Vusion S.A. ($VU)

Good day, and thank you for standing by. Welcome to the Vusion First Quarter 2026 Sales Webcast and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to Olivier Gernandt, Vusion's Investor Relations Officer. Please go ahead.

Thank you very much, Nadia. Good afternoon, good morning, everyone, and welcome to our first quarter 2026 sales presentation. With me today are Thierry Gadou, our Chairman and Chief Executive Officer; as well as Thierry Lemaitre, our Deputy CEO, Corporate and Finance. Thierry Gadou will make some remarks on the group's operational highlights, Thierry Lemaitre will then discuss our group's financial performance and more specifically our 2025 consolidated accounts, and Thierry Gadou will conclude our presentation with some remarks on our full year outlook. After these remarks, we will be happy to take your questions. As a reminder, some of the information to be discussed on our call today is forward-looking and subject to important risks and uncertainties that could cause our actual results to differ materially. For these, I refer you to the safe harbor statement included in our press release and on Slide 3 of this presentation. This evening's release was issued a short while ago and is available in French and in English on Vusion Group's website, vusion.com. The slides of this presentation and our consolidated accounts can also be found on our website in the Regulated Information section. A replay and a trascript will be available -- will be made available on our website after the call. And with that, it's my pleasure to hand you over to Thierry Gadou for his opening remarks.

