Good morning, everyone, and thank you for joining us today for Pluxee's third quarter fiscal 2026 revenue call. I hope you are having a good start to the summer season.

I'm Pauline, and I'm pleased to be here with you today to share our first 9-month revenue performance. I'm pleased to be joined by Aurélien, our CEO, and Stéphane, our CFO.

Before we begin, let me walk you through today's agenda, which you can see on the next slide. Aurélien will start with highlights and key figures for the third quarter and the first 9 months of fiscal 2026, including an overview of our commercial momentum.

Stéphane will then take you through our top-line performance in more detail. Finally, Aurélien will conclude with our outlook, including an update on the situation in Brazil, before we open the floor to Q&A.

With that, I will now hand over to Aurélien.

Thank you, Pauline, and good morning, everyone. I'm pleased to be with you today to present our performance over the first 9 months of fiscal 2026.

Let me start with the key takeaways. First, we continue to make progress towards our full-year business targets.

This was supported by continuous momentum in new client acquisition and resilient net retention, confirming the relevance of Pluxee's value proposition in a more demanding environment. Second, business volumes growth strengthened during the third quarter.

Employee benefits volumes continued to gain momentum, while other products and services benefited from the lower comparison base in public benefits. Third, revenues evolved as anticipated.

Operating revenue growth remained positive over 9 months, including the third quarter performance reflecting, as anticipated, the initial effects of the PAT reform in Brazil, as well as some headwinds from the current macro environment. Finally, we confirm our financial objectives, based on the performance delivered over the first 9 months and the robustness of Pluxee's fundamentals.

Let me now turn to the key revenue figures for the quarter and the first 9 months. In the third quarter, total revenues reached €312 million, down -3.3% organically year-on-year, and up +0.9% on a reported basis, supported mainly by positive currency effects.

This performance was anticipated, and mainly reflects the impact of the reform in Brazil on our take-up rate since the beginning of Q3. Looking at the first 9 months, total revenues reached €967 million, up +2.7% organically, and +2.3% on a reported basis.

Overall, Pluxee's 9 months revenue performance remained positive, keeping us on track to deliver our full-year objectives. Let me now focus on our commercial performance.

Over the first 9 months of fiscal 2026, we continued to make progress across our key business indicators. First, new client development reached €1.2 billion in annualized BVI.

This puts us significantly ahead of our plan, given our full-year target of more than €1.3 billion. Second, net retention remained resilient at 99% in BVI, excluding the temporary delay in the ordering of a large employee benefit program in Romania.

It reflects robust client loyalty and active portfolio management, while facing pressure from end-user portfolio trends in certain markets. Third, face value growth remained a major structural driver of net retention.

In fiscal 2024, increases in average face value have generated €3.2 billion of cumulative additional BVI, meaning that we are already ahead of our cumulative 3-year target of more than €3 billion. Let's now take a closer look at new client wins.

New client development reached €1.2 billion in annualized BVI over the first 9 months, close to 20% growth year-on-year. This performance was broad-based across all three regions, with particularly robust momentum in Latin America, and especially in Brazil, despite the evolving regulatory environment.

SMEs continue to play a key role in client acquisition. This segment represented more than 32% of new client development over the first 9 months, when excluding the large Consip public contract in Italy.

It is ahead of our 30%-plus target, and was supported by strong contributions across geographies, notably from Brazil and Southern Europe. In a nutshell, we are ahead of our plan, and expect to exceed our annual development target of more than €1.3 billion, supported by a dense and diversified pipeline.

Let me now turn to net retention, the second key pillar of our commercial performance. Over the first 9 months, net retention stood at 99% in BVI, excluding the temporary delay in the ordering of the large employee benefit program in Romania.

This performance reflected, first, client loyalty maintained at a high level across client sizes and geographies, confirming the strength of Pluxee's value proposition in a more demanding environment. Second, face value also continued to grow across all regions.

Over the first 9 months, increases in average face value generated €0.8 billion of additional BVI, bringing the cumulative contribution since fiscal 2024 to €3.2 billion. This means that we are already ahead of our target.

