Edenred SE ($EDEN)

Welcome to the Edenred Q1 2026 Revenue Conference Call. [Operator Instructions] Now I will hand the conference over to the speaker, Virginie Duperat-Vergne, Chief Financial Officer. Please go ahead.

Thank you. Good morning, everyone, and welcome to Edenred's Q1 2026 Revenue Presentation. I am Virginie Duperat-Vergne, Edenred's CFO, and I'm today with Cedric Appert, Investor Relations Director. I will start by covering the quarter's key highlights, then walk you through our revenue performance by business line and geography and conclude on 2026 outlook before opening the line to Q&A. As you will see, we had a good start to the year, which bodes well for the fiscal year 2026 and for the fulfillment of the objectives of our 3-year plan Amplify. Now starting with Slide 7. Edenred maintained its upward trajectory and delivered sustained top line growth in line with our expectations in the first quarter of 2026 despite a more uncertain environment. Overall, demonstrating the strength of our diversified model, operating revenue reached EUR 673 million, up 3.1% like-for-like. By business line, on the left-hand side, Benefits & Engagement delivered EUR 446 million, growing 0.2% like-for-like in spite of the regulatory changes in Italy and Brazil. Adjusted from these impacts, the Benefits & Engagement operating revenue growth would have been 7.8%. Mobility amounted to EUR 176 million, a 10% like-for-like growth, reflecting the relevance of Edenred's offers. And Payment Solutions & New Markets amounted to EUR 51 million, up 6.2% like-for-like and back to robust growth. By geography on the right-hand side, Europe is slightly positive, growing 0.6% like-for-like on the back of a good performance in Southern Europe, offset by the impact of the new Italian regulation. Adjusted from the Italian regulatory impact, growth would have been 6.1% like-for-like for the quarter. In Latin America, operating revenue grew 4.7% like-for-like, thanks to a robust commercial traction, which has been offset by the new regulation in Brazil since end of February. Again, adjusted from this impact, the growth would have reached 10.7% for LatAm. In Rest of the World, operating revenue grew 12.8% (sic) [ 12.6 ] like-for-like, a double-digit performance driven by a strong commercial traction in Turkey, UAE or Japan. Moving to Slide 8. You can see the performance of the group this quarter with and without the impact of regulatory changes. With an intrinsic growth of 8.2% like-for-like in Q1 2026 at group level, Edenred delivered an underlying performance fully in line with full year 2025 performance. It demonstrates the diversity of our portfolio, the attractiveness of our solutions and the continued good commercial traction. Overall, regulatory impacts amounted to 5.1 points in the quarter. In Italy, the impact was in line with our expectations, and we reconfirm the EUR 60 million impact of the regulatory change in full year 2026. In Brazil, the presidential decree was enforced late February and started to weigh on performance since then. Thus, another way to read this slide is that our growth drivers remain as powerful as last year despite the challenging environment. In particular, from a business standpoint, the momentum in Brazil and Italy remains strong, notwithstanding the purely financial impact of the new regulations on our economic model. Let's turn to Slide 9. Edenred obtained an A rating from CDP, Carbon Disclosure Project, ranking the group among the top 4% of more than 22,000 assessed companies worldwide. This sets Edenred as an ESG leader within its industry. This rating is not only the recognition of our strong commitment to ESG, but it also reinforces Edenred's competitive advantage as a partner of choice to support its clients through their environmental transition. Amplify '25-'28 is in motion, with concrete achievements across our strategic pillars, Attract and Enrich and also in Data & AI. And please let me illustrate this in the next slide with recent concrete examples. If we start Slide 11 with Attract. In mobility, we are happy to announce a promising partnership with EnBW, one of the biggest energy companies in Germany. We have an extensive offer for fleet managers in Germany, including fuel and EV solutions, but also a range of additional services such as toll or VAT refund services. ENBW, on the other hand, has the largest fast charging network in the country. Our client base, which represents around 70,000 vehicles already had access to EnBW 8,000 fast-charging points. However, with this new partnership, our clients can now benefit from preferential rates, which is making our offer all the more attractive. Meanwhile, this partnership now includes the distribution of Edenred Mobility services by EnBW in Germany. This represents huge commercial opportunities for us. Indeed, this unlocks