Thanks, Olivier. Good afternoon, good morning, everyone. Thanks for joining our conference call. I'm very pleased to present along with Thierry Lemaitre, our commercial performance for the first quarter of the year. So in summary, we delivered 26% organic growth in Q1, reaching EUR 294 million in adjusted revenue. At constant foreign exchange rates and tariffs, this would be a 36% growth and the actual IFRS revenue reached EUR 289 million. Now it's very close to adjusted figures and up 34% year-on-year. Order entry reached EUR 316 million. VAS revenues grew by 53% at EUR 51 million, representing 17% of total sales, and our annualized ARR is above EUR 110 million, up 60% year-on-year. And we reiterate our 2026 guidance of continued profitable growth. So a year that started on a strong positive note. The first quarter confirms our strong commercial momentum, as I just said, plus 26% growth of adjusted revenue, plus 34% growth of IFRS revenues and plus 36% growth at constant dollar and tariff rates. Our growth is solid. Our business reflects increasing demand from retailers to digitize their stores and put them at the core of their omnichannel strategy. Both large regions are growing. In America, the accelerated rollout of EdgeSense at Walmart is very successful and is expected to reach peak deployment pace over the next 2 quarters with full fleet completion expected by the end of this year. This project is accelerating Walmart's e-commerce growth and improving key operational metrics, productivity, planogram compliance, employee customer satisfaction. It demonstrates at a very large scale the value of our technology platform in terms of operational performance improvement and e-commerce acceleration. In parallel, several other leading-edge innovation projects are underway with Walmart alongside the start of their international rollout expansion. For the market, this is -- this deployment is an impressive showcase, which is having a massive influence on the industry's strategic thinking about the future role of stores at the heart of omnichannel. And in the U.S. particularly, significant activity is underway around a growing number of pilots, which are now mostly focused or refocused on the EdgeSense platform and on VusionOX Bluetooth-based infrastructure, which allows, as you know, the shelf to interact with nearby shoppers and associates. We see great future potential here. The U.S. market remains relatively underpenetrated, 15% to 20%, including Walmart, and is expected to ramp up rapidly in the coming years, catching up with Europe. Speaking about Europe, growth is back in the EMEA region. Sales grew by nearly 10% and are expected to accelerate in the coming quarters. The modernization and the further penetration of our large customer base, plus all the new contracts signed in recent months, notably in France, the United Kingdom, Germany, Spain, are supporting robust growth trajectory, particularly driven by the U.K. Although the DACH region, so Germany, and German speaking countries remain the largest subregion for Vusion. As I said, the momentum should strengthen over the next quarters and European growth is expected to exceed 20% for the full year. Talking about order entries, global order entries totaled EUR 316 million in Q1. It's a minus 40% below last year's Q1. We expected the comparative basis to be challenging this quarter because last year Q1 was our absolute record -- historic record quarter with over EUR 0.5 billion in new orders in only just -- in only 3 months. But this Q1 is still our second best first quarter ever and fully in line with our expectations. Also at the end of Q1, our 12 months cumulative order entries are at a solid EUR 1.5 billion. Key contracts announced in Q1 include Carrefour and Walmex. However, note that the Walmex numbers are not included in the Q1 order entries of the group. So as a reminder, on February 18, Carrefour, one of the world's leading retailers and Vusion announced a signing of a strategic partnership. As part of its 2030 strategic plan, Carrefour has selected Vusion to digitalize all its hypermarkets and supermarkets in France. This partnership covers the deployment of EdgeSense, VusionCloud and Captana in France first, but with a 3-year exclusivity in Europe, and we are already starting pilots in other countries. And then at the very end of the quarter, on March 30, Walmart expanded its strategic partnership with Vusion to deploy the EdgeSense platform in Mexico, which is Walmart's first market outside the United States, across Walmex Express stores and Supercenters. This expansion reinforces the deep and global partnership between Walmart and Vusion, which will continue to expand now on several geographies, several solutions and innovation projects. Talking about the VAS activity. VAS revenue reached EUR 51 million in the first quarter, representing a strong growth of 53% and representing approximately 17% of the group's total revenue, a significant increase compared to the 14% in the full year of '25. Nonrecurring VAS increased by 45% to EUR 23 million. But the VAS growth was even more driven by recurring revenue growth, which reached EUR 28 million, up sharply by 60% compared to the first quarter of '25, and driven by the strong momentum in VusionCloud. The VusionCloud installed base grew significantly in the first quarter, reaching over 400 million ESLs. For reference, last year, at the end of March '25, the cloud installed base stood at 188 million connected ESLs. This momentum is expected to continue throughout '26. Also note that in Q1, for the first time, Captana order entries reached several tens of millions of euros and acceleration perspectives are becoming clearer as IoT and AI-based real-time shelf monitoring is emerging as a growing need among retailers to optimize inventory, availability, e-commerce and customer satisfaction. With this strong start of the year, the rapid growth of our VAS and a highly promising project pipeline in both Europe and the Americas, we are confident in our '26 targets and our medium-term growth outlook. Annual adjusted revenue growth is expected to be between 15% and 20% at constant exchange rates and tariffs. Adjusted revenue should be relatively evenly split between the first and the second half, both around EUR 800 million to EUR 900 million. And both the EMEA region and the Americas and APAC regions are expected to grow over the full year, with momentum set to strengthen in Europe -- throughout the Europe. The rest of the world is expected to see stronger growth in the first half than in the second due to the completion of the Walmart rollout in the United States by the year-end. Total VAS revenue is expected to increase by around 40%, representing a growth roughly twice that of the group at the top line. This performance will be driven by strong momentum in both recurring and nonrecurring VAS. The group also targets improved profitability with adjusted EBITDA margin expected to increase by more than 100 basis points. Finally, we target increased operating free cash flow generation and a strong balance sheet at year-end with a positive net cash flow, excluding the possible impact of potential acquisitions. Looking further ahead, given our innovation leadership, our substantial project pipeline and the growing market demand, we stay focused on achieving the ambitions outlined in our Vusion '27 plan presented in November '22 and are very confident in our medium-term growth prospects. I will now hand over to Thierry Lemaitre for an additional information on our full year '25 financial results.

Thank you, Thierry. So the Board approved today the final 2025 consolidated financial statements, which includes an additional EUR 58 million income compared with a set of figures presented on the 26th of February. This EUR 58 million are an unrealized exchange gain that were not recognized in the P&L. It turns out yet that even though it is an unrealized, therefore, potential and [ noncash ] profit, we have to book this positive impact in the consolidated P&L, which we did in the final version of the 2025 audited financial statements approved today by the Board of Directors. This EUR 58 million entry has only impacted the financial income and the net income in the financial consolidated statements. And since it is unrealized, it has, of course, no impact on cash. The [ URD ], including the audited consolidated and statutory financial statements approved today by the Board will be available on the company website next Monday.

Thank you, Thierry. And I think we can now move to questions. So we'll take your questions now.

