CIMPRESS plc (CMPR) September 2026 Capital Markets Day Transcript

Hello and welcome to Simpress's 2026 Investor Day. My name is Meredith Burns, Vice President of Investor Relations and Sustainability. I'm very happy that you're here with us to learn about the progress that we're making across Simpress. Today we will hear from executives representing Simpress, Vistaprint, Upload and Print, National Pen and Build Design. It's a great lineup. There are management bios available in the speaker bio tab of the webcast viewer. All right, now let's talk about how we're going to spend the next roughly three hours together. Robert will start with some perspective on our advantages and progress against our strategic and financial goals. Next, Martin will discuss creating value through shared technology and AI. Then Florian will demonstrate the progress we're making in Vistaprint. Sean will review our financial results and outlook, along with a deeper look into recent tech and M&A. Now, at that point, we're going to take a short break and then come back for two panel discussions, one on manufacturing and supply chain excellence as a driver of growth and efficiency, and the other on AI as a driver of growth and efficiency. And then finally, we'll finish with a Q&A session to cover any other questions beyond those panel discussion topics. Now, in terms of what to expect today, we are going to cover both pre-submitted and live questions during the event. You can submit questions anytime using the Q&A chat button, and we will take as many questions as we can in the Q&A session at the end of the event. A replay and supporting content will be available on our website after the event. Some of the numbers that we will show or discuss today are non-GAAP. You can find reconciliations to GAAP measures posted on ir.sympress.com or in the download section of the live webcast viewer. And finally, you can expect that we will be sharing our thoughts about the future. So this is a great time to note that our actual results may differ materially from these statements about the future due to risk factors that are outlined in detail in our SEC filings and also here on this slide. We invite you to read them. And with that, let's get started with Robert Keene.

Hey, thank you, Meredith. Welcome, everyone. I really want to thank you for your interest in Simpress. My goal this morning is really to share my perspective on our company, why our competitive moat in manufacturing and supply chain is widening and becoming even more valuable in an AI-driven world, and how our strategy and execution is underpinning our fiscal 2028 financial targets. Simpress helps millions of businesses build brands, stand out, and grow. The customized physical marketing products and the branded merchandising which we produce bring our customers' business identity to life in tangible, physical form. The value that we deliver to our customers has made us the global leader in web-to-print mass customization, delivering high-quality, affordable, customized physical products quickly and conveniently, even in low quantities. Thanks to our disruptive business model, our deep bench of talented team members, and our scale advantages, Simpress has delivered a long history of growth and profitability. Importantly, we have a clear growth strategy and very specific operational initiatives to extend that track record. That's why more than a year ago, we set out public targets for fiscal 2028 adjusted EBITDA and why we recently raised that target. The trajectory is straightforward. In fiscal 26, we generated $3.7 billion of revenue and $458 million of adjusted EBITDA. Our fiscal 2028 targets takes adjusted EBITDA to at least $615 million. Just as importantly, that profit growth converts to a meaningfully higher free cash flow and significantly reduces our leverage. In his session, Sean is going to take you through the specific drivers and the financial path for each of these years. Note that our uppermost objective is not actually EBITDA. It is intrinsic value per share. But as I wrote in the annual letter we published in July, we're using EBITDA as a measurable milestone by which investors can judge our progress on the path to significantly higher intrinsic value per share. Now, our market, the web-to-print market, is an evolving one, and we are leaning into that and capitalizing on the market forces and trends that are driving that evolution. First, generative AI is lowering the barrier to create attractive visual assets. That's a tailwind for SimPress because design so often needs a physical manifestation. Second, our manufacturing and supply chain capabilities are world-class and unmatched. AI is democratizing design creation, and as that happens, SimPress benefits from our hard-to-build, defensible capabilities in the physical realm. Who can manufacture a bespoke physical product, even in small quantities, deliver it quickly, and do so profitably at unbeatable prices? That is SimPress. We are the lowest cost producer with the broadest product offering, the greatest market share, and the largest geographic footprint in the web-to-print world. And third, we are growing strongly with products that we refer to as elevated products, and we're evolving into new channels via partnerships and expanded advertising opportunities. Now, the addressable market for small and mid-sized business physical marketing and branded merchandising across North America, Europe, and Australia exceeds $100 billion. But most of that volume is still offline, and web-to-print penetration varies significantly by product category. For our legacy products, like business cards, holiday cards, flyers, and photo mugs, online penetration is high and our market share is very strong. But growth is slow given the market's maturity. Average per customer value is also low because the use cases for these products are relatively limited. In contrast, large categories, and several of these, create a very large market which remains offline. Web-to-print penetration is happening, it's early, and SimPress is leading the migration online. These categories largely consist of what we call elevated products, and I'm going to discuss those in detail shortly. because they make up the majority of the wallet that businesses spend on physical marketing branded merchandise, they are also essential to attract, to serve, and to retain high-value customers. That is what our strategy is built to do. Our strategy places high-value customers at the center. Everything else is in service of them. When we serve high-value customers well, we win more of their wallet share, which increases their lifetime value, and we get better for all of our customers. Around high-value customers, we have three strategic objectives, rapid growth of elevated products, design enablement, and manufacturing and supply chain excellence. We also have three ways of working. Those are velocity, continuous improvement and efficiency, and shared strategic capabilities, for example, our mass customization platform and our procurement expertise. Wrapped around all of that is AI. And we're using AI to deliver customer value faster, to remove friction, to boost productivity. And we're doing that across every business and in every function. So this strategic framework is a key part of how we align our team members to our priorities, and you'll find more details and examples of this in my annual letter. We translate our strategic framework into action via growth levers and efficiency levers. Our growth levers are wallet share expansion, elevated products, new channels, and tuck-in acquisitions or equity investments. Our efficiency levers are manufacturing supply chain excellence, standardizing and sharing technology platforms, increasing the collaboration between various Simpress businesses, and AI-driven simplification and automation. We staff operational initiatives at Simpress with talented team members whose job is to execute on these two types of operational levers, and that ensures operational execution. It also makes us confident that we are going to significantly expand our adjusted EBITDA and free cash flow over the next two years, while simultaneously funding investments that will support revenue and profit growth well beyond fiscal 2028. In the next few slides, I'll give you some examples of progress in each of these drivers. Let's start with wallet share and the gains we've been making there. And I'll use our largest business as an example. The chart on the left shows Vistaprint's annual variable gross profit as an average amount per customer. This is a metric that we share with earnings each quarter, and it allows you as investors to track our progress. Vistaprint grew that metric 10% in fiscal 2026, which was an acceleration over the multi-year CAGR since 2021, which has been about 7%. High-value customers are the primary driver of the expansion, which you see on this slide. Historically, Vistaprint's customer base was characterized by high-churn, price-sensitive, low-LTV customers ordering deeply discounted business cards and other legacy products. That actually was a very strong foundation that served us very well in our early history, but we have fundamentally evolved our offering, and we're growing our wallet share in the same type of businesses who had previously only purchased our legacy discount products. As Vistaprint satisfies more of a small business's brand building needs, retention increases, lifetime gross profit per customer expands, and customer acquisitions are amortized more effectively thanks to that higher LTV. You'll hear much more about this in Florian's presentation on Vistaprint. Let me turn to elevated products, and as I mentioned a few moments ago, these are fundamentally important to attract, serve, and retain high-value customers. The images on this slide show examples of these types of products. Customers place a higher value on these items because they really are primary touchpoints for their brand identity. Being great at these types of products allows Simpress to earn a much larger portion of their overall marketing budgets. And in some cases, like packaging, we become an integral component of the products which they sell. And that actually leads to even stronger revenue retention rates due to our customers' ongoing replenishment needs. In fiscal 26, promotional products, apparel, and gifts, something we grouped together under the term PPAG, represented $825 million in revenue across Sympress. That accounted for about 22% of our revenues. Within Vistaprint, constant currency PPAG revenue growth was 11%, reaching over $355 million, with variable gross profit from this category growing 16%. In custom packaging and labels, we have these specialized brands, for example, BoxUp in North America and PackStyle in Europe. And together, those two firms or companies achieved constant currency growth of 33% in fiscal 2026. Now, elevated products require sophisticated mass customization capabilities and manufacturing capabilities. So we are investing in these operations in order to deliver highly competitive quality, highly competitive fulfillment speed, and highly competitive price. Here are examples of products that are launching in fiscal 26 that either did launch in 26 or will be launching in 27. In custom food and beverage packaging, we're launching assortments that restaurants truly value for conveying their brands like tray liners, paper bags, snack trays, paper cups. Our pricing, like all of our products, is competitive at any order size. And most of these packaging products are sustainable by design. For example, home compostable paper products replacing unbranded plastic takeout containers. In corrugated boxes, our production lines are setting new industry standards for time to customer with zero setup fees and very low minimums. Our vision is custom-branded boxes in the quantities that every business needs, no matter how low, no matter how high, at unit prices previously reserved for generic, unprinted craft cartons. We also rapidly are expanding our products for events like trade shows, markets, and fairs, and building supply chain and decoration capabilities to vastly expand our customized apparel range. We'll show you more examples in the Vistaprint presentation and in the manufacturing panel. We can discuss this in more detail. Simpress's market leadership and unique capabilities are opening up the options we have to reach more customers through new channels via partnerships, and the clearest validation of this opportunity is our partnership with Canva, which we announced in July. Canva reaches hundreds of millions of monthly active users who create billions of visual assets. And we've launched an initial suite of SimPress-fulfilled products across North America, Europe, and Brazil. And the number of products is growing each month. For Canva, we provide a trusted, highly capable fulfillment partner with unmatched quality and geographic coverage. For SimPress, this opens up a new scalable way to serve customers without acquisition costs. And as I mentioned in my annual letter, part of our design enablement strategic objective is to be able to turn beautiful designs into custom physical products, regardless of the source of the design. So this partnership is a clear example of doing exactly that. Over our history, we've deployed capital to acquisitions and we've certainly made mistakes, but we've also had some very strong successes. One large group of successes is our upload and print reporting segment, where the cumulative cash flows since acquisition have far surpassed the $730 million we originally invested. Today, our acquisition playbook is based on what we've learned from prior experience, both successes and failures. We look for highly rational tuck-in acquisitions that we expect to meet a threshold of 20% or better base case returns and which strengthen our capabilities in elevated products, add focused production hubs, and or integrate directly into our fulfillment networks to better serve high-value customers. Our most recent acquisitions and equity investments have been Mixum, Truall, Print Alliance, and SaxoPrint, and these have directly supported our strategy. For example, Mixum brings a new channel of customers for elevated products, specifically books, catalogs, and magazines. It will bring volume to our focused production hubs. Truall is a leader in Spain for high-end online printing. Print Alliance expands our Austrian capabilities for higher value customers, and Saxo Print brings low-cost producer capabilities for flyers, booklets, and similar products. Sean's going to spend some more time on our recent acquisitions in his presentation, including some examples of the financial results for these tuck-ins. Now, let's move from growth drivers to efficiency drivers. Our manufacturing and supply chain capabilities remain an unmatched competitive asset, and we are strengthening that advantage to reduce our cost of goods while improving our quality and speed. We have an engineering-first manufacturing culture that excels at lean production. We operate over 3 million square feet of production space via our mass customization platform, which Martin's going to discuss. We're now optimizing production across different businesses and different facilities. The capital equipment and the engineering initiatives in which we've been investing over the past several years will drive significant profit and cash flow growth in future years. We're already seeing financial benefits in some areas. In others, the startup costs, which we are incurring, are currently suppressing profits. Those benefits, however, will be a material part of achieving our fiscal 28 financial targets as the benefits come online at the end of FY27 and those startup costs roll off in fiscal 28. As I mentioned, Martin will cover MCP in a moment, and Florian and the manufacturing panel will share some more about our capabilities and what that is unlocking across Sympress. Behind our manufacturing footprint and our customer-facing technologies sit the software backbone of Sympress, our mass customization platform. Building out the platform we have has required a lot of investment, but today that platform is more mature. It's increasingly battle-tested, and we are starting to generate substantial operational leverage from it. Many of our businesses have migrated or are in the process of migrating their technology to our mass customization platform microservices. That's for order routing, product catalog configuration, and automated pre-press. And by doing so, we're eliminating duplicative software investments and reducing third-party software licensing. This continues with a next wave of standardization and customer experience platforms, and Martin's going to provide examples of that as well in his presentation. Another lever for efficiency is deeper operational collaboration and capabilities sharing. Internally, for two years, we've been shifting towards a more balanced place on the scale between decentralization and centralization. Now, we are maintaining autonomy for teams where that is important for driving speed and innovation. On the other hand, in areas where the benefits of scale and efficiencies are clear and strong, for example, sharing technology infrastructure or supply chain management, our individual businesses are collaborating more deeply than they have done in the past. And a great example of this is the tighter collaboration that's happening between Vistaprint, National Pen, and Build Design, where the teams are working closer to share knowledge and capabilities in multiple areas across tech, product launch processes, cross-impress fulfillment, procurement, high-value customer service, and advertising optimization. Once again, you'll hear more about this in other sessions, and we also saw that we have a pre-submitted question on this topic, so Florian, Brian, and I will discuss this further during the Q&A session. Note that this type of increased collaboration is also happening in our upload and print reporting segments, but for the sake of time today, we're going to focus the discussion on what we're doing with the businesses that you see on this slide. Now, AI, besides having great opportunities on the front end, is also a central catalyst for operational velocity and efficiency. And we're cultivating a culture of active AI experimentation to simplify workflows, to reduce operational friction, to speed up execution, and importantly, to reduce costs. All of these AI implementations are seeking to generate direct, measurable value, both for the customer and for the SimPress bottom line. All across SimPress, teams are embracing process simplification and AI in ways that make us stronger. And we have a panel discussion again on this topic where we'll discuss many more examples and how they also support our fiscal 28 financial targets. So in closing, what you're going to hear today is that we have entered fiscal 27 with strong operational momentum, expanding competitive moats, and a clear line of sight to sustained earnings and cash flow growth. Throughout the presentations and discussions today, you'll hear three consistent themes. Our strategy and our investments are growing customer wallet share and improving skill advantages. We have significant and clear actionable levers across both top-line growth and bottom-line cost efficiencies. These levers directly support our financial plans for fiscal 27 and fiscal 28, establishing a firm foundation for ongoing growth beyond those two years in order to maximize our long-term intrinsic value per share. So before I pass it over to Martin, we're going to share a video with you, which really brings to life and brings you inside our manufacturing operations to better understand the scale, the technology, and the human expertise that powers tens of millions of customer deliveries every year. And in a world where AI will revolutionize so many aspects of all of our lives, including providing incredible productivity and gains to manufacturing, we are excited that Simpress's core competitive differentiation is the mass customization of beautifully tangible physical products. These unrivaled capabilities are the heart of Simpress. They always have been, and they enable our mission to help businesses build brands, stand out, and grow via customized physical marketing products and branded merchandising. So here's the video to illustrate that point.

