Atome Financial Singapore Pte. Ltd (GRAB) Earnings Call Transcript & Summary

Good morning, and good evening, everyone, and thank you for joining Grab's investor update session. I am Douglas Yu, Director, Strategic Finance and Investor Relations. And joining me today are Anthony Tan, Chief Executive Officer; Alex Hungate, President and Chief Operating Officer; and Peter Oey, Chief Financial Officer. Before we begin, we're going to be presenting both IFRS and non-IFRS financial measures. Please see the supplemental slides, our press release and our filings with the SEC for more disclosures about these non-IFRS measures, including a reconciliation of IFRS to non-IFRS measures. We are also going to be making some forward-looking statements today. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today, except as required by law. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today and in other filings made with the SEC. And with that, today, Grab is announcing an agreement to acquire a controlling 60% equity interest in Atome Financial, accelerating the growth and profitability of our Financial Services segment. Anthony will present the opening remarks, covering the strategic rationale and merit of the proposed transaction, Alex will describe our strategic road map and cover our strengths and track record in financial services, and Peter will discuss the outlook and capital allocation priorities. We'll begin with a presentation from our management team. And after the presentation, we'll have a Q&A session, and we encourage you to submit questions via e-mail through the presentation to investor.relations@Grab.com. And with that, I'll hand it over to Anthony.

Thanks, Doug. Good day, everyone, and thank you for joining us. Today, Grab is announcing a landmark acquisition of Atome Financial deepening our commitment to financial inclusion across Southeast Asia and accelerating the growth and profitability of our Financial Services segment. I want to first take a step back to emphasize that building businesses from the ground up is a new to us. We've already proven we can build a category-leading business, not once, but twice in mobility and in deliveries. Financial services, while nascent today is where we're confident and where we intend to prove it again. In mobility, we sell to make transportation safer for all across all while improving our drivers' earnings potential. Today, despite being in this business for 14-plus years, growth continues to remain robust and strong, with transaction growth still at 28% year-on-year. All of this is achieved with industry-leading adjusted EBITDA margins. In deliveries, we were actually first to market in this region, but we were able to grow rapidly because we could leverage the existing supply, we are already built in mobility along with a brand and recognition that came with it, which let us scale quickly through COVID. While many expected the business to decelerate or decline once the period ended, not only have we moved beyond that or we've done so sustainably, powered by our own product and tech land strategies with GMV growth accelerating to 24% year-on-year. Financial Services is our good segment, while it's still nascent, we have real conviction in its potential because it lets us leverage the same ecosystem, strength, trust and brand recognition and powered mobility and deliveries to unlock our next leg of growth. It's already our fastest-growing segment, and we are on track to exit this year with a gross loan book of over $3 billion and reached profitability in the second half of 2026. From here, we're targeting $500 million in adjusted EBITDA by 2028. Financial Services opportunity excites me because the headroom to grow ahead of us is enormous. Millions of people across Southeast Asia, still lack of formal credit history and shut out of traditional banking. This is exactly the gap we are well positioned to close. Despite how far Financial Services has advanced in markets in other parts of the world, the options here remains massive. It is simply not a credit card market. Only 5% of adults here own a credit card, a fraction of what you would see in a market like Brazil. Formal lending is just a thin, only 14% of adults have ever borrowed from a bank or financial institution. And what fills that gap today is informal borrowing from friends, from family, for instance, and those at the safe ones accounted for over 1/3 of lending across these markets. That gap between the credit people need and what the formal system actually provides is the option in front of us and closing it isn't something we're starting from scratch. I want to show you how far we've already come and where I believe the next chapter takes us. If you look at this slide, what you're really looking at is a story of how we build towards this moment piece at a time. We started to solve a basic problem, giving people markets without credit cards or former payment infra, a safe way to transact with each other on our platform. That early bet is why the majority of transactions on our platform now run through our own wallet. This was built from scratch to scale we have today. And it's also why we have industry-leading payment processing cost as owning that infrastructure ourselves let bring costs down for the entire platform. From there, we use the trust and the data that gave us to move into partner and ecosystem lending and insurance. Over 1/3 of our active drivers now carry a loan invest