Q2 2026 Vusion SA Earnings Call

September 21, 2026

Operator: Good day, and thank you for standing by. Welcome to the Vusion H1 2026 results conference call and webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star one one on your telephone keypad. You will then hear an automatic message advising your hand is raised. To withdraw a question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Olivier Gernandt, Investor Relations Officer. Please go ahead.

Speaker #1: Good day, and thank you for standing by. Welcome to the Vusion first half 2026 results conference call and webcast. At this time, all participants are in listen-only mode.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you need to press star 11 on your telephone keypad.

Speaker #1: You will not hear an automatic message advising that your hand is raised. To withdraw a question, please press star 1, then 1 again. Please be advised that today's conference is being recorded.

Speaker #1: I would now like to hand the conference over to our first speaker today, Olivier Guernand, Investor Relations Officer. Please go ahead.

Speaker #2: Thank you, Nadia. Ladies and gentlemen, good afternoon to you all, and welcome to our first half 2026 results presentation. We meet today with Thierry Gadou, our Chairman and Chief Executive Officer, as well as Thierry Lemaître, our Deputy CEO, Finance and Corporate.

Olivier Gernandt: Thank you, Nadia. Ladies and gentlemen, good afternoon to you all, and welcome to our H1 2026 results presentation. With me today are Thierry Gadou, our Chairman and Chief Executive Officer, as well as Thierry Lemaitre, our Deputy CEO of Finance and Corporate. Thierry Gadou will start with some remarks on the group's business performance. Thierry Lemaitre will then make some comments on our financial performance, and both Thierrys will end the presentation with some comments on our full-year outlook. After these remarks, we will be happy to take your questions. As a reminder, some of the information to be discussed on our call today is forward-looking and subject to important risks and uncertainties that could cause actual results to differ materially. For these, I refer you to the safe harbor statement included in our press release and on slide 3 of this presentation.

Speaker #2: Thierry Gadou will start with some remarks on the Group's business performance. Thierry Lemaître will then make some comments on our financial performance, and both Thierrys will end the presentation with some comments on our full-year outlook.

Speaker #2: After these remarks, we will be happy to take your questions. As a reminder, some of the information to be discussed on our call today is forward-looking.

Olivier Gernandt: As a reminder, some of the information to be discussed on our call today is forward-looking and subject to important risks and uncertainties that could cause actual results to differ materially. For these, I refer you to the safe harbor statement included in our press release and on slide three of this presentation. This evening's release was issued a short while ago and is available in French and in English on Vusion's website, vusion.com. The slides of this presentation can also be found on our website in the Regulated Information section. A replay and a transcript will, as usual, also be made available on our website after the call. With that, it's my pleasure to hand you over to Thierry Gadou for his opening remarks.

Speaker #2: ...and subject to important risks and uncertainties that could cause actual results to differ materially. For these, I refer you to the Safe Harbor Statement included in our press release.

Speaker #2: And on slide 3 of this presentation, this evening's release was issued a short while ago and is available in French and in English on Vusion's website, vusion.com.

Olivier Gernandt: This evening's release was issued a short while ago and is available in French and in English on Vusion's website, vusion.com. The slides of this presentation can also be found on our website in the Regulated Information section. A replay and a transcript will, as usual, also be made available on our website after the call. With that, it's my pleasure to hand you over to Thierry Gadou for his opening remarks.

Speaker #2: The slides of this presentation can also be found on our website, in the regulated information section. A replay and a transcript will, as usual, also be made available on our website after the call.

Speaker #2: And with that, it's my pleasure to hand you over to Thierry Gadou for his opening remarks.

Speaker #3: Thank you, Olivier. Good afternoon and good morning, everyone. Thank you for joining our conference call. I'm very pleased to present, together with Thierry Lemaître, our results for the first half of the year.

Thierry Gadou: Thank you, Olivier. Good afternoon. Good morning, everyone. Thanks for joining our conference call. I'm very pleased to present with Thierry Lemaitre our results for the H1 of the year. In summary, you already know our sales figures. We delivered around 30% organic revenue growth in H1, including an even higher growth in VAS revenues, which are revenues from software services and non-ESL solutions. Recurring VAS were even up by over 70% year-on-year. Our operating income grew sharply, much faster than our top line, as well as our net income, driven by our product mix and an improvement in both our VCM, variable cost margin, and OpEx ratios. By the way, this is both true for IFRS and adjusted figures. Our operational free cash flow also surged by over 50%. Vusion's balance sheet is strong with a positive net cash position.

Speaker #3: So, in summary, you already know our sales figures. We delivered around 30% organic revenue growth in H1, including even higher growth in VAST revenues, which are revenues from software services and non-ESL solutions.

Speaker #3: And recurring revenues were even up by over 70% year-on-year. Our operating income grew sharply, much faster than our top line, as well as our net income, driven by our product mix and an improvement in both our VCM, Variable Cost Margin, and OPEX ratios.

Thierry Gadou: Recurring VAS were even up by over 70% year-on-year. Our operating income grew sharply, much faster than our top line, as well as our net income, driven by our product mix and an improvement in both our VCM, variable cost margin, and OpEx ratios. By the way, this is both true for IFRS and adjusted figures. Our operational free cash flow also surged by over 50%. Vusion's balance sheet is strong with a positive net cash position.

Speaker #3: And by the way, this is true for both IFRS and adjusted figures. Our operational free cash flow also surged by over 50%. Vusion's balance sheet is strong, with a positive net cash position.

Speaker #3: Finally, with this strong H1, we reiterate our full-year 2026 profitable growth guidance. So let's review the semester's performance. As you know, the first half was in line with our expectations, delivering strong organic growth of around 30%, and even 37% at constant tariffs and foreign exchange rates.

Thierry Gadou: Finally, with the strong H1, we reiterate our full year 2026 profitable growth guidance. Let's review the semester's performance. As you know, the first half was in line with our expectations, delivering strong organic growth around 30% and even 37% at constant tariffs and foreign exchange rates. This growth was mostly driven by America, but with an improving momentum in Europe. EMEA revenues and order intakes grew in the first half. The momentum is good in the region. We win more deals and expand the business with our large customer base. Higher growth and more wins are expected in the second half, both in the grocery sector and other verticals. We expect revenue growth of 15% to 20% for the full year in EMEA.

Speaker #3: This growth was mostly driven by America, but with improving momentum in Europe. EMEA revenues and order intakes grew in the first half. The momentum is good in the region.

Speaker #3: We win more deals and expand the business with our large customer base. Higher growth and more wins are expected in the second half, both in the grocery sector and other verticals.

Speaker #3: We expect revenue growth of 15% to 20% for the full year in EMEA. In the Americas, we have also soon completed the very successful deployment of EdgeSense at Walmart in the United States, which is the first stream of a broader partnership.

Thierry Gadou: In the Americas, we will have soon completed the very successful deployment of EdgeSense at Walmart in the United States, which is the first stream of a broader partnership. Other projects involving new solutions are underway, as well as expansion in new geographies, which will continue driving the activity. In addition, we have a strong pipeline with major North and South American retailers. We anticipate good momentum in H2 and strong future adoption in the region over the coming years, especially as the strong value of our new EdgeSense platform and the impressive results it delivers is now beginning to be visible at scale. I will not comment further the detailed sales number. We did that during our last conference call at the end of July. But here are just a few additional comments from an overall market perspective.

Speaker #3: Other projects involving new solutions are underway, as well as expansion into new geographies, which will continue driving activity. In addition, we have a strong pipeline with major North and South American retailers.

Speaker #3: We anticipate good momentum in H2 and strong future adoption in the region over the coming years, especially as the strong value of our new EdgeSense platform and the impressive results it delivers are now beginning to be visible at scale.

Thierry Gadou: We anticipate good momentum in H2 and strong future adoption in the region over the coming years, especially as the strong value of our new EdgeSense platform and the impressive results it delivers is now beginning to be visible at scale. I will not comment further the detailed sales number. We did that during our last conference call at the end of July. But here are just a few additional comments from an overall market perspective.

Speaker #3: So I won't comment further on the detailed sales numbers. We did that during our last conference call at the end of July. But here are just a few additional comments from an overall market perspective.

Speaker #3: First, our market share and leadership. The market has strengthened. In H1, our revenues are more than twice that of any of our competitors.

Thierry Gadou: First, our market share and leadership in the market has strengthened. In H1, our revenues are more than twice that of any of our competitors. If you look at our leadership, it is even stronger in non-ESL revenues, as our VAS revenues is worth several times the accumulated amount achieved by our main competitors. Second, what makes us very proud of our performance since the beginning of the year and confident about the future is that, as I mentioned earlier, we begin to see at scale the value of the platform we created. I would like to illustrate a few things around this idea. As you know, over 50,000 stores are now operated in our cloud platform. That is already two-thirds of our total stores installed base and over half a billion cloud managed devices, ESL, smart rails, AI cameras.

Speaker #3: And if you look at our leadership, it's even stronger in non-ESL revenues, as our vast revenues are worth several times the cumulative amount achieved by our main competitors.

Speaker #3: Second, what makes us very proud of our performance since the beginning of the year, and confident about the future, is that—as I mentioned earlier—we begin to see, at scale, the value of the platform we created.

Speaker #3: I'd like to illustrate a few things around this idea. As you know, over 50,000 stores are now operated on our cloud platform. That's already two-thirds of our total store installed base.

Thierry Gadou: That is already two-thirds of our total stores installed base and over half a billion cloud managed devices, ESL, smart rails, AI cameras. Our cloud activity is massive with, for example, over 1.5 billion API calls last month. In terms of new use cases, with our technology, stores become guided stocking and picking environments, and we see a surge in the volume of guided tasks, which are guided pick-to-light and guided stock-to-light tasks, which have now reached over half a billion events per month.

Speaker #3: And over half a billion cloud-managed devices: ESL, Smart Trails, AI cameras. Our cloud activity is massive—with, for example, over 1.5 billion API calls last month.

Thierry Gadou: Our cloud activity is massive with, for example, over 1.5 billion API calls last month. In terms of new use cases, with our technology, stores become guided stocking and picking environments, and we see a surge in the volume of guided tasks, which are guided pick-to-light and guided stock-to-light tasks, which have now reached over half a billion events per month. This is driving productivity, e-commerce growth, and better on-shelf availability for our customers. We now begin to see shoppers using in-store product finding and shop-to-light features already at over a million times a week, and this is growing fast. You can see on social media how shoppers are excited by these new features, and we have here a video with a selection of those. We thought might be interesting to have a 2-minute video here for those who are connected.

Speaker #3: In terms of new use cases, without technology, stores become guided stocking and picking environments. And we see a surge in the volume of guided tasks, which are guided pick-to-light and guided stock-to-light tasks, which have now reached over half a billion events per month.

Speaker #3: This is driving productivity, e-commerce growth, and better, unchecked availability for our customers. We now begin to see shoppers using in-store product finding and shop-to-light features.

Thierry Gadou: This is driving productivity, e-commerce growth, and better on-shelf availability for our customers. We now begin to see shoppers using in-store product finding and shop-to-light features already at over a million times a week, and this is growing fast. You can see on social media how shoppers are excited by these new features, and we have here a video with a selection of those. We thought might be interesting to have a two-minute video here for those who are connected.

