Earnings Call: Q3 2021

Oct 21, 2021

Ladies and gentlemen, welcome to the Benares 2021 Q3 Revenue Conference Call. I now hand over to Mr. Guillotin, the CFO. Sir, please go ahead. Thank you very much. Good morning, everybody. I'm happy to be with you today to comment on the Q3 2021 revenue of Eden Red. I propose that we move to Page 2 of the presentation. So thanks to a strong performance in Q3 2021, Edenrad is now aiming for 2021 EBITDA in the upper half of the target range. 3 key messages for these introductions. First, Eden Ref delivered strong sales performance, leveraging its distribution and innovation capabilities to further scale its business and improve customers' experience. Our Q3 2021 operating revenue stands at €393,000,000 I. E. 30 percent like for like, both versus Q3 2020 and versus Q3 2019. We compare 2021 to 2019 as 2019 is the pre COVID reference year. Growth rates accelerate versus 2019 in all regions in Q3 2021 after an already good H1 2021. We delivered double digit organic growth in Q3 2021 versus Q3 2019 in all business lines and all regions except in Latin America, Hispanic, which was still badly impacted by COVID-nineteen. And year to date, operating revenue increased by 14% like for like versus the 9 1st months of 2020 and plus 11% like for like versus the 9 1st months of 2019. 2nd message, given the strong performance in Q3, Eden Red is confident in its ability to generate a full year 2021 EBITDA in the upper half of the previously indicated EUR 620,000,000 EUR 670,000,000 target range, assuming no new major restrictions related to the health situation. Then assuming no major pandemic surge, Eden Red is reinstating its pre COVID next frontier targets for 2022 with 3 KPIs. First one is like for like annual operating revenue growth at a minimum of 8%. 2nd one is the annual EBITDA like for like growth at a minimum of 10% and the third one, an annual free cash flow EBITDA conversion rate at a minimum of 65%. Let's move to Q3 highlights and let's talk about innovation, innovation in distribution channel, innovation in product evolution, innovation in customer satisfaction, and we will also focus on ESG. I move to Page 4. So, Head and Red is leveraging innovative partnerships. In Brazil, we are deploying a partnership signed with Itau in 2019. This partnership deals with the distribution of meal benefits. I remember you, Itau is a leading privately held bank in Brazil, owning 1,000 branches across the country. And Itau is managing the biggest B2B client portfolio in Brazil, especially on the SME market. We continue to see a good ramp up of this partnership in Brazil, which delivered a strong double digit quarter on quarter growth in 2021, thanks to the dedicated organization implemented to manage this powerful sales channel. In the U. S, we are integrating CSI, our B2B payment platform, with key B2B players to target specific segments. The B2B climate market in the U. S. Is large and fragmented. And to address these large markets, we are joining our forces with top tier U. S. Banks such as Citi, and it allows us to win major deals such as Havas, for instance. On top of partnerships with banks, we also partner with software editors, Sage, to target smaller companies. Our solutions are available in the AP module of Sage ERP. I move now to Page 5. We are looking now at an innovative solution whose name is Plasticless. With Plasticless, you can access your benefits account with your mobile phone, thanks to a 100% digital onboarding and without receiving a plastic card. This solution is a clear gain for all our stakeholders. It is more eco friendly. You don't need paper anymore. You don't need tar anymore and you don't need to manage delivery anymore. It is more efficient for HR teams as a simple order on our website is enough and everything is done. And it is much more comfortable for the users. The solution is available within 24 hours. You can pay with your mobile as we are providing access to the free x pay, Google Pay, Samsung Pay and Apple Pay plus 800 Pay in some countries. And you can access to connected meal delivery voucher platforms. We have more than 160 platforms connected to our solutions in the world. I'll give you some illustrations of this new solution. In Taiwan, we issued more than €30,000,000 of equipments. And in Europe, we have now 6 programs running in 5 countries. I am now on Page 6 to share with you how we use digital to deliver higher customer satisfaction. First, keep in mind that patient for customer is a core value for EdenorRed, I. E, one of the 5 values of the company. The level of satisfaction of our users is recognized by rewards and external certification. The rating of our apps in App Store and Google Play is high, 4.4 stars and 4.5 stars. And at Edenhead, we believe the employee engagement is driving customer satisfaction. With Event Voice, we are measuring the engagement of our teams and the way we engage our employees is also recognized by top employer institutes and a great place to work in different countries. And we have put in place digital tools to take customer centricity one step further. With digital, the expectations of our stakeholders are now driven by B2C standards, and we use