scale prudently and with discipline and nonperforming loans have remained stable or improved across the portfolio even as that scale has grown, which is also the foundation for the profitability we expect to reach in the second half of 2026. The next piece was digital banking. That took us somewhere credit. Our Digibank are able to take deposits and operate under the same oversight as any other financial institution with our footprint across Indonesia, Singapore and Malaysia. And the next piece this year was DASH. We completed the acquisition and added a micro investment platform. This not only let us diversify in the fee-based income streams, but also deepen our ability to help in both save and grow their investments for retirement building on how we already help them spend and borrow, which leads me to today and to Atome and to consumer lending. Atome is highly complementary to everything I just walked you through. Our lending so far has been led by driver and merchant lending close loop and embedded inside our own ecosystem. We do have consumer lending today, but still nascent. Atome is the natural next stage. It pushes us into consumer lending, which allows us to widen credit access to unbanked and underbanked across the region. Atome gives us that scale immediately, the same scale many of our peers have already reached by building organically over several years, often sustaining years of losses along the way. And this is the missing piece, it completes our stream of Financial Services stretching across lending, insurance, payments, investments and digital banking. Atome has substantial scale with a gross loan book of over $1 billion today, built across a wide range of over 30,000 unique brands and more than 25 million cumulative transacting users. And importantly, it does all this 1 already delivering a positive, profitable adjusted EBITDA contribution. Atome has a diversified portfolio that serves a wide range of consumer credit needs under 1 app. Atome card gives consumers a pay later card, they can use anywhere. Atome BNPL lets them shop and split purchases across your brand partners. Atome cash loan gives them accessible credit when they need liquidity beyond a single purchase. Every product here is built around individual consumers' everyday spending and borrowing needs, covering the full range of scenarios, whether they are paying a checkout, splitting up a purchase or drawing down cash. And it's this relentless focus on enhancing the product that has driven strong and durable growth for Atome. Atome's GMV has grown over 9x across the past 6 years, and it is adjusted EBITDA positive today. What makes this more notable is that this growth has held up to periods of weaker macro conditions across the region, a sign of how durable the underlying demand for this business really is. Atome's growth has not come at all costs. It has been achieved in a disciplined manner with prudent credit risk management and a constant focus on improving lifetime value, enabling the platform to also drive sustainable profitable growth. There are 2 factors that support this. First, delinquency rates have improved across every cohort and a 2026 cohort is the best performing yet. That tells us that underwriting is getting sharper and platform scales, not just that risk is being managed defensively. Second, but case frequency has stayed high and consistent running at an annualized rate in the 50s to 60s, and reaching a high of 62 transactions per user in the most recent quarter. That level of repeated engagement means this growth isn't coming from acquiring new users alone. It's coming from existing users transacting with Atome again and again, which makes the revenue base far more recurring and predictable. This is precisely the discipline we look for before scaling our lending business. And it's exactly what gives us confidence to accelerate from here. That confidence is grounded in Atome's credit underwriting engine on the most sophisticated in the region. Atome has built a system of over 100,000 variables and 131 models. That's what enables real-time credit decisions, credit approval rates above peers and loss rates consistently below industry benchmarks. What sets Atome apart, similar to Grab is, how deeply AI is embedded across the full risk stack through more than 22 live applications. Models are now built twice as fast, feature engineering is 6x more efficient, and risk monitoring is 4x more robust. The result speaks for itself. GMV has grown fourfold over the past 3 years and risk-adjusted margins have remained stable too. This is exactly the kind of platform you build from. You've just seen the scale and discipline Atome already has, and this is exactly why we chose to acquire and build this ourselves. The strategic rationale also stems from Atome operating in 5 of the 6 markets we are already in, which means it comes with scale in exactly the geographies don't matter. And beyond that, the strong potential for strategic synergies as a combined platform, combining our ecosystems will enable us to accelerate financial inclusion to the unbank and underbanked across the region. Atome leveraging the distribution and reach of Grab with ample opportunities to drive cross-sell opportunities across both of our networks. Let me put some numbers behind that opportunity, starting with where we stand today. As I mentioned earlier, consumer credit penetration across our own ecosystem is still nascent and smaller than what we