[Operator Instructions] And now we're going to take our first question, and it comes line of Hugo Paternoster from Kepler Cheuvreux.

Can you hear me?

Yes, we can.

Great. I will have a couple of questions. And the first one is just on Walmart, on the U.S. perimeter. I did not had in mind that the rollout was expected to end this year, if I understood correctly from your press release. Would it -- what would it mean? Is that Walmart is more in a rush to roll out more of its store for this year? And you had that in mind when you build your 2026 guidance, it will be my first question?

Yes. We -- well, we -- I think we said that in -- or we wrote actually that it would be completed this year or by the beginning of '27. So there is always an uncertainty. Doesn't depend on us exactly when the -- given the holiday season imperative, we sometimes are uncertain about exactly whether it's going to end in January or February or November or before Christmas. So there was an uncertainty, but we had in mind -- we have in mind when we built our guidance that the intent of Walmart is to go in this project as fast as possible. And so we were, let's say, being relatively prudent because it doesn't all depend on us, but we were anticipating this.

Okay. Okay. So now you are potentially more view that it will be done all the remaining part for 2026. And if I remember correctly, at the end of last year, you had already -- you were already at 50% of this -- of the total value of this contract, correct?

Yes. I don't...

We had delivered approximately 50% of the stores.

Yes. Okay. Okay. Another question is still on Walmart, most likely on Walmex. You have announced a win there. Just wonder where are you in term of discussion for super express for the Bodega -- for the supercenter, excuse me, and the Bodega shops there? Can you provide some color on it and the level of discussion whether potentially it can include some computer vision and this kind of stuff?

Yes. So on Walmex, I think we try to clarify it. So the agreement right now includes the rollout of the express stores and the supercenters in the country. And we are also running a pilot on La Bodega, which is another format of smaller stores, but there are many of them. And so this will be decided after that pilot because pilots have been done on express and supercenters we wouldn't get on Bodega. So we are currently in the process of doing this pilot on La Bodega. So there might be a further announcement in the future, but I have no visibility on that yet. But right now, it's express and supercenters. And right now, it's the EdgeSense platform, let's say, as in the -- with the similar functions and -- functionalities as in the U.S. And if we move to rolling out and finalizing CV solutions in the U.S., it will probably -- generally speaking, the platform will be relatively -- the intent is to have a homogeneous set of functionalities and platform throughout the group. So it should be also coming to Mexico later on.

Okay, okay. And the supercenter will be also deployed in 2026, and I believe it will last again in 2027 and potentially beyond?

Yes, yes. We have not yet a detailed planning. So it will be around -- across '26 and '27 for express and supercenters.

All right. Understood. And final question is on the rate of growth for Europe. I think you said that in the call early, but I missed it. What is your expected rate of growth for EMEA for this year?

Above 20%.

Above 20%.

We said basically, we're starting with 10% this quarter, but that the momentum should accelerate over the year.

Okay. I understand. So I believe that on your guidance, it will be mainly EMEA that will make the variable to reach between 15% to plus 20%, is that correct?

Europe will grow faster for once, will grow faster than America. But I think we said that both regions will grow.

Now we're going to take our next question, and the question comes from the line of Xavier Le Mene from Bank of America Securities.

Two, if I may. The first one actually on Carrefour. Can you potentially give us a bit more color on where you are because the partnership was announced in February, but have you started to deliver some of the stores? And what is potentially the plan for '26 and beyond '26 with Carrefour that would be quite helpful. The second aspect is on the U.K. So you started and you signed a lot of contracts last year in the U.K. So can you tell us potentially how big the U.K. was in Q1, and what you're expecting going forward? And should we expect Morrisons, Co-op and the Asda that to be all in 2026? So is it going to roll out into 2027 too? That will be my 2 questions.