automated tools to get real time feedback. We have launched a global digital network of scale program that covers 80% of group revenue. It covers all our stakeholders, I. E, merchants, users and corporate clients. And with both code and outfeedback, we can see how they perceive the relationship with us. Hub feedback is done right after an interaction with Edenrad with digital tools or with our customer care and call feedback is done 2 days after an interaction with Edenrad. We are managing this program using MEDALIA, one of the best tools of the market, and this program demonstrates how our merchants, user and concurrent clients are at the Earth's operations. I move now to Page 7 and to environmental, social and corporate governance. ESG is an important topic for us, and the strong involvement of Eden Red is recognized by rating agencies. Our VE rating improved strongly, moving up from 47 to 59 out of 100. Our AA rating has been confirmed by MSCI, and NREL is part of the FTSE4Good index for the 10th year in a row. All those rating agencies are considering we are among the best performers of our industry. Transparent communication and governance strategies are also recognized. We'll take 2 examples: the General Meeting and Gender Business University Award received from Responsible Capitalism Institute and the Responsible Strategic Plan Award received from EIM and CAPANG for our next full year plan, 20 nineteentwenty 22. After the Q3 highlights, we are now moving to our Q3 2021 performance, and I am on Page 9. As explained during the introduction, we have posted a double digit organic growth versus both 2019 2020 in Q3. This strong performance in Q3 leads us to a strong year to date performance, plus 14.4 percent like for like growth compared to 2020 and plus 10.7 percent like for like growth versus 2019. We accelerated our growth versus 2019 after an already good strong H1 2021 performance. I move to Page 10 to look at our performance, our business line. You can see on the left hand side of the slide the growth acceleration in Q3 versus H1. And regarding the business lines, in Q3 2021 versus 2019, we have posted double digit growth across all business lines. Employee benefits accelerated sharply and is up 10.1% compared to 3.3% in H1. This acceleration is driven by virtual accounting solution and by the dynamism of the SME segment. The reopening of partner merchants also contributed to this performance. Fleet and Mobility reported strong double digit growth in Q3 2021, in line with the performance delivered in H1. This performance was driven by a robust sales momentum and the success of our Build Fuel strategy. Co complementary solutions is up 15.9% compared to Q3 20 19 and decelerating compared to H1 where some specific purpose programs linked to the situation were still in place. I move to Page 11 to contemplate our performance per geography. In Q3, our revenue growth accelerated significantly across all regions versus 2019. In Europe, Eden Red delivered a 14.8% growth like for like compared to 2019 after 11.2% growth recorded in first half twenty twenty one. In Latin America, the growth represents a like for like increase of 8.7% on the Q1 of 2019 and is an improvement on the growth reported in the first half of twenty twenty one, plus 6%. In the rest of the world, the operating revenue was 19.3 percent higher like for like compared to Q3 2019. This performance is and despite the continuing subdued volumes in the hotel segments. On the Page 12, I assume in the strong performance of Europe. In Q3 2021, France and rest of Europe are growing double digit versus 2019. Versus 2020, it is important to underline the high comparison basis. In 2020, we benefited from a strong catch up due to accumulated benefits during the strict lockdown period from March to May. In Q3, we delivered a faster organic growth in both France and rest of Europe, supported by good sales momentum in all business lines and in all segments. The positive trend on the SME segment continues. In 2021, we benefited from catch up related to merchant reopening, especially restaurants in France. We noticed limited disruptions for ticket restaurant usage despite implementation of the COVID certificate. And we also delivered the strong growth in fleet and mobility solutions across that region, thanks to higher traffic level and beyond fuel strategy illustrated by UTA 1, the tollbox, which is continuing its geographical extension. This is it for Europe. Now we zoom in Latin America on Page 13. We posted high single digit organic growth versus 2019 in Q3. In Brazil, Eden Red delivered a double digit organic growth versus 2019, while Hispanic Latin America continues to be impacted by COVID related restrictions. Fleet and Mobility Solutions delivered strong growth in both regions, notably thanks to the continued rollout of Bionfuel services, such as toll and maintenance. Solid sales performance in employee benefits in Brazil, notably benefiting from the promising ramp up of the Itau partnership and from a gradual improvement in the health situation. The review of our operating revenue is now over. I move to Page 14 to comment on other revenues. At the end of September, the other revenue