see among peers. Of our 138 million annual transacting users, only 1% borrow from us today. That's a deliberately small number we prioritize prudence and profitability in scaling our Financial Services segment, even though we always knew that underlying demand was real. Atome changes that immediately, expands our lending reach and broadens the base of our users we serve from day 1. And as we expand the parameter of both platforms together over the midterm, we see the potential to scale our user base for lending by more than 10x from where we stand today. That's the real size of the option in front of us. Currently, our biggest lending exposure sits in DigiBank Retail and MSME, both larger today than our consumer fintech book. That's largely a function of tenure as DigiBank's loans run longer, so balances build up and stay on our books for longer. Our FinTech businesses, driver, merchant and consumer lending run on much shorter tenors with far higher origination and dispersal volumes. Of the 3 consumer is still the most nascent. At Atome's book as of the second quarter on a pro forma basis, and that changes immediately. Consumer cash loan exposure grows more than 16x from where we are today and consumer BNPL and card exposure grows more than 4x. Put together with what we already have in driver, merchant and digital bank lending, this gives Grab a sizable regional presence across nearly the full spectrum of consumer finance. Beyond the user and consumer exposure, we've just walked through, Atome also brings over 30,000 unique brands into the for spending categories like travel, electronics, home and lifestyle, fashion, beauty and e-commerce. This matters in 2 directions. First, it opens up a much broader cross-sell for Grab. These are categories we've historically never served, sitting at a different point on the frequency and average order value spectrum than our own F&B heavy merchant base. And it gives us a path to bolt on more products to serve these merchants over time. Second, it works the other way as well. Atome now gets access to cross-sell into our own merchant base, which focus is largely F&B. So this isn't just Grab gaining a new merchandise work. It's 2 ecosystems that can now sell into each other. Finally, and most importantly, our shared vision Grant's mission is it drives Southeast Asia forward by creating economic empowerment for everyone. Atome's mission is to improve the lives of consumers through greater financial access and technology. Put those 2 together and we arrive at a shared vision to accelerate financial inclusion by responsively extending credit access to the unbanked and underbanked across Southeast Asia. Jefferson founded to my 8 years ago under that same conviction that everyone deserves access to responsible credit, not just those with a conventional banking history. Having spent time personally with him and his team, I've come our way impressed by what they've built since then, and I'm confident in our decision to work alongside them. Turning this vision into results starts with how we structure the deal because we only pay full value for performance that Atome actually delivers, while acquiring a controlling 60% stake today for $1.49 billion in cash expected to complete by the third quarter of 2027. This is funded entirely from our existing cash. We'll maintain an ample net cash buffer after completion, where we intend to complete approximately $900 million in buybacks over the next 12 months. The remaining 40% is tied directly to Atome's adjusted EBITDA and revenue performance over the next 2 years. We're confident in Atome's ability to deliver, and this structure protects our share downside while keeping our capital allocation discipline. Atome's own management continues running their business through an earn-out period, which meaningfully derisk our exposure from day 1. This transaction reflects the same discipline we apply to every capital allocation decision at Grab. We'll only pursue inorganic options that clear a high hold of rate of return because we evaluate this deal or what the combination makes possible over time, including cross-sell running in both directions and a multiyear head start into consumer lending that will take significantly longer and cost significantly more to build on our own. The proposed transaction also drives meaningful upside to our group outlook and Peter will walk through the details of this in the section. To start, we are introducing 2 new guidances for 2028. First, we expect to scale our gross loan portfolio from above $3 billion by the exit of 2026 to over $6 billion by the end of 2028, driving meaningful top line expansion. Second, that growth carries our financial services segment adjusted EBITDA, including Atome to $500 million in 2028 building on the profitability. We expect this segment to reach in the second half of 2026. That guidance reflects growth achieved in discipline prudent manner, managing credit risk carefully even as we scale the top line. Together, these 2 targets flow straight true to our group numbers. We are raising our revenue growth guidance to 30% plus CAGR from 2025 to 2028, up from 20%, and raising our 2028 adjusted EBITDA target to $1.7 billion, up from $1.5 billion. Peter will take you through exactly how we get there later in this session. Taken together, this is a transaction that gives us instant scale in consumer lending, builds in a proven and complementary partner is structured with real discipline and already list our outlook for 2020. I'm excited about what Grab and Atome can build together. With that, I'd like to hand things over to someone who has been a close partner in getting us here. Jefferson Chen, Atome's Chief Executive Officer and co-founder has kindly recorded a short video to share a few words with you directly. [Presentation]