Okay. Well, Carrefour is just -- the project was just signed in February. So we are not starting the rollout. You have some manufacturing lead times and a number of things to prepare when you prepare a big rollout in these many stores. So the rollout will take place over the next years. I think Alexandre Bompard, the CEO, was very clear publicly that he wants to go fast and certainly not wait until the end of 2030 because this was announced in the 2030 strategic plan. So we said that, and so we think it's going to take place over -- starting this year in H2 and then continuing in '27 and '28. And there is a large scope, full scope in France, and then there is an exclusivity in Europe. We're starting pilots in other countries. So it's going to be developing over the next years, and it's starting -- it will start in -- slowly in H2 and then accelerate in next year. Sorry, and the second question, sorry. Yes, about the U.K. Yes, we -- as you said, I mean, last year was -- we signed a significant amount of contracts, there is Co-op, there is as Morrisons, there is Asda Express. And so these projects are entering in deployment phase and this will continue over this year and next year. So it's also going to be across those next 2 years. So -- but it's starting, and it's is going to accelerate. And so it's a good momentum. As I said, U.K. is the fastest-growing region in Europe. It's not the biggest one. DACH is the largest subregion in Europe, but U.K. is the fastest growing, which is logical because they were, in terms of adoption, lagging behind. They really started the momentum, I'd say, 2 years ago. So it's a very fast adoption, but we will -- we're expecting, generally speaking, this kind of pattern that the countries that are coming later will actually catch up with the most advanced country in terms of adoption, much faster than obviously the pioneering countries.

Now we're going to take our next question, and the question comes from the line of Baudemont Flavien from Bernstein.

I have 3 questions on my side. The first one is, can we please have more detail on the phasing of Walmart deliveries this year? I think that deliveries were a little bit softer this quarter versus the previous one. So I guess it's fair to assume that we're going to have an acceleration going forward. For the second question, we know that you do not comment on customer basis, but can you give us more detail on the contribution of Carrefour orders within the Q1 numbers? And the third question, can you also comment on your recurring VAS revenue? Is the growth mainly coming from new cloud connection and pick-to-light functionalities? Or is there a meaningful contribution for Captana this quarter or by the way new order VAS services?

So regarding Walmart, you're right. There was strong deployment until the very end of the year. And so there is a bit less in Q1. I think I mentioned that Q2 and Q3 are going to be very strong. And so -- and it will then phase out during Q4. And so that's the peak. So yes, we see an acceleration in Q2 and Q3, which are going to be the peak in terms of rhythm of deployment. That's why we mentioned that H1 and H2 are going to be roughly around EUR 800 million, EUR 900 million in this ballpark both of them, which means that obviously, by difference in H1, you can see Q2 is going to be a very strong quarter, and that's driven also by the peak. Regarding the Carrefour, we -- well, we don't talk about order entries number or revenue numbers by customer. The recurring revenues are driven -- I think you can see the really strong momentum in the adoption of our cloud platform, which includes several functionalities and that is obviously managing price promo, managing pick-to-light, stock-to-light and other functionalities. But overall, this is included in the what we call the VusionCloud platform. There are different products and different features, but this is -- and I think we mentioned that at the end of Q1 last year, we were below 200 million cloud-connected labels or cloud-managed ESLs. And at the end of this year, we are -- at the end of Q1 this year, we are at 435 million or at least way above 400 million. So the momentum is really strong. And that's the main driver of our recurring revenues. Right now, Captana is more at the stage of taking up in -- taking off, sorry, in the order entries, so not yet visible in a very -- strongly in the recurring revenue because you have to always install infrastructure first and then the recurring revenue comes later. So it's not -- it's essentially the contribution of the cloud platform that is delivering this impressive growth in ARR.

Okay. Maybe just a follow-up on the last question on Captana. Are we going to see a pickup in Captana's revenue this year? Or are we going to wait for next year?

We see a -- I mean, as I said, we are -- this year, we are -- I think you mentioned last in February -- at the end of February, I mentioned that we would be installing about 100,000 to 150,000 AI cameras, and that this quarter, for the first time, we have significant orders. So we will see revenues in Captana take off this year. And I think in order entries it's not finished. We will see also -- we expect at least a strong dynamic in order entries in Captana and a very visible takeoff in '27 in both sort of infrastructure revenues, camera revenues, but also the recurring revenue. So it's a very positive momentum we see, and we're extremely sort of positive on this market and on Vusion's position in this market. We see Vusion AI and real-time shelf monitoring enabled by IoT and AI as a very strong need, increasing need of retailers to optimize inventory and availability and also to accelerate store fulfilled e-commerce. So very strategic growth we believe that Vusion AI is the next big unlock in the store digitalization. And that Vusion is very well positioned to be successful in this market.