stands at €32,000,000 It is a 10% increase like for like compared to 20 20. Please note that we have increasing interest rates outside of Europe. We have no increase in euro short term interest rates. And I remember you that more than 80% of the float is located in Europe. And we have significant negative currency effect outside Europe. To conclude with the Q3 performance, I move to Page 15. At the end of September, our total revenue stands at €1,162,000,000 up 13% like for like compared to 2020 and up 10% compared to 2019. I remember you that the total revenue is the sum of operating revenue and other revenue. I move now to the last part of the presentation, the outlook and targets on Page 17. So Eden Red will continue to leverage its platform to generate sustainable and profitable growth in 20 21 beyond. We are more confident for 2021, thanks to a strong Q3 performance and assuming no new major restrictions related to Ed's situation, Edenrad is confident in its ability to generate a full year 2021 EBITDA in the upper half of the previously indicated target range of EUR 620,000,000 EUR 670,000,000. It means an EBITDA which will reach at least €635,000,000 I. E. Circa 13% increase versus 2020. And thanks to our performance in 2021, we are reinstating Next Frontier targets assuming no major pandemic surge. I remember the Next Frontier target, A like for like annual revenue growth of 8% minimum, a like for like annual EBITDA growth of 10% minimum and an annual free cash flow EBITDA conversion rate of 65% minimum. This is the end of the presentation. I thank you for your attention, and I am ready to answer your questions. Thank you. We have the first question from Simone Le Chico from Stifel. Please go ahead. Yes, good morning. Three questions, if I may. First of all, looking to Q3, could you give us any color on the phasing of the performance during the quarter? And basically, what does that mean for Q4? And secondly, on the EBITDA guidance, just wondering what would be the drivers that would put you at the very top end, so basically, EUR670,000,000? Percent? And lastly, on digital adoption in employee benefits in Europe, if I remember right, it has increased by around 10 points last year. So just wondering if you have seen the same pace this year? And basically, where do you stand on the digital rate overall in Europe at the moment? Thank you. Okay. Thank you, Simon. So your first question about the phasing in Q4. Well, first of all, you know that Q4 is a big quarter for Edenrad. You know that we are managing especially the gee voucher for the peak season in for Christmas. And we are only at the end of October, meaning that we have 2 months in front of us before the end of this quarter. So what we see is that the trend that we have in Q3 was pretty good with this increase of 13%. Now we know that this Q4 is important and we still have uncertainty to manage. We have some potential impact of restriction, especially in Eastern Europe. So we are confident, as we said, to reach at least €645,000,000 of EBITDA for this year. And then it will depend on our performance in still uncertain context. Then when it comes to the digital rate in Europe, so we have a strong impact of the COVID and because COVID has been very profitable for us in terms of digitalization of our solutions, we have been able to propose a digital voucher in countries where our digital was not the number one solution for Edenrad, like in France, for instance. So year to date, increase in digital is in line with what we've done last year. And we believe that it will continue till the end of this year. And for instance, in the country where the paper was the most important before the crisis in France, we have now more than 50% of our volume that has been digitalized, and we see the trend continue in the coming months. Okay. Just a quick follow-up. Are you ready to share the September exit rate? No, we don't give this kind of information. And we did, as we said, a good performance during the quarter. And well, I would say that the trend is good during all the quarter. So no exit rate in September to be communicated. Okay. Thanks a lot. Thank you. Next question from Julien Ritchie from Kepler. Please go ahead. Good morning, everyone. Two questions for me, please. The first one on pricing and the situation in Brazil. Usually, the country is suffering from bad pricing during downturn. Is it recovering now? And what kind of pricing do you see in this region? And the second one, if you can give us a little bit of granularity on the virtual accounting strategy and impact. So you talked about more than 200 signatures over the last 12 months. How has it accelerated? And if we can have the split by geography and what kind of clients you are signing now? Thank you. Well, so first question regarding the pricing in Brazil. Well, you know that the pricing is something which is moving fast in Brazil, meaning that when we are entering a crisis, then the pricing is going down. And we know that when the business is recovering, we know that the pricing can go up, and it's something which is quite cultural in Brazil. So due to the crisis, we had some kind of pressure on the client side. However, when we