1Q25 Earnings Call 20 May 2025 NASDAQ: GDS HKEX: 9698 0 © GDS 2016 DISCLAIMER This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other sim ...

Financial Performance - Q1 2025 revenue decreased by 33% YoY to CHF 722 million, driven by lower hardware sales and right-pricing activities [45] - Q1 2025 Adjusted EBITDAaL increased by 04% YoY to CHF 240 million, with a margin of 332% [45] - Capex increased by 95% YoY, reaching 198% of revenue, totaling CHF 143 million [45] - Adjusted FCF was negative CHF 117 million, impacted by higher Capex and supplier payments [45] - FY 2025 guidance confirmed, expecting broadly stable revenue and stable to low-single digit growth in Adjusted EBITDAaL, with Capex/Revenue at 15-16% and Adjusted FCF between CHF 370-390 million [13, 61] Customer Growth and ARPU - Continued net customer additions growth, but YoY slowdown due to reduced commercial activity and UPC customer base migration [38, 41] - Mobile ARPU declined by 36% YoY due to reduced roaming usage, reaching CHF 286 [38] - Fixed ARPU declined by 53% YoY due to right-pricing efforts, reaching CHF 580, but supported by a one-off correction of ~CHF 030 [38] - FMC (Fixed-Mobile Convergence) as % of base increased to 583% [38] Strategic Initiatives - Launched a new "More-for-More" mobile portfolio focusing on customer loyalty [15, 20] - Sunrise's mobile network is now "5G Standalone" ready, the first in Switzerland [15, 32] - Shareholders approved FY 2024 dividend payment of CHF 240 million [15] - Delisting of Class A ADS from Nasdaq scheduled for August 2025, with ~82% of Class A ADS and ~98% of Class B ADS converted [15]

Core Insights - ZIM Integrated Shipping Services Ltd. reported Q1 2025 revenues of $2.01 billion, a 28% increase year-over-year, with net income of $296 million, up from $92 million in Q1 2024 [1][5][7] - The company achieved a carried volume of 944 thousand TEUs, reflecting a 12% year-over-year growth, and an average freight rate of $1,776 per TEU, a 22% increase from the previous year [4][5][7] - ZIM reaffirmed its full-year 2025 guidance for Adjusted EBITDA between $1.6 billion and $2.2 billion, and Adjusted EBIT between $350 million and $950 million [1][15] Financial Performance - Q1 2025 Adjusted EBITDA was $779 million, an 82% increase from $427 million in Q1 2024, with an Adjusted EBITDA margin of 39% compared to 27% in the previous year [5][9] - Operating income (EBIT) for Q1 2025 was $464 million, significantly up from $167 million in Q1 2024, resulting in an EBIT margin of 23% compared to 11% [8][9] - The company declared a dividend of $89 million, or $0.74 per share, representing approximately 30% of its quarterly net income [1][12] Operational Highlights - ZIM's net cash generated from operating activities was $855 million in Q1 2025, compared to $326 million in Q1 2024 [10] - The net debt position decreased to $2.49 billion as of March 31, 2025, down from $2.88 billion at the end of 2024, with a net leverage ratio of 0.6x [5][11] - Capital expenditures for Q1 2025 totaled $78 million, up from $24 million in the same period last year [11] Market Strategy - The company is focusing on adapting its network to changes in cargo flow, particularly from Southeast Asia to the United States, highlighting its agile commercial strategy [3] - ZIM's fleet transformation includes a significant portion of LNG-fueled vessels, enhancing cost-effectiveness and sustainability [3]

