Hello and welcome for the Edenred Q1 2023 revenue conference call. Please note this call is being recorded. For the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions at the end. This can be done by pressing star one on your telephone keypad. I will now hand you over to Julien Tanguy, CFO, to begin today's conference. Please go ahead. Well, good morning. Welcome to the Edenred Q1 2022/2023 revenue presentation. I'm very happy to be with you this morning. As always, I propose we start with the executive summary on page 2. We share a great set of figures. Leveraging its platform advantage and its leadership positions, Edenred confirms the strong 2022 momentum with an excellent start to the year. Total revenue amounted to EUR 557 million, up 26.8% as reported, and +25.7% like for like. Operating revenue amounted to EUR 590 million, up 21.8% as reported, and +20.4% like for likes versus Q1 last year. The double-digit like for like growth is well-balanced across all business lines and geographies. Other revenue nearly tripled to EUR 38 million, thanks to strong business momentum and increasing interest rates. On ESG front, determined to increase its commitment on climate-related disclosure, Edenred has become an official TCFD supporter. TCFD meaning Task Force on Climate-related Financial Disclosures. Edenred is generating sustainable and profitable growth, thanks to the sound execution of Beyond22-25 and continuous tech and product innovation. Beyond plan means to scale the core, thanks to a segmented go-to-market strategy to further penetrate its core market and harness the potential of upselling in a context of increasing attractiveness of its solutions. Beyond also means to extend the scope Beyond the Core offer to unlock growth opportunities Beyond Food, Beyond Fuel, and Beyond Payments, thanks to new and innovative solutions, efficient cross-selling, and targeted acquisitions. Edenred increasingly invest in technology and product innovation to seize opportunities arising from new structural trends, such as working world transformation and the new era of mobility. In this context, Edenred confirms Beyond22-25 targets for 2023, i.e., like for like annual EBITDA growth of minimum 12% and annual free cash flow versus EBITDA conversion rate of minimum 70%. We move to Q1 highlights on page 4. Selling its platform, Edenred records an excellent start to the year. We move now to page 5, where we see that Edenred posted strong growth across the board in Q1 2023. The total revenue grew by almost EUR 120 million, coming from EUR 439 million to EUR 567 million, so a reported growth of 26.8%. This growth is powered by strong commercial momentum on both core and Beyond solutions, and Edenred is benefiting from the platform advantage, proposing attractive offers to its clients. On page 6, we contemplate the Edenred performance per business lines. The operating revenue growth is well-balanced across the 3 business lines. In employee benefits, operating revenue is up 23.7% year-over-year as reported. In fleet and mobility, operating revenue is up 16.1%. In complementary solutions, operating revenue is up 24, 25.4% as reported too. In Q1 2023, employee benefits accounts for 61% of Edenred operating revenue. Fleet and mobility represents 26%, complementary solutions accounts for 13%. Strong double-digit growth across the business lines and across the geographies as we see it on page 7. Europe operating revenue is up 20% as reported. Latin America is up 21.9%. The rest of the world is up 35.5%. In Q1, Europe represented 62% of Edenred operating revenue. Latin America accounted for 29%, while rest of the world is 9% of group operating revenue. I am now on page 8. On top of finance performance, Edenred is also paying a lot of attention to ESG since many years. As part of the ESG, climate is a key topic. In Q1 2023, Edenred became a TCFD supporter. It means that Edenred is formally expressing its support for the TCFD reporting framework and its recommended disclosure. Edenred is strengthening its information on climate-related financial risk and opportunities. It is complementary with our commitment to achieve net zero carbon by 2050 as announced during our Capital Market Day. Becoming a TCFD supporter, Edenred has joined the 4,000 global companies and institutions already members of this program. After our first set of numbers, let's move to the successful deployment of our new plan Beyond22-25, moving to page 10. Let's start with a synthetic view of our Beyond strategy, showing how we are scaling the Edenred platform as shared during the CMD in October last year. This plan is made of 3 levels to take benefit from an increased total addressable market and to generate profitable and sustainable growth. The first level, scale the core. We grow further in under-penetrated core markets as we did over the last 7 years, onboarding more clients and maximizing our large customer base of almost 1 million corporates, improving upsell, cross-sell, pricing, and minimizing churn. The 2nd level, Extend Beyond. We accelerate Beyond Food, Beyond Fuel, and Beyond Payments, designing and distributing new services and using a comprehensive platform experience. 3rd level, Expand Beyond, where we expand in new business opportunities. Scale the Core will represent 60% of Beyond Plan growth. Extend Beyond will account for 30%, and the remaining 10% will be generated by expand in new businesses. I propose to illustrate Scale the Core and Extend Beyond with some concrete examples. On page 11, let's zoom on the penetration of SMB segments with our large round of products, seizing the opportunity arising from new market paradigm. Quarter after quarter, we are improving our sales process efficiency, signing more and more SMBs, thanks to the Edenred powerful sales and marketing machine. Due to higher cost of living, companies are more sensitive to employee benefits. The number of new contracts signed with SMB grew by 30% last year. Face value on new business is 10% higher compared to our customer base at average. This is an example explaining how we Scale the Core. On page 11, we find some illustration of the second level of our strategy, Extend Beyond. We come from