Speaker #3: Already at over a million times a week, and this is growing fast. You can see on social media how shoppers are excited by these new features.

Speaker #3: And we have here a video with a selection of those. So we thought it might be interesting to have a two-minute video here for those who are connected.

Speaker #1: I'm about to show you the biggest Walmart life hack ever.

[Company Representative]: I'm about to show you the biggest Walmart life hack ever. Wants to find this. If you were searching for something and you did use the app, so doggone easy. Boom.

Speaker #4: Wants to find this?

Speaker #1: If you were searching for something and you did use the app.

Speaker #5: So that going easy. Boom.

[Video Narrator]: [Presentation]

Speaker #1: Let me show you. Do you know that if you're at Walmart and you can't find an item, you can make the price tag flash?

[Company Representative]: Let me show you.

[Company Representative]: Do you know that if you're at Walmart and you can't find an item, you can make the price tag flash. I have such a hard time trying to find the very specific one that I'm looking for.

Speaker #1: And I have such a hard time trying to find the very specific one that I'm looking for.

Speaker #2: There are so many options, and I'm not going to spend an hour looking for the one I want. It knows by my location where I'm at.

[Company Representative]: There are so many options. I'm not going to spend an hour looking for the one I want. It knows by my location where I'm at, so I'm going to put aisle I19. I am in the aisle already, so I'm going to put Flash Price Tag down here. Oh, and there it is. So much easier to see in person. It's flashing a stark blue neon light.

Speaker #2: So I'm going to put aisle I-19. I am in the aisle already, so I'm going to put the flash price tag down here. Oh, and there it is.

Speaker #2: It's so much easier to see in person. It's flashing a stark blue neon light.

Speaker #1: Wait, what? That is so freaking cool!

[Company Representative]: Wait, what? That is so freaking cool. This new thing at Walmart, it's crazy.

Speaker #2: This new thing at Walmart is crazy. It's commercially easier to find that item in the aisle.

[Company Representative]: It's immensely easier to find the item in the aisle.

Speaker #5: Locate it. Flash price tag. Click on that. Hit Flash Price Tag. It's flashing now.

[Company Representative]: Locate it. Flash price tag. Click on that. Hit Flash Price Tag. It's flashing now. All right, we made it. Look. Light up in the aisle, so you can see it even from across the aisle. My mind is blown. That is the coolest freaking thing.

Speaker #2: All right, we made it. Look.

Speaker #1: Oh.

Speaker #4: Light up in the aisle so you can see it, even from across the aisle.

Speaker #1: My mind is blown.

Speaker #4: That is the coolest freaking thing.

Speaker #3: And it's not only Walmart. Also, you've probably seen one of our large customers in France begin to test location-aware, real-time personalized promotions at the shelf.

Thierry Gadou: It's not only Walmart. Also, you've probably seen one of our large customers in France begin to test location-aware, real-time personalized promotions at the shelf. Here, again, a little video that you may not have seen on social media.

Speaker #3: And here again, a little video that you may not have seen on social media.

Speaker #1: What if you never missed a single promotion on your favorite products in store? Today, we're testing a new way to connect the shelf to our customers, through our partnership with Vusion.

[Company Representative]: What if you never missed a single promotion on your favorite products in-store? Today, we are testing a new way to connect the shelf to our customers through our partnership with Vusion. As you know, on the Carrefour app, you will find all the personalized promotions. But the real point is that in store, there are a lot of products, and it is not always easy to know which promos apply to you, or where to find the product that fits your needs or wants. That is exactly why we are launching this push promo test. Here in Villabé, we are testing with a panel of customers, a new way to make promotions more visible. But above all, more personalized. In practice, here is how it works. You walk into an aisle equipped with EdgeSense technology. You have the Carrefour app open and Bluetooth on.

Speaker #1: As you know, on the Car4 app, you'll find all the personalized promotions. But the real point is that in store, there are a lot of products.

Speaker #1: And it's not always easy to know which promos apply to you, or where to find the product that fits your needs or wants. And that's exactly why we're launching this Push Promo test.

Speaker #1: Here in Villa Bay, we're testing with a panel of customers a new way to make promotions more visible—but above all, more personalized. In practice, here's how it works.

Speaker #1: You walk into an aisle equipped with edge-sense technology. You have the Car4 app open and Bluetooth on. If a personalized promotion is available for you in this aisle, a notification appears in the app.

[Video Narrator]: [Presentation]

[Company Representative]: If a personalized promotion is available for you in this aisle, a notification appears in the app. You tap, you see the offer, and the app guides you right to the product. Innovating at Carrefour means testing, learning, and building today, the habits that will become our customers tomorrow.

Speaker #1: You tap, you see the offer, and the app guides you right to the product. Innovating at Car4 means testing, learning, and building today the habits that will become our customers tomorrow.

Speaker #3: The shoppers are like, let's look at the computer vision dimension. We have now close to 200,000 shelf AI cameras processing millions of product pictures a day.

Thierry Gadou: The shopper side. Let us look at the computer vision dimension. We have now close to 200,000 shelf AI cameras processing millions of product pictures a day. We train our algorithm now and AI models with massive volumes, and our strong competitive edge in this market is that we can leverage a comprehensive and unified IoT platform where digital labels, smart rails, and AI cameras are synchronized and collaborate for more precise recognition and better insights, thanks to the compounding value of signals. In this area, 2026 is a major milestone as we are about to finalize the fifth generation of our CVAI technology, which we plan to scale very fast next year. Vision AI is the next big wave in in-store technology, and Vusion is positioned to be the winner in this market. You see all these new use cases are not just exciting concepts on PowerPoints or websites.

Speaker #3: We train our algorithm now and AI models with massive volumes. Our strong competitive edge in this market is that we can leverage a comprehensive and unified IoT platform, where digital labels, smart trails, and AI cameras are synchronized and collaborate for more precise recognition and better insights.

Speaker #3: Thanks to the compounding value of signals. In this area, we're about to finalize the fifth generation of our CV AI technology, which we plan to scale very fast next year.

Thierry Gadou: In this area, 2026 is a major milestone as we are about to finalize the fifth generation of our CVAI technology, which we plan to scale very fast next year. Vision AI is the next big wave in in-store technology, and Vusion is positioned to be the winner in this market. You see all these new use cases are not just exciting concepts on PowerPoints or websites. For Vusion, they are already a reality at scale, and no IoT platform in the world is even close to this functional scope and implementation scale. It is just the beginning.

Speaker #3: Vision AI is, you know, the next big wave in store technology. And Vusion is positioned to be the winner in this market. So you see all these new use cases.

Speaker #3: These are not just exciting concepts on PowerPoints or websites. For Vusion, they are already a reality at scale. And no IoT platform in the world is even close to this functional scope and implementation scale.

Thierry Gadou: For Vusion, they are already a reality at scale, and no IoT platform in the world is even close to this functional scope and implementation scale. It is just the beginning. Finally, we are just starting to grow our retail media business with the In-Store Media acquisition, which should be finalized this semester. Together with our partnership with MediaPerformance, we become a leading European player in in-store retail media. The goal here is to gradually digitize and connect stores to turn store traffic into media dollars and help our retail customers build true omnichannel digital media networks. A lot is going on, and we clearly have completed our shift from a pure ESL company into a food platform and a retail digital transformation enabler. That is very visible in this semester's performance. All this is obviously the engine driving our VAS revenue expansion.

Speaker #3: And it's just the beginning. Finally, we're just starting to grow our retail media business. With the in-store media acquisition, which should be finalized this semester, together with our partnership with Media Performance, we become a leading European player in in-store retail media.

Thierry Gadou: Finally, we are just starting to grow our retail media business with the In-Store Media acquisition, which should be finalized this semester. Together with our partnership with MediaPerformance, we become a leading European player in in-store retail media. The goal here is to gradually digitize and connect stores to turn store traffic into media dollars and help our retail customers build true omnichannel digital media networks. A lot is going on, and we clearly have completed our shift from a pure ESL company into a food platform and a retail digital transformation enabler. That is very visible in this semester's performance. All this is obviously the engine driving our VAS revenue expansion.

Speaker #3: The goal here is to gradually digitize and connect stores, to turn store traffic into media dollars and help our retail customers build true omnichannel digital going on.

Speaker #3: And we clearly have completed our shift from a purely SL company into a full platform and a retail digital transformation enabler. That is very visible in this semester's performance.

Speaker #3: All this is obviously the engine driving our vast revenue expansion. You know our target of vast growth for the year is around 40%. And if you take into account, on top of that, the ASM acquisition, which should be finalized this semester, our VAST business should end this year at a pro forma revenue of around $400 million.

Thierry Gadou: You know our target of VAS growth for the year is around 40%. If you take into account on top of that the ISM acquisition, which should be finalized this semester, our VAS business should end this year at a pro forma revenue of around EUR 400 million, a figure multiplied by 4 times since 2022 in just 4 years, representing at year-end over 20% of total revenues. As you know, we target closer to 30% next year. So again, that's why H1 is such a milestone from a commercial and strategic standpoint. Let's see now with Thierry Lemaitre why it is a major step also from a financial standpoint.

Speaker #3: A figure multiplied by four times since '22 in just four years, representing a year-end at over 20% of total revenues. And as you know, we target closer to 30% next year.

Speaker #3: So again, that's why H1 is such a milestone from a commercial and strategic standpoint. Let's see now, with Thierry Lemaître, why it is a major step also from a financial standpoint.

Speaker #5: Thank you, Thierry. We are really proud to present our first-half earnings. Beyond the revenue growth presented by Thierry, a significant increase in profitability was achieved.

Thierry Lemaitre: Thank you, Thierry, and we are really proud today to present our H1 earnings. Beyond the revenue growth presented by Thierry, a significant increase in profitability was achieved, and this is visible on all the lines of the P&L. +34% adjusted variable cost margin, +120 basis points. +38% adjusted EBITDA, +240 bps. +82% adjusted EBIT, +330 bps. +81% adjusted net income, +260 bps. Profitability increased faster than revenues and the adjusted net income to EUR 77 million, which is 9% of sales, up 2.6 points compared with H1 2025. On the following slide, as always, we are reporting both under IFRS standards and also adjusted terms. We show here the main adjustments on the key financial indicators. The 2 adjustments impacting revenues, EBITDA and EBIT, are those relating to the warrant fair value amortization impacting negatively the revenues.

Speaker #5: This is visible on all the lines of the P&L: plus 34% adjusted variable cost margin, plus 120 basis points; plus 48% adjusted EBITDA, plus 240 basis points.

Speaker #5: Plus 82% adjusted EBIT, plus 330 basis points. Plus 81% adjusted net income, plus 260 basis points. Profitability increased faster than revenues, and the adjusted net income stood at €77 million.

Speaker #5: This is 9% of sales, up 2.6 points compared with H1 2025. On the following slide, as always, we are reporting both under IFRS standards and also in adjusted terms.

Speaker #5: And we show here the main adjustments of the key financial indicators. The two adjustments impacting revenues, EBITDA, and EBIT are those relating to the warrants' fair value amortization, impacting negatively the revenues.