For the last 30 years, Simpris has been building a leading global manufacturing network built to turn individual ideas into custom physical products at scale. Our many production facilities, businesses, and capabilities operate as one interconnected production ecosystem to best serve customers. That network spans nearly 280,000 square meters or 3 million square feet of production space and handles over 30 million orders for 15 plus million customers every year. The scale is global, but every single order is personal. The journey starts before production even begins. Our mass customization platform enables automated pre-press and connected workflows that make sure each customer order arrives production-ready, routed to the production line that can most efficiently produce it at top quality and on time. Across more than 23,000 products and millions of possible variants, this network handles it all, excelling at both established categories like signage and small format print to elevated products like packaging, large format, logo apparel, merch, books, and catalogs. World-class quality assurance systems ensure that every order is right. Calibration, color management, process controls, automated and human inspection, software-based verification, and highly focused production lines all turn enormous variety into repeatable quality. One beautiful, customized product at a time. These capabilities are constantly evolving, just like our customers' needs. Over the past 20 years, Simpris has invested more than $1 billion in capital expenditures, modernizing equipment, expanding capacity, and building new ways to serve changing customer demand. And behind all of it are real people. Thousands of team members across 25 countries, including operators, engineers, technicians, product managers, quality experts, procurement and logistics specialists, and more, all focused on getting every order right. From production routing, planning and consolidation, to packing, carrier selection, handoff, and delivery management, Simpris orchestrates the entire path from design to door, complete with API-based delivery prediction and performance reporting. Focused production hubs and cross-Simpris fulfillment mean every order finds the right facility, in the right geography, with the right capabilities, enabling speed and continually improving on-time delivery to customers. Across Simpris, our mass customization platform, vast product range, global production network, and specialist talent form one interconnected ecosystem, helping millions of customers build brands, stand out, and grow via high-quality, affordable, custom physical products delivered quickly and at scale.

It's an awesome video that is a good hype-up. Hello, everyone. I'm Marta Winschveig, and I'm the CTO here at Sympress, and I got the honor to operate our mass customization platform. And as Robert outlined in our strategy in action, focused on both growth and efficiency. And in my session, I will highlight how our operations and technology strategy supports those goals. at the core of our technology strategy is our mass customization platform or mcp it connects our businesses production facilities and third-party suppliers to share technology to understand why that actually matters consider the complexity of a customized product right a customized if a customer chooses his shirt then selects different attributes like the size the quantity and the decoration techniques like do i want it printed or embroidered and those choices then affect the pricing and how we prepare the artwork for the product and which facility can actually produce that order. And now extend that across every product from business cards to packaging to apparel. That complexity runs through every capability you see here from our site merchandising to our product catalog, manufacturing and fulfillment. And every business in our entire industry has to manage this and with mcp simpress can invest strategically in solving these challenges and leveraging those capabilities across the across our company that means our businesses can introduce products faster and benefit from capabilities you would otherwise have to develop separately it also helps us reduce our opex with duplicated technology removal or the use of our production network more efficiently really build once shared across Sympress. And now with that, I'd like to give some examples of how that translates in business results. MCP operates at a significant scale with around 3 billion of our Sympress revenue flowing through this platform. Our businesses serve unique customers and markets, but they share the technology and production capabilities, and that helps them to launch products faster, access the lowest cost of production, and deliver consistent products every time across global markets. It also creates opportunities to bring new partners into our network. One example we're particularly excited about is our strategic partnership with Conva that Robert just mentioned. Conva chose us to give your best service customers and through MCP we enabled the integration between Conva and Simpress just in a matter of weeks and we could move that quick because we've already had the underlying tech capabilities in place. That's where the scale of MCP becomes a competitive advantage. We can use those shared capabilities and leverage our global scale and manufacturing supply chain capabilities. At around 80 million of production, around 80 million of production measured as the cost of goods now flow between our Simpress businesses. That's what the chart here on the left shows. And we've started to increase our focus on using this established mcp capability to get more value from our combined production network the benefit comes from both lowering production costs and new growth opportunities and across cympros across cympress these efforts have generated a cumulative total of more than 50 million in incremental variable gross profits since our fiscal year 2024 when we really started pushing on this that's the financial benefit here highlighted here on the right so by using this production capabilities we already have we can reduce the need for new capital investment or lower our production cost or expand our offerings faster these are concrete benefits from connecting our businesses to our mcp and you'll hear more some you'll hear some more powerful examples about cross-simpress fulfillment in our manufacturing roundtable later today we know that a broader product selection is very good for our customers and it drives up sales too but in customization adding product means handling all of these variations that I just mentioned material sizes materials sizes decoration methods and production requirements so what we've done through MCP we've built a shared digital model of this world and all of its complexities it captures the product details and manufacturing rules that our businesses need to sell and produce these products. The digital model gives our AI a powerful foundation and our AI agents and our agents can interpret supplier information and map it into our product catalog standards, automating work that previously required people to do it all manually. Once a product is in our shared catalog, businesses across the network can use that information to bring it to market faster. The combination of our industry knowledge, structured data, and AI lets us expand our catalog at a speed and scale we couldn't even achieve manually. The acceleration is already visible. Over the last 12 months, every monthly new products onboarded to our third parties has tripled from around 800 products to 2,400 products, and the new products created by our businesses have more than doubled from 600 to 1400 a month. At National Pen, the automated the product setup process has gone from two and a half months to minutes with the setup cost falling from $300 to $6 per product. Exciting. With the process we made in modernizing our technology over the years, we have the opportunity to share more of these capabilities across Simpress and reduce the cost of building and maintaining similar systems separately. A good example is our Simpress Experience Platform, where we basically taken the customer experience technology developed at Vistaprint and made it available as a shared platform, obviously connected still to MCP. That means other businesses can benefit from the capabilities we've already invested in on the Vistaprint side, including design tools, personalization, marketing optimization, while keeping their own branding and customer experience. As we improve those shared capabilities, the businesses using the platform then also benefit from the same investment that helps us deliver better features, faster and reduce duplicated development and ongoing operational costs. We've already migrated NationalPan's first test market to the Simpress Experience platform, which additional markets and brands expected to follow in the upcoming quarters. This is just another example of getting more value from our existing technology investment, extending proving capabilities across more of Simpress. A nice other practical application of AI is using customer data to identify who's at risk of leaving an actor to retain them. Vistaprint did a test across three European markets and showed encouraging results with an estimated annualized benefit of around 700,000 in additional variable growth profit. And what excites me is where we can actually take this right as more businesses not only adopt mcp but now also the simple experience platform we have an opportunity to bring more of this consistent data into these models improving our understanding of our customers and apply what we learn more broadly across simpress and across more and more use cases and like mentioned can't say it enough our manufacturing and supply chain network is a major competitive strength. MCP connects that network so our business can use its capabilities immediately at scale. Every customized order brings its own artwork and production requirements. We need to turn what the customer creates in something a facility can reliably manufacture. And that's what you see here, right? We analyze the file, we check and improve the artwork, combining AI with human expert review and preparing the products for production. MCP then connects that order to a facility with the right capabilities, taking into account geography, equipment. And that's our global infrastructure handled more than 30 million orders, over 50 million customers annually. The value is in managing all that individual complexity through the shared technology. And as we improve these shared capabilities, we can apply those improvements across the network everywhere immediately. and if you followed our investor data over the years thank you by the way for that you've seen how we've applied ai to artwork processing aka how do you put this image on a physical product at volume how do you do that at volume and automating that work was essential to keep the cost manageable we started with traditional machine learning models and progressed over time in deep learning and now use today's generated AI models including LLMs and multi-model image generation models. We've been putting AI to work in our operation for many years and that expertise actually matters. Our teams have learned how to apply these models to the complexity of customized products and integrate them into real production workflows. Our artwork capabilities will continue to improve. But what's changing now is how broadly we can apply AI across Simpress. Robert mentioned that too. You've already seen examples in our product catalog expansion or customer retention as I just mentioned. But we're also applying and developing AI capabilities in our customer service. How do we do software development, product search, pricing, promotion management. And what excites me is the combination years of our practical AI experience, the data and the capabilities in our now more shared platforms and the tools that more teams can now use. That gives us more opportunities to improve how we work and how we serve our customers. The track through all of these examples is that we're getting more value from the capabilities we've already built by sharing them across Simpress. MCP and the Simpress Experience platform gives us a common foundation. AI helps us to do more with it, increasing engineering capacity, accelerating product launches, making customer interactions more relevant and lowering the cost to maintain and invest in these capabilities. You've seen some concrete results today and our opportunity now is to extend those benefits across more of our businesses and more of our operations, supporting growth while lowering the cost of delivering it.

