VusionGroup Stock

Good day, and thank you for standing by. Welcome to the Vusion First Half 2026 Results Conference Call and Webcast. [Operator Instructions] 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.

Thank you, Nadia. Ladies and gentlemen, good afternoon to you all, and welcome to our first half 2026 results presentation. With me today are Thierry Gadou, our Chairman and Chief Executive Officer; as well as Thierry Lemaitre, our Deputy CEO, 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 Thierry 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 on our press release 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.

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

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 first half of the year.

So 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. and 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.

And 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. Finally, with this strong H1, we reiterate our full year '26 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 around 30% and even 37% at constant currency 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. 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.

So I won't comment further on 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. 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. And if you look at our leadership in, it's even stronger in non-ESL revenues as our VAS revenues is worth several times the cumulated 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'd like to illustrate a few things around this idea. As you know, over 50,000 stores are now operated in our cloud platform.

That's already 2/3 of our total stores installed base and over 0.5 billion cloud-managed devices, ESLs, 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 0.5 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 1 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. So we thought it might be interesting to have a 2-minute video here, for those who are...

[Presentation]

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

[Presentation]

The shopper side, 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. 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, '26 is a major milestone as we're about to finalize the fifth generation of our CV AI technology, which we plan to scale very fast next year.

Vusion AI is -- you know that the next big wave in in-store technology and Vusion is positioned to be the winner in this market. So 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.

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 Mediaperformances, 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. So a lot is going on, and we clearly have completed our shift from a pure ESL company into a full platform and a retail digital transformation enabler. And that is very visible in this semester's performance. All this is obviously the engine driving our VAS revenue expansion. You know our target of VAS growth for the year is around 40%.

And 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 4x since '22 in just 4 years, representing at year-end over 20% of total revenues.

And 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 this is a major step also from a financial standpoint.

Thank you, Thierry, and we are really proud today to present our first half earnings. Beyond the revenue growth presented by Thierry, a significant increase in profitability was achieved, and this is visible on all the lines in the P&L, plus 34% adjusted variable cost margin, plus 120 basis points, plus 38% adjusted EBITDA, plus 240 bps, plus 82% adjusted EBIT, plus 330 bps, plus 81% adjusted net income, plus 260 bps.

Profitability increased faster than revenues and the adjusted net income stood at EUR 77 million, which is 9% of sales, up 2 points compared with H1 2025. On the following slide, as always, we are reporting both under IFRS standards and also adjusted terms, and we show here the main adjustments on the key financial indicators.

The 2 adjustments impacting revenues, EBITDA and EBIT are those relating to the warrants fair value amortization impacting negatively the revenues. This IFRS entry should stop when Walmart has generated $3 billion of payments to Vusion, which could take place much before the end of 2028, considering the current purchase 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. Two 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 U.S. entity and VusionGroup, the parent company; and second, the remeasurement of the fair value of the outstanding warrants granted to Walmart.

This first half, the company's share price decrease translated into a lower liability under IFRS and therefore, a profit in the financial income that amounted to EUR 96 million. 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 show 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 plans at EUR 12.3 million and the amortization expense of the assets. 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 minus 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 rate. CapEx, they reached EUR 33.6 million in H1 this year compared with EUR 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 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.

Then as anticipated, the down payment committed 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 tax 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 negative free cash flow of EUR 221 million in H1. And 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 have said previously, subject to market conditions, of course. When reviewing all the items impacting the change in net cash over H1, it is clear that 2 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 minus EUR 241 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.

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. First, an annual adjusted revenue growth 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 on our H2 sales target figures.

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 euro-dollar foreign exchange rate versus 2025, which means the full year adjusted revenue range at constant conditions and euro dollar between EUR 1.75 billion and EUR 1.83 billion.

We expect the ForEx impact between 2025 and '26 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 recharge for tariffs in 2025. This means that the full year adjusted revenue should stand between EUR 1.60 billion and EUR 1.68 billion.

Okay. So that's the way to take into account the changes in foreign exchange rates and the tariff change, in particular, the reimbursement of tariffs that were invoiced last year. And obviously, these 2 changes were not anticipated when we issued our first guidance, right, at the end of February. So 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. And 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 '26.

In other words, we target over EUR 1 billion in order entries in H2 with a particularly strong Q4. So the news 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.

And this improvement in profitability will be accompanied by an increasing operating free cash flow compared to '25. 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 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. 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 will be necessary sometime.

But let's be clear here. There is no reason, no need, no plans for such a thing in the coming years. And I remind those of you who are with us in '22 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 March 3, at the beginning of the year, we launched the previous one, which expired on September 14. We have acquired close to 150,000 shares for EUR 16.7 million. 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.

[Operator Instructions] And now we're going to take our first question. And the question comes from the line of Aurelien Sivignon from ODDO BHF.

I have 3. The first one, you mentioned, I think, during the call that nearly 200,000 Captana cameras are now deployed compared with the full year target of 150,000 if I'm not mistaken.

So does it give you confidence that VAS 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? And 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?

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 2 first ones. No, the difference between the 150,000 and the 200,000 is mostly because, well, among the 150,000, some which were supposed to be newly deployed cameras this year, some are still under deployment. But the 200,000 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? But nevertheless, this is a very, very exciting stream of activity for us. We are investing a lot in this field. We know it's the next big unlock in retail. All retailers need it. 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. 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, growth in our VAS, 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 -- in our CapEx.

No. Absolutely. 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.

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

All right. The last one was related to the new solution that are currently under development, EdgeSense Captana or computer vision or others are linked to upcoming contract announcement? I mean similar to the relationship between EdgeSense and Walmart?

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.

And when we crack it, basically, there are big contracts behind that. 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.

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. So that's very important. So I guess the short answer is yes.

[Operator Instructions] and now we're going to take our next question. And the question comes from the line of Gilles Crespel from Alizes.

Congrats for the good results. I have only one. If we can. You mentioned that -- and you confirm that the Walmart rollout will be completed by end '26. 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 SG&A will evolve over beginning of next year. I do understand it's early to discuss the matter, but still it's going to be substantial. So keen to have your insights or color on this.

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 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. 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. So we are really -- so I mean, there are several drivers of growth to compensate for the end of that part of the road map program, which is the rollout of EdgeSense in the U.S.

So there are new projects around new solutions. There are new geographies, and you know that not very big international. And there are a lot of existing customers who expand the business with us and new logos. We've announced some in 2025. We've announced some in H1. We will announce some new -- we'll announce some new in H2.

So all this is -- there is not something that's going to -- it's just the overall growth of the portfolio of customers, of products, of projects with all customers. 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, which is to be north of EUR 2 billion. I think it was EUR 2.2 billion. 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. So it's not -- it's a lot of things contributing to the continuation. The market, again, is not finished with the Walmart rollout in the U.S. 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 services that we deliver.

So I think it's multiple streams of business that will contribute to compensating the cliff, as you mentioned, and -- and so it's going to be gradually visible over time. But it's sure that the fact of accelerating the program has been pulling in some revenue. And so it's more difficult to achieve. But nevertheless, the market is excellent. Our performance is excellent. So we see a very promising pipeline.

Okay, what I hear is that you would focus on the top line and would not consider any -- well, lower cost reductions could this expectation not materialize over the next quarters. At this stage, we don't see such an upswing -- well, we don't see bookings going up so much that this would be completely smooth and hence, my question, but I understand your point.

No, I understand your point. It's -- 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.

It's -- we've had those moments in our times where there was also ups and downs, and we've seen our ability to adjust. So -- but frankly, in a market that has the potential that we will talk about in November about our Vusion '30 plan it would be a very strange thing to start about restructuring or this is -- I mean, the market has very strong potential in the future.

There is still -- there are strong needs. The stores, I don't know if you all realize how much the stores and the modernization of stores is becoming central -- more and more central in the strategy of retailers all over the world, and we are embodying this strategy like -- so 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 the that's not what the market deserves. There is strong, strong needs in the market. And so yes, 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, in managing our revenue per employee, just to give you a sense, I mean, has been nearly multiplied by 3 over 15 years, right?

So 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 of solutions. So 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.

[Operator Instructions] And we take our next question -- and the question comes from the line of Loco Douza from Berenberg.

Just one question on my side on the guidance on the margin. So H1 adjusted EBITDA margin was up 2.4 points year-on-year, but your full year guidance is more than 100 bps of improvement. So should we expect the margin improvement to slow down in H2? I understand the install media integration plays a part, but is there anything else?

Well, I think that what drives the EBITDA 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. And on the OpEx side, the OpEx to sales ratio used to improve the past year 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 EBITDA margin.

And the question comes from the line of Valentin-Paul Jahan from Stifel.

So I just wanted to say congratulations for the strong margin expansion in H1, because actually you answered my questions. So I would like to Congratulate.

[Operator Instructions] And now we're going to take our next question. And the question comes from the line of Xavier Le Mené from Bank of America Securities.

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 we are all -- I mean, all the market is questioning the fact that after Walmart being done, the biggest retailer in the world, so it will 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? -- 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?

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 Vusion '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 in November.

So of course, we had planned that. We have planned a sort of longer deployment period. In '23, we had announced that it would be around 5 to 7 years because that's the sort of guidance we had. And therefore, we had, I would say, a smoother kind of revenue stream from that rollout. 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, EUR 0.5 billion revenue addition last year. 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. 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.

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 pull in from '28 and '29 to '25 and '26. 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 sort of in a global market, let's say, roughly 7%, right, 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. 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 of growth for all the -- what we call the vast 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 underpenetrated today, and we're investing a lot on this. Today, you cannot -- we really shifted in 4 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. you should not forget we were at EUR 15 million just in 2017, so 9 years ago. This is a big growth, right? And so this is going to continue because right now, we're scratching the surface on computer vision is 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 18 so that you realize the deep technology that we are developing in our 9 research labs. And I think it's very important to understand that because we are cracking very complex problems, which have a lot of scale.

So I mean, again, nothing goes as you plan 5 years ahead, right? So it's -- but it's 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. 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 in average for 15 years, and that's the first growth champion in France. in the SBF [Sava], simply the first. So I mean, 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 '27 when we were at the end of '22. It was EUR 2.2 billion, out of which EUR 650 million in VAS. And 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. They are even beatable, as a matter of fact, because there's 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 installed base, and we're already above that, probably around -- around 80,000 stores. We had a margin of EBITDA target of 22%. 4 years down the road, we're at 19%, right? We had a target also to stay at a net debt -- a reasonable net debt-to-EBITDA ratio of less than 2x net debt.

We're much better than that today. So -- but none of that would have happened if we had not set ourselves growth targets. It means it's risky. 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. 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. So just watch us.

And the next question comes from the line of Laurent Gelebart from BNP Paribas.

Thierry, yes, a few questions. So the first one regards order intake because it's of the market. So are you still confident on the EUR 1 billion order intake to be achieved in H2? Or do you believe there is a risk of potential slippage into 2027? That's one.

The second regards also such order intake. As you are clearly mentioning the rise of new solutions, maybe on this EUR 1 billion order intake you are expecting, can you share with us what could be the part of ESL and the other product lines?

And the third one relates to the new use cases you were referring to for the shoppers being paid for that? I mean when a shopper look for a product in a store for which you are going to be paid by the [indiscernible].

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

Yes. Yes.

Okay. Yes. So regarding the order entry, I don't have a complete crystal ball about every -- the timing of every contract, but what I can judge is the progress of our pipeline. So we have a significant pipeline. And this is clearly -- we have a higher target for this year internally.

And of course, we are confident. But what I want to say is that even if -- you mentioned a possible slippage, yes, maybe you can have a 2 weeks or a 1-month delay in signing something. It will not affect the ability if it's a slippage in Q4 versus January or whatever, it will not affect the possibility of delivering what we have as a target for '27.

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. I mean, clearly, that's 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 become -- reach critical scale.

And therefore, we have more and more in the pipeline, very big numbers in the new solutions.

In this EUR 1 billion, can you quantify I mean 20% 30%, 35%?

Yes. I would say it's above 30%. So -- which is important because we're talking about a company -- a set of solutions, which are I mean, 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's 15% to 20%, right? So saying that it's over 30% of our short-term sort of pipe is already saying a lot about 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, differentiation, cloud revenues because when we say cloud, we mean different products on the cloud platform.

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 these 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's a big differentiation. 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.

And of course, it's driving differentiation, revenue, premiumization of the company and diversification of our revenues flows, which means also less -- 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'm addressing your points, Laurent.

You are. Maybe I have a last one regarding e-Paper,E Ink. As you know, E Ink discovered this kind of product line, but I know you have been working with some of your key clients on such products. So when do you see kind of, let's say, traction coming in for these kind of products?

So yes, you are totally right. There is a big, big excitement around this E Ink, who is, as you know, one of our large shareholders is also a big partner in this. The whole thing is the maturity of full color. So it's -- we're getting there. It's getting better and better.

I mean, at retail grade, so the robustness of retail that is required by retail, et cetera, it's not the fact that it's scientifically ready, but I would say, scalable and robust in retail environment. But we are close to that now. It's 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 is going to be e-paper is going to be central.

It's 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's bringing a lot of value.

It's reducing a lot of the energy cost. And also, it allows you to have much more touch points throughout the store because you can't have electricity everywhere at all and power drops everywhere in the store. 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. and that's in Europe now, but it's going to be also coming to the U.S. So it's also one of the streams of our business development.

And now we're going to take our last question for today. And the question comes from the line of Hubert Mathet from Mathet & Cie.

Thierry, Can you hear me all right?

Yes, absolutely.

I'm still amazed you are struggling with those questions for the 2027 piece. Maybe the point I will make is not relevant that you will tell us very quickly.

How much time did it take SES then Vusion to, let's 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?

I think it depends, well, I would say, probably 4 years...

Okay. So now in the field...

I mean, it depends when you decide to start. I think -- because, as you know, we had already collaboration in international countries outside U.S. with Walmart.

So we knew the company. But I think the discussions about the U.S. and the need in terms of the technology road map and the requirements, et cetera, started around this 2019 year. And then, of course, there were prototypes, there were pilots, there were large-scale pilots.

You don't sign such an incredible first contract because it's the first contract. It's not big contract. It's the first one of, I hope many others, but it's -- yes, it takes time to be -- but those are very long-lasting relationships afterwards. I mean this is what we -- you have to realize. I mean 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 this relationship. Sorry, Hubert.

No, no, no. That's a good point. My other point is the following. Since 2023, when you signed with Walmart, as you experienced in the field an acceleration in terms of decision-making process by your current prospects in the U.S. I'm talking only in the U.S.

Well, I think what is very clear, I don't want to talk necessarily about the 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, yes, accelerating because, I mean, first, people are just watching what's happening in Walmart, and that's by all means very, very impressive.

The other thing is that there is a pressure on a number of KPIs, 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. And where we -- so I guess it's a change in nature also. It's -- 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.

When I show you the -- 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 in many, many different processes. That's because of the holistic nature of the EdgeSense platform. So I think it takes a bit of time. But it's accelerating. Come to your third point, Hubert.

Third point and the last one. Thank you. I mean I'm trying to make the 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.

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's too soon?

Well, it's too soon. I mean it's -- 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 unappropriate to be to tell anything about the decision that entirely resides in our customer -- 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, and it's moving -- it's performing very well. It's a very, very sophisticated and complex product. It's -- as I said, it's the fifth generation, but it's also a leapfrog sophistication in terms of the solution, and we will try to -- but it's going well. But it's -- 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.

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

Thank you, Thierry, and see you in November.

Yes, of course. I 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. We'll have experts. We'll talk about real deep technology and business, of course, and we'll show how we see the future with the team in the next years. So -- but before the 18th of November, I think we will see each other again in a month on the 20th of October for our quarter 3 sales.

And so we have plenty of meetings planned this second half. So I'll see you -- will see you, Olivier, Thierry and I will see you again in a month -- in October. Wish you a good afternoon or a good night. Thank you.

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

Good day, and thank you for standing by. Welcome to the Vusion H1 2026 Revenue Webcast and Conference Call. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Olivier Gernandt, Investor Relations Officer. Please go ahead.

Thank you very much, Sharon. Good afternoon, ladies and gentlemen, and welcome to our first half 2026 sales presentation. With me today are Thierry Gadou, our Chairman and Chief Executive Officer; as well as Thierry Lemaitre, our Deputy CEO, Corporate and Finance. Thierry Gadou will make some comments on the group's business and financial highlights, including the recent acquisition of In-Store Media, which we announced earlier this week. Both Thierry will conclude our presentation with some remarks 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. This evening's release was issued a short while ago and is now available in French and English on Vusion Group'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 also be available on our website after the call.

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

[Foreign Language], Olivier. Good morning, everyone. Thanks for joining our conference call. I'm pleased to present along with Thierry Lemaitre, our commercial performance for the first half of the year.

So in summary, we delivered strong growth, 29% organic growth in H1, reaching EUR 839 million in adjusted revenue. Order intakes were strong at EUR 681 million, returning to growth in Q2. VAS revenues, which are revenues from software services and non-ESL solutions grew by 39% at EUR 125 million, with recurring VAS up 73% at EUR 61 million during H1. We reiterate our full year '26 guidance of continued growth, profitable growth. And we just, as you know, announced a strategic acquisition in Retail Media to broaden our connected store platform.

So let's review the semesters key highlights now. So thanks to a very strong second quarter, actually our best historic quarter, the first half was in line with our guidance, delivering strong organic growth. Both main regions were growing in H1. So in the EMEA region, revenues amounted to EUR 209 million, up 6% compared with 225 million. Business activity remains solid, evenly distributed across regions, particularly France, DACH, U.K., Scandinavia, Spain and Turkey. And while strong order intake growth in the first half bodes well for the remainder of the year.

The first half of the year was marked, as you know, by the signing of a strategic partnership with Carrefour Group, covering the deployment of EdgeSense, VusionCloud, Captana in hypermarkets and supermarkets in France and with a 3-year exclusivity in Europe. Other contracts were announced during the first half in the EMEA region, including JYSK, Decathlon and Gratis in Turkey. The commercial momentum is good and more wins are expected in the second half, both in the grocery sector and other verticals. The group expects revenue growth of 15% to 20% in the EMEA region for the full year.

In the rest of the world, adjusted revenues reached EUR 630 million up 39% year-on-year. In the Americas, Vusion continues to demonstrate strong commercial momentum, driven in particular by the successful deployment of EdgeSense at Walmart in the U.S. As you know, completion of this phase of the partnership is expected by the end of the year. However, other projects involving new solutions, new geographies are underway and will continue driving the activity. In March, Walmart expanded its strategic partnership with Vusion to deploy the EdgeSense platform in Mexico, which is Walmart's first market outside the U.S. across Walmex, express stores and supercenters. This expansion reinforces the global strategic partnership between Walmart and Vusion, which expands now on several geographies, solutions and innovation projects. In addition, the group has significant pipeline of commercial opportunities with major U.S. retailers and anticipate strong adoption momentum in the U.S. over the coming years.

Order entries in the second quarter of '26 increased by 7% compared with Q2 '25 and plus 16% compared to the Q1 of this year. Global order entries reached EUR 681 million in H1. They are down 22%, but in line with the group expectation, the expected decrease being primarily due to an unfavorable comparison base following the significant orders placed by Walmart in '25. With a strong commercial pipeline, we're expecting a positive momentum in H2 and a growth of order intake for the full year of '26.

Coming to VAS activity. Software, services and non-ESL solutions revenues reached EUR 125 million in the first semester, representing a strong growth of 39%. Recurring VAS revenue reached EUR 61 million, up sharply 73%, sorry, compared to the first semester of '25, particularly driven by strong momentum in VusionCloud. A word about VusionCloud. The installed base grew strongly in the first semester reaching over 500 million connected ESL. So that's a very important milestone, reaching 0.5 billion connected device managed in the cloud.

The strong momentum is expected to continue throughout '26. For reference, as of the end of June '25 a year ago, the cloud installed base stood at 220 million connected ESLs. So it's growing very fast. And on an annualized basis, recurring VAS revenue reached EUR 133 million in Q2, up 83% year-on-year.

Another example of VAS momentum was a sharp increase in Captana orders intake, reaching several tens of millions of euros for the first time in H1, and finally, we announced recently, actually just a few days ago, having signed an acquisition which will accelerate one of the main pillars of our VAS strategy and our connected store vision, which is Retail Media. We have, as you know, a strong conviction that the next big digital media will be physical stores. And that's a fantastic opportunity for retailers and brands. and we know our technology can contribute to enable and accelerate this opportunity for our customers.

We have been developing over the past years, our Engage and Vusion ad solution set and developing partnerships in that field, which will continue. The agreement signed with In-Store Media is a major new milestone in our strategy, which positions us as a major player in many countries. Just a quick word about In-Store Media. They are headquartered in Barcelona in Spain. They are well-established in-store retail media company, which brings, one, deep expertise in designing in-store retail media networks; two, proven execution over many years; three, long-standing relationships with 90 retail banners and more than 1,600 brands as well as strong international track record in 9 countries across EMEA, Americas and APAC. In 2025, the company generated revenue of approximately EUR 120 million with a robust profitability.

Together, Vusion and In-Store Media aim to build a new platform for digital in-store retail media, connecting retailers, brands, shoppers, through personalized, measurable and real-time in-store activation. The proposed transaction has been approved by both Board of Directors. Completion remains subject to customary regulatory approvals and other customary closing conditions and the transaction is expected to be financed with debt and closed towards the end of this year.

Now if we come to our 2026 guidance, we confirm it. So a growth in profitability target was announced during the publication of our annual results on February -- in February '26, and we confirm an annual adjusted revenue growth expected between 15% and 20% at constant exchange rates and tariffs.

I will pause here, just to let Thierry Lemaitre comment a paragraph that we have added on the tariff and ForEx, following a number of questions during the quarter. So we wanted to be a bit specific on this. And you've seen already, as Thierry will explain that there is a difference already in H1 between our numbers at constant or growth at constant foreign exchange and tariffs. So Thierry, maybe you want to...

Yes, sure. Thank you, Thierry. I think it is important to remind that our full year sales guidance is at constant exchange rates and tariff conditions. This is important because there is high volatility on the euro-dollar exchange rate. And you know that tariffs have been impacted by several decisions in the United States. Notably, a few months ago, the decision from the Supreme Court to invalidate the tariffs that had previously been imposed on certain products imported into the United States.

At the beginning of the second half of the year, the group started receiving refunds of tariffs. And over the full year, the total amount of refunds could reach approximately $80 million. As previously indicated, the group passed through a significant portion of these tariffs to customers in 2025 and early 2026, where contractual arrangements allowed it. In such cases, the refund of the tariffs by the U.S. administration and the subsequent return to the group customers will be accounted for as credit notes, both in cost of goods sold and in revenues. These 2 items will then be reduced retrospectively in the 2026 financial statements with no impact on gross margin, no impact on EBITDA, no impact on cash position.

The group's 2026 guidance was established at constant exchange rate and tariffs compared with 2025 and the book confirms its guidance. However, it should be noted that reported IFRS and adjusted revenue growth are likely to come in below the 15% to 20% range reflecting the revenue credit notes to be recognized in respect of tariffs that we are primarily charged to customers in 2025.

Thank you, Thierry. I think that was an important aspect. and the situation on tariffs keeps moving permanently because even in the few last days, there was a change again in tariffs in Vietnam. So it's a very moving target. But anyway, that's why it's important to say that our guidance has been neutralized in terms of the exchange rate and tariffs.

Back to the guidance. So top line growth guidance confirmed, as we just said, VAS guidance is expected. So as revenue is expected to increase by around 40%, driven by strong momentum in both recurring and nonrecurring VAS. And we've just talked about a number of the drivers. And the group also targets improved profitability with adjusted EBITDA margin expected to increase by more than 100 basis points during the year. The improvement in profitability will be accompanied by positive operating free cash flow generation compared to '25, while maintaining a strong balance sheet with a positive net cash position excluding the impact of acquisition in this instance, the impact of the In-Store Media acquisition. The currently anticipated by the way, timing for the completion of the In-Store Media, as I said, acquisition is expected to have only a limited -- a very limited impact on the group's revenue because it's going to happen towards the end of the year.

So that's it for today. And if there are questions, we'll be happy to take them.

[Operator Instructions] And our first question today comes from the line of Aurelien Sivignon from ODDO BHF.

First on order entries, if I understood correctly, you now expect full year '26 order intake to be higher than that we apply H2 order growth of at least 20% year-on-year, above EUR 1 billion on H2 stand-alone so which is quite an acceleration versus H1. So is it the right way to think about it? And if so, could you give some color on the underlying pipeline conversion, I mean, should we think about this acceleration to be driven mainly by a few large contract by a broader base increase in customer wins? And then second question was about the acquisition, so In-Store Media, can you elaborate on the strategic rationale behind the acquisition? And if possible, if you could provide some color on the profitability profile and the valuation which you tip paid for it.

Yes. To start with your multiple questions. Yes, you read correctly what we said regarding order entries. So we have a pipeline that has a certain timing, and it's true that we expect H2 to be and we expected already in the beginning of the year, H2 to be stronger than H1. The reason is there are multiple deals in the pipeline in projects, which are coming to a conclusion in the cycle during H2 and particularly Q4, but during H2. And so that's driving it. So there are both large pieces here. There are also multiple expansions of existing customers and small and large sort of deals -- so it's a mix of them. It's both in Europe, where a number of Tier 1s are in this final stage. So there are significant players and also in the U.S. So I mean, it's a strong growth that we anticipate in H2 and overall growth, I would say, for the full year. So that's the right interpretation.

Regarding In-Store Media, the strategic rationale, I described it a little bit in my comments. We've always thought that digitization is going to transform the physical stores into an omnichannel asset, a very efficient asset, an omnichannel asset, a data asset and a media asset. We've always said that. Why is it? Simply because there is enormous traffic in stores. And so retailers have been looking for ways to value to monetize, to realize the value of this traffic, so many people are watching products in stores. And you know very well that it's happening the same way online and online, the fact that there is traffic online is, of course, generating a huge industry in terms of media. But it's not happening in store because in store, everything is physical. And so it's much more difficult to leverage the traffic. So digitization is an opportunity to make the store interactive, to make the store media at the shelf to make -- and to create new sources of revenue. It's an opportunity I said for retailers, obviously, because it's going to be a new source of revenue. It's an opportunity for brands because in the store, the impact the attribution, the measurability, the conversion is way higher than online. And so there is a big opportunity.

Today, the rationale is very simple. We digitize stores, and we create personalized and localized interactions with shoppers. But that business, we were doing -- so we've been developing a whole solution set, the Engage, if you look at our website, we've -- developing digital touch points. We've been selling them to a number of players. We've been developing software solutions, EMS, et cetera. But and developing partnership like Médiaperformances, for instance, to learn and develop some clients. We've been really discovering understanding very deeply that business over the past few years. And we realized we wanted to be really fully in that space. And with In-Store Media, we are now. And so we'll talk a little bit more about the details of the financials later because we'll talk about that at closing.

Right now, we're -- as I said, there are still a number of filings, antitrust findings in the number of countries, et cetera. So the closing will be towards the end of the year and a number of additional information will be given then but the rationale is very strong. It's a very strong milestone. It's a company we've known for some time. It was not a partner, but we've known them because they are very well known in that space. And we -- together, we are assembling the 2 expertise and aspects of the business we want to build. And it's a great news from -- for our retailers and a lot of them have been calling us and saying, well, that was really -- that's an interesting thing to do.

Just on EBITDA...

Thierry, you want to talk about the...

Profitability -- so we don't disclose the profitability of the company. We just said that it is -- it has a strong profitability. So we are really very happy with that. Even a bit more to say that it will not be dilutive for the group. And regarding the price, we will be happy to share with you the final details of the acquisition price at the closing of the transactions. So far, what we can tell you is that the price paid is a fair one, in line with comparable valuation multiples in the ad tech companies for companies showing such a significant revenue growth rate.

And the next question comes from the line of [indiscernible] from Berenberg.

Three questions, if I may. Some investors have been asking me about 2 things recently. So first, could you please quantify the amount of free cash flow that has been generated by the group since the beginning of the Walmart rollout in the U.S.? Second, could you please confirm that you have no intention of paying the rest of the Walmart [ turnarounds ] in cash. And the third one, coming back on the other entries, given the current phase of order intake and what you expect in the H2, how confident are you in reaching the 2027 targets?