Thank you, Anthony. Thank you, Jefferson. You've heard how the combination of ATMI and Grab will bring together complementary capabilities and scale to accelerate growth and profitability. Now I'll describe how the combination creates value for users, partners and shareholders. Our financial services strategy is centered on embedded distribution, offering the right product at the point of an existing transaction directly within the primary flows of our users. We already have daily relationships with millions of consumers and merchants. So we reach potential borrowers at a fraction of the cost of a stand-alone lender. Every transaction generates a behavioral signal spending patterns, location, lifestyle, wallet management, that feeds directly into more accurate credit assessments. In many cases, repayments can also be deducted directly from the Grab Pay wallet, reducing friction for the borrower and lowering default risk for us. These 3 advantages compound into a flywheel that generates more value for the ecosystem as it scales. More transaction volume gives us better data insights, better data insights enhance our credit underwriting and better underwriting lets us price and reward more competitively. Better pricing attracts more partners and users and more partners and users drive more transaction volume starting the cycle again. This continuously improves our underwriting models and lets us scale the ecosystem more efficiently with better operating leverage over time. Atome accelerates this consumer underwriting flywheel by several years when compared with organic development. This not only enhances financial returns, but it also dramatically strengthens the whole on-demand ecosystem to bring this to life. Let's consider 3 examples of how customers experience these embedded personalized financial offerings. The recently launched GXS credit card is one example with white listing and limits decided based upon the data from the ecosystem. It makes spending on Grab more attractive by rebating Grab coins, which can be used to buy additional Grab services. Right Cover is built directly into Grab rides, giving users personal accident insurance during and after their trip. And GrabPay for travel lets inbound travelers use our payments infrastructure for cashless payments while they're in the region so that they can pay like a local. The most awful example of how well customers respond to this kind of embedding is our digital banking growth. We've scaled 9 million deposit customers across our 3 digital banks within just 3 years. Most of these signed up after seeing the bank's products embedded seamlessly in their customer journeys on Grab with little or no acquisition cost. So for example, 76% of GX Singapore's deposit customers are Grab users. That number is 92% for GX Bank in Malaysia, and 60% for Super bank customers who are either Grab or OVO users. We've seen how the Grab ecosystem drives customer acquisition for financial services via seamless embedding personalization and better underwriting. Now let's look at some equally compelling examples of how financial services power the ecosystem in turn, creating uplift for the whole platform. We see quantifiable increases in spend and engagement by consumers in Philippines and Malaysia after they draw down their loans. For example, GX Bank Flexi credit in Malaysia drove an 11% GMV uplift on Grab after drawdown and a 54% spend uplift through GS Bank payment methods. We also see better commissions and add spend adoption by merchants who borrow from us. This uplift isn't limited to our own ecosystem, embedding our services into partner ecosystems drives the same effect there, too. Let's hear directly from Michael La Cour, CEO of IKEA Singapore, an important GrabPay and pay later partner in this short video. [Presentation]

So the advantages for our customers, our ecosystem and our partners are significant and growing greater as our data flywheel scales. But how unique is our data. Well, first, it's real world data generated from an existing physical ecosystem, not something our model can scrape or generate, which is what makes it durable and hard to replicate. Grab operates as the system of record for local commerce across Southeast Asia. Real-time signals from over 50 million ecosystem participants, in-store payments, mapping telemetry across more than 900 cities and adding up to over 20 billion cumulative transactions since 2012. To put that in perspective, we process 300 petabytes of data every single day. No 1 else in the region has a data set of this depth, breadth or recency across both digital and physical commerce. Here is the data on this slide that proves that Grabs underwriting, using our proprietary ecosystem data outperforms underwriting that relies upon credit bureaus in our markets. We've built up 647 million cumulative repayment touch points, each one, a behavioral signal on how a user manages their obligations. This allows us to make better lending decisions, which is why at comparable approval rates, our models produce lower delinquency than traditional bureau models. And that has resulted in nonperforming loans across our consumer finance and banking portfolios staying stable or improving over time. And here I'm additional data on driver partner lending, showing how we've been able to scale significantly without compromising credit quality. Cumulative loan balances per cohort have expanded consistently over time. At the same time, cumulative charge-offs have improved and now follow a stable, predictable pattern. 