We'll explore that further also today in our AI roundtable with leaders putting those capabilities actually to work and with that thank you i'd like to hand it over to florian good morning everyone and thank you martin i'm florian the ceo of vistaprint over the past year vistaprint delivered consistent revenue and ebitda growth and is on track to support simple says fy28 target of at least 615 million dollars in adjusted ebitda and today i'll show you what powers our current momentum and where we're focusing to drive profitable growth. In my presentation today, I'm going to cover three things, our ambition, how we're winning with high-value customers, and our five priorities for sustained profitable growth in the future. At VestaPrint, our ambition is to be the leading destination for small businesses' custom print needs from design to print. And to us, that means much more than just fulfilling an order. We want to be their number one print partner for every print need, occasion, and stage of their growth. And we achieve this with four things that set Vistaprint apart. One, we're truly a one-stop shop. Our breadth of assortment allows us to meet the diverse needs of all types of small business customers. Two, we enable them to design in any way that works best for them. Whether they prefer designing using an AI tool or start with one of our templates, work with a human designer, they can do it all with ease on Vistaprint. Three, we offer the best assurance and advice, no matter where customers are in their journey. And four, we invest in and harness the power of the Simpress manufacturing and supply chain network that Robert described earlier. So let's now talk about how we're winning with high value customers and to see what working with Vistaprint looks like in practice, let's hear directly from the businesses we serve.

I actually need to prep my booth, and there's no better place to start for all the printed material than Vistaprint.

Through the design process, it was so easy to pick, choose.

Colors are so bright. Wrinkle-resistant tablecloth, which is literally a game-changer. Look at this cute mini tote, this baseball hat, these t-shirts. We have the black one. Here is the white one. Here's everything we ordered from Vistaprint so that we could stick out in a very big crowd.

I'm going to get like emotional.

I love that reaction at the end from Madeline. That's what happens when we deliver across a customer brand presence from tablecloths and totes to custom apparel. But obviously winning a customer's first order is just the start. Our goal is transforming first-time buyers into high-value, long-term relationships. Look at Sour Milk, for example, a New York start-up. When they joined us in 2025, at the time with just two employees, they needed a professional brand fast. And as they expanded into pop-ups and major events, we scaled right alongside them, supplying banners, table runners, stickers, and apparel. And Sour Milk is not an isolated success story. They represent our primary growth engine, customers generating at least $650 U.S. dollars in any cost profit, or VGP. We're tracking approximately the same $650 U.S. dollar threshold as last year, representing our top 2%. In fiscal 26, this group generated 32% of our total VGP, compounding at 17% annually. And that growth is happening across both volume and value. VGP per customer grew at a 3% CAGR, while the number of customers in the segment grew at a 12% CAGR. And just like Sour Milk, these customers rely on us far beyond business cards. categories like signage, apparel, and promotional products driving the relationship. These $650 plus VGP customers represent what we can achieve with our value proposition and the differentiators that make Vistaprint unique. They buy from twice as many product categories. They order almost six times more per year, and they spend 3.4 times as much when they do. So net, they buy more broadly, more often, and in larger orders. A question that I often get is, are these $650 plus customers all new customers? And the answer is that the growth is coming from both new and repeat. In other words, we're attracting new high-value relationships while developing those we already have, and that gives us two opportunities to build on, not just one. let's take a deeper look at new customer acquisition higher value customers enter across a far broader set of categories promotional products apparel signage and marketing materials are their primary entry points and so we're not dependent on business cards to attract high value relationships let me bring this all together cumulative value per customer is compounding because our high value customer engine is working. Our $650 plus VGP customers drive this expansion across every dimension, buying broader, ordering more frequently, and spending more per order. And importantly, the majority of the segment comes from repeat customers with whom we're expanding our share of wallet over time. Let's now turn to our key focus areas to accelerate profitable growth. We're executing on five priorities, and I'll dive into each one in turn, starting with the one on the left, high-value customer growth. There are three parts to this. Expanding our assortment of elevated products, making it easier for customers to discover, design, and buy, and providing tailored assurance and advice. As Robert already mentioned, elevated products are key to capturing a greater share of our customer spend. Custom categories like packaging, labels, apparel, promotional products, and signage are driving our year-over-year VGP growth, particularly among high-value customers. And this directly proves that our targeted investments are paying off. In FY26 alone, we launched more than 5,100 new products, focusing heavily on elevated ones. and process automation and the Simpris network helped make that scale possible. But adding products is only part of the answer. Customers also need to discover, design, and buy them easily. And that's why we're making ongoing optimizations to improve the experience for elevated product purchases. We're making it easier to apply designs across our product range. We're improving sampling so customers can see and feel complex products before making larger purchases. were also making it easier for customers to bring designs created elsewhere into Vistaprint with a special focus on streamlining the path from AI-driven design to print or personalizing the customer journey through better recommendations and conversational shopping experiences. And in fact, in FY26, the share of VGP generated through personalized placements increased 21% year-over-year. taken together these investments make our broad offering easier to use and they enable the one stop shop that we want to be for all of our customers while we deliver great service to every customer we also know that high value customers often have more complex needs that benefit from dedicated human support and that's where our high value account teams come in Using real-time data, we intervene proactively the moment a customer gets stuck or wants help, guiding complex orders from artwork through to delivery. And that isn't just great service. It also makes sense commercially. In fact, in FY27, these specialized service teams are projected to generate $8 million in incremental VGP. And the proof is not just the dollars. The proof is also in the feedback that we get. Hundreds of five-star Trustpilot reviews mention our team members by name. That's how we are in trust and build lifelong customers. Moving on to our second priority. That is manufacturing, expanding our capabilities for growth while driving efficiency. Starting with the growth side, we continue to expand our assortment of elevated products. And in FY26, launched in-house production for corrugated boxes and luxury bags in Europe, and we're now establishing a dedicated food packaging hub in North America. And to maximize our returns on capital, we leverage cross-simples fulfillment. That happens in two ways. First, we broaden our catalog without spending extra capex by sourcing products from sister companies with focused production hubs. So that could be booklets from Pixar printing, or it could be signage from Build-A-Sign. Then second, we fill our own focus production hubs, like the European luxury bags and corrugated box lines, by fulfilling orders for sister brands across the group. CrossSimple's fulfillment, therefore, gives us a massive structural advantage, driving higher margins, higher asset utilization, and better capital efficiency. Beyond Simpress Fulfillment, continuous cost discipline inside our own facilities is an important part of our manufacturing agenda. In FY26 alone, that operational discipline delivered about $8 million in cost savings. It was driven, for example, by packaging and carrier optimization, scrap reduction, higher labor productivity, and leveraging Simpress procurement for equipment and material purchases. I'm now going to turn to our third priority, marketing ROI. And that's about maximizing the efficiency of every dollar we deploy across the entire funnel. And I'm going to start at the top of the funnel. Vistaprint starts from a position of strong brand recognition. We're the number one in prompted print awareness among small businesses in the US, France, and the UK. And while that brand awareness gets us in the door, sustained growth does require building deep brand relevance. And that's the role of our refreshed brand positioning. Print Your Possible is our new creative platform. And what it does is it taps into that joy that our customers feel when they turn their ideas into something tangible. From a custom t-shirt to a storefront sign to premium packaging and marketing materials. But I suggest you see for yourself. Let's take a moment to watch our brand hero film.

What if you could print every idea to life?

At vistaprint.com Yeah, as you can see, we don't just print our customers' logos. We print their purpose and their passion and really want to see them for much more than just business cards. But, you know, across the entire physical marketing, from signage to apparel and branded merchandise. Let's move further down the funnel to performance media. A lot going on there. We use rigorous incrementality testing and, in some countries, order-level LTV prediction to channel capital into high-return areas. And in search of strong returns, over 25% of our performance spend is now in social media and video formats. At the same time, we're also an early mover in AI advertising. We joined OpenAI's advertising pilot at launch in February, quickly becoming a top 10 global advertiser by spend. And our full product catalog is connected, and we're executing a U.S. conversion lift study to measure incrementality. And that is in addition to our existing presence in Google AI mode and Microsoft Copilot. But frankly, the objective across every channel is very simple, to maximize cohort LTV by acquiring higher value customers up front and expanding our relationships with existing ones. Our fourth priority is AI-enabled simplification and automation. We are using AI across the entire organization to deliver outcomes faster and more efficiently. Every logo that you see on this chart was designed directly by the team leading that project, and I couldn't be prouder of the grassroots ownership our people are showing. This is a broad-based transformation touching every function across Vistaprint, from software engineering and analytics to marketing, creative, customer care, all the way through to finance, HR, and manufacturing. And these aren't just theoretical pilots. Behind every achievement on this chart, there is a practical change to how we operate, delivering real benefits and execution velocity, cost efficiency, and growth. And that brings me to our fifth priority, to build a resilient, future-ready organization. We want to build the most entrepreneurial culture, one where people take ownership and innovate on behalf of our customers. We've in fact always believed that innovation must be part of running the business, not separated from it. And our Vista behaviors provide that foundation. One year after launch, we've seen high engagement scores in adoption, application, and awareness. And the VISTA behaviors aren't just something that we talk about. They're woven into how we work every day, from the questions that we ask in interviews, to how we evaluate performance, share feedback, and celebrate success. And in light of the massive opportunities ahead on our AI journey, we are building capabilities across three pillars. AI skills, leadership development, and future-ready competencies. First, AI skills. We're driving active AI engagement and upskilling across the entire organization. For example, we launched an AI development goal requiring every team member to build automation directly supporting the role. Our teams have completed over 5,000 AI courses, and more than 800 employees have engaged in hands-on building through our workshops. And today, our peer learning community spans over 1,500 team members sharing daily use cases to transform how we work. Second is leadership development. In FR26, close to 90% of our managers completed foundational leadership training focused on instilling an entrepreneurial culture. And third, future-ready competencies. In FY27, we're launching targeted training and nine essential skills, including systems thinking and resilience to keep our workforce agile. And to be clear, the goal here isn't training for the sake of training. It's building teams equipped with the capabilities to leverage technology, move faster, and deliver bottom line results. So let me bring it all together. We have a clear strategy, a high-value customer growth engine across both new and repeat customers, and an increasingly efficient operating model. And by executing on our five priorities, we're driving durable EBITDA expansion and building a stronger, more profitable Vistaprint. Thank you all for your time today. And with that, I'll hand it over to Sean.