Now we're going to take our next question, and the next question comes from the line of Valentin-Paul Jahan from Stifel.

Do you hear me well?

Yes.

My first question would be on Captana. Is it possible to get more granularity on the order intakes currently? Is it more concentrated on a few big customers? Or is it split among multiple smaller clients? And the second question would be about the fact that you reiterated your ambitions for the 2027. And I just wanted to have your feeling about the, yes, the [ latent ] phasing of order intakes to come in the next year -- in the next, sorry, quarter to [ bridge ] the EUR 2.2 billion revenue that it implied in 2027 and the revenue that you -- in the order intake on a 12-month rolling basis that you currently have? This is first Q1. I mean it implies if my calculation are correct, around -- on average around EUR 600 million of order intakes on average for the next 3 quarters. So just to get a view on if it's more coming on Q2, Q3 or Q4 for you?

Very, very good question. Thank you. So the first question is -- so Captana order entries are coming from a few large orders. And obviously, we know that on 18th of February, we signed a significant partnership with Carrefour, which includes the rollout of Captana. So you must -- you probably have not have noticed at this point, so it's part of it, but there are other. And there are -- it's spread across, I would say, 10 serious customers, but there are a few larger orders in this ballpark number that we gave, a few tens of millions of euros of order entry. So it's spread across a few retailers. So 10, 2 or 3 are larger, obviously, it's always the same case. And there are many more which are more at -- still at pilot stage so represent small order entries, fragmented because at this stage, but there are many more starting in the pilot. So that's how it's structured. And so there is also the Walmart pilot expansion, et cetera. So regarding '27, yes, I think you're absolutely right. We expect to continue to have a strong momentum in order entries this year. We have a strong pipeline for the rest of the year and onwards. We expect to grow our order entries and to certainly -- I mean you mentioned the number. And over the next 3 quarters, we expect to be over that number and to be essentially growing our full year '26 order entries compared with last year. And we are, yes, still targeting to reach our '27 ambition. We see also a driver of this momentum should be the acceleration of VAS order entries. That's a very important component of our business model, of our strategy, and this should be much more visible this year and preparing for an acceleration in '27. So that's an important part of our -- of the way we build it. So it's true that the acceleration of the Walmart rollout has pulled in some revenue from '27 to '25 and '26. This is true, and it's making the target a bit more difficult to reach. But based on our pipeline, based also on the -- on what I just mentioned as this additional driver of the acceleration of VAS, we still consider, and this is our target to reach our ambition in '27, which is an ambition we set ourselves 4 years ago. So it's some time ago, but we still see this really possible based on our pipeline and on the market demand.

Now we're going to take our next question, and the next question comes from the line of Laurent Gelebart from BNP Paribas.

Three questions. So the first one relates to the guidance. As you are basically going to deliver [indiscernible] this year versus heading in [indiscernible] in Q1 2027, why haven't you been upgrading the guidance for the currency fiscal year? That's the first one...

Sorry, Laurent, I'll stop you because, Laurent, I'm sorry, I stopped you because we can't hear you well. I mean at least here in the room, we can't hear you.

Okay. So, yes, I am in an airport, so it's not [indiscernible].

I understand.

My first question is...

Okay. [indiscernible]. Yes.

Yes. The second question is, can you help us to understand why in terms of the funding for the CapEx line you received EUR 311 million, but you have been spending only EUR 221 million whereas the CapEx line are all up and running. So the EUR 90 million difference between the 2? And the third question is can you help us on the accounting mechanics of the revenue recognition coming from the nonrefundable CapEx funding from Walmart? Or is it fair to say that basically what you recognize as turnover is carrying 100% gross margin?

I'll take the first one. I'm not sure we understood the third one, but we will come back to you just -- so there is no upgrade on the guidance. I think we confirm our guidance as basically 15% to 20% at constant rate and exchange rate and tariffs. It means that roughly this year, we are considering -- we said at this level, we are considering about 2 halves, which should be roughly equivalent, EUR 800 million, EUR 900 million both. It's not more precise at this stage, obviously, but that's giving us the EUR 1.7 billion to EUR 1.8 billion. But again, this is -- there is no change in the guidance because we are considering our -- Q1 is on plan for us. So we were -- I think there is no reason in the Q1 for us to change. We see the year exactly as we unfold. We give an additional information here with the breakdown between H1 and H2. And I will hand over maybe to Thierry for the second one, which is a bit more, yes, financial.