68% of drivers access credit for the first time through Grab, and half of them say they did it specifically to avoid predatory lenders. In yet another illustration of the ecosystem flywheel, drivers who take loan with us complete 13% higher number of rides per month on average. We've been doing this for quite some time, and that shows in the maturity of the book. The discipline we maintain and how we manage these loans, while still underwriting competitively is what lets us consistently generate risk-adjusted returns above our cost of capital, even through several macroeconomic shocks such as COVID and oil price spikes. We have found that AI already drives measurable financial and operational outcomes. Grabs merchant AI systems has increased engagement with merchants by providing real-time suggestions for how to grow their business, menu changes, promotions, performance tracking. That engagement has also driven a sharp increase in lending dispersals. For example, at Highland, merchants receiving AI-driven lending recommendations saw a 19% increase in average disbursement versus the control group. The equivalent uplift in Indonesia was 7%. AI has improved collections productivity by 62% since 2022, with room to improve further from here also. So in summary, Financial Services is an integral part of our ecosystem, not a stand-alone fintech business, but a fundamental complement to our on-demand business. customers, partners and the ecosystem all benefit by the way that financial services are embedded, personalized and priced through our unique proprietary data. These benefits grow as our ecosystem scales. So the addition of Atome takes us to a whole new level of ecosystem value and financial performance. Finally, as the ecosystem scales, so does the value that AI can bring. So the timing for our acquisition of Atome really could not be better. Now over to you, Peter, to round up with the financial impact of the acquisition.

Thanks, Alex. Anthony and Alex have shared our strategic direction for Grab's Financial Services and our acquisition of Atome, the opportunity we're going after and the capabilities we have built to capture it. I will now walk you through how that translates into our financial road map and specifically, how our acquisition of Atome reshapes our group outlook in a meaningful way. Let me set the stage for how we think about growth and profitability across the group over the medium term. Now this chart is a useful standpoint because it shows where the 2 are emerging rather than trading off against each other. Financial Services has been our fastest-growing vertical gram and remains on track to reach profitability on an adjusted EBITDA basis in the second half of 2026, consistent with the guidance we've given. This segment, together with the GrabFin, digital banks, GXS, Superba and Stash was already built to be one of the key monetization levers for the platform. What the proposed acquisition of Atome does, it further accelerates that path so that upon completion of the transaction, it contributes to the overall group sooner and at greater scale than you would have. And given how underserved the credit market still is across our region, and the structural advantages in this segment, we believe we will be able to further reinforce with Atome. This is a profit pool. We have plenty of room to go into, while it depends less on winning share from a competitor and more on serving that's being met today. It also reinforces the ecosystem effect Alex talked about. When we can lend into our own ecosystem and rely enough of funding and distribution, the whole platform becomes stickier. And financial services also becomes a lever that strengthens our on-demand verticals in mobility and deliveries and also advertising. Mobility and deliveries remain our core on-demand businesses, and they continue to grow at a healthy clip. Mobility is operating in the 8.5% to 9% adjusted EBITDA margin range and growth remains robust. While deliveries continues to grow towards our 4% steady-state adjusted EBITDA margin target at a healthy growth rate. This chart illustrates why we believe why is the right call overbuilt. If we try to reach the same scale in consumer lending organically without a timing, the green bar shows what that path looks like. Real positive growth are building from a much smaller base and taking years longer to get where the yellow bars already are. That gap exists because of how lending economics work, with front book, the expected credit loss at the point of a loan is originated, while the revenue from the same loan is recognized. The more aggressively scale a lending book, the more that timing mismatch weighs on risk-adjusted revenue in the early years, even as the underlying economics are sound. Now Atome has already moved past that phase of it in build out. with Atome, we're acquiring a platform that's already further along that curve at a cost below what it would take us to build the equivalent capability ourselves. Because there's meaningful overlap between Atome's