Thierry Lemaitre: This IFRS 13 should stop when Walmart has generated $3 billion payments to Vusion, which could take place much before the end of 2028, considering the current progress with Walmart. The second impact relates to the average selling price, and this adjustment started reversing in Q3 last year. This explains that together, these 2 adjustments have a more limited impact in H1 2026 than in H1 2025. 2 more adjustments are impacting the financial results. First, the application of the IAS 21 standard applying on the intercompany receivable and payable between Vusion Inc, the US entity, and Vusion SA, the parent company. Second, the remeasurement of the fair value of the outstanding warrants granted to Walmart. This H1, the company share price decrease conflicted into a lower liability under IFRS, and therefore a profit in the financial income that amounted to EUR 96 million.

Speaker #5: This IFRS entry should stop when Walmart has generated $3 billion in payments to Vusion, which could take place much earlier than the end of 2028, considering the current project with Walmart.

Speaker #5: The second impact relates to the average selling price, and this adjustment started reversing in Q3 last year. This explains that, together, these two adjustments have a more limited impact in H1 2026 than in H1 2025.

Speaker #5: Two more adjustments are impacting the financial results. First, the application of the IAS 21 standard, applied to the intercompany receivable and payable between Vusion Inc., the US entity, and Vusion SA, the parent company. Second, the remeasurement of the fair value of the outstanding warrants granted to Walmart.

Speaker #5: In the first half, the company's share price decreased, which translated into a lower liability under IFRS and therefore a profit in financial income that amounted to €96 million.

Speaker #5: Let's now have a look at the drivers of the improvement of the adjusted EBITDA margin. It moved up by 2.4 points, from 16.7% in H1 2025 to 19.1% in H1 2026, thanks to, first, the VCM improvement. Here, the main driver of this VCM rate improvement is the mix, which gets more favorable to VAS.

Thierry Lemaitre: Let's now have a look at the drivers of the improvement of the adjusted EBITDA margin. It moved up by 2.4 points from 16.7% in H1 2025 to 19.1% in H1 2026. Thanks to, first, the VCM improvement. Here, the main driver of the VCM rate improvement is the mix, which gets more favorable to VAS. VAS represented 16% of the total revenues in H1 2026 versus 14% in H1 2025, and VAS showed a significantly higher VCM rate than ESL, as previously mentioned. Second impact is the OpEx, which are increasing, but at a lower pace than revenues, reflecting our continued operational leverage. On the following slide, the items between EBITDA and EBIT are limited and mainly coming from the IFRS 2 expense relating to the performance share plan at EUR 12.3 million and the amortization expense of the assets.

Speaker #5: VAS represented 15% of total revenues in H1 2026 versus 14% in H1 2025. And VAS shows a significantly higher VCM rate than ESL, as previously mentioned.

Speaker #5: Second impact is the OPEX, which is increasing but at a lower pace than revenues, reflecting our continued operational leverage. On the following slide, the items between EBITDA and EBIT are limited.

Speaker #5: And mainly coming from the IFRS 2 expense, relating to the performance share plans at €12.3 million, and the amortization expense of the assets.

Speaker #5: For the first time in H1 2026, EBIT margin exceeded 11% of sales, and this should continue to increase in the coming years. The financial income in H1 2026 stands at €83 million, of which minus €19 million and €96 million are IFRS adjustments, which we already presented before.

Thierry Lemaitre: For the first time in H1 2026, EBIT margin exceeded 11% of sales, and this should continue to increase in the coming years. The financial income in H1 2026 stands at EUR 83 million, of which -EUR 19 million and EUR 96 million are IFRS adjustments, which we already presented before. The adjusted financial income stands at EUR 6.3 million, close to the EUR 6.1 million of H1 2025. This is mainly the result of the net financial income coming from the net cash position for EUR 2 million and the exchange gains generated by the high volatility of the exchange rates. CapEx, they reached EUR 33.6 million in H1 this year, compared with EUR 98.5 million last year.

Speaker #5: The adjusted financial income stands at €6.3 million, close to the €6.1 million of H1 2025. This is mainly the result of the net financial income coming from the net cash position for €2 million and the exchange gains generated by the high volatility of the exchange rates.

Speaker #5: CAPEX amounted to €33.6 million in H1 this year, compared with €98.5 million last year. As mentioned when we presented the full year 2025 results, the investment in the manufacturing lines was completed in H1 this year for €3.6 million.

Thierry Lemaitre: As mentioned when we presented the full year 2025 results, the investment in the manufacturing lines was completed in H1 this year for EUR 3.6 million, and the cash CapEx, the CapEx funded by the group, which reached EUR 30 million, which is slightly below 4% of sales. Let's now move to the cash situation to end this financial presentation. The net cash position at the end of H1 stands at EUR 197 million, which is a EUR 241 million decrease compared to the end of 2025. This was anticipated and shared with you previously. The main drivers of this evolution are, first, a continuous improvement of the operating free cash flow, which we define as EBITDA minus CapEx funded by the group. This one reached EUR 127 million, a 50% increase compared to last year.

Speaker #5: And the cash CAPEX, the CAPEX funded by the group, reached €30 million, which is slightly below 4% of sales. Let's now move to the cash situation to end this financial presentation.

Speaker #5: The net cash position at the end of H1 stands at €197 million, which is a €241 million decrease compared to the end of 2025.

Speaker #5: This was anticipated and shared with you previously. The main drivers of this evolution are, first, a continuous improvement of the operating free cash flow, which we define as EBITDA minus CAPEX funded by the Group.

Speaker #5: This one reached €127 million, a 50% increase compared to last year. Then, as anticipated, the down payment collected before 2026 started reversing in H1.

Thierry Lemaitre: As anticipated, the down payment collected before 2026 started reversing in H1 and EUR 222 million out of the EUR 415 million of down payments on the balance sheet at the end of 2025 were reversed in H1 this year. Therefore, there is only, I would say, a more limited portion to be reversed in H2, closer to EUR 190 million. The group also paid EUR 79 million taxes in H1, which includes the full payment of 2025 income tax for EUR 53 million, plus EUR 26 million down payment for 2026. All these elements explain the -EUR 221 million free cash flow in H1. In addition, the group paid EUR 15 million in dividend and EUR 15.5 million in share buyback. Regarding share buyback, we are willing to launch a new share buyback program soon to reach the overall EUR 30 million envelope that we had set previously, subject to market conditions, of course.

Speaker #5: And €222 million out of the €415 million of down payments on the balance sheet at the end of 2025 were reversed in H1 this year.

Speaker #5: Therefore, there is only, I would say, a more limited portion to be reversed in H2, closer to €190 million. The group also paid €79 million in taxes in H1, which includes the full payment of 2025 income tax for €53 million.

Speaker #5: Plus 26 million euros down payment for 2026. All these elements explain the negative free cash flow of 221 million euros in H1 and, in addition, the group paid 15 million euros in dividend and 15.5 million euros in share buyback.

Speaker #5: Regarding the share buyback, we are willing to launch a new share buyback program soon to reach the overall €30 million envelope that we had set previously, subject to market conditions, of course.

Speaker #5: When reviewing all the items impacting the change in net cash over H1, it is clear that two of them only impacted H1, and one will also impact H2, but to a lower expense.

Thierry Lemaitre: When reviewing all the items impacting the change in net cash over H1, it is clear that two of them only impacted H1 and one will also impact H2, but to a lower extent. The full year 2025 tax paid in H1 for EUR 53 million will not impact H2. The dividend paid in H1 for EUR 15 million will not impact H2, and the reversal of down payment in H1 for EUR 222 million should not exceed EUR 193 million in H2, which is a EUR 30 million improvement. Considering the -EUR 214 million change in net cash over H1 and the net cash position of EUR 197 million at the end of H1, the group should end up the year 2026 with a positive net cash position before M&A. I will now hand over to Thierry for the guidance.

Speaker #5: The full-year 2025 tax paid in H1 for €53 million will not impact H2. The dividend paid in H1 for €15 million will not impact H2.

Speaker #5: And the reversal of down payment in H1 for €222 million should not exceed €193 million in H2, which is a €30 million improvement.

Speaker #5: Considering the minus €214.1 million change in net cash over H1 and the net cash position of €197 million at the end of H1, the group should end up the year 2026 with a positive net cash position before M&A.

Speaker #5: I will now hand over to Thierry for the next section.

Speaker #1: Thank you, Thierry. Indeed, it's a great financial performance. And, well, the good news is it should continue in H2, because we reconfirm our target for the full year.

Thierry Gadou: Thank you, Thierry. Indeed, it is a great financial performance. Well, the good news, it should continue in H2 because we reconfirm our target for the full year. First, an annual adjusted revenue growth expected between 15% and 20% at constant exchange rates and tariffs. Here, maybe I will just pause because, Thierry, you could give us maybe a bit more insight on how to anticipate the impact of tariffs and current exchange on our H2 stage target figures.

Speaker #1: First, an annual adjusted revenue growth is expected between 15% and 20% at constant exchange rates and tariffs. And here, maybe I'll just pause, because Thierry, you could give us maybe a bit more insight on how to anticipate the impact of tariffs and current exchange rates on our H2 sales target figures.

Speaker #5: Yes, of course. On this graph, we want to share with you what we expect for the full-year revenues. We confirm that group revenues should grow between 15% to 20% at constant tariff conditions and EUR/USD exchange rate versus 2025, which means a full-year adjusted revenue range at constant tariff conditions and EUR/USD between €1.75 billion and €1.83 billion.

Thierry Lemaitre: Yes, of course. On this graph, we want to share with you what we expect for the full-year revenues. We confirm that group revenue should grow between 15% to 20% at constant tariff conditions and euro dollar foreign exchange rate versus 2025. This means a full-year adjusted revenue range at constant tariff conditions on euro dollar between EUR 1.75 and EUR 1.83 billion. We expect the ForEx impact between 2025 and 2026 to be approximately EUR 50 million, and the change in tariffs approximately EUR 100 million, of which EUR 70 million or $80 million credit notes issued to customers that we will charge for tariffs in 2025. This means that the full-year adjusted revenue should stand between EUR 1.60 and EUR 1.68 billion.

Speaker #5: We expect the forex impact between 2025 and 2026 to be approximately €15 million. And the change in tariffs—approximately €100 million, of which €70 million or $80 million in credit notes have been issued to customers that will recharge for tariffs in 2025.

Speaker #5: This means that the full-year adjusted revenue should stand between €1.60 billion and €1.68 billion.

Speaker #1: Okay, so that's the way to take into account these changes in foreign exchange rates and the change in tariffs, in particular, the reimbursement of tariffs that were invoiced last year.

Thierry Gadou: Okay, so that is the way to take into account these changes in foreign exchange rates and the tariffs change. In particular, the reimbursement of tariffs that were invoiced last year. Obviously, these two changes were not anticipated when we issued our first guidance, right, at the end of February.

Speaker #1: And obviously, these two changes were anticipated when we issued our first guidance, right, at the end of February. So, back to the outlook.

Thierry Lemaitre: Yeah.

Thierry Gadou: Back to the outlook. Total VAS revenue is expected, as I mentioned, to increase organically by around 40%, with an even higher growth rate in recurring VAS. As already said, with the ISM acquisition, we should end the year at around a pro forma revenue in VAS of EUR 400 million, i.e., over 20% of total revenue. With our strong pipeline in Europe and America, we are expecting a positive momentum in H2 and a growth of order intakes for the full year 2026. In other words, we target over EUR 1 billion in order entries in H2 with a particularly strong Q4. The new flow will intensify over the coming months. The group also targets improved profitability, with adjusted EBITDA margin expected to increase by more than 100 basis points year on year.