employee benefits, and since years, we are moving to employee engagement. In terms of offer, what does it mean? We started with a benefit management platform managing many types of benefits, starting with food and extending to gift, mobility, well-being, health. Those benefits can be designed and operated by Edenred or by other companies. We enriched the platform with new features, taking into account the needs of both clients and users, such as employee savings, bringing discount to the employees of our clients, negotiating rebates with some merchants, thanks to the volume we manage on our platform. Employee engagement, providing reward and recognizing performance and promoting life events. Social animation, driving corporate social agenda and monitoring engagements. Thanks to the Edenred platform, we are reinforcing Edenred value proposition for all stakeholders, corporate clients, users, and merchants. On page 13, we focus on our employee savings offer in two large countries, France and U.K. In the U.K., a new top UX interface, including a mobile app, has been launched in 2021. This app is accessible to 4 million users coming from 10,000 clients and connecting them to 275 brand partners. The app downloads almost doubled from Q1, 2022 to Q1, 2023. The number of orders have been multiplied by three, and 60% of the orders are placed through the app, i.e. with a mobile phone. In France, Edenred is number one on the work-until market. We are managing an e-commerce website named Meyclub. 7 million of users are eligible to access to Meyclub, where 2,000 e-merchants are connected. In Q1, 2023, we signed a new partnership with Carrefour Voyages, the travel agency of Carrefour. The whole catalog of Carrefour Voyages, more than 50,000 offers, is on Meyclub portal. Our users can spend their benefits directly on the Edenred platform, and they can also access the physical travel agencies of Carrefour. The network of Carrefour Voyages is made up of more than 100 shops in France, where Edenred users can meet 600 travel experts. It is an example of bundling employee savings and benefits. After employee savings products, let's pick another example of features available on the Edenred platform on page 14. On top of employee savings, Edenred also provides reward and recognition and social animation in some geographies. I turn the page, and I'm on page 15. To extend the reach of the Edenred platform, we are proud to announce the acquisition of GOintegro, strengthening Edenred leading position in employee benefits in Latin America. GOintegro is a software-as-a-service employee engagement platform provider operating in seven Latin American countries. It's a unique multi-module platform offering savings and discounts, reward and recognition programs, well-being contents, or pulse surveys. GOintegro is helping companies enhance their organizational culture and be an employer of choice. GOintegro has more than 500 clients and 1.2 million users. It's another step in the deployment of the Beyond strategy, demonstrating Edenred is the everyday platform for people at work. We said a lot about Beyond Food with those examples in the U.K., in France, and in Latin America. Let's take a couple of minutes to focus on Beyond Fuel, another way to look at the Extend Beyond strategy. I am on page 16. We already shared with you UTA One offer, addressing the toll market in Europe, allowing our clients to go from Poland to Portugal using a single box and receiving a single invoice at the end of the month. This toll service offer is improving with a new generation box. The name of this new offer is UTA One next. This new product is bringing to our clients increased transparency for fleet manager through real-time monitoring, simpler and faster management via dedicated app, and the integration of UTA Telematics service, providing complete overview of fleet at all time. This new box already covers 15 European countries. After the highlights of the quarter, we move to a more detailed performance presentation, and I am on page 18. You see the operating revenue bridge from like-for-like to published numbers. As already mentioned, Edenred operating revenue is up 20.4% in like-for-like, including slight positive currency effect and slight scope effect. The published performance is +21.8%. Our operating revenue in Q1 2023 stands at EUR 590 million. On page 19, I will comment the performance of geography, starting with Europe. Our operating revenue growth in Europe is above 20%. The growth of our revenue in France is up 13.5%. A solid double-digit revenue increase reflects the continued strong momentum of Ticket Restaurant, attracting new clients, notably on the SME segment. The performance also comes from the success of Beyond Food offers, notably of ProwebCE and Meyclub, the Edenred employee savings platform. In the rest of Europe, our two main business lines are performing well. Edenred records strong performance in employee benefits driven by solid growth on Ticket Restaurant offers, thanks to sustained commercial dynamism and progressive contribution of maximum face value usage. In fleet and mobility, Edenred delivers strong performance, notably thanks to the success of Beyond Fuel offers. After Europe, I propose a focus on Latin America on page 20. In Latin America, Edenred operating revenue is up 16% in like-for-like, with a +11% in Brazil and +28% in Latin America, Hispanic Latin America. In Brazil, operating revenue grows by 11% driven by a solid performance across both business lines. Edenred solutions benefits a solid commercial momentum on employee benefit solutions, continued ramp-up of Itaú partnership, contributing to further penetration of the SME segments. Edenred also delivers sustained growth in fleet and mobility solutions, supported by the continued success of maintenance and toll solutions, and despite the lower pump prices than in Q1 2022. In Hispanic Latin America, Edenred experienced marked acceleration of growth in fleet and mobility solutions, thanks to successful roll-out of maintenance offer in Mexico and Argentina and solid growth in employee benefit solutions. After operating revenue, we move to other revenue on page 21. Edenred other revenue