Just on the free cash flow, I think that if you just refer to publicly available information, I mean, universal registration document for the year '22, '23, '24, '25. At the end of 2022, the net debt was minus EUR 40.5 million A.t the end of 2025, it was a net cash of EUR 439 million. If you restate the EUR 439 million for the EUR 400 million reversal of Walmart down payment, you end up with a net cash position of EUR 39 million. So between the minus [ EUR 42 million ] plus EUR 39 million you already have million net cash generation, but within this amount, we did some M&A for EUR 105 million. We did some share buyback for EUR 40 million. We collected EUR 73 million from the warrants of Walmart, and we paid EUR 15 million of dividends. So the cash generated over this period, once you strip out this M&A, the share buyback the warrants by Walmart and the dividend is EUR 167 million. So between the end of 2022 and the end of 2025, we generated EUR 167 million, and on top of that, of course, we are going to still generate cash in 2026 on the Walmart contacts and all the other contracts. So yes, we generated a very significant amount of cash over 3 years.

Second topic, which is about the warrants. Of course, we have no intention to buy back the shares on the market to deliver them to Walmart when there's a site they want that would make absolutely no sense. What we are targeting is to be able to deliver existing treasury shares to Walmart instead of generated dilution. So the treasury shares that we are referring to are those that we acquired through current and past share buybacks. We do not intend to buy back further shares in the market to deliver them to Walmart at a high price that would make no sense. So the purpose is to have the flexibility to use part of the treasury shares to give them to Walmart, and the last part is on the other entries...

Can you -- sorry, could you just repeat your question because...

I said given the current pace because I think we have like EUR 681 million in H2. And what you expect having its point and what you expect how confident are you in reaching the 2027 target of EUR 2.2 billion.

Okay. Well, I think when we look at the momentum of the business today, you can ask literally every retailer or look at their earnings call at the moment, you will see the digitization becoming more and more at the top of the agenda, digitization of stores, I mean. And it's more and more at the core of their omnichannel strategy, which means they intend more and more to win on e-commerce, leveraging their stores and the digitization of their stores. So there is a positive momentum, which is simply the demand, the increasing demand because it's really a moment for the type of things we do. We have a pipeline, as I already mentioned, with strong momentum, not only in H2 but also in H1 '27. And so we consider this ambition that we set ourselves 3.5 years ago in -- at the end of '22 when we announced the Vusion '27 plan. This ambition, we consider it absolutely achievable, and we're still committed to achieving this ambition.

We will make -- yes, and just as a complementary, we will obviously make an update on our near- and long-term targets during our Capital Market Day, which is, as you may know, at least it's written in the press release today on November 18. And obviously, it will be the occasion to talk about the near term, which '27 will be at that moment and the longer-term ambition again. So we'll talk about it more. But right now, it's our ambition.

The next question comes from the line of Hugo Paternoster from Kepler Cheuvreux.

I will have a few questions. And the first one is a follow-up on Aurelien's question. And you mentioned during this call, have a nice pipeline in the U.S. to be materialized in the coming years. So the first question is should we expect something significant in the U.S. at short term? Or will it be mainly a call for 2027? It was the follow-up. Another question I have is regarding the recurring VAS momentum, which has been pretty nice in Q2. If you could give us a little bit of color on what has driven this improvement in growth for the recurring VAS? And another question, which is on the EMEA sales. We are still waiting or at least I'm still waiting the takeoff there? And the last quarter, you were flagged that you should expect an acceleration. It seems it's not still there. what do you expect there for the H2 in terms of EMEA, what's currently in the pipe, if you could give us more color on that, that would be helpful.

Yes, absolutely. So our -- I mentioned that we have this objectives to be growing in terms of order entries for the full year. And I think I did answer Aurelien's question and confirm that it meant that we -- this pipeline is going to convert at least this is really what we are planning in H2, and that will be a substantial growth. And I also added, I think that in H2 -- in H1 '27, it will continue. So what matters really for '27 is H1 because given the cycle of conversion.

Now that pipeline, which is very significant, is roughly split very relatively balanced between Europe and Americas. So it means that in both regions, we have significant targets in the site, okay? So yes, there will be significant deals in both areas, which -- so I'll come back to EMEA because that was your complementary question. But yes, in the U.S., there is at least half, if not more, of our pipeline right now. Yes. So clearly, recurring VAS driver is -- well, you see -- I mentioned one of the main driver is Vusion Cloud. And in Vusion Cloud, you have a number of SaaS products, but basically, they all come under the umbrella of the product umbrella of Vusion Cloud. And the driver is simple. It is the main driver of that, and you can see the underlying driver because it is simply the incredible growth of our connected -- the number of our connected devices, our devices that are managed in the cloud.

If you look at the ambition we set ourselves again 3.5 years ago, we really deliver on this ambition. We are not only acquiring all our new customers on the cloud, but also migrating a lot of the legacy customers, the existing customer base who were initially on-premise in the cloud. And that translates into a growth where you see that there has been more than 2 times today, I think past 500 million or 520 million devices in the cloud versus last year at the end of June in '25. So it's a tremendous growth, and that is the biggest leverage. Now I mentioned a few other levers in other parts. But if you're looking at the recurring as, this is the main driver.

And finally, your question so we're back on top line topics in EMEA. I understand your point. I would say, I share it because the reality is we have significant growth in other entries in Europe. And it's -- the momentum is really good. We just had a few delays in the ramp-up of projects that are signed but which in terms of implementation, supply chains, there have been a bit of delays. And the second thing is there are a number of projects which were converted from Vusion [ tax ], so classical, I would say, ESL to EdgeSense -- and that, of course, delays a little bit the projects because they start on the new technology, they're changing infrastructure from HF to Bluetooth. So -- but a lot of people are attracted now to EdgeSense, and they say, well, should I start now the rollout as it was planned? Or should I go on this technology that seems to deliver great results that seem to have convinced Carrefour, which is very, very experienced user of [ EdgeSense ] because I think they have been the first -- the pioneers in Europe. So it's -- those conversions make it.

However, looking ahead in H2, we see that acceleration of -- and that momentum coming. So this is why we mentioned our target is still 20% growth in EMEA this year. We said the range is maybe 15% to 20%, but our target is still 20%. And it's no change. The momentum is good. People need to digitize their stores, and they increasingly realize it.

Okay. And perhaps a last one on the tariffs. Would you have already in mind what could be the impact on your top line of the tariff? I mean, the refund that you have to give to your clients?

Yes. That's what we previously mentioned. We received approximately we -- we expect to receive approximately $80 million on the full year be refunded to the customers. So that would come in deduction of the revenues.

Your next question comes from the line of Laurent Gelebart from BNP Pariba.

Just one question regarding In-Store Media. Could you share with us or give us a more granularity on the revenue split of In-Store Media, when I mentioned revenue granularity is, for instance, top 10 clients [ is 10% of [indiscernible] or ] stuff like that to see how the turnover is being split between the customer base?

Yes. So I would give you just at least not the numbers, but at least the key -- I think the -- what matters in terms of the color -- it's a quite balanced portfolio. The -- as we said, they have several tens of customers who are very often long-lasting customers repeat multiyear contracts. And there is a momentum in gaining new customers every year. And the customer base is very balanced. So there are multiple large customers, no customer is very strong. Like there is no customer representing 30% of the revenue. It's not like that. It's very balanced, very -- first, geography wise, because they have 9 countries and they are a very good position in each of the countries and it's a balanced portfolio.

I say that, I think it's a very, very good question because we looked at other opportunities where precisely the portfolio was a bit too focused on 2, 3 clients. And so that was -- we considered it as a risk. So it's a balanced geographically. Balanced also in terms of top customers. And we'll -- again, we'll give more granularity as we close the transaction.

And maybe another one, Thierry, are you going to articulate this acquisition with your deal with Médiaperformances?

Well, so Médiaperformances is an important partner, is a strategic partner. There are very -- so it will continue definitely. There are lots of complementarities between the 2, geography-wise and also product wise. So we still are going to push these 2 assets because there are complementarities and so we will continue with Médiaperformances.

[Operator Instructions] And our next question comes from the line of Valentin-Paul Jahan from Stifel.

Do you hear me well?

Yes.

Yes.

Perfect. So just a follow-up on In-Store Media. You mentioned significant growth rate. Could you please give us more color on the revenue growth pace of ISM and also more color on commercial synergy on both sides on the Vusion Retail Media offering and on the In-Store Media offering, I mean, do you think that you can significant allocate more of marketing budgets managed by ISM toward marketing campaign and leveraging your hardware and your platform and how fast you think it can go from your perspective? And how your portfolio of retail customers can be leveraged to accelerate ISM growth?

Yes. So we have a -- so first, we've already experimented those synergies because as Laurent Gelebart was mentioning earlier, we have already established a number of partnerships -- the -- and we have won a number of projects at our clients with them internationally and so -- and there is a logic, absolutely, logic of cross-sell between the 2. The reality is today, the retail media, let's say, exists in store through a number of type of inventories, media inventories in the store. But they are very analog and a lot paper-based. A little bit of digital screens. And as a matter of fact, In-Store Media is quite advanced in the digitalization. But the reality is the more we digitize the more you create revenues for the stores because brands are very eager to create in-store activation, real-time, personalized and localized.

It's exactly the same as on the mobile. It's a point of purchase. If you touch the right person at the right moment in front of the right shelf you increase conversion, and it is a very efficient way of selling. The thing is it's more difficult in a physical store, as it is on mobile. So -- but 85% of retail sales are in retail stores. So it is very important or it depends on the -- actually on the -- it depends on the type of categories, of products, of course. But let's say, at least in grocery, it is more around 85% million. And so there is a strong connection between digitizing your shelf edge and opening this opportunity to create real-time activations for shoppers. And so there is a know-how that we didn't have. This is why we were building partnership, but there is also a technology that we have. So there is both synergy on the technology. And there is also a synergy, of course, on the know-how to be able to deliver not only, let's say, a capability but simply to deliver revenue to our retailers.

So we see multiple levels of synergies, enabling ISM and our other partners to expand by being able to offer more digital inventories in stores, so more touch points and more very targeted and personalized opportunities of contacts with shoppers. And at the same time, we are stepping into a fast-growing segment of the market because I can tell you retail media and particularly [ in-store retail media ] will be the fastest growing segment in that whole media space in a few years. There are many studies who say that. And when you look at the importance that is given to that subject for -- by our clients and by retailers, you understand why it's very important to be there. It's not a new topic. We've been discussing it, but we needed to make a significant step in. We had already experimented it with our strategic partner media performance, but we're going further. We're not going to stop there.

And the growth pace...

Yes, the growth -- sorry, the growth of the...

The revenue growth...

Of...

In-Store Media, of ISM.

Yes, it's double-digit growth, but it's a company that has a long sort of long-lasting growth. It was -- so it's -- yes, it's double-digit growth. We'll give again more but it's a growing company, which has won a number of new logos this year in very, very important geographies for us including in Mexico, for instance. They're obviously strong in some European countries, too, but it's -- so it's a growing company.

Okay. And lastly, if I may, on the manufacturing part...

Yes, sorry, okay. No, I just said, and we are going to accelerate that growth because the reality is the growth in this business is your ability to deliver more solutions for the brands to communicate in stores. Bear in mind, brands want to communicate at the point of purchase. That's the holy grail of media is communicated at the point of purchase at the moment of truth. Today, the biggest point of purchase from a media standpoint is the online, is the mobile. But tomorrow, it will be more and more in stores and in eyes because there are more eyes on shelves than online. So it's simply the traffic that is driving this.

So if you're a company like In-Store Media and you have the ability to deliver more solutions for digital installed retail media, you have you can accelerate growth because simply you can accelerate the spend of the brands, which are -- who are very happy to shift dollars from very expensive, I would say, online media large players, I would not name them. And with very high to add the shelf advertising.

Sorry. So you had another question about manufacturing.

Yes. If you could provide us with some , I would say, indications regarding your production capacity of your EMS partner dedicating to camera. I assume that the current capacity of, I would say, kind of low and that ramp-up is more or less planned already with your partners in an event of a surge in demand, if it happened, as you are in pilot with a large retailer, I'm very curious on how fast you can scale the delivery of camera over the next month. Any upfront payment agreement will be implemented, such as with your ESL business in the past?

So yes, we are implementing a capacity and a ramp-up of capacity in cameras and in, let's say, generally speaking, solutions that are for computer vision. And because we embed, I would say, cameras also in devices like EdgeSense [ rail ], et cetera. So we are clearly working on the ramp-up of this capacity, expecting, as was already mentioned earlier, a surge in the demand and in the actual deliveries next year in terms of cameras or computer vision devices, it's let's say it this way, because, as you know, part of our strategy is to embed Vusion AI inside existing devices that we have. But yes, the capacity is -- we are working very hard at the moment on this topic. It will be with the same that we have because we have the largest EMS. So we have established relationships, very strategic relationship with the 3 of them. So it will be with the same EMS, and we are already working on the we are already producing -- we're already in the ramp up to a certain extent because some of the pilots or some of the very expanded pilots or all the rollouts because don't forget we have not only pilots. We sold the rollout to Carrefour of Captana. So we need to deliver it in the coming quarters. And so yes, it's an industrial ramp-up that we are working on. And fortunately, we are being able to leverage a number of the existing infrastructure. And so it's working well.

Okay. And lastly, assuming no capacity constraint, could you please remind us the average lead time between customer order placement and product delivery for cameras?

Well, for this kind of solutions, yes, there is delays. So capacity doesn't mean instant capacity. Those are very complex products, and we are also in an intense innovation phase where what we are going to sort of roll out are very, I would say, very, very innovative, leading-edge, cutting-edge technology that doesn't exist. And so it's -- there is a lead time. And for sure, there is a lead time of probably 6 to 10 months before you -- I'm talking about significant capacity. I'm not talking about -- we are already, if you want, I think I mentioned the number, which was last quarter that this year we would install probably north of [ 150,000 ] devices. So it is not that kind of capacity I'm talking about, right? But if you really want to make a very fast and significant rollout, there is always, like, by the way, like for EdgeSense and or like for anything, you need 6 to 10 months capacity. But the good news is that right now, there is no such thing as setting up a whole factory or this kind of thing. So it's really about adapting equipment and ramping up.

So I don't -- I give you a sense of the lead times, yes. So basically, if we sign a big contract or a big rollout in this scale, you -- at the end of the year, it means it will impact more in the second half of 2017, for instance. I guess, your -- that's the type of questions you had

Yes. Understood. Okay. Just a very small last one, maybe. You mentioned in your press release continued positive operating free cash flow, [indiscernible] CapEx? And previously, you mentioned increase operating free cash flow [indiscernible] CapEx compared to '25, is it...

There is no change. We confirm that EBITDA could increase, yes.

Thank you. That was our final question for today. I will now hand the call over to Thierry Gadou for closing remarks.

Well, thank you very much for the conversation, the questions. And next -- so our full financial H1 results will be disclosed, presented and discussed on September 21. And in the meantime, I wish you all a great summer. Thank you very much.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

Ladies and gentlemen, dear Vusion shareholders, good morning. Welcome to our Annual General Meeting. To report to you today are Thierry Lemaitre, Deputy CEO; and Morgane Le Puil, Group General Counsel. Also present are our statutory auditors from KPMG and Deloitte as well as our Judicial Officer, Madam [ Luciance ] Venetia and partners who will oversee the proper conduct of this meeting and the regularity of the voting process. I'd also like to acknowledge the Board members present today, including our 3 committee chairs, Mr. Peter Brabeck-Letmathe, Chair of the Strategy and CSR committee who also serves as Vice Chairman; and Lead Independent Director, Mr. Emmanuel Blot, Chair of the Nomination Compensation Committee; and Madam Helene Ploix, Chair of the Audit Committee.

Before proceeding further, I should like to extend my warmest thanks to Madam Helene Ploix, whose term as Director will expire at the close of this Annual General Meeting. On behalf of the Board of Directors of executive management and all Vusion employees, I'd like to thank you, dear Helene, for your commitment, dedication and invaluable contribution to the work of the Board and the committees on which you have served. I'd particularly like to recognize the expertise, rigor and high standards with which you chair the Audit Committee. We wish you every success in your future endeavors, which I know will be very active and exciting. Thank you.

I'd now like to explain the practical arrangements for today. Upon entry in the room, you were given voting devices to allow to cast your votes on the resolution at the end of the meeting, further instructions to use these devices will be provided before voting session accordant with applicable regulations and inform you this meeting is being webcast live and a recording will be available on our website. I declare the meeting open.

So we will now proceed with constituting the bureau in accordance with regulations. I shall chair the meeting and I will now call up as scrutineers the 2 shareholders present, either in their own name or with proxies, the largest number of voting rights who have agreed to serve as scrutineers. Mr. Antoine Belle representing Bpifrance; here present, Mr. [ Sebastian Rebel ], representing [indiscernible]. My thanks to both of you. I propose the bureau appoints Madame Morgane Le Puil to act as meeting secretary and the Bureau is therefore duly constituted. This general meeting has been convened in accordance with all the applicable legal requirements.

Notice of Meeting booklet was sent to all registered shareholders. A number of documents are also available to shareholders, the principal ones being listed on the screen. I also inform you that the company has not received any requests from shareholders for the inclusion of additional items or draft resolutions on the agenda.

So the quorum, I remind you that this general meeting is being held on first call. The quorum requires 20% for resolutions within the ordinary meeting, 25% for resolutions within the extraordinary general meeting according to the attendant sheet at the opening of our meeting, shareholders present, represented or having voted by correspondents hold 12,514,039 votes, that's 75.24% of the voting shares. The legal quorum required is therefore being reached, both for the ordinary and extraordinary parts of the meeting. This will be confirmed prior to the vote on the resolutions when the final quorum is announced by Morgane Le Puil. Accordingly, I declare the meeting to being duly convened and be validly deliberate. I suggest that we do not read through the agenda since you've had the opportunity to review it in the Notice of Meeting and it's currently displayed on screen. Morgane Le Puil will present the resolution in greater detail during the call of this meeting.

And we will now present the group's business activity and results for 2025. To do so, I'll be joined by our 2 deputy CEOs, Philippe Bottine, who is Deputy CEO in charge of the Americas region, the group's products and solutions and industrial operations; and Thierry Lemaitre, Deputy CEO, whom I introduced earlier in charge of finance and corporate functions as well as several other members of our Executive Committee, Marianne Noel, Pascale Dubreuil, Pierre Demoures, Sebastien Fourcy, Jerome Hamrit.

So let me begin with a brief reminder of who we are as a group. Our mission, as you know, is the digitization of physical commerce. We're the global leader in the field, particularly #1 player in both Europe and United States, views and represents EUR 1.5 billion revenue, 1,200 employees, including a 1/3 dedicating to R&D working across 9 large worldwide number of major retail chains including many in the world's top 100 retails across retail sectors, grocery, DIY, beauty, furniture, sporting goods, pharmacy, et cetera, and installed base of EUR 650 million smart labels, approximately half of the global installed base. We have a broad product range, smart labels, smart rails to AI-powered vision cameras, data analytics, retail media solutions. These products support our mission of digitizing stores and transforming them into more efficient, automated, digital, data-driven, connected and omnichannel environments. These hardware and software product lines support 4 major families of solutions, operational efficiency, local e-commerce, data analytics, and retail, media and consumer services.

More than ever, we're convinced that stores will be at the heart of tomorrow's omnichannel commerce. Physical stores once again becoming a strategic priority. And our vision is that of a connected real-time digital store fully equipped to leverage the explosive growth of artificial intelligence, which is set to transform every industry, as you know, in the retail sector, in particular.

Let's now turn to what was a quite extraordinary year in 2025. We added EUR 0.5 billion in revenue in a single year, representing 50% growth, such an acceleration in growth, never appeared even in our most ambitious business plans. And this occurred despite the year marked by tariffs adversely affected the price competitiveness of products sold in the United States. 2025 was first and foremost a year of tremendous acceleration of EdgeSense's deployment at Walmart. Major innovation in the digitalization of grocery store shelves, Philippe will say more about this in a moment. For Vusion, this innovation marks after a number of decades that transition from the smart shelf -- smart label to the smart shelf, the acceleration of the road now to initially expected to take 5 to 7 years reflects the strength of the solution and Walmart's intensive user technology contributed the outstanding results.

It has reported in recent months that you will have noticed, 2025 a year to pave the future growth, EUR 1.7 billion in order intake, a historic record for the group. As always, innovation remains central, particularly the launch and acceleration of numerous AI-related initiatives as AI is becoming a core component of everything we do. AI embedded in our solutions, notably at the heart of Captana and many other solutions and AI in our organization with the program of AI for Vusion that we'll discuss today with about a dozen programs aimed at integrating AI in all our processes and internal functions. 2025 last year, a year of profitable growth operating income doubling, operating cash flow almost doubling and a strong increase in net income.

I should now like to ask Pierre Demoures to present the group's main commercial achievements before a quick focus with Philippe Bottine and Sebastien Fourcy.

Good morning, everyone. I would now like to present Vusion's overall growth momentum. As you will see, our growth is not just strong. It's also increasingly international, driven by broad customer base, the rapid expansion of value-added services and the accelerating adoption of our cloud platform. Let's take a step back.

We can first appreciate the exceptional trajectory of our revenue growth over time. Over the past 10 years, revenue has increased from EUR 111 million in 2015 to EUR 1.527 billion in 2025. And this represents a compound annual growth rate of 30% over the decade. This shows Vusion's ability to transform what was once a niche market into a large-scale global market. And this performance also demonstrates that our growth is not a one-off phenomenon. It's been built progressively over time with a marked acceleration since 2021 and this growth has also come with a clear strengthening of our global leadership position.

As shown in the chart, Vusion stands apart from the competition. The gap with competitors has continued to widen over time, particularly since 2023. And this leadership position is supported by a substantial and highly international customer base. Today, Vusion equips 75,000 stores across 62 countries with 650 million smart labels deployed, including 350 million connected to the cloud. We also maintain an NPS of 68, well above the average levels typically seen in the B2B high-tech industry. We're really proud of that. The diversity of our customer base is another major strength. Our customers include leading retailers across the Americas, the Asia Pacific region and the EMEA region, such as Walmart, Carrefour, E. Leclerc, Lidl, Sephora, Coop, MediaMarkt, [indiscernible] and many others.

In 2025, growth remained extremely robust. Revenue increased by 51%, and with a clear acceleration between H1 and H2, EUR 649 million in the first half followed by EUR 877 million in the second half. This momentum was particularly driven by the Americas region, which delivered significant acceleration. Therefore, growth is being fueled both by deeper penetration of existing markets and by geographic expansion with particularly strong contributions coming from outside the EMEA region. This momentum is also reflected in our order intake, which remained extremely high. In 2025, order intake reached EUR 1.7 billion, representing 5% growth compared with 2024. It's particularly encouraging to note the return of strong order intake growth in Europe.

Another very important development concerns are VAS or value-added services. So these revenues doubled in 2025, reaching EUR 211 million representing 14% of total revenue. And this growth was driven both by nonrecurring revenues and recurring revenues, which reached EUR 83 million, up 45% and nonrecurring revenues reached EUR 128 million, up 66%. This is a highly positive signal. Our growth is not just based on equipment volumes. It is increasingly supported by service revenues that are more recurring in nature and have the potential to generate greater value over time.

Finally, the adoption of our cloud platform further confirms the transformation of our business model. In 2025, 375 million IoT devices were connected to the Vusion platform compared with 152 million in 2024 representing growth of 147%. This acceleration is being driven by 2 key factors. First, new large-scale deployments; and second, the migration of our existing installed base to the cloud. And this is a key development because the cloud strengthens long-term customer relationships over time, facilitates the deployment of new services and supports the continued expansion of recurring revenues.

To summarize, Vusion combines 3 major strengths in its market, strong revenue growth, reinforced global leadership and a gradual transition towards a more recurring business model driven by services and the cloud.

Now I'm going to hand over to Sebastien Fourcy, who will focus on EMEA.

Ladies and gentlemen, dear shareholders, for several years, one idea dominated the retail industry. The future belonged entirely to digital channels of physical stores would gradually lose relevance. That idea turned out to be wrong. Today, the world's leading retailers are investing heavily in their stores once again. Why? Because they've realized that the stores become the point of convergence between data, AI, customer experience, productivity and omnichannel commerce. In other words, the store is no longer simply a place where transactions occur. It's become a strategic asset. This conviction is not theoretical. It's already reflected the decision taken by retail executives. According to Bain, 75% of retail executives expect their stores to undergo major transformation over the next 2 years. It's a remarkable figure. It means that storm modernization is no longer a tech issue. It's become a strategic priority. In other words, the market is moving precisely towards the challenges Vusion has been addressing for many years. The question is not whether this transformation will happen is who will help retailers navigate are going to illustrate this through the EMEA results for 2025.

Let me begin with what we have built. Today, we operate through 12 offices and subsidiaries across the EMEA region. We recently strengthened our presence in the U.K. as well in the Middle East and more recently, in Turkey. More than 40,000 stores are now equipped with our solutions. Our [ key asset ] cloud adoption has increased fivefold over the past 4 years. But beyond these numbers, what truly matters is the nature of the asset we built. A strong local presence, a unique store based and close day-by-day relations with Europe's leading retailers. In summary, we've built a robust regional platform capable of supporting the next growth phase.

But a platform only creates value if it continues to expand in 2025. We continue to grow with new customers, whilst significantly expanding our presence across new retail segments, convenience, beauty, pharmacy, DIY, home improvement and specialized retail, each deployment confirms a single reality. The challenges that we solve extend beyond our historical market, product available, productivity, customer experience, store monetization. These challenges are universal. Our growth is no longer driven by a single sector, but by the transformation of physical commerce as a whole and that significantly expands our addressable market.

Strongest proof doesn't come from us, but from our customers, specifically, one of the world's leading retailers, Carrefour. Carrefour not just simply another country, it's probably the strongest validation of our strategic vision after Walmart in the U.S., another global retailer has chosen Vusion to support the transformation of its store network. This decision is not based on a single technology, based on our ability to address productivity, AI, operational execution and customer experience simultaneously. It's exactly the vision we've been pursuing for many years. What makes this partnership exceptional is not just its scale, but its depth also over 13,000 hypermarkets and supermarkets will be deployed across France. Multiple solutions rolled out simultaneously. Exclusive partnership across Europe participation and strategic innovation initiatives through the creation of joint innovation center elements reflect a fundamental shift. Vusion is no longer viewed as a tech provider, but as a strategic transformation partner, and that's precisely the positioning we set out to build.

[Presentation]

So this testimonial fully illustrates what we're seeing across Europe. Retailers no longer simply looking for product suppliers. They're looking for partners capable of supporting the transformation journey. That's precisely where the next phase of our development begins. For more than 20 years, we built a strong regional presence. We've earned the trust of long-term customer partners. We expanded our addressable market, demonstrated the relevance of our model with industries, leading retailers. Today, we're increasing the value created in every connected store. Vusion Cloud Captana, our analytics, loyalty and Retail Media Solutions and every new service increases value delivered to our customers. New service improves quality of our revenue mix, every new service strengthens our differentiation. Our ambition is no longer simply to equip more stores, but to continuously increase the value created within every connected conclusion.

In 2025, we demonstrated in Europe Vusion now benefits from 3 complementary growth engines. The expansion of our customer base, the expansion of our addressable market and the increase in value created within every connected store. The market, the industry's leaders, players have validated this vision. Our results demonstrate our ability to execute it. We consider value creation potentially EMEA is ahead of us.

Thank you. Over to Philippe Bottine, Deputy CEO for the Americas.

Good morning, everyone. I'm delighted to be with you. I came all this way from the U.S. to attend this AGM here in Paris. Today, I have the pleasure of reviewing 2 different aspects. First, to the Americas. And then I will share with you some of the market trends that have fueled our innovation road map. Let me start with the Americas.

We have 180 employees. We account for about 95% of Vusion's head count across the world. And our head count keeps growing. Americas has 5 different offices. We have our HQ in Dallas, Texas. We just opened up an Innovation Center where we welcome our key customers and partners in the U.S. In 2025, we also saw a strong increase in our installed base. You may remember last year's AGM, we announced 14,000 stores. This year, 21,000 stores, which means a 50% growth on last year. And we're seeing this growth not just in the U.S. where we have a strong installed base, but in other countries in the Americas, both North America, Central America and Latin America.