Great. Thank you very much, Florian. Appreciate it. And good morning, everyone. It's great to have you all here. I'm going to finish before we go into the panel discussions with a financial review session. And in this next roughly 30 minutes or so, I'm going to largely focus on the path that's ahead of us for the next two years to deliver on the outlook that we've provided. We think it's an exciting one. It involves substantial profit and cash flow growth. And it's a path that, as you'll hear, we remain very much confident in, and it has the management team's full focus. I'm also going to touch on our capital allocation priorities, as I normally would. This year, I'm going to take a specific double-click on tuck-in M&A, just given we've had some more activity there recently and some more questions from investors of kind of the path forward there. So I'll spend a little bit more time there than I have in the past. first uh as robert referenced earlier too i just want to reiterate our commitment to our uppermost financial objective and that's to maximize our intrinsic value per share the um as i go through the the the slides that follow here we're going to talk about other metrics and that includes our multi-year adjusted evita targets we've shared those targets again as robert said because we think it's helpful to have a public very measurable milestone on the path to our significantly higher per share free cash flow that holds us accountable. And hopefully you agree, gives you a concrete way to track our progress. And we would never pursue the targets that we're talking about in a way that sacrifices our ultimate objective. As you can see from the charts here on this slide, over time, we've had both substantially increased free cash flow, and we've also reduced our total shares outstanding by nearly 50% since the time of our IPO. Based on the plans that we're going going to review today, if you just do the math, we expect our free cash flow per share to be roughly $11 per diluted share at the end of fiscal 28. And at least in my view, I think that that's clearly not reflected in our equity value today. So turning to the next slide, one year ago at our investor day, for the first time, we outlined a three-year plan to demonstrate substantial profitability and cash flow growth. And the reason we did that is we felt like it was important for us to make that clear in terms of the financial progress we would make following a period of strong operational progress and also investments to enable the financial progress that we had expected. The first year of that plan was fiscal 2026. I'll briefly cover the highlights of last year in a minute, but I think the headline there is that our growth in adjusted EBITDA was ahead of what we guided to one year ago. At the end of July, for the first time, we introduced our specific fiscal 27 guidance, which is for at least 7% reported revenue growth and 3% organic constant currency revenue growth. We expect significant growth in our adjusted EBITDA to at least $520 million and free cash flow to approximately $200 million. And these results, importantly, will start to more meaningfully reduce our net leverage, as you'll see in a later slide. I'm going to walk through the drivers of how we get there so that all this becomes more tangible. for you. Moving then to fiscal 28, we expect the investments that we've made and also the cost savings initiatives that we're executing on to be approaching their full run rate. And so we expect 4% to 6% organic constant currency growth, at least $615 million in adjusted EBITDA. That I should note is up from the at least $600 million target that we established at last year's Investor Day. And then we continue to expect adjusted EBITDA to convert to adjusted free cash flow at approximately 45%. So that's roughly $277 million of adjusted free cash flow as our profitability significantly increases, but also as our heavier period of CapEx starts to moderate. That will allow for another meaningful reduction of our net leverage to below 2.0 times our trailing 12 months EBITDA. And of course, all that's subject to capital allocation choices. One of the themes that you'll hear me repeat a few times in this session is that the profit and the cash flow growth builds as we move through the next two years. And so that ramp really starts in Q2 of this year as these things start to take hold. Also, M&A starts to be a more material contributor. And we expect that to continue really for the next seven quarters. we are we're confident that we'll deliver on our plans and on this next slide here i'm just going to outline four reasons why that's the case first simpress has delivered profitable growth for over two decades we've constructed these expectations to be achievable and that's why we use this at least framework guys can you go to the next slide yeah thank you um just of note here we as i said before, we increased our fiscal 28 target from the at least $600 million that we gave last year to the at least $615 million that we are reiterating today. The second one is that delivering against these targets, it is the top company priority, and we really used it as an organizing framework for our strategic initiatives and our operating plans. You would see that in our regular cadence of operating rhythms that we have. You would see it in our internal comms. We have an ambitious agenda, but with a clear governance. And that's also something that we review regularly with our board to maintain rigorous oversight on our capital deployment of our strategic initiatives and also all the efficiency projects that we have as well. The third thing is that our leaders are compensated primarily through performance-based equity, and those performance criterion are tied directly to these plans, and our internal performance targets are actually set higher than what we've committed to externally. And then lastly, we believe we have a clear line of sight to reaching these goals, and a lot of that comes from the fact that the heavy lifting on foundational investments is largely behind us. And now our focus is fully on the required execution. The time, the effort, and the capital, which has been substantial, that we've allocated to these growth and cost savings initiatives, it is really meaningful. And as you'll see in a moment, the vast majority, at least in my view, from here, is really an execution story. So starting with a quick overview of fiscal 2026, and I'll be relatively brief here. we delivered 10% reported revenue growth and 4% organic constant currency growth. That was above the expectation that we had set for the year. Our adjusted EBITDA was $458 million, also higher than the guidance we provided at last year's Investor Day. Our adjusted free cash flow was $122 million. That was weighed down somewhat by higher levels of CapEx, that CapEx directly supporting the strategic and financial targets that we have. Also slightly less favorable working capital timing than we had expected. And then we ended the year on track with our leverage guidance, which was 2.9 times trailing 12 months EBITDA as defined by our credit agreement. So I think the summary there, year one, we did what we said we would do. In terms of proof points, as you've heard in some of the earlier presentations, we've made meaningful progress with elevated product and high value customer growth. One of the things that I think doesn't show up in the numbers is that there was significant foundational progress that was completed in this last year that enables future growth and cost savings over the next two years. That's really important. We also closed four token acquisitions that I'll dive into more in more detail later, and those will contribute meaningfully to our plans. And then the higher contribution from M&A is why we increased our fiscal 28 adjusted EBITDA target that I earlier mentioned. So now let's turn to fiscal 27, the year that we're now in. And you can see here a bridge of how we expect to accomplish our fiscal 27 guidance. The bridges that I'm going to go through now is a new level of detail and hopefully you'll find to be helpful. The bridge here starts with our fiscal 26 actual adjusted EBITDA, that's the 458 million, and walks over to our guidance of at least $520 million for fiscal 27. Walking from left to right here, the first bridge item is the 18 to 21 million dollars of adjusted EBITDA growth that we expect from Tuck and M&A. That is a combination of the fact that we have a full year of results from the standalone businesses that we purchased last year, and also the one that we closed at the very beginning of this fiscal year, SaxoPrint, but also the increasing synergies as we advance through the year and integrate these businesses into this Impress network. That number is consistent with the commentary that we gave with our year-end earnings, and I would just say we remain very much on track here. The second bridge item is $5 to $10 million of year-over-year benefit from currency. Those benefits are contracted and therefore also very much remain on track. The third bridge item reflects the increased year-over-year startup cost for our North American production network. And this is enabling substantial future cost savings. You're going to see that in the fiscal 28 bridge. I'll go through next. But it will be a higher investment in fiscal 27 compared to last year. So that's a drag. And then that drag will reverse in fiscal 28. And then next, we expect the in-year impact of our cost savings initiatives to contribute $25 million. The plans for these are in place. There'll be action throughout the year. And so that is the in-year impact. And then the remaining $11 to $19 million is the minimum adjusted EBITDA needed from organic contribution in order to achieve our guidance of at least $520 million. And that results in full-year adjusted EBITDA growth of at least $62 million. As a reminder, because we've used this framework last year as well, this minimum required from organic growth is the minimum. So rather than the specific amount that we expect, that is the minimum that we need to make this bridge work. And really, this construct is what do you have to believe as an investor to believe we can hit these numbers? And hopefully, you believe that that is a very reasonable amount in that last item of the bridge. Importantly, we also expect free cash flow growth to be about 60% based on our guidance of approximately $200 million. And as I said before, that's the combination of two things. One, profitability growing and that dropping through to free cash flow. But our capex levels will remain similar to last year. So that'll still be at an elevated level. As noted, these contributions will ramp through the year. Q1 also carries a higher amount of that plant startup cost year over year. So we expect the weight of these initiatives to really to build from Q2 onward. Let's now do the same thing for fiscal 28. And here again, I'll start with fiscal 27 baseline of the $520 million that I just went through. And then I'll walk that across to our raised fiscal 28 target of at least $615 million. First, we expect the contribution from Tuck and M&A to contribute an additional $10 million in adjusted EBITDA. And the reason for that is that our synergies here will continue to build. And so we'll be at a full run rate for fiscal 28 or almost a full run rate. So that's really driving that growth there year over year. Essentially, these things become organic contribution as we anniversary the acquisitions. But we thought for purposes of the bridge, it was clearest that we keep that separate for this purpose here. And I should also mention that this does not assume that we deploy additional capital to M&A in fiscal 28. Next, the plant startup costs that I talked about in the last slide, tied to our North American Production Network expansion, that weighed on profitability in fiscal 26 and also in fiscal 27, will roll off, and that provides a $10 million uplift in fiscal 28. The largest contributor to adjusted EBITDA growth here comes from our cost savings initiatives, where we unlock the remaining $50 million in benefit. it. Across the three years, this delivers at the high end of the $70 million to $80 million range for cost savings that we outlined at last year's Investor Day, so we feel good about the execution against that. And a lot of those cost savings initiatives will have been executed as we exit fiscal 27, but the full-year impact will be impacting fiscal 28. And then finally, we need at least $25 million of organic growth contribution, and that's supported by the initiatives that you heard about today, including our elevated product growth, leveraging recent CapEx investments, including the ones that we're doing this year, wallet share gains with high-value customers, growth in cross-impress fulfillment, and then also growth in new channels like the Canva partnership. Together, that brings us to our fiscal 28 target of at least $615 million in adjusted EBITDA. And in Robert's opening session, he outlined our growth and efficiency initiative. So I'm going to turn back to those now to demonstrate how those support these numbers. So in Robert's, again, same framework that Robert used here, I'm not going to go back through the kind of strategy component of this. I just want to connect it to the numbers that we just went through. The recent investments that we've made behind these four drivers here position, as we believe, to deliver the organic growth for fiscal 27 and fiscal 28 that is required by those targets. And again, it's an at-least framework. And so we believe we can do more than that. Just briefly, those drivers that Robert went through are wallet share with our highest value customers, which as you saw in the Vistaprint session, is really the primary engine of our profitability growth there. elevated products where we're shifting mix into higher value categories and leveraging cross-simpressed fulfillment to do so. Our Vistaprint packaging and labels category I think is a great example, grew 33% in fiscal 26, starting to get to a larger scale. New channels like the Canva partnership and also our upload and print expansion into the U.S., which is enabling growth in Vistaprint as it gets access to products that we didn't previously produce in north america and so really there we're getting access to the manufacturing innovation and know-how that pixar printing has established for years in europe paolo will talk a little bit about that in one of our panel discussions and then finally tuck in m&a which i'm going to come back to separately if you take these together these are what support the organic contribution in our bridges and so now let me turn to the efficiency side of things which is the larger driver over the next two years. And on efficiency, it's really a story of timing and phasing. FY26, I would say, was primarily a foundational year. There was modest financial impact, but it was really a foundational year to enable the next two years. And now the contribution starts to build as we really, as we get into Q2 here of this fiscal year and for the next seven quarters. There are four main initiatives or categories of initiatives. Manufacturing and supply chain excellence is a significant contributor, and that comes through our cost of goods sold savings. There's a few things that drive that as we expand our North American network, but also as we shift volume to focus production hubs and also insource from third parties. I think one of the markers of that, and Martin referenced this in his slides, we've had a 50% increase in the volume flowing over cross-impress fulfillment last year, which is like kind of the enabler for the start of a lot of those cost savings. And then the other three you see here, they all reduce OPEX. So that is standardizing