Financial Data and Key Metrics Changes - The company reported net gaming revenue of €57 million for Q1 2025, an 8% increase compared to Q1 2024 [10][13] - Adjusted EBITDA was €1.8 million, marking the fifth consecutive quarter of positive adjusted EBITDA at the consolidated level [13][14] - On a constant currency basis, net gaming revenue would have been €62 million, reflecting a 17% increase year-on-year [11][14] Business Line Data and Key Metrics Changes - The casino segment contributed 61% to total net gaming revenue, driven by a 13% increase in average monthly active users [11] - In Mexico, net gaming revenue grew 15% to €30.5 million, while in Spain, it remained flat at €22 million [13][16] - The average monthly spend per active customer decreased by 5% to €118 [11] Market Data and Key Metrics Changes - The Mexican peso devalued by over 16% in Q1 2025, impacting net gaming revenue by €5 million [16] - The number of average monthly active customers in Mexico increased by 31% year-on-year to 82,000 [17] - In Spain, the number of active customers rose by 4% year-on-year, reaching 52,000 [15] Company Strategy and Development Direction - The company is focusing on optimizing customer acquisition channels, particularly in Mexico, where growth opportunities remain compelling [17] - There is an ongoing effort to adapt promotional strategies in Spain to improve customer quality and retention [15][36] - The company plans to maintain its investment in Mexico while cautiously exploring opportunities in other markets like Panama and Argentina [48][49] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by currency fluctuations but expressed confidence in meeting full-year guidance for net gaming revenue between €220 million and €230 million [19] - The company expects a difficult comparison for Q2 results but anticipates less impact thereafter as they lap significant devaluation from the previous year [17] - Management is optimistic about resuming growth in Spain, supported by positive trends observed in recent months [65][66] Other Important Information - The company has initiated a share buyback plan of up to $5 million, with approximately $5 million already spent on repurchasing shares [12] - The company is currently under a mandatory monitoring period by NASDAQ but expects to resolve compliance issues soon [6][10] Q&A Session Summary Question: What is driving the decrease in customer acquisition cost despite increased user acquisition? - Management indicated that testing new traffic sources led to reduced CPA and higher first-time depositors, although the revenue impact was lower than expected [25][28] Question: What is the impact of competition on Spain's revenue growth? - Management confirmed that the reintroduction of welcome bonuses and increased competition are primary drivers for flat revenue growth in Spain [34][36] Question: How does the company view investment opportunities in other markets? - Management noted improvements in Panama and a cautious approach in Colombia, with plans to increase investment in Mexico [46][48] Question: Will Spain return to revenue growth for the rest of the year? - Management expressed confidence in resuming growth in Spain, supported by positive signals from KPIs [65][66] Question: What are the dynamics of the share repurchase program? - Management clarified that the board approved a $5 million buyback plan within a broader $10 million shareholder authorization [81][82] Question: Is there any progress on the Argentina license acquisition? - Management indicated that there has been no significant progress on the Argentina license acquisition due to pricing issues [84]

Financial Data and Key Metrics Changes - The company reported net gaming revenue of €57 million, an 8% increase compared to Q1 2024 [9][12] - Adjusted EBITDA was €1.8 million, marking the fifth consecutive quarter of positive adjusted EBITDA at the consolidated level [12][13] - On a constant currency basis, net gaming revenue would have been €62 million, reflecting a 17% increase year-on-year [10][12] Business Line Data and Key Metrics Changes - The casino segment contributed 61% to total net gaming revenue, driven by a focus on this segment and a lower sports margin in Mexico [10] - In Mexico, net gaming revenue grew 15% to €30.5 million, while in Spain, it remained flat at €22 million [12][15] - The average monthly active users increased by 13%, while the average monthly spend per active customer decreased by 5% to €118 [10][12] Market Data and Key Metrics Changes - The Mexican peso devalued by over 16% in Q1 2025, impacting net gaming revenue by €5 million [15][17] - The number of average monthly active customers in Mexico rose to 82,000, a 31% increase year-on-year [16] - In Spain, the number of active customers increased by 4% year-on-year, reaching 52,000 [14] Company Strategy and Development Direction - The company is focusing on optimizing customer acquisition channels and maintaining its market position in Mexico, which is seen as a core market with significant growth potential [16][62] - The management is adapting promotional strategies in Spain to improve customer quality and retention amid a competitive landscape [14][35] - The company plans to continue investing in Mexico while remaining cautious in other markets like Colombia and Argentina due to regulatory challenges [46][52] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by currency fluctuations but expressed confidence in meeting full-year guidance for net gaming revenue between €220 million and €230 million [19][50] - The company expects a difficult comparison for Q2 results but anticipates less impact thereafter as they lap significant devaluation from the previous year [17] - Management is optimistic about the potential for revenue growth in Spain, despite current competitive pressures [64] Other Important Information - The company has initiated a share buyback plan of up to $5 million, with approximately $5 million already spent on repurchasing shares [11][83] - The company is currently under a mandatory monitoring period by NASDAQ but has regained compliance by filing its 2023 annual report [5][6] Q&A Session Summary Question: What is driving the decrease in customer acquisition cost despite increased user acquisition? - Management indicated that testing new traffic sources led to reduced customer acquisition costs, although the revenue impact from these new customers was lower than expected [24][27] Question: What is the impact of competition on revenue growth in Spain? - Management confirmed that the reintroduction of welcome bonuses and increased competition have affected revenue growth, but they are seeing positive trends from adjusted promotional strategies [32][35] Question: Are there plans to increase investments in other markets? - Management noted improvements in Panama and a cautious approach in Colombia, with potential for increased investment in Mexico due to upcoming events [46][52] Question: Will Spain return to revenue growth for the rest of the year? - Management expressed confidence in resuming revenue growth in Spain, supported by positive KPI signals [64][66] Question: What is the rationale behind the share repurchase program? - Management explained that the board approved a $5 million buyback plan within a broader shareholder authorization, allowing flexibility in execution [82][83] Question: Any updates on the Argentina license acquisition? - Management indicated that progress remains stalled due to pricing issues, but they are still open to opportunities [86]