Speaker #1: Total VAST revenue is expected, as I mentioned, to increase organically by around 40%, with an even higher growth rate in recurring VAST. And as already said, with the ISM acquisition, we should end the year at around a pro forma revenue in VAST of €400 million.

Speaker #1: IE, over 20% of total revenue. With our strong pipeline in Europe and America, we're expecting positive momentum in H2 and growth in order intakes for the full year 2026.

Speaker #1: In other words, we target over €1 billion in order entries in H2, with a particularly strong Q4. So the news flow will intensify over the coming months.

Speaker #1: The group also targets improved profitability, with adjusted EBITDA margin expected to increase by more than 100 basis points year-on-year. This improvement in profitability will be accompanied by an increase in operating free cash flow compared to 2025.

Thierry Gadou: And this improvement in profitability will be accompanied by an increasing operating free cash flow compared to 2025. The total free cash flow should improve in H2 versus H1, as Thierry mentioned, because operating cash flow should increase and there will be in H2 around EUR 100 million less cash out than in H1 regarding the tax, the dividends, and the lower down payment reversals. So we will maintain a strong balance sheet at the end of the year with a substantially positive net cash position before ISM financing, and even after the complete reversal of Walmart's down payments. That strong balance sheet obviously is enabling us to finance our organic and external growth. We saw recently a comment somewhere that a capital increase would be necessary sometime. Well, let's be clear here. There is no reason, no need, no plans for such a thing in the coming years.

Speaker #1: And the total free cash flow should improve in H2 versus H1, as Thierry mentioned, because operating cash flow should increase, and there will be in H2 around €100 million less cash out than in H1 regarding the tax, the dividends, and the lower down payments reversals.

Speaker #1: So, we will maintain a strong balance sheet at the end of the year, with a substantially positive net cash position before ISM financing, and even after the complete reversal of Walmart's down payments.

Speaker #1: And that strong balance sheet obviously is enabling us to finance our organic and external growth. We saw recently a comment somewhere that a capital increase would be necessary sometime.

Speaker #1: Well, let's be clear here: there is no reason, no need, no plans for such a thing in the coming years. And a reminder to those of you who were with us in 2022, that within our Vision 27 projections, we mentioned that we would keep a very reasonable net debt level of maximum 2 times EBITDA—anyone can see that today.

Thierry Gadou: I remind those of you who were with us in 2022 that within our Vusion '27 projections, we have mentioned that we would keep a very reasonable net debt level of maximum 2x EBITDA. Anyone can see today we're in a much better position than that. So needed to be said. One last point we're announcing today, Thierry mentioned it briefly, we intend to launch a new share buyback mandate in H2. On 3 March, at the beginning of the year, we launched the previous one, which expired on 14 September. We have acquired close to 150,000 shares for EUR 16.7 billion. So the objective is to continue in order to reach the amount initially planned. That's it for H1. I will now hand over to you for questions.

Speaker #1: We're in a much better position than that, so it needed to be said. One last point we're announcing today—Thierry mentioned it briefly—we intend to launch a new share buyback mandate in H2, on March 3rd, at the beginning of the year.

Speaker #1: We launched the previous one, which expired on September 14th. We have acquired close to 150,000 shares for €16.7 billion. So the objective is to continue in order to reach the amount initially planned.

Speaker #1: That's it for H1. I will now hand over to you for questions.

Speaker #2: Thank you so much, dear participants. As a reminder, if you wish to ask a question, please press star 11 on your telephone keypad and wait for your name to be announced.

Operator: Thank you so much. Dear participants, as a reminder, if you wish to ask a question, please press star 1 1 on your telephone keypad and wait for a name to be announced. To withdraw a question, please press star 1 and 1 again. Please stand by while we compile the Q&A queue. This will take a few moments. Now we're going to take our first question. The question comes to line of Aurélien Sivignon from Oddo BHF. Your line is open. Please ask your question.

Speaker #2: To withdraw a question, please press star 1, and then 1 again. Please stand by. We'll compile the Q&A queue. This will take a few moments.

Speaker #2: And now we're going to take our first question. The question comes from Aurélien Sévignon at Audebhf. Your line is open. Please ask your question.

Speaker #5: Hi. Good afternoon. Thanks for taking my question. I have three. The first one: you mentioned, I think during the call, that only 200,000 Captana cameras are now deployed.

Aurélien Sivignon: Hi. Good afternoon. Thanks for taking my question. I have three. The first one you mentioned, I think during the call that there are only 200,000 Captana cameras are now deployed compared with the full year target of 150, if I'm not mistaken. So does it give you confidence that fast growth could come in above the around 30% currently expected for the full year? Then regarding the R&D investment related to the new solution you mentioned on EdgeSense for computer vision. Should we expect a step up in CapEx during H2? Or would you say that H1 was broadly more or less the run rate for the full year? Last one, has the development of this new solution correlated with the announcement of new contracts as was the case with EdgeSense and Walmart a couple of years ago? Thank you.

Speaker #5: Compared with the full-year target of 150, if I'm not mistaken, does it give you confidence that VAST growth could come in above, around the 30% currently expected for the full year?

Speaker #5: Regarding the R&D investment related to the new solution you mentioned on HN for computer vision, should we expect a step-up in capex during H2, or would you say that H1 was broadly more or less the run rate for the full year?

Speaker #5: And last one, are the development of this new solution correlated with the announcement of new contracts, as was the case with HN and Walmart a couple of years ago?

Speaker #5: Thank you.

Speaker #1: We will start with the questions, but I will ask you to repeat your last question because I didn't really get it. But anyway, let's start with the first two ones.

Thierry Gadou: We will start with the questions, but I will ask you to repeat your last question because I did not really get it. Anyway, let's start with the two first ones. The difference between the 150K and the 200 is mostly because, among the 150K, some which were supposed to be newly deployed cameras this year, some are still under deployment. The 200 is the total, I would say, the total fleet installed today. It is just a difference between flows and stock, if you want. Right? Nevertheless, this is a very exciting stream of activity for us. We are investing a lot in this field. We know it is the next big unlock in retail. All retailers need it. There is still a lot to do, but this year we are very excited about the next generation we are building and finalizing, already in large scale pilot.

Speaker #1: No, the difference between the 150,000 and the 200 is mostly because, well, among the 150,000—which were supposed to be newly deployed cameras this year—some are still under deployment.

Speaker #1: But the 200 is the total—I would say, the total fleet installed today. So it's just a difference between flows and stock, if you want, right?

Speaker #1: But nevertheless, this is a very exciting stream of activity for us. We're investing a lot in this field. We know it's the next big unlock in retail—all retailers need it.

Speaker #1: There is still a lot to do, but this year we're very excited about the next generation. We are building and finalizing already in large-scale pilots.

Speaker #1: So our platform is really very promising, and as I already said, computer vision will show as a big driver of growth next year, for sure.

Thierry Gadou: Our platform is really very promising, and as I already said, computer vision will show as a big driver of growth next year, for sure. Growth in VAS, but also growth in our top line. Second, I think it is for you. I do not believe there is going to be a big change in our CapEx.

Speaker #1: Growth in our VAST, but also growth in our top line. Second, I think it's for you. I don't believe there's going to be a big change in our capex.

Speaker #5: No. Absolutely.

Thierry Lemaitre: No, absolutely.

Speaker #1: R&D?

Thierry Gadou: R&D.

Speaker #5: R&D capex should increase in the course of H2 versus H1, but to a limited extent. So you should not expect a significant increase in R&D capex between H1 and H2.

Thierry Lemaitre: R&D CapEx should increase in the course of H2 versus H1, but to a limited extent. You should not expect a significant increase in R&D CapEx between H1 and H2.

Speaker #1: And back to you now for the third question, which we didn't get.

Thierry Gadou: Back to you now for the third question, which we didn't get.

Speaker #5: All right, thanks for the call. The last one was related to the new solutions that are currently under development, either HN Captana, computer vision, or others.

Aurélien Sivignon: All right. Thanks for the call. The last one was related to the new solution that are currently under development, either HMS, Captana, or computer vision or others. Are they linked to upcoming contract announcements? I mean, similar to the relationship between EdgeSense and Walmart.

Speaker #5: Are they linked to an upcoming contract announcement? I mean, similar to the relationship between HN and Walmart.

Speaker #1: Well, I don't know exactly how to interpret your question. Of course, everything we develop today is to engineer growth, and that means to sign contracts—and preferably big contracts.

Thierry Gadou: Well, I don't know exactly how to interpret your question. Of course, everything we develop today is to engineer growth, and that means to sign contracts and preferably big contracts. So that would qualify for a lot of the things we do. Innovation in Vusion is really focused on big problems of retailers. When we crack it, basically there are big contracts behind that. So the answer is yes. It's not specific to any of the different solutions we are developing, whether it's in retail media, whether it's in computer vision, obviously. Obviously the development of all our cloud features, because what you saw today, frankly, this is for me the most important thing. When you see the usage of the platform on a number of features of the cloud platform, this is driving revenue, this is driving the value also for our customers.

Speaker #1: So that would qualify for a lot of the things we do. Innovation in fusion is really focused on big problems of retailers, and when we crack it, basically, there are big contracts behind that.

Speaker #1: So the answer is yes. But it's not specific to any of the different solutions we are developing, whether it's in retail media, whether it's in computer vision, obviously, and obviously the development of all our cloud features. Because what you saw today—I mean, frankly, this is, for me, the most important thing.

Speaker #1: When you see the usage of the platform on a number of features of the cloud platform, this is driving revenue. This is also driving value for our customers.

Speaker #1: So that's very important. So I guess the short answer is yes.

Thierry Gadou: That's very important. So I guess the short answer is yes.

Speaker #5: That's clear. Thank you.

Aurélien Sivignon: That is clear. Thank you.

Speaker #2: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press *11 on your telephone keypad and wait for your name to be announced.

Operator: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star 11 on your telephone keypad and wait for a name to be announced. Now we are going to take our next question. The question comes now of Gilles Crespel from Alizé. Your line is open. Please ask your question.

Speaker #2: And now we're going to take our next question. The question comes from Julie Crespell from Alize. Your line is open. Please ask your question.

Speaker #6: Good evening, Terry. Many thanks for taking my question, and congrats on the current results. I had only one question. You mentioned—and you confirmed—that the Walmart rollout will be completed by the end of 2026.

Gilles Crespel: Good evening, Thierry. Many thanks for taking my question, and congrats for the growing results. I have only one. You mentioned that, and you confirmed that the Walmart rollout will be completed by end 2026. When we look at bookings currently and sales trends, we can expect in 2027 a somewhat substantial sales cliff, in a way. I wanted to know if you could shed some color on how you prepare for that phase, how you consider HGMA will evolve over the beginning of next year. I do understand it is pretty early to discuss the matter, but still, it is going to be substantial. So keen to have your insights or color on this. Many thanks.

Speaker #6: When we look at bookings currently and sales trends, we can expect in '27 a somewhat substantial sales cliff, in a way. And I wanted to know if you could shed some color on how you prepare for that phase, how you consider a TNA will evolve over the beginning of next year.