stands at EUR 38 million to be compared to EUR 30 million in Q1 2022. Other revenue almost tripled thanks to sustained business momentum positively impacting the growth, and more specifically, due to a strong performance of end-of-year discount campaign, improving the level of growth in Q1 2023. E denred also benefits from the full effect of 2022 interest rates increase in Eurozone over the last few months and in Latin America and rest of Europe over the last quarters. On page 22, you can see the total revenue performance summing operating revenue and other revenue. The total revenue is up 26.8% in reported figures, standing at EUR 557 million. That's it. To conclude this presentation, let's move to page 24 to talk about 2023 outlook. Edenred is ideally positioned to capture growth opportunities. First, Edenred leverages its unique digital platform to deliver profitable and sustainable growth. Second, in a context strengthening the attractiveness of its solutions, Edenred further penetrates its core markets. Third, extending its portfolio of solutions, Edenred takes advantage of new growth opportunity. Fourth, further deploying its Beyond22-25 strategy, Edenred will maintain it in 2023, a sustained pace of growth in all regions and business lines. Edenred confirms Beyond 25 targets for 2023, 12% minimum EBITDA like-for-like growth, 70% minimum EBITDA to free cash flow conversion rates. The presentation is over. Thank you for your attention. I'm now available to answer to your questions. Thank you. Ladies and gentlemen, as a reminder, if you would like to ask a question, please signal by pressing star one on your telephone keypad. Our first question today comes from Simon Lechipre of Stifel. Please go ahead. Yes, good morning. Three questions on my side. In Brazil, how much of a drag was the oil price in Brazil in the first quarter? Secondly, on the outlook, can you give us a bit of color on what do you expect for the coming quarter? You mentioned a sustained pace of growth, what does that mean as obviously comps will get tougher from Q2 onwards. Lastly, I mean, I know it's a revenue call, but I would be keen to get your thoughts on margins and notably your expectation for the first half. Consensus expect Edenred revenue to flat or slightly down year-on-year. Is it a fair assumption for the first half? Thank you. Well, thank you for the three questions. Let's start with Brazil. You know Brazil represents 20% of Edenred operating revenue. In this country, we have two business lines that are quite comparable. That it means that it's 50% of our operating revenue that is coming from employee benefits and 50% that is coming from fleet and mobility. We did 17% growth last year compared to 2021, and during the 1st quarter, we did +11% in Brazil. Yes, you're right, Brazil is one of the country where the sensitivity of our revenue to fuel price is higher. When we look at the performance we delivered in Q1 this year, in employee benefits, we did better than what we did in 2022. The growth of Q1 2022 is above the growth that we've been able to deliver last year. In fleet and mobility, if we exclude the fuel price, it is the same, i.e., the level of growth in Q1 is above the growth of last year. Yes, we have an impact coming from fuel price. We are able to manage, and we've been able to grow during this first quarter, even with the negative impact of fuel price in Brazil. This is for the first question. The second question regarding the coming quarters and the pace of growth. First, we did very well in Q1. It is the same trend as what we had in Q4 last year. Why are we able to grow? It's because we have a solid base momentum. We see that our solutions are very attractive for clients due to the economic context. You know, in employee benefits, we help clients to protect the purchasing power of their employees in a context where cost of living is increasing. In fleet and mobility, we are here to help our clients to better control their costs and to be more efficient. All these contexts allow us to have a very good drive in terms of sales performance. When we look at the next quarters, we need to take few things in, into, in consideration. First thing is Q2. You know, last year in Q2, the fuel price was very high. We know that the comparison basis for fleet and mobility will be tougher in Q2. This has to be included in our forecast. Second thing is, we did a very, very good end of year discount campaign in Q4 last year. We know that the comparison basis is quite low-- higher. However, as I said, solid momentum in terms of sales. We are pushing also for a face value increase. As I explained, we confirm the fact that we will be above the midterm target we gave in October, so above 12%. Depending on what we've been able to achieve in Q1, we are confident in our capacity to beat those 12% minimum. Your third question is about margin and especially the margin at the end of the first half of the year. Definitely, we will be able to grow our EBITDA margin at the end of the first semester of 2023 compared to the first semester of last year. We explained last year that we want to invest to prepare and to fuel the growth of the coming years. This is what we've done in 2022, and this is what we'll do also in 2023. I confirm that our level of EBITDA margin will increase in 2023 compared to 2022. All those things are under control and well-monitored, obviously. As we are a scale business, we are able to increase the EBITDA margin this year. Just a clarification on this point. You are talking about the EBITDA margin excluding other revenue or total EBITDA margin? When we are talking of EBITDA margin, it includes the other revenue. Otherwise, we are talking of operational EBITDA margin. Regarding operational EBITDA margin, as I said, it is clearly monitored at our level. Last year we decided to invest, and especially at the end of the year, you know, we invest more to support the growth and to improve our tech capacities. For instance, we invested in data management and to see how we can take value from all the data we get from our clients. We will keep on investing this year, but everything, as I said, is extremely well-monitored. We are dealing with