technology, leveraging our mass customization platform. It is increased collaboration across Vistaprint, National Pen, and Build-A-Sign, and also AI-driven simplification, which we'll cover in a later panel that I'll moderate. And together, those make up the majority of the total savings. And again, those three on the OPEC side. So these latter directly to our targets. We had $3 million of benefit in fiscal 26 from some actions that we had taken towards the end of the year. And then we have in total $25 million of benefit incremental savings in the fiscal 27 bridge, and another $50 million in fiscal 28. As we execute on these plans, just turning to how this impacts our balance sheet, we will have further strengthening of our balance sheet, but also this will provide more capital allocation flexibility as well. If you look at the chart here on the left, our expanding EBITDA and the strong cash flow generation that we expect will reduce our net leverage from 2.9 times at the end of fiscal 26, to approximately 2.5 times, exiting fiscal 27. And then we have the opportunity to be below 2.0 times, exiting fiscal 28. On the right is our debt maturity profile, and that's in excellent shape. I just want to touch on that briefly. We did refinance our term loan B back in May. And so our high yield notes and our term loan B both mature in fiscal 2033. They happen to be in different calendar years, but the same fiscal year. And then we also ended last year with strong liquidity from a cash and cash equivalents perspective, but also a $250 million rebobber that's undrawn. So strong liquidity and no material maturities until fiscal 2033. So, balance sheet is in good shape. As we increase the balance sheet flexibility that we have, we're also going to unlock meaningful capital allocation optionality. Our primary use of capital, as it has been, will remain funding high ROI organic opportunities, funding innovation, funding capital capability enhancing projects, and we'll continue to do that at discipline hurdle rates. I think both last year and also this year, the way that comes through most notably is in our CapEx investments, which have been higher. Last year at Investor Day in my slides, I went through some very specific examples of the return and payback profile of these types of investments. And if you go back and look at that, the headline is very strong, high probability outcomes. It's kind of at the center of our core competency. We do expect that after higher capex in fiscal 26, and then also in this year, fiscal 27, that that would moderate as we turn to fiscal 28. And so kind of if you think about organic investment overall over these next two years, we would not expect an increase to organic investment levels relative to fiscal 26. But in fiscal 27, there's still a pretty high pace of CapEx investments. On the buyback front, this is something that we look at on an evergreen basis. We'll continue to be disciplined here and importantly, continue to really look to match intensity of repurchases with the gap between our share price and at least our view on intrinsic value. But we'll do all that while we manage to run that leverage commitments. I would say that within those net leverage commitments, we do have room for repurchases while still meeting that guidance. So this will be something we'll consider on an ongoing basis. And I would expect to play a role in our capital allocation to some extent over the next two years. And then there's M&A. And we do continue to not anticipate doing individually material acquisitions, but tucking acquisitions and equity investments have proven to be an attractive use of capital for us. And importantly, not only a good use of capital, but also directly supporting our strategy. And we did have a pickup in activity over the last year here. So given that we thought it was appropriate to cover this topic in a little bit more detail this year, it is a viable avenue of high return capital deployment in the future as well. And so we just want to kind of walk through how we approach this, why it makes sense for us, and also the kind of the return profile of some of our past transactions. So let me start by saying that there's I think there's really three main reasons why we believe this is an interesting opportunity for us. The first is that, and this is fairly obvious just given our role in our market, we have very significant advantages and assets that we can exploit. The businesses that we acquire plug directly into our scale-based advantages. They plug into our shared capabilities. They can operate with our other businesses, leveraging cross-impressed fulfillment, and all that reduces our cost of goods sold while also providing for revenue opportunities across our portfolio through new product introduction. The second one is that we can acquire, we have been able to acquire these businesses at compelling valuations relative to post-synergy cash flows. There's two parts to that one. One is our advantages that we bring, which clearly help the post-synergy cash flows. I think the other one is that we operate in a maturing, highly fragmented market. And we think that that market dynamic will only make these opportunities more prevalent in the years to come, and all of that together allows us to have a target base case IRR for these tuck-ins of 20% or higher. And then lastly, in this area of tuck-in acquisitions, we have a proven track record, and we haven't talked as much about some of these, you know, because they tend to be on the smaller side, but these we do have a proven track record with. And I would say that they have been high probability outcomes. The other thing is that they can leverage our existing management bandwidth, which is important. And so these transactions have at least recently broadly fallen into three buckets. One is opportunities for further vertical integration. The next is where a company has unique manufacturing or product capabilities that can be leveraged into our existing businesses or furthered into our existing businesses, and then suppliers that have material SimPress volume that they fulfill and that we have experience with, and we can further vertically integrate there. The acquired businesses, as I said, plug into the SimPress network and scale advantages, and there are some specific advantages that we bring to these acquisitions, and sometimes they bring to us, no matter what archetype they fall in. And so I just wanted to cover this at a high level here. The first one, again, probably the most obvious is procurement synergies. And this is where we leverage our group scale to lower input costs. And that happens across raw materials, across freight, logistics, capital equipment, consumables. And acquired businesses are able to leverage that scale and our established relationships to reduce costs. This can happen very quickly. And so these are, you know, these are very quantifiable and we can action these very quickly. They're also oftentimes very significant. Our manufacturing and network optimization by routing like-for-like orders to focus production hubs and doing that more and more through cross-impress fulfillment, we can meaningfully lower unit production costs and also fill plant capacity. And that's also allowing us to forego CapEx that we would have otherwise spent. So that's an important one. From a vertical integration perspective, we're able to insource volume that was previously fulfilled by third parties oftentimes. And that allows us to eliminate margin stacking and also gain operating control over that volume. I think the other benefit there is that the more volume that we can put through focused production hubs then has a compounding benefit for our existing businesses as well. From a new products and channels perspective, acquired product capabilities are leveraged across Sympress brands, and that allows us to accelerate the launch of elevated products at lower cost. I'm going to share an example of that in a moment. But also allows us to offer those products that we previously didn't offer, but we can offer them to customers that are already familiar with the services that we provide, which means that we can get to market quicker. We sometimes also get access to new distribution and channels, and we're able to leverage our strong production into those new areas of distribution or new channels. And then the last is just tax optimization as we integrate these businesses into our global corporate and financial structure, not integrate fully operationally, but integrate them into our corporate structure, we're able to optimize cash taxes, and that can contribute to post-Synergy free cash flow generation as well. So on this slide here, you can see the four token acquisitions that we've completed over the last year. As we said, when we disclosed these throughout last year, for all of them, we expect base case IRRs that are 20% or higher. And here on the slide, you can just visually see how each of these also fits with the strategic objectives that Robert reviewed at the outset today. And those are growth with elevated products, design enablement, and manufacturing excellence. Across these four acquisitions that you see here, we deployed $117 million in net cash for the Saxo print acquisition, which is the most recent. That's net of sale leaseback proceeds that we expect to get on their real estate. And that $117 million of invested capital acquired $235 million in trailing revenue and $21 million in trailing EBITDA prior to the synergies. In this fiscal year, we expect these businesses to contribute to growth of approximately $170 million in year-over-year revenue. and as I said in the bridge, $18 to $21 million in adjusted EBITDA with profit and cash flow scaling further as we unlock synergies. I'm going to touch on two of those four and the first one is SaxoPrint. That's the most recent one we've done. It's the largest of the four. It's part of our Print Brothers reporting segment and SaxoPrint directly advances our manufacturing and supply chain objective while also further enabling us to lower the cost to produce high-value elevated products. They bring a state-of-the-art, and you can see parts of this here on the slide, state-of-the-art, almost 260,000-square-foot production facility that's based in Dresden, Germany. And that facility is engineered specifically to be the lowest-cost producer for key elevated products like flyers, booklets, brochures, catalogs, magazines. And so the value creation on this one comes from really from optimizing network scale. We're already shifting volume to SaxoPrint as a dedicated focus production hub for its core product strengths. We are rerouting in the other direction, non-core items from SaxoPrint to other focus production hubs across Simpress. And then we are expanding new product offerings across our broader customer base, and we're doing that through Cross-Semp Press Fulfillment. And then finally, as is the case with all these, we'll optimize procurement, leveraging our combined scale. So for Saxoprint, we're very excited about the synergy opportunities here. We actually expect that the synergy opportunities will be greater than the trailing standalone business results, just to put kind of that impact in perspective. and those will ramp over time, including ramp throughout this year. On Mixum, a little bit of a different profile here. We acquired a 50% controlling stake. This operates within the print group segment. And the core value driver here centers on design enablement and also expanding elevator products. Mixum provides a market-leading e-commerce workflow that simplifies the creation of books, catalogs, and magazines. Very difficult to design historically. They do an amazing job of it. And they use AI-powered layout tools and automated pre-press quality checks in order to do that and make it easy for the customer. On the Synergy front, Mixam had previously relied 100% on third-party outsource fulfillment. We had done a part of that as well. And by insourcing a significant part of that production volume directly into our existing print group facilities, including the new one for Pixar printing in the United States, we're able to immediately capture improved gross profit margins on that existing volume. We'll also expand Mixem's catalog by introducing new physical product options from our broader Sympress network through cross-sympress fulfillment. That work has already started. And then here again, we'll leverage our consolidated purchasing scale to drive procurement cost savings as well. Finally, so those are recent deals we had done. We thought it would be helpful to just go back in time a little bit and take two prior token acquisitions to demonstrate how these have worked. And here I've chosen, the first one I'll go through is in North America. The second one you don't see on the screen yet is in Europe. And each of these falls into a different archetype. So I think these are a pretty good representation of how these have worked for us in our recent past. So this first example here is an acquisition that we did in 2021. It was in the United States. And this allowed us to push more deeply into the packaging category. You hear us talk about that with elevated products, very relevant there, also very relevant with high value customer growth. And customers that are purchasing these products display a higher propensity for repeat purchases, but also a purchase across other categories. So great product for us. And we wanted to push more deeply into it in the United States and broader North American market. The annual revenue has grown from $6 million at the time of the acquisition to $18 million. More than half of that growth is coming through cross-impressed fulfillment, fulfilling for Vistaprint. And this was a net new product for us. And so all that is incremental. Importantly, last year's revenue growth for this business was 33%. And the EBITDA margin was 25%. The free cashflow at the time of the acquisition was just a few hundred thousand dollars. Last year, they did $5 million, if you include the benefit that sits on the Vistaprint side, and our invested capital was $17 million. So while the free cash flow yield was about 30%, when you have a business growing over 30% with EBITDA margins of 25%, there's clearly a lot of room for that to increase further based on that growth and margin profile. So a great example. Example two that you now see on the screen here is a business in Europe. It's a business that we acquired in 2020. Invested capital was $8 million. Different profile, it was an existing supplier that we knew well that we vertically integrated to capture very highly accessible operational synergies, also to avoid future capex in our own facility, which you don't see factored into these numbers. The growth here also was catalyzed by cross-impress fulfillment. Last year, it generated $3 million in free cash flow. That represents just under 40% annual cash flow return on the consideration that we paid. And that brings the cumulative free cash flow to $13 million. That $13 million, when you compare it to our invested capital, it's 60% more than the invested capital. So, you know, very strong returns, return on equity is sort of incalculable. And ultimately, as we evaluate these types of acquisitions, we do that based on the free cash flow yield. We also do that, as I said, for this last one, based on the cumulative free cash flow that we are able, that we have generated relative to invested capital. And if we're able to buy at attractive multiples of profit and free cash flow and post synergies, oftentimes we can cut those multiples in half and we can get benefits through cross-impressed fulfillment, then these can be highly attractive uses of capital that complement our organic growth and investments. So with that, Meredith, I will turn it back to you.