look at the performance that we've been able to deliver in Brazil, especially in Q3, We've been able to grow plus 12% compared to 2019. So we've been able to very well. And when we said that we have a pressure on pricing, it's true for the large and national accounts. It is less true for the SME segment. And as we said, the partnership with Itau is working very well. So we are able to get new clients on in Brazil. So well, as I said, it's something which is cultural, and we hope that once the economy will recover, we will be able to manage that. Then regarding the virtual quarantine. So as you said, in H1, we have communicated about the number of contracts that have been signed. We are now above 300 contacts signed since the beginning of this year with the virtual accounting. And I would say that the performance that we are doing with the move from physical content to digital content is a continued success that is part of our employee penetration strategy, meaning that you know that the digital content allows us to go further in penetration with large accounts, and the digital counting is also something key to conquer new clients on the SME segment. What we see in terms of trend in the work organization of our client is that working from home is becoming more and more important, meaning that more and more companies are signing agreements with employees to implement working from home. And each time that the company is deciding to put in place 2 days per week of working from home. The question of how people are going to get their lunch is coming, and we have the right solution to answer to this need. So the number of contracts that we are signing is increasing. And as we said since the beginning of this year, it will take time to deploy digital content in on the market, but we think that the trend here and that the trend will last. Next question from Geoffrey Dallin from Bank of America. Please go ahead. Hi, good morning everyone. This is Geoffrey Dalien from Buffet Securities. Two questions from my side, please. The first one is regarding your growth rate. You've posted in France in the Q3, so I guess it was up about 2%. Well, how do we need to think about France for the next coming quarters, especially compared to the growth rate you are now guiding for the next frontier plan? And maybe any sense on the start of the gift vouchers business for the Q4? And my second question is regarding inflation. Would you mind to remind us what are the main effects of inflation in your business, maybe the sensitivity you've got on the fleet and mobility part, but also any opportunities you can add on the benefits and rewards given higher input costs? Thank you. Okay. So your first question about France and the growth rate versus 2020. Well, to understand these growth rates, we need to understand the context of Q3 last year. As I said, in 2020, we had this strict lockdown from March to May in France, meaning that our users got their benefits, but did not spend it during this period of time, okay? It means that a lot of money has been accumulated till the end of June. And then during the summer, the users spend their benefits. So it had a big impact on our revenue. And you can see that the growth between the Q3 2020 and the Q3 2019 was of 9% last year, which was quite big and was a consequence of the spend of the benefits during the summer. So when we look at the 2% this year versus 2020, it is a consequence of what happened last year, meaning that we have a comparison basis, which is not at the level and which is explained by the applicable year 2020. So clearly, we need to take into consideration the growth versus 2019, so plus 12% to judge the performance of France in Q3. Now regarding Q4 and the debaucher, it's too early to say. We are at the end of October. The key voucher period has not started yet. It starts at the beginning of November. So I cannot give you any information about that. Then regarding inflation. As you said, we have to look at inflation through our different business lines and also through our cash positive situation. So regarding fleet and mobility, when we look at what fleet and mobility represents in our business, so it's 25% of our total business. Among these 25%, we have some revenues that are linked to the pricing of fuel. And we have our billion fuel strategy, which is doing well. So the revenue coming from Beyond Fuel strategy is growing month after month. And as we already explained, when we look at the total revenue of the group, 9% of this total revenue in 2020 was sensitive to fuel price. So what does it mean? It means that when the fuel price at pump is increasing, it has an impact on our revenue. And what I say is very important, meaning that what is important for us is not the oil price, meaning the crude on the market, but it's really the price that you pay when you fuel at pump. And you know that this fuel at pump is including the margins from the all costs. It includes it is including taxes. So it is not totally linked to the oil price in the market. So keep in mind that each time the price of fuel is moving by 10%, it has an atypical year and that the price of oil went down in Q2 last year and that the comparison between 