that to prepare the growth of the future quarters. Thank you. Very clear. Thank you. Thank you. Our next question now comes from Paul Sullivan of Barclays. Please go ahead. Yeah. Good morning, everyone. Just a few more from me. Just on Brazil, is there any update on the regulatory changes or the implementation of regulatory changes that we should be aware about? Could you just give us your best sort of guidance for other income for Q2 and going into the second half of the year? Also, I mean, presumably given the revenue, continued revenue outperformance, the cash flow should be looking good again this year, noting your sort of deleveraged position, any further appetite for M&A and the geographic priorities for M&A, as we go through into the second half and how we should think about those versus your thoughts on cash returns. Thank you. Thank you, Paul, for your questions. We start with Brazil and the regulation in Brazil. You know that we are talking of regulation in Brazil since November 2021 and all those changes. Maybe a quick look back to the main events that happened last year. First thing regarding PAT, you know, that is the meal program in Brazil. A few things have changed for PAT last year. In our view, PAT has never been so strong in Brazil. Why? Because in August 2022, PAT has been embedded in a law, and previously it was embedded in a decree. Today it is stronger. In this law, we know that payment terms and discounts have been banned. This is the first thing that is obviously positive. Second thing is that this law is good news for us because it confirms the PAT as a key socioeconomic program in Brazil. This is what has been done in the law in August 2022. Three topics have also been discussed and included in the law. Those three topics are interoperability, portability, and open loop. Regarding interoperability and portability, when we published the full year results in February, we explained that a committee was about to be created to manage the implementation of interoperability and portability. This committee has been canceled since we discussed that. Today, there is no framework designed to explain on to put in place those two features. It's unclear what is going to happen in the coming months, knowing that those features should have been implemented in May 2023. We don't know exactly who is in charge in Brazil. We don't know if it is the finance ministry or the labor ministry. For us, if those features are implemented, it means that a framework will have been designed, and it is not the case today. For us, it's highly unlikely that those two features will be implemented in the coming weeks or months. Regarding open loop, qualified open loop, well, this thing should be put in place in the coming months. This is something we know very well. We know in many countries we are managing a qualified open loop and closed loop all together. This is what we are doing in France. This is what we are doing in Belgium. We will implement this new feature depending on on the the the the tech implementation and the the availability of all those technical capabilities in Brazil especially regarding the acquiring the acquiring market. This is for Brazil regulation updates. If we move to your second question regarding the other incomes, you've seen that during the 1st quarter, we've been able to triple the level of other revenue compared to last year in Q1. Two things explain this performance. The first one is the fact that we did a very, very good end of the year gift card season last year. It means that we've been able to collect a lot of cash, all this cash has not been spent by our user before the end of last year. We have a high level of float in Q1. The second thing is the level of interest rates that are still increased over the last months. Our view for the next quarter is as follow. First, the level of float should go down as our users will spend all the money that has been accumulated during the Christmas campaign last year. In H2, we expect a decrease in interest rates in Brazil. The Selic is at around 14%. When we look at what the economists plan for the end of the year, the Selic should go down knowing that inflation in Brazil is around 6%. It will have an impact on other income. Yes, the level of interest rates will stay at this level in Europe, but they will go down in Brazil. On top of that, we have a very high level of protein to one. The level of other income should change a little bit. Third question about cash flow generation and capital allocation. At the end of last year, our fire power is above EUR 2 billion, knowing that you know that we calculate this fire power taking into account our S&P rating, which is BBB+. You know that we take this into account to calculate those EUR 2 billion. Our strategy in terms of M&A is still the same, knowing we are here to consolidate some markets. It is the case, for instance, in fleet and mobility. We know that in Europe we could have some opportunities to consolidate the market. We are also here to add features to the M&S platform. You know, it is exactly our strategy Beyond. If you look at what we've been able to do over the last 12 months, it's exactly what we've implemented with M&A. We did 3 acquisitions. We just announced the acquisition of GOintegro. GOintegro is the implementation of the Beyond Food strategy, i.e., we come to the platform with new features, and we are talking of employee engagement platform and employee savings. In October last year, we did the acquisition of IPS. IPS is a invoice automation company. We took those features, and we bring them to our corporate payment solution in the U.S. It is Beyond Payment strategy. One year ago, we did the acquisition of Greenpass. It is a Beyond Fuel strategy. Greenpass is a toll operator in Brazil. We did the acquisition of Greenpass to add our own toll service to the platform. This is how we look at the M&A strategy. We still have a pipe, and we are working on it. Our ambition is to make acquisitions to grow the company in the coming years, and to be able to come to our clients with the right offer. Okay. M&A over cash returns. That's brilliant. Yeah, thank you very much. That's, that's brilliant. Well