geographical footprint and ours, the synergies are sizable, which is what the yellow bars separate from the green ones. And that gap keeps unwinding every year. Put together, this is the advantage Anthony spoke about earlier. It lets us reach a substantially larger scale in risk-adjusted consumer lending revenue with a lower credit charge footprint than either business would carry building this loan, years ahead of where an organic bill would get us. The conviction we have in this outlook comes from 2 things together. First, the continued strength of our existing financial services vertical and second, with the proposed Atome acquisition adds on top of it. We're guiding towards $500 million in financial services adjusted EBITDA by 2028. Building from our expectation to reach profitability in the second half of 2026, off a base where the segment was still loss making in 2025 at a negative $110 million. This chart walks through the levers that gets us from there to $500 million. The most material one is user growth. As Atome extends our footprint alongside our core financial services vertical, we wanted the perimeter of who we can serve and deepen the penetration of consumer lending within the Grab ecosystem. And that increase in consumer penetration is the single largest driver of this bridge. From there, a shift towards longer tenure products and improving yields adds a further step up. And as our credit models continue to improve, we expect credit provisions to come down as a share of the book, adding another layer of margin. And finally, given the margin potential in the lending business at scale, we expect meaningful operating leverage as the fixed cost of running this platform, the underwriting infrastructure, the risk models, the servicing capability can spread across a much larger loan book without needing to scale at the same rate. Underpinning the adjusted EBITDA trajectory is an expectation that we more than double our gross loan portfolio from just over $3 billion we're targeting by the end of 2026 to over $6 billion by the end of 2028, assuming the timely consolidation of Atome, with an increasing portion of the gross loan portfolio coming from consumer loans. I want to be clear that we don't see this as a capital-intensive way to grow. The bulk of this loan book by 2028, will sit within GXS, GX Bank and Super Bank, our directly consolidated digital banks. And as the platform scales, we see room to move this funding mix towards increasingly lower cost sources over time. Atome's book today is already funded through its own financial partners, and that's a relationship we intend to keep on building as we scale together. And this platform grow risk, we see continued room to optimize our overall cost of funds across the group. The bottom line is this. Growing this line book to over $6 billion is not an equity-funded story. It's a diversified funding strategy, and that means significantly less strain on our balance sheet. Let me bring together everything I've just walked you through, the loan book, the financial services, adjusted EBITDA path and show you where it lands at the group level. With the consolidation of Atome and the $6 billion loan book and the $500 million financial services adjusted EBITDA target I just covered, we are upgrading our guidance at the group level. 2025 to 2028, revenue CAGR moves from 20% to 30% plus. And our 2028 group adjusted EBITDA target moves from $1.5 billion to $1.7 billion. Now you might be asking how do we arrive at an EBITDA outlook of $1.7 billion in 2028. There's 2 items that sets all this out. First, Foodpanda Taiwan, which we expect to complete in 2026 is at $60 million. Second, SuperBank and Atome together add $300 million, which is the more meaningful piece, and consistent with everything I've just walked you through earlier on. Now we're also choosing to deploy $160 million to widen our affordability offerings across the platform and to continue building structural advantages in groceries and retail. Both have already proven themselves as engines of accelerated growth with affordability driving a meaningful share of our new user and engagement growth across mobility and deliveries and grocery scaling at multiples of the rate of core of our core deliveries business. That momentum gives us real conviction to leaning further because the long-term opportunity in both categories remains massive relative to where we are today. It strengthens lifetime value for our users because it widens the range of products they have access to on our platform. It also deepens our structural mode in these categories. In the same way, Financial services is doing its side, growing what each user contributes to the platform over time. Put all of that together and you get to $1.7 billion, a number that reflects both the contribution from Super Bank and Atom and our decision to reinvest a portion of that into the platform's long-term competitive position. Capital allocation for this transaction follows the same 4 principles that govern every capital decision we make as a group. We remain disciplined in how we invest for organic and profitable growth. And that discipline extends directly to how we evaluate inorganic opportunities. A term met that bar. It is a proven consumer lending platform that lets us accelerate growth in this segment profitably, rather than spending years and capital building it ourselves. The structure reflects the same discipline. The upfront consideration is