Another key aspect, if we look at our growth prospects, in our Vusion 2027 plan, the revenue forecast came to EUR 1 billion, but we are fully confident in our ability to deliver on that goal. We can't talk about 2025 unless we talk about key customers such as Walmart. Large-scale deployment has begun. Beginning 2025 at the end of the year, we had equipped half installed base. And despite pressures from the Trump administration in terms of tariffs, Walmart did ask us to accelerate our deployment so that we could complete it in 2026. This is a strong show of the value added we provide, the return on investment that our solution represents and also the strength of our partnerships. This deployment is extremely ambitious, has been from the beginning in terms of speed of execution and also scale of deployment. Customer satisfaction is as high as we expected.

Clearly, our customer wants us to accelerate our deployment so we can be done by the end of 2026. This deployment is based on the EdgeSense platform, which we jointly developed in partnership with Walmart. EdgeSense is the cornerstone of Vusion's current transformation in terms of products and solutions. We are switching from smart labels to smart shelves. So what does that mean? Smart shelves. Well, we're integrating into our shelves a number of technologies. Of course, we have the price tag, but we also use computer vision features, artificial intelligence and Bluetooth technology as well. And this means we get to transform Vusion's platform into a unique solution. And we get to address multiple problems. I talked about price tags, but also order picking, management of product availability, in-store guidance, et cetera. So Vusion's offering means multiple solutions, and this helps leverage ROI for our customers.

Now switching from technology to economic performance, the best way to talk about the economic impact of Vusion Solutions is to look at the economic performance of our customers. And let's focus specifically on omnichannel performance for Walmart. These figures have been made public. They're available. Walmart has announced 99% compliance for planograms. They've announced a 5% productivity improvement in terms of employee productivity. The number of orders fulfilled directly from stores has increased by 50%. E-commerce's growth by 5% -- 25%, which is huge for Walmart. And at the moment, they preparing 35% of the orders in less than 3 hours and delivery comes straight from the stores. This multifaceted economic performance, obviously, we're not just the contributor, but we are a strong contributor to this amazing economic performance. And we're very proud of that. This partnership with Walmart is excellent.

Now if we look at our other business with other customers outside Walmart, there's another important aspect in the Americas that we need to address. A couple of years ago, we made an announcement that 100% of our customers there had switched to cloud technology. This is an important milestone in terms of adopting new solutions. If we look at all of the new pilot projects with U.S. retailers, they're based on EdgeSense technology, on Bluetooth technology and systematically, they come with mass retail solutions. And this shows the strength of our model and significant customer buy-in when it comes to all of these solutions that we develop and provide.

I'd like to take this opportunity to show you a quick video from a well-known customer. We continue to innovate, working alongside us, this started with smart labels, and then they continue to develop their installed base with computer vision and AI solutions. So roll video.

[Presentation]

An amazing demonstration of innovation, operational excellence and customer satisfaction. We love to work with such customers, customers who deeply overhaul their business model using technology. And this is the perfect segue to discuss major market trends today, which generate growth for Vusion. The first main growth driver is e-commerce solutions. E-commerce currently accounts for 21% of global trade and rising. Stores are now back at the core of retail strategies. It's important to have efficient solutions. Second major trend, Agentic AI. We know that today already 65% of consumers use AI-assisted experiences while shopping. Those are astronomical figures and AI needs reliable data and real-time data in order to operate properly. And that's exactly what Vusion provides. It delivers highly accurate real-time operational data to fuel AI systems. Third major trend, retail media. This is a huge market, [ EUR 165 billion ] retail media market. And yet retailers currently capture only a fraction of this value despite the enormous traffic that still flows through physical stores. Productivity. Let's not forget about that. We always need to improve productivity, in-store availability, fresh goods, I could talk about this until the cows come home. But the fresh market example perfectly illustrates these challenges. Availability of products is key -- fresh products as well are key, and that's one of our top market segments.

Thank you so much for watching. Now I have the pleasure of handing over to Jerome Hamrit, who will introduce our exciting Vusion Intelligence Program.

Good morning, everyone. Delighted to have the opportunity to share a few examples of the recent advances made by Vusion intelligence. Let's start by reminding our core mission, helping retailers move from the connected store to the intelligent smart store, 4 types of users. The first is managing not just the stock outs, but here are the 200 out-of-stock products generating highest revenue losses and treating them. Activation. I'm going to engage with a customer at the exact moment they are making a purchasing decision. This could involve presenting relevant promotions when they approach a particular aisle. Thirdly, optimization. identify that based on current sales pattern specific stores, store level, shelf facings to be increased. Monetization, creating new revenue streams for retailers through collaborative platforms with real-time visibility and to store operations.

There's one critical prerequisite. We need to deeply understand our customers' businesses and operational challenges so that you can embrace our tools and truly make their stores more intelligent. I'm going to use this to -- with 3 examples how we can become a management tool for store teams and in this ecosystem and this value change to connect these people. We need to understand their business. And the third simpler point is we mustn't push rigid analysis but adapt to users rather than forcing users to adopt analytics on the store management. I'll show you a short video how Captana is used in management routines at Monoprix.

[Presentation]

Well, I think that's a very good testimonial and we've heard the insights from store associates, department management, store directors, operations leader in their daily environment with highly visual 3D tools with dashboards that have become in their routines, a briefing at 8 or 11 p.m., we'll fully integrated the management process. That's how we can leverage our tools.

The second example, no visual here's, it's retail media, how the operational tool. Of course, we have screens in the stores, but we have to connect a full ecosystem. We have to connect marketing, IT, operations, but design, creative agencies, installation partners, support teams and understand all their operational needs. And this year, after an in-depth for understanding the business needs and software development, we've put out retail to connect real-time all these players to make the store, the new digital media serving brand communication. It's crucially important. As you know, it was -- Sebastian mentioned this, it was core to the first commercial success in 2025, we signed contracts, several countries in Europe for this.

The final point is to adapt analysis to the user. I take the merchandising execution. We talk merchandising. There are several different and retailers do customized plans per store, and they want to check that every product is located exactly where it should be with a number of facings. Others do broaden macro merchandising. They want to check things that are far more diverse. So since we've understood their business, we put tools that allows them to check key criteria. Here, you can see one that can pick a SKU on the product, the brand, category segment, product and you can say -- well, you can come and check if the product present number, maximum phasing, share of shelf, correct, vertical or horizontal place or whether specific products or brands are positioned next to one another. Brand blocks and merchandising. Well, once these rules are defined, our customers can verify every other day whether those criteria are met. So very flexibly, they can come and consume the data that our AI IoT makes available on the basis of their specific needs. I'm going to stop there with those few illustrations. We wanted to show you how we clearly understand our customers' businesses to make the store smart. Over to Pascale Dubreuil, Chief Sustainability Officer.

Hello, everyone. Allow me to present the progress made by the group in the area of sustainability in a context marked by increasing expectations from both investors and customers. Beyond compliance with regulatory requirements, our sustainability approach is an amazing tool for the group. It helps us identify medium- and long-term financial risks that may rise once the material issues have been identified. So what about those material risks? They are identified through the double materiality assessment required under the CSRD as you can see on the screen.

So what is at stake? We're trying to analyze 14 different categories, material issues. We identify impacts on society, culture, et cetera. We identify impacts, risks and opportunities. Now risks include financial risks, obviously. So once the risks have been identified, in 2025, we tried to focus on a number of those risks. Those are key major risks.

So let's read this slide from left to right. I'm not going to spend too much time on governance. This is something that received a strong focus, and you will find this in the CSRD report in the annual report. And also in a few minutes, we'll talk about service security. Likewise, I won't spend too much time on social and societal issues. We have a talk on HR about that.

However, I would like to focus on the middle part of this screen. Amazing work has been done by our industrial purchasing department, and they have much better insights into our supply chain. When it comes to societal issues, yes, human rights, safety at work, fair pay, et cetera, traceability, et cetera, but also better insights into the maturity level of our suppliers. Are they using renewables in their production methods? Are they able to give us the carbon footprint of their components, et cetera. So this is key work which will feed into our decarbonization strategy. This work led to an excellent score from the CDP as part of their supplier engagement assessment. So this is how we were rewarded.

Lastly, on the left-hand side, a key aspect in order to understand the medium and long-term risk for our group, what we call the transition plan, that's something that we need to structure. It is comprised of 2 different segments. First, an adaptation and a transition plan. Adaptation, what does that mean? We need to perform a risk assessment in the face of climate change. We carried out a deep analysis of all our value chains in all data service, our Vusion locations, our customer or supplier locations to ensure business continuity. Now transition risks are more medium, long term in nature. And we need to ask ourselves questions regarding the volumes as part of a low carbon transition. I'm referring to silica, lithium and other critical IRFs that are key to the environmental transition.

And also, there are potential risks, carbon taxes in Europe, for example. So what would be the financial risks for the group? And how could we anticipate such risks over the medium and long term. One of the best possible answers is not the only answer, but one of the best answers would be to decarbonize our business. So decarbonization means decarbonizing our solutions because they account for 90% of our carbon footprint. The solutions that we market account for 90% of our carbon footprint. For a number of years now, every year, we make a commit to the SBTI, the science-based initiative, they have a reliable methodology that helps us showcase the efforts that we're making in terms of reducing our footprint since 2022. That's our benchmark here. That's the baseline for comparison year-on-year.

As you can see, carbon intensity is going down -- has been going down since 2022. In 2025, we made an additional effort. We decided to signpost the way we still have to go until 2030. That's the horizon we set for ourselves. Now our objective remains clear, turn sustainability performance into a driver for business continuity and also differentiation. That's how we stand apart from the competition. And also, it's a tool we use to build trust with all of our stakeholders, including our customers.

Thank you very much. Handing over now to Marianne Noel, Head of HR.

Good morning, everyone. Over the past 14 years, working alongside Thierry at Vusion together with the other members of the Executive Committee, I believe we can be extremely proud of our ability to preserve, integrate and develop our human capital, including the talent brought through acquisitions. And to achieve this, we've built a shared culture, a management culture that combines diversity, alignment and performance. And we believe that employee engagement is the primary driver of sustainable performance. And our people strategy is built around 5 priorities. We accelerate skills development and career growth, both in France and internationally. Every year, we expand employee share ownership to align performance and foster entrepreneurship. We also invest in world-class working conditions, both at the office and working remotely. We promote diversity as a source of performance and innovation. And lastly, -- we use strong constructive social dialogue to build the company together. Vusion employs more than 1,200 people across 19 countries. We've got 59 nationalities represented in our workforce. So cultural diversity is deeply embedded into our DNA. Our multigenerational workforce is another major strength. Gen Z now represents 21% of our headcount. As a result, our diversity program is primarily focused on increasing female representation at every level of the organization. Particularly in industries where women remain underrepresented such as tech and retail. For the past 5 years, our strategy has been based on 3 pillars: attracting more women, accelerating their development and career progression and supporting parenthoods and work-life balance. And this approach is delivering tangible results throughout the organization. Women now represent 34% of our total workforce and 30% of our management population. Yes, we still have some way to go, but our program is clearly producing results. Now we have a proactive and effective approach. Our performance share program remains at the heart of our employee engagement strategy. 67% of our employees are shareholders of Vusion. And this is a key pillar of our HR strategy because we get to align performance, encourage entrepreneurial thinking and support long-term talent retention. Lastly, employee satisfaction remains very strong. Overall, we measure it anonymously every 6 months using the same methodology we apply to customer satisfaction. Our employee NPS currently stands at plus 32 on a scale ranging from minus 100 to plus 100. As a technology company, R&D in yellow here remains a core strength. It represents 32% of our workforce. Regional, commercial and operational teams account for 41% of total headcount, and we work in close proximity to customers across Europe, the Americas and Asia. Our headcount in the Americas is growing rapidly. Obviously, this increases labor costs. At the same time, corporate functions continue to expand in order to support the group's growth trajectory. As I said before, we have a performance share program, which is at the heart of our motivation and retention strategy. How do we attract the best talent, knowing that we're competing against some of the world's leading technology companies? Well, we need to provide attractive and sustainable compensation packages. And we also need to foster a unique entrepreneurial culture. Every year, ambitious performance criteria ensure alignment between individual interests and collective corporate performance. This strengthens our culture of performance while encouraging long-term value creation. Our voluntary turnover rate is only 5.3%. We're seeing remarkable stability within our leadership teams. This shows that our program continues to demonstrate its effectiveness as a key pillar of our people strategy. Thank you very much for listening. Now I'd like to hand over to Jean-Baptiste Frossard, Head of Information Systems, and he'll give you an update on cybersecurity and AI.

Good morning to you all, as you know, cyber risk is a critical issue for all companies. This is why cybersecurity has become a central priority for Vusion, not only because it protects our systems and data, but also because it directly contributes to the trust placed in us by our customers, partners and shareholders. In 2025, we continue to strengthen our cybersecurity program around 3 complementary priorities. The first priority concerns our people. We know that security is not solely a matter of technology. It also depends on the awareness and behavior of every employee. That's why we've reinforced our training, awareness, e-learning and simulation programs, particularly through regular phishing campaigns to further embed a shared cybersecurity culture across the organization. Second priority focused on strengthening our security posture. We deployed new tools and technologies to better prevent, detect and respond to threats in an environment where cyber attacks are becoming more frequent, faster and increasingly sophisticated. Finally, we continue to enhance our cyber governance includes alignment with recognized standards such as ISO 27001 and SOC 2, regular oversight of our security control test and programs involving our suppliers and partners because security is only as strong as the ecosystem in which we operate. I'd like to remind you that beginning of 2026, we successfully renewed our ISO certification for our labeling solutions and IT operations. Looking ahead to 2026, we intend to build on this momentum, 3 key priorities: extending ISO 27001 certification to our latest solutions, extend AI to strengthen our cyber defense at the same time, manage new cyber risks linked to the growing use of AI. Our objection remains clear: make cyber a long-term investment supporting resilience, compliance and customer trust. On the artificial intelligence front, we launched the AI for Fusion program mentioned by Thierry. The goal is to move beyond experimentation towards broader but above all, controlled deployment. It's not just a matter of adding new tools to the organization to make AI a practical driver of efficiency and performance for our teams, our business functions and above all, our customers. To achieve this, we structured the program around 3 pillars. First pillar is broad adoption by all AI assistants must become accessible, well understood and effectively used. This requires supporting employees, providing training and helping them develop the right habits so that AI can be used productively, securely and responsibly. Second pillar, business-specific AI agents. We're moving beyond general purpose assistance. The goal is to target specific processes where AI can streamline workflows, reduce operational friction and improve efficiency. It's a powerful way to create additional value for customers by improving speed and quality of responses. Third pillar, governance. The rollout of AI must be properly governed. -- compliance, security, sovereignty, environmental impact and risk management must all be embedded in our approach from the outset. In summary, our ambition is to accelerate AI adoption without losing control of it, a challenge combined adoption, performance responsibility, making AI a genuine driver of sustainable transformation. Thank you. Back to Thierry.

[Foreign Language]

Thank you, Jean-Baptiste. Good morning. I'll now present our financial results for 2025. As in previous years, you'll be used to this. I'll present our key financial metrics, both under IFRS on an adjusted basis to neutralize certain IFRS treatments related to our contract with our largest customers in the U.S. The details of the adjustments are provided on the next slide. Before that, I'd like to highlight the excellent performance in 2025. As you can see, all lines are up substantially, the case for revenue, up by more than 50%, both under IFRS on an adjusted basis, reaching [ EUR 1.527 billion ] adjusted gross profit, up 60%, growing faster than revenue, reaching nearly 31% of revenue. That's an improvement of 1.6 points over the previous years. OpEx increased by 43%. That's less than revenue, representing 12.7% of revenue, a reduction of 0.7 percentage points last year. No surprise, a strong increase in adjusted EBITDA, up 73%, EUR 277 million.

That's an adjusted EBIT margin of 18.2%, up 2.3 percentage points year-on-year. Depreciation and amortization also increased significantly, primarily due to additional production lines in which we've invested for the group to assemble products sold to Walmart and fully funded by Walmart. These production lines, the 3 lines that we installed recently began by generating depreciating charges in 2025 and the addition of the first line already depreciated since 2024. Adjusted EBIT more than doubled to reach EUR 164 million. That's EUR 10.7 million of revenue, up 2.9% over last year. Overall, adjusted net income reached EUR 157 million or 6.5% of revenue, nearly triple the level achieved in 2024. On the next slide, we present the main adjustments of IFRS and adjusted accounts. Firstly, these adjustments have no impact on cash and identic to the restatement that we had in the financial 2024. We have 2 adjustments that impact revenue to net income. The first adjustment relates to the amortization of fair value of the warrants granted to Walmart under certain conditions. This adjustment generally proportionate to revenue generated with Walmart had a negative impact on IFRS revenue in '23, '24, '25 and will continue to have a negative impact in 2026. Second adjustment is that of the IFRS recognition of weighted average selling price over the entire duration that had a negative impact in IFRS 23, '24 began reversing in Q3 of '25, '25 generated a mod positive effect under IFRS, even greater in '26 Financial result impacted by 2 adjustments similar to those last year.

First concerns the revaluation of the fair value of Walmart warrants given the average Fusion share price over the second half '25 versus second half of '24 despite the lower number of warrants outstanding. The fair value increased by EUR 7.3 million, and it's the EUR 7.3 million that lead to a similar amount of financial expense in 2025. Final technical point, IAS 21 accounting treatment for intergroup flows between the parent U.S. subsidiary having a positive impact of EUR 48.7 million IFRS together with associated tax -- deferred tax generated negative impact, EUR 14.5 million on '25 net income, but has no impact on cash flow. Let's now examine our financial performance in greater detail, starting with revenue.

2025, as I said, record an increase of 51% of adjusted revenue, [indiscernible] by the Americas and APAC. Due to the volatility in the euro-U.S. exchange rate during the year, revenues in U.S. dollars were negatively impacted when translated into euros and a short presence of revenue at constant exchange rates between '24 and '25, it would have been at EUR 1.058 billion. That's an additional EUR 54 million compared to reported figures. VAS revenues grew twice as fast as the group, 100% increase, thanks to nonrecurring Vusion OX revenues as well as recurring revenue, which reached an annual recurring revenue run rate, EUR 105 million by Q4.

Next slide, EBITDA. You see adjusted EBITDA margin improved by 2.3% primarily due to higher gross margins and a favorable product mix as well to a lesser extent, reduction in OpEx as a percentage of revenue. While foreign exchange movements had a significant impact on revenue, their effect on profitability remained relatively limited. Financial income amounted to EUR 87.5 million in 2025 compared with negative EUR 50 million in '24 before IFRS adjustment, adjusted financial income totaled EUR 46.1 million, which included negative EUR 11.2 million of cash impacting items, EUR 11.2 million ForEx losses because of high euro-dollar volatility. Financial income generated from treasury investments reached EUR 17 million compared with EUR 4.7 million in 2024. Interest expenses decreased from EUR 12 million down to EUR 8 million, reflecting lower interest and reduced group financial debt.

Next slide. CapEx totaled EUR 137 million compared with EUR 158 million in previous year. This amounts EUR 77.5 million invested in Walmart financed production lines. The final production line reached full capacity during Q3 '25. The 3 others already entered operation during the second half of '24 and Q1 '25. We now operate 4 production lines at full capacity. Cash funded CapEx financed directly by the group totaled EUR 60 million in '25 as against EUR 40 million in '24 and represent around 4% of adjusted revenue.

Turning now to cash flow and liquidity at the end of '25. The group reported positive net cash of EUR 439 million compared to EUR 393 million 1 year earlier. That's an increase of EUR 46 million. As mentioned earlier, operating free cash flow defined as adjusted EBITDA less group funded CapEx improved significantly in both 2024 and is expected to continue increasing in 2025. It increased by EUR 96 million, representing an increase of 83% with '24. Free cash flow affected by several factors, increase in free cash flow, but consumption of customer advance previously received from Walmart, whose negative impact will increase 2026, investments in prefinance production lines in '23, '24 and income tax payments totaling EUR 53 million compared with EUR 4.7 million in '24 and '24. We still had loss carryforwards to partially offset taxable income.

Limited amount remained available in '24. We utilized it in '24, but no such tax loss carryforwards remain available at the end of 2025. In addition, -- the group executed share buyback programs, completed certain M&A, received EUR 73 million from Walmart's exercise of its warrants. Finally, foreign exchange movements negatively impacted the value of our USD cash position by EUR 45.6 million. To conclude this financial review, the Board decided to propose at this AGM the payment of a dividend of EUR 0.90 per share in '26. If approved, this would be the third consecutive annual increase for 2022. This concludes the presentation of financials. Back to Thierry Gadou to address the group's outlook.

Thank you, Thierry. Many thanks to all of the members of the Executive Board who presented the various segments. We remain firmly on track in 2026 to deliver profitable growth. Adjusted revenue growth for the full year is expected to be between 15% and 20% at constant exchange rates and tariffs. Revenue should be relatively evenly distributed between the first and second half of the year. And both the EMEA region and the Americas and APAC region are expected to deliver growth over the full year. Total revenue for value-added services is expected to increase by approximately 40%, representing a growth rate roughly twice that of the group as a whole. And this performance will be driven by strong momentum across both recurring and nonrecurring VAS revenues. And the group also targets further profitability improvement with adjusted EBITDA margin expected to increase by more than 100 basis points. Finally, as Thierry just said, we expect to continue increasing our operating free cash flow. Supported by the strong Q1 performance recently reported and the rapid growth of our value-added services business, a promising commercial pipeline in both Europe and the Americas and also our continued leadership in innovation, we are confident in our ability to achieve these 2026 objectives and to deliver on our medium-term growth ambitions. In particular, we remain fully committed to achieving the objectives set out 4 years ago in our Vusion 27 strategic plan. We presented it in November 2022. Now I'm going to hand over to Helene Ploix, Head of the Audit Committee and then to our statutory auditors. Are you here?

I'm here, Celine.

Thank you. Good morning, everyone. I would like to start by thanking Thierry Gadou for his kind words, for his very kind words. I'm sorry, I'm having a moment. I've been so fortunate to be able to support this group for so many years and also being there to support this amazing transformation and being able to work in such a positive working atmosphere. We're all determined to move forward together. So many thanks to everyone for their contributions. My warmest thanks to Thierry Gadou, of course, and also the other members of the Executive Committee. Also, I would like to thank the whole finance team. Thank you for your transparency. Thank you for being so responsive. Thank you for being so open-minded. Thanks to the spirit of full transparency, we've been able to do our part as members of the Audit Committee throughout the period during which I was fortunate to serve on this committee and also chair it. Many thanks also to the statutory auditors. It's been a pleasure working with you all. The Audit Committee obviously reviewed the financial statements. We did it in a number of sessions. We paid close attention to the URD. We held regular sessions throughout the year with the internal controlling team. Obviously, we reviewed the statutory auditor's report on the financial statements. We also discussed the audit plan. We reviewed all of the matters of significance indicated as part of the audit and paid close attention to our work with the statutory auditors throughout the year. We are extremely satisfied with the way things unfolded. Without further ado, I'd like to hand over to the statutory auditors.

Ladies and gentlemen, shareholders, on behalf of the statutory auditors, Deloitte and KPMG, I'm pleased to present the reports that we prepared for your attention with respect to FY ended December 31, 2025. These reports were made available by the company and included in the URD for 2025. I would like to briefly summarize the main conclusions regards the reports on the parent company and consolidated financial statements subject to first and second resolutions will certify the financial statements for the year ended December 31, 2025, regular and fair in respect of the accounting standards give a true and fair view of the company's group's results, financial position at the end of FY '25. Our reports include a specific section describing the key audit matters, which in our professional judgment were of greatest significance during the audit due to their complexity or level of judgment required in their assessment. Our reports also describe the audit procedures, identify Key points, the valuation of goodwill for consolidated financials, 2 key audit matters were identified, accounting treatment of Walmart and valuation of goodwill. Our report on parent company statements includes an emphasis of the matter relating first-time application of ANC Regulation 2206, which modified the presentation of financial statements and therefore, a change in accounting methods. Both reports, we confirm we perform the specific regulations required by law, including those relating to that of the Board on corporate governance as well as commitments, compensation and benefits granted to corporate officers. All of our work and detailed conclusions were presented to and discussed with the group's Audit Committee. With respect to the fourth resolution of this general meeting, we've issued a report on related party agreement. The first section of this covers agreements authorized and entered into during the financial year. Two new agreements are disclosed. The first concerns the termination of the cross-license agreement entered into with UN Digital Technology that was effective on December 10, '24, the new agreement governing research and R&D activities relating to products and components. Under this agreement, the company recognized an expense of $2.8 million during FY 2025. Second agreement relates to a supply and industrial subcontracting contract signed with BOEVT Hong Kong in December 22, which did not generate any expense for the company in 2025. Our report also refers to several agreements previously approved by shareholders and whose execution continued during 2025. These include the supply and industrial subcontracting agreement and its amendments entered into with Chongqing BOE Smart Electronic System Co. under which the company recorded total purchases of $244 million of purchases during the year. Several agreements entered into with Fuzhou BOE Optoelectronics Co. and Beijing BOE Optronic Technology Co. relating to product development arrangements that include exclusivity provisions with no impact on 25 financial supplied agreement with UN digital technology Beijing relating to the sourcing of components and selection of subcontractors for finished products, which generated an expense of $0.6 million of component purchases in '25. And lastly, a cross-license. -- finally, the affiliation of your Chairman achieved to the GCG on Employment Insurance Scheme representing an expect of EUR 23,000. Under the extraordinary meeting, we've issued several reports, a report on the proposed share capital reduction relating to Resolution 16, a report on the delegations of authority relating to share issuances relating to resolutions 18 through 22, a report on capital increase for employees in the savings plan relating to '23 authorization for free shares, Resolution 24 and a report on the proposed amendments of terms and conditions of warrant issued in favor of Walmart Resolution 25. These reports describe the procedures performed and don't contain any observations. Lastly, we also issued a report not associated with the resolution submitted to this general meeting. This concerns the report on sustainability and taxonomy disclosures. Our limited assurance engagement covered compliance with ESRS, European sustainability reporting standards and applicable European regulator -- based on the procedures we performed, we did not identify any material statements emissions or inconsistencies. Ladies and gentlemen, thank you for your attention.

[Foreign Language]

Thank you. I'm now going to give the floor to Morgan L Pri for the presentation of the resolutions submitted for voting.

Thank you, Thierry. Ladies and gentlemen, dear shareholders, hello. A total of 27 resolutions are submitted for your approval at this AGM. Resolutions 1 and 2 have to do with the approval of the financial statements. You've received a detailed presentation from our Deputy CEO, Thierry Lemaitre, so I will not revisit them. Resolution 3 has to do with allocation of earnings and dividend. As we said before, this year, we propose a dividend of EUR 0.9 per share compared with EUR 0.6 per share last year. The dividend will be paid on June 12, 2026. As shown on the slide, the remaining earnings after dividend payout will be carried forward. And the legal reserve will be maintained at the required level of 10% of share capital. The following resolutions, resolution 4, approval of 2 related party agreements entered into in 2025 and approved or rather authorized by the Board of Directors. Our statutory auditors just referred to them. These agreements are also described in greater detail in Section 3.6 of the URD. Now resolutions 5 to 10 have to do with the Board composition. You are first asked to ratify the appointment by co-optation of Ms. Ms. Lyne Castonguay, who joined the Board in February 2026 as an independent director replacing Ms. Johnson. You are also being asked to renew her term for a 3-year period. Ms. Castonguay is with us today. I'm going to ask her to come to the rostrum so she can introduce herself to our shareholders.

