Full Year 2024 Vusiongroup SA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ben Thielmann - Berenberg - Analyst : Yeah, hey guys, good evening. A couple of questions from my side if I may first one is on vas or on recurring vas in particular. You have guided for 80% VA growth revenue growth in 2025. I was just wondering if you could give us some color how this could be split between recurring and non-recurring VA, because if I factor in the Walmart numbers, it's actually quite likely that your EUR160 million cloud connected ESL will probably double. Is it fair to say that recurring bass is also going to grow with roughly 100% and then nonrecurring bass should go with roughly 33, 34%. Any color on these two-line items would be very helpful.

Question: Ben Thielmann - Berenberg - Analyst : Okay, fair. Maybe the second question would be on Captana in particular. Maybe you can help us a little bit like how was the year on the software and on the hardware side for Captain in particular? Do you see strong demand for the cameras? Is it below or above your expectations that you had for 2024?

Question: Ben Thielmann - Berenberg - Analyst : Okay, that's helpful. Thank you, Terry. Maybe one more question from my side would then be on memory. So as I, as I understand, memory revenues are mostly generated in France, which is a fairly saturated market already. So, I was wondering if you could give us a little bit of color maybe in terms of what demand we can expect for memory. Do you already have some pilots ongoing for international customers, So, we can expect that maybe memory is one of the best software solutions that could see an uptake in 2025 and then basically the same on Engage. I think by the end of 2023 Engage was installed in 105 stores. Maybe some update on Engage and memory would be very helpful.

Question: Ben Thielmann - Berenberg - Analyst : Mm, okay, that's super helpful Tri thank you. Maybe you'll follow up.

Question: Ben Thielmann - Berenberg - Analyst : Okay, understood. Maybe follow up question, you mentioned on Engage that you have an experiment ongoing with the hypermarket chain in France. Is that a company you did business before with? So that is a company that has already your ESL installed, or is that a totally new company in your customer base and they're simply interested in Engage and something else?

Question: Ben Thielmann - Berenberg - Analyst : Mm, okay. Okay, perfect. Thank you very much, Thierry. I go back into the queue.

Question: Aurelien Sivignon - ODDO BHF - Analyst : Congratulations for the results. So, I've got third questions, mainly on the outlook for.

Question: Aurelien Sivignon - ODDO BHF - Analyst : Hello? Can you hear me?

Question: Aurelien Sivignon - ODDO BHF - Analyst : Okay, sorry for the lag, good, okay, good evening, gentlemen. I've got three questions on the, outlook. First, expected growth acceleration in '25 seems stronger than expected, and I was, actually wondering if, it's, might, also come from a faster roll out, of the second tranche with Walmart or this is only as a result of the winds you just mentioned. Recently, then second question on margin development this year do you expect the variable cost margin to grow again in percentage terms in '25, or should we let's say assume the 100 to 200 bits increase EBITDA margin would be more likely the result of a lower OEC to sales ratio. And finally regarding investment, excluding assembly line. '25 CapEx to sales ratio was quite lower than the 5% to 7% sweet spot. So should we expect a more normative, a more normalized space of investments going forward in '25. Thank you.

Question: Valentin-Paul Jahan - Stifel, Nicolaus & Company, Incorporated - Analyst : Good evening, hold, do you hear me well?

Question: Valentin-Paul Jahan - Stifel, Nicolaus & Company, Incorporated - Analyst : So, congratulations for your excellent results first, and, I have, a few small questions please on, maybe on more on industrial matters. Regarding production lines, could you please confirm that Mexico is still a relevant location for this, for the three remaining lines to build given the current trade situation with Trump? And I I'll let you answer this question and then I will follow up for the next question.

Question: Valentin-Paul Jahan - Stifel, Nicolaus & Company, Incorporated - Analyst : Okay, so Mexico and Vietnam, and is it possible to build a line in the US or it's completely impossible given the economic questions.

Question: Valentin-Paul Jahan - Stifel, Nicolaus & Company, Incorporated - Analyst : Okay, and maybe a question about your pricing policy because if tomorrow the US were to apply high tariffs that will weaken the economic equation for your hardware solutions, do you think it will make sense, probably to adapt your prices so as to transfer the value added from the tag itself to the. Or the digital system to the to the use of the software or the communication protocol or something like that in order to invoice as much as possible from the American entity for local service and to cross the border with the hardware with the lower price possible to reduce the impact of tariffs. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 26, 2025 / 5:00PM, VU.PA - Full Year 2024 Vusiongroup SA Earnings Call This will not be a debated bypass given that following the change in tariff policy, the profit initially recognized. In Mexico or Vietnam or whatever will then be organized in the US so it will represent a win for the US country. So, do you have a can you give us some color on this please?

