COMPAGNIE DE L'ODET Financial information for Q1 2025April 29, 2025 Stable revenue for Q1 2025: +0.2% at constant scope and exchange rates (+4.2% on a reported basis*) Revenue for Q1 2025At constant scope and exchange rates, Compagnie de l’Odet revenue for first-quarter 2025 rose 0.2% to 782 million euros: Bolloré Energy: 675 million euros, down 0.2%, owing to lower selling prices for petroleum products, offset by higher sales volumes; Industry: 78 million euros, up 1.5%, based on growth in 6-meter bus sa ...

Financial Data and Key Metrics Changes - Q4 net sales increased approximately 15% year over year to $3,250,000,000, resulting in full year 2024 net sales of $11,860,000,000, representing 6% year over year growth [8][16] - Adjusted EBITDA margin for fiscal year 2024 reached 4.8%, reflecting year over year expansion of approximately 150 basis points [9][20] - Free cash flow for fiscal year 2024 was a record $452,500,000, converting approximately 80% of adjusted EBITDA into free cash flow [10][21] Business Line Data and Key Metrics Changes - Autoship customer sales increased by 21% in Q4 and nearly 11% for the full year 2024, representing 80.6% of Q4 net sales [8][18] - The sponsored ads business reached approximately 1% of net sales for full year 2024, contributing significantly to gross margin improvement [10][44] - Chewy Vet Care Clinics opened eight locations in 2024, with plans to open eight to ten new clinics in fiscal year 2025 [11] Market Data and Key Metrics Changes - Active customers reached 20,500,000, marking the first year over year growth in eight quarters, with a 2.1% increase year over year [9][17] - Net sales per active customer (NESPAK) reached $578, representing a 4.1% year over year increase [18] - The overall pet industry is expected to continue normalizing, with Chewy anticipating to gain market share in 2025 [65][66] Company Strategy and Development Direction - The company aims to achieve a long-term adjusted EBITDA margin target of 10%, with expectations for further margin expansion in 2025 [13][26] - Chewy is focused on enhancing customer engagement through improved marketing strategies and app experiences, which are expected to drive active customer growth [32][58] - The company plans to leverage its first-party software for sponsored ads to enhance media content and expand its advertising capabilities [44][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver active customer growth in 2025, driven by strategic initiatives and improved marketing [9][34] - The management noted that the promotional environment remained stable, with minimal inflationary pressure expected in 2025 [70][71] - The company is optimistic about its growth prospects, expecting to continue gaining market share despite a normalizing pet industry [66][70] Other Important Information - The company repurchased approximately 32,800,000 shares in 2024, reducing BC Partners' ownership by approximately 16% [22][23] - Chewy ended the year with approximately $597,000,000 in cash and cash equivalents, remaining debt-free [24] Q&A Session Summary Question: Can you unpack what's driving the change in active customers? - Management noted that the momentum from Q3 continued into Q4, resulting in year over year active customer growth for the first time in eight quarters, driven by improved marketing strategies and customer engagement [30][34] Question: Can you help us understand the momentum on the gross margin side? - Management indicated that the fourth quarter gross margin was as expected, with EBITDA margin expansion driven by improvements in gross margin and operating efficiencies [35][36] Question: Can you talk about automation and the path to 70% to 80%? - Management confirmed that over 40% of volume is currently automated, with plans to ramp up automation in the Houston facility to achieve higher efficiency [41][42] Question: How do you see the landscape for net new customer growth versus reactivations? - Management highlighted that new investments, particularly in Chewy Vet Care Clinics, are driving new customer growth, while existing programs like Chewy Plus are stimulating reactivations [54][56] Question: What are you seeing from a promotional perspective in the pet landscape? - Management reported a stable promotional environment with a significant portion of the portfolio being price protected, leading to minimal inflationary pressure [68][70]

Financial Data and Key Metrics Changes - For the fourth quarter, the company reported a net loss of $1 million, while adjusted operating income was $15 million, primarily driven by strong performance from Enact, which contributed $137 million to adjusted operating income [11][12] - For the full year, net income was $299 million or $0.68 per share, with adjusted operating income of $273 million [12][26] - The company ended the fourth quarter with holding company cash and liquid assets of $294 million, including approximately $186 million in cash set aside for future obligations [13][38] Business Line Data and Key Metrics Changes - The Long Term Care (LTC) Insurance segment reported an adjusted operating loss of $104 million in the fourth quarter, driven by a liability remeasurement loss [23][26] - Enact delivered $137 million in adjusted operating income for the fourth quarter, reflecting a 6% year-over-year increase [27] - The Life and Annuities segment reported adjusted operating income of $5 million in the fourth quarter, including a net favorable impact from model and assumption updates [24] Market Data and Key Metrics Changes - Enact's primary insurance in force grew 2% year-over-year to a record $269 billion, supported by new insurance written and continued elevated persistency [27] - The company achieved $40 million in gross incremental premium approvals in the fourth quarter, with an average percentage increase of 23% [14] Company Strategy and Development Direction - The company is focused on three strategic priorities: creating shareholder value through its stake in Enact, maintaining self-sustainability in its legacy LTC business, and driving future growth with CareScout [13][21] - The CareScout quality network has expanded to nearly 500 home care providers, with a goal to cover 70 million aging individuals in the U.S. [10][17] - The company plans to invest $75 million in the new CareScout Insurance Company in 2025 to meet regulatory requirements [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress made in 2024 and the momentum building for future growth, particularly through CareScout and Enact [7][21] - The company anticipates that CareScout services will generate significant claim savings and revenue over time [16][18] Other Important Information - The company has reduced its wholly-owned company debt to $790 million, down from $4.2 billion at the beginning of 2013 [9] - The multi-year rate action plan (myRAP) has contributed a total of $31.2 billion in net present value to the legacy business since 2012 [8] Q&A Session Summary Question: Can you provide more details on CareScout services revenue expectations? - Management indicated that CareScout services already generate revenue from the assessment business and expects to grow revenues from matches between policyholders and the CareScout quality network [44][46] Question: What is the update on the timing of the UK court case? - The court case is scheduled for early March and could last about six weeks if it goes to trial without a settlement [51] Question: Will the $75 million capital contribution to the new CareScout insurance entity come from existing holding company resources? - Management confirmed that the funding for growth initiatives, including the capital contribution, is included in the base operating plan [52]