funded entirely from existing cash. The remaining stake is structured as an earn-out. So future payments are tied directly to Atome's actual performance rather than fixed today. We'll also maintain a strong balance sheet with ample liquidity. Even after this transaction completes, we remain committed to a healthy net cash position, and this deal does not come at the expense of our financial flexibility. This chart shows the track record behind that commitment. We announced our inaugural $500 million share repurchase program back in 2024 and repurchasing $226 million that year and completing the program with a further $274 million in 2025. This year, we view the dislocation in our share price as an opportunity to further lenient. We announced a $500 million program in February and follow that with a further $750 million program in August. Between the 2, we've repurchased $351 million through August 2026, and we intend to complete around $900 million of the remaining mandate within the next 12 months. Taken together, that brings our cumulative share repurchases from 2024 to $1.75 billion, representing over 10% of shares since the start of 2024, and we intend to cancel these shares. This slide brings some transaction together, and I'll summarize it bullet by bullet. Since most of the substance here, we've already covered. Firstly, this deal is built with capital discipline at its core. We're acquiring 60% control today in cash at signing. The remaining 40% is priced 2 years after completion based on deliberate performance, which means our exposure on their second tranche moves means how the business actually performed not with the fixed price locked in today. Secondly, on financial impact. The case for this deal is exactly what I've walked you through this section. Atome is expected to be accretive to our group revenue and adjusted EBITDA. We expect the combined financial services segment including Atome to reach $500 million in adjusted EBITDA and a loan book of over $6 billion by 2028. And that's the basis for raising our group targets to $1.7 billion in adjusted EBITDA and the 30% plus revenue CAGR over the same period. And third, on closing, we expect this transaction to complete by the third quarter of 2027, subject to regulatory approvals. With that, I would like you to hear directly from the team who will be running this business day to day. You'll hear from, who leads our Financial Services segment along with our Digital Bank leads and the Stash and tome teams. [Presentation]

Before we move to Q&A, let me close this slide and leave you with 3 things today. First, this transaction gives us access to a proven operator in consumer lending. And that lets us accelerate our expansion into this category in a far more sustainable way and at a faster pace than if we try to build it ourselves. Second, this reflects the same disciplined capital allocation we apply to every investment we make. It's funded entirely from our existing cash. It's expected to be accretive to our group adjusted EBITDA and completion and it does not come at the expense of our balance sheet strength or our ongoing share repurchase program. We're guiding to $500 million in financial services adjusted EBITDA and a $6 billion loan book by 2028, and we do this without compromising the shareholder returns, we remain fully committed to. And third, the opportunity in front of us is significant. Consumer fintech penetration across our region remains very low, which means there is massive headroom to grow into. And Atome is a highly complementary fit for that opportunity. We've already shown we have the right to win in financial services, built on our track record so far, the strength of our ecosystem and our data and our ability to manage collections and credit risk discipline. Thank you for your time today. We'll now move to Q&A.

Thanks, Peter. And with that, let's move to Q&A. [Operator Instructions] Our first question comes from the line of several analysts. We have Alicia from Citi, Ranjan from JPMorgan, and Jiong from Barclays. So this is a question for Alex. Grab has been pursuing financial services and online lending for years. Why are you choosing now to buy a consumer lending business? And What does Atome have an edge over Grab and why can't replicate this on its own.

Thanks. Great question. Yes, we have a successful business lending to drivers and to merchants. But we've only just begun the journey of lending to consumers. In fact, only 1% of our 138 million annual transacting users have taken a loan from us. So we're starting off on the consumer journey. This acquisition is an opportunity for us to leapfrog the 10 years of learning across multiple products and multiple markets that Atome has already been through. So we don't have to go through the pain of all the credit losses to train those models. The Atome team have done a fantastic job. Their AI-driven underwriting is best-in-class. They've developed a great company that's growing very fast. Net growth in 6 years. They are already profitable, generating strong cash flows and the prospect of using our data to improve their credit models to the next level is actually a big leapfrog in terms of the capability that they've built already. And frankly, the distribution that they've built up with 30,000 brands, retail brands across their network would also take us many years to build up. So it's a great combination of assets that will give us tremendous revenue synergies together.