Ladies and gentlemen, dear shareholders, good morning. I'm delighted. I'm honored to join you today. I would like to extend my warmest thanks to the Board of Directors as well as the management team. Thank you for trusting me. I was born and raised in Canada, and then I moved to the U.S. with my spouse and my 2 children. That was over 20 years ago. Today, I have dual citizenship as a Canadian and American citizen. Throughout my career, I served various leadership positions for many international corporates such as GE, Home Depot, Sopex, Apito and Starbucks. I occupied leadership positions in operations, merchandising, innovation, supply chains, customer experience and also business model transformation. Over the years, I've worked with teams and partners across the world how quickly retail evolves. Retailers are faced with increasingly complex challenges today. It's important to improve store productivity, optimize inventory, resolve out of stocks, reduce waste, enter planogram execution while at the same time, improving customer experience using physical and online distribution channels. In the meantime, artificial intelligence, customer loyalty, data analytics and online sales are all having a deep impact on how retailers operate and make decisions. Both online and offline retail are no longer separate. We're seeing quick convergence between the 2 and retailers are looking for solutions that will help them manage this new reality. It is precisely what I found attractive about Vusion. Of course, this company is recognized for its leadership in electronic labels. But what I found particularly impressive is Vusion's ability to respond to some of the biggest challenges retailers are currently faced with. How do you better manage product availability and inventory, improve team productivity in stores? How do you help consumers find what they're looking for quickly? How do you ensure better operational execution? And also, how do you use data and artificial intelligence so as to make the best possible decisions in real time. These are challenges I've been faced with throughout my career. And I continue to see those challenges emerge in my responsibilities as a director. I do believe that Vusion has a unique combination of technology, data, artificial intelligence and retail expertise. And this combination helps it support retailers as they operate their own transformation. It is this vision. It is the quality of Vusion's team and its leadership qualities that it is because of all this that I decided to join the Board. And I'm really enthusiastic. I'm looking forward to using my international experience in mass retail, in innovation, in transformation and governance. I'm looking forward to using my skills to help the grow help Vusion continue to grow, assuming you ratify my co-option. Thank you in advance for your trust. I look forward to working with my fellow Board members as well as the management team over the upcoming years. Thank you so much.

Thank you, Ms. Castonguay.

In addition, shareholders are asked to renew the mandates of Peter Brabeck-Letmathe and Mr. Moison, Resolutions 9 and 10. This approach also helps maintain a healthy balance between recently appointed and more experienced Board members. As a reminder, Mr. Brabeck has served on the Board since 2022 and Mr. Moison since 2020. You're also being asked to renew the term of Mr. Gadou as a Board member as well as Ms. Cenhui He, Resolution 8. Mrs. He has been a director -- a member of Vusion's Board of Directors since 2020 and also serves on the Board of BOE Smart Retail, a significant shareholder of the group. If you approve these resolutions, the Board would consist of, as you can see on this slide, 70% independent directors compared with 50% in 2024 and 64% at the end of 2025. I will now hand over to Emmanuel Blot, Chairman of the Nomination and Compensation Committee, who will present the resolutions relating to executive compensation.

Ladies and gentlemen, shareholders, good morning. Coming back to you again, Resolution 11 14 that concerns compensation. Firstly, the compensation in respect to 2025 of executive officers and then '25 CEO, Mr. Gadou and then 2026 with compensation policy of the Board and the compensation policy of the Chairman and CEO. Slide on screen details the compensation awarded to the Board members in respect of 2025, as you can see and as a reminder, the company does not compensate nonindependent directors. Regarding compensation of Chairman and CEO, you have the details of the compensation for 2025, an amount of variable compensation of EUR 383,040 based on quantitative qualitative performance criteria and the granting of 7,978 performance shares. Resolution 13 concerns, as I said, the directors' compensation policy, no change versus last year. this time, compensation policy for the Chairman and CEO 2026 stability over last year, no major changes. You have, of course, the various components summarized on the slide, but also detailed in the Notice of Meeting. Concerning variable compensation, shown here is the split, 70% between quantitative criteria, 30% qualitative criteria, qualitative criteria presenting particular areas of focus that the Board and the management team will focus on regarding the distribution, its stability comparatively versus last year. And as regards long-term compensation for the Chairman and CEO, we consider stability is a good thing, and we confirmed if you approve that the criteria thus described. So that's for the resolutions 11 to 14, and back to Morgan.

Thank you, Chair. The final resolution within the Ordinary General Meeting concerns the authorization usually granted to the Board of Directors to repurchase company shares. So this is Resolution 15. Now moving on to the extraordinary resolutions. Resolution 16 complements the previous share buyback authorization. It authorizes the Board of Directors to reduce the share capital through the cancellation of treasury shares held by the company. Then we have a whole block of resolutions. Resolution 17 to 23, which have to do with financial delegations. These delegations provide the company with the flexibility it needs to raise capital efficiently in support of its strategy without having to convene a new shareholders' meeting. The maximum amounts are displayed on the screen. The maximum amounts vary depending on the type of capital increase and whether shareholders' preemption rights are maintained, what we call DPS in French. So as usual, when preferential subscription rights are maintained, the maximum issuance amount is higher than when these rights are waived. So the maximum issuance amount is approximately EUR 16 million, representing around 50% of the share capital. When subscription rights are waived, but a mandatory priority period is provided, the ceiling is reduced to EUR 6.7 million, representing about 20% of share capital. So that's Resolution 19. Without preferential subscription rights and without the mandatory priority period, the ceiling is limited to 10% of share capital. So I'm referring to resolutions 20 to 22, and these limits are not cumulative. They remain subject to the overall ceiling, which is 10% of the share capital. Now Resolution 24 regarding performance share authorization. The authorization is kept at 4.5% of share capital for a period of 38 months. For reference, the previous authorization granted by the AGM on the same front covered the same percentage in duration and was utilized by the company at approximately 2% of share capital. Resolution 25 -- it introduces additional flexibility regarding the exercise of Walmart's warrants, what we call BSA in French. Currently, Walmart may only receive newly issued shares when exercising its warrants, resulting in shareholder dilution. If approved, this resolution would allow the company to deliver treasury shares instead, thereby reducing potential dilution. Lastly, Resolution 26 -- it proposes an amendment to the company's bylaws. The goal would be to provide greater flexibility regarding the duration of directors' mandates. So the standard term remains 3 years, but shorter terms could be used when necessary to maintain appropriate staggering of Board appointments. At present, the company has no immediate need to implement this flexibility as Board terms are already appropriately staggered, as you can see on the screen. Chair, this concludes the presentation of the resolutions submitted for shareholder approval.

Thank you, Mark. And without further ado, we're going to open the Q&A session. You have the floor.

First question. I'm an individual shareholder since you concluded your contract with the warrants with Walmart. I was fortunate enough to hear you several times on the business radio. And I say that you advertise on BFM radio network, which is very relevant, but they forget certain times of the day that the SBF 120 comprises 120 stocks with you're in the stocks. And when we disseminate 115 or 113 stocks. Well, we tend to forget the last ones. I think we need to remind that the SBF 120 comprises 120 stocks is the name -- that's duly noted that you don't always have time to listen to that network during the day. Now I also listened [indiscernible] Bank, your intervention, perhaps not the most recent one, but the one before that. And I put myself in the shoes of the prospects. And in what you said, you said, well, Q4 increased revenue by 50%. And another point, you say outlook for next year, increased revenue to grow by 20%. The prospects did their math and said we're going from plus 50% to plus 20%, that means minus 30% and the share price plummeted. They forgot that after that, you said that profits were going to grow. Well, the explanation I've known you for some 3 years now. I've understood it as I explained then. I think that the key point is that -- you have 2 activities. You have an activity initially of placing labels that cost price of a label is quite high. So for stores, when you got thousands, obviously, initial revenue is quite considerable, but you have competitors who simply make do with those labels and don't go any further. And then, of course, in that activity, you have to have very small profits. And then you have all your tech expertise to make a major contribution to store management. And that's a totally different activity. And I think that's what didn't fully come through or come out in that message. In all businesses, the big problem we have is that when we're addressing professionals, well we're readily understood. And in that message, I think it was more destined to store professionals than prospects. And I go to some 20 listed companies and when I have occasion to talk about you, and that's quite often, well, they just note the idea of this -- of your declining revenue. So -- there you have it. I just wanted to give you some advice to improve things in the -- of communicating in the future.

Well, thank you. Thank you for that. And you must always repeat. It's the #1 role in messaging, repetition to be understood. People don't just listen to Vusion especially when BFM Radio forgets us at the list of the SBF 120. I'll make sure with Loic, our Head of Communications that they're made aware of that. And of course, we have to make sure they look at the figures because our revenue isn't declining. It's been increasing by 30% per annum for some 15 years. I mean it posted extraordinary growth last. We continue to grow this year by 15%, 20% a year, and we're confident regarding the midterm growth outlook. So Vusion is a growth company. It may happen that the growth rate isn't always the same. But overall, it's a growth company that's set to continue to grow. But thanks for that advice. And we'll never be overly helped and assisted in terms of communication.

Thank you. I said that I'm too bold, sometimes that I tend to err on the side of caution. I try to find the right balance. Next question, please.

[Foreign Language]

Ladies and gentlemen, I have a couple of observations. -- plus one question. Firstly, I believe it is Societe Generale that manages relations with shareholders. In my experience, Societe Generale causes trouble. I often get the documents after the AGM. I never have these problems when Investor Relations are organized by a different bank. It might be a good idea to maybe use a different provider so that we're not kept waiting at the door for 15 minutes. Now IFRS standards and adjusted standards. Why make your lives complicated if it makes no difference, why not stick to IFRS? Why the readjustments to the figures and why bother explaining the switch from one to the other, people will get used to IFRS. Why are you making your lives harder and shareholders' lives as well?

Second question, Walmart is a major contributor to your revenue and your profit. I understand that the contract ends in 2027. What will happen then? I know that Walmart has made significant investments. What will happen in 2027? Will they go it alone or have they invested so much time and experience into using your tools that they're going to stick around? Also, Walmart will get shares, but what will the share price be? Also, you talked about the contract with Carrefour over a 3-year term. What will happen in 3 years' time? Will Carrefour continue without you once they have acquired that experience and taking possession of the equipment? So what is the level of continuity for these contracts, which drive major business at first, but what about next steps?

Thank you, for your questions. Regarding IFRS standards, Thierry can take this one.

For starters. I agree with you. Yes, IFRS standards and adjustments have an impact on the Walmart contract, and it does make things complicated. And the reason why we chose adjusted IFRS standards is because a number of shareholders wanted us to. Unless we do that, unless we make the adjustments to the financial statements, we're seeing much lower growth in revenue. And then we have to explain that part of the reason behind this lower growth has to do with the restatements pertaining to the Walmart contract. And that is why we made that decision to present to the adjusted financial statements so as to preempt that question, which has cropped up before when we met with investors. So that was the goal behind the adjustments so as to preempt potential questions from investors because these questions have cropped up before.

Regarding your second question, rather part 2 of your manifolded question, we need to start with a reminder. When you're dealing with a key customer, and that's the way things have always happened, we're dealing with long-term customer relationships and you're building customer loyalty. Generally, those are customers that we grow our business with. Their share of business is increasing. We've been able to expose to them our wide gamut of solutions. So this has never happened before, having -- starting a contract and at the end of the contract, the customer disappears and goes off on his own into the sunset. -- no, that doesn't work. That's not reflected in our business. Our business is positive on decades-long customer relationships.

And our customers account for significant revenue because -- and this stands us apart from the competition, we have a whole portfolio of solutions that our customers have come to trust. Now allow me to offer one correction. Walmart has not invested into the tools. We own the tools. They simply prefinance the tools -- so these are proprietary tools that we make available to Walmart. Also, Walmart is a company with whom we will wrap up just part of the project. There are many other solutions, and we've tried to give you examples today, solutions that we're working with -- that we're working on with Walmart. And Walmart is a major retailer at global level. They have a presence in many different countries, including Mexico. We're rolling out solutions in Mexico and many other countries as well. And also, there's something you need to realize about Walmart. Considering its scale and growth, every 3 years, because of their growth, this is the equivalent of us increasing our revenue by 1/3. And they're doing that. Every 3 years, they added to their growth, they add to their revenue, the equivalent of our revenue. So we need to bear in mind their vast geographic presence, their size, their growth rate. So I think this is a big customer, and they're here to stay. Again, this is Phase 1. This is the first milestone in our whole scope of solutions.

And I think the future holds much more in store, both for Walmart for all of our other customers. We cover a lot of processes that retailers use. This means -- our customers are home to a lot of growth drivers. I'm talking about our revenue. I can't see. Let me know if there are other questions.

Good morning, Chairman to all. I'm an individual shareholder. I might here at the back of the room. Thank you for your AI presentation. I've got a comment on the presentation of the AI section distinguishes AI perception, AI generative AI and agentic and physical AI. My question focuses on agentic AI. Could you give us some tangible example as AI powered?

I'll perhaps ask Jean-Baptiste if he's with us to discuss.

That's a very good question because it's a term that's increasingly used, does AI covers different realities. Yes, excellent questions. Thanks, around Agentic AI, what we're beginning to look at is identify the use cases, several types of AI Agent, perhaps Agent I'd call personal, everything that can assist team members in their daily work from enterprise AI, typically agents that can serve to provide benefits for all the teams. We're focusing on the various high levels. The one most interest is AI enterprise Agentic enterprise identify use cases that we've done to give performance and efficiency drivers, typically examples in finance for accounts payable, examples for ADV, automated orders, someone sends us a mail how we can use an agent that can process that order, also logistics, receptions of orders or order processing that we're addressing that with Agentic AI, raising a point about the various types of AI. We have Agentic AI. We're not stopping there. We have algorithmic AI, predictive AI we can use in certain cases.

Thank you. And then, of course, there's our role serving the use of AI by our customers because AI without data is not much use. And so having stores with a lot of real-time data signals and data that was clearly illustrated today. Well, we're driving the large language model used by our clients to develop agents that automate processes and can process incidents, anomalies a lot faster. AI, I mean, we're not specifically in there, but AI is going to be at the heart of business operations and solutions, and it's also our case.

I'm an individual shareholder. Your performance in North America and in Europe is outstanding. Have you taken an interest in Asia, New Zealand and such countries?

The answer is yes. Obviously, we are taking a look at those regions. Clearly, our current affinities are based on the way that we've analyzed the market. And based on our market analysis over the next 5 years, between now and 2030, much of our market growth will be found mostly in EMEA, in Europe and in the Americas. So this is why we're focusing our investments in those 2 regions. But it has been shown before, our 10-year vision does encompass all regions of the world, including Asia, India and China, of course, not forgetting Southeast Asia. We have a subsidiary in Australia, and we cover New Zealand from that office. We have an affiliate in Singapore as well.

Pierre [indiscernible] talked about that this morning. He just got off the plane. He came all this way to present the figures to you. So yes, all of those regions are on our radar. But we will strengthen our focus on those regions in the upcoming years. We will continue to focus on Europe, but also the Middle East, North America, et cetera.

Good morning, Thierry. I'm a loyal shareholder for [ 18 ] years, a total of 20 years, a personal note for Helene Ploix. We don't often meet people such as yourself in the community of business leaders. I'd like to thank you. We're going to miss you. And as a director, the worst time in the 2023 crisis you acquired shares. That's a very courageous sign that shareholders very much appreciate. Thank you, Helene.

It was in 2023, yes. I'm younger and my memory sometimes fails me. So a question, Thierry, on the Captana model, the remains really one of the pillars of future development over and above hardware. The -- can the Chair of the company say a word about development models that will link Vusion to its customers. This is just one possible model depending on the clients, the customers and the continents? Or will it be adapted depending on the retailer?

To make sure I understand the question. When you say model, you're talking business model. Well, [indiscernible] you're referring to the business model over and above the sale of pure hardware, what comes after that? Because we readily understand the savings efficiencies on stocking and refills will be considerable. Now there isn't one -- just one model. There isn't just one single market or one type of client. What's -- very important to understand, Captana, generally speaking, and the AI vision will be one of the growth drivers for us, not just an engine in itself, but an enabler for developing many other offerings that are -- solutions that are emerging around this engine because you've seen this in at least two, if not, three videos illustrated all very recent less than 3 months, you see how the fact that you have an eye in every shelf there will be key to optimize through AI to process these millions of signals will be the heart of optimizing something that's the most central in commerce, which is the supply chain.

And so AI cameras in the stores, in the shelves is absolutely key. It's key for the merchant for his partners managing his supply chain and it's key for the brands, the major brands or suppliers. And consequently, to answer your question, there will be several types of models. There will be models with retailers who opt to invest in the infrastructure and pay the service that delivers the value that is the software, the AI to transform images into structured data, et cetera. So that's a model.

There'll be models with customers, and that's going to happen very soon is saying. I'm not going to invest. I want to buy the output that -- when I have stock out, if I'm consistent and compliant. That's what I'm going to buy. I don't want to invest in the hardware, I want to acquire the data. Others I'll just take those who'll say, and it's the heart of our partnership with Nielsen. I don't want to invest. I don't want to have the benefit.

But as it benefits my suppliers hugely. They're going to pay for that solution because they're spending a huge amount of money to acquire far more partial, less frequent, more granular data in they're spending a lot of money by -- to do that by sending people in the stores to observe their shelves. So I'm going to help them save a lot of money, they'll finance the infrastructure, and that's another model.

And that's one of the solutions that's at the heart of our partnership at Nielsen, which is progressively being rolled out. There are many models. What's certain is a key component, one of our major clients says to computer vision, it's the next big development in this sector. We're really -- they're cutting -- it shall be several models, but they'll all be good models.

I'm an individual shareholder. I have a couple of questions. First of all, how well do you get along with your Chinese partner, BOE technology once they've sold part of the shares and what is their equity in Vusion Group?

On the business front [ asset ]. How long is that -- how long would that -- those exclusive rights last regarding Walmart? And what can we expect in terms of revenue growth in that sector before others take over and take the lead? I have more questions.

In terms of R&D, you just talked about Nielsen. Last year, you presented a very ambitious program called Memory developed with Nielsen. So there's an R&D component. How soon do you believe sales can begin? The marketing phase, how soon do you think it can begin also? I noticed the IAS 21 line, EUR 48.7 million versus just a few dozen million euros in negative territory last year. Can you tell us more about that?

Now our relations with BOE are very good. And these relations are twofold. BOE is a subcontractor, an assembly subcontractor. We have three or four such contractors. We have a highly geographically diverse supply chain. We operate on every continent including in China, Vietnam and Mexico. So we have several partners. BOE is one of those partners, and we have an exit relationship with them.

And also, they are a shareholder, and they own 24% of Vusion Group. And that is why they have a seat on the board. So we have long term and excellent relations with them. BOE is a long-term shareholder, as I said. Yes, their share of our capital has diminished, but we wanted it that way. In order to succeed in the U.S., we needed to alter the balance considering the current geopolitical tensions. We needed to tweak the balance.

The breakdown of our share capital. It would have been very difficult to succeed in the U.S. if we had a majority, a Chinese majority shareholder. But this has zero impact on the relationship with BOE. So like I said, this is a twofold relationship, but we do have a Chinese wall between the two. BOE is the biggest digital screen provider in the world, and their #1 customer is Apple. So much for BOE.

In terms of management, I really couldn't tell you. I mean I'm sure they buy shoes every day. Now Vusion holding company that brings together both management and a lot of employees, a little less than 11% for [indiscernible]. And then we may have individual holdings such in mind, but these figures have been made public. You can find them in the media annual report.

I don't know the details, so feel free to check the annual report. So about 15%, I would say, between management and employees because we have to factor in the employee share ownership program, so about 15%. That's the share of capital.

Regarding Nielsen and Memory. Now these two subject matters go hand-in-hand. So my answer is twofold. On the one hand, we do have R&D projects and marketing of such projects has already begun. For example, the Vusion line application that was presented last year. It keeps on evolving. There's a strong focus on developing this new platform. So like I said, marketing of such platform has already begun. And this is a major contributor to the quick growth in our value-added services alongside the Captana system and cloud technology.

And in terms of Memory, Memory is one of the entities within the scope presented by Jerome Hamrit. So this includes Memory and Captana. So Vusion intelligence, for those of you who are wondering, actually brings together all of those retail media, computer vision and data analytics aspects.

Now in terms of IAS 21. We need to get back to the fundamentals of a contract with Walmart. Under this contract, Walmart [indiscernible] to prefinance the production lines in which we invest. So the cash is received by our American entity, which has a report with Walmart, but the investment is made by the head office in France, and they borrow dollars from their affiliate. In the U.S., obviously, this generates a currency impact.

And IAS 21 actually recognized the potential of ForEx loss at HQ level because there's volatility between the euro and the dollar. And we need to continue investing into the production lines, and this means that the head office has borrowed even more dollars from its U.S. affiliates. So there is a cash impact, which is reflected in the P&L.

Now regarding your question about Walmart, there's no exclusive contract with Walmart.

Yes. Good morning. A few years back, Amazon acquired physical store chain, think it was Whole Food. How is Amazon looking at your solution? Have they contacted you? And all retailers, be it Carrefour, Walmart, et cetera. sell on the web. So are you involved in the interface -- for online sales, you're managing the SKUs [indiscernible] inventory, it's perishable inventory that's key. So are you involved? I mean, could we imagine virtual stores on site? Do you have a role to play in that? Or are there solutions just in the physical stores?

Well, let's start with your first question. Amazon interested in our solutions. Well, Whole Foods was acquired by Amazon a few years back. And for the time being, they have not initiated any particular modernization that would use our solutions, but we have a great many stores under the Amazon brand, Amazon Fresh. I'll let Philippe speak to that because he's in charge of the Americas. Here, we have several banners.

Yes, you can, we've got several banners with Amazon Go, Amazon Fresh, Amazon 4 stars, Amazon Books and Vusion was been a long-term Amazon partner. Not in the Whole Foods chain. They're still a quite analog digital model as it happens, but we're still on paper.

And turning to your second question. So you'll have understood that one of our four pillars of solutions is e-commerce, that is the web to answer your question, but our specialty, as you have seen, orders that are made online on your mobile or your computer delivered by the corner shop. That's the thing.

That's going to be the future of commerce, and that's the growth driver of Walmart in the U.S. You've seen a figure that's striking Walmart orders prepares 2 million orders a day in their stores. And over 35%, 36% Q1 had delivered in under 3 hours, and they want to put 95% of Americans within 3 hours of their store or even 30 minutes from their store in their next program.

So the commerce growth driver is e-commerce. But make no mistake about commerce, all of you here, you're going to increasingly order online, but it'd be increasingly delivered by the corner store that we have a central role -- can't be done without the digital transformation of stores. We have a central role in e-commerce as it happens.

I have a question. Shrinkage. Is there anything you can do to reduce theft-induced to shrinkage?

Jerome looks like he wants to answer this one. Go ahead. Why don't you stand and answer?

Well, retailers classify this in different ways. Do you mean theft specifically? Well, we have computer vision systems. And as we deploy them, they do not look at systems or behavior, but they do look at product and execution. So theft is not something that we tackle via computer vision. Not retailers look at the quality of inventory data. Now there is such a thing as product breakage and product wastage because of products that are exceeding their sell by date. The reliability of inventory data in stores can actually help us.

Good morning. Individual shareholder. Just three quick ones on my question, picking up on what the gentleman said. I'd like to thank Madam Helene Ploix for this moment of emotion. This humanity is always well committed financial or general meeting.

Second comment, I came on my bike, I almost died twice and run over three pedestrians. I prefer an AGM in downtown Paris next time, if that's at all possible. Third point last year, I ran the risk of not reading my question. I saw afterwards that I got my millions and billions mixed up on the face of it, it's not that important, but my wife watched the recording and made front of me. I'm not going to take that risk.

Fourth comment, which prompts my question. We saw some very good figures today. There's one that's not so good is the share price last year. It was almost twice what it is today. And for a while, at one point, it was almost divided by 3. So this brings me to my question in spite a generous valuation last year, there was a growth driver clearly expressed, announce and sketched out the U.S. market described as under equipped and of course, considerable in the country of high consumption. Walmart, as you said, was the irresistible role model.

Since there are no contracts been announced, the number and size of pilot remains very unfortunately, there's even going to be a reorg in your commercial structure in the U.S. Yes, I did my research work on that.

So my question is simple. Do you still maintain your extraordinary ambitions on the U.S. market? And if yes, how much longer do we have to wait before at last receiving reassuring news about that market?

Well, thank you, first of all, for your first comment. I'm sure that we'll try and take note of that point on the -- on cycling safety for next year. Share price, I won't discuss it. What I said last year, I believe I would confirm what I said. The potential of the U.S. market is immense and it's certainly not the acceleration of the rollout and deployment of Walmart that will contradict that last year, the growth was driven by U.S. market.

Even if Walmart is a model to be followed, nevertheless, the size of the U.S. retailers is such that plans are complex. They take a while on the Walmart results with our technology are recent. I remain, and indeed, with Philippe, we remain absolutely convinced that the market is set to grow hugely installed digitization, and we see that is at the heart of the U.S. retailers' priorities.

And you'll see that I can tell you is that our commercial pipeline is at its highest, notably in the U.S., extremely high and as Philippe said earlier, when we set out our ambition, we set ourselves an ambition back in 2022, almost 4 years ago to deliver between EUR 0.9 billion and EUR 2 billion in 2027, and Philippe confirmed that ambition earlier.

So yes, we must really look at the facts, the market, Walmart is bigger than the others, but will drive the market forward. And the figures would tend to support our forecast. The U.S. is driving the group's growth and we'll continue to do so. I think I've covered your question.

Just I was just doubting your ability to grow in the U.S. So growth drivers and to grow in general.

It's possible. Well, what's sure is that we'll announce it. We'll be announcing contracts in the U.S. for sure. So the option to say that we're not going to announce contracts in the U.S., well, it doesn't exist in my mind. So it will happen now. The share price weight to bounce back that's not sure. Today the argument that drove the short sellers that push the share -- is the acceleration of Walmart, creating a loss because the contract is accelerating.

Technically, that's true. But the facts will prove right. Well on that argument, which is misinformed about the company and the market, the market reality is penetration of solutions at 20%, and Walmart represents about 7% of that potential market, and everyone's anticipating an increase of the penetration rate from 20% to 50% in a few years' time because it's plain, the penetration, adoption takeup is accelerating.

And it's not a contract, even if it's a very significant, representing 7% of the market is going to exhaust potential of a market where there's still 80% to be equipped. It's a question of proportion. So I think that fairly soon the facts will overcome the arguments of the short sellers.

You haven't really answered the question I asked earlier. And when I don't get an answer to my question, that fuels my concerns. Here's my question. At what price Walmart will be able to buy the shares? And what is the share of the total share capital? So we can appreciate how much dilution this will cause?

Now the share price has already been approved at an AGM. EUR 112. That much is clear. Now we talked about the warrants that they could potentially exercise if Walmart spends EUR 3 billion in its business with Vusion, they could get 10% of the capital. At this stage, the equivalent of the 10% is about 7 million shares.

And to date, the potential of the [indiscernible] exercise considering what they've already put in, it's about 2/3 of that amount bearing in mind that they've already exercised 650,000 warrants, which they sold last year and the dilutive impact will be reduced as a result of the resolutions that will be presented today. The goal of these resolutions is to help provide these shares using treasury shares.

One last question maybe before we move on to the vote on the resolutions.

Hello, Chair. There's something I'd like to understand. What's the name of the company? In the notice of meeting, Thierry Gadou signs the address by the Chairman of the -- the Chairman, the CEO, but did you change the corporate name? Is it Vusion S.A.? I have not seen a resolution to that effect. What's the name of the company? Is it Vusion Group?

I think you'll find it in the annual report. The company name is Vusion.

There has been a change or maybe this is simply the trademark?

No. The brand is Vusion and the name of the company is Vusion Group. Just a slight difference between the brand, which is simpler to pronounce than the company named Vusion Group. I hope that answers your question.

We're a little pressed for time. One last question.

Chairman, good morning retail shareholder today. We're in an environment where inflation is on the rise, is that a strength for Vusion or is it a headwind? We'll maybe see that for people, greater need to adjust prices.

And the second question on the prefinancing of Walmart, when there are shareholders, usually, there are resolutions that are planned for financing if the Board decide then banks that can finance if need be for loan financing. And so the Walmart warrants, I mean, those schemes are they going -- we're going to see more of them? Or is it just exceptional and will end?

So on inflation. Yes, it's a tailwind. Historically, inflation has always been a factor accelerating the adoption of electronic labels because it increases the frequency of price changes and it becomes very difficult to do manually in stores. So we see that inflation has always been promising on prefinancing.

Well, there are two things on prefinancing. There's one fact that it's unique, which is that so as to develop the volume of electronic labels that Walmart wanted to establish in its store, we needed to have a production capability, and that production capacity was fully funded by Walmart that's finance that's supported by Walmart that's not set to be replicated, which is essentially driven by the need to produce a very large number of labels in a short space of time.

Another factor linked to Walmart, which down payments on orders. Every time we sell hardwood, the commercial policies aimed at asking in the form of a down payment from the client. The case of Walmart since it's a very big order it generates down payments that are very significant. And so Walmart doesn't differ that is to have these down payments every time hardware is ordered.