the potential to triple the number of vehicles using our services and attracting more users is the first pillar of our strategic plan. Let's continue on Slide 12 with Enrich. In Benefits & Engagement, Italy is a key market for us where we are the leader with more than 3 million users, 100,000 corporate clients and 150,000 merchants in our network. In Meal & Food, which represents around 2/3 of our operating revenue in Italy, following the 25% maximum legal face value increase decided by the government early January, we have started pushing our clients to raise the value of the meal voucher they are granting their employees. In Beyond Food, which represents around 1/3 of our B&E operating revenue in Italy, we offer several solutions such as Ticket Shopping, Welfare services and Engagement solutions. These solutions work as tailwinds on the Italian market, growing over 20% like-for-like in Q1, thanks to an excellent commercial traction with new sales as well as strong cross-selling among our existing Meal & Food clients. We currently have a 35% cross-sell rate, meaning that 1/3 of our Meal & Food clients also use at least one of our Beyond solutions. Amplify aims at growing this ratio to further increase the value per user while reducing the administrative burden for HR managers with a one-stop shop benefits and engagement service provider. Let's move now to Slide 13. AI is a key priority for Edenred. We are fully embarked in this exciting journey to seize all opportunities AI can offer. We are reviewing every day our processes to identify optimization and efficiencies that AI can bring. Amongst all the use cases we are currently working on, we have chosen to share with you what we are developing in our maintenance business in Mobility Brazil. Maintenance in Brazil currently represents 0.5 million vehicles for Edenred, and we have a network of more than 30,000 repair shops. Maintenance is a relatively complex BPO business involving many stakeholders and many different steps, as you can see on the wheel on the left-hand side of the slide. With AI implementation, we have already made significant progress that benefit fleet managers with better matching, benefit drivers with less interactions required and benefit Edenred with productivity gains on the management of the end-to-end process. Let me now turn to Q1 '26 revenue in more detail in Slide 15. Operating revenue amounted to EUR 673 million, reflecting a 3.1% like-for-like growth and 8.2% [ one ] excluding to the Italian regulation is a negative foreign exchange impact of minus 1.7% and a slightly negative scope effect of minus 0.5%. This resulted in a non-published growth of 0.9% for the first quarter 2026. Moving now to Slide 15 (sic) [ 16 ]. We will observe a balanced intrinsic growth between business lines. In Benefits & Engagement, accounting for 66% of Edenred's total operating revenue, we delivered EUR 446 million in first quarter 2026, up 0.2% like-for-like versus Q1 2025. Adjusted from the regulatory impact in Brazil and Italy, operating revenue grew 7.8% like-for-like. This mainly reflects continued momentum in France, combined to a robust growth in Brazil and in Southern Europe, especially in Greece and Portugal and the general upselling effect on the back of face value increase that started in Q1. In Beyond Food, we registered a solid growth, notably in Italy with Ticket Shopping and Welfare or in Germany with Ticket City. In the Mobility business line, accounting for 26% of Edenred's business, operating revenue came to EUR 176 million in the first quarter of 2026, up 10% like-for-like versus first quarter of '25. This continued double-digit performance confirms the relevance of Edenred's Mobility offering despite an uncertain environment. Growth was driven by strong momentum in Latin America, notably in Brazil and Mexico, supported by the continued traction of Beyond Fuel solutions such as toll and maintenance services. In Europe, growth benefited from a solid performance in France and Spain, underpinned by increased fleet activity and sustained commercial traction. Overall, Mobility continues to demonstrate its resilience and capacity to capture structural growth drivers. Payment Solutions & New Markets, 8% of Edenred total operating revenue returned to a robust growth with 6.2% on a like-for-like basis compared with the first quarter of 2025. The business line delivered strong double-digit growth in our digital wallet offering in the UAE and Taiwan, offset by the tail effect of the exit from the Banking-as-a-Service B2C business. Moving on Slide 17 to geographical areas. You'll observe once again a balanced intrinsic growth between business geographies. In Europe, up 0.6% like-for-like. The performance benefited from a positive momentum in France, both in Benefits & Engagement and Mobility as well as a double-digit growth in Germany