Second was about the funding, the $320 million that you're referring to are in dollars, the EUR 210 million are in euros. So there is already a change in the currency. And on top of that, the funding by Walmart was already including the cost for the maintenance that we're going to incur over the full period of the lifetime of the project. So the EUR 210 million, that's just the picture as of the end of 2025. But it doesn't mean that we have already anticipated all the costs deriving from the operation of the lines. On top of that, it has always been very clear with Walmart that we had set a price per line. If the cost has exceeded the price per line, it would have been on us. If we succeeded in better managing the overall cost, that would be some kind of an upside for us. So that's the situation on the line. Second topic, do not mistake the funding and the recognition of the revenues. Walmart is funding the lines, but then we charge Walmart for a full costing approach, including, of course, the amortization or the usage of the manufacturing line. So we don't said that portion of [ orders ], which is we've charged with a certain level of margin and then the invoicing of the manufacturing line with 100%. That's the totality of the cost and then the totality of the revenues, including, of course, a recharge of the manufacturing line. So no, we don't have 100% margin on the manufacturing line. That's not the proper way to analyze the situation on Walmart.

Now we're going to take our next question, and the next question comes from the line of Aurelien Sivignon from ODDO BHF.

I have a couple of follow-ups. First on revenue phasing. So you are guiding between EUR 500 million and EUR 600 million of revenue in Q2 stand-alone. Just to make sure I understand correctly. So can you confirm that the step-up in Q2 versus Q1, is it only related to the phasing of the Walmart rollout? Or are there, let's say, other material rollout expected to ramp up in Q2? Then on Walmex, should we expect the order intake for supercenter to be recorded in Q2 or rather later in the year? And last one, still on Walmex. Could you say maybe a few words on the potential with the Bodega format, I mean in terms of size and also timing decision maybe?

Thank you, Aurelien. Aurelien, could you repeat the first question? I'm not sure I completely got it. The sound was not really good and...

Yes, sure. So you -- so if I understood correctly, your guidance for Q2 stand alone is for revenue between EUR 500 million and EUR 600 million, so -- which is, I would say, much bigger than the Q1. And just to make sure I understand correctly, is it only related to the phasing of the rollout with Walmart? Or are there any other rollouts that are expected to ramp up in Q2?

No, it's both things. It's also the momentum in Europe. It's an acceleration of the sort of deployment in Walmart, but it's also the momentum in Europe. We said that the momentum in Europe would be, let's say, intensifying over the quarters this year. And so it's really both. And the second quarter is going to be strong, but with growth in both regions. And then the second, regarding Walmex, yes, the answer is yes. It should be in Q2. I can't answer your question about the Bodega. I think it's better to wait until we finalize the pilot because then we will know, well, first, whether the ROI makes sense and Walmart goes on with the rollout in Bodega. And then we'll see also what kind of solution set would be chosen for the stores. So it's a bit -- it's not -- we're not ready to make an answer on this. We're more at pilot stage. But yes, the order entries will be in Q2 for this Mexican project, yes.

Now we're going to take our next question, and it comes from the line of Xavier Le Mene from Bank of America Securities.

I've got some remaining question. Just looking at your sales, your revenues back to 2020, 2021 and 2022, which means 5, 6 years ago. How much of that can we potentially see coming back? What I mean is there old customers renewing and going for the new technology 5, 6 years after signing the contract? And you had about EUR 1.3 billion of sales, if I aggregate these 3 years. So is there something you can comment there? Or what should we potentially expect going forward in terms of all clients coming back 5, 6 years later?