2021 2020 is not easy to compute. So if the price of oil is going upward, then it has an revenue, but it is quite limited. Then regarding inflation with employee benefits. Yes, inflation with employee benefits can be positive for Edenrad because in order to safeguard the purchasing power of its employees, company can decide to move the face value up, meaning giving more money for their employees for their launch. So this is the first impact of the inflation. The second impact is that when we are discussing with the government, they can decide to increase the tax back level of employee benefits to give more purchase power to the citizens. And we are pushing, for instance, in France to move the maximum face value of TK restaurant from €11,000,000 to €15,000,000 And inflation could help this kind of proposition to be adopted by government. And last thing regarding inflation, if the inflation is coming, we will see the long term interest rate going up in the first time and then the short term interest rate should also increase. And you know that we are investing our money, our float at short term. So for us, what is important is the level of short term interest rate. So it could increase, but we know that it will take time. Great. Thank you very much. Thank you. Next question from Paul Sullivan from Barclays. Please go ahead. Yes. Good morning, Julien. A couple for me. Firstly, can you just talk about how your relationship with the food delivery platforms continues to evolve? And who needs who more, particularly in the context of the recent Just Eat announcement with Sodexo and that sort of move into payments as well? And then secondly, I think in the recent publication, you talked about some agreement with the world's largest e commerce company, presumably that's Amazon, presumably that's in employee benefits. So could you talk about that and also add some more color around your employee benefit strategy in the U. S. More generally? Thank you. Okay. Thank you, Paul, for your question. So first, our relationship with the food delivery platform. Well, our relationships are good indeed, and we are signing more and more agreements. As I said now, we have more than 160 mid delivery platform connected to our platform. It means that we are signing more and more agreement with them and we are signing agreements with, of course, the top players that we all know. But we are also signing agreements with local platform, which is key for us because when we are signing this kind of platform, it is to improve the user experience. And in many large cities, people want to be able to order their meal through local platforms. So the number of platforms that is connected to us is increasing, and I strongly believe that it will continue. So I would say that it is today one way to use your benefits and obviously digital is key to have access to this kind of platform. And today, the relationship we have with a large number of platform is a key differentiator compared to our competitors. And we can see that in the countries where digitalization is still growing. It helps a lot when you visit clients to explain that you are able to order your meal through so many platforms. Then regarding the agreement with a large e commerce company, you said the name, I will not add anything to that. And yes, it is a new client in the U. S. Where we are developing our employee benefit solution. You know that in the U. S, we have a commuter benefit, which allows people to use public transportation to go from home to their office. And then we are still pushing for ticket restaurants to sign deals looking like what we did with Spotify last year. Well, so it takes time. I mean, we have no tax break on this kind of benefit in the U. S, but we are working on that. And it's something we are working on and that we try to develop. And do you think that's really now starting to gain a bit of traction because I think there's always been a bit of skepticism that you can push ticket restaurant in the U. S? Well, we have a lot of discussion with new clients. But without tax breaks, it takes more time to explain then the benefits of ticket restaurants. So yes, obviously, it will take time to develop in the U. S. With this kind of product. But we believe that there are still opportunities. And we are also working on the public affairs side to see how we could implement tax break in the U. S. To improve our capacity to develop this business. Okay. That's very interesting. And just finally, just on that food delivery platform point, has there been a noticeable change in the economics between you and the platforms over the last of 12, 18 months last 12 months? No. No, no, no change in the economics. You have the same contract with them. Great. That's very kind. Thank you very much. Thank you. Thank you. Next question from Ed Yong from Morgan Stanley. Please go ahead. Hi, good morning. 