Thank you, Alex. So for the next question will come from Venu of Bernstein and Divya of Morgan Stanley. This is a question about the Atome management. So the question is, will the founder and the top management of Atome remain with the business? And are there any commitments for that? So this is another question for Alex.

Yes. Jefferson and Chen, the 2 founders and the rest of the team are super talented. With this earnout structure, I think there's a very strong incentive for them to remain around for those 2 years. And frankly, we also share a common mission to help this -- close this financial inclusion gap across Southeast Asia. So we believe that with shared mission, shared values that we believe we share with them, there's a very good chance that many, many of them, hopefully, all of them will stay around even past the 2-year period. So we're looking forward to working with them during the 2 years so that we can start to integrate the teams.

Okay. So this question now moves to the guidance of the $500 million EBITDA for financial services and from Zhiwei Foo Macquarie. This is a question for Peter. So on Slide 36, your slide shows improving cost leverage to be a significant driver of EBITDA growth to achieve the $500 million. What do you need to do to execute on that component?

The way to think about it is if we just step back first, the Financial Services segment was loss-making in 2025. And when we also announced in last quarterly earnings, we said that they'll be expected to be profitable in the second half of 2026. So you see the trajectory of the profitability of our Financial Services business. Now on the cost leverage, your question around improving cost leverage, I would say 4 things here. I think the first one, which is the biggest opportunity and the largest driver is the user growth because Atome really extends that footprint. We operate across 5 markets that we share today, and it deepens the whole consumer lending penetration across all out Grab ecosystem today. It really just complements in terms of what we have across not just the interfinancial services, whether it's our banks, but also our on-demand services that we can really start to amalgamate work together on. That's the first one, the user growth. The second one is a shift towards longer tenured products. And part of that complementing that will be improving yields at the same time. As you know today, a majority of the loan book today is sure on the driver side is very short tenured. And we've always had an aspiration to actually extend those 10 products, and this is now a great opportunity for us as we team up to really shift towards that much longer tenured products and also improving that yield. So that's the second one. The third one is as the credit provision comes down a show the book we see that our credit models continue to improve. And that's really, really important. One of the secret sauce of lending, as you really all know, is the credit engine, the risk appetite and the credit model age. And this is where Atome really comes in. And together, also, we could really improve the credit provision coming down, which improves operating leverage in the business. And lastly, as operating leverage is just the fixed cost, the whole underwriting infrastructure, the risk model, the servicing, the collections, we all get spread now across a much larger loan book without really scaling at the same rate. So lots of opportunities.

All right. Thanks, Peter. So next question is more specific to Atome, asked by several analysts as well as. This is from Ranjan from JPMorgan and Zhiwei of Macquarie. So a question for Alex. Can you talk a little bit more about the profitability of Atome. From the question as asking though it's very low at the moment. So just want to understand what's the reason for that? And is there any additional financial metrics that we're able to share such as ROE, yields, cost of credit or a tenor of the book?

Okay. Yes. So actually, the -- it's moved into profitability relatively recently. But the growth trajectory of the profitability is very attractive and is rapidly moving into providing strong profitability. And that's obviously a good time for this acquisition because the high growth continues, but the operating leverage in their own model is showing very clearly over the last 12 to 6 months as it comes through into generating strong profitability. It's a very complementary fit, as we talked about earlier. So that revenue growth, we expect to continue to grow, which will drive further operating leverage, and that profitability is achieved with a very high growth rate on loan dispersals. So as you understand, when you disburse a lot of loans, you also incur the provisions for those loans. So even with those, it's generating very attractive profitability currently. Going through to 2028 as that process continues and compounds, it will account for a good part of the EUR 500 million that Peter talked about earlier in our guidance. So we are -- we know that the cash flow is already attractive. They will grow rapidly over time now as the revenues increase. And the revenue growth of Atome as a standalone will be accelerated by working with the Grab ecosystem. So it should grow even faster than they would have done on a stand-alone basis. We're not providing risk-adjusted returns specifically for Atome at this point. But in terms of the long tenor, I will say that these are relatively shorter tenor loans, and the average is below 6 months for the entire Atome portfolio.