and Southern Europe. Adjusted from the impact of the regulatory change in Italy, operating revenue rose by 6.1% like-for-like. Latin America was up 4.7% like-for-like versus the same period 1 year ago. This is driven by the double-digit growth of Mobility, notably by the success of our Beyond Fuel offer, maintenance, toll and freight payment. In Benefits & Engagement, the region posted high single-digit growth supported by the sustained sales dynamic in Brazil, which contributed to double-digit intrinsic growth in the country. However, this good performance has been offset by a high comparison basis for a public social program in Chile and the impact of the implementation of the Brazilian decree late February in Brazil. Adjusted from the decree impact, Latin America operating revenue was 10.7% like-for-like. In the Rest of the World, up 12.6% on a like-for-like basis. The double-digit growth was supported by solid sales performance in Japan, Turkey and the UAE. Moving now to other revenue on Slide 17 (sic) [ 18 ]. Other revenue is up 3.2% like-for-like in Q1 2026 versus Q1 '25. This performance reflects the higher volume in float driven by Benefits & Engagement performance and a slower-than-expected interest rate decrease due to the challenging geopolitical context. We remain confident with the EUR 210 million flow we gave you at the Capital Market Day for full year 2026, acknowledging that the Brazilian decrease needs to be taken into account as an additional computation in that figure. Overall, on Page 19, total revenue amounted to EUR 724 million, reflecting a 3.1% like-for-like growth. The foreign exchange impact on our Q1 operating revenue was a negative minus 1.8% to be added to a slightly negative scope effect of minus 0.4%. All in all, this resulted in a published growth of [ 0.8% ] for the first quarter 2026. Let me now conclude with a view on our '26 full year outlook. With high single-digit intrinsic growth generated in the first quarter, Edenred looks ahead to 2026 with confidence despite the expected financial impact of regulatory changes in Italy and Brazil. The diversity of its activities and its multi-local footprint provide Edenred with multiple growth levers, whilst the highly recurring nature of its B2B2C platform business model offers robustness and resilience, even in an uncertain environment. By executing Amplify plan, Edenred is leveraging its comprehensive portfolio of relevant solutions to seize additional opportunities in large, vastly underpenetrated and growing markets. Third, Edenred maintains strong focus on executing management actions to extract efficiencies and generate additional operating leverage. Lastly, the strategic investments already made in Data & AI also enables the group to enhance its value proposition for clients and merchants while maximizing user engagement. Let's now go back for one second to Edenred growth equation, which is quite simple. More users combined to more value per user. More users, this means attracting more clients and so more users on the Edenred platform, which we estimate should be 50% to 60% of our growth in the coming years. More value per user with 2 levers: enrich and activate. Enrich should deliver between 30% to 40% of our growth on the back of upselling and cross-selling of our solutions. Activate, this lever should represent 10% to 20% of Edenred growth and activation is really the monetization of our very qualified user base, but also introduction of new services for the merchants. Moving to our last slide, the outlook. 2026 is a rebasing year for Edenred. Intrinsically, EBITDA will grow between 8% and 12% like-for-like, powered by the combination of our total revenue growth and the structural operating leverage we generate, notably thanks to our specific purpose placement platform. However, in 2026, the absorptions of the impacts of the change in Meal & Food regulations in Italy and Brazil will create a rebasing effect, which is going to negatively impact our EBITDA '26 growth as well as the free cash flow conversion rate. In addition, we continue to accelerate our strategic investments, execute disciplined management actions and portfolio optimization. All in all, we confirm our full year '26 objectives, a decline in EBITDA of between minus 8% to minus 12% like-for-like, corresponding to an increasing EBITDA growth of 8% to 12%, in line with the target set for 2027 and 2028. And a free cash flow to EBITDA conversion rate of at least 35%, representing an intrinsic conversion rate of at least 65% at comparable regulations and methodology in line with the target we have set for '27 and '28, confirming the group's ability to maintain robust cash generation. This concludes today's presentation, and I really thank you for your attention. We'll now open the line for the Q&A session, and I will hand you back to the operator.