Yes. Well, first, it's a very good question and a very important aspect of our business. In fact, it's -- there is a lot of repeat business with our customers. We are having regular swaps and upgrades because since we innovate a lot, a swap is never a replacement, it's very often an upgrade. And that happens depending on the retailers every 6 years, 5 years, 7 years, it depends a lot -- I mean, depends on the appetite to upgrade precisely and to take on new technologies, new features. And so yes, we consider that in a market where there is a lot of already installed -- strong installed base, like particularly in Europe, we will have a growing part of our business, which will be renewals and upgrades on our installed base. And on top of that, we have, of course, the development of our customer base, so -- which is the increasing penetration on our customers because they are not yet fully equipped far from that. It's -- in average, it would be somewhere around 50% penetration. So there is a lot of renewals. And in a market -- in the most mature market, where we are past 50% adoption, 60% adoption, there are some even markets in which we are -- the penetration is higher. We have a strong component of renewals in our ESL sales. So it will be an important -- and it's true that we have acquired many new logos in 2018, 2019, 2020, '21, and those are going to fuel also the momentum. And already, if you think about the case of Carrefour typically, Carrefour is also a player that had already previous generations of ESL are moving to a new generation and renewing its stores. It's a perfect example. And there will be many large retailers in Europe in this situation in the coming years.

There is no way you can quantify how much renewal you get from these old contracts, kind of percentage of, I don't know, 50% of the customers renew it after 5, 6 years or something like that?

Well, I mean if you take an average of 6, 7 years, you can basically derive an average of saying you have an installed base of 10,000 stores or 50,000 stores, and you can derive the number of -- percentage of the installed base that is renewed every year. So it's quite an easy calculation to make. But obviously, that part of renewal will grow. And in the next 5 years, it's probably going to be a very significant, if not -- in some markets, it's going to be more than half of our market will be renewals. And there is not so much churn in this market. We have roughly relatively loyal customers who stay with us because we innovate a lot and so they -- so you would have to go into much more detail account-by-account sort of list to be more specific. But I think I gave you relatively precise rules to -- or indications to calculate it.

And now we're going to take our last question for today, and it comes to line of Gill Crespel from Alizes.

Congratulation especially on the VAS side, which is quite -- both the good news and good thing for the future. My question was very short ones on confirmation. Thierry mentioned that about 60% of Walmart stores were rolled out. I just wanted to clear that this was including all phases, both Phases 1, 2, 3. So approximately the total overall should have been something like 4,600 POS. Is that correct?

Well, the 4,600 stores is correct. I think that this is -- and the fact that it's going to be covered at the end of the year is correct, too.

Thierry mentioned that 60% of the stores had been delivered. Is this correct?

You mean -- when did he -- I mean we haven't communicated this...

Earlier in the conversation, in the first -- as an answer to the first question, I think Thierry mentioned that 60% of the Walmart stores have been delivered. That's why I was keen to confirm.

I said approximately [ 55 ], not the [ 60 ].

Sorry, I didn't get the answer.

I said approximately [ 55 ] at the end of '25.

At the end of '25. And my second question was on the order intake. I think that was our beloved CEO, so the other Thierry, who mentioned the order intake was a bit disappointing in the first quarter, but was the second best in terms of last 12 months. Did I understand it correctly because it didn't match my computation?

Yes. No, absolutely, I didn't say that. I said precisely that Q1 -- I didn't say it's disappointing. I don't think I said that. It's...

No, no, I did. I did.

Okay. No. Well, sorry to disappoint you, then. But the reality is what I said is that it is below and actually 40% below last year's Q1. I just mentioned that last year's Q1 was an exceptional high quarter, EUR 0.5 billion in just 1 quarter. So it was a difficult comparison basis to -- let's say, to match this quarter. That's what I said. And I said, yes, it is in line with our expectation, and it is the second best Q1 in our history, the second best Q1 one in our history because there is a bit of seasonality. So I mean, second best Q1. So although this is the best Q1 by far, it was last year Q1 because it was EUR 0.5 billion in just 3 months. And that's the second best Q1. That's what we said. And it's true.

Okay. Very clear.

And I said -- and then we said that the 12 months accumulated was EUR 1.5 billion.

Yes, which is more or less what I have.

Yes. Yes. Thank you, Gill. Well, thank you, everyone. So we'll -- we wish you a good end of day. Good evening, and we will now actually see each other for the Q2, basically, and in the meantime, for some of you, surely for the General Shareholders' Meeting on June 4. And so with this, I wish you a good evening. Thank you, and bye-bye.

This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.