Thank you. Thierry, let's move on. A vote on the resolutions. We have 27 resolutions that we need to vote upon. Feel free to come and talk to you over lunch, if you have additional questions. Handing over now to Morgane Le Puil.

Thank you, Chair. The final quorum has now been established. Shareholders present represented or voting by correspondence hold 12,535,853 shares, representing 75.37% of voting rights. We may, therefore, proceed with a vote on the resolutions. Before doing so, we'll show you a short film to explain how to use the electronic voting devices that were distributed to you upon arrival.

Dear shareholders, the voting device trusted to you is strictly personal. The number of votes that you hold or represent has been uploaded to the device and displayed on the screen. The only buttons you need to use are these press green to vote in favor of resolution, press yellow to abstain and press red to vote against the resolution.

You get to vote on each resolution as soon as they've been summarized. And you will hear, please vote. On the screen, you will see a rectangle that will show you how much time you have left. Once time run out, you will hear times up. This means you can no longer vote. The results will be displayed on the screen, a couple of seconds after the voting ends. During the vote, please turn off your cell phones. And please return the voting devices as you exit this room.

Resolution 1. Approval of the parent company financial statements for fiscal 2025. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 2, approval of the consolidated financial statements for fiscal 2025. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 3, allocation of profit for fiscal 2025 and determination of the dividend. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 4, approval of two related party agreements. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 5, ratification of the co-option of Lyne Castonguay as a director. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 6, renewal of Lyne Castonguay's term of office as director. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 7, renewal of Thierry Gadou's term of office as a Director, please vote.

[Voting]

Time's up. Resolution carried. Resolution 8, renewal of Mr. Cenhui He's term of office as Director. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 9, renewal of Mr. Peter Brabeck-Letmathe's term of office as director. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 10, renewal of Franck Moison's term of office as Director. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 11, approval of the information relating to corporate officers' compensation. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 12, approval of fixed variable exceptional components of the total compensation granted to the CEO. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 13, approval of the directors' remuneration policy for 2026. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 14, approval of the Chairman and CEO's remuneration policy for 2026. Please vote.

[Voting]

No more voting. Resolution approved. #15, authorization granted to the Board to trade in the company's shares. Vote now.

[Voting]

No more voting. Resolution approved. Resolution 16, authorization to reduce the share capital by canceling treasury shares. Vote open.

[Voting]

Vote over. Resolution approved. Resolution 17, delegation to the Board to increase the share capital through capitalization of reserves, retained earnings or share premium. Please vote.

[Voting]

No more voting. This Resolution is passed. Resolution 18, delegation of authority of the Board to increase the share capital with maintenance of share preferential subscription rights. Please vote.

[Voting]

No more voting. Resolution adopted. 19, delegation to the Board to increase the share capital without PSRs public after with the mandatory period of offering. Please vote.

[Voting]

No more voting. Resolution passed. Resolution 20, delegation to the Board to increase the share capital without PSRs with a priority period that is optional. Please vote.

[Voting]

Vote over. Resolution passed. Resolution 21, delegation to the Board to increase the share capital without PSRs through private placement. Please vote.

[Voting]

No more voting. Resolution approved. Resolution 22, delegation of authority to the Board to increase the share capital, giving access to equity securities to contributions in kind. Please vote.

[Voting]

No more Voting. Resolutions approved. Resolution 23, delegation to the Board to increase the share capital with waiver of PSRs through participants of the savings plan. Please vote.

[Voting]

No more voting. Resolution is rejected. 24, Authorization to grant free existing or newly issued shares. Please vote.

[Voting]

No more voting. Resolutions adopted. Resolution 25, amendment of the terms of the warrants issued to Walmart to allow their exercise through the subscription in the event of an exercise of those. Please vote.

[Voting]

No more voting. Resolution is approved. Resolution 26, concerns the environments of articles concerning director's terms of office. Please vote.

[Voting]

No more voting. Resolution is passed. And last, resolution 27, powers for formalities. Please vote.

[Voting]

No more voting. Resolution is approved. Thank you.

Thank you, Morgane. Thank you all for participating in our Annual General Meeting. Let me remind you the three main messages, 2025, an extraordinary year, driven by innovation, industry-leading outstanding operational execution, strong financial [ discipline ]. Second, we continue our journey of profitable growth in 2026. And the period ahead very attractive medium-term prospects for our group.

Physical stores returning to the center of omnichannel retail transformation and Vusion is at the forefront of that transformation and apologies because I made a huge blunder here. No -- the coffee -- sorry, see you for those interested. I'd invite you to join us in two weeks' time at VivaTech, Europe's leading tech event taking place here in Paris from June 17 to 20.

It's an outstanding VivaTech this year. It's 10 years of VivaTech so there will be great animation around technology and very -- will be at a very central stand presenting all our innovations that you've heard about today. And I look forward to welcoming you and there'll be refreshments. Thank you all for your attention. [Foreign Language] Paris Expo. Thank you.

Good day, and thank you for standing by. Welcome to the Vusion First Quarter 2026 Sales Webcast and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to Olivier Gernandt, Vusion's Investor Relations Officer. Please go ahead.

Thank you very much, Nadia. Good afternoon, good morning, everyone, and welcome to our first quarter 2026 sales presentation. With me today are Thierry Gadou, our Chairman and Chief Executive Officer; as well as Thierry Lemaitre, our Deputy CEO, Corporate and Finance. Thierry Gadou will make some remarks on the group's operational highlights, Thierry Lemaitre will then discuss our group's financial performance and more specifically our 2025 consolidated accounts, and Thierry Gadou will conclude our presentation with some remarks 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 our 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.

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

Thanks, Olivier. Good afternoon, good morning, everyone. Thanks for joining our conference call. I'm very pleased to present along with Thierry Lemaitre, our commercial performance for the first quarter of the year. So in summary, we delivered 26% organic growth in Q1, reaching EUR 294 million in adjusted revenue. At constant foreign exchange rates and tariffs, this would be a 36% growth and the actual IFRS revenue reached EUR 289 million. Now it's very close to adjusted figures and up 34% year-on-year.

Order entry reached EUR 316 million. VAS revenues grew by 53% at EUR 51 million, representing 17% of total sales, and our annualized ARR is above EUR 110 million, up 60% year-on-year. And we reiterate our 2026 guidance of continued profitable growth.

So a year that started on a strong positive note. The first quarter confirms our strong commercial momentum, as I just said, plus 26% growth of adjusted revenue, plus 34% growth of IFRS revenues and plus 36% growth at constant dollar and tariff rates. Our growth is solid. Our business reflects increasing demand from retailers to digitize their stores and put them at the core of their omnichannel strategy.

Both large regions are growing. In America, the accelerated rollout of EdgeSense at Walmart is very successful and is expected to reach peak deployment pace over the next 2 quarters with full fleet completion expected by the end of this year. This project is accelerating Walmart's e-commerce growth and improving key operational metrics, productivity, planogram compliance, employee customer satisfaction. It demonstrates at a very large scale the value of our technology platform in terms of operational performance improvement and e-commerce acceleration.

In parallel, several other leading-edge innovation projects are underway with Walmart alongside the start of their international rollout expansion.

For the market, this is -- this deployment is an impressive showcase, which is having a massive influence on the industry's strategic thinking about the future role of stores at the heart of omnichannel. And in the U.S. particularly, significant activity is underway around a growing number of pilots, which are now mostly focused or refocused on the EdgeSense platform and on VusionOX Bluetooth-based infrastructure, which allows, as you know, the shelf to interact with nearby shoppers and associates. We see great future potential here. The U.S. market remains relatively underpenetrated, 15% to 20%, including Walmart, and is expected to ramp up rapidly in the coming years, catching up with Europe.

Speaking about Europe, growth is back in the EMEA region. Sales grew by nearly 10% and are expected to accelerate in the coming quarters. The modernization and the further penetration of our large customer base, plus all the new contracts signed in recent months, notably in France, the United Kingdom, Germany, Spain, are supporting robust growth trajectory, particularly driven by the U.K. Although the DACH region, so Germany, and German speaking countries remain the largest subregion for Vusion. As I said, the momentum should strengthen over the next quarters and European growth is expected to exceed 20% for the full year.

Talking about order entries, global order entries totaled EUR 316 million in Q1. It's a minus 40% below last year's Q1. We expected the comparative basis to be challenging this quarter because last year Q1 was our absolute record -- historic record quarter with over EUR 0.5 billion in new orders in only just -- in only 3 months. But this Q1 is still our second best first quarter ever and fully in line with our expectations.

Also at the end of Q1, our 12 months cumulative order entries are at a solid EUR 1.5 billion. Key contracts announced in Q1 include Carrefour and Walmex. However, note that the Walmex numbers are not included in the Q1 order entries of the group.

So as a reminder, on February 18, Carrefour, one of the world's leading retailers and Vusion announced a signing of a strategic partnership. As part of its 2030 strategic plan, Carrefour has selected Vusion to digitalize all its hypermarkets and supermarkets in France. This partnership covers the deployment of EdgeSense, VusionCloud and Captana in France first, but with a 3-year exclusivity in Europe, and we are already starting pilots in other countries.

And then at the very end of the quarter, on March 30, Walmart expanded its strategic partnership with Vusion to deploy the EdgeSense platform in Mexico, which is Walmart's first market outside the United States, across Walmex Express stores and Supercenters. This expansion reinforces the deep and global partnership between Walmart and Vusion, which will continue to expand now on several geographies, several solutions and innovation projects.

Talking about the VAS activity. VAS revenue reached EUR 51 million in the first quarter, representing a strong growth of 53% and representing approximately 17% of the group's total revenue, a significant increase compared to the 14% in the full year of '25. Nonrecurring VAS increased by 45% to EUR 23 million. But the VAS growth was even more driven by recurring revenue growth, which reached EUR 28 million, up sharply by 60% compared to the first quarter of '25, and driven by the strong momentum in VusionCloud.

The VusionCloud installed base grew significantly in the first quarter, reaching over 400 million ESLs. For reference, last year, at the end of March '25, the cloud installed base stood at 188 million connected ESLs. This momentum is expected to continue throughout '26.

Also note that in Q1, for the first time, Captana order entries reached several tens of millions of euros and acceleration perspectives are becoming clearer as IoT and AI-based real-time shelf monitoring is emerging as a growing need among retailers to optimize inventory, availability, e-commerce and customer satisfaction.

With this strong start of the year, the rapid growth of our VAS and a highly promising project pipeline in both Europe and the Americas, we are confident in our '26 targets and our medium-term growth outlook. Annual adjusted revenue growth is expected to be between 15% and 20% at constant exchange rates and tariffs. Adjusted revenue should be relatively evenly split between the first and the second half, both around EUR 800 million to EUR 900 million. And both the EMEA region and the Americas and APAC regions are expected to grow over the full year, with momentum set to strengthen in Europe -- throughout the Europe. The rest of the world is expected to see stronger growth in the first half than in the second due to the completion of the Walmart rollout in the United States by the year-end.

Total VAS revenue is expected to increase by around 40%, representing a growth roughly twice that of the group at the top line. This performance will be driven by strong momentum in both recurring and nonrecurring VAS. The group also targets improved profitability with adjusted EBITDA margin expected to increase by more than 100 basis points.

Finally, we target increased operating free cash flow generation and a strong balance sheet at year-end with a positive net cash flow, excluding the possible impact of potential acquisitions.

Looking further ahead, given our innovation leadership, our substantial project pipeline and the growing market demand, we stay focused on achieving the ambitions outlined in our Vusion '27 plan presented in November '22 and are very confident in our medium-term growth prospects.

I will now hand over to Thierry Lemaitre for an additional information on our full year '25 financial results.

Thank you, Thierry. So the Board approved today the final 2025 consolidated financial statements, which includes an additional EUR 58 million income compared with a set of figures presented on the 26th of February. This EUR 58 million are an unrealized exchange gain that were not recognized in the P&L. It turns out yet that even though it is an unrealized, therefore, potential and [ noncash ] profit, we have to book this positive impact in the consolidated P&L, which we did in the final version of the 2025 audited financial statements approved today by the Board of Directors. This EUR 58 million entry has only impacted the financial income and the net income in the financial consolidated statements. And since it is unrealized, it has, of course, no impact on cash.

The [ URD ], including the audited consolidated and statutory financial statements approved today by the Board will be available on the company website next Monday.

Thank you, Thierry. And I think we can now move to questions. So we'll take your questions now.

[Operator Instructions] And now we're going to take our first question, and it comes line of Hugo Paternoster from Kepler Cheuvreux.

Can you hear me?

Yes, we can.

Great. I will have a couple of questions. And the first one is just on Walmart, on the U.S. perimeter. I did not had in mind that the rollout was expected to end this year, if I understood correctly from your press release. Would it -- what would it mean? Is that Walmart is more in a rush to roll out more of its store for this year? And you had that in mind when you build your 2026 guidance, it will be my first question?

Yes. We -- well, we -- I think we said that in -- or we wrote actually that it would be completed this year or by the beginning of '27. So there is always an uncertainty. Doesn't depend on us exactly when the -- given the holiday season imperative, we sometimes are uncertain about exactly whether it's going to end in January or February or November or before Christmas. So there was an uncertainty, but we had in mind -- we have in mind when we built our guidance that the intent of Walmart is to go in this project as fast as possible. And so we were, let's say, being relatively prudent because it doesn't all depend on us, but we were anticipating this.

Okay. Okay. So now you are potentially more view that it will be done all the remaining part for 2026. And if I remember correctly, at the end of last year, you had already -- you were already at 50% of this -- of the total value of this contract, correct?

Yes. I don't...

We had delivered approximately 50% of the stores.

Yes. Okay. Okay. Another question is still on Walmart, most likely on Walmex. You have announced a win there. Just wonder where are you in term of discussion for super express for the Bodega -- for the supercenter, excuse me, and the Bodega shops there? Can you provide some color on it and the level of discussion whether potentially it can include some computer vision and this kind of stuff?

Yes. So on Walmex, I think we try to clarify it. So the agreement right now includes the rollout of the express stores and the supercenters in the country. And we are also running a pilot on La Bodega, which is another format of smaller stores, but there are many of them. And so this will be decided after that pilot because pilots have been done on express and supercenters we wouldn't get on Bodega. So we are currently in the process of doing this pilot on La Bodega. So there might be a further announcement in the future, but I have no visibility on that yet. But right now, it's express and supercenters.

And right now, it's the EdgeSense platform, let's say, as in the -- with the similar functions and -- functionalities as in the U.S. And if we move to rolling out and finalizing CV solutions in the U.S., it will probably -- generally speaking, the platform will be relatively -- the intent is to have a homogeneous set of functionalities and platform throughout the group. So it should be also coming to Mexico later on.

Okay, okay. And the supercenter will be also deployed in 2026, and I believe it will last again in 2027 and potentially beyond?

Yes, yes. We have not yet a detailed planning. So it will be around -- across '26 and '27 for express and supercenters.

All right. Understood. And final question is on the rate of growth for Europe. I think you said that in the call early, but I missed it. What is your expected rate of growth for EMEA for this year?

Above 20%.

Above 20%.

We said basically, we're starting with 10% this quarter, but that the momentum should accelerate over the year.

Okay. I understand. So I believe that on your guidance, it will be mainly EMEA that will make the variable to reach between 15% to plus 20%, is that correct?

Europe will grow faster for once, will grow faster than America. But I think we said that both regions will grow.

Now we're going to take our next question, and the question comes from the line of Xavier Le Mene from Bank of America Securities.

Two, if I may. The first one actually on Carrefour. Can you potentially give us a bit more color on where you are because the partnership was announced in February, but have you started to deliver some of the stores? And what is potentially the plan for '26 and beyond '26 with Carrefour that would be quite helpful. The second aspect is on the U.K. So you started and you signed a lot of contracts last year in the U.K. So can you tell us potentially how big the U.K. was in Q1, and what you're expecting going forward? And should we expect Morrisons, Co-op and the Asda that to be all in 2026? So is it going to roll out into 2027 too? That will be my 2 questions.

Okay. Well, Carrefour is just -- the project was just signed in February. So we are not starting the rollout. You have some manufacturing lead times and a number of things to prepare when you prepare a big rollout in these many stores. So the rollout will take place over the next years. I think Alexandre Bompard, the CEO, was very clear publicly that he wants to go fast and certainly not wait until the end of 2030 because this was announced in the 2030 strategic plan. So we said that, and so we think it's going to take place over -- starting this year in H2 and then continuing in '27 and '28. And there is a large scope, full scope in France, and then there is an exclusivity in Europe. We're starting pilots in other countries. So it's going to be developing over the next years, and it's starting -- it will start in -- slowly in H2 and then accelerate in next year.

Sorry, and the second question, sorry. Yes, about the U.K. Yes, we -- as you said, I mean, last year was -- we signed a significant amount of contracts, there is Co-op, there is as Morrisons, there is Asda Express. And so these projects are entering in deployment phase and this will continue over this year and next year. So it's also going to be across those next 2 years. So -- but it's starting, and it's is going to accelerate. And so it's a good momentum. As I said, U.K. is the fastest-growing region in Europe. It's not the biggest one. DACH is the largest subregion in Europe, but U.K. is the fastest growing, which is logical because they were, in terms of adoption, lagging behind. They really started the momentum, I'd say, 2 years ago. So it's a very fast adoption, but we will -- we're expecting, generally speaking, this kind of pattern that the countries that are coming later will actually catch up with the most advanced country in terms of adoption, much faster than obviously the pioneering countries.

Now we're going to take our next question, and the question comes from the line of Baudemont Flavien from Bernstein.

I have 3 questions on my side. The first one is, can we please have more detail on the phasing of Walmart deliveries this year? I think that deliveries were a little bit softer this quarter versus the previous one. So I guess it's fair to assume that we're going to have an acceleration going forward.

For the second question, we know that you do not comment on customer basis, but can you give us more detail on the contribution of Carrefour orders within the Q1 numbers?

And the third question, can you also comment on your recurring VAS revenue? Is the growth mainly coming from new cloud connection and pick-to-light functionalities? Or is there a meaningful contribution for Captana this quarter or by the way new order VAS services?

So regarding Walmart, you're right. There was strong deployment until the very end of the year. And so there is a bit less in Q1. I think I mentioned that Q2 and Q3 are going to be very strong. And so -- and it will then phase out during Q4. And so that's the peak. So yes, we see an acceleration in Q2 and Q3, which are going to be the peak in terms of rhythm of deployment. That's why we mentioned that H1 and H2 are going to be roughly around EUR 800 million, EUR 900 million in this ballpark both of them, which means that obviously, by difference in H1, you can see Q2 is going to be a very strong quarter, and that's driven also by the peak.

Regarding the Carrefour, we -- well, we don't talk about order entries number or revenue numbers by customer. The recurring revenues are driven -- I think you can see the really strong momentum in the adoption of our cloud platform, which includes several functionalities and that is obviously managing price promo, managing pick-to-light, stock-to-light and other functionalities. But overall, this is included in the what we call the VusionCloud platform. There are different products and different features, but this is -- and I think we mentioned that at the end of Q1 last year, we were below 200 million cloud-connected labels or cloud-managed ESLs. And at the end of this year, we are -- at the end of Q1 this year, we are at 435 million or at least way above 400 million. So the momentum is really strong. And that's the main driver of our recurring revenues.

Right now, Captana is more at the stage of taking up in -- taking off, sorry, in the order entries, so not yet visible in a very -- strongly in the recurring revenue because you have to always install infrastructure first and then the recurring revenue comes later. So it's not -- it's essentially the contribution of the cloud platform that is delivering this impressive growth in ARR.

Okay. Maybe just a follow-up on the last question on Captana. Are we going to see a pickup in Captana's revenue this year? Or are we going to wait for next year?

We see a -- I mean, as I said, we are -- this year, we are -- I think you mentioned last in February -- at the end of February, I mentioned that we would be installing about 100,000 to 150,000 AI cameras, and that this quarter, for the first time, we have significant orders. So we will see revenues in Captana take off this year. And I think in order entries it's not finished. We will see also -- we expect at least a strong dynamic in order entries in Captana and a very visible takeoff in '27 in both sort of infrastructure revenues, camera revenues, but also the recurring revenue.

So it's a very positive momentum we see, and we're extremely sort of positive on this market and on Vusion's position in this market. We see Vusion AI and real-time shelf monitoring enabled by IoT and AI as a very strong need, increasing need of retailers to optimize inventory and availability and also to accelerate store fulfilled e-commerce. So very strategic growth we believe that Vusion AI is the next big unlock in the store digitalization. And that Vusion is very well positioned to be successful in this market.

Now we're going to take our next question, and the next question comes from the line of Valentin-Paul Jahan from Stifel.

Do you hear me well?

Yes.

My first question would be on Captana. Is it possible to get more granularity on the order intakes currently? Is it more concentrated on a few big customers? Or is it split among multiple smaller clients?

And the second question would be about the fact that you reiterated your ambitions for the 2027. And I just wanted to have your feeling about the, yes, the [ latent ] phasing of order intakes to come in the next year -- in the next, sorry, quarter to [ bridge ] the EUR 2.2 billion revenue that it implied in 2027 and the revenue that you -- in the order intake on a 12-month rolling basis that you currently have? This is first Q1. I mean it implies if my calculation are correct, around -- on average around EUR 600 million of order intakes on average for the next 3 quarters. So just to get a view on if it's more coming on Q2, Q3 or Q4 for you?

Very, very good question. Thank you. So the first question is -- so Captana order entries are coming from a few large orders. And obviously, we know that on 18th of February, we signed a significant partnership with Carrefour, which includes the rollout of Captana. So you must -- you probably have not have noticed at this point, so it's part of it, but there are other. And there are -- it's spread across, I would say, 10 serious customers, but there are a few larger orders in this ballpark number that we gave, a few tens of millions of euros of order entry. So it's spread across a few retailers. So 10, 2 or 3 are larger, obviously, it's always the same case. And there are many more which are more at -- still at pilot stage so represent small order entries, fragmented because at this stage, but there are many more starting in the pilot. So that's how it's structured. And so there is also the Walmart pilot expansion, et cetera.

So regarding '27, yes, I think you're absolutely right. We expect to continue to have a strong momentum in order entries this year. We have a strong pipeline for the rest of the year and onwards. We expect to grow our order entries and to certainly -- I mean you mentioned the number. And over the next 3 quarters, we expect to be over that number and to be essentially growing our full year '26 order entries compared with last year. And we are, yes, still targeting to reach our '27 ambition.

We see also a driver of this momentum should be the acceleration of VAS order entries. That's a very important component of our business model, of our strategy, and this should be much more visible this year and preparing for an acceleration in '27. So that's an important part of our -- of the way we build it. So it's true that the acceleration of the Walmart rollout has pulled in some revenue from '27 to '25 and '26. This is true, and it's making the target a bit more difficult to reach. But based on our pipeline, based also on the -- on what I just mentioned as this additional driver of the acceleration of VAS, we still consider, and this is our target to reach our ambition in '27, which is an ambition we set ourselves 4 years ago. So it's some time ago, but we still see this really possible based on our pipeline and on the market demand.

Now we're going to take our next question, and the next question comes from the line of Laurent Gelebart from BNP Paribas.

Three questions. So the first one relates to the guidance. As you are basically going to deliver [indiscernible] this year versus heading in [indiscernible] in Q1 2027, why haven't you been upgrading the guidance for the currency fiscal year? That's the first one...

Sorry, Laurent, I'll stop you because, Laurent, I'm sorry, I stopped you because we can't hear you well. I mean at least here in the room, we can't hear you.

Okay. So, yes, I am in an airport, so it's not [indiscernible].

I understand.

My first question is...

Okay. [indiscernible]. Yes.

Yes. The second question is, can you help us to understand why in terms of the funding for the CapEx line you received EUR 311 million, but you have been spending only EUR 221 million whereas the CapEx line are all up and running. So the EUR 90 million difference between the 2?

And the third question is can you help us on the accounting mechanics of the revenue recognition coming from the nonrefundable CapEx funding from Walmart? Or is it fair to say that basically what you recognize as turnover is carrying 100% gross margin?

I'll take the first one. I'm not sure we understood the third one, but we will come back to you just -- so there is no upgrade on the guidance. I think we confirm our guidance as basically 15% to 20% at constant rate and exchange rate and tariffs. It means that roughly this year, we are considering -- we said at this level, we are considering about 2 halves, which should be roughly equivalent, EUR 800 million, EUR 900 million both. It's not more precise at this stage, obviously, but that's giving us the EUR 1.7 billion to EUR 1.8 billion. But again, this is -- there is no change in the guidance because we are considering our -- Q1 is on plan for us. So we were -- I think there is no reason in the Q1 for us to change. We see the year exactly as we unfold. We give an additional information here with the breakdown between H1 and H2. And I will hand over maybe to Thierry for the second one, which is a bit more, yes, financial.

Second was about the funding, the $320 million that you're referring to are in dollars, the EUR 210 million are in euros. So there is already a change in the currency. And on top of that, the funding by Walmart was already including the cost for the maintenance that we're going to incur over the full period of the lifetime of the project. So the EUR 210 million, that's just the picture as of the end of 2025. But it doesn't mean that we have already anticipated all the costs deriving from the operation of the lines. On top of that, it has always been very clear with Walmart that we had set a price per line. If the cost has exceeded the price per line, it would have been on us. If we succeeded in better managing the overall cost, that would be some kind of an upside for us. So that's the situation on the line.

Second topic, do not mistake the funding and the recognition of the revenues. Walmart is funding the lines, but then we charge Walmart for a full costing approach, including, of course, the amortization or the usage of the manufacturing line. So we don't said that portion of [ orders ], which is we've charged with a certain level of margin and then the invoicing of the manufacturing line with 100%. That's the totality of the cost and then the totality of the revenues, including, of course, a recharge of the manufacturing line. So no, we don't have 100% margin on the manufacturing line. That's not the proper way to analyze the situation on Walmart.

Now we're going to take our next question, and the next question comes from the line of Aurelien Sivignon from ODDO BHF.

I have a couple of follow-ups. First on revenue phasing. So you are guiding between EUR 500 million and EUR 600 million of revenue in Q2 stand-alone. Just to make sure I understand correctly. So can you confirm that the step-up in Q2 versus Q1, is it only related to the phasing of the Walmart rollout? Or are there, let's say, other material rollout expected to ramp up in Q2?

Then on Walmex, should we expect the order intake for supercenter to be recorded in Q2 or rather later in the year? And last one, still on Walmex. Could you say maybe a few words on the potential with the Bodega format, I mean in terms of size and also timing decision maybe?

Thank you, Aurelien. Aurelien, could you repeat the first question? I'm not sure I completely got it. The sound was not really good and...

Yes, sure. So you -- so if I understood correctly, your guidance for Q2 stand alone is for revenue between EUR 500 million and EUR 600 million, so -- which is, I would say, much bigger than the Q1. And just to make sure I understand correctly, is it only related to the phasing of the rollout with Walmart? Or are there any other rollouts that are expected to ramp up in Q2?

No, it's both things. It's also the momentum in Europe. It's an acceleration of the sort of deployment in Walmart, but it's also the momentum in Europe. We said that the momentum in Europe would be, let's say, intensifying over the quarters this year. And so it's really both. And the second quarter is going to be strong, but with growth in both regions.

And then the second, regarding Walmex, yes, the answer is yes. It should be in Q2. I can't answer your question about the Bodega. I think it's better to wait until we finalize the pilot because then we will know, well, first, whether the ROI makes sense and Walmart goes on with the rollout in Bodega. And then we'll see also what kind of solution set would be chosen for the stores. So it's a bit -- it's not -- we're not ready to make an answer on this. We're more at pilot stage. But yes, the order entries will be in Q2 for this Mexican project, yes.

Now we're going to take our next question, and it comes from the line of Xavier Le Mene from Bank of America Securities.

I've got some remaining question. Just looking at your sales, your revenues back to 2020, 2021 and 2022, which means 5, 6 years ago. How much of that can we potentially see coming back? What I mean is there old customers renewing and going for the new technology 5, 6 years after signing the contract? And you had about EUR 1.3 billion of sales, if I aggregate these 3 years. So is there something you can comment there? Or what should we potentially expect going forward in terms of all clients coming back 5, 6 years later?