We also continue to see further upside, notably in Continental Europe, where recently announced legal cap increases are taking time to fully materialize. Third, cross-selling has continued to gain traction, driven by both employee mobility and gift benefits across Europe and Latin America.

Lastly, the evolution of our end-user portfolio remained negative, as some clients in several markets tend to freeze recruitment or reduce headcount as a result of the current macroeconomic context. I will now hand over to Stéphane, who will take you through our financial performance in more detail, starting with business volumes.

Thank you, Aurélien, and good morning, everyone. It's a pleasure to be with you today to present our financial performance, focusing on our top line for this Q3 2026.

I will start on slide 10 with, as usual, business volume issued or BVI, as they remain an important leading indicator of our underlying commercial momentum. Total business volume issued reached €6.6 billion in Q3 2026, reflecting a +9.4% organic growth.

This was supported by, first, the positive momentum in employee benefits BVI, which grew organically by +8% to €5.2 billion in Q3 2026. Employee benefits accounted for close to 80% of total business volume issued, and marked a clear improvement compared to H1, with all regions contributing to growth over the quarter.

This confirms the strengthening of our underlying commercial momentum during the quarter. Second, other products and services BVI returned to positive growth, delivering +15% organic growth in Q3 2026.

This improvement was primarily driven by Continental Europe, as the Q3 2025 comparison base in public benefits was lower. Overall, Q3 confirmed a stronger volume trajectory compared to H1.

Echoing Aurélien's presentation on our key growth levers, let's now look at how the growth in employee benefits BVI was queued as of the end of Q3 on page 11. Over the first 9 months of fiscal 2026, employee benefits BVI grew by +6.6% organically to €15.3 billion.

This was driven by, first, new client acquisition, which contributed approximately €1.1 billion of additional business volumes over the period. This highlights the effectiveness of our commercial strategy and the strength of demand for our solutions across markets and client sizes.

Second, a slightly negative net retention contribution of -€0.2 billion, as active face value management and cross-selling did not fully offset pressure on our end users' portfolios in several markets. Third, a €0.2 billion contribution from positive currency and scope effects.

Let's now see how total revenues trended over the period on slide number 12. Total revenues over the first 9 months of fiscal 2026 reached €967 million, up +2.7% organically, and +2.3% on a reported basis.

This includes a +0.8% scope effect, partly offsetting a -1.2% currency impact. Focusing now on Q3, total revenues reached €312 million, down -3.3% organically.

Reported revenue growth remained positive at +0.9%, supported by a favorable +3.7% currency impact, and a +0.5% scope effect. Looking at the breakdown by nature, operating revenue, which represented 89% of total revenues, reached €270 million in the third quarter, down -4.1% organically.

While underlying trends remained solid, this performance mainly reflected the anticipated initial impact of the implementation of the PAT reform in Brazil on the group take-up rate, as well as the challenging macroeconomic environment in Continental Europe. Over the first 9 months, operating revenue continued to deliver a solid +2.5% organic growth, reaching €843 million.

At the same time, float revenue reached €42 million in Q3 2026, up +2.8% organically, and +7.4% on a reported basis, including a +4.6% currency impact. This continued growth was supported by a positive volume effect in countries where interest rates remained elevated, and by higher investment yield year-on-year.

Over the first 9 months, float revenue generated a solid +4.5% organic growth, reaching €124 million. I will now turn to the underlying trends behind operating revenue by line of service on page 13.

Operating revenue reflected differentiated trends between employee benefits and other products and services. Focusing first on Q3, employee benefits were down -2.6% organically, reaching €239 million as anticipated.

While business volume remained well-oriented, revenue conversion was impacted by a circa -50 basis point decline in the group take-up rate. It was mainly driven by the implementation of the 3.6% regulatory cap on the merchant discount rate in Brazil.

In Continental Europe, performance was also affected by the indirect effect on clients of the more uncertain macroeconomic and geopolitical environment. Second, other products and services continued to face headwinds, declining by -14.3% organically over the quarter to €31 million.