[Operator Instructions] The next question comes from Estelle Weingrod from JPMorgan.

The first one on Brazil. We're now 2 months post implementation of the new regulation. Could you share some color on the market dynamics and where you stand on the ongoing discussions with the government? More precisely, can we still hope for a sort of compromise at the end or not? Second question, you mentioned a good dynamic in both France and Germany. Could you also give us more color on what you're seeing over there? I mean, is your performance somewhat related to easy comps or have the 2 countries proved to demonstrate a sound underlying momentum? And just a last quick one on UAE. It continues to perform well. You mentioned double-digit growth in Q1. Given the ongoing conflict in the region, how should we look at Q2? How impacted is the business? And how should we quantify?

Thanks, Estelle So let me start with Brazil. Yes, we are 2 months now into the application of the new system. I'm not sure we have really much more than what I think you heard this full year and also from complex last week. What we see today is that it remains a market which works in terms of business volume, and we have a lot of traction on that front. We apply the new decree as it has been set. Yes, there's a lot of technical conversations which are happening with the government and especially to get more precise on how all the issuers will be ready for the next step, which is coming in May with the opening of the open loop. As you imagine, all these discussions go through the various associations that represent the issuers and then there is quite a number of back and forth. So for the moment, I would say that we focus a lot also on remediation action, discussions with clients and things like it. In France and Germany, market dynamics, maybe starting with Mobility. In mobility, we have seen strong dynamics really in France, a bit more in France in Germany, I would say, over the quarter, while in Germany, there was quite a good push on the Beyond Fuel solutions. On the Benefits & Engagement side, the dynamics is a bit different. The existing maybe portfolio of our benefits remain the same or shrinking a little bit, but we have very good penetration in terms of new sales on the quarter. And we have seen quite a nice performance of our Ticket City in Germany. I think it's also worth to mention that compared to last year. We had last year, if you remember, an impact in France on our business linked to the software of our consult and that is ending this quarter. So that's also pushing the performance. And finally, in UAE, yes, there is the war. But for the moment, what we see is that, number one, we have the ability to operate a bit remotely even if the teams have limited access, I would say, to the offices as of today. So we are still working. And we are luckily operating in quite a number of business sectors that may not be the first one to be it on an economic standpoint.

The next question comes from Pravin Gondhale from Barclays.

Firstly, can you just talk about the underlying operating growth impact expectations -- sorry, underlying growth, operating growth expectations, excluding regulatory impacts and cadence of the same for rest of the year? Given you had a really strong Q1 and underlying momentum appears really healthy here. And then secondly, I appreciate you maintained your full year guidance for EBITDA, but inflationary and macro backdrop has evolved since your FY results given the geopolitics. So can you please let us know what this means for Edenred's cost base outlook for rest of the year?

Thanks, Pravin. Let me start with the underlying growth for the rest of the year. What we've seen is really the same dynamic that we've seen towards the end of last year. So really our intrinsic growth, you've seen it's 8.2% this quarter, really in line with the 8.3% that we've been able to deliver last year. And if we look ahead for the next quarter, we have in mind the same type of drivers. Obviously, Brazil and Italy will go on heating, so probably even [ more ] Q2 and Q3 than Q1 and Q4. So maybe that's to be kept in mind when you think to the dynamic of the rest of the year. And I would say that for the underlying business, yes, you can -- it's very difficult, and I have no crystal ball. No one has crystal ball in terms of what will happen in terms of geopolitics and the rest of the year. But if we take into consideration what we see today, we have quite a number of positive tailwinds that should go on pushing us. And in some respects, some of the uncertainty are compensated by other types of benefits. Think to the interest rate, for example, interest rates, we were expecting them to go on decreasing. What we've seen as of today is that in this environment, they decrease less or they even start to increase again a little bit in advance. So that compensates a little bit. And if inflation comes back a little bit, you know that Forex can be also some sort of tailwind. So then all in all, that might help if there is a little bit on pressure on volume. That's why, as we say, what we see in this type of environment is that our model is quite robust, quite diversified and quite resilient. And then what does it mean for the guidance for the rest of the year? Based on what you say, you understand that we really feel that we are very well in the guidance we have given. We are pushing a lot in terms of our strategic investments, and we want to be ahead of the curve as we did 10 years ago with the digitalization. And at the moment, we push a lot on Data & AI to really be ready to deliver our Amplify plan and come back as strong as we can in '27 and '28.

The next question comes from Hannes Leitner from Jefferies.

Maybe you can clarify the negative scope effects you have called out in the report and in your remarks. And then the second question is about the other revenue line. I was not sure now you mentioned the EUR 210 million baseline, but then clearly, Brazil will have an impact. Maybe you can steer us there in the direction given the moving parts of higher interest rates and also the float increases you called out.