Financial Performance - Q1 2025 - Revenue increased by $2.2 million, representing a 45% increase compared to Q1 2024[9], with total revenue reaching $7.056 million[6, 31] - The Kyber acquisition contributed $1.7 million, accounting for 35% of the revenue increase[9] - Internal growth accounted for $0.5 million, representing 10% of the revenue increase[9] - Net loss decreased by 7%, from $(1.213) million in Q1 2024 to $(1.126) million in Q1 2025[6] - Adjusted EBITDA was marginally negative at $(51) thousand, a -149% change from $104 thousand in Q1 2024[6, 31] Balance Sheet - Cash and equivalents increased to $35.666 million as of March 31, 2025[20] - Net working capital remained relatively stable at $27.829 million as of March 31, 2025[20] Full Year 2025 Outlook - The company expects full-year 2025 revenue to be between $28 million and $30 million[21] - This represents a 39% to 49% increase over the 2024 revenue of $20.2 million[21] - Adjusted EBITDA is expected to be between $(1.0) million and $1.0 million for the full year 2025[21]

Financial Performance - Codere Online achieved a Q1 2025 Net Gaming Revenue (NGR) of €57 million, an 8% increase compared to Q1 2024, despite facing foreign exchange headwinds[25] - The company reported a positive Adjusted EBITDA of €18 million in Q1 2025[25] - Mexico's NGR increased by 15% year-over-year in Q1 2025, or 34% in constant currency, driven by a 31% increase in active customers[49] - Spain experienced a 2% decline in NGR in Q1 2025, but saw a 4% increase in active customers[43] Customer Acquisition and Engagement - Codere Online acquired approximately 322,000 new customer registrations with 91,000 First Time Deposits (FTDs) in Q1 2025, resulting in a 28% conversion rate[25] - The Cost per Acquisition (CPA) was €198 in Q1 2025[25] - Average Monthly Actives reached approximately 161,000 in Q1 2025, a 13% increase compared to Q1 2024[25] - Average Monthly Spend per Active was €118, a 5% decrease compared to Q1 2024[25] Financial Position - Codere Online has €42 million in total cash, with €37 million available, and a negative Net Working Capital (NWC) position of €18 million as of March 31, 2025[58] Outlook - The company projects a 2025 Net Gaming Revenue (NGR) between €220 million and €230 million and an Adjusted EBITDA between €10 million and €15 million[67]