This was primarily driven by the ongoing transformation initiative underway in both the UK and the US, as well as by the continued effect of the anticipated scale-downs of certain public benefit contracts in Europe. Looking now at the first 9 months, employee benefits remained the group main growth engine, delivering a +5.4% organic growth, despite the implementation of the regulatory evolution in Brazil since Q3.

Let's now turn to the geographic mix of such operating revenue on slide 14. Operating revenue performance continued to reflect contrasted regional dynamics in Q3 and over the first 9 months of fiscal 2026.

Starting with Continental Europe, operating revenue reached €368 million over 9 months, down -1.5% organically, and almost stable on a reported basis. In Q3, operating revenue were down -3.2% organically.

While Southern Europe, as well as countries such as Belgium, remained well-oriented, this was offset by persistent macroeconomic headwinds and lingering public benefits base effect in other countries, which are both expected to continue into the fourth quarter. Moving to Latin America, operating revenue reached €336 million over 9 months, up +6.1% organically, and +8.3% on a reported basis, benefiting from a positive currency impact of +1.5%.

In Q3, operating revenue declined by -5.6% organically as anticipated, mainly driven by the initial impact of the PAT reform in Brazil on the take-up rate. This regional trend is expected to become more pronounced in Q4, with the further rollout of the reform in Brazil.

Lastly, operating revenue in the rest of the world reached €140 million over 9 months, up +5% organically, and -2.6% on a reported basis. In Q3, operating revenue declined by -2.9% organically, but increased by +3.4% on a reported basis, supported by a favorable +5.6% currency impact.

Performance was primarily driven by continued strength in core employee benefits, particularly in Turkey, more than offset by transformation-related headwinds in the UK and the US. From Q4, we expect the region to return to growth.

Overall, the group maintained a resilient growth trajectory over the first 9 months, despite a third quarter marked by specific and time-bound regional headwinds. After operating revenue, I will now conclude this top-line performance review on how float revenue also contributed to growth on page 15.

Float revenue reached €124 million over the first 9 months, up +4.5% organically, and +0.7% on a reported basis, including €42 million in Q3, up +2.8% organically, and +7.4% reported. This performance continued to reflect the continuous expansion of the float base in countries where interest rates remained elevated.

It also benefited from a higher investment yield, up circa +30 basis points to 6.2% over 9 months. This was driven by slightly higher interest rates year-on-year, and by Pluxee's disciplined investment approach.

Overall, float revenue has remained a consistent contributor to the group top-line performance over the first 9 months. This now concludes my comments on the financial performance, and I will now hand back to Aurélien to walk you through the outlook.

Thank you, Stéphane. Before turning to our full-year objectives, I will start with an update on Brazil and how we are navigating the ongoing market transition.

Since the revised framework was announced, we have consistently executed our action plan in Brazil, with tangible progress across our three workstreams in line with regulatory milestones. Starting with operational readiness, our open arrangement is now in place, alongside the rollout of our best-in-class offering.

This provides the operational conditions required to adapt to the new market framework, and it serves our clients effectively. Going forward, we will continue to build and innovate to strengthen our leadership position in that market.

In parallel, our adaptation plan is being progressively deployed across all dimensions of the business, with a clear focus on efficiency gains. This includes commercial, operational, and cost levers, which will continue to work on as the reform is being implemented and market conditions evolve.

Then, on engagement with public authorities, discussions remain active and focused on technical implementation, feasibility, scope, and timeframe. Lastly, on the legal front, we continue to pursue the appropriate legal proceedings, including our appeal on the merits of the case, both independently and in coordination with the industry association, ABBT.

Overall, we are executing our roadmap in line with plan, supported by fully mobilized teams in Brazil and at group level. This supports our confidence in confirming all our financial objectives.

The performance delivered over the first 9 months, together with our strong execution capabilities, give us confidence in confirming our financial objectives for the year for the year end. First, total revenues are expected to remain stable on an organic basis.

While Q3 reflected the anticipated first effects of the PAT reform in Brazil, our top-line performance over the first 9 months remains positive, supported by solid underlying business trends. This gives us confidence as we enter Q4.