Wonderful. Thank you, Sean. And thank you for that deeper dive on M&A. I know our investors will be excited to have heard that. I do have a housekeeping note for attendees right before we take our quick break. A PDF of the slides that you have seen this morning is now available in the webcast viewer, though you will need to refresh that viewer in order to have those show up. But those are now available now that we're through the entire set of prepared remarks. Now at this point, we're going to take a 10 minute break. So please grab another cup of coffee, stretch your legs, and then definitely make sure that you come back because after the break, we have some wonderful panel discussions and a Q&A session with leaders across our business. Thank you. And welcome back to Studio 54. I mean, SimPress Investor Day. I hope you enjoyed your break or the great energetic music that we were just playing during the break. Okay, let's get started with our first panel discussion on manufacturing and supply chain excellence as a driver of growth and efficiency. This will be hosted by Robert.

Hey, thank you again, Meredith. So as discussed in the main section by myself and several others, our manufacturing supply chain capabilities really are world-class and unmatched. And in this session, I'm really happy to have three of our executives here today to give you a little bit more depth on what we mean by that, including some really specific examples. So I'm here with three people, Brian Kranick, who's CEO of two of our reporting segments, National Pen and Build-A-Sign. Michael Freese, who's a member of the Vistaprint executive team. He also importantly leads Vistaprint Europe. And in terms of this session, something directly relevant to the session is he leads manufacturing for Vistaprint overall. And last but not least, Paolo Rota, who is CEO of our print group reporting segment, and that includes Exaprint, Pixar Printing, PacStyle, TradePrint, and EasyFlyer. So there's a lot of opportunities here that we could talk about, but we've mentioned the importance of elevated products to our strategy because they're so valued by high-value customers. And what I'd like to do is do a little bit of a roundtable here. I may come back to some of you a few times, but me starting with Michael, could you give a couple of maybe two examples of what you've been seeing happening in, maybe we'll start with one example, then I'll go to some others and we'll come back to you, of some elevated product development that we've done.

So hello everybody. So from the Vista Brand side, a strong focus of the last months has been implementing paperbacks capabilities in Europe and now also in North America, meaning on the one hand, standard paperbacks that would be used in food takeaways and other applications, but also now luxury paperbacks, more high-end bags that can be used in many different businesses our value proposition is the value proposition that we're really strong in making small quantities available very fast so that people require less disposition less warehousing less commitment to a product and they can use a product and even a personalized and individual product in in smaller quantities but if they want to use that in their everyday business, they can also repeatedly buy from us on demand as they need them because we offer a strong pricing position. So we bring together our mass customization capabilities with new products and enable new products in the way we've enabled other products. This has been launched first in Europe and is now, as I said, coming to North America.

And I know we don't go into competitive details on how we do this exactly for confidentiality and competitive reasons, but diving into what you said was this is different because of its ability to do low quantity. We're not just coming in and doing standard bags like many, many other people do. Can you describe kind of the tricks of the trade, so to speak? What have our engineers been able to figure out how to do that the industry currently doesn't do?

So one thing is making sure as Martin has explained, that we have a strong data flow so that we can deal with many smaller orders and get them seamlessly to our printing environment in a high quality and adapted to the product. Second step is that we standardize the product in a way that we can produce many different orders of the same kind in a sequence so that we get to reasonable manufacturing structures and that get us the cost that our customers are looking for. Third, we're using digital printing technology so that we can really go to small quantities and leverage that for having the small, but also the medium-sized quantities in good quality. And the third thing is that we use our supply chain network outbound to get the products to our customers quickly so that we can be really fast and go low on quantities compared to other offerings that use different methods, require higher quantities and much longer lead times.

Great. Hey, Paulo, let me switch over to you. And last year at the Investor Day, we talked about the commitment we had made to invest in bringing our upload and print businesses and Pixar printing specifically into the U.S. You've been for more than a year, been your team has been building out that capability. And can you talk a little bit about what we're doing there and what we've learned in Europe, what we're bringing to the U.S. market?

Yes, for sure. I think our factory in Pennsylvania, in Warrendale, is a concrete example of what manufacturing excellence means. For us at the Brink Group, manufacturing excellence is a cornerstone of our competitive advantage. We believe in partnering with our technology vendors that we consider partners more than suppliers, because together with them, we develop new ways of delivering our products, of manufacturing our products for our customers in a way that is faster, more efficient, that allows us to bring more choices. And all the expertise we have developed in Europe in this area, especially in the category of labels and stickers, where it's over a decade of expertise and investment, and also in the area of booklets, magazines, catalogs, so the multi-page product, all of this expertise, we have exported that into the American market. and this is now allowing us to grow more than to grow double digit to grow very fast like you mentioned it's a little bit over a year we launched the plant we have a very strong collaboration with Vistaprint and we are able to offer Vistaprint products with a wider gamut in terms of sizes in terms of finishing in terms of formats in terms of materials and that's because of the advancement we made in technology. We believe in, just to finish there, we believe in continuous improvement, but also coupled with innovation and very often disrupting innovation.

Great. And just one side note, Pat, I think when we were speaking before, I mentioned it, and I certainly think Sean mentioned it, that the acquisition or the investment we made in Mixum has also brought a lot of volume that we're much of that is going through the or will be going through the Pennsylvania facility.

Yeah, absolutely.

Great. Hey, Brian, can I turn it to you for a few examples?

Yeah. So a couple examples that I think are great that really hit on the themes of this roundtable, not only elevated products, but also really how we leverage cross-sympris fulfillment partnerships to, you know, leverage our manufacturing excellence as a driver of growth and efficiency gains. So on the Build-A-Sign side, one great example this year is around Build-A-Sign taking on the fulfillment of canopy tents for Vistaprint in North America at the end of last year. Vista print previously generated about $2 million in annual revenue from the sale of tents, which were previously fulfilled by a third-party fulfiller. And candidly, due to the cost that they were getting from the fulfiller, Vista print was simply just priced too high and wasn't able to really compete within the market. Build-A-Sign was able to take on, take this product in-house and take on the fulfillment and as a result was able to reduce their COGS by over 60%, which really enabled Vistaprint to compete much more effectively in price relative to the market. I'm really proud to say that since that change, Vist is now on a run rate to triple its revenue and quadruple its variable gross profit just by being more competitive in the market. We also have a long list of tent-related NPIs that will be coming out over the next couple of months. So I fully anticipate this trajectory to just increase. And in addition to the cost savings, we also took the opportunity to really enhance the quality of the product as well, which is very well evidenced by the 4.8 out of five stars that you see on Vistaprint right now for that product. on the national pen side i think a great example is around lanyards um uh vista previously had been doing about three million dollars a year um with uh through the sale of lanyards and that once again was fulfilled by a third-party fulfiller um we identified this opportunity um and work jointly to um bring bring fulfillment in-house by national pen uh in the lanyards example we were able to drive a 70% reduction in variable cogs by bringing it in-house, which has enabled Vistaprint to more than double its variable gross profit and grow revenue by over 50%. In addition, we were able to lower the minimum order quantity from 75 with the previous fulfiller all the way to eight. And we were able to reduce the turn times from order to delivery to the customer by an average of three days. So I think two great examples from both businesses of elevated products, as well as the XCF partnerships.

Thanks, Brian. Hey, Michael, I think you have a couple other things. I recently was in the Netherlands, the Dutch factory for Vista Britain saw some exciting things, but I know there's also some exciting things happening in North America. Okay, so I'll let you talk about some of the various other elevated product projects which are going on at Vistaprint.

So speaking about your Venlo experiences first, Robert, we've just launched a corrugated packaging line in Vistaprint Europe, and we are producing different kinds of boxes, RSC boxes, setup boxes, that are not only available to Vistaprint, but to the whole Sympress network in Europe for making the same uplift of the product and quality improvements and speed of delivery improvements that I just spoke about for paperbacks, also available for corrugated packaging. So that's a great step forward. Second thing, also in the environment of packaging, We are going deep on food and beverage packaging with First Step in North America, where on top of the current offering that we already have of cups, paper cups, we also add trays, napkins, and other food and beverage packaging products so that we can, at the end, offer a broad assortment from low quantities, but also up to higher quantities and very fast. delivery. The third thing that we're currently building in North America is just-in-time white assortment apparel, making white assortment of apparel available without the need to warehouse the products, but we cooperate closely with partners who warehouse the products, who make them available to us on demand. We then personalize and ship to our customers within days so that is a very broad assortment that is fast turnaround time, that's low capital utilization so that overall is a great business model for us and for our customers.

One thing, this probably applies to the examples that Paolo and Brian mentioned, but listening to you talk, it links back to when I said in the beginning of my presentation, we are in an evolving market. And two of the products you just mentioned, I think, are addressing some of the evolution that is happening in the greater market. So food and beverage packaging, we're in a world where takeout delivery is more and more popular. So the Uber Eats, the door dashes of the world. And if you're a small business restaurant owner, you really want to be able to not be known as an Uber Eats brand. You want to be known as your restaurant. And food packaging provides a great opportunity to do that. And then when I think of the corrugated packaging products, which I just recently saw, and we already do those in North America, but if you're a, let's say, an Etsy or a Shopify e-commerce supplier, again, you need to really build your brand through your packaging, and that directly addresses it. So it's an example of the market does change over time, and I'm happy to see some of the movement we've been able to do to address those small business needs all around building their brand. I'm going to switch over to cost efficiencies and network optimization. You mentioned a few of those, Brian, in your examples where some of the elevated products, we also really cut costs. But maybe talk about more legacy products. In your business, for example, a lot of the wall decor has been a longstanding product. But we're moving quickly into beach flags and banners. And how have you seen Build-A-Sign driving cost efficiencies?

Yeah, so I just I think in general, well, I'm really proud of the fact that both Build-A-Sign and National Pen have really been at the forefront of leveraging cross-symprous fulfillment to, you know, basically drive growth and efficiency gains. um build a sign over the past year um fulfilled nearly 24 million in variable cogs for uh other simpress businesses which is tremendous you know as martin uh shared earlier this is a very important metric that we like to track as we feel like it's a great indicator of us growing potential savings as we move more volume to focus production hubs and um you know which obviously includes insourcing from 3PS. Also notable is that these same products were able to generate almost $100 million in external product revenue for Simpris and $75 million in variable product gross profit. So huge profit driver for the company overall. On the National Pen side, It's a very similar story. You know, National Pen fulfilled 17 million in variable COGS for SINPERS overall last year. And, you know, probably one of our proudest achievements is around our upload and print business. We have started to work very effectively with our upload and print teams on this really new category for them. They don't have a ton of experience with PPAG. So we were able to basically open up this greenfield opportunity for them. Last year alone, we fulfilled a million dollars in COGS for them, which equated to $2.7 million in external revenue. And this is now our fastest growing partner across the Sempris network.

Great. Hey, Michael, do you have any thoughts of cost efficiencies?

Yeah, many. One thing, Brian spoke about Mexico and the role of Mexico in the National Pen and Build-A-Sign fulfillment structures. And as Vistaprint in North America, we have also made a step into Mexico. I already spoke about paper bags and food packaging that we serve from our Mexico site. And we will establish the Mexico site as part of the overall Vestaprint fulfillment network so that in the end, we will have three Vestaprint sites, one in Canada, one in Nevada, and one in Mexico serving our North American customers. For Europe, we already spoke about corrugated in paper bags. We fulfill that for all Simpress partners in Europe. And we also have a very close cooperation with other Simpress business units in Europe to use them as focused production hubs for orders fulfilled for Vistaprint from labels, books, magazines to flyers and folders. Those products are often coming from our ZipRest partners. And in row labels and books and magazines, we have an especially close cooperation with PixArt Printing where we use the wide assortment, the broad available order quantities, and the scale of the established structures and Pixar printing to make that available to our customers and also to get to the products in great quality and at very good margins for VistaPrint.