Yes. Well, first, it's a very good question and a very important aspect of our business. In fact, it's -- there is a lot of repeat business with our customers. We are having regular swaps and upgrades because since we innovate a lot, a swap is never a replacement, it's very often an upgrade. And that happens depending on the retailers every 6 years, 5 years, 7 years, it depends a lot -- I mean, depends on the appetite to upgrade precisely and to take on new technologies, new features. And so yes, we consider that in a market where there is a lot of already installed -- strong installed base, like particularly in Europe, we will have a growing part of our business, which will be renewals and upgrades on our installed base. And on top of that, we have, of course, the development of our customer base, so -- which is the increasing penetration on our customers because they are not yet fully equipped far from that. It's -- in average, it would be somewhere around 50% penetration.

So there is a lot of renewals. And in a market -- in the most mature market, where we are past 50% adoption, 60% adoption, there are some even markets in which we are -- the penetration is higher. We have a strong component of renewals in our ESL sales. So it will be an important -- and it's true that we have acquired many new logos in 2018, 2019, 2020, '21, and those are going to fuel also the momentum. And already, if you think about the case of Carrefour typically, Carrefour is also a player that had already previous generations of ESL are moving to a new generation and renewing its stores. It's a perfect example. And there will be many large retailers in Europe in this situation in the coming years.

There is no way you can quantify how much renewal you get from these old contracts, kind of percentage of, I don't know, 50% of the customers renew it after 5, 6 years or something like that?

Well, I mean if you take an average of 6, 7 years, you can basically derive an average of saying you have an installed base of 10,000 stores or 50,000 stores, and you can derive the number of -- percentage of the installed base that is renewed every year. So it's quite an easy calculation to make. But obviously, that part of renewal will grow. And in the next 5 years, it's probably going to be a very significant, if not -- in some markets, it's going to be more than half of our market will be renewals. And there is not so much churn in this market. We have roughly relatively loyal customers who stay with us because we innovate a lot and so they -- so you would have to go into much more detail account-by-account sort of list to be more specific. But I think I gave you relatively precise rules to -- or indications to calculate it.

And now we're going to take our last question for today, and it comes to line of Gill Crespel from Alizes.

Congratulation especially on the VAS side, which is quite -- both the good news and good thing for the future. My question was very short ones on confirmation. Thierry mentioned that about 60% of Walmart stores were rolled out. I just wanted to clear that this was including all phases, both Phases 1, 2, 3. So approximately the total overall should have been something like 4,600 POS. Is that correct?

Well, the 4,600 stores is correct. I think that this is -- and the fact that it's going to be covered at the end of the year is correct, too.

Thierry mentioned that 60% of the stores had been delivered. Is this correct?

You mean -- when did he -- I mean we haven't communicated this...

Earlier in the conversation, in the first -- as an answer to the first question, I think Thierry mentioned that 60% of the Walmart stores have been delivered. That's why I was keen to confirm.

I said approximately [ 55 ], not the [ 60 ].

Sorry, I didn't get the answer.

I said approximately [ 55 ] at the end of '25.

At the end of '25. And my second question was on the order intake. I think that was our beloved CEO, so the other Thierry, who mentioned the order intake was a bit disappointing in the first quarter, but was the second best in terms of last 12 months. Did I understand it correctly because it didn't match my computation?

Yes. No, absolutely, I didn't say that. I said precisely that Q1 -- I didn't say it's disappointing. I don't think I said that. It's...

No, no, I did. I did.

Okay. No. Well, sorry to disappoint you, then. But the reality is what I said is that it is below and actually 40% below last year's Q1. I just mentioned that last year's Q1 was an exceptional high quarter, EUR 0.5 billion in just 1 quarter. So it was a difficult comparison basis to -- let's say, to match this quarter. That's what I said. And I said, yes, it is in line with our expectation, and it is the second best Q1 in our history, the second best Q1 one in our history because there is a bit of seasonality. So I mean, second best Q1. So although this is the best Q1 by far, it was last year Q1 because it was EUR 0.5 billion in just 3 months. And that's the second best Q1. That's what we said. And it's true.

Okay. Very clear.

And I said -- and then we said that the 12 months accumulated was EUR 1.5 billion.

Yes, which is more or less what I have.

Yes. Yes. Thank you, Gill. Well, thank you, everyone. So we'll -- we wish you a good end of day. Good evening, and we will now actually see each other for the Q2, basically, and in the meantime, for some of you, surely for the General Shareholders' Meeting on June 4. And so with this, I wish you a good evening. Thank you, and bye-bye.

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

Good day, and thank you for standing by. Welcome to the Vusion [indiscernible] Full Year 2025 Results Conference Call and webcast. [Operator Instructions] Please be advised today's conference is being recorded.

I would now like to hand the conference over to Olivier Gernandt, Vusion's Investor Relations Officer. Please go ahead, sir.

Thank you very much, Nadia. Good afternoon, everyone, and welcome to our full year 2025 results presentation. With me today are Thierry Gadou, our Chairman and Chief Executive Officer; as well as Thierry Lemaitre, our Deputy CEO, Finance and Corporate. Thierry Gadou will start with some remarks on the group's business performance and operational highlights. Thierry Lemaitre will then make some comments on our financial performance, and Thierry Gadou 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. This evening's release was issued a short while ago and is available in French and in English on Vusion'swebsite, 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 also be made available on our website after the call.

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

Thank you, Olivier. Good afternoon. Good morning, everyone. Thanks for joining our conference call. And I'm very pleased to present to you along with Thierry Lemaitre, our excellent performance for the full year 2025.

So first, in a nutshell, we delivered over 50% organic growth in '25 and reached over EUR 1.5 billion in adjusted revenue, which is our target. Order entries reached EUR 1.7 billion, up 5% versus the record of 2024. Bus revenues doubled year-on-year to EUR 211 million, representing 14% of total sales. Our EBITDA increased by 73% and our EBITDA margin improved by more than 2 points to reach over 18% of sales. Operating income and net income also rose significantly. Our adjusted net income was close to EUR 100 million, with a very similar number for IFRS net income.

Our cash flow generation was positive and our financial structure is stronger than ever with EUR 480 million in cash and only EUR 40 million in debt -- EUR 41 million in debt. A strong balance sheet that gives us the means to pursue an ambitious growth and innovation strategy. After this exceptional growth rate in '25, we are forecasting another year of growth around 15% to 20% in '26, along with at least a 1 point, or 100 basis point improvement in EBITDA margin, and a positive operating cash flow.

Now if we look at the performance in a bit more detail. Thanks to another fantastic fourth quarter, we passed the EUR 1.5 billion mark in early sales, adding $0.5 billion in just 1 year in revenue, and with a 10-year CAGR of 30% per annum in top line growth. Long-term trajectory. Regarding VAS, i.e., software services and [ non-SL ] solutions VAS revenues doubled. As I said, driven by the strong growth in both recurring and nonrecurring services. In Q4, our VAS annualized recurring revenue reached EUR 105 million per year. Our cloud-based installed base has grown by over 200% in the last year, thanks to new rollouts. So new logos, and legacy customers accelerated migrations. And we passed in Q3 last year, the mark of 50% of our total installed base now fully managed in the cloud.

Order entries. In Q4, we booked over EUR 400 million of new orders. Our global order entries for the full year '25 reached an excellent level of EUR 1.7 billion, up 5% over the record [ '24 ]. The growth in other entries was concentrated in Europe, where several new logos were signed. As you can see, if you're following the -- I'm not mentioning all of them, but if you follow the slide show on the webcast, you can see them. So many new logos in the U.K., in Germany, in -- all throughout Europe in different verticals, and as well as obviously significant new orders from our large customer base, which is also a very strong driver of growth for us. So I'll come back on that.

If we stay on the performance by region, revenues in Europe still shows a minus 16% decrease in the full year. But the other entries have continued to grow. As I just mentioned, we signed many wins over the past few months. We continue. So growth will be back in '26. And with a much diversified and balanced revenue structure with a lot of VAS, obviously, new logos, and as I said, an excellent momentum and high revenues from our existing customer base as they extend their store coverage. We still have less than 50% in penetration at our customer base as they increase VAS adoption obviously. And as they begin to renew and upgrade their installed base in the coming years to [indiscernible]. So that's a big driver of growth.

Talking about EdgeSense. Obviously, the strong growth outside Europe is particularly driven by the intensive rollout of EdgeSense in Walmart in the U.S., which is now halfway through and running at full speed. The program is very successful and contributes to the impressive results of Walmart in the U.S., particularly to the stellar growth of in-store fulfilled e-commerce and to the improvement of the operational leverage of the company. This U.S. rollout should be completed in about a year in the U.S. We are working on several other solutions with Walmart U.S. which could become new rollouts in the coming -- for the coming years. We are also working intensively with Walmart on the international expansion of EdgeSense.

Obviously, this deployment confirms on a very large scale, the performance and the excellent performance of our EdgeSense platform, which has no equivalent in the world today for optimizing productivity, speed and accuracy in sales management tasks, on-shelf inventory monitoring and e-commerce fulfillment. We are proving that our platform enables much broader use cases and delivers much higher ROI than standard ESL solutions. We've announced in '25 a few partnerships involving EdgeSense, including [ DM ], a major Germany-based pan-European retailer. And of course, [ Carrefour ] I will come back in a minute about on [ Carrefour ]. Several other EdgeSense pilots are underway around the world.

Innovation has continued to be at the heart of our priorities in '25 with a 20% increase in our R&D investments. Advancing our powerful road map to make the store even more efficient, automated, data-driven omni-channel, and to turn the strong traffic into media dollars and to enable AI for both associates efficiency and shopper experience. We've worked in '25 on further enhancements on EdgeSense. We've worked also on new products around data, AI and retail media. We've just signed in the past few months, a few first deals with our newest retail media solutions, and that's a very promising avenue for Vusion, as it's a top priority for retailers today.

We've significantly worked and enhanced our Captana solutions portfolio from agnostic computer vision to ESL synchronized solutions and mobile solutions. We're achieving very promising results and are extremely confident on our technology Edge in this field in which we have invested heavily over the past few years. We see great traction. And '26 will be a year of acceleration of Captana, and we expect to deploy over -- well over 150,000 new [indiscernible] this year.

A perfect example of this overall momentum is the announcement of the Carrefour deal because -- it is the first large-scale deployment in Europe of EdgeSense, but also the first large-scale deployment simultaneously of EdgeSense and Captana, so our food platform. This partnership is significant because, as you could all see, it's at the core of Carrefour's 2030 strategic plan. And also because alongside the digital transformation of Carrefour's hypermarkets and supermarkets, Carrefour and Vusion are creating a joint innovation lab and are going to collaborate on new solutions to invent the future of retail together.

So we'll see now if we can -- and for those who can [indiscernible] on this Carrefour announcement, which is fairly recent, even though it has been essentially a lot of work in '25. You all remember that we had announced our partnership in June, starting pilots. And then I will hand over to Thierry for the detailed financial figures, so.

[Presentation]

I will now present the results for the year 2025. And as you are [ never accustomed ] to, I will present the main financial items under IFRS and in adjusted terms for certain IFRS adjustments that impact the accounting for the contract with our largest clients in the United States. The details of these adjustments are presented on the following slide.

But first, let's start by celebrating the excellent performance in 2025 with revenues increasing more than 50%, both in IFRS and adjusted terms, and standing at EUR 1.527 billion in adjusted terms. The adjusted variable cost margin increased by 60%, faster than sales, and reached nearly 21% of sales, an improvement of 1.6 points compared to the previous year. OpEx grew by 43% and represented [indiscernible] of adjusted sales, 0.7 points less than last year. This translates into a significant growth in adjusted EBITDA of plus 73% to EUR 277 million, which is an adjusted EBITDA margin of 18.2%, up 2.3 points compared to the previous year.

Depreciation and amortization also increased significantly mainly due to the last 3 manufacturing lines starting to get amortized in 2025. A lot of the first line, which started to get amortized in 2024. Adjusted EBIT more than doubled at EUR 164 million, reaching 10.7% of sales, up 2.9 points from the previous year. Overall, adjusted net income is close to EUR 100 million at EUR 98.7 million, up 6.5% of sales.

The following slide shows the main adjustment between the IFRS and the adjusted accounts. The nature of the adjustment has [indiscernible] remained exactly the same as last year. Two adjustments impact the revenue down to the net income, consisting year of, first, the amortization of the fair value of warrants conditionally granted to Walmart. The first effect is directly proportional to the sales generated by Walmart. It negatively impacted the IFRS revenues in '23, '24 and '25, and will continue to negatively impact the revenues in '26.

Second, the recognition in the IFRS accounts of the volume average selling price over the entire term of the contract. The second effect had a negative impact in '23 and '24, and started to reverse in Q3, 2025. It generated over the full year of 2025, a small positive effect which would be even higher in 2026.

Financial income is impacted by two restatements identical to those of the previous year. The first consisting of the revaluation of the fair value of the warrants, given the average share price [indiscernible] the last 6 months of 2025 compared to the last 6 months of 2024, and despite the decrease in the number of warrants remaining to be [indiscernible] this fair value increased by EUR 7.3 million compared to December 31, 2024, which translates into a financial expense of the same amount in the 2025, the IFRS accounts.

[indiscernible] adjustment of the intercompany between the parent company and the U.S. entity also impacts the IFRS accounts by plus EUR 48.7 million. These impacts, plus the [indiscernible] on these restatements totaled minus EUR 14.5 million impact on net income in 2025.

If we now go more into [indiscernible] starting with revenues. 2025 showed a 51% revenue growth in adjusted revenue, driven by the Americas and APAC region. Given the volatility of the euro-dollar exchange rate [indiscernible] Group revenues were negatively impacted for the portion denominated in dollars. At constant 2024 euro-dollar exchange rate, 2025 adjusted revenues would have stood at [ EUR 1.580 billion ], which is EUR 54 million more than our reported figures. VAS revenues increased twice as fast as group revenues, at plus 100%, driven mainly by [indiscernible] one-off revenues, but also by recurring revenues, which in Q4 reached EUR 105 million on an annualized recurring revenue basis.

On the following slide, adjusted EBITDA margin grew by 2.3 points of sales, mainly driven by the variable gross margin. And more specifically, by the revenue mix effect, and to a lower extent by a lower OpEx to sales ratio. Despite the significant impact on sales, the euro-dollar [indiscernible] impact was limited on the profitability. Financial income stood at EUR 29.5 million in '25, versus minus EUR [indiscernible] in '24. Before the IFRS impact that we presented before, the adjusted financial result was minus EUR 11.9 million in '25, of which minus EUR 11.2 million as a cash impact. This minus EUR 11.2 million are mainly driven by exchange losses due to the high volatility of the euro-dollar exchange rate. But more importantly, the fund [indiscernible] largely driven by cash investments stood at EUR 17.5 million in '25, versus EUR 4.7 million in 2024, thanks to a higher level of cash being invested, while the interest expense decreased from EUR 12.6 million to EUR 8.5 million, thanks to lower interest rates and the reduction in the financial debt.

CapEx. Total CapEx stood at EUR 137 million, compared to EUR 158 million last year. EUR 77.5 million were invested in 2025 with the manufacturing lines, prefunded by Walmart, and the last manufacturing line has been running at full capacity since Q3, 2025. The 3 other ones started earlier in H2 2024 and H1 2025. Hence, we now have 4 lines running at full capacity. Cash CapEx, corresponding to CapEx finance by the group, amounted to EUR 60 million in '25 versus [indiscernible], representing around 4% of adjusted sales.

Let's now have a look at the cash flow and the cash situation. At the end of 2024, the group shows a positive net cash position amounting to EUR 439 million, compared to EUR 393 million last year, which is a EUR 46 million increase. As mentioned previously, the operating free cash flow, defined as EBITDA minus [indiscernible] the group, grew in '24, as well as in '25, and should continue to grow in 2026. In 2025, improved by 83% compared to 2024. The free cash flow -- the total free cash flow was impacted by the increase of the operating free cash flow just disclosed, but also the consumption of the down payments collected and this negative impact will increase in 2026.

The investment in the manufacturing lines that were prefunded in '23 and '24, and by the tax expense of [ EUR 52.9 million ] compared to EUR 4.7 million in '24. And in '24, the group still had cash losses, which could be used to have a part of the taxable income. There was a limited amount of [indiscernible] left at the end of 2024, that the group could enjoy in '25. This is no longer the case at the end of 2025.

On top of these elements, Group proceeded with share buybacks, some acquisitions and collected EUR 73 million from the exercise by Walmart as part of their [indiscernible]. Also to be noted, the ForEx impact on the cash position in dollars, which is minus EUR 45.6 million.

To finish financial presentation, the Board decided to present at the shareholders' meeting to pay out a $0.90 dividend in '26, which would be a third consecutive increase since 2024. That's it for the presentation of the 2025 financial results, and I'll now hand over to Thierry Gadou for the outlook.

Thank you, Thierry. So for 2026, as I summarized in my introduction, and based on the strong backlog we have, and very strong pipeline, we anticipate further growth this year in spite of the exceptional acceleration of '25. And with an annual adjusted growth target of 15% to 20% at constant rates -- exchange rates and tariffs. So this is in line with our average growth trajectory of around 30% per annum since 2022 and, by the way, on a longer period too. This growth should be both benefiting Europe and the rest of the world.

Regarding VAS revenues, they are expected to continue to grow significantly around 40% [indiscernible] the -- or more than twice the top line growth and with strong performance in both recurring and nonrecurring VAS solutions and revenues. The group also aims to continue improving its profitability with an adjusted EBITDA margin of -- to grow -- expected to grow more than 100 basis points. And this increase in profitability will be accompanied by continued growth in operational free cash flow compared to '25.

And we are determined to keep for the group a very strong balance sheet, and a positive net cash position at the end of the year, excluding, of course, potential acquisitions. And that is this. So given the positive business momentum, we feel the book maintains its ambition that we had set ourselves in '22, for the Vusion '27 strategic plan. Also for your information, we should launch shortly a share buyback of EUR 30 million and the details of which will be communicated at the time of launch.

Finally, I'd like to say a word of the strengthening of our governance. The Board of Directors today co-opted [indiscernible] as an independent director. [ Lin ] will be replacing [ Canadas Johnson ] for the remainder of a term until the next general meeting of June 4, which will be then called to ratify this cooption and renew [indiscernible] term for a period 3 years. Mrs. Johnson, as you know, was no longer considered under the [indiscernible] rule independent, having served on the Board of Directors for more than 12 years.[indiscernible] be replaced by [indiscernible]. And I'd like to thank [indiscernible] Johnson for -- to have having brought considerable value to our company. I'm pleased to welcome [ Lin ] [indiscernible] our Board as so an independent director. It's to strengthen our governance and increase the proportion of independent members from 64% to 73%.

[indiscernible] is a Canadian and American National with more than 20 years of leadership experience, primarily in retail and consumer goods. She's held senior executive roles at Home Depot, [ Sobeys ] and Starbucks. She now also serves on the Board of [ Canadian Tire ], one of the leading retailer in Canada. And definitely her deep expertise in North America and retail will further reinforce our strategic capabilities in the region, which is, as you know, a key growth driver for Vusion.

With this, I'll hand over for questions.

[Operator Instructions] And now we're going to take our first question, and it comes to line of Hugo Paternoster from Kepler Cheuvreux.

I will have three questions, if I may. And the first one revolves around your guidance. You mentioned that the growth will benefit from both North America and Europe. Just wonder, I wanted to have a better view on what do you expect in terms of organic growth for Europe for next year?

The second one is on the working capital. How much of your, I would say, 2026 revenue is already prepaid and what working capital swing should we expect for next year? You could provide us some light on it?

And the last one is on Walmart. You mentioned that you are in discussion for potential additional rollout and potentially incremental cross-sell. Could you come back on it, whether it's for computer vision, if it's for international expansion, what does it mean in terms of timing, if you can share anything? And in terms of CapEx also. That will be my 3 questions.

Thank you [indiscernible]. For the first question on the organic growth. So yes, we see 15% to 20% growth this year. And we consider that this growth will be balanced between Europe and the rest of the world. So we see double-digit growth in all regions.

I think your question was particularly focused on Europe. We have won many deals in Europe. I mean, over the past few -- and we continue over the past few months, last year, and we continue to see how we started the year. So there is good momentum in Europe. So definitely, all regions will benefit from this growth.

And I'll let -- Thierry, maybe you have the working capital topic?

On the working cap, so the net between the down payments collected this year in '25, and the down payments that were reversed in '25 is roughly a positive impact of approximately EUR 20 million, EUR 30 million. And next year, that's approximately a bit more than EUR 400 million that should be reversed.

Yes. And the -- on the Walmart topic. Yes, I mean, Walmart is a very, very large company, obviously. You've seen the results last week. So it's a EUR 700 billion company, adding about EUR 40 billion every year. So its adding a big retailer every year, right, Walmart? So it is a huge company. And yes, we are rolling out. As you know, the infrastructure of EdgeSense right now in the U.S. So we're thinking -- we're working on different directions, and you mentioned them. We're working on new solutions on top of the EdgeSense infrastructure in the U.S., and that includes topics like computer vision and those things I already mentioned. But that's one dimension, there are other projects around e-commerce acceleration and around retail media.

And second dimension is, of course, we're working on the international dimension. And so that covers a number of countries. Some of them have been mentioned somewhere in the [indiscernible]. So we are working well doing this. And obviously, the fact that [ John Furner ] has been appointed Global CEO. And we think we want to expand the winning operating model is favorable. So we'll update you on this as we confirm rollout in the international part.

And then as I said earlier, when [indiscernible] is adding a pretty large retailer every year. In terms of numbers, we're adding $80 billion, $90 billion of revenue. So it's a big. There is also [ Sam's Club ] also part of the Walmart Group, which we haven't mentioned, but -- so there is -- many developments in this group. So it should remain a big customer for many years. And the partnership is extremely appreciated on both sides.

Now we'll take our next question. The question comes line of Aurelien Sivignon from ODDO BHF.

I have four. The first one is regarding the 40% [indiscernible] guidance for '26. Could you clarify the expected VAS mix between recurring and nonrecurring. And regarding the 150,000 cameras, I think you mentioned during the call, should this be treated as nonrecurring or recurring VAS revenue?

Then my second question will be the Carrefour contract. I believe Carrefour mentioned investment of at least EUR 150 million. So do you confirm this amount? And maybe could you walk us through the operational assumption? I mean countries cover and SKUs coverage, for instance, have also Captana if you may?

Then my third question. So you confirm the '27 target so far. On the revenue side, what makes you confident to more than offset the Walmart U.S. ramping down, I would say, from [indiscernible] does it imply that you are already seeing a clear reacceleration in order intake in the coming months?

And the last one will be on the [indiscernible] Could you say over what time frame should we expect it to be done?

Okay. Sorry, I didn't understand. Yes, so we -- so we're expecting -- so regarding VAS, we are expecting 40% growth this year. And we said it's going to benefit both -- and in a strong -- both strongly to recurring and nonrecurring. And I think it should even be maybe slightly the opposite as this year maybe recurring will actually grow faster. However, you mentioned -- and this includes, obviously, the growth at Captana. Of course, the growth in cloud services and many other things. But it will not include the, let's say, the hardware part of Captana. You mentioned the number of cameras that -- we mentioned a number of cameras. But those are not counted into recurring because they are not recurring simply. So [indiscernible] in recurring subscriptions. And that is not counted. So the -- so that's -- so it will be excluding these cameras.

So we just mentioned this number because it's just that Captana is -- we consider computer vision as the next big technology wave in retail. We're investing. We've been believers. We are very, very happy with the work we've done on many, many pilots, which are now reaching significant scale. And of course, the Walmart -- sorry, the Carrefour rollout. As I said, the first simultaneous full platform rollout of both EdgeSense and Captana.

You asked a question on Carrefour precisely. So I'm coming to that. The number that was mentioned let's say, [indiscernible] mention by us. It's a mention that it's a number that covers -- doesn't include the VAS, doesn't -- just includes France. The scope of the project is European will be starting first implementation also soon in Spain, and there are -- so it's -- I don't want to comment on this number because it's part of the communication of our company, but it doesn't [indiscernible]. It's France and only hardware, not VAS, and this is a significant VAS contract and project. Very -- exactly, I think, very -- representing very well the type of work we do. We sell transformation project, very strategic transformation. We sell to the C-suite, a transformation that covers many dimensions, a full digital transformation. And you see in the press release, the number of dimensions [indiscernible] mentioned. And I think that's -- so it is by definition a project that covers a very large part of our portfolio of solutions. So it's -- but it's not included in those numbers. So those numbers were relatively partial.

The -- your third question, Aurelien. I'm sorry, I missed it. It was about -- now that was the fourth, the share buyback, and I will probably [indiscernible] Yes. Well, the end of '27 [indiscernible] 2 years, right? So when you look at our company, there are two things.

We win a lot of new logos every year. And we just, I think, started the year with a good example. And there are going to be many more, right? So first, we win new logos and pretty much more than combined competition every year. That's one driver. Second thing, we have a very strong, very large customer base. which we have a lot of growth drivers. First, of course, covering the full fleet. And very often, we are below 50% penetration. Second, vast adoption in those customers. And third, the beginning of the swap and upgrade to [indiscernible] in some of these very large customers, which will start. So that's a very significant growth driver for us, our installed base. And that's our model, by the way. But of course, there is also all these new logos that we will continue to win.

And I just would like to say, today, the unequipped market is very significant. If you take just the U.S. market and excluding Walmart, you got a market of 2 billion paper labels that will be digitized in a number of years, but rather fast and slower, I think. So it's a very significant market. So all these, our pipeline, the time we have makes us really confident that we can achieve this target that we set as an ambition, a long-term ambition in '22. And the trajectory we've had until now, I think we'll do another significant step in that direction in '26. And we have 2 years to -- yes, to accelerate other entries and win a lot of new deals.

And for the share buyback. Thierry?

Based on the market conditions, but very likely in the next coming 10 to 15 days maximum.

Okay. Another question, maybe?

And now we'll go and take our next question. And the question comes the line of Benjamin Thielmann from Berenberg.

This is Ben from Berenberg. I have four, if I may. Maybe first, maybe -- I'll try to be quick. First question is on Captana. You mentioned on one of the slides you expect more than 150,000 cameras to be deployed in '26. I was just wondering, are these already signed? Or is this a mix of already signed deals last what you expect in terms of line conversion [indiscernible] 2026? Thats [indiscernible]

Okay. You do it one by one. No, it's mostly signed. Those are things that we've been scaling our go-to-market and so it's mainly signed. So it should be -- this is why we said above. So -- but that includes, of course, the beginning of the Carrefour rollout, of course, because it will start this year. It's been signed recently. So it includes. But it's mostly signed.

Yes, maybe a follow-up on that. Could you give us somewhat of a guidance, how much of those 150,000 plus could be driven by Carrefour?

No, we don't give customer by customer. But Carrefour, anyway, is -- I think you saw the video, and you saw the press release. It's a very significant rollout where the whole stores, hypermarkets to start with than supermarkets, are going to be covered both by EdgeSense and Captana. So I mean, you can figure out the number, but I don't want to go too much in detail by -- on a nominative basis with -- by customer.

Yes. Okay. I had to try here. Maybe next question is you mentioned that you guys have an edge computer vision compared to your competitors. I was just wondering where do you exactly see this edge? Is it in terms of lower or shorter lead times because you have better production capacity? Is there a big difference in underlying technology? Any counter on how you see yourself compared to competitors would be very helpful.

Yes. Well, we are in the world -- I think it's a little bit the same as [indiscernible]. We're in the world of IoT and in the world of connected [indiscernible] whereas that means that the real performance comes from multiple different things. It comes from hardware and miniaturization and design, and embedded software in the hardware. That's a very, very strong expertise of our company. And the whole end-to-end cloud-to-edge software, and then all the AI engines that are running and to have a really well-performing solution in retail, which is a very specific use case of computer vision.

We are not in video security cameras, we are in observing shelves, which is a very special use case. And again, we're -- that's where our tech edge lies. The combination of the IoT expertise, the embedded software, the end-to-end cloud management of -- and the AI is really where this combination is where the magic sauce appears. And we see that we are we are comparing ourselves and we think we're really advanced.

And we started -- it's not something that we started like we decided to launch like a month ago. We -- or a year ago. This is something we're working with dedicated teams since, I'd say, 8 years. I know you might say it's slow, but when it takes off, this is a big, big thing. And we think today, a lot of retailers are seeing this as the next big unlock of productivity and supply chain management in their operations. So we're in excited about that.