Second, we continue to expect a slight organic expansion in recurring EBITDA margin. This illustrates the resilience of our business model, our disciplined cost management, and our ability to adapt our operating model in a more demanding environment.

Third, we continue to target around 80% recurring cash conversion on average over fiscal 2024 to fiscal 2026, backed by the strength of our cash-generative profile and disciplined execution. Before opening the floor to questions, let me briefly wrap up this presentation.

Over the third quarter, top-line evolution reflected, as anticipated, the first effects of the regulatory changes in Brazil and some macro headwinds, while remaining consistent with our plan full-year trajectory. At the same time, commercial KPIs stayed well-oriented overall, and business volume growth regained momentum, confirming the underlying strength of our business and providing a solid foundation for future revenue growth.

Overall, our performance over the first 9 months reinforces our confidence in the resilience of Pluxee's business model, and in our ability to navigate a more demanding environment while delivering on our fiscal 2026 commitments. Going forward, our priorities are unchanged: maintain robust commercial execution, manage the transition in Brazil with discipline, and leverage the group's fundamentals and execution capabilities to continue creating long-term value for all our stakeholders.

Thank you for your attention, and now, with Stéphane, we will be happy to take your questions.

Hi, good morning, and thanks for taking my questions. I have a first question on Brazil.

In LatAm, operating organic growth was a lot better than what we were initially anticipating. Can you elaborate a bit more on this?

Is it likely largely a timing/phasing effect, and if so, should we expect Q4 to be the first quarter reflecting the full impact from the shift to open loop? Actually, my second question will also be on Brazil.

Could you also explain how the shift to open loop is shaping up in Brazil at the moment, more technically speaking? Are you seeing any surprise?

What are the biggest challenges so far? Are you also working on a hybrid model whereby you can also be the acquirer in the transaction?

Thank you.

Thank you, Estelle. I'm going to answer maybe your two questions in one answer, but yes, coming back on the implementation of the PAT reform, as I said, it's progressing broadly in line with the timeline that we anticipated.

The first measures, including the MDR cap and the 15-day merchant reimbursement, came into effect on the March 1st, at the beginning of Q3. Since then, we have successfully opened our arrangement and launched what we believe is the best-in-class offer, while as I was mentioning, still focusing on the commercial execution, the operational adaptation, and all the mitigation initiatives.

Based on what we observe so far, the Q3 performance has been broadly in line with our initial assumptions, but it's fair to say that looking ahead, Q4 will provide us greater insights into the tangible effect of the opening of our arrangement. What we expect is the negative impact to intensify in Q4 with the further rollout of the reform.

This is what we should anticipate for Q4, indeed. Again, technically speaking, and in the implementation of our open arrangement, we are in line with our plan.

We've not been facing any unexpected changes on this aspect, and we will still see some impact, of course, on H1 on H1, the first semester of our fiscal year 2027.

Hi. Thanks for taking my questions.

I also have a question on regulations. Could you please provide an update on where do we stand on meal vouchers framework review in France, the timing of it, and if there has been any change in text recently versus what you have seen in the past?

Then related to that, any other sort of new regulatory developments in your markets, including an update on Chilean inquiry would be helpful here. Then the second question is on float revenues, which was stronger than expected in Q3.

Does this drive any change to your expectations for full-year float revenues in FY '26, and also next year? Thank you.

Thank you, Pravin, and good morning. I'm going to start, and Stéphane, you will take the question regarding the float revenue.

For France, quite recently in June, a member of Parliament has submitted a bill. The bill proposal remains broadly consistent with all the previous reform initiatives, with still the objective of modernizing the meal benefit system, while simplifying the framework.

This bill more specifically proposed measures that include the full digitization of the meal vouchers, the permanent extension of their use to all food products, the ban on client discount, and the facilitation of donation of meal vouchers to NGO. Not surprised.

This is what somehow was stated by Serge Papin when he was in charge a couple of months ago. Now, timing-wise, we expect this bill to be discussed by Parliament after summer, and of course it will depend on the legislative agenda.

