Q3 2024 Vusiongroup SA Corporate Sales Call Transcript

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

Question: Valentin-Paul Jahan - Stifel, Nicolaus & Company, Incorporated - Analyst : Just I have two questions. The first one will be that I thought that for the H2, the Q3 will be stronger than Q4 because retailers are generally very busy during Christmas period. And so Walmart, which is a major customer, will have concentrated its rollout in Q3 rather than Q4. You are expecting a very strong Q4 like last year, that didn't particularly pose a problem last year. But on the other hand, it is possible that deployments at the end of the year could shift into January since retailers are very busy during this period. So minor delays could lead to shift between quarters, I would say. So my question was, what is the risk in terms of -- what is the risk in this respect? I mean, you reiterated your guidance with confidence. But what do you think about the likelihood, maybe of delivery shift into January instead of December, for example? What would be the impact? If we assume, for example, all the revenue scheduled in December shifting to January?

Question: Valentin-Paul Jahan - Stifel, Nicolaus & Company, Incorporated - Analyst : So you will -- you would say that in terms of the guidance, it's absolutely not at risk currently, you would say that?

Question: Valentin-Paul Jahan - Stifel, Nicolaus & Company, Incorporated - Analyst : Okay. And maybe just a last one regarding Walmart. I just wanted to get a small update on the likelihood of -- or I mean, the possibility that Walmart took or taken a second provider of electronic shelf label. I know that your product is a little bit different. Now it's more a rail -- digital rail but a digital shelf, I would say. But is there any risk currently since there is no exclusivity with Walmart that Walmart hire a second operator, I would say? Second supplier, I would say. What do you think about this risk?

Question: Aurelien Sivignon - ODDO BHF - Analyst : I've got some follow-up questions on order entries mainly. And the first one was, can you say roughly the breakdown in Q3 between Europe versus Americas?

Question: Aurelien Sivignon - ODDO BHF - Analyst : Okay. All right. So maybe --?

Question: Aurelien Sivignon - ODDO BHF - Analyst : And could you just follow up on Europe. So basically, you still expect EMEA to account for 50% roughly of total revenue, more or less. So I think it means roughly a flat Q4 in Europe year-over-year, which is still a big improvement versus previous quarter and especially Q3. So should we understand this is the combination of the multiple, I would say, new midsized contracts in many sectors, as you just mentioned earlier during the call? Or are there bigger rollout expected in Europe that will lead to make you confident in Q4, but also next year for back-to-growth scenario, I would say?

Question: Aurelien Sivignon - ODDO BHF - Analyst : Okay. And last one, if I may. Still on order entry, I would like to understand if there is already a contribution from Ace Hardware in Q3. I believe it's a franchised model. So I would assume that it would maybe take some time to get the orders and that you have recorded a small amount in Q3, but please correct me if I'm wrong.

Question: Laurent Gelebart - Exane BNP Paribas - Analyst : So I have three questions. The first one relates to the guidance. So you maintained the over EUR1 billion sales for the year, even though you have cut the contribution of nonrecurring VAS by EUR20 million to EUR30 million. So my question here is, do you have a large buffer in your guidance previously? Or do you see acceleration of hardware deliveries this year compared to your initial expectation? That's the first one. The second one is, can you elaborate on the number of production lines being ordered by Walmart as we speak? And the last one, you were also mentioning that you are working on new use cases with Walmart regarding VAS services. So could you elaborate if you can on what kind of services are you developing as we speak? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 28, 2024 / 5:00PM, VU.PA - Q3 2024 Vusiongroup SA Corporate Sales Call

Question: Johannes Ries - Apus Capital GmbH - Analyst : Two very short questions. First, also on Europe. Maybe can you give us an update about maybe the countries which are the real drivers for next year? I think UK is one of the focus and maybe the Nordics. And secondly, you mentioned that there's a huge acceleration of the Walmart sales next year -- to Walmart next year, some of fourth line. But what about capacity, which is left for other customers in the US? How much capacity you have to serve further customers and how much this holds back maybe the signing of contracts with other players in the US because maybe of a lack of capacity or have you enough maybe reserves outside Walmart even to serve these additional customers?