Okay. Interesting. And then maybe one more question on the [indiscernible] in the video. I was just wondering whether there is a potential use case that [indiscernible] may be -- or there may be [ Spark shoppers ] in France or in other European countries [indiscernible] stores could get access to the software that they could also use to pick to light of the ESM? Or is that not planned in the foreseeable future?

No, no. Of course, it's a fundamental feature of our hardware and software platform to enable very fast, accurate picking and stocking because both are equally important. Stocking means replenishing the shelf and going very fast and identifying where to structure were to stock each product. This is a very labor-intensive work and error intensive work. And then pick to light on preparation of e-commerce. So it's very central. Why?

Because simply -- and I think the lesson given by Walmart to the world is actually that the store is a fantastic e-commerce weapon. Today, and you've seen the numbers last week. And Ben, I think you were with Walmart. I mean I know you were with Walmart early in January. You've heard them. Store-fulfilled e-commerce. Look at the numbers they published. 50% growth in store-fulfilled e-commerce. Now they have among the millions of orders that they prepare every day in stores. They are delivering already 1/3 of that, more than [indiscernible] of that below 3 hours just because it's all local e-commerce [ fulfill out ] of stores. This is the next big growth driver of e-commerce, and we see a number of retailers basically realizing that they've made mistakes in building very automated warehouses for e-commerce.

A number of them, I'm sure you know, are shutting them down, actually, and there was an announcement even for a retailer today. But in the U.S., it's the same. So it's going to be the time of so fulfilled e-commerce growth. And for that, you need to enable your store, you need to digitize your store, you need to locate product very accurately, you need to make sure you got the right availability when you're doing your picking and you need to go super fast at picking.

The statistics of the usage of our solution by the internal staff of Walmart and the gig shoppers are just massive. So we're talking about tens of millions of triggers of [indiscernible] every day today. And we've only done, as I said, half of the fleet. So it's -- and this, again, is a little bit like what I said on computer vision. It's something that combines IoT design, infrastructure, protocol, it's all, sort of, in many dimensions of the solution that you can actually trigger this. Not even mentioning the power efficiency that you need in order to be using these devices intensively throughout the day and 24/7, so you need a very, very power efficient system, which again is one of the things that are -- that is a competitive edge [indiscernible].

So I could go on forever. So [indiscernible] here. But for sure, it's central in the choice of Carrefour. E-commerce is central today in the choice, and we'll be more and more central in the choice of -- I think it's new, to be frank. It's true that now people who are thinking, I'm going to take ESL and they need to think what is my strategy in e-commerce, because they need to very carefully evaluate the different options. And we see a turning point today in the market.

Okay. Interesting. Thank you, Thierry. Maybe a quick one. There was for -- there was a EUR 54.9 million [indiscernible] related value amortization, which also embedded in average price opponent that were driving it. And it was written on the slide that you expect this to phase out by the end of 2028. I was just wondering whether you could, A, maybe split those EUR 55 million into how much of that was actually the amortization component? And then B, is what run rate can we expect until the end of 2028, or maybe how much is the total fair value amortization that you expect between '25 and '28?

Well, actually, I will give you the figure for '26. It's approximately 40. So [indiscernible] is 40. They're both combined. So of course, the negative impact arising from the warrant fair value amortization is going on. But then you got a positive impact, which is partly [indiscernible] due to the weighted average price. So the net impact for '26 should be approximately EUR 40 million negative versus the minus EUR 55 million.

Okay. And then maybe a very quick last one. You mentioned it on the slide with the free cash flow reconciliation. There was [indiscernible] finance CapEx of EUR 77.5 million in full year 2025. I was wondering what was the total amount of prepayments that you got in 2025?

Well, we didn't disclose that figure [indiscernible] you go really well into the details. But in 2025, actually no, everything was defended by Walmart in '23 and '24 on the line.

How much was the -- Okay. But there were also prepayments for...

There were also prepayments for the hardware, but the prepayments for the line was entirely paid at the end of 2024 for approximately $320 million.

Now we'll go to the next question. And the question comes line of Flavien Baudemont from Bernstein.

I have two questions on my side. The first one is on the Carrefour rollout. How long will [indiscernible] they mentioned that it will last until 2030. Do you [indiscernible] that? And for Captana are you planning to lend them or sell them the cameras?

And on the second question, can we have a more broader outlook on, let's say, the end of 2026 and 2027. Do you see any big movement in the U.S.? Or are you planning to at least announce a massive contract by the end of the year to support 2027 growth?

So regarding Carrefour, I know it's been present -- the project has been presented as part of the 2030 band. So it's been assumed that, that was the timing of the project. But if you look at the interviews of the CEO of Carrefour, he also said -- he answered a few questions. So he said, no, no, we're going to go at $2,000 per hour, and we're going to go faster. So we think it's going to be faster. It's very often faster.

If you look at a big contract in America, we're supposed to be a number of years and then it's going fast just because it's delivering high returns and people want to accelerate. And even if there are sort of tariffs and everything, nevertheless, they don't stop the accelerate. So I think it's going to be faster and will include a number of of countries, and it will include all these different solutions.

And by the way, there's going to be plenty of developments because we are joining forces in some solutions development together, and those solutions will be rolled out because they will be codeveloped with Carrefour. So they will be rolled out in Carrefour. So there is plenty of developments. And again, I don't want to comment on the -- on the number that was mentioned without very much, sort of, scoping or [indiscernible]. So it's partial geography-wise and solution-wise as I already said. In Captana, we don't want to go specific -- it doesn't make a big difference, actually. Whether we rent them or we -- because the proportion of hardware versus software in Captana is much, much higher on software. So it doesn't make a big difference. And we don't disclose specific sort of business models on a customer-by-customer basis. But -- and again, it's not a big -- it's not a big difference. Like in ESL and cloud, you have a much bigger sort of proportion of hardware to software, not so much in computer vision.

And '27, I will -- I'll make the same answer I've already made. The market is big. We have growth coming from new logos that we will continue to win on a regular basis. We have a tremendous customer base for which we have plenty of penetration coverage extension, vast new projects and, of course, for some of the migration to EdgeSense, which is big swaps projects. So that we have 2 years before the end of the '27. So I'm sure we're going to -- we have a lot of time to win a lot of deals, and we will.

Okay. Maybe a follow-up on -- maybe a follow-up on Carrefour. I didn't see in the press release that you're going to sell them your Engage solution. Are you selling any retail media services to Carrefour?

Yes, we -- so yes, so I mean retail media is mentioned in the press release, if you look at the number of the items that I [indiscernible] part of the [indiscernible] of cooperation. It is not specifically mentioned like that because Carrefour is not, per se, buying themselves retail media solutions because they have their joint venture with [indiscernible]. So it's a different setup. But a number of the Carrefour stores are already fitted with some of our technologies in retail media. But it's a different setup because it will go through our partners.

[Operator Instructions] Now we're going to take our next question. And the question comes line of Valentin-Paul Jahan from Stifel.

I have three sets of questions, and I will try to be short, to go one by one. The first [indiscernible] question related to Captana that you said is the next big growth driver potentially. The large [indiscernible] contract computer vision appears to demonstrate the company payback for retailer and that the solution is not retail-ready. So I am wondering what is the Captana development potential, especially for 2027 in the event of major successes in the coming months with additional clients. And what obstacles will limit its development despite strong client [indiscernible]. So could you please provide more detail on camera, the industrial setup you have for producing camera, producing capacities where it is produced. Is it in [indiscernible] and please assist the growth potential of the solutions going forward in the case of major success [indiscernible] if any, I mean assuming you successfully convert Walmart, for example, just an hypothetic example as you mentioned in previous [indiscernible]

Will a very large-scale camera roll out with the retailer already fully equipped with [indiscernible] be as gradual as the EdgeSense rollout has been? Or could it be much faster, for example, in 1 year? What level of volumes you currently -- your current [indiscernible] in camera is partially ready to absorb on a yearly basis. Could you clarify if you are -- yes, if you are stray ready to sell several millions of camera in 2027? And if the demand is there, obviously. If you are not ready currently, do you think you need to be ready right now? Do you see -- is it costly too early to prepare for this type of saving -- but this is my question around [indiscernible]. Can you please give a little bit more color on all of that?

I thought I had given a lot of color already. It's -- first, on the industrial setup, we are -- I think you should feel comfortable because the way we've ramped up such a sophisticated and new technology as EdgeSense and the way we've ramped it up, I think should indicate that we have a certain know-how in how to scale IoT innovations industrially. And we have excellent partners. You mentioned one. We have others, EMS. And those are the ones with whom will scale this solution. We're already working with our EMS on the industrial setup for Captana. And we're phasing it. And for sure, we will be ready for millions of cameras in '27 and more in the following years.

So, yes. I mean the scale of a computer vision solution is significant because you have a number of SKUs. And you need one way or another, one camera or [ 50, 200 ] SKUs. And so you can make the math easily. It's a very significant business. Now we're still at small scale because it's a complex technology. Like you could have thought autonomous drive will be everywhere 5 years ago. It takes a bit of time to really make something completely robust and mature for a world like autonomous drive in the street, or simply the physical stores, which are very I would say, complex environment for technology. So it takes time, but it's naturally big projects. We are quite secure in terms of the industrial setup. We are already working on it because obviously, a number of projects will be big in '27 and will continue to grow.

And the business case associated with that, which is basically managing with very high accuracy, shelf execution, planogram compliance, out of stocks. It's very important items in the P&L and the balance sheet of retailers. So it is, as I said, the big [indiscernible]. So it's going to be big. So now having said that, you never know what's going to be exactly the shape of the exponential curve. But it's -- why we see extreme interest. And I think the interviews of CEO of Carrefour is mentioning out-of-stock management as every time was the one priority -- #1 priority mentioned in the -- because it's driven by -- it's related to revenues immediately, right?

So that's what I can say. You have a second set of questions, because you don't have questions you have sets of questions.

Yes. So it will be more about EdgeSense production lines which are dedicated to Walmart and look at it as [indiscernible] factories, if [indiscernible]. So could you clarify the new profitability model you have, I mean, historically, [indiscernible] electronic [indiscernible] costs were included in variable gross margins. And now with these full lines, which are within your balance sheet, the depreciation costs, obviously. And likely, it has reduced fixed costs to cover the general and administrative expenses that [indiscernible] incur for [indiscernible] in their own factories, but they are [indiscernible].

So as the Walmart U.S. rollout on EdgeSense solutions normalize and decrease in 2027 and utilization rates of these 4 lines should decrease, obviously, from the 2026 peak. How [indiscernible] is your EBIT margin and your free cash flows to lower its production volumes. What would be the breakeven utilization rate in volumes for EdgeSense going forward?

Just on that, Valentin. We have a fixed cost, and this fixed cost was already fully prepaid by Walmart. So now the utilization rates of the lines is not really an issue for us. Of course, we are going to keep using them for other customers than Walmart after the completion of the Walmart rollout. But since they have been fully paid by Walmart, we don't have any topics around the utilization rate. Utilization rate, and eventually left spare capacity, would be an issue. If we had fully funded the line and we were not able to use them, which is not the case in this situation.

So it's not a deal. It's rather an opportunity for us. Because we've got lines which have been fully funded that we're going to be able to use for other customers and to accelerate the availability of the product. So that's rather an opportunity than a threat or wait for us that -- there's no other impact.

It's fully funded in terms of CapEx, but [indiscernible], you probably have OpEx also with these lines, no?

No, the usage of the line is by the variable costs. Yes.

It's in the variable cost that [indiscernible]

[indiscernible] we only delivered a certain level of volume of sales to Walmart, and we have already incurred the cost, the full cost for the [indiscernible] that we have delivered.

Yes. I think you have a -- in fact, the business model of change reflects perfectly in our accounts already. So you get it. It's going to be -- it's going to be the same moving forward. And it is a very differentiated product. And I think it shows that it's a more profitable product. So maybe a last set of questions?

So just in these lines amortized over 5 years. It's the depreciation that you're in policy [indiscernible] considering I mean do we have to expect the same amount of CapEx around 2030? I mean it was -- [indiscernible] between EUR 250 million and EUR 300 million for all of the lines, or something like that? Is it something that you will have to pay again to upgrade it, to make it [ viable ] and up to date on a long-term basis? And so is it something that will be recurring every 5 years in your CapEx or?

No, no, not at all. But at, the only reason why we invested is because we were not [ had ] to make this capacity available in order to be able to complete their rollout. Once it's completed, it's done. So we are not going to reinitiate another cycle of CapEx on this. So the CapEx moving forward is going to be the cash CapEx. The CapEx funded by the group essentially driven by R&D and IT investment and also some manufacturing equipment that we can invest in, which are essentially the malls, the testing equipment, this kind of stuff. But we are not going to reinvest in manufacture line.

Yes. In other words, we have a [ fabless ] model, which we basically went out of temporarily because some lines were prefunded by [indiscernible] in order to be having very high capacity in a certain amount of time. That was the only reason. It's very -- but our model remains fabless and we will resume that model after the amortization of these lines. And the amortization is in our accounts, and that's in our EBIT. You can follow [indiscernible] which is after the depreciation of these lines.

So there is nothing that's going to change in our business model. It's already very reflected in the...

The only thing Valentin is just -- we didn't have a full year amortization of the 4 lines in 2025. That would be the case starting in 2026. So the amortization expense is going to slightly increase in 2026, compared to 2025. But nothing which is going to [indiscernible].

And now we're going to take our last question for today. And the question comes line of Gilles Crespel from [indiscernible]

I'll try to be very short about -- congratulation for the margins which have been impressive for the year and for keeping new bearing while Vusion was a bit shaken on the market. So I hope you can hear me correctly?

We can. Yes.

Yes, right. If you allow me three very quick questions. The first one would be on the U.S. market besides Walmart, which has great potential and many good things, we have seen -- unless I'm missing something, no significant new logo. Could you comment on that? Well, I'm talking about new orders in '25.

Second would be about the EBIT margin and the guidance for '26. Do you see it as -- well, continuing being on the gross margin or something more split in between gross margin and operating leverage?

And the third would be on the VAS. There are still limited progress if I may, although the second semester looked promising in '25. So what do you expect in -- when you guide for plus 40% in '26? Do you expect this to be balanced in between recurring and installs? Or well, stronger on one side? And if you allow me, what makes you more confident on this rather strong growth than you have been earlier because it has been a bit of a challenge to increase also obviously, it needs to be progressive. So thanks for taking those hopefully, short points.

Okay. Yes. So U.S. -- well, U.S. I think we see the market has been a bit slowed down last year by the tariffs. And I think we see a cautious adoption. Of course, the new Walmart was going -- Well, they knew. I think they realize now that Walmart is going so fast because it surged really during the course of '25, and we didn't [indiscernible] was not so vocal about it at the beginning. So it is -- I think it's an adoption which has been slow.

A number of -- we need a certain time to implement a pilot with EdgeSense with connecting the different entities in a retailer, which are e-commerce, store operations, merchandising in order to really materialize the superior returns that our solution brings. And if we just focus on the people who usually buy ESLs for price automation, we don't really capture that. So it's a bit longer development.

But it's -- and none of the, sort of -- none of the retailers who have chosen [indiscernible] solution or started, let's say, some deployments of standard [ DSL ] solutions have yet tested EdgeSense. So I think it's just the timing of development. It happens in the U.S. sometimes, I think, Walmart is a bit shaking now the market because they are delivering so impressive results for retailers. I mean you may not be experts in that, but for the retailers, what they see in the numbers that [indiscernible] again, last week is just something they don't even understand how it's possible. So it's so impressive.

So I think it's going to change. The market is really big. Again, really big. I mean, I mentioned a number of the whole potential outside Walmart, and I'm only talking about the top 100 retailers. So it's really big. We're very, very excited about this market. And we think nevertheless, it's going to be extremely -- it's -- we shouldn't see a year with our new logos.

EBIT margin...

It's balanced between the contribution of the VCM of the OpEx. Thank you [indiscernible]

Balanced. And the VAS is actually balance to. So again, we -- we started this journey on VAS. Again, it was 7, 8 years ago, our VAS were $15 million. Last year, it was $211 million, so $210 million. It's fast growth. And it's -- but it's bound to accelerate because it's a lot of adoption on existing customers. So not only do we see customers who are starting to roll out immediately in multiple products. So you can see that from the outset, our customer development involves more VAS now. But also all our installed base as they migrate to cloud become development field for our VAS, so.

And some of the products are just at the beginning. So I know you're envisioned, but we see great traction. But some of the products like retail media or even Captana, we talked a lot about Captana, are quite at the beginning. So those things are like EdgeSense was also a bit like that. For a number of years, it was development. It was a lot of testing. There was not much revenue. Now it's more revenue and it will be the same for Captana. So we are confident that this is a strong growth driver but also a strong profitability driver, a strong stickiness driver for our customers. And also bringing stickiness on the ESL and the digital share system part.

So it means that when we renew those customers and upgrade them, we have a much higher loyalty. So that's what I can say. So -- and we'll probably see in the coming years, this expansion of the mix of VAS and also because of the nature of recurring. And I said something -- by the way, I repeat it because I said it and you asked it, I said this year, recurring should grow faster than recurring.

Dear speakers, there are no further questions for today. I would now like to hand the conference over to Thierry Gadou for any closing remarks.

Well, thank you very much for your participation tonight. We will speak again shortly on the 21st of April for the Q1 sales. And in the meantime, I wish you goodbye and great evening. Thank you.

Bye.

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

Good day, and thank you for standing by. Welcome to VusionGroup Q3 2025 Sales Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Olivier Gernandt, Investor Relations Director. Please go ahead.

Thank you very much. Good afternoon, ladies and gentlemen, and welcome to our third quarter 2025 sales presentation. With me today are Thierry Gadou, our Chairman and Chief Executive Officer; as well as Thierry Lemaitre, our Deputy CEO, Corporate and Finance. Thierry Gadou will make some remarks on the group's operational highlights. Thierry Lemaitre will then discuss our group's financial performance, and Thierry Gadou will conclude our presentation with some remarks on our full year outlook. After this presentation, 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. This evening's release was issued a short while ago and is available in French and English on VusionGroup'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 be also available on our website after the call.

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

Thank you, Olivier. Good afternoon, everyone. Thanks for joining our conference call. Very pleased to present to you along with Thierry Lemaitre our sales figures for the third quarter.

So let's start with the main highlights. VusionGroup achieved an excellent third quarter with 59% growth in adjusted sales year-on-year at EUR 355 million. The 9 months adjusted sales are just above EUR 1 billion, up 54%. The 9 months VAS sales reached EUR 144 million, up 115% versus last year at the same period. And we had a continued good level of order entries, which are now just below EUR 1.8 billion over 12 months, an increase of 26%, and the momentum is good. We just announced an important deal this morning.

So if we look at the performance by region now, the strong growth outside Europe is particularly driven by the intensive rollout of EdgeSense in Walmart in the U.S., which is now reaching cruising speed and fast speed. Over 9 months, Europe is still showing a small decline, but the situation is stabilized in Q3, and the other entries are good too. As I said this morning, we announced the full fleet rollout of one of the largest British retailers, Morrisons. It's about 500 supermarkets to be deployed as soon as next year. And as you know, after Asda, this is a second win in the U.K. since the beginning of the month. We announced Asda early October, and it's the third win in the U.K. since the beginning of the year, which if we include the full rollout contract for Co-op, which makes over 3,000 stores to roll out in the U.K. with new orders this year. So the momentum is quite good in Europe in general. Both in new logos and we have also a large part of our customer base. We begin to renew their infrastructure in the next year. So the -- we see the momentum very good also in the -- in Europe.

Regarding VAS now, revenue more than doubled, particularly driven by VCloud and VusionCloud and VusionOX. Our cloud ESL installed base, by the way, has grown by over 200% in the last year, thanks to both new rollouts on cloud and also legacy customers migration to cloud. And we passed a very symbolic threshold in Q3 of 50% of more than 50% now of our total installed base in the cloud now. So and in Q3, there was also a significant increase in the VAS pipeline, in particular with computer vision projects and data solutions, which are both being more and more seen as a must-have technology in the future. We are very well positioned there and very optimistic to have a big part in this future big wave.

We're also excited about the impact of AI in retail. And you've seen a number of announcements in that area over the past few weeks. But on Monday, we made also an announcement, an important announcement about the opening of our EdgeSense Connected Store platform to AI applications and generative models. This is really important. I mean today, AI lease essentially online in the cloud. Tomorrow, it will come to the physical world and in particular, to the physical stores. As you know, EdgeSense, the infrastructure turns the store into a smart grid into a digital twin, where every product, every associate shopper are located, connected synchronized.

So just as GPS enabled the smartphones to navigate and understand digital maps, EdgeSense provides a store context and data layer that Generative AI models autonomous agents and soon AI wearables such as smart glasses will need to understand and interact intelligently in the physical store. So EdgeSense AI now is making this data infrastructure available through APIs and developer partnerships. This is the core of the announcement of Monday. EdgeSense gives AI the self-learning real-world context. It's been missing until now. It's -- we believe, a major step towards bridging the digital and the physical dimensions of commerce and bringing AI to physical retail.

So having said that, I hand over to Thierry for detailed comments on our figures, and I'll be back for our outlook perspectives.

Thank you, Thierry. Hello, everyone. I will now go through the detail of the Q3 revenues on order entries. Q3 revenues this year stood at EUR 347 million in IFRS and EUR 355.3 million in adjusted terms, which is a 59% increase versus Q3 last year. You can see that the value of the adjustment in Q3 is now lower than in Q2 due to the adjustment on the selling price starting to reverse in Q3 this year, as we mentioned earlier.

Over the first 9 months, we are exceeding EUR 1 billion total adjusted revenues, which is close to the full year adjusted revenues last year, an increase of plus 54%. Within the total revenues that are now accounting for 14.3% versus 10% over the first 9 months last year. We see the main momentum as of the end of H1 with a strong growth of 115% versus last year. Both the recurring and the nonrecurring VAS revenues are showing strong growth of 37% and 238%, respectively.

Order entries are also solid at almost EUR 1.3 billion over the first 9 months, showing an increase of 12% versus last year and 26% on a rolling 12-month basis.

I'll now hand over to Thierry for the outlook.

Thank you, Thierry. So we're expecting a big quarter in Q4, our biggest quarter ever. Revenue about around EUR 500 million to reach our target of EUR 1.5 billion. So we do reiterate the guidance that we raised 1 month ago. VusionGroup also expects to exceed its initial VAS revenue growth target of 80% for the entire year. And overall, with an excellent order book and pipeline, the visibility for next year is excellent and growth prospects are very good. So we will detail all this, I mean, our 2026 guidance in February when we report our full year '25 results.

Thank you very much. And now we can take questions if there are.

[Operator Instructions]. We will take our first question the question comes from the line of Ben Thielmann from Berenberg.

Can you hear me?

Yes. We can.

A few questions from my side. First one would be on revenues. In EMEA, it seems like revenues in Q3 are up 3%. You guys have flagged it already in Q1 and the Q2 earnings call that you expect an H2 recovery. I was just wondering if you could guide us a little bit how shall we split the EUR 500 million in revenues in Q4 between EMEA and Americas? Is it fair to say that the slight plus we have seen in Q3 is likely to be seen in Q4 as well for EMEA? That's the first one.

Yes. Well, I mean, we gave guidance for quarters. We don't make precise guidance by regions. But I think overall, what I said is that in Europe, we see -- again, we've had a decline, which is starkly visual because of the comparable basis. I don't want to repeat myself, but there's been much, much higher growth than expected in the past years. So we have a comparable basis, which is not really favorable. However, we're now back to this breakeven. We see, again, order entries growing because I think we mentioned that for the third consecutive quarter, we see growth in order entries in Europe. We announced several of these including this morning, which are not in these numbers, by the way because they are -- they would be in Q4.

So all this shows a good momentum. So now on a quarter-by-quarter basis, we don't give the guidance numbers, but we see very good momentum in Europe, need for our solutions. And so that's why we are positive. And we really are very confident on our average growth guidance that we had given a number of years ago, about 20% per annum. We're still on that trend, by the way, and we will continue.

But it's just -- yes, there are -- there's been a little bit of a decline, as you know, but it's -- we see that more behind us now.

Okay. Perfect. And then maybe another question, which was related to something that you announced already a couple of weeks ago is in terms of M&A you guys took a minority stake in a German robotics company called Ubica. There was also a majority stake that you took in another data analytics company and I was just wondering maybe you could give us some color, what was the rationale behind it? As I understand it, it goes into the field of computer vision. And maybe what is the revenue contribution from that on your 2025 numbers?

No, this -- I mean, again, those are relatively small entities. And in one case, it's a minority -- it's a minority investment in -- so it's very insignificant in terms of the -- but it's more to bring on board either some skills that we may lack in some very important geographies or a foot in some of the technology areas where we were absent. I'm thinking about the robotics. So those are things that are part of our, I would say, building our skills and building our portfolio of technologies, watching things. So it is something that is small in size. So we don't comment about that.

Okay. And then third question would be, you mentioned the outlook and visibility for 2026 are excellent. I know you're going to guide on next year officially in February. But maybe you can help us a little bit like what does that refer to? Is it revenues and earnings momentum? Or is that also referring to your cash generation capabilities? Any color on that?

I think that there was a lot of color on cash flows last time. It's not really the call to talk about financials and cash flows, but maybe, Thierry, you can repeat what you said...

No. You're asking that you want to elaborate on further more compared to what we said last time. We said that -- of course, I don't want to give any color on potential guidance for 2026. That's not the right timing to do it -- so to do that. I just reiterate that we said that in terms of cash flows, next year, there will be a reversal on the down payment. So that will certainly be negative free cash flow at the company level, but that's it. So there is nothing new. And nothing new compared to what we said in September a few weeks ago.

I think you said that our operational -- our intrinsic operational cash flow is continuing to grow this year and next year, and that we will consume some of the down payments, but we will stay on a net positive cash -- net cash positive in the medium term, which is also -- I think, which is already saying a lot in terms of the positive cash flow generation the company because it's the case. So I'm not sure it's the -- we'll talk about that when we present our H2 and full year results now, but we've talked a lot about this I think, in September.

And regarding the -- you said we should help you -- I mean, I think we are helping a lot already because when you say that you are confident that you're going to have robust growth next year after posting 50% growth in a year at the scale we have now, this is saying a lot already. So we will make more detailed statements on the way we see '26. But we're already saying that in spite of having very strong growth, having raised our guidance in the middle of the year. We are still seeing robust growth for next year. I think it's already a lot. We won't be more precise than that, Ben, sorry.

It is. No, it's totally -- it's perfect. I'm very happy with that.

Your next question comes from the line of Hugo Paternoster from Kepler Cheuvreux.

Yes. Can you hear me well?

Yes. We can.

Yes.

Great. I would like to come back, first of all, on the deal that you announced morning with Morrison. And maybe just wanted to focus not on the hardware, but potentially on the initiative that you want to explore with Morrison. If you could shed some light or concrete example of what you are expecting to do with them? I believe it's more related to AI. And yes, what could you -- what potentially could you tell us from this deal?

I think there is nothing -- I mean, let's say, we have a customer development approach with every one of our customers, which is to develop a road map with them about digitalization of a number of processes. And then the digitalization can enable new experiences in the store with the shoppers, new relationship, new ways of delivering loyalty, So we have, let's say, a pattern of developing our customers, but it always starts with the backbone of the digitization.

It always starts with putting the infrastructure first because then it becomes the backbone that where we can enable a number of additional functions. So in that respect, Morrison is not really different. It is -- we're putting first, and we need to roll it out. So in the next 12, 18 months, first, the infrastructure, the ESLs, the cloud also because it's going to be all cloud-based. And then we will work on a number of features additionally. But you need to first do the things.

Now we have a portfolio of solutions. So every one of our customers where we start. It's true also with the previous deal we announced at the beginning of the year -- sorry, of the month in the U.K. We have a number of solutions that after we installed the first ESLs, we add to the -- but you need to do things in order because first, you need the backbone, infrastructure, and then you can add additional services. Here, we have the right infrastructure. It's all cloud. It's all new generation of solutions. So I'm sure we'll do a lot of things with Morrisons in the future.

Okay. Got it. And a question, a little bit of follow-up on this. How do you think both Asda and Morrison rollout will influence the discussion that you may have with other retailers in the U.K. and potentially one of the Tier 1 retailer like Tesco, Sainsbury's, maybe Aldi, do you feel that there is an impact already in the discussion?