Now regarding Chile, indeed, there is a case that is related to a claim filed by the Chilean antitrust authority before the Chilean antitrust court concerning the employee benefit market in Chile. The allegations relate to an historical period before 2021.

Of course, Pluxee has been fully cooperating with the authority during the investigation, and we will continue to engage constructively and transparently throughout the judicial process. It's fair to say that this case remains at an early stage.

Proceedings in front of this antitrust court are typically quite long, and they may take several years for a final outcome to be reached. More importantly, we've been taking this matter very seriously right from the beginning, we have engaged with all our stakeholders, starting with our clients, our partners, and all other stakeholders to provide transparency on the situation, and to share as well our ethics, compliance, and governance framework that is in place.

Far, we have a good continuation of our business in Chile. Stéphane?

Good morning, Pravin. Regarding your your second question on float revenue, this is true that float revenue remained for the first 9 months, and in Q3 again, a consistent and and a constant contributor to to growth, to organic growth.

When we compare to what we had in mind at the very beginning of the fiscal year, this is true that there there have been less interest rate cuts compared to to what we had initially planned, or and it was only based on the consensus of market. In countries like Brazil or Turkey, for example, in in Turkey, there were no cuts at all yet.

In Brazil, the Selic interest rate remained high all along the year, with with a slight cut recently. Then we have been able to roll out since the spin-off, and and and still in this fiscal year '26, more disciplined investment approach, extending a little bit the maturity of our investment in order to to support a strong yield.

All this being put together, we have been able, compared again to what we had initially in mind, to deliver a a a strong organic growth. Going forward, and we don't guide on on a quarterly basis, but what I can tell you is that what we will deliver in in in Q4 will be a little bit lower compared to what we delivered so far in terms of organic growth.

Overall, this means that for the full year, for the full fiscal year '26, we are now tending to a slight organic growth, positive, a slight positive organic growth for for float revenue, of course, but this doesn't move the needle for the overall organic growth. Keep in mind that float revenue represents a little bit more than 10% of our revenue.

The the big gross engine is the operating revenue, and of course we have this additional push from float revenue, but this does not change things for the overall stable get stable top-line guidance that we have for for the top line as a whole. For fiscal year '27, this is far too early to provide you with some detail on this.

As the geopolitics environment has been very uncertain and very volatile in the in the last months. On one side, we are still working on on the management of the maturity of of our investment, which will provide with some basis for fiscal year '27, but then we'll have to take into account when when when when the time comes the the the current situation in by the end of of next October.

Yes, thanks for letting me on. I got two questions.

The first one is on Brazil, the regulatory headwinds you mentioned. It only just started.

If we are now thinking about the absolute impact, and then the trajectory over the next couple of quarters, you had in lead-term around low double-digit organic growth, if you're calculating the headwind, it could be between €10 and €15 or €10 and €17 million headwind from the Brazilian regulation. I think originally you talked about high single-digit impact for the year.

You mentioned everything's going according to plan. Should we then expect in Q4 quite an increase in those headwinds?

Maybe you can talk about what caused that dynamic? I guess the 4C model will not be such a big cliff.

Then maybe just a second question on the European macro situation. Maybe you can talk there a little bit about the moving parts.

You called out also face value being a positive or starting to develop a positive tailwind, but given the macro concerns, maybe you can flesh that out a little bit. Where do you see that?

Which country, which sector? Or is it rather more competitive nature, which you obviously backfill very well with the incremental wins in BVI?

Thank you.

Hi, Hannes, and thanks for your questions. We'll start with the macro situation in Europe.

Indeed, Continental Europe continued to be soft in Q3, and this reflects a combination of macroeconomic factors and specific portfolio dynamics, and still some public benefits phasing effect. From a pure macro standpoint, we continue to see a cautious environment in several markets.

It was the case previously, it remains the case, with clients remaining prudent on hiring and in some cases on the increase of employee benefits budget. What we see as well is that the end-user portfolio trends remained a headwind in a number of countries.

France is an example, Germany, Romania. While also recent increases in face value caps are taking longer to materialize than what we initially expected.