Thanks, Hannes. Let me start with the negative scope effect. You start to know me now, I love a little bit figures. So I want to be precise. We restate in scope figures to have comparability basis. So there's a small -- number one, it's a very slight effect, but there's a small accounting effect on the back of the fact that we integrated acquisitions last year very -- that were done very late in '24 and that has a little bit of more than a quarter effect. So that's what it is. And in terms of other revenue, yes, the EUR 210 million flow is really what we see. We have taken that. And then remember, when we came back with what happened in Brazil, we made a rough estimate of what it could be. And when we've done the math together, we ended up saying all in all, with the impact that we see on the float, we might lose something around EUR 25 million to EUR 30 million in terms of additional elements. So this EUR 210 million in the new world, we might want to requalify it around EUR 195 million, it's more simple for all of us that I think this is about. But the -- really the intrinsic elements that pushed us to the EUR 210 million are the ones that we go on seeing. And on the other side, in terms of float, we closed the year quite high in terms of volume of cash and float generated and that has pushed us around the quarter. You've seen quite a strong intrinsic dynamics. So then we still have quite a nice float as we speak. And in parallel, even if H1 is a moment where we generally consume cash, that has been quite helpful. And then we generate a bit more other revenue on this back this quarter. In terms of interest rate, I think what we see with the banks today is that we'll still see for the rest of the year a decrease, notably in Latin America, but slower than we expected it to happen. And then that will support a little bit on that front. And in Europe, as we say, we expected rates to come back in '27. They might come back a bit earlier. We'll see.

And maybe just a follow-up. Looking at like the impact from Brazil, for example, which only really started as of March, given your -- the court case. Can you talk maybe a little bit about 2027 because you have there the guidance basically not adjusted. Should we expect that there is something or you have there so many mitigation effects in place that you can confirm the 2027 recovering growth?

Yes. Thank you, Hannes. We have quite a large bracket also in '27. So that encompasses more or less some calendar variances, I would say, that we might see in the application or in the registration of the various effects coming from the change in Brazil. And the pluses and minuses that we see should rather neutralize. So the plus 8% to plus 12% increase in EBITDA in '27 that we have announced, that absolutely where we are today and what we see coming.

The next question comes from Andre Juillard from Deutsche Bank.

First one about regulation and the antitrust issue in Italy. Could you give us some more color about what is going on and some elements about timing and potential risk? Second issue on the regulation. Do you have any more visibility or any discussion ongoing with the French government? And could you just, as a follow-up, remind us the sensibility to the oil price on your results?

Thank you, Andre. Antitrust at first, probably nothing really new compared to what we discussed when we pushed our press release earlier end of March, I guess, when it happens. In antitrust, it will be a long process as this process generally are. What we expect is to see the authorities coming back after 18 months, something like this in September 2027 as we indicated. And in the meantime, you have several things that could happen. First one would be a potential decision to go for settlement on our side or for any reason, the authorities deciding that they cut the investigation in between. So that's a very long process as we have seen others, and we see no reason to see that happening on a different matter than that. And in terms of -- [ the platform ] in terms of timing. In terms of risk, as of today, we have not even had the first discussion with the audience and judge. So very difficult to give you any flavor on that part. But as we said, it's a commercial, more or less litigation or commercial discussion on the Italian market, which is happening at the moment. But the market in Italy is going well, and we have had a strong quarter in Italy, as you may have seen reading our press release this morning. In terms of regulation in France, the minister came back indicating that there should be something to be before the summer. So we are waiting for that to happen. What we see that in what has been announced by the government, it's more or less taking back the main points that were already on the table in the last 2 or 3 projects that we've been discussing for a while and the most salient ones that we find interesting are definitely the full digitalization, which is the opportunity to decommission the paper system for us. And secondly, the end of the commercial rebates, which is protecting the meal voucher system in France on the long run. So that's what we have on that point. And finally, oil price. We've been quite diligent over the last few years to really work on getting less sensitivity into oil price. So obviously, fuel price may have a slightly positive impact on our operating revenue because we still have a few contracts where the rate where we take is based on the price, but we also have quite a number of contracts where it's rather based on volume of liters. And in addition, it's very important to remind that based on how the government manage things today, you really need to not create a correlation between the [ Brent ] and exactly the pump price because there are a lot of mechanisms which are happening, and there is, number one, a timing effect. And number two, some mechanism to decorrelate it, which, for example, in Mexico or in other countries like this can be very highly, highly sensitive. And we started seeing those type of things also on the Europe element. But all in all, price increasing has no effect on a positive one for us.