done on the quarter. Excellent results. Cheers. Thank you, Paul. Thank you. Now we're moving on to our next question, which comes from Julien Richer of Kepler. Please go ahead. Good morning, everyone. Two questions for me, please. The first one on the inflation contribution to growth. Do you have any idea of if most of it has been passed through now or if it remains? What kind of growth could remain for the coming 9-12 months? The second point on competition in France, you posted a slight acceleration in like-for-like operating growth in Q1 in France. Is it due only to the inflation being passed through, or is it also due to the competition situation with maybe Swile and Bimpli integration being positive for you guys further penetrating the SME market in the country? Thank you. Okay. Regarding inflation contribution, you know that inflation has had the same impact on our business lines. If you look at inflation for fleet and mobility, last year, we had a positive impact coming from the fuel price. You know that it's around 2% of growth that came from a fuel price impact in 2022. This year, it will be the opposite, i.e., we know that the fuel price should be lower compared to where it was one year ago, especially during H1. Inflation in fleet and mobility will be a headwind this year compared to what it has been last year. This is the first thing. Regarding employee benefits, you know that our products help employers to protect the purchasing power of their employees, not only in food but also in mobility, in gifting. The face value and the maximum face value of those products has been increased last year in many countries. Around 45% of our operating revenue has been impacted by face value increase in the country where we have operations. You also know that once we have a new maximum face value that has been decided by your government, it takes time to go and visit all our clients to push the face value increase usage. We need to visit large account. We need to visit middle-sized clients also to explain that they can use these new face value. We know that the average usage of face value around the world is 85%, around 85%. We know that we will need two years to go after those 85% of the new maximum face value. Today, yes, we have an impact coming from face value increase. It will be the same in the coming quarters because we really need to go after our clients. When we don't visit our clients, we use digital touchpoints to push face value increase to our clients, especially for the SMB segments. This is the impact of inflation on our operating revenue. I don't come back to it, but obviously inflation has also an impact on other revenue as interest rates increase is a consequence of inflation. Your second question is about the competition in France. At first, you are totally right. We have an acceleration of growth in France as we've been able to grow by 13.5% in Q1. What we see is that the attractiveness of our solution is very high today on the market. We know that as many other markets where we are, the penetration rate is still low in France. With the sales machine we have been able to implement, we can find new clients, and we can grow in a country like France. Definitely, the performance we have is due to our capacity to go deeper in each segment and to find new clients, especially in the SMB market. I don't think we have an impact coming from the merger of Bimpli and Swile and all those things. The market is clearly under-penetrated. We are a sales machine. We have the right products. You know that the wallet we have in France allows company to give up to EUR 6,000 of purchasing power per year to each employee, it helps a lot in the context we know. We have a good UX with our solutions. We have the right go-to market, it is what explains the great performance we did in France in Q1. Okay. Thank you very much. Thank you. Now we're moving on to our next question, which comes from Justin Forsythe of Credit Suisse. Please go ahead. Hey, Julien. Thank you for this. Just a couple from me, if you don't mind. I want you to hit on the SME opportunity. Apologies, my line dropped for a second, if you've already spoken about this. I don't think you have. I mean, can you help us think a little bit around the sizing? I know you in the past gave a EUR 200 million number for meal and food TAM, at your Capital Markets Day. Just wanna understand if you can parse that between enterprises and SMEs, given I imagine enterprise spend quite a bit more than SMEs. Also kind of what percentage penetration of that opportunity do you expect over time, perhaps within your three-year timeframe? I know you expect to win quite a few contracts compared to what you were doing before, and obviously you've seen nice progress in that. The next question is around tolling solutions. I think you talked a little bit in the slide deck around UTA within Europe. Perhaps you can talk a little bit about the moats around the tolling business. I imagine there's quite a few different tolling operators. I think you said there's 15 in the European region. I guess maybe you could talk a little bit around the moats there, and I think that's mostly a fleet-related tolling solution. Would there ever be a propensity to move into, say, rental car agencies or a consumer-oriented model to utilize these quality integrations you have across, you know, several different countries in Europe? Maybe if you could just remind us the size of tolling, within the fleet and mobility segment. Thank you. Okay, Justin. Thank you very much for your questions. Very precise question. If we come back to the first one regarding SMB, and the way we see penetration and how is the behavior of small company compared to enterprises in terms of face value and money that is given to the employees with our solutions. First, the penetration in SMB is still very low. We took few examples during the capital market day, but in France, for instance, the penetration rate for SMB is below 10%. To give you an idea, there is something like 1 million SMB in France, and only 10% of them are using Ticket Restaurant. It's a very, very low penetrated market. Regarding the money that is given by a large company, compared