Great. Hey, Paolo, I think that touches on something which Michael just described comes from you or from your team. I'm going to probably ask you, do you have any specific numbers or details you could share on those label?

Yeah, sure. Yeah, Michael just mentioned the, I would say, brilliant cooperation that we have in the area of labels and stickers, where the network optimization that is enabled by the MCP allows pixel printing, which is the center of excellence for the production of labels, to integrate with the flow of Vista Printing and get the reach that Vista Print has of the customers. And as it was mentioned in the annual letter, our collaboration last year allowed an improvement for an improvement of 37% year over year in terms of VGP. So this is quite a substantial impact on the economics of the category, which is a very nice and growing category. Yes, and it goes both ways. As Michael was saying, we're able to couple the manufacturing excellence of the print group in certain categories, like booklets and labels, with the market reach of Vistaprint. And vice versa, as Michael was saying, we leverage on the expertise developed in Venlo, in Vistaprint, for corrugated or for paperbacks to offer to our customers. and being able to produce in-house products that otherwise we would either source from the market or that would not have the breadth of possibilities that we have now by leveraging the capabilities of Vistaprint.

Great. Hey, I'm trying to keep to this amount of time, Meredith, that you gave me. I think we're pretty close to the 25 minutes. Can I just do a time check?

Five minutes.

Okay, great. What is it? Michael, I'm going to go to you. Well, actually, a lot of you have been in this industry for a long time. But what is it about, I often use the term mass customization. We do. And when we realize that the bulk of the industry we're going after, the market we're going after is offline, What differentiates how Simpress operates from that offline competitor? Anyone of you can kind of love to jump in and spend five minutes talking about that higher level perspective.

So I think the mass customization approach is in its core an industrial approach, making really industrial processes at high efficiencies available to products that normally are produced in smaller quantities and in a more manual way of producing them. So if you look into our factories, you will find a lot of manufacturing engineers, process engineers who design processes, who work on quality structures. We have strong IT capabilities to guide everything we do with IT optimization. That's very different to a typical printing company. And so we really make industrial approaches accessible also to medium quantities because we define a product assortment and then bring many, many orders from the Internet together to be produced together in a very efficient way, but individually for each customer.

Brian or Paulo, do you have anything you want to add to that?

Yeah, I agree with Michael, fully aligned with him. I believe the difference that Simpress brings to the market is the fact that we do industrialize the process of producing a small quantity in a very rapid turnaround. So we're able to minimize the cost of a small lot of products, of items, and make it comparable to the industrial cost of a very large product because we combine all of these orders together. Of course, in order to be able to get that kind of economies of scale, you need scale. You need large sizes. The fact that a plant like PIXA printing has 15,000 orders a day or many of our plants are in that ballpark of a number of orders allows us to be super efficient in having very tiny unit costs and then being able to reflect that as an advantage to our customers and therefore being very competitive. And this is an advantage that other players that don't have the size are not able to compete with.

And I would probably just add product depth as well. You know, a smaller player can not nearly compete with the product depth that we're able to maintain due to the size and scale of what we do. You know, I think Florian touched on it earlier. Being a one-stop shop is really not realistic for a smaller player, you know, when you're not aggregating volumes like we are at this level.

It's interesting you say that. I spent a lot of time traveling to our production facilities recently. I was in Austria, where we had four different facilities. We leased a new building. We consolidated into one, which generated a lot of efficiencies in and of itself. But, you know, Austria is a relatively small market. We don't publicize the revenues of that particular business, but it's between 50 and 100 billion euros. So it's not a small business, but it's on a simple scale, very small. And the team there and the managing director there was telling me that about 30 percent of our revenues in Austria, in Druke, before our acquisition of Print Alliance comes from cross-Sympress fulfillment products. And that's really allowed us to really grow that business where a business that size in that market just couldn't afford to have that breadth and depth of products that, you know, when we have something like $2 billion of revenues across Europe, they can source from other parts of the business, including certainly Pixar Printing, the Print Brothers Group, and Vistaprint or National Pen are all suppliers to them. Hey, Meredith, I'm going to turn it over to you. I want to thank you, Brian, Michael, and Paolo. These guys will all be on the general Q&A, and I've seen we've gotten a couple of different manufacturing questions. We'll be back to you with more questions in a little bit.

Thank you, Robert, and thank you, everybody. That was a great discussion. I am so excited about our manufacturing capabilities, our new product introduction, this food packaging thing I'm so excited about. I mean, I'm excited about everything, the event, tents, everything. So, so good. But we are going to shift gears now. So we're going to move on to AI now as an enabler of growth and efficiency.

This panel will be hosted by Sean. very good welcome to the second panel here um so i think listen to ai it's a critical topic um for any business it's a critical topic for us um robert mentioned earlier and uh there's actually a few questions that have come in on this too but um how with generative ai really taking shape um and getting more penetration how that lowers the barrier to create great visual assets for anyone and how that's a tailwind for SimPress, given our role in the physical manifestation of that, which you just heard about in the prior panel. I'm not going to focus on that in this panel. I'm really going to focus on this panel on what are we doing and where are we focusing from an AI perspective throughout SimPress internally. This has definitely been, and it's an area investors are very curious about, it's been a measurable driver for us, for sure. It factors into the growth and efficiency drivers that we've talked about. And we're seeing impact really across all domains. And so we have six leaders here for the panel. They're all close to this work. Their teams are close to this work. And so let's dive right in. And I'm going to start where AI touches the customer probably most directly. And that's how we serve and grow the relationships that we've already had. have. And this is, again, where there's both growth and efficiency stories that kind of converge. And so I'll try and hit on both of those. So Florian, I'm going to start with you, just given the prevalence of this topic in your presentation earlier, you focus a lot on growth with high value customers in your presentation. Can you just share maybe some examples of where we're leveraging AI to help us to both retain and deepen our relationships with high value customers today, including some of the work we're doing with personalization, which we've touched on a little bit in past investor days.

Yeah, sure. Thanks, Sean. Yep. I mean, probably starting with sort of the customer care and account management space, within that really, to me, there are two flavors of that, right? One flavor is the sort of fully automated, no human interaction side of things where AI has really drastically increased the velocity at which customers can self-service and, you know, get help through chat. And that is especially important for elevated product purchases, you know, because these are products that often require a bit of interaction. You know, when you go to the Vistaprint website, look at our Vista Assistant, you can actually get product advice through that chat interface, which is, you know, great because that allows us, especially for elevated products, you know, to engage customers at an early stage and then drive those purchases, which are key to deliver, you know, high value customer On the human interaction side, you know, I'll say that even this coming quarter, you know, we'll be launching AI customer summaries that will then equip our team members with what they need to know in the moment about the customer, their request, and how they can best sort of frame their interactions with customers based on what they might need And that in itself, too, you know, it's really a combination of various, I would say, modular developments. The what you need next sort of module is one that we've been developing over time and it's actually now powering some of our sort of on-site recommendation toolings. And then there's obviously continued development from there. I mean, something that I notice a lot when I talk to customers is just the sheer amount of customers who now design using an AI tool and then come to us and upload that design. And it's interesting because that in itself really gives us new opportunities because it means we can personalize the website experience for those customers because basically by what they upload, we get a sense for what the logo is, what their color palette is. And so that allows us to make the whole site experience a lot more personal than what it used to be. And then the last area I'm going to call out is the relevance of our marketing messaging. You know, we've, and I think I talked about this even at last year's Investor Day, we're able to put together our marketing campaigns from reusable, pre-built, creative Atom libraries. So the model will pick what a customer sees, and the model will, based on the feedback, then continually improve the relevance and drive the engagement of the marketing messaging campaigns that we put in front of them. So this is a couple of examples. It's really fascinating. And it's obviously driving a ton of improvement for customers and the business.

Yeah, absolutely. Yeah, cool. Great examples, Florian. Thank you. And then, Paula, maybe I'll turn it to you. I think a lot of the examples that Florian had, I would say, are more on the growth side. There's an element of efficiency there, too. But I would say your teams were out of the gates very quickly, leveraging AI on the efficiency part of this, especially in Pixar printing. So maybe just walk us through what your teams are doing from an AI perspective on both service and the cost to serve our customers.

Absolutely. In the print group, AI is changing the way we operate across many areas. And this is how it impacts on the way we serve our customers. It impacts on the efficiency we operate. For example, you mentioned PIXA printing. Today, 60% of the chat sessions of our customer care department are fully operated by AI. And these sessions receive 80% positive feedback. And the rate of first contact resolution is as high as 77%. And this means that you mentioned about cost reduction. In the course of the past three years, we were able to reduce the team by 21%. In spite of the business growing, normally the customer care resources would grow in a relationship with the growth of the revenues. In spite of this cost reduction, Pixa Printing, not later than last month, got the number one rank in a national award for customer service, professional services, especially in the area of quality of service and professional competence. So I'm proud to say that AI is part of our broader efficiency improvement and it has not impacted on the quality of the service that we provide. But that's one area. Another example could be in the marketing department or in the go-to market where we are able to apply AI for the creation of campaigns, for the translations. This is, again, pixel printing and more than 12 different markets with all the declinations of languages across Europe are handled through AI, the design workflows as well. And this has allowed us to significantly reduce costs to the point that we're able to produce 300 percent more content than before the introduction of AI. This means that we can deliver more localized versions and more service with the same resources. So the opportunity of AI for us is to lower the cost of serving our customers and at the same time to increase the capacity to support our growth.

Cool. Great stuff, Paulo. And as I said, I think especially in Pixar printing, you guys were out of the gates quick. And so at this point, these are very kind of measurable and very real things that we're seeing. So great, great stuff there. Maybe let's turn to the customer acquisition end of the spectrum here. And, you know, like this is an area that's evolving really quickly in terms of where customers or potential customers do their searching, do their discovery. And that's moving more towards, you know, AI and agents. And so let's just talk about how we acquire today, how we're positioning for that shift. And I think maybe Florian, this is relevant across all of our businesses to varying degrees, but especially relevant at Vistaprint. So I'll come to you on this one. And I think we're using AI and customer acquisition now, but what are we doing to make sure that that move from today's channel mix to agentic commerce and the world of agentic commerce is as smooth as possible and that we're positioned to take advantage of whatever opportunities lie ahead.

Yeah. So, you know, as you say, you know, clearly winning in these LLM chatbots is a top priority for us. It is where more and more potential customers and existing customers, you know, are starting their journey. So we have to be there. Now, what are the key things that we're doing? I mean, obviously, it starts with making sure that we're discoverable and that has a technical component. Right. You heard from Martin and, you know, we'll hear from Adam, I think, you know, about all the work that we're doing on structuring our data. structuring our content, make sure that is relevant and sort of can be consumed. But then I also, you know, always like to remember everyone that, you know, I'm thinking of LLM chatbots, quite frankly, also as just the most demanding customer and the most savvy customer we've ever had, because it's almost like they're omniscient, right? They know every price. They've read every customer review. They've read every product review. And so, you know, really, in some way, the good news is that the basics still matter. The basics of delivering on time, the basics of having a great quality product, the basics of having a broad assortment. And so the good news is we're actually pretty good at those basics. And obviously, we keep improving on those basics. But to me, that is also part of just making sure, you know, we are discoverable as a primary brand within those new channels. Besides that, you know, or to support that, we have put in place measurement that tells us where we can improve to be recommended more often by some of these LLMs and the bots. We talked about this. We're definitely also investing in direct advertising spend. We're improving the signals that we send to our media platforms so their AI-powered systems can do a better job of finding high LTV potential opportunities for us. And then also the continued investment that we're making in our brand, I think is important that context because it creates a deeper connection. So we remain a direct destination or continue to be known, including to LLM chatbots as a destination, which that means, you know, we are discoverable and which means customers trust us with their business.