The next question comes from Justin Forsythe from UBS.

Just a few questions from my end, if I might. First, just on the overall revenue growth here, looking on that normalized ex regulation basis, I'm seeing, I think, slightly more than 1 point deceleration from 4Q to 1Q, but also some tailwinds that we had during the quarter. So you flagged face value increases across 3 different countries. And also, you had the tailwind from fuel, which was also flagged. So maybe you could just help us understand if there is truly an intrinsic deceleration. Is there anything to do with macro impacts? I know your peer flagged some of that or anything else that you could more discretely flag to us? And then specifically on Italy, I just wanted to understand a little bit better the phasing because you reiterated that EUR 60 million of impact. I'm calculating around EUR 22 million impact in the first quarter. But my understanding was that the impact of Italy would ease throughout the year. It seems like you're implying basically an equal weight in 1Q, 2Q and 3Q. And then to be very clear on the fuel benefit, I mean, I guess you really have mostly a 1-month benefit. And as you say, a lag effect in 1Q, I would expect quite a meaningful benefit in 2Q as it relates to fuel. So maybe you could just be a little bit more detailed on that point.

Thank you, Justin. So in terms of revenue dynamics, no. Really, if we think about the fundamental tailwinds that we need to think about, they are there. You can have had some small events here and there. In January, there was a little bit of bad weather, in Europe with a bit less traffic or things like this, but it's not something that has a fundamental impact on the long-term tailwinds. They are really there, and we see that both in Mobility, but also in Benefits & Engagement. In Benefits & Engagement, there is an effect on the existing portfolio. We have quite a number of countries where it's rather remains stable or shrinks a little bit. That is something that we perceive. But in parallel, we have a good traction in terms of new sales, especially in the SME area, and we have a good traction on the Beyond solutions. And then as you know, we work a lot on cross-sell, upsell and that works. On face value increases, if we really go one country to the other and we more or less try to take into account what we could expect as an impact for the first quarter. We see that coming in. But remember, it takes quite a long time, less for an impatient CFO, 18 months to 2 years to see that coming into our P&L. So we are on track. And in some countries also, like in Belgium, for example, you need to go through some sort of branch discussions and agreements before really the companies will implement them into their contract and then will benefit for it. So then there is really a start, which can be quite progressive, and we see that. Remember, we also had quite a sizable number of face value increase in '25. We said it last time, we have 40% of our portfolio which was really impacted by face value increase in '25, and it's more than 50% in '26. So yes, there is a bit more. But hence, there was quite a nice push also last year, and that's fueling us and will go on fueling us for the rest of the year, reason why we are also confident on the traction for the rest of 2026. And in Italy, yes, I quite support your estimate and your calculation, I would say. We have had quite a number of negotiations with our clients that get into motion [indiscernible]. So yes, I agree it's a little bit of a regular basis that flows in. And you might have some different effects because of volume varying from one kind to the other in some quarter. But more or less, this simplification of the math works relatively well. And Q3 will be a bit less than Q2, obviously, as it will end of August in terms of comparison basis. So that's what you have there. And then in fuel, you're absolutely right. We have 1 month in the P&L and not more. And the positive traction should be bigger in the rest of the year. Then we'll have to see how it impact. As we said, there is not a direct correlation between [ Brent ] and the pump price.

Got it. Just one quick follow-up there, and that was super, super helpful detail. On the face value, totally appreciate the lag effect, which is why I was almost interested that you flagged specifically Italy in that. Like my understanding was actually it might be challenging to go back to the Italian corporates and ask them after you just went through an entire renegotiation phase or are still going through renegotiations to uptick the face value. Is that still one that might take perhaps longer than that 18 to 24 months to come through?