Question: Valentin-Paul Jahan - Stifel, Nicolaus & Company, Incorporated - Analyst : Okay, thank you.

Question: Laurent Gelebart - Exane BNP Paribas - Analyst : Yes, good evening, gentlemen. So, a couple of questions on my side. The first one regards the order index for the for the fiscal year 2024. If we exclude Walmart, which has been a massive win for you, what is the underlying trend in terms of order index? That's the first question. The second one is, do you expect to be able to clinch, large, retailers in the US in 2025 following your NRF exhibition and the fact you were mentioning that half of the TOP100. Companies we're attending your event in that area and the last point regards. The Trump tariffs. So, if Trump decides to increase the tariffs in Mexico by 25% or whatever, we don't know really, do you expect your guidance to be bulletproof, any kind of tariffs being implemented by Mr. Trump?

Question: Laurent Gelebart - Exane BNP Paribas - Analyst : And maybe on that one, I mean a follow up question regarding your solution a chance and the fact that you get you will be able to pull the solution with light harvesting within the store. Do you see, your competitors, coming closer to yourself in terms of solution or are they still according to you miles away from what you can deliver today?

Question: Laurent Gelebart - Exane BNP Paribas - Analyst : Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 26, 2025 / 5:00PM, VU.PA - Full Year 2024 Vusiongroup SA Earnings Call

Question: Adam Gildea - BofA Securities - Analyst : Hi, thank you so much for taking my question. Just a quick clarification question on my side on slide 20, when you went through the breakdown of VCM improvement of the 590 basis points improvement that come from ESL and JS margin, would it be possible to give a little bit of color on what percentage or a broad split of that between recurring vast increasing as a percentage of overall vast revenue and maybe any improvement in the actual ESL hardware margin. Thanks.

Question: Adam Gildea - BofA Securities - Analyst : Okay, that makes sense thanks. So much.

Question: Johannes Ries - Apus Capital GmbH - Analyst : Yes, good afternoon. Congratulations to really outstanding numbers and a really great forecast. Only two short questions from my side. The first question regarding the impact of the currency. In the past, the strong dollar was always negative. Will in '25 this turnaround if the dollar gets further strength, is it good for you or is it still a track? And the second question, maybe on the pipeline you can update a little bit how maybe the pipeline looks outside the traditional groceries business, which is by far the largest, but maybe how much the other vertical that the retail now starts to pick up. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 26, 2025 / 5:00PM, VU.PA - Full Year 2024 Vusiongroup SA Earnings Call

Question: Johannes Ries - Apus Capital GmbH - Analyst : Well, there is a chance that the dollar gets further strength for maybe good support.

Question: Johannes Ries - Apus Capital GmbH - Analyst : Super thanks a lot. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 26, 2025 / 5:00PM, VU.PA - Full Year 2024 Vusiongroup SA Earnings Call

Question: Gilles Crespel - AlizTs - Analyst : Good evening, Thierry. I would like to extend the usual congratulations for the results and the momentums perspectives. Thank you very much for taking my question. If you allow me, I'll have two very quick one for Thierry and one for Thierry, well, one for two for our beloved CFO. One is there is an IFRS restatement related to Walmart. Contract. I just wanted to check whether it would continue over the new tranche of the well, the 4,600 stores or whether this was some, so is it about a cover contract or was it related to the first two phases and then I'll go on with my two follow up questions.

Question: Gilles Crespel - AlizTs - Analyst : Okay, for all Walmart stores, correct? Yes, thank you very much. One little one still for you is, could you give us the status of the rollout with this large customer you mentioned 200 stores at the end of H1. Where did we stand at the end of H2?

Question: Gilles Crespel - AlizTs - Analyst : Excellent, and thank you very much. And the last one is a little wider. Either of you may shed some light. Fusion has been deploying its. Technology based on both open standards and some more closed, well, and I guess Walmart was part of the pressure to open some, to use some blue ops, etc. And now that Fusion is getting bigger and bigger, could you give us some light on what Fusion position is going to be against large software editor specializing on retail, be they ERP or more specific. Specific or dedicated software such as the price or optimization software, etc. There is a whole array of software editors, and I would be most interested if you could shed a little light on this. Sorry for being possibly a little open question for a conclusion question but thank you for your lis.

Question: Gilles Crespel - AlizTs - Analyst : Okay. Thank you very much.