Yes. I think, Morrison, Asda would not be happy to hear that they are not considered as Tier 1 by you because they are clearly all in the top 5 or top 6, including Co-op of the retail. So when you are talking about the market of the size of the United Kingdom, the top 5 retailers are really big retailers. So they are all Tier 1s.

But to answer your question, yes, I think the momentum in the U.K. is excellent. And the pressure is high also to bring automation and to bring intelligence to the store. And so I think that would be in the next 12 months, there will be a lot more announcements.

Okay. Okay. Got it. And regarding the top tier, I would mean the over top tier...

Okay. Sorry.

And Morrison. And another question on the like. It's beyond the U.K., just wonder, apart from Walmart in North America currently and what is the level of discussion that you may have with additional potential customer? And perhaps you could provide us some information on the pilot that you may have there?

Well, I mean, we have a very -- we have a big pipeline in America, in North America, particularly also a little bit in Latin America. So there are a number of things going on. We don't make comments on our pipeline. This is a bit too -- this is confidential matters, and we are not here speaking only to our investors. So I won't be very talkative about any individual deals, but we have a big pipeline in America.

Your next question comes from the line of Flavien Baudemont from Bernstein.

My first question is a follow-up on Hugo's question. Last quarter, you mentioned that in terms of visibility in the U.S., you think that you can possibly sign a deal in H2 2026? Is it still the case?

Yes. I didn't remember I was that precise. But I mean, I will just follow on the previous answer I made which was about also the U.S. We have a very significant pipeline in the U.S. It's always uncertain in which quarter you may sign. But I'm sure that in the next 12 months, there will be deals signed, yes, so -- and including H2 '26, yes.

Okay. Then I have a second question on the order book. It's still down in Q3 by approximately 5%. Maybe you can have some color on that?

Well, yes, the color is simple. I personally think for a third quarter, it's an excellent -- a really excellent quarter. This number, in absolute terms, it's obviously, is a little bit affected by a comparative basis because we were getting big multiyear orders in the previous period. But it's a good absolute -- it's a good absolute number, and we're happy with the level of order entries. So it's compatible with -- when I look at the level of order entries, the level of the pipeline and our plan '27, all this is completely consistent.

Okay. Then on the VAS, you are recurring VAS revenue per cloud ESL is again down quarter-to-quarter. I'm mainly wondering because I think that there is a volume effect with Walmart that impacted. But what is the dynamic of your recurring VAS sales, excluding Walmart? What's basically the growth with this -- with these kind of clients?

Yes. I think the dynamic of the cloud connected and you need to be taking into account different things. We have migrations. We have -- we did a lot of migrations, which is a very positive factor because we have this objective of being at some point very soon at 90% in the cloud. So pushing a lot of migrations, and we did huge migrations. And those things can -- don't -- you need to look at the average level of labels really when you make those comparisons because here you're talking about revenues during the 3 months period compared to a number of -- so if you look at this, you will not see that big trend. And I don't want to enter into too many comparisons between customers in terms of pricing or revenue. So I will leave it here.

But the growth 37% is something that we feel very comfortable. I mentioned also that we are having an increase in the pipeline of VAS recurring project, particularly a strong increase in the pipeline of Captana, computer vision project, which I mentioned is a particular pattern of the Q3. So we're very confident about the fast growth, which is quite consistent, which probably will be accelerating in our VAS recurring revenue.

And I have a last one regarding your slight growth in Europe. Is it coming from new logo or mainly from existing customers? And is it mainly due to a growth in ESL sales revenues or in VAS revenues?

Well, it's really, really coming from both ESL and VAS, definitely, first. Second, it's coming from also -- I mean, we announced a number of new logos, and it's not yet coming from these new logos because the recently announced ones are going to be more feeding growth in '26. But it's -- again, when we talk about our existing customers, it's always important to remind, we have a very, very large base of customers, particularly in Europe and a huge installed base.

But even in that base of customers, we have only partial penetration of our customers. So we continue to grow the coverage, the penetration, the coverage of our customer base. And that is always driving growth. And also, we expand categories we have -- so a big part of our growth is within our customer base and then we add new logos regularly, and we regularly announce new ones.

So a big part of our growth is also coming from customers. And I mentioned also that as a number of our customers who have rolled out in 2017, '18, '19 are going to be also upgrading refreshing and renewing the tech in their stores. So this is also a growth driver for the next years. So it's a perpetual sort of business. And so we have a lot of growth in the customer base. And so if I look at '27, '28 would not be very surprising that 70% of our revenue then is actually coming from customers we already have today.

[Operator Instructions]. And the next question comes from the line of Aurelien Sivignon of ODDO BHF.

Two follow-up questions from my side on U.K. First, on the Morrison contract, do you expect this rollout to be completed by the end of '26? And second one, finally, would you say U.K. could quickly become your second largest country by revenue going forward? And maybe from '26, I mean adding Morrison to Asda and to Co-op, numbers are getting quite significant.

So yes, it could be. I'm not making a promise here, but let's say, the intention is to go relatively fast in the rollout. So yes, it could be done by the end of '26. Maybe it could roll over a little bit in '27, but it's a possibility. Obviously, if you look at GDP and retail intensity of the market. U.K. is a big market and certainly one of the top 3 markets in Europe. So it should really catch up. I've been waiting for this moment. It should really catch up in the top 3 markets of Europe, whether it's going to be the second one, I don't know because there is a big competition between our markets. Germany is also a very important market. And -- but it's going to be one of the top 3 definitely. And we are very excited about this market.

And just on the Morrison contract, does it make sense to think that this rollout will be completed by the end of next year or maybe a little bit too short?

Yes. I think -- I thought I answered that question. I said, yes, it's not a promise, but it's very likely we can complete the rollout by the end of next year, absolutely.

And the next question comes from Flavien Baudemont from Bernstein.

Yes. Sorry, I forgot one question. On the Asda deal, does the deal include any VAS sales?

Yes, of course, in the -- well, first, it's again, the full cloud deal plus a number of new services, which are additional services and solutions, which are not in the press release, but which are being already tested in many stores and very likely to be rolled out. So there will be more announcements about Asda as we go. But yes, the scope is quite significant in terms of solutions.

There seems to be no further questions. I would like to hand back for closing remarks.

Thank you very much, everyone. It was a pleasure to spend these minutes with you today, and we will be back now -- but when Olivier?

On 26th February.

26th of February, which is maybe late for the revenue, but early for the financial results and for the first time, it will be together. Well, the first time -- yes, it will be the first time we do this. So it's -- we inaugurate a new timing. So it will be the 26th of February. And in the meantime, I wish you a great evening. Bye-bye.

Bye-bye.

This concludes today's conference call. Thank you for participating. You may now disconnect.

Good day, and thank you for standing by. Welcome to VusionGroup H1 2025 Results. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Olivier Gernandt, VusionGroup's Investor Relations Officer. Please go ahead, sir.

Thank you very much, operator. Ladies and gentlemen, good afternoon, and welcome to our 2025 first half results presentation. With me today are Thierry Gadou, our Chairman and Chief Executive Officer; as well as Thierry Lemaitre, our Deputy CEO, Corporate and Finance. Thierry Gadou will make some brief opening remarks on the group's business performance, which we already presented to you at the end of July. Thierry Lemaitre will then make some detailed comments on our first half financial performance, and Thierry Gadou will conclude with some remarks regarding our full year outlook, which we are upgrading today. 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. This evening's release was issued a short while ago and is available in French and in English on VusionGroup'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 also be available on our website after the call.

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

Thanks, Olivier. Good afternoon, everyone, and thanks for joining our conference call. I'm very pleased to present to you along with Thierry Lemaitre, the second part of our H1 results, which is dedicated to the financial performance. I will, therefore, hand over to Thierry Lemaitre very shortly after just a brief reminder of the main highlights.

So VusionGroup achieved an excellent first semester ahead of our guidance with 51% growth in adjusted sales at EUR 649 million. Order entries were up 22% for the first half and the VAS revenues doubled year-on-year at EUR 91 million. Thanks to our strong business model and operating performance, our profitability continued to increase sharply with a 300 basis point increase in EBITDA margin versus H1 last year. And we delivered a sharp increase in operating free cash flow, even when neutralizing the prepayments on large contracts as well as a strong increase in our net cash position.

We are confident also in our growth visibility for the rest of the year and have therefore raised our revenue and profitability targets for the full year. I will come back on this last point. But before I hand over to Thierry Lemaitre for the detailed comments on our financial performance.

Thank you, Thierry. Hi, everyone. Let me take you through the financials for the first half year. Let's start with revenues, which, as you know, increased by 51% in adjusted terms, driven by a strong traction in the U.S. showing 134% adjusted sales growth in H1. VAS revenues increased twice as fast as total revenues at EUR 91 million versus EUR 44 million in H1 2024. VAS revenues represent 14% of total revenues at the end of H1 this year versus 10% 1 year before, and this has, of course, a positive impact on profitability.

Profitability, in fact, also increased, driven by the variable plus margin. The adjusted variable plus margin reached EUR 200 million in H1 this year, which is a 66% increase versus H1 last year. It is also almost 3 points more than the adjusted VCM rate last year. And this increase is mainly due to the positive mix effect which I mentioned before, between VAS and ESL for 2.5 points and also a continuous increase in the overall profitability of our solution for 0.7 points.

The ForEx impact is limited at minus 0.3 points on the VCM rate, thanks to cash inflows and outflows in USD, almost balancing each other. On the adjusted EBITDA side, the trend is similar with 84% growth between H1 this year and H1 last year. The adjusted EBITDA margin grew 3 points and reached 16.7 points -- sorry, in H1 2025, driven by the variable gross margin improvement and the slight decrease of the OpEx ratio by 0.2 points.

Below EBITDA, the financial result which is plus EUR 6.1 million in adjusted terms, thanks to the level of cash and the decrease of the interest rates, the financial income from cash investments exceeded the bank interest expenses and the group also incurred EUR 2.5 million exchange gains. This leads to a cash financial income amounting to EUR 6.3 million.

As you know from the past semesters, the group is also booking IFRS restatements relating to the fair value of the warrants granted to Walmart and the IAS 21 impact regarding the unrealized ForEx impact on the intercompany balance between the U.S. and the parent company. They both impact the financial results and show a net noncash negative impact of EUR 20 million in the IFRS accounts.

CapEx now, they reached EUR 98.5 million in H1, of which EUR 76 million were funded by customers. The CapEx funded by the group stands at EUR 22 million in H1 or 3.4% of adjusted sales.

Let's now have a look at the impact on the cash flow. In H1, the group generated a significant EUR 120 million increase in its net cash position. The cash position exceeds the financial debt by EUR 513 million at the end of June, versus EUR 393 million at the end of December last year. This increase in the net cash position is mainly coming from the free cash flow, which reached EUR 192 million in H1 this year. We made the same exercise as the previous semesters and calculated what the free cash flow would have been without factoring in the downpayments and the manufacturing lines funded by the customers. And this shows a EUR 58 million restated free cash flow and a 53% adjusted EBITDA to free cash flow conversion. This calculation takes into consideration the operating working capital at the end of June, which is EUR 195 million or the equivalent of the last 21 days of the semester which is also 6% of the annual sales.

The other items impacting the increase in the net cash position of the group are the cash impact of the financial income for EUR 6.3 million, the shares both in the BOE placement for EUR 16 million to investments that the group made in H1 from EUR 9 million; the dividends paid in H1 for EUR 9.6 million and some noncash expenses impacting the EBITDA and cash expenses relating to the performance share plans for a total of plus EUR 12 million. And the last item, the impact of the volatility of the euro-dollar exchange rate also significantly impacted the cash position in dollars for EUR 55 million. This is a negative impact and this is resulting from the conversion impact only because, of course, we will not convert these dollars in euros, but we will use them to pay future spend is in dollars. So there is no actual loss of value of the cash.

If we now have a look at the trend and the coming trend because I understand the questions of some of you, we present on the following slide. The total free cash flow in H1 this year at EUR 192 million on H1 last year at EUR 203 million. Within the free cash flow, we highlight the operating free cash flow, defined as adjusted EBITDA minus CapEx funded by the group. We believe this is a good indicator of the cash flow of the group because it clearly shows the cash generated by the group before any timing impact of the working capital and the prefunded CapEx. It includes both the operating working capital, inventories, accounts receivables and account payables and the nonoperating working capital, which is mainly the down payments. It is also excluding the prepayment by customers of CapEx and the associated cash out related to this CapEx. This financial indicator increases significantly. It increased from EUR 31 million in 2023 to EUR 116 million in '24, and it increased by 147% in H1 from EUR 34 million to EUR 84 million.

This financial indicator should keep on growing in H2, this year and beyond. What you can also see on the graph is that the impact of the down payments collected minus reversed and the customer funding CapEx, prepayment corrected minus the cash invested for CapEx is positive in H1 for EUR 108 million, but it is less than it was in H1 last year at EUR 169 million. This mainly comes from lower down payment collected in H1 this year, and this trend should continue as the group will consume down payments.

So what is the medium-term trend? The group should keep on generating a positive operating free cash flow, consuming down payments, and the net cash position should remain positive. This positive net cash position is, of course, an asset to pursue the group's dividend policy and the funding of potential external growth projects.

So as a summary, the first half year showed a very strong financial performance with significant revenue growth and profitability improvement and an increase in net cash position.

I will now hand over to Thierry for the outlook.

Thank you, Thierry. And as I said earlier, as we speak, our visibility is quite high for the rest of the year. We increased our targets for the full year. Our new annual revenue target is now around EUR 1.5 billion on an adjusted basis compared to EUR 1.4 billion previously, which represents a 50% growth versus 40% previously.

We also believe that we can exceed our initial target of 80% growth in VAS revenue for the whole year. We now also target an adjusted EBITDA margin increase by 200 to 300 basis points over the whole year compared to 100 to 200 basis points previously. This increase in profitability should be accompanied and Thierry has stressed this point just before by positive free cash flow generation for the full year.

Finally and based on our strong backlog and pipeline, we're also confident on growth perspectives for next year.

With this Thierry and I are happy to take questions.

[Operator Instructions] And your first question today comes from the line of Benjamin Thielmann from Berenberg.

This is Ben from Berenberg. Three, if I may. So first one is on the target for 2025. So in H1, you had an adjusted EBITDA margin of 16.7%. I know you're raising the guidance. I was wondering if you could give us a little bit of color where exactly is the operating leverage coming from in the second half of this year? Is it mostly the VAS outgrowing significantly the ESL revenues? Or is it coming from both segments? That's the first question.

Ben, yes, on this topic, I think that the trend that we saw in H1 will continue in H2. It's -- you're right, there is an overall positive impact coming from the VAS ESL mix, which is driving the variable plus margin up and also an overall improvement of the profitability of our offers driven by scale effect and cost optimization. So it's essentially driven by the variable plus margin and to a lower extent by the OpEx ratio.

You said you had a second question, Ben.

Yes. Second question would be the typical question you guys get. Maybe an update on the Walmart situation. Can you give us any update how many ESL or for how many stores did you deliver ESL so far? How is the rollout going? Any issues in terms of execution that popped up in recent weeks?

No, everything is going fine. We are always a bit reluctant to talk about nominative questions about our customers. But the program, this one is a bit more -- obviously, a bit more famous. So it's going well. Our 4 lines, by the way, or a set of lines of production are now as I speak, fully operational. And so the program is at a significant pace. And so there are -- there is significantly more now than 1,000 stores installed, and it's going fast and it's going well. So yes, that's what I can say.

Okay. Perfect. And then maybe a third question, if I may, is a general update on orders coming from EMEA clients. I mean EMEA has a little bit been under pressure over the last 12 months. So any color from what regions in particular or probably when we could expect new orders? I remember in the latest earnings call, you said that you expect that, let's say, the downturn in EMEA is over, you expect orders to grow in H2 year-over-year. Is that still the case? And yes, in what regions? Is it fair to say that you announced Eroski in Spain that this is something where we could expect more adoption to increase? Is it going to be in your home market? Is it going to be the U.K.? Any color on EMEA would be very helpful.

Yes. So actually, there was already -- as I think we mentioned earlier in July, a growth in order entries in Europe. So the downturn, I think it's a little bit -- let's say, let's not forget there is comparison basis issues here because we've been growing extremely fast with very accelerated rollout previously, so it gives a comparison basis, which looks like a downturn. But I think the business in Europe is showing good momentum. There is an excellent pipeline where we've announced a number of deals including also in the U.K. As you remember, we are optimistic about new deals announcements in the near future. Our win rate is excellent. Of course, there are some macroeconomic headwinds in Europe, and everybody know that, that can slow a bit decisions, but we definitely aim at reversing the trend during the course of this semester.

And yes, and I think the momentum comes, frankly, from many areas. There are, for instance, the Central Europe, Germany, U.K., but also the countries in which we have a very significant installed base are actually delivering growth because they have a lot of renewals of installed base to come. And since we have a lot of innovations over the past 5 years, it's a big -- it's a growth driver for us. So I would say, yes, the macroeconomic headwinds exist in Europe. It's slowing down investments in some cases, but there is a need for our solutions. And so the prospect is good for at least a part of our solutions, which really addresses the challenges, which is reducing cost and reducing OpEx for retailers, in particular.

And then maybe one last question. You mentioned that all the 4 EdgeSense manufacturing lines are now up and running. What would happen if you would sign another rollout in the U.S.? I mean I know Walmart is a different ballpark. But you could use those lines to also manufacture EdgeSense for a customer that is not Walmart? Or would you require a fifth line to achieve that? Because I would assume that all of the 4 lines you have now up and running, they're running at 100%, close to 100% utilization just for Walmart. So how would that work if another Tier 2 retailer in the U.S. would decide to install your ESL?

Yes, you're right, Ben. Actually, those 4 lines, we consider that they are fully dedicated to Walmart. Just keep in mind that we have also invested to a much lower extent, but we have also invested in our own line of product channel, which means that it gives us the flexibility to have a kind of a buffer period between the time when [ DMS ] will invest themselves because the model is still the same. We want to remain really CapEx light. So by definition, it's up to DMS to invest. If by chance we were to sign a contract with a limited visibility, we still can't produce EdgeSense on our own manufacturing lines.

[Operator Instructions] We will now go to our next question. And your next question today comes from the line of Flavien Baudemont from Bernstein.

In the presentation, you said that your BCN margin improved by 250 bps. Can you please elaborate on that? What mainly drove this improvement is due to the volume increase in volume by ESLs or mainly because of the surge in nonrecurring VAS revenues?

Then my second question is what did motivate you to increase revenue guidance? Is it because you are going to sell more asset to your main customers? Or -- is it something else? Or is it because something else?

And lastly, I heard in the news that you were considering a dual listing in the U.S. Can you tell me if it's true or not?

Flavien, thank you for your questions. I'll take the first and the last questions. And just on the first question regarding the VCM rate improvement, so we mentioned actually, it's a combination of 3 items, 2 being positive, the first one, which is the mix impact. So of course, since we have 14% of our revenues, which are VAS instead of 10% last year, and we've got a much better margin on VAS versus ESL. It's driving the VCM rates up, and this is explaining approximately 2.5 points increase in the VCM rate this time. We also have globally a better economic environment for ESL and VAS. It's approximately plus 0.7 points. And then it's got the ForEx impact, which has a limited but a negative one, minus 0.3 points. So all in all, that is explaining the change in the VCM rate between H1 last year and H1 this year.

The last topic regarding the dual listing. I don't know where it comes from, but actually, I can confirm that we are not working out this scenario currently. So we don't intend to get a double -- double listing -- dual listing in the U.S.

And can you just remind us the second question?

For the new guidance.

I do, I wanted to understand why you increased your guidance what motivated to increase it?

Well, I think we were ahead of our guidance already in H1. But as we explained in July, we wanted to carefully analyze the various effects which are not all going in the same direction of the dollar going down, which has an effect on our revenues because of the revenues in dollars, but at the same time, there is tariff. And so we were ahead in H1. So mechanically, we could have concluded that already in July, but there were a number of other effects that were -- took time to evaluate. And so it is not something really new, but it's just a careful evaluation of where we are now. And so we see now we are confident. On the same H2 roughly as was kind of anticipated plus a little bit more and then the advance that we have in H1. So that's why we waited until today to make it, but nothing really.

And could it be linked to a contract announcement by the end of the year?

No, because usually, the contract announcement don't impact the short-term revenues. So it would be totally -- but we have other entries on a daily basis. We have news on the business on a daily basis. So I mean -- but it would not be that because anyway, it would not have an impact on '25. There was anything very significant amounts, so that would not impact.

[Operator Instructions] And your next question comes from the line of Gilles Crespel from Alizés.

I'll have only one actually. It's regarding the Walmart contract, not for spec -- I'm not looking for specific customer inflows. But I just wanted to confirm on the contract, that the midpoint of the contract. You remember that the way you accounted IFRS meant that the midpoint would be significant. And looking at the current ramp up of your deliveries, when would you expect this midpoint of the contract targeting, let's say, 4,600, I think, point of sales, and is it legitimate to expect it somewhere in Q1 or Q2 '26?

Gilles, I think that you are referring to the impact of the weighted average price in IFRS.

Exactly.

Okay. And we said that it should reverse in the course of H2 this year, and we confirm it is the case.

Okay. H2 '25?

Yes, correct.

We'll now take the next question. And your next question comes from the line of Laurent Gelebart from BNP Paribas.

Laurent speaking. Three questions on my side. So the first one on the guidance upgrade regarding the turnover. Is it due to faster rollout with your main clients? Or it is basically broad-based within all your key clients? That's the first one.

The second one is, can you comment on your deal with NielsenIQ, your partnership, how is it going? And if you see better traction on Captana?

And the third one relates to your VAS upgrade regarding the guidance. So is it a recurring VAS or nonrecurring VAS.

And last point, you said that today you are comfortable regarding your level of growth for next year. Can you elaborate a bit on what makes you comfortable for next year, please?

Well, I'll start with the last question because I think the answer is very simple. We have a very large backlog and a large pipeline, weighted pipeline, which makes us very comfortable on the growth perspective for next year. So that's very simple. We have strong visibility, and we are confident enough to make that statement of solid growth for next year.

Regarding NielsenIQ, we're really -- we just signed it very recently a few months ago. So we are now entering pilot phases in some countries, and finalize -- working on the joint offering, et cetera. So we are more in the early stages of this partnership because it's a partnership that relies -- that includes developing joint offers. So it takes it of time. But we are -- it's moving well, and we are entering into operational pilots now.

And yes, Captana, I think I gave a bit of color also in July. Captana is now implemented in a number of retailers in many countries. We have momentum. We're improving the solution a lot. And we have -- we mentioned a few developments in some accounts like Carrefour, but there are others and in several countries. So Captana is a very promising solution. and the partnership with Nielsen will also contribute to the growth and the rollout of this computer vision in retail.

And yes, and the statement on VAS growing beyond the initial target is because our model is roughly -- is to bring value-added services on all our customers. When you grow a little bit faster, you always have also an impact on the VAS generally. So there is a natural impact -- positive impact of having an upgraded revision on the total revenue, and it implies also that we are positive on the VAS impact.

And regarding the top line, is it due to a faster rollout at your main client or it's broad-based?

Yes. I mean, it's generally speaking, as I said, the -- it's all the clients, the ones who are really in the process of rollout tend to try to accelerate because they know the return is good. They have tested it. At scale, usually, they are in the process of rollout, so they can go maybe a bit faster. So it's that, but it's also some deals that we signed and some of them we announced, I said that we were optimistic in new deals also in the near future. So it's a combination of things where we now have sufficient visibility based also on the momentum, the reality of the momentum of H1. So I think we gave quite an aggressive, I mean, an ambitious target at the beginning of the year. We are revising it upwards. Now we are a few 8, 9 months into the year, so we have a bit more visibility. But it's a combination of factors, which are both on ESL and on VAS and so it's -- it's a bit of everything. There is not one element.

Okay. And maybe a last one regarding the tariff situation in the U.S. I think you were trying to make your product exempted from potential tariffs. So could you elaborate on this? It has been changing or not? I mean -- and if you have tariffs, I mean, have you changed your mind on how to handle them?

No. I think that currently, we still have an exemption due to the fact that the product coming from Mexico are complying with the USMCA law. So that's it, but there is not much more that you can do. So that's the situation so far.

Your next question comes from the line of Benjamin Thielmann from Berenberg.

It's me again. Just one quick question. On your nonrecurring and noncash items in the P&L, which was EUR 21 million in H1 this year, and last year it was a little bit more than EUR 9 million. And I was wondering, it's written in the press release that most of that was related to IFRS 2. I was wondering whether any burn-outs related to your acquisitions that went into them as well? Because if I remember correctly, in H1 '24 last year, there were some burn-outs related to the acquisition of memory included. And I was wondering if that was the case this time as well?

No, there is no such item this year. So it's entirely due to the way we need to account for the performance share plans under IFRS 2.

We will now go to the next question. And your next question comes from the line of Valentin-Paul Jahan from Stifel.

Do you hear me well?

Yes.

Yes.

Perfect. So I have 2 questions on my side, please. The first one on margins and the second one on capital allocation. So for the first one, just if you could please confirm that you spent around EUR 300 million in the 4 production lines currently dedicated to Walmart and which are amortized over 5 years, therefore, generating around 60 million depreciation that are not included in your VCM calculation right?

So we confirm that the total amount that is funded by Walmart is $320 million that it is not fully invested yet in H1, but it will probably be fully invested by the end of this year. And yes, it is amortized over 5 years. And of course, since it is amortization, by definition, it comes into the P&L on the depreciation and amortization expense line, so it's not included in the VCM.

Okay. Perfect. And about the capital allocation because you have a lot of cash currently and you will stay cash rich even if it could decrease a little bit due to the effect of unwinding effect of the working cap. But did you define an M&A budget? And how much is it if it is defined? And how fast you ideally would like to deploy it? And what will be the perfect target? I mean what kind of solutions or technologies are you looking at? And in which geographies you are targeted? Any granularity on the M&A policy would be helpful.

Yes. So I will answer on the first one, which is, I would say, the capital allocation policy, and I will leave Thierry elaborate on the kind of M&A or external growth project that you might consider. First of all, we said that our policy is to accelerate the growth when possible through external growth projects. We said that we always want to remain below 2x EBITDA. And so far, when you have a look at the project that we are considering, there is no project which is going to lead us to 2x EBITDA net debt. So we still have a very strong firepower to do some M&A deals that we do not consider to do in one time and that we need to not consider to do in 1 or 2 years. So we've got multiple projects, different sizes. And of course, some of them could be funded through that. But at the end of the day, it's really very unlikely that we reach 2x EBITDA in debt very soon.

Yes. And regarding the, let's say, the potential things we're looking at, I mean, we've always been looking at the possibility of accelerating the development or the deployment of our strategy, we saw that obviously is it 2 years ago, 3 years ago with Memory and Belive. We look at things that essentially grow, I would say, the VusionData. So we have -- you remember, we have 3 main divisions, Vusion IoT, VusionCloud and VusionData. So it's essentially around the VusionCloud and VusionData. So essentially the vast area, which we want to accelerate, and there are 3 areas: the analytics world, retail analytics, retail media, which is a big topic coming -- going forward and obviously, AI. So all this is the core of what we look at with always the same sort of focus. We are about modernizing the physical part of commerce or the physical stores. That's what we do. We transform them into data assets into digitized assets into very automated data-driven. So that's still the same focus.

There's no diversification away from that. We really focus on that, but we build the portfolio that allows us to really maximize the impact for our customers and also simplifies the digitization by bringing different parts that are worth more than some of the -- each individual part as a system, as a platform. So that's what we do. And so as we said -- as I said, Thierry mentioned it, we have firepower. We are able to do things. It's in no rush to do things, but we look at carefully in terms of geography, I would say, there is a strong focus in the U.S., but also we're not neglecting Europe as the last 2 acquisitions 3 years ago were in Europe. So there is a focus in the U.S.

There are currently no further questions. I will now hand the call back to Thierry Gadou for closing remarks.

Thank you. And thanks to all for your participation. See you maybe this week for some of you at NRF Europe, which, for the first time, takes place in Paris. It's going to be a big event, and we are a big partner of that event. So it would be very visible if you join. And we'll meet again on October 22 for our Q3 sales figures. So have a good evening or afternoon. Thank you very much.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.