Speaker #6: I do understand it's pretty early to discuss the matter, but still, it's going to be substantial. I'm keen to have your insights or color on this.

Speaker #6: Many thanks.

Speaker #1: Yes, so I think the general sort of point we made already at the end of July is that our pipeline is very substantial. We again expect quite a substantial amount of new order entries for this year, which obviously will fuel growth next year.

Thierry Gadou: Yes. I think the general sort of point we made already at the end of July is that our pipeline is very substantial. We again expect a quite substantial amount of order entries, new order entries for this year, which obviously will fuel growth next year, and an acceleration in H2, around EUR 1 billion of orders. That is coming from both existing customers and new logos, and also new products, because as I mentioned, we are significantly scaling today our non-ESL solutions revenue. This is going to continue to accelerate. I think I mentioned the numbers. They are very impressive in terms of growth since we started that strategy. There are several drivers of growth to compensate for the end of that part of the Walmart program, which is the rollout of EdgeSense in the US. So there are new projects around new solutions.

Speaker #1: And an acceleration in H2. Around €1 billion of orders. That is coming from both existing customers and new logos, and also new products because, as I mentioned, we are significantly scaling today our non-ESL solutions revenue.

Speaker #1: And this is going to continue to accelerate. I mean, I think I mentioned the numbers—they are very impressive in terms of growth since we started that strategy.

Speaker #1: So, we are really—so, I mean, there are several drivers of growth to compensate for the end of that part of the rollout of EdgeSense in the US.

Speaker #1: So there are new solutions, new projects around new solutions. There are new geographies, and you know that Walmart is very big internationally. And there are a lot of existing customers who expand the business with us, and new logos—we've announced some in 2025.

Thierry Gadou: There are new geographies, and you know that. Walmart very big international. There are a lot of existing customers who expand the business with us and new logos. We have announced some in 2025. We have announced some in H1. We will announce some new in H2. All this is, there is not something that is going to just the overall growth of the portfolio of customers, of products, of projects with old customers. At the end of the day, we consider that our pipeline is sufficient today to continue to target our initial plan, which again, initial ambition, which we set ourselves at the end of 2022, which is to be north of EUR 2 billion. I think it was EUR 2.2. We are obviously going to achieve that with a significant increase in the VAS business, but you see that business is increasing and there will be new projects.

Speaker #1: We've announced some in H1. We'll announce some new—we'll announce some new in H2. So all this is there; it's not something that's going to—it's just the overall growth of the portfolio: of customers, of products, of projects with old customers.

Speaker #1: And, at the end of the day, we consider that our pipeline is sufficient today to continue to target our initial plan, which—again—initial ambition, which we set ourselves in '22, at the end of '22.

Speaker #1: Which is to be north of $2 billion. I think it was $2.2 billion. We are obviously going to achieve that with a significant increase in the VAST business, but you see that business is increasing.

Speaker #1: And there will be new projects, so it's not just one thing. There are a lot of factors contributing to the continuation. The market, again, is not finished with the Walmart rollout in the US.

Thierry Gadou: It is a lot of things contributing to the continuation. The market, again, is not finished with the Walmart rollout in the US. There is around 20% penetration in the market today. There is a lot to do, and there is a much lower penetration in our VAS solution, which are computer vision, digital retail media, obviously all the cloud services and the EdgeSense services that we deliver. I think it is multiple streams of business that will contribute to compensating the cliffs as you mentioned. It is going to be gradually visible over time. It is sure that fact of accelerating the program has been pulling in some revenue, and so it is more difficult to achieve, but nevertheless, the market is excellent. Our performance is excellent. We see a very promising pipeline.

Speaker #1: There is around 20% penetration in the market today. There is a lot to do. And there is much lower penetration in our vast solutions, which are computer vision, digital retail media, obviously all the cloud services, and the EdgeSense services that we deliver.

Speaker #1: So, I think it's multiple streams of business that will contribute to compensating the cliffs, as you mentioned. And so, it's going to be gradually visible over time that it's clear that the acceleration of the program has pulled in some revenue, and so it's more difficult to achieve.

Speaker #1: But nevertheless, the market is excellent. Our performance is excellent. So, we see a very promising pipeline.

Speaker #6: Okay, thank you very much, Terry. What I hear is that you would focus on the top line and would not consider any lower cost reductions to the expectation, no matter what lies over the next quarter.

Gilles Crespel: Okay. Thank you very much, Thierry. What I hear is that you would focus on the top line, and would not consider any lower costs reductions to the expectation not materialize over the next quarters. At this stage, we do not see bookings going up so much that this would be completely smooth and hence my question. I can understand your point.

Speaker #6: At this stage, we don't see such an upstream well. We don't see bookings going up so much that this would be completely smooth, and hence my question.

Speaker #6: But I can understand your point.

Speaker #1: No, I understand your point. I see your point. You mean adjusting OPEX for the case where—okay. Well, I think, as you said, we're confident on the top line.

Thierry Gadou: No, I understand your point. I see your point. You mean adjusting OpEx for the case where Okay. Well, I think as you said, we are confident on the top line. We have shown in the past, I remember the COVID period, that we know how to adjust. We have had those moments in our times where there was also ups and downs, and we have seen our ability to adjust. Frankly, in a market that has the potential that we will talk about in November about our Vusion strategy plan, it would be a very strange thing to start about restructuring. The market has very strong potential in the future. There are strong needs. I do not know if you all realize how much the stores and the modernization of stores is becoming more and more central in the strategy of retailers all over the world, and we are embodying this strategy.

Speaker #1: We have shown in the past—I remember the COVID period—that we know how to adjust. We've had those moments in our times where there were also ups and downs, and we've seen our ability to adjust.

Speaker #1: So, but frankly, in a market that has the potential that we will talk about in November about a Fusion 30 plan, it would be a very strange thing to start talking about restructuring. This is—I mean, the market has very strong potential in the future.

Speaker #1: There are still strong needs. The stores—I don't know if you all realize how much the stores and the modernization of stores are becoming more and more central in the strategy of retailers all over the world.

Speaker #1: And we are embodying this strategy. So, I think it's a yes. We're not in the mindset of saying we're going through preventive restructuring because we think there might be a moment.

Thierry Gadou: I think it's, yes, we're not in the mindset of saying we're going through preventive restructuring because we think there might be a moment. I think that's not what the market deserves. There is strong needs in the market. It's not the right, I think. But we also show, I think every quarter, every semester, that we do care about profitability and that we make very careful choices in managing cash, in managing cost. Our revenue per employee, just to give you a sense, has been nearly multiplied by three over 15 years. We're talking about we're very careful about managing financials, but yet we're in a growth business and there is growth potential in our portfolio solutions.

Speaker #1: I think that's not what the market deserves. There are strong, strong needs in the market. And so, yeah. It's not the right, I think.

Speaker #1: But we also show, I think, every quarter, every semester, that we do care about profitability and that we make very careful choices in managing cash, in managing cost, in managing our revenue per employee—just to give you a sense.

Speaker #1: I mean, I've nearly tripled over 15 years, right? So we're talking about being very careful in managing financials, but we're also in a growth business, and there is growth potential in all our portfolio solutions.

Speaker #1: So we need to be betting on that as well, and not looking only at short-term volatility, but also the structural growth.

Thierry Gadou: We need to be also betting on that and not looking only at a short term sort of volatility, but also the structural growth. Sorry for this long answer.

Speaker #1: Sorry for this long answer.

Gilles Crespel: Thank you. Thank you very much for the answer, Thierry.

Speaker #6: Thank you. Thank you very much for the answer, too.

Speaker #2: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press *11 on your telephone keypad. And now we're going to take our next question.

Operator: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star 1 1 on your telephone keypad. Now we're going to take our next question. Just give us a moment. The question comes to line of Luka Dowsa from Berenberg. Your line is open. Please ask your question.

Operator: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star 1 1 on your telephone keypad. Now we're going to take our next question. Just give us a moment. The question comes to line of Loco Douza from Berenberg. Your line is open. Please ask your question.

Speaker #2: Just give us a moment. And the question comes from local Dozer from Bernberk. Your line is open. Please ask your question.

Speaker #7: Good evening. Just one question on my side. On the guidance on the margins: H1 adjusted EBITDA margin was up 2.4 points year-on-year, but your full-year guidance is more than 100 basis points of improvement.

Luka Dowsa: Good evening. Just one question on my side on the guidance on the margin. H1 adjusted EBITD margin was up 2.4 points year-on-year, but your full-year guidance is more than 100 bps of improvement. Should we expect the margin improvement to slow down in H2? I understand the In-Store Media integration plays a part, but is there anything else?

Loco Douza: Good evening. Just one question on my side on the guidance on the margin. H1 adjusted EBITD margin was up 2.4 points year-on-year, but your full-year guidance is more than 100 bps of improvement. Should we expect the margin improvement to slow down in H2? I understand the In-Store Media integration plays a part, but is there anything else?

Speaker #7: So, should we expect the margin improvement to slow down in H2? I understand the installment integration plays a part, but is there anything else?

Speaker #1: Well, I think that's what drives.

Thierry Lemaitre: Well, I think that what drives the EBITD margin up is on one side, the VCM rate, and on the second side, the OpEx to sales ratio. We do not expect the VCM rate to significantly increase in H1 versus H2. On the OpEx side, the OpEx to sales ratio used to improve the past years in H2 versus H1, but it was on the back of the strong growth of revenues between H1 and H2. We do not anticipate a significant revenue growth this year between H1 and H2. Therefore, the OpEx to sales ratio should show a limited improvement, and we do not feel the need to change the guidance that you've got on the EBITD margin.

Speaker #5: The EBITDA margin up is, on one side, the VCM rate, and on the other side, the OPEX to sales ratio. We do not expect the VCM rate to significantly increase in H1 versus H2.

Speaker #5: And on the OPEX side, the OPEX to sales ratio used to improve in past years in H2 versus H1, but it was on the back of the strong growth of revenues between H1 and H2.

Speaker #5: We do not anticipate significant revenue growth this year between H1 and H2. Therefore, the OPEX-to-sales ratio should show limited improvement, and we do not feel the need to change the guidance that you've received on the EBITDA margin.

Speaker #7: Okay. Very good. Thank you.

Luka Dowsa: Okay. Very clear. Thank you.

Loco Douza: Okay. Very clear. Thank you.

Speaker #2: Thank you. And now we're going to take our next question. The question comes from Valentine Paul Jahan, from Stifel. Your line is open.

Operator: Thank you. Now we are going to take our next question. The question comes from the line of Valentin Paul-Jehan from Oddo BHF. Your line is open. Please ask your question.

Operator: Thank you. Now we are going to take our next question. The question comes from the line of Valentin Paul-Jehan from Stifel. Your line is open. Please ask your question.

Speaker #2: Please ask your question.

Speaker #7: Good evening, everybody. Can you hear me well?

Valentin Paul-Jehan: Good evening, everybody. Hear me well?

Valentin Paul-Jahan: Good evening, everybody. Hear me well?

Speaker #1: Yep. We can.

Thierry Lemaitre: Yep. We can.

Valentin Paul-Jehan: Okay. Just wanted to say congratulations for the strong margin expansion in H1 because actually you answered my questions. I would really thank you.

Valentin Paul-Jahan: Okay. Just wanted to say congratulations for the strong margin expansion in H1 because actually you answered my questions. I would really thank you.