Again, the picture remains quite different across the region. Southern Europe continued to show good resilience and a solid commercial activity, while other markets are facing more importantly, this challenging economic backdrop, again, the country that I mentioned, France and some countries in Central and Eastern Europe.

Regarding Brazil, maybe Stéphane, you want to start?

Good morning, Hannes. Regarding what what is currently happening and and as we we started explaining in the presentation, this is true that the impact of the reform is going to be higher in in Q4 compared to what we have seen in in Q3, but I'm not going to to share with you some absolute numbers as as you tried to put them together, because there is still a lot of uncertainties remaining on this reform, and and the impact of this reform.

Please keep in mind that this reform is defines a merchant discount rate cap, but then our business in Brazil, like in other countries, if we leave aside the float revenue, remains based on on two main workstreams, revenue workstream on merchant, but also on client, with some balance being constantly adjusted with the competition on the market. Of course, we are facing all these changes with all the competitors still fighting strongly in order to to gain market shares, and it's really difficult for us to assess precisely the impact.

What I can tell you is that Q4, and in Q4, the impact will be somehow, in terms of organic growth, twice the impact that we had in in Q3 for Brazil. Then in Q1 and Q2 of next year, same thing, we'll have strong impact, stronger compared to to what we have experienced in Q3.

We will come back to you later, when we have more clarity with all the remaining uncertainties, based on what I was explaining on how the market is operating, but also on what Aurélien recalled regarding the legal uncertainties, the discussion we're still having with the government, and and and the legal proceedings.

Maybe just to add, for us, what matters as well is that the fundamentals in Brazil remain very strong. Our commercial momentum continues to be robust, supported by solid client acquisition and a healthy client retention level.

This strong trends definitely reinforce our confidence in the long term, regarding the attractiveness of the Brazilian market and our ability to create value even through this period.

Good morning, and congratulations for this solid results. Two questions, if I may.

First one about competition. Do you see any moving parts in Brazil following the new regulation, any small players being in the difficulties and pushing for consolidation?

Second question about your balance sheet, the fact that you still got a pretty solid net cash position, and do you have a better visibility or better idea on this use of cash between M&A, potential return to shareholders, or any other decisions? Thank you.

Stéphane, do you want to start? Hello, good morning, André.

Want to start with the second question from André?

Good morning, André. Referring to your question regarding our balance sheet, as you well know, on Q3 there is no update on the balance sheet, but it remains strictly unchanged compared to what we communicated at the end of H1, as you are saying, with significant firepower remaining on our balance sheet.

I remember all of us that this is on purpose, that at the time of the spin-off, the balance sheet of Pluxee was designed with this very sound basis in order to provide us with some good potentials in order to deliver some M&A. Since the spin-off, we have put up with our capital allocation strategy, which was to on one side go on investing in order to keep the organic growth with some CapEx through many new technologies, accelerate the potential for organic growth by acquiring new targets, and something that we did as well.

Of course, return value to our shareholders through dividend or even a share buyback, which we did by rolling out this €100 million share buyback that we launched at the beginning of the current fiscal year, and which came to an end by the beginning of May. When you compare all these three pillars of our capital allocation, it has been very well balanced since the beginning of this new story for Pluxee, with approximately €200 million for each of them spent since the spin-off, if we leave aside the non-cash transaction that we had with Santander.

Going forward, we remain really dedicated to go on delivering this capital allocation, with still the possibility to accelerate in terms of M&A in case we were able to identify, negotiate, and close some attractive deals. We remain really very disciplined in this area with some ambition, but again, very disciplined.

No change to this capital allocation policy. What was behind your question is, is there anything we should share regarding some further return to shareholders, this is a question that should be decided by the board, and so far there is nothing, and this is too early.

We will first close fiscal year '26, and then we'll see, but again this is something that should be decided by the board.

Regarding your first question, competition in Brazil and the impact on the small players, it's too early to see any major impact on their activities. Is there been some discussions regarding any consolidation moves?