Core Insights - Codere Online reported a strong start to 2025, with net gaming revenue reaching €57.0 million in Q1, an 8% increase year-over-year [3][5] - The company is on track to meet its 2025 net gaming revenue outlook of €220-230 million and adjusted EBITDA outlook of €10-15 million [4][5] Financial Performance - Total revenue for Q1 2025 was €54.3 million, with net gaming revenue at €57.0 million, reflecting an 8% increase compared to Q1 2024 [5][8] - In Mexico, net gaming revenue grew by 15% to €30.5 million, while Spain saw a slight decline to €21.9 million, down 2% [2][3] - The average monthly active players increased by 13% to 161.3 thousand, with significant growth in Mexico at 31% [2][3] Operational Metrics - The total cash position as of March 31, 2025, was €41.8 million [5] - The company repurchased $0.5 million of its shares under a $5.0 million share buyback plan [5][9] Compliance and Governance - Codere Online regained compliance with Nasdaq listing requirements as of May 15, 2025 [9] - The company is actively working to complete the audit of its 2024 financial accounts and expects to file the 2024 annual report by the end of May 2025 [9]

Core Viewpoint - CPI Aerostructures, Inc. reported a significant financial impact in Q1 2025 due to a pre-tax loss of $2.1 million on the A-10 Program, which has higher manufacturing costs under a fixed-price contract from 2019. The company is taking steps to mitigate further financial degradation from this program [3]. Financial Performance - Revenue for Q1 2025 was $15.4 million, down from $19.1 million in Q1 2024 [9]. - Gross profit decreased to $1.6 million, compared to $3.6 million in the same period last year, resulting in a gross margin of 10.7%, down from 18.6% [9]. - The company reported a net loss of $1.3 million in Q1 2025, compared to a net income of $0.2 million in Q1 2024 [9]. - Adjusted EBITDA was $(0.8) million, a decline from $1.2 million in Q1 2024 [9]. Balance Sheet and Debt Management - The total debt was reduced to an all-time low of $16.7 million, with a Debt-to-Adjusted EBITDA Ratio of 2.9, marking the ninth consecutive quarter below 3.0 [4]. - Total assets as of March 31, 2025, were $65.36 million, down from $67.98 million at the end of 2024 [12][13]. Operational Outlook - The company ended the quarter with a strong backlog of $516 million, including new program awards from major clients such as L3Harris, Raytheon, Lockheed, and Embraer [5]. - CPI Aero is focused on operational improvements and transitioning from legacy programs to future-oriented programs [5].

Core Insights - Maui Land & Pineapple Company, Inc. reported a significant 134% year-over-year increase in operating revenue for Q1 2025, totaling $5,804,000 compared to $2,483,000 in Q1 2024, driven by higher occupancy and commercial real estate leasing income [2][6] - The company is launching a new agriculture-based business venture focused on cultivating Agave, which is expected to enhance productivity of underutilized croplands and create local jobs [3][4] - Despite increased operating expenses, the company maintained strong liquidity and improved Adjusted EBITDA, which was $200,000 for Q1 2025, a favorable increase from a loss of $212,000 in Q1 2024 [2][12] Financial Performance - Operating revenues for Q1 2025 were $5,804,000, a $3,321,000 increase from Q1 2024, with land development and sales revenues at $2,298,000, attributed to the Honokeana Homes Relief Housing Project [6][19] - Leasing revenues increased by 45% to $3,219,000 in Q1 2025 from $2,216,000 in Q1 2024, due to efforts to improve occupancy and market rates [6][19] - Operating costs rose to $7,583,000 in Q1 2025 from $3,882,000 in Q1 2024, primarily due to increased construction costs related to the housing project and higher leasing costs [6][19] Future Outlook - The new Agave venture is seen as a long-term growth opportunity, potentially funded in partnership with mission-aligned partners, and aims to integrate local distillation and agri-tourism [4][3] - The company anticipates improved GAAP income moving forward due to successful pension restructuring and a decrease in share-based compensation expenses [2][12] - The net GAAP loss for Q1 2025 was ($8,640,000), or ($0.44) per share, compared to a net loss of ($1,375,000) or ($0.07) per share in Q1 2024, largely driven by non-cash pension expenses [12][19]