2 for me as well. First of all, Latin America is obviously strong growth in Q3. Could you help us understand the catch up potential in Hispanic Latin America? The statement calls out a couple of factors including Mexico. So can you maybe help us quantify the potential benefit we could have in Q4 versus Q3 with the situation changing there? And then just because you raised it in the presentation around plastic list, I just wonder if you could talk about how widespread you expect that to roll out across the system. And it sounds like it might have a sales benefit given it seems like it's high satisfaction, easier, quicker to install, etcetera, but also potentially maybe a margin benefit, no delivery, etcetera. So could you perhaps quantify either of those? Thanks. Okay. So first question regarding LatAm. Yes, we've been able to post huge growth in LatAm, especially in Brazil. And we see that in Hispanic Latin America, the growth is not as high. So we believe that it's a potential we have. We know that the health situation in this country is changing almost every month. It is the case in Mexico, but it's also the case in other countries in Latin America. So I would say that our capacity to rebound in this country is intact. We believe that the potential of growth is still there, but the end situation that we cannot manage has an impact on that. So once the health restriction will be behind us, we are quite confident in the fact that we will be able to grow again in this geography. And I think that's what we are doing in Brazil. It's showing that it is possible and that it will come. It really depends on health restriction. And then regarding plastic waste, so well, we are at the beginning of the journey with that. We think that it is a kind of ultimate stake toward digitalization, meaning that it's really a huge step in terms of user experience, meaning that you can get your benefits with a few clicks on your mobile. We do what we call in app provisioning, meaning that once you have installed the Myo Dendrite application on your phone, you just have to push one button and to go through your wallet to install your virtual card. And it takes really a few minutes and it allows the employer to give access to benefits very quickly, which is key today because everyone everybody wants to have this kind of services very rapidly. So we know that we will deploy this kind of solution in many countries. And today, to give you an idea, we've been able to manage 40,000,000 transactions through mobiles during the 9 1st months of this year. This number has doubled compared to last year. And we see that the use of mobile, which is key for the 10 of solution, is really booming in a lot of countries. And we really believe that this kind of solution is first, innovative and then is expected by our users. Can I just follow-up on the Latin America one? Would you say that there's a sign that the health situation is improving? You mentioned Mexico and return to school in September in the statement. Is that a kind of indication you're making that the trajectory there is improving in terms of the health situation? Or is that kind of one data point amongst many and it's still either uncertain or unchanged from where you've been in sort of Q2 or Q3? What we see is that the situation has improved in September. But because in these countries, the vaccination rate is quite low, then we don't know how it will happen in the coming weeks. And what we've seen since the beginning of the pandemic is that 1 month can go better and the month after, the health restrictions are back. So it's difficult to say what will happen in the coming weeks or months. We hope that vaccination will improve, but today it's not the case yet. Okay. Thank you very much. Thank you. Next question from mohrab Lamidi from Exane. Please go ahead. Yes, hello. Thanks for taking my question. Actually, most of my questions were answered, but I have one that's there regarding the gift vouchers. I think that last year in Q4, you I mean, there were some regulatory tailwinds in France and Italy benefiting to give vouchers. So I was wondering how much of a boost was that for you in Q4 last year? Thank you very much. Well, yes, we had the regulatory tailwinds last year. You said it was in Italy and in France mainly, but we had also other tailwinds in Greece, for instance, or in Romania. So in Italy, it is still the case this year, meaning that the cap of gift voucher has been doubled and it will last till the end of December this year. And in France, we added, but it came very lately. Last year, it was at the beginning of December, so quite close to Christmas, so it was late. Just keep in mind that Geek Ocher only represents 15% of our operating revenue in Q4. So it can improve the performance, but the impact is not so big and that's it. Next question from Andre Julien from Deutsche Bank. Please go ahead. Yes. Good morning, gentlemen. Thank you for taking my question. Most of them have been on the kind of rate you are seeing on the different families of products you have? Secondly, about competition, what do you see in the different countries? You know that we've talked a lot about swine in France, but what do you see both in Europe and in LatAm? And third question about M and A. You've been talking early this year about your search for additional acquisitions, especially in the corporate payment. Could you give us some more color about what is going on? Thank you. Okay. So first question, penetration rate. Well, if we look at our