To my knowledge, and for the moment we've seen none of it. There might have been some discussions between some of them, but again, it might be just rumors, and again I think that we need to wait a bit of time to see all the potential impact that this PAT reform could have on the competitive environment.

Thank you very much. Good morning, Aurélien and Stéphane.

Thank you for the time. A couple questions on my end.

Just wanted to ask one on Brazil here. It seems like you're flagging quite a bit of uncertainty in the legislative environment moving forward.

Maybe you could just elaborate on the latest there, exactly where you stand with the appeal process. It feels like maybe there's some feeling on your side some aspects of the regulation could get overturned, and just further on that point, and the competition point, it seems like some of the newcomers are growing incredibly fast, I think iFood was growing over 100% in their voucher business in Brazil in FY '26.

Maybe you could just elaborate on that. Then, Stéphane, a question on FX impact.

You flagged Turkish lira, which was strongly negative, Brazilian real, and Mexican peso as the main drivers of FX. If I look at other countries, the FX benefit was 6%, and that would also include a strongly negative Turkish lira.

Can you just help us understand what's driving that FX positive in other countries? Thank you.

Hi, Justin. Thanks for your question.

I would not comment, of course, on any of my competitors' performance. What I can tell you is that from a business volume standpoint, we've been still delivering a double-digit organic growth.

Again, a very very solid performance in Brazil, and we remain very confident in our future there. Regarding what you qualify as uncertainty, as I said in the presentation, indeed, there is still some legal proceedings in progress, and it does include our appeal on the merits of the case.

There are two procedures in parallel, one run by Pluxee, and another one run by the industry association. What we are trying to get through those procedure is more clarity on whether or not the implementation of the 4C should be mandatory, and could it be the end of the 3C, the closed-loop model, and still some visibility on the interoperability.

This is what we are trying to address through those proceedings. Regarding the FX impact, Stéphane?

Good morning, Justin. On on the FX situation, we we have seen significant changes over over the last months.

Basically, if you refer back to fiscal year '25, we had a significant headwind in terms of FX, mainly coming from from Brazil and and Turkey. In this year, month after month, the situation has significantly changed, with first Brazilian real reinforcing against euro, and same thing for Turkey in the last Q3, which which, is is really something new.

If you look at the Turkish lira in our Q3, for for our Q3 when you compare with with the year before, the Turkish lira against euro is 6% higher compared to what it was 1 year ago. Last year we had overall in fiscal year '25 a 8% headwind in terms of reported growth because of foreign exchange exposure.

Beginning of this year, in the first quarter, it was only -4%. It turned close close to balance in in Q2, and now it's positive, and it's positive with mainly Brazil and then Turkey contributing for this positive trend in terms of foreign exchange exposure.

We'll see what is going to happen in the next months. We we can't manage it, but when you look at at the consensus, the the situation is is currently quite at least balanced in terms of foreign exchange exposure.

Morning, Aurélien, Stéphane. Thanks for taking my questions.

I've also got a couple. Firstly, could you talk about the next steps in Brazil since you implemented the open loop infrastructure?

Have you seen merchant acquirers connecting to this? Have you seen volumes shifting over, or sounds like that's really going to be in Q4?

Then secondly, on face value increases, I think you mentioned some delays in seeing the higher inflation levels come through in face value increases. What's really driving that?

Is that mainly a timing issue and should expect that to kind of come through in the next few months?

Okay. Regarding the face value, and again, good morning, Pavan.

Face value remains a very structural driver of our BV growth and of our net retention consequently. The performance has been strong, but indeed, it's fair to say that looking ahead, we still see further upside, especially in countries where recently legal cap increases have been approved, but it's taking more time to be fully implemented, more time than anticipated in, for example, it's mainly in countries in Continental Europe: Belgium, Italy, Romania.

It's because at the moment, clients are still hesitant, given the uncertainty of the macroeconomic environment. In Latin America and rest of the world, situation is different because the inflation dynamic is quite supportive there, and it would continue to contribute to the face value growth.

Now regarding Brazil and the implementation of the open arrangement, as I said, it's quite early. Our arrangement was opened mid of May, it's early stage.