Speaker #7: Okay, so I just wanted to say congratulations for the strong margin expansion in H1. Actually, you answered my questions, so I just want to thank you.

Speaker #1: Okay. Okay. Looks like I have more questions. Maybe?

Thierry Lemaitre: Okay. Looks like there are no more questions. Maybe,

Speaker #2: Dear participants, as a reminder, if you wish to ask a question, please press star 1-1. Dear speakers, we'll just give a moment to our participants.

Operator: Dear participants, as a reminder, if you wish to ask a question, please press star one one. Dear speakers, we will just give a moment to our participants to do the combination. Just give us a moment. Now we are going to take our next question. The question comes from the line of Xavier Lemonnier from Bank of America Securities. Your line is open. Please ask the question.

Operator: Dear participants, as a reminder, if you wish to ask a question, please press star one one. Dear speakers, we will just give a moment to our participants to do the combination. Just give us a moment. Now we are going to take our next question. The question comes from the line of Xavier Le Mené from Bank of America Securities. Your line is open. Please ask the question.

Speaker #2: To do the combination, just give us a moment. And now we're going to take our next question. The question comes from Xavier Lemonet, from Bank of America Securities.

Speaker #2: Your line is open. Please ask your question.

Speaker #7: Yeah, thank you very much for taking my question. So, hi Thierry and Thierry. Quick one for me, actually. You came with a target back in 2022 and you said, "Okay, $2 billion—or actually $2.2 billion—of sales by 2027 seems achievable." Now we are all—I mean, all the market is questioning the fact that after Walmart being done, the biggest retailer in the world...

Xavier Lemonnier: Yeah. Thank you very much for taking my question. So hi, Thierry and Thierry. Quick one for me, actually, but you came with a target back to 2022, and you said, okay, EUR 2 billion or actually EUR 2.2 billion of sales by 2027 seems achievable. Now all the market is questioning the fact that after Walmart being done, the biggest retailer in the world, so it would be more challenging. So can you help us potentially just to understand what you had in mind back to 2022? Were you expecting, of course, to sign Walmart? Or did you have another plan and potentially, what is going next year is part of the plan that did not happen because of Walmart, if that makes sense.

Xavier Le Mené: Yeah. Thank you very much for taking my question. So hi, Thierry and Thierry. Quick one for me, actually, but you came with a target back to 2022, and you said, okay, EUR 2 billion or actually EUR 2.2 billion of sales by 2027 seems achievable. Now all the market is questioning the fact that after Walmart being done, the biggest retailer in the world, so it would be more challenging. So can you help us potentially just to understand what you had in mind back to 2022? Were you expecting, of course, to sign Walmart? Or did you have another plan and potentially, what is going next year is part of the plan that did not happen because of Walmart, if that makes sense.

Speaker #7: So it would be more challenging. So can you help us potentially just to understand what you had in mind back in 2022? Were you expecting, of course, to sign Walmart, or did you have another plan? And potentially, what is going next year—is that part of a plan that did not happen because of Walmart, if that makes sense?

Thierry Lemaitre: It is a sophisticated question. No, but I think we had planned, of course, to sign Walmart because even at the time we presented our plan, our Vusion '27 plan. In fact, we had already announced that we had this strategic partnership, developing a new technology, and that we were in a very, let us say, large-scale pilot because it had been announced around the beginning of the year 2022, and we had the CMD, the Capital Market Day in November. So of course, we had planned that. We had planned a longer deployment period. In 2023, we had announced that it would be around five to seven years because that is the sort of guidance we had. Therefore we had a, I would say, a smoother kind of revenue stream from that rollout.

Thierry Gadou: It is a sophisticated question. No, but I think we had planned, of course, to sign Walmart because even at the time we presented our plan, our Vusion '27 plan. In fact, we had already announced that we had this strategic partnership, developing a new technology, and that we were in a very, let us say, large-scale pilot because it had been announced around the beginning of the year 2022, and we had the CMD, the Capital Market Day in November. So of course, we had planned that. We had planned a longer deployment period. In 2023, we had announced that it would be around five to seven years because that is the sort of guidance we had. Therefore we had a, I would say, a smoother kind of revenue stream from that rollout.

Speaker #1: It's a sophisticated question. No, but I think we had planned, of course, to sign Walmart. Because even at the time we made we presented our plan or Vision 27 plan, in fact, we had already announced that we had this strategic partnership developing a new technology and that we were in very let's say large-scale pilot because it had been announced around the beginning of the year 27 and 22 and we had the CMD, the capital market day on the in November.

Speaker #1: So, of course, we had planned that. We have planned a longer, sort of a longer deployment period in '23. We had announced that it would be around five to seven years.

Speaker #1: Because that's the sort of guidance we had. Therefore, we had, I would say, a smoother kind of revenue stream from that rollout.

Speaker #1: And of course, we had not planned this acceleration, and we certainly had not planned to do 50% growth last year. Because of that acceleration, we never planned anything.

Thierry Gadou: And of course, we had not planned this acceleration, and we certainly had not planned to do 50% growth last year because of that acceleration. We never planned anything. We had a plan of 20%, 30% growth relatively long term. We had no plans for 50% growth, half a billion revenue addition last year. But we are very happy about it because it shows the success of the program and the incredible value that it delivers. I think the numbers that we showed and all the examples that we illustrated today show it is a great technology. It is a very advanced technology. There is nothing like it right now delivering these kind of benefits at this scale in the world. So that is great. But it did create a revenue pull-in from 2028 and 2029 to 2025 and 2026. So that was unexpected.

Speaker #1: We had a plan of 20 to 30 percent growth, relatively long term. We had no plans for 50 percent growth, or a half billion revenue addition last year.

Speaker #1: So, that was, I mean, but we're very happy about it because it shows the success of the program and the incredible value that it delivers.

Speaker #1: And I think the numbers that we showed, and all the examples that we illustrated today, show it's a great technology. It's a very advanced technology.

Speaker #1: There is nothing like it right now, delivering this kind of benefits at this scale in the world. So that's great, but it did create a revenue pooling from '28 and '29 to '25 and '26.

Speaker #1: So that was unexpected. On the other hand, we have plenty of other customers. You're right to say Walmart is big, but Walmart is, roughly, in a global market—let's say roughly 7% of the total market.

Thierry Lemaitre: On the other hand, we have plenty of other customers. You are right to say Walmart is big, but Walmart is roughly in a global market, let's say roughly 7% of the total market. So there is still a lot of room for growth in the market. We estimate around 20% of penetration today in our total addressable market.

Thierry Gadou: On the other hand, we have plenty of other customers. You are right to say Walmart is big, but Walmart is roughly in a global market, let's say roughly 7% of the total market. So there is still a lot of room for growth in the market. We estimate around 20% of penetration today in our total addressable market.

Speaker #1: So, there is still a lot of room for growth in the market. We estimate around 20% penetration today in our total addressable market.

Speaker #1: And we think that penetration will move probably from 20% to 50%, because you can see acceleration of adoption, and there is even more space for growth for all the—what we call the VAST solutions—which are, in fact, the non-ESL solutions. These are all the software and services that drive new use cases, but also computer vision, retained media, data analytics, and AI solutions.

Thierry Gadou: We think that penetration will move probably from 20% to 50%, because you can see acceleration of adoption. There is even more space of growth for all the, what we call the VAS solution, which are in fact the non-ESL solutions, which are all the software and the services that drive new use cases, but also computer vision, retail media, data analytics, AI solutions. So all this is even much more under-penetrated today, and we are investing a lot on this. Today, we really shifted in four years from an ESL company, in fact, the ESL leader, which we are still obviously, but to a much more diversified digital transformation enabler, and with a very rich platform of solutions. I mentioned already EUR 400 million in pro forma terms at the end of this year.

Speaker #1: So all this is even much more underpenetrated today, and we're investing a lot in this right now. You cannot— we really shifted in four years from an ESL company.

Speaker #1: In fact, we are still obviously the ESL leader. But now, we are a much more diversified digital transformation enabler, with very rich platform solutions. I already mentioned €400 million in pro forma terms at the end of this year.

Thierry Gadou: You should not forget we were at EUR 15 million just in 2017, so nine years ago. This is a big growth, right? This is going to continue because right now we are scratching the surface on computer vision, is going to be a very important technology. So it is complex. There is a lot of research. I think we will try to open a window on everything we do on 18 November so that you realize the deep technology that we are developing in our nine research labs. I think it is very important to understand that, because we are cracking very complex problems which have a lot of scale. Again, nothing goes as you plan five years ahead, right? If I look at the plan that we set ourselves, first, I believe that you do not manage growth and long-term growth without setting ambitious targets.

Speaker #1: You should not forget we were at 15 million just in 2017, so nine years ago. This is big growth, right? And this is going to continue, because right now we're just scratching the surface on computer vision.

Speaker #1: It's going to be a very, very important technology, and so it's complex. There is a lot of research, and I think we’ll try to open a window on everything we do on November 18th so that you realize the deep technology that we are developing in our nine research labs. I think it’s very important to understand that, because we're cracking very complex problems that have a lot of scale.

Speaker #1: So I mean, again, nothing goes, as you plan, five years ahead, right? So it's but it's if I look at the if I look at the if I look at the plan that we set ourselves, first, I believe that you don't manage growth and long-term growth without setting ambitious target.

Speaker #1: Otherwise, you never engineer strong growth over a long period of time. Without ambitious targets, which are challenging targets. And a company like Vusion, we're about 26–27% annual growth rate on average for 15 years.

Thierry Gadou: Otherwise, you never engineer strong growth over a long period of time without ambitious targets, which are challenging targets. A company like Vusion, we are about 26% to 27% annual growth rate in average for 15 years. That is the first growth champion in France, in the SBF 120. Simply the first. So why? Because we set ourselves ambitious growth target. But when I look at the reason why people may challenge that is because, yes, there was some revenue pull in, so it creates a challenge to compensate that pull in. But what were the big objectives of 2027 when we were at the end of 2022? It was EUR 2.2 billion, out of which EUR 650 million in VAS. Frankly, when I look at our pipeline and our pipeline right now, I think those EUR 650 million in VAS are really achievable, I can tell you.

Speaker #1: And that's the first growth champion in France in the SBF 120—simply the first. So, I mean, wise, because we set ourselves ambitious growth targets.

Speaker #1: But when I look at the reason why people may challenge that, it is because, yes, there was some revenue pooling. So it creates a challenge to compensate for that pooling.

Speaker #1: But what were the big objectives for 2027 when we were at the end of 2022? It was $2.2 billion, out of which $650 million was in VAST.

Speaker #1: And frankly, when I look at our pipeline—our pipeline right now—I think those €650 million in VAST are really achievable, I can tell you.

Speaker #1: They are even beatable, as a matter of fact, because there's so much need in those new solutions that we have been working on for the past five, seven, ten years, sometimes.

Thierry Gadou: They are even beatable as a matter of fact, because there is so much needs in those new solutions that we have been working on for the past 5, 7, 10 years sometimes. We had a target of 70,000 stores in install base, and we are already above that, probably around 80,000 stores. We had an EBITDA target of 22%. Four years down the road, we are at 19%, right? We had a target also to stay at a reasonable net debt to EBITDA ratio of less than 2 times net debt. We are much better than that today. None of that would have happened if we had not set ourselves growth targets. It means it is risky. You may miss a step, you may. Overall, you get much higher. If you shoot for the moon, you will land among the stars.