different market, employee benefits or fleet and mobility, so on employee benefits, the penetration rate of our solution is about 25%. So it's still quite low. And well, the good news of what we see today in the market is that our capacity to sell to SME is still there. As we said during the half year publication, we've been able to sign the same number of contracts with SME during the 1st 6 months of 2021 compared to the 1st 6 months of 2019. So penetration rate is still low, and we see that we are still able to have new clients, thanks to digital counting for the large accounts and thanks to digital for the SME. On fleet and mobility, the market is also a low penetrated market and we see that we still have big opportunities in Europe and in Latin America. Then it depends on the segments. But we see that regarding the SME, the potential is still there and we have many, many opportunities to develop this business. Then regarding competition. So obviously, we have competitors. When we look at our different markets in employee benefits, we have at least 4 competitors per market. But if you look at markets like Brazil, we have more than this number competitors. We see we heard a lot of things about Swire in France during the last week, but for us, it's not a growing concern. As we said, we've been able to grow our market share by 1 percent per year during the last 4 years in France. We are the leader by far in digital. I remember that we have 40% market share when we take digital and paper in France and that our market share in digital is above this level of 30%. And what we see with Swale is that they announced a capital increase of €170,000,000 They already announced €100,000,000 capital increase during the last 2 years. So we see that they need a lot of money to enter the market. It confirms that the barriers to entry are there. And we see that today they are in France, and they need this huge amount of money to take position on the market. So nothing new for us. And keep in mind, as we said, that we are going to generate this year at least €645,000,000 of EBITDA, and we are able to invest this money to innovate. And I think that plasticity is a good illustration of what we can do today in terms of digitalization on the market. Thank you. For M and A? Yes. And for the M and A, so yes, we have we are looking at some acquisitions, especially in the U. S. With the corporate payments. You've seen that the multiples are quite high. And when we are looking at an asset, we want to be sure that it has the right value in terms of, obviously, client portfolio, in terms of teams and in terms of technology. So we are looking at some acquisitions, but nothing is done yet. And maybe we will find few things before the end of this year, but it will depend on the quality of the assets that we will find on the market. And yes, we are focused on bolt on acquisition today. Thank you very much. Thank you. Next question from Joanna Jourdan from ODDO BHF. ODDO BHF. Two questions from me, please. The first one regarding CSI. I think at H1 release, I think you said you would expect CSI to grow in H2. So do you still expect this trend to continue? And could you also give us some colors in terms of growth trends by demand verticals at CSI? And my second question is regarding BeyondShield strategy in the fleet and mob. I think this segment is seems to be trading very well. So how much does it represent now in the Fit and Mobility division? And could you also give us some color on the growth rate in the BeyondShield Solutions compared to the Shield Solutions? Thank you. Well, so first question regarding CSI. You know that the sales momentum at CSI is still good. We are able to compare new clients with our own sales team, but also with the partnership we've signed and we talked about the partnership with Citi. So the number on the volume of transaction is growing. However, we still have some verticals where the volume is not back to what it was before the crisis, and it is the case in the hospitality vertical. You know that business travel is not at the level where it was before the crisis. So on this vertical, we have not recovered the volume we had before the crisis. However, as I said, we see a good sales momentum and the level of transactions on other verticals is growing again. Then regarding Beyond Fuel. So today, 1 third of our fleet and mobility revenue is coming from our billion fuel strategy. I remember you that what we call billion fuel strategy is the development of new services, which are not linked to a multi energy card. So we are talking of maintenance. We are talking of tolls. And we intend to become the one stop shop for the fleet managers. So we've built some platforms, especially in Brazil, to manage the fleet managers' needs. And well, we see that this business is growing fastly. And we will develop this kind of product in other countries using the platform that has been built in Brazil, and we are going to deploy these services in other Latin America countries. Thank you. Thank you. There is no more questions. Back to you for the conclusion. Well, thank you very much to attend this meeting, and thank you for your questions. And I hope to talk to you soon.