We are currently discussing with acquirers that would like to join our scheme, and it would be extended over time, but it's quite encouraging indeed.

Yes, good morning. Two on my side, please.

On the PAT reform in Brazil, can you please clarify the expected impact on the revenue and cash flow, or at least give us a direction coming from the next regulatory milestones, in particular, the interoperability in November '26 and also the transition to a prepaid model for public sector clients? Second, on other products and services, the revenue remains under pressure in Q3.

When do you expect this business to stabilize, particularly after the UK and US transformation initiatives? Thank you.

Stéphane, do you want to start with a question from Johanna?

Good morning, Johanna. Your question was about the impact on two main indicators, revenue and free cash flow, of the PAT reform happening in Brazil.

I'm not sure exactly what is behind your question, but I'm going to provide you with some color. In terms of revenue, we clearly indicated that, and Aurélien insisted, that there is no impact on the business volume, and we are still seeing a strong momentum in this country, this business remaining very attractive, but we have, and this is what is happening on revenue, an impact from the merchant discount rate cap, which has an impact on the take-up rate, with some, again, balance in between the client revenue workstream and the merchant revenue workstream.

There will be an impact with lower revenue, of course. This is what we are seeing, and this is what is going to happen, with some uncertainties regarding the balance of operating and float revenue, as we will need to see the behaviors of merchant.

Many merchants in Brazil had been activating over the last years this express reimbursement option that we proposed to them, and we will see with the shortening of the repayment terms if this has some impact on their behaviors going forward. I'm saying here that we don't see if the impact will only be on operating revenue with much lower express reimbursement option, but then the float revenue remaining unchanged, or if some merchant will decide to keep the express reimbursement, with in this case, for us, still the same level of operating revenue in this respect, and lower float revenue.

This is just to share with you some color that there is a lot of uncertainties regarding what will be the final impact of this 3.6% cap on merchant discount rate and the impact of the reduction in payment terms down to 15 days in terms of merchant behaviors. In terms of free cash flow, it's a little bit the same things, but we have some positive tailwinds also in front of us, and notably for fiscal year '27.

I was explaining that we have this express reimbursement option that is open for merchant, and depending on what they decide to do, there might be higher or lower impact. If I say it again, if the merchant don't change the option to activate this express reimbursement, there will be more significant impact on the free cash flow for us, because this means that we'll have the amount on our balance sheet of the float amount being reduced by quicker repayment all in all to merchant.

In case they decide to stop activating this option, there should be limited impact on the float amount in the balance sheet, and in this case, limited impact on the free cash flow. Again, we'll see.

This is too early to say what will happen. Going forward, in fiscal year '27, we also have, as part of the decree, the current requirement that public clients should move to prepaid scheme, which is not the case right now, which might have some positive impact on the free cash flow.

Again, a lot of uncertainties. I just can share some colors of the potential upside or downside, and we will have more clarity, hopefully, by the end of fiscal year '26 or beginning of fiscal year '27.

Regarding other products and services, it's a combination of two factors: the performance of public benefits, and we've been facing headwinds. What we expect is those headwinds to gradually moderate compared with earlier in the year.

This is public benefits, and on one hand, and on the other hand, the performance of UK and US, and this drive will still remain on Q4. Maybe a few words on UK and US.

The repositioning that we started is progressing broadly in line with our plan, and the drag over the first 9 months reflects the deliberate exit from non-core and lower-return activity, while as we say to you, we continue to pivot towards the employee engagement solutions that are supported by fully digital platform. We are focused on how to build long-term value creation model there with the objective to build a fast-growing, scalable, and profitable platform.

Having said this, we continue to expect UK and US to progressively improve and become more supportive to our growth, but from fiscal 2027 as our new model scales up there.

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Thank you. Thanks everyone for joining us today, and for all your questions.

As a team, we remain fully focused on executing our strategy with discipline, achieving our financial objectives, and continuing to deliver sustainable, profitable growth. We appreciate your continued interest in Pluxee, and look forward to speaking with you again soon.

Have a good day, all. Goodbye.