Speaker #1: We had a target of 70,000 stores in the installed base, and we're already above that—probably around 80,000 stores. We had a margin of EBITDA target of 22%.

Speaker #1: Four years down the road, we're at 19, right? We had a target also to stay at a reasonable net debt to EBITDA ratio of less than two times net debt.

Speaker #1: We're much better than that today. But none of that would have happened if we had not set ourselves gross targets. It means it's risky.

Speaker #1: You may miss a step. You may, yes, but overall, you get much higher. If you shoot for the moon, you will land among the stars.

Speaker #1: But so it's really a DNA that we have. We're a high-growth company because we set ourselves difficult targets. And if they were not difficult—just watch us.

Thierry Gadou: It is really a DNA that we have. We are a high-growth company because we set ourselves difficult targets. If it were not difficult, just watch us.

Speaker #2: Thank you.

Xavier Lemonnier: Thank you.

Xavier Le Mené: Thank you.

Speaker #3: Next question, please.

Thierry Gadou: Next question, please.

Speaker #2: Yes, of course. Now we're going to take our next question. Just give us a moment. And the next question comes from Laurent Geleba with BNP Paribas.

Operator: Yes, of course. Now we are going to take our next question. Just give us a moment. The next question comes from the line of Laurent Gilabert from BNP Paribas. Your line is open. Please ask your question.

Operator: Yes, of course. Now we are going to take our next question. Just give us a moment. The next question comes from the line of Laurent Gélébart from BNP Paribas. Your line is open. Please ask your question.

Speaker #2: Your line is open. Please ask your question.

Speaker #3: Yes, good evening, Therese. I have three questions. So, the first one: order index, because it's an abstraction of the market. Are you still super confident on the $1 billion order index to be achieved in H2, or do you believe there is a risk of potential slippage into 2027?

Laurent Gilabert: Yes, good evening, Thierry. I have three questions. The first one regards order index because it is an observation of the market. Are you feeling super confident on the EUR 1 billion order index to be achieved in H2, or do you believe there is a risk of potential slippage into 2027? That is one. The second regards also such order index. As you are clearly mentioning the rise of new solutions, maybe on this EUR 1 billion order index you are expecting, can you share with us what could be the part of ESL and the part of other product lines? The third one relates to the new use cases you were referring to for the shoppers. Are you being paid for that? When a shopper looks for a product in a store with a fisher, are you going to be paid by the retailer or not?

Laurent Gélébart: Yes, good evening, Thierry. I have three questions. The first one regards order index because it is an observation of the market. Are you feeling super confident on the EUR 1 billion order index to be achieved in H2, or do you believe there is a risk of potential slippage into 2027? That is one. The second regards also such order index. As you are clearly mentioning the rise of new solutions, maybe on this EUR 1 billion order index you are expecting, can you share with us what could be the part of ESL and the part of other product lines? The third one relates to the new use cases you were referring to for the shoppers. Are you being paid for that? When a shopper looks for a product in a store with a fisher, are you going to be paid by the retailer or not?

Speaker #3: That's one. The second regards also such order index. As you are clearly mentioning the rise of new solutions, maybe on this 1 billion order index, you are expecting—can you share with us what could be the part of ESL and the part of other product lines?

Speaker #3: And the third one relates to the new use cases we're referring to for the shoppers. Are you being paid for that? I mean, when a shopper looks for a product in a store, are you going to be paid by the retailer or not?

Speaker #1: Okay, thank you, Laurent. On the third question, you were talking about the shopper solution, right?

Thierry Gadou: Okay. Thank you, Laurent. On the third question, you were talking about the shopper solution, right?

Speaker #3: Yes.

Laurent Gilabert: Yes.

Laurent Gélébart: Yes.

Speaker #1: Yeah, okay. So regarding the order entry, I don't have a complete crystal ball about the timing of every contract, but what I can judge is the progress of our pipeline.

Thierry Gadou: Yeah. Okay. Yeah. Regarding the order entry, I do not have a complete crystal ball about the timing of every contract, but what I can judge is the progress of our pipeline. We have a significant pipeline, and this is clearly We have a higher target for this year internally, and of course, we are confident. What I want to say is that even if you mentioned a possible slippage, maybe you can have a 2 weeks or a 1 month delay in signing something. It will not affect the ability, if it is a slippage in Q4 versus January or whatever, it will not affect the possibility of delivering what we have as a target for 2027.

Speaker #1: So, we have a significant pipeline. And clearly, we have a higher target for this year internally. Of course, we are confident, but what I want to say is that—even as you mentioned—the possible slippage.

Speaker #1: Yeah, maybe you can have a two-week or a one-month delay in signing something. It will not affect the ability if it's a slippage in Q4 versus January, whatever.

Speaker #1: It will not affect the possibility of delivering what we have as a target for '27. But for sure, we are confident in this order entry number because the pipeline is big, both in Europe and in America.

Thierry Gadou: But for sure, we are confident on this order entry number because the pipeline is big, both in Europe, and in America, North, by the way, and South, or Central and South. And moving to your second question, yes, it does incorporate a lot of the new solutions. Clearly, that is something that you are seeing really more and more clearly. We are becoming a much more diversified solution company, a platform that has a number of product lines, and those product lines reach critical scale. And therefore, we have more and more in the pipeline, very big numbers in the new solutions.

Speaker #1: North, by the way, and South — or Central and South. And, moving to your second question: Yes, it does incorporate a lot of the new solutions.

Speaker #1: I mean, clearly that's something that you are seeing more and more clearly. We are becoming a much more diversified solution company—a platform with a number of product lines, and those product lines become rich, critical scale.

Speaker #1: And therefore, we have more and more in the pipeline—very big numbers in the new solutions.

Speaker #3: Is this $1 billion? Can you quantify it, Therese? I mean, 40%, 30%, 25%?

Laurent Gilabert: In this EUR 1 billion, can you quantify it? Like 40%, 30%, 20%?

Laurent Gélébart: In this EUR 1 billion, can you quantify it? Like 40%, 30%, 20%?

Speaker #1: Yeah. I would say it's above 30%, which is important because we're talking about a company, a set of solutions which are— I mean, basically, that represents 15% of our revenue in H1, right?

Thierry Gadou: Yeah, I would say it is above 30%. Which is important because we are talking about a set of solutions. Basically VAS represents 15% of our revenue in H1, right? It should be around 20% for the full year in pro forma terms with ISM, but it is 15% to 20%, right? So saying that it is over 30% of our short-term sort of pipe is already saying a lot about the future too. So that is the point. And your third question is about one of these solutions, by the way. Everything about the activity of the platform is creating, let us say, differentiation, cloud revenues, because when we say cloud, we mean different products from the cloud platform. So yes, it is obviously everything that is driving the usage means driving our revenue, but also driving the differentiation of the company.

Speaker #1: It should be around 20% for the full year in pro forma terms with ASM, but it's 15 to 20, right? So saying that it's over 30% of our short-term sort of pipe is already saying a lot.

Speaker #1: But the future too, so that's the point. And your third question is about one of these solutions, by the way. Everything about the activity of the platform is creating, let's say, differentiated cloud revenues, because when we say cloud, we mean different products on the cloud platform.

Speaker #1: So yes, it's obviously everything that is driving the usage means driving our revenue, but also driving the differentiation of the company, and therefore the attractiveness of the platform. When people choose, they will more and more be willing to choose platforms that can deliver this kind of use cases, because they're exciting, because they see shoppers excited.

Thierry Gadou: And therefore, the attractiveness of the platform when people choose, they will more and more be willing to choose platforms that can deliver this kind of use cases because they are exciting, because they see shoppers excited, and therefore they want to have the capability of doing that, which is not that easy, I can tell you. And therefore, it is a big differentiation. That is why it is a big milestone to see this excitement all of a sudden in 2026. I would not say we would have guaranteed that. We are very, very happy about it because it is showing and of course, it is driving differentiation revenue, premiumization of the company and diversification of our revenues flows. Which means also being less dependent on big one-off hardware revenues on ESL. This is also the strategy to be a much more balanced portfolio. I hope I am addressing your points, Laurent.

Speaker #1: And therefore, they want to add the capability of doing that, which is not that easy, I can tell you. And therefore, it's a big differentiation.

Speaker #1: That's why it's a big milestone to see this excitement all of a sudden in '26. I wouldn't say we would have guaranteed that. We're very, very happy about it because it's showing.

Speaker #1: And of course, it's driving differentiation, revenue, premiumization of the company, and diversification of our revenue flows, which means also being less dependent on big one-off hardware revenues on ESL.

Speaker #1: This is also the strategy—to have a much more balanced portfolio. I hope I'm addressing your points, Laurent.

Laurent Gilabert: Yes, you are. Maybe I have the last one regarding e-paper screen. As you know, E Ink is super bullish on this kind of product line, and I know you have been working with some of your key clients on such products. When do you see, let's say, traction coming in for these kind of products?

Laurent Gélébart: Yes, you are. Maybe I have the last one regarding e-paper screen. As you know, E Ink is super bullish on this kind of product line, and I know you have been working with some of your key clients on such products. When do you see, let's say, traction coming in for these kind of products?

Speaker #3: Yes, you are. Maybe I have the last one regarding the e-paper screen. Well, as you know, E Ink is super bullish on this kind of product line.

Speaker #3: And I know you have been working with some of your key clients on such products. So when do you see, let's say, traction coming in for these kinds of products?

Speaker #1: So yes, you're totally right. There is a big excitement around this. E Ink, as you know, one of our large shareholders, is also a big partner in this.

Thierry Gadou: Yes, you are totally right. There is a big excitement around this. E Ink, who's, as you know, one of our large shareholders, is also a big partner in this. The whole thing is the maturity of full color. We are getting there. It is getting better and better. At retail grade, so the robustness of retail that is required by retail, et cetera. It is not the fact that it is scientifically ready, but I would say scalable and robust in retail environment. But we are close to that now. It is really something that is going to be central. I can tell you something. The digitization of retail media, which is what we want to enable, colored paper is going to be central.

Speaker #1: The whole thing is the maturity of full color. So it's we're getting there. It's getting better and better. I mean, add retail grade. So the robustness of retail that is required by retail, etc.

Speaker #1: It's not the fact that it's scientifically ready, but I would say scalable and robust in a retail environment. But we're close to that now. It's really something that is going to be central.

Speaker #1: I can tell you something. The digitization of retail media, which is what we want to enable, is going to be central. Coloring paper is going to be central.

Speaker #1: It's not the only thing, because you also need to have a platform that can orchestrate multiple touchpoints, multiple devices—including LCDs—and plenty of different things in an overall orchestration of media in-store.

Thierry Gadou: It is not the only thing, because you need to be also having a platform that can orchestrate multi-touch points, multi-devices, including LCDs, including plenty of different things in an overall orchestration of media in store. But e-paper is going to be central because it is bringing a lot of value. It is reducing a lot the energy cost. And also it allows you to have much more touchpoints throughout the store because you cannot have electricity everywhere at all the point, and power drops everywhere in the store. So it is going to be a very important. We are going to see in 2027 this kind of solution scale. We have already signed a few contracts that are just waiting for rollout. And that is in Europe now, but it is going to be also coming to the US. So it is also one of the streams of our business development.