to what is given by SMB, it can be amazing, but I can tell you that the money that is given by SMB is at least as high as what enterprise are giving to their employees. I think that when you see what we are going to achieve in terms of new sales, and we explained that during the presentation of this morning. When we discuss with a new client, we see that due to the cost of living environments, our clients are happy to give more money to their employees. You see that when we sign a new client, we are 10% above the face value that is given by, I would say, our portfolio of existing clients. For me, there is no big gap between enterprise and SMB when it comes to the face value that is given to their employees. Regarding the penetration, as I said, it's still very low in SMB in many markets. For large account, the penetration rate is higher, but we all know that and we know that we still have a lot of things to do on the SMB segment. Regarding regarding UTA and more specifically the tolling business, we have many products in Europe for the fleet and mobility business. You know, we have obviously the fuel card. We signed partnership for EV charging last year with ChargePoint. We propose to our clients VAT refund services, and it is, I would say, the same pay points as a toll in Europe. When I say that we go, we signed a partnership with a toll operator in 15 countries. You know that in Europe, in each country you have a toll operator. If you want to use, if you want to cross Europe, from Poland to Portugal, if you don't have the box of U TA, you will have to have something like 15 box on your windshield to go through the toll booths. What we are doing for our clients is that we propose this service, and as I said, you have a single box to go through many countries. On top of that, you receive only one invoice at the end of the month. Obviously, it's a product that is dedicated to what we call CRT, so Commercial Road Transportation. It is for companies that are going through many countries, so who are doing cross-border transportation. We also have some clients, obviously, in countries where we come with a, with an offer that is used only for one country. We are in a B2B business, so our clients are the clients we have for fuel card and for other services. We will, we don't go after our B2C clients in Europe with this kind of offer. We stay focused on B2B. A couple of follow-ups on that, Julien, if I might. I guess what I, what I meant on the tolling solution as well would just be rental car agencies in theory, which would be B2B. However, instead of the end user being a fleet management company or, you know, a truck operator, it would be more of a, you know, vacation-oriented type of traveler. Mm-hmm. On the initial SME question in terms of. I I totally appreciate that the face values are probably similar. I guess one of the things I was trying to get at was there's way more employees. I guess you could do some sort of average, you know, number of individuals per employer calculation to get at what you think the split of the 200 million is between each. Maybe just. I do imagine the 200 million is skewed towards enterprise for food and meal. Well, Justin, I'm not sure I get what you mean by EUR 200 million. You mentioned that we said two things during the CMD about that, but I don't get it indeed. Sorry, maybe it was. Yeah, it was EUR 200 million was the TAM that you gave me, right? Yes. It's a total addressable market? Yes. Yeah, exactly. I need to check that, and maybe we could discuss. Not a problem. This topic later. Yeah, I come back to what you said on toll, and you take the example of a car rental company. I don't see how we can address this market with our solution today, knowing that when you rent a car, you don't have this kind of solution in the car by definition. I'm not sure that the car rental company will be able to recharge their clients with the what they have to pay. I worked for this industry many years ago, but I don't see how we could manage that. However, what you say is interesting because we explained during the capital market day that we are working on a B2C segment in Brazil. You know, we did the acquisition of Greenpass. One of the clients of Greenpass is a digital bank. We are working with them because this digital bank allows its clients to use a tag from Greenpass. Indeed, obviously, we are not a B2C company, so we are not selling our tag directly to the end user, but we are giving our tags to end user through a digital bank. This is an example of what we intend to do, and this is part of the expand Beyond strategy, that is a further level of the Beyond plan. This is a way to go after B2C clients through a digital bank. It's quite similar to what you are saying about car rental companies. Yeah. That's super helpful, Julien. Thank you so much. Appreciate it. Thank you, Justin. Thank you. In the interest of time, we kindly ask the analyst to limit yourself to two questions, please. We're moving on now to Geoffrey d'Halluin of Bank of America. Please go ahead. Hi, good morning. Geoffrey d'Halluin from Bank of America. Two quick questions for me, please. The first one is on the oil price sensitivity. I guess, you know, you mentioned, you know, probably it was 1 year or 2 years ago, a kind of sensitivity which was about EUR 7 million on group's total revenue for a 10% change in oil prices. J ust wanted to clarify if it was, you know, still a kind of good numbers to have in mind in terms of sensitivity. Secondly, in terms of other revenue, you mentioned, you know, you had the benefit from the fund accumulated from the gift vouchers business in Q4 into your Q1 numbers. If we look at, you know, the other revenue in Europe, it was EUR 22 million in Q1. Could you share with us, you know, how much of that, you know, is driven by the gift vouchers term, which is probably not going to be replicated in the next coming quarters, please? Thank you. Well, thank you, Geoffrey. First question regarding oil price sensitivity. Well, as I said, 11% of the operating revenue of Edenred is sensitive to fuel price. You know, we worked a lot over the last years to decrease the sensitivity of our revenue to fuel price. We