Great. Such an important area. Yeah, I know firsthand it's a big area of focus for us. Adam, maybe I'll just offer up the opportunity for you. Is there anything that you want to add in terms of just, you know, there's a lot of, Florian mentioned data structures and other elements, like there's a lot of infrastructure stuff here. Anything you want to add in terms of what we're building underneath all this to enable it?

Yeah, sure. I think, as Florian mentioned, obviously there's a lot more just discovery happening on these agentic platforms. And so the good news is the industry has basically standardized on a protocol to make these integrations more native. And so whether that's our onsite agentic experience or our offsite with Canva, with OpenAI, with Google, whoever that may be, we've been spending a lot of time building our foundational infrastructure around something called model context protocol, which unfortunately has the acronym of MCP that we try to navigate internally effectively. But we've been building this core infrastructure, which is similar to the Web 2.0 days of where everyone had to have a consistent API that was able to be integrated to all these other experiences. This is effectively the agentic version of that. So we've got all the foundational plumbing that now gives us the ability to not just integrate, but also have a truly native experience. Florian mentioned how so many more of our customers are now starting their designs of these experiments, we want to make sure they can start with the design and continue the experience if needed to do discovery, to do checkout, to do customization natively in those platforms. So I think you'll see more here. And I feel really excited about the advancements we've made in this space.

Yeah.

Thanks, Adam. I know how close you are to that work. So great stuff there. There was a live question that has come in that is broadly connected to this. So let me just ask it here, and I'll probably turn to you again, Adam, and also Martin on this one. But the question says, how do you see the rise of end-to-end capable AI agents like Muse, news of the last week, impacting your business and in particular, your customer relationship over time? So maybe Martin and Adam, again, probably with a focus on the infrastructure piece, can you comment on that?

And if anyone else wants to jump in, feel free to do so. yeah i'll answer a little bit with the infrastructure for sure but also a little bit on the question so i really like the florian's answer just now because he also said the customer will become much more savvy with all of that data and you already saw some news with muse that some major retailers out there were starting to block it because you know pricing becomes extremely transparent in these kind of things and again i do think we're positioned pretty well with those basics and continue to prove them and so indeed the basics structured data building an amazing model context protocol like adam just said is key and then this becomes more like a new sales channel that's how we really see this to develop and we're just on top of it we're not completely there yet it's not live everywhere but we are fully on top of this in terms of like this is going to be a major sales channel i mean i could change completely my behavior how i work in internet search and these kind of things as most everybody has done now and you can just see where this is going and we're we're going to be on top of that adam you yeah and just to add i think um you know i think about sort of the mobile era as like an interesting equivalent where you know we used to just be on desktop and then we had mobile and we had to completely rethink what were the experiences like in a smaller device that allowed you know customers to still continue their journey and have this experience with the brands.

I think agentic is just another version of that. And so when we think about these integrations, we need to make sure, hey, this is not just about our site or mobile experience. It's now about what is the agentic experience where I can still go through design and customization and not have to leave where I am, whether it's in ChatGPT or Gemini or another tool. And so I think that native commerce experience outside of just having the infrastructure plumbing is also going to be really critical for us so that we can have these truly native agent of commerce experiences offsite.

Great. Thanks, guys. That's a great, great question and a highly relevant one as well. I'm going to keep moving here and turn to a slightly different topic. You heard in some of our presentations about new product introduction and product selection being an important part of our growth path. And so let's just talk a little bit about how AI is allowing us to do that or do that better, both from a speed and cost perspective. Brian, I'm going to turn this to you in the promotional products category. This is just a must. There's a new product introduction as a constant. And so can you just maybe walk through what the National Pen team has built in this area, but also how that might have applications beyond just National Pen?

Yeah. Yeah. And Martin actually touched on this in his presentation, but I think it's such a quintessential example of how AI can positively impact our business as well as the customer experience. So definitely we want to touch on this multiple times. So one thing I've learned very quickly about the PPAG category is providing customers with a large product selection is absolutely key to being competitive in the market. It's also critical to be consistently refreshing your product assortment as trends move very, very quickly through this category. So NPIs or new product introductions are absolutely critical, as you said, Sean. As a result of this realization, the national pen team embarked on a goal that really 10x our rate of NPI, right? How do we move 10x faster than we are today and 10x more efficiently? I'm very proud to say that they blew out that goal by far. And they have now built and started to deploy an AI driven process redesign that cuts the cost of selecting, configuring and merchandising new products by more than 95 percent while increasing throughput speed by more than 20 times. So so we're talking, you know, it used to be months from beginning to end of the process to now minutes. It used to be, you know, our estimate was about a couple hundred dollars of work based on all the individuals had to touch the process. And now it's down to five dollars. Right. And so just tremendous breakthrough to be way more efficient. And we're off and running with that new process. The other thing I'd add is, you know, this also comes back to the Simpris experience platform, right? And now that National Pen is on the Simpris experience platform or moving towards it, we are now enabling the same technology and new process for Vistaprint as well. So now, you know, basically both businesses are really benefiting from this breakthrough.

Great. Thanks, Brian. I think what's great about that example, one, it's having a material impact, something that's really important, but also it involves the complete redesign of an end-to-end cross-functional process. It's not like little productivity improvements, but there's a complete redesign, rethinking, and putting agents really front and center in that redesign. So anyway, great example. Thank you. Let's maybe turn to some of the aspects about just how we operate, some of the things that will also lead to efficiency gains. And of course, technology is front and center in the AI discussion. So maybe let's start there. Adam, I'll start with you here. And maybe you can just give an overview on some of the things that in our engineering teams that we're doing to embrace AI and the way we operate. I think from an external perspective, it's hard to get a glimpse into how we work, how that work's changing. And so maybe just talk a little bit about how that is happening in the engineering domain.

Yeah, sure. I think there's probably two aspects to this. The first is, I would say, within engineering. So I think we all know writing code and all these things has completely disrupted software engineering as a job, and we've all been rethinking how we work. So one of the big innovations we've been focusing on internally for engineering is something we call our software factory. You may hear things like harnesses and things of that nature. Basically, what this is is the ability for us to provide context and automatically generate code at scale with the right guardrails, the right security checks. And so, for example, we have, you know, teams that had backlogs of maybe some security fixes that they wanted to fix, and we can now, you know, rip through those in days or, you know, writing tests or running experiments. So, you know, we are just drastically rethinking how do we take, you know, our strategy, product work, and turn that into working prototypes that we can get feedback faster in our overall kind of software factory machine. And then if I think about just the general tooling, and so Brian kind of hit on the product introduction. So what enables that underneath are kind of a couple of platforms that we've built for the broader organization. And so this enables individuals or teams to build agents that can take on workflows, take on automations to do some important work. For example, we have a 3PF claims processing. This historically has been a process where, you know, maybe a supplier failed a commitment to us through an SLA. Someone had to take that, manually upload a PDF to a third-party site, file a claim. We had to make sure this was done within a certain timeframe or we couldn't file that That process has effectively been completely automated, which are real dollars that we can now recoup. And we have a system that does that validating QA on our site. So we want to make sure that product descriptions and details actually match what we're getting from suppliers and in terms of what they're getting on the website, that's historically been a pretty manual process to go individually look at products. And certainly in a world where we're 10xing our product introduction, we need to support a QA process that scales. And so we can now manually fire up agents that can go validate the quality and all the efficacy of the data on those sites to make sure it matches effectively. So, you know, I think internally in engineering, our software factory, and then for the organization more broadly, we've now got these agentic automation platforms that we are enabling businesses to drive more end-to-end business workflows, which has been really promising.

Great. Thanks a lot, Adam. And then maybe just just briefly, if Martin or Adam, you want to touch on this in terms of we're going to get to the people impact of all this in a moment. But in terms of like how teams are organized, anything you want to share just in terms of how that's starting to get reshaped, anything that relevant to share there?

Yeah, I can I can extend. So I think given all those changes and how much more, you know, how differently we're writing software these days, I think the outcome of that, from our perspective, is sort of wider, flatter teams. You know, I think we are rethinking the boundaries of teams. You know, there's now opportunity to own a much more broad scope. And I think within those teams, just given how effective these AI tools are, you know, what we're seeing is kind of small pods of two to four engineers owning a problem end to end, sort of acting like this mini startup within the team can really drive a lot of efficiency move really quickly get to outcome outcomes really quick um so we think that general model of this flatter teams with the pods inside is going to be a bit of the model of the future of how teams work yeah and and it's exciting and adam is certainly like you know spearheading that in the organization on many parts and which is awesome at the same time i also want to you know emphasize the fact that you know if if an engineer would start today's startup all by themselves and

green food something you can be instantly you know agentic and and and after the races but the reality is also at a larger enterprise and we have many processes and systems that you basically have to rethink how do teams organize and if you've ever been close to software development organizations they you know have their methodologies of agile or kanban or extreme programming and there's all these kind of methods that have happened over the last you know two decades and you know product thinking etc there's all almost everything of that gets a little bit put against new line now the good thing is we're like full into it like on all on all cylinders uh but it's going to take you know a few a few months and until a few quarters until you really reach the core of systems that work right now running all of simpress and say okay that whole team is now organized and and and structured so the exciting completely new world but we also could be realistic that we gotta you know do some change management across the whole organization as does every company around the planet probably great thank you guys and um we're a little tight on time i wanted to go through some other um kind of opx examples like conversational analytics and some other things but why don't we uh why don't we skip ahead to a really really critical part of this which is really all things to do with people and org and culture and Louise, you're at the center

of this. And so let me flip it to you. Could you speak to that? You know, what we're doing to upskill people, L&D, organizational shifts, all things, people. I'll throw that one to you.

Yeah, absolutely. Thank you. Let me actually, I'll start with actually what we've done on the culture side. So a year ago, we launched our new Vista behaviors, and really just specifically to strengthen kind of the entrepreneurial culture and build momentum around AI. And so a lot of the new behaviors really focus on speed and customer focus, bold experimentation, so key attributes that really matter in the AI world. So that's like been a really important kind of evolution that we've gone on over the past year, and really embedding all these behaviors into kind of day-to-day work from how we hire, how we develop talent, how we review performance. So really, the goal is changing how we work in an AI-first model from a culture perspective. On the L&D side, Florian mentioned it in his presentation, we've kicked off an AI development goal for every single team member across Vistaprint. They're working on that through the end of the year, and something about how they're going to simplify, automate, use AI in their daily work. And the response has been huge. Team members, you know, have just kind of dove right into completing AI courses, kind of doing hands-on experimentation. And we have just a really robust learning community where we're sharing kind of real learnings and use cases. As we head to FY27, we're going to really double down on upskilling on human competencies that complement kind of this kind of whole AI first shift. So key skills like systems thinking, change management, resiliency, high judgment, these are really important skills that all team members are going to need to manage AI effectively. And then maybe I'll cover off one other thing, which is how do we think about the organizational shifts? Adam just covered it as well. But we really want to think about what shifts for the team members and how they work with AI differently from how they're doing that today. So team members will really start to move to become kind of the orchestrator, really, and set the strategy and the intent and really figure out what problem are we solving, whereas then AI agents actually figure out how to execute that problem and really deliver the end-to-end outcomes. So moving to this agentