is, minus the tax and minus the equity, which is mostly the tangible assets that are the Lockers, the 3,000 Lockers.

Speaker #3: And how will customer data and accounts be migrated and managed as part of the divestment?

Laura Paxton: How will customer data and accounts be migrated and managed as part of the divestment?

Speaker #1: So the customer data is obviously part of the platform itself—it's how we operate a network. So I think we need to differentiate the data: the operational data, the customer data to run the business versus the back office, the CRM, the ERPs, and the financial systems that are needed.

Geoffrey Godet: The customer data is part, obviously, of the platform itself. It is how we operate a network. I think we need to differentiate the data, the operational data, the customer data to run the business versus the back office, the CRM, the ERP, the financial system that links it. We have established a TSA agreement with the buyer to be able to support them in that transition and making sure that we focus on the customer satisfaction at every moment during that transition and making sure there is going to be no disruption in allowing them sufficient time to be able to migrate the back office system, generally speaking. As part of the process too, as Laurent mentioned, the software is owned by Quadient's Lockers business, and we will now become a software vendor for this buyer.

Speaker #1: We have established a TSA agreement with the buyer. To be able to support them in that transition and making sure that we focus on the customer satisfaction at every moment during that transition and making sure there will be no disruption and allowing them sufficient time to be able to migrate the back office system more generally speaking.

Speaker #1: And as part of the process, too, as Laurent mentioned, the software is owned by Quadient Locker. We will now become a software vendor for this buyer.

Speaker #1: And we will be, like we are for many other carriers and entities, obviously maintaining, supporting, and upgrading the systems so there will be no disruption of the data and no need for migration in the short term.

Geoffrey Godet: We will be like we do for many other carriers and entities. We will obviously maintain and support and upgrade the system, so there will be no disruption on the data and no need for migration on the short term. The new buyer obviously will set his new course, a new strategy, and we will be happy to support them in case they elect at some point to change and migrate to another system if they elect to.

Speaker #1: The new buyer obviously will set this new course and new strategy, and we will be happy to support them in case they elect, at some point, to change and migrate to another system, if they choose to.

Speaker #3: Thanks, Geoffrey. Is it your ambition to sell the rest of the lockers business at a price of more than $20,000 per locker? That price would be consistent with a premium versus the UK deal?

Laura Paxton: Thanks, Geoffrey. Is it your ambition to sell the rest of the Lockers business at a price at more than EUR 20,000 per locker? That price would be consistent with premium versus UK deal.

Speaker #1: So I'll take that one, Geoffrey. It's a bit of a simplest view to price I think to value a business just based on number of lockers.

Laurent du Passage: Well, I will take that one, Geoffrey. It is a bit of a simplest view to price, I think, to value a business just based on number of lockers. It is depending on much more, what is the usage of this locker? In which market are we in? Do we have the ownership of this locker? Is it on our balance sheet? Again, if you remember, Japan and UK are mostly open network and sitting on the balance sheet of Quadient, whereas North America is mostly sold lockers. I do not think we can take this shortcut of EUR 20,000 per locker. It is going to depend, again, how much is the usage, what is the maturity of this base as well, what is the remaining value of these assets? What is the future growth, obviously? What is the expected margin? Here we mentioned that we sold UK, but it is the distribution part.

Speaker #1: It's depending on much more. What's the usage of this locker? In which market are we in? Do we have the ownership of this locker?

Speaker #1: Is it on our balance sheet? So again, if you remember, Japan and UK are mostly open network and sitting on the balance sheet of Quadient while North America is mostly sold lockers.

Speaker #1: So I don't think we can take this shortcut of €20,000 per locker. It's going to depend again on how much is the usage, and what is the maturity of this base as well.

Speaker #1: What's the remaining value of these assets? What's the future growth? Obviously, what's the expected margin? And here, we mentioned that we sold UK, but it's just the distribution part.

Speaker #1: We also have all the IP and the royalties that have been captured in France. This brings an additional layer of margin that needs to be assessed in future cash flows.

Laurent du Passage: We still have all the IP and the royalties that have been captured in France. This also brings an additional layer of margin that needs to be also assessed in the future cash flow.

Speaker #3: Thanks, Laurent. You mentioned enterprise value of 65 million. For the open network disposal in the UK. And what was the equity value?

Laura Paxton: Thanks, Laurent. You mentioned enterprise value of EUR 65 million for the open network disposals in the UK. What was the equity value?

Speaker #1: So, I think we mentioned that already—3,000 lockers—that's the bulk, basically, of the net book value: it's the tangible assets, which is 3,000 lockers.

Laurent du Passage: I think we mentioned that already, 3,000 Lockers, that's the bulk basically of the net book value is the tangible assets, which is 3,000 Lockers. And we know there is a range between 10K to 20K, depending on the size of the Locker, basically.

Speaker #1: And we know there is a range between $10,000 to $20,000, depending on the size of the locker, basically.

Speaker #3: Thank you, Laurent. Could you just remind us what is the cost of one locker?

Laura Paxton: Thank you, Laurent. Could you just remind us what is the cost of one Locker?

Speaker #1: Yeah, that's just what I mentioned, so it's okay.

Laurent du Passage: Yeah, that's just what I mentioned, so it's okay.

Speaker #3: And perhaps moving on to Mail?

Laura Paxton: Perhaps, moving on to mail.

Speaker #1: Yeah.

Geoffrey Godet: Yeah.

Speaker #3: How much was the tariff refund in H1?

Laura Paxton: How much was the tariff refunds in Q1?

Speaker #1: So, we got about $3 million back on the tariff refund. We actually got a little bit more, in fact, but part of it was tied to lockers.

Laurent du Passage: We get about EUR 3 million back on the tariff refunds. We get a little bit more, in fact, but part of it was tied to Lockers, so it has been classified as well, but it is about EUR 3 million.

Speaker #1: So it's been flexified as well. It's about 3 million euros.

Speaker #3: Thank you. And is there a share buyback program ongoing at the moment?

Laura Paxton: Thank you. Is there a share buyback program ongoing at the moment?

Speaker #1: So we're not currently buying back shares, but we obviously it's part of the consideration of capital allocation in the future whenever we sell obviously and we get the cash first and sell the rest of the locker as well.

Geoffrey Godet: We are not currently buying back shares, but obviously, it is part of the consideration of capital allocation in the future. Whenever we sell, obviously, we get the cash first and sell the rest of the Locker as well.

Speaker #3: Thank you. Beyond the acquisition of the UK lockers business, do you have any visibility on the face of, or EP Group's intentions regarding its shareholding in Quadient?

Laura Paxton: Thank you. Beyond the acquisition of the UK Lockers business, do you have any visibility on Vesa's or EP Group's intentions regarding its shareholding in Quadient? Is a shareholder agreement or standstill arrangement being considered?

Speaker #3: Is a shareholder agreement or stamp sale arrangement being considered?

Speaker #1: Obviously, we're not going to speak on behalf of our shareholder. We can refer to their last declaration when, I think, they passed the threshold of 25% ownership and the intent that they had.

Geoffrey Godet: Obviously, we are not going to speak on behalf of our shareholder. We can refer to their last declaration when I think they passed the threshold of 25% of ownership and the intent that they had. I think they have been pretty clear that they were supporting the strategy and that they had no intent to ask for a board position. Therefore, there is no basis to have a standstill or any other type of agreement that would be a shareholder agreement at this stage.

Speaker #1: And I think they've been pretty clear that they were supporting the strategy and that they had no intent to ask for a broader position.

Speaker #1: And therefore, there's no basis to have a stamp deal or any other type of agreement that would be a shareholder agreement at this stage.

Speaker #3: Thanks, Geoffrey. And when selling the UK fleet of lockers, do you have you kept them intellectual property on the technology with future royalties?

Laura Paxton: Thanks, Geoffrey. When selling the UK fleet of Lockers, have you kept some intellectual property on the technology with future royalties to be received?

Speaker #1: Yeah. Absolutely. And that was always mentioning. You need to be distinguishing the distribution part, which is the distributing legal entity, Quadient Locker UK, and this particular case.

Geoffrey Godet: Absolutely. As I was mentioning, you need to be distinguishing the distribution part, which is the distributing legal entity, Lockers UK in this particular case, that is buying those Lockers from our supply chain that owns the IP, both of the hardware and the software, and pays royalties based on the usage and based on the access to the software for each Locker. So the IP has not been sold, and that is why I was mentioning that the whole project of the buyer was also included in the evaluation and the ability to continue supplying IP. The EUR 65 million purchase price do not include the services to maintain the technology that we will obviously commercialize on arm's length basis with anybody that uses our technology, including the new buyer until they elect to do otherwise.

Speaker #1: That is buying both lockers from our supply chain that owns the IP—both the hardware and the software—and pays royalties based on the usage and based on the access to the software for each locker.

Speaker #1: So the IP has not been sold. And that's why I was mentioning that the overall project of the buyer was also included in the evaluation.

Speaker #1: And notably, the ability to continue supplying IP. This 65 million purchase price do not include the services to maintain the technology that we all obviously commercialize on arm's length basis with anybody that uses our technology, including the new buyer.

Speaker #1: Until they elect to do otherwise.

Speaker #3: Okay. Thank you both. So I think that's all the questions so we can conclude the call. Thank you everyone for attending. And for asking all your questions.

Laura Paxton: Okay. Thank you both. I think that is all the questions, so we can conclude the call. Thank you everyone for attending and for asking all your questions. Our next call will be on 1 December for our Q3 sales release. In the meantime, we look forward to seeing some of you in the coming days during our roadshow. Thank you very much and have a wonderful evening.

Speaker #3: So our next call will be on the 1st of December for our third quarter sales release. In the meantime, we look forward to seeing you some of you in the coming days.

Speaker #3: During our half year. Thank you very much, and have a wonderful evening.

Speaker #1: Thank you, Laurent. Thank you everybody. Thank you, Laurent.

Geoffrey Godet: Thank you, Laura. Thank you, everybody. Thank you, Laurent.

Speaker #2: Thank you.

Laurent du Passage: Thank you.

Operator: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.

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Half Year 2026 Quadient SA Earnings Call

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