That's not really what we see today when we observe the Italian activity of Q1, the face value increase was really something very well agreed on the market. They come from EUR 8. And with EUR 8, it's not very easy to get a proper meal on an everyday basis. So the EUR 8 to EUR 10 was really something which was desired by the entire market. And then I'm not saying it's going to change in one day to the other. But what we need to keep in mind that they had no increase over the last 5 years. And during that period, as we all know, inflation has been quite strong. So yes, I understand what you say. But if we just go back to the day-to-day life on the market, that is something which was really demanded on the side of the employees, the employers and the market.

The next question comes from Josh Levin from Autonomous Research.

I wanted to ask a follow-up question about the war and Mobility. You've talked about the impact of higher oil prices. What about the impact of kilometers driven? Are you seeing any slowdown in economic growth that's sort of translating into lower kilometers driven? And then on the Brazil, you spoke about the Brazil regulations, and I think you referred to it as a pure financial impact. Does that mean you are not seeing changes in the competitive landscape? I asked because some of the smaller companies like Swile and Caju were out last week saying that their pipelines have increased quite a bit in recent months.

Thanks, Josh. In terms of the war impact, probably we need to think of 2 effects, direct war impact, what we have seen or what we hear on the market is, number one, there is some type of trend to have a little bit less of [ health ] traffic. So then if things are being shipped by the sea, then you have a bit more of last milestone to cover in terms of kilometers, which is something that the mobility team has been observing during the month of March. So that's number one point. So yes, people could be tempted to do a bit less kilometer, but some more kilometers can be needed in some cases. And then whatever, that's also why I've been cautious in the answer about the impact of fuel price, but then kilometers are generally compensated by fuel price and vice versa. So this dual effect of having some contracts on volume, some contracts in fuel price is a little bit the ability to derisk and to compensate to moving parts. And then we have the Beyond, which is quite sensitive in Mobility. And we see a good traction into that, be it toll maintenance or freight payment in Latin America. In Latin America, there is no real alternate. So then the kilometers we stay there and the government are putting quite a lot of effort on maintaining the pump price to a level which helps the drivers and the economy to go on using transport. So all in all, that's why we say we see the tailwinds being for us on the rest of the year. And then I guess your other question was on Brazil and market dynamics and what [ Swile and Caju say ]. What we've seen in the quarter is really a double-digit in printing growth. So then we have seen a strong growth both in Mobility and in Benefits & Engagement in Meal & Food and Beyond. So yes, I understand that they say that there is a traction on the market because we've all seen it.

The next question comes from Sabrina Blanc from Bernstein. The next question comes from Julien Richer from Kepler.

Two questions, please. The first one on EnBW, the partnership you mentioned. Could you please give us a little bit more detailed color on the potential impact on growth for the Mobility division? And the second one, any update on the operating performance of CSI in Q1 and how you see the entire 2026?

Julien. And really, sorry, Sabrina, I hope you managed to come back. On EnW (sic) [ EnBW ], maybe the first thing I'd like to mention, Julien, is really we took a few examples to illustrate what's happening in Mobility, but this is not the only partnership or the only good commercial traction that we have had over the last months. So this is rather here to have an example value than really to have to put out an additional potential impact in the traction. Definitely, we have a platform business. And then one way of going is distributing more through our platforms, what we are doing, but there is fantastic potential in being distributed by others. And that's what we are aiming at. And the example of working with EnBW is also the ability to demonstrate, as Bertrand love saying it, that leaders work with leaders, and that's exactly what we are doing in this partnership. So I have personally not computed a lot of things in addition to that one, but this is really unlocking potential, and this is creating additional opportunities for additional partnership to come on top. And over the last year, we also added nice new names working with us. That's the dynamic which is in motion as we speak. And then -- sorry, the second one point...

Regarding operating performance of CSI...

Not spent a lot on that. CSI in the first quarter has been going on, on the same type of dynamics that we observed end of last year, not really accelerating, I would say, but it's working well.

There are no more questions at this time. So I hand the conference back to the speaker for any closing comments.

So really thank you for attending this call and for all the questions you raised to us today. If I may give just a few comments on what we said. Really, what we would love you to go out from this call is to keep in mind that what we see with this Q1 is that in the uncertain environment we are in and that might go on for the rest of the year, we've been able to maintain our upward trajectory and deliver sustained top line growth. And this is really demonstrating the strength of our diversified and resilient model. Thank you for that.