did that, changing the pricing methodology we use in all of our operational companies. Why? Because we are not able to master fuel price and we want to limit the sensitivity of our revenue to fuel price changes. We have the Beyond Fuel Strategy. With the Beyond Fuel Strategy, we come with new services to our clients. Obviously, the services we propose are not sensitive to fuel price at all, as they are totally different services. Taking that into account, I think the sensitivity we gave two, few years ago has changed. As I said, today, only 11% of our revenue is sensitive on fuel price. What I can tell you on top of that is that the fuel price that is important for us is fuel price at pump. It's not fuel price on the financial market. Depending on the country, the fuel price at pump is more or less correlated to the fuel price on the financial market. For instance, in Brazil, we know that fuel price at, as pumped, is following the fuel price on the financial market, which is not the case in Mexico, for instance. We gave some information about that during the Capital Market that we did in October. You can see, depending on the region, the percentage of our revenue that is sensitive to fuel price. For instance, in Europe, in 2022, 25% of our revenue is proportional to fuel price, while in Brazil, it's 51%. To give you an idea of the sensitivity of our revenue, depending on the geography. Your second question about other revenue. I don't communicate on the breakdown of floats per product or per country. Keep in mind that 85% of our float is in Europe. When I say Europe, it's Eurozone and non-Eurozone countries. 15% of our float is in Latin America. As I said, yes, we have a positive impact coming from the gift campaign we did in Q4. This level of floats coming from this campaign will go down in the coming months. I would not give you the breakdown of float per solution, per country. Okay. Thank you very much. Thank you. Now our next question comes from Harry Martin of Bernstein. Please go ahead. Oh, hi. Good morning. The first question I have is for a bit more detail on the fleet and mobility performance. You talk about very strong commercial momentum and vigorous growth. I wondered if we could go into a little bit more detail about exactly which markets you're seeing that strength in. Also if you have any update on the launch of the U.S. fleet and mobility business, targeting the SMEs that you were very excited about at the capital markets day, that would be useful. Secondly, just to go a bit deeper on that M&A firepower, you know, adding to that EUR 2 billion, I think, you know, if you take the midpoint of the guidance range, that's probably another EUR 500 million this year after dividends. Do you have any trigger points internally for, you know, when the balance sheet becomes too inefficient and if opportunities on the M&A side don't come up? Or are you confident that, you know, there's enough bolt-on opportunities and potentially bigger deals out there that you would want to hold on to that cash? Thank you. Okay. Thank you, Harry. Regarding fleet and mobility, two questions indeed. One about strong commercial momentum and another one about the U.S. and the product we launched last year. Regarding the commercial momentum, we see high level of demand from our clients for offers. It's true, not only for fuel card, because obviously, as I said, in a context where fuel price is still high, you need to control your cost and you need to be more efficient. We have a clear traction on this product, both in Latin America and in Europe. On top of that, you know, we have our Beyond ` Fuel Strategy. The new services that have been launched over the last yearsThat are performing extremely well. It is the case, for instance, of maintenance in Brazil. You know, we launched a solution that is very innovative to manage the fleet maintenance of our clients. We build a network of repair shops in all the country in Brazil. We take in charge the maintenance of the car, i.e., we manage the relation with the repair shop. We do the negotiation of the pricing for our clients. We have technical people that are able to negotiate with the repair shop. We bring a lot of value to our clients. The consequence is that we've been able to grow a lot with this new service. Because we are successful in Brazil, and because we have an international platform to deploy, we decided to go to Argentina and Mexico with this product. We see that we will have the same success as in Brazil. This is an example of new services that are fueling the growth on top of our, I would say our core products. This is an example, but our ambition is really to add many services to the platform. I could take another example in Europe, for instance, with what we are doing in terms of tax return services. It's a true pain point for our clients. With the solutions that are proposed by UTA, we are here to solve the pain points and to help our clients to collect the VAT in many European administrations. This is for the commercial momentum in Fleet and Mobility. Regarding the U.S., we launched an offer. It was in the summer last year. We are targeting the SMB market. We don't want to compete with the big players, such as FleetCor or WEX. You know, the penetration rates in large accounts in the U.S. is very high, probably above 80%. Our ambition is really to focus on SMB market. We signed a partnership with Visa, and we launched our product. We named it Essential in the U.S. It's a fully digital and mobile offer. Totally a digital customer journey. You can manage the transaction that are allowed with the card, and it's a real-time flexible control. I think we built a great solution. We are at the very beginning of the journey. We have a monthly meeting with the teams in the U.S. to see the traction on the market. Obviously, today, it's still very small compared to the business we are managing around the world. We know that we will need a few months and quarters to understand the market and to be able to find our clients and to see how we can speed up the growth in the U.S. Your second last question about M&A. Yes, you said we have EUR 2 billion firepower at the end of 2022, and this firepower