Speaker #1: But e-paper is going to be central because it's bringing a lot of value. It's reducing energy costs significantly, and also it allows you to have many more touchpoints throughout the store, because you can't have electricity and power drops everywhere in the store at all times.

Speaker #1: So it's going to be very important, so we're going to see in '27 this kind of solution scale. We've already signed a few contracts that are just waiting for rollout.

Speaker #1: And that's in Europe now, but it's also going to be coming to the US. So it's also one of the streams of our business development.

Speaker #3: Thank you, Therese.

Laurent Gilabert: Thank you, Thierry.

Laurent Gélébart: Thank you, Thierry.

Speaker #2: Thank you. I will now take the last question for today. The question concerns Hubert Massé from Massé & Cie. Your line is open.

Operator: Thank you. Now we are going to take our last question for today. The question comes in of Hubert Maréchal from Maréchal & Cie. Your line is open, please ask your question.

Speaker #2: Please ask your question.

Speaker #3: Good evening, Therese. Can you hear me all right?

Hubert Maréchal: Good evening, Thierry. Can you hear me all right?

Hubert Marceau: Good evening, Thierry. Can you hear me all right?

Speaker #1: Yes, good evening, Hubert. Yes, absolutely.

Thierry Gadou: Yes. Good evening, Hubert. Yes, absolutely.

Speaker #3: Yeah, I'm still amazed you are struggling with those questions for 2027, please. Maybe the point I will make is not relevant, but you'll tell us very quickly.

Hubert Maréchal: I am still amazed you are struggling with those questions from the 2027 cliff. Maybe the point I will make is not better than that you will tell us very quickly. How much time did it take Vusion to, let us say, close the deal with Walmart? I mean, the May 2023 deal, how much time has elapsed between the first pilot you realized at Walmart and the closing of the big contract in terms of years?

Hubert Marceau: I am still amazed you are struggling with those questions from the 2027 cliff. Maybe the point I will make is not better than that you will tell us very quickly. How much time did it take Vusion to, let us say, close the deal with Walmart? I mean, the May 2023 deal, how much time has elapsed between the first pilot you realized at Walmart and the closing of the big contract in terms of years?

Speaker #3: How much time did it take SCS, then Vision, to, let's say, close the deal with Walmart? I mean, the May 2023 deal. How much time elapsed between the first pilot you realized at Walmart and the closing of the big contract, in terms of years?

Speaker #1: I think it depends. Well, I would say probably four years.

Thierry Gadou: Well, I would say probably 4 years.

Speaker #3: Four years. Okay. So now, in the field.

Hubert Maréchal: 4 years. Okay. Now, in the field, do you see

Hubert Marceau: 4 years. Okay. Now, in the field, do you see

Speaker #1: I mean, it was—I mean, it depends when you decide to start, I think. Because as you know, we already had collaboration in international countries outside the US with Walmart.

Thierry Gadou: It depends when you decide to start. Because as you know, we had already collaboration in international countries outside US with Walmart, so we knew the company. But I think the discussions about the US and the need in terms of the technology roadmap and the requirements, et cetera, started around this 2019 year. Then of course, there were prototypes, there were pilots, there were large-scale pilots. You don't find such an incredible first contract because it's a first contract. It's not the contract. It's the first one of, I hope many others. Yes, it takes time. But those are very long-lasting relationships afterwards. This is what you have to realize. We have customers who are driving significant revenues for more than 20 years. So it takes time. I don't want to frighten anybody. It takes time, but then it also lasts very long, these relationships. Sorry, Hubert.

Speaker #1: So we knew the company, but I think the discussions about the US and the need, in terms of the technology roadmap and the requirements, started around the 2019 year.

Speaker #1: And then, of course, there were prototypes. There were pilots. There were large-scale pilots. You don't find such an incredible first contract because it's a first contract.

Speaker #1: It's not a big contract. It's the first one of, I hope, many others. But yes, it takes time to build, but those are very long-lasting relationships afterwards.

Speaker #1: I mean, this is what you have to realize. We have customers who are driving significant revenues for more than 20 years, so it takes time.

Speaker #1: I don't want to frighten anybody. It takes time, but then it also lasts very long, these relationships. Sorry, Hubert.

Speaker #3: No, no, no. That's a good point. My other point is the following: since 2023, when you signed with Walmart, have you experienced in the field an acceleration in terms of the decision-making process by your current prospect in the US? I'm talking only in the US.

Hubert Maréchal: No, that's a good point. My other point is the following. Since 2023, when you signed with Walmart, have you experienced in the field an acceleration in terms of decision-making process by your current prospects in the US? I'm talking only in the US.

Hubert Marceau: No, that's a good point. My other point is the following. Since 2023, when you signed with Walmart, have you experienced in the field an acceleration in terms of decision-making process by your current prospects in the US? I'm talking only in the US.

Speaker #1: Well, I think what is very clear, I don't want to talk necessarily about history. But what I see is that we have a pipeline and a number of very advanced pilots.

Thierry Gadou: Well, I think what is very clear, I do not want to talk necessarily about history, but what I see is that we have a pipeline and a number of very advanced pilots and the type of conversation that has changed, and we can see things are accelerating. Because first people are just watching what is happening in Walmart, and it is, by all means, very impressive. The other thing is that there is a pressure on a number of operational KPIs in retail, and they know that digitizing the store is a need. So yes, there is an acceleration. But I think what is also very interesting is there is a change in the level at which the conversations take place. Now we are at CXO level, CEO level in most of the cases. Those are becoming strategic programs. So I guess it is a change in nature also.

Speaker #1: And the type of conversation has changed, and we can see things are accelerating because, I mean, first, people are just watching what's happening in Walmart.

Speaker #1: And by all means, very, very impressive. The other thing is that there is pressure on a number of operational KPIs in retail.

Speaker #1: And they know that digitizing the store is a need. So yes, there is an acceleration. But I think what is also very interesting is there is a change in the level at which...

Speaker #1: Conversations take place. Now we are at the CXO level, CEO level in most cases. Those are becoming strategic programs. And so, I guess it's a change in nature also.

Thierry Gadou: I think people now believe that this is really a strategic transformation, not only an imperative from an economic standpoint, but also a strategic transformation that goes much beyond saving a little bit of time in price automation. That is why our platform is becoming really relevant. Today I showed you, and I wanted to illustrate that so that people begin to really understand what we are about. We are changing operations in the store in many different processes. That is because of the holistic nature of the HMS platform. So I think it takes a bit of time, but it is accelerating. Come to your third point, Hubert.

Speaker #1: I think people now believe that this is really a strategic transformation—not only an imperative from an economic standpoint, but also a strategic transformation that goes much beyond saving a little bit of time in price automation.

Speaker #1: That is why our platform is becoming really relevant. When I showed you today, I showed you—and I wanted to illustrate that so that people begin to really understand what we are about. We're changing operations in the store.

Speaker #1: In many, many different processes. And that's because of the holistic nature of H&M's platform. So I think it takes a bit of time, but it's accelerating.

Speaker #1: Come to your third point, Hubert.

Speaker #3: Yeah, third point—and the last one. Thank you. I mean, I'm trying to make people understand that your industry has always been back-end loaded, and sometimes we've got to be a little bit more patient depending on the period.

Hubert Maréchal: Yeah. Third point and the last one. Thank you. I am trying to make the people understand that your industry has always been back-end loaded, and sometimes we have got to be a little bit more patient, depending on the period. Now, my last point is, unless I missed something in the course of the conference, what can you say about the pilot for Captana with Walmart? Can you disclose anything or it is too soon?

Hubert Marceau: Yeah. Third point and the last one. Thank you. I am trying to make the people understand that your industry has always been back-end loaded, and sometimes we have got to be a little bit more patient, depending on the period. Now, my last point is, unless I missed something in the course of the conference, what can you say about the pilot for Captana with Walmart? Can you disclose anything or it is too soon?

Speaker #3: Now, my last point is, unless I missed something during the course of the conference, what can you say about the pilot for Captaina with Walmart?

Speaker #3: Can you disclose anything, or is it too soon?

Speaker #1: Well, it's too soon. I mean, I mean, it's too yes, it's too soon because as always, things depend entirely on our customers. And so we would be very probably not I mean, very inappropriate to be to tell anything about a decision that entirely resides in our customer on the customer side.

Thierry Gadou: Well, it is too soon. Yes, it is too soon because, as always things depend entirely on our customers. And so we would be very inappropriate to tell anything about a decision that entirely resides on the customer side. But what I can say is that we have a fairly sizable implementation of the pilot now, which is really at a significant scale. It is performing very well. It is a very sophisticated and complex product. As I said, it is the fifth generation, but it is also a leapfrog sophistication in terms of the solution, and we will try to. So it is going well. But there are other Pilots. And there is a lot of demand also on this product, which is now a bit more visible in stores. And so there is a lot of pilots who are about to start on that same product in fairly large retailers.

Speaker #1: But what I can say is that we have a fairly sizable implementation of the pilot now, which is really at a significant scale, and it's moving; it's performing very well.

Speaker #1: It's a very, very sophisticated and complex product. As I said, it's the fifth generation, but it's also a leap in sophistication in terms of the solution.

Speaker #1: And we will try to, but it's going well. There are other pilots, and there is a lot of demand also for this product, which is now a bit more visible in stores.

Speaker #1: And so, there are a lot of pilots who are about to start on that same product in fairly large retailers. So anyway, Computer Vision, generally speaking, is going to be a fantastic stream of growth for us.

Thierry Gadou: Computer vision, generally speaking, is going to be a fantastic stream of growth for us. We bet on this a very long time ago. We knew retailers would need an eye on the shelf everywhere, and artificial intelligence is now enabling this, and that is why it is so important.

Speaker #1: We bet on this a very long time ago. We knew retailers would need an eye on the shelf everywhere, and artificial intelligence is now enabling this.

Speaker #1: And that's why it's so important.

Speaker #3: Thank you, Thierry. And see you in November. Thank you.

Hubert Maréchal: Thank you, Thierry, and see you in November.

Hubert Marceau: Thank you, Thierry, and see you in November.

Speaker #1: Yes, yes, of course. Hope so. You should come; it's going to be very, all of you. It's going to be very interesting. We'll have retailers.

Thierry Gadou: Yes, of course. Hope so. You should come, all of you. It is going to be very interesting. We will have retailers, we will have experts. We will talk about real deep technology and business, of course, and we will show how we see the future with the team in the next years. But before 18 November, I think we will see each other again in a month, on 20 October for our Q3 sales. We have plenty of meetings planned this second half. We will see you, Olivier, Thierry, and I, we will see you again in a month in October. Wish you a good afternoon or a good night. Thank you.

Speaker #1: We'll have experts. We'll talk about real, deep technology—and business, of course. We'll show how we see the future with the team in the next years.

Speaker #3: So but before the

Speaker #1: On the 18th of November, I think we will see each other again. In a month, on the 20th of October, for our call of three sales.

Speaker #1: And so, we have plenty of meetings planned for the second half. So, I'll see you — we'll see you, Olivier, Thierry, and I will see you again in a month, in October.

Speaker #1: Wish you a good afternoon or a good night. Thank you.

Operator: This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.

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