should increase during this year. I confirm that year after year our firepower will increase. We are generating high level of free cash flow. Even if we pay 100% of our dividend by cash, yes, the firepower will increase at least by EUR 500 million a year. As I said, we still have the ambition to grow through acquisitions. We are working on that, so we are announced regularly some acquisitions that are quite small. We look at many things on the market. As I said, we are looking at companies bringing new features to our platform, like we did with GOintegro. You know, GOintegro is a very good example of what we can add to the Edenred platform. GOintegro is a company with operations in Latin America in seven countries. We will be able to add those features to our offer in those countries. Due to the number of clients we have, we will be able to cross-sell, so to generate growth on top of the portfolio of clients of GOintegro. In terms of balance sheet, what will we do if we don't make acquisition? I think that we will reopen the question next year. Today, clearly, as we already said, during the capital market day, our ambition is to grow through acquisitions. Great. Thank you very much. Thank you. Thank you. Our last question for today comes from Paul Charpentier of Bryan, Garnier & Co. Please go ahead. Good morning. Thanks for taking my question. Congrats on the very strong results you delivered this morning. I wonder if you could give us a bit more detail and maybe some more update on how you're progressing with the increase in face value of Ticket Restaurant on the client side. I know it takes usually two years between the legal measures taken by a country and the adoption by your clients. I wondered if you could tell us how satisfied you are with the progression. Maybe second question related to the first one. I remember you mentioned that 45% of the geographies addressed by Edenred saw a revision in the maximum face value of the Ticket Restaurant. Was there a progression in that in that figure? Thank you. Okay. Regarding the second part of your question, under 45% of the operating revenue of Edenred, where some decisions have been taken by government regarding the face value level. Yes, this is what we explained and what we stand today, knowing that inflation is still there. We know that in some countries where we already had some face value increase last year, we could have other face value increase this year. I think that what happened last year in France is a good example. You know, when I said that the face value moved from 11 to 13 EUR, it has been done in 3 times. First decision, the 1st of January last year, because the Ticket Restaurant was indexed to inflation, first increase of 2.6%. Because of the inflation level in France, the government has decided to increase the face value of Ticket Restaurant by 4% in October. The 1st of October it has been another increase, 4%. The third increase of the year that has been available in January 2023, it's more than 10%. At the end of the year, it's a +17% of maximum face value. You know that, you see that it has been done, I would say quarter after quarter. This is something we could have in the coming months in some countries where we already had face value increase last year. How does it work? The sales pitch to encourage clients to increase the face value. Well, indeed it depends on the size of the clients and because we know our clients very well, we have a dedicated sales team and I would say sales know how to push face value increase. For instance, when you are managing large accounts, you prepare the negotiation of a salary increase with your clients and with the HR director. We know that when you are an employee, it's always good to receive both salary increase and benefit increase. It's good for the employee, and it's also good for the employer, as because you have a tax break on the Ticket Restaurants, it is less costly to give both salary increase and benefit increase rather than just a salary increase with the same percentage. When we manage SMB, it's quite different. What we are doing is that we are using data. What do we do with data? You know, data, and the fact that we have many clients and many users allow us to know what is the average face value given by all the companies in a city. The second thing we get is the average price of a lunch in a city. Taking all those things and managing properly our data, we can show, we can demonstrate to our clients that the level of their face value is low compared to their peers. When we say their peers, it's all the companies that are, for instance, in the same city. To propose a new face value to a SMB, we use, we use internet, you know, every month or every three months, you need to visit our website to place an order for your employees. When you visit the website, we are able to push a pop-up and we propose a new face value, and we push to explain to our clients that he should increase the face value of his employees. This is how it works. You know, today, all our websites are connected to our CRM. When we see that someone has hesitated to push a face value on the website, we can call him back and have a discussion with him to close the deal with the new face value. As we already said during the presentation, on top of that, each time we have a new client in front of us, we are pushing for highest face value. You see that we are able to sell face value to new clients that are above the average face value of our clients. We have a face value that is 10% above the face value of the portfolio of our clients. Very clear. Thank you. Thank you, Paul. Thank you. Okay. As there are no further questions, I'd like to hand the call back over to Julien Tanguy for any additional or closing remarks. Thank you very much for attending this meeting this morning. As we already explained, we did a very, very good start to the year in Q1. We will be happy to talk to you again in July with Bertrand to present the actual results of 2023. Have a great day, and thank you again for being with us this morning. Bye-bye. Thank you. That concludes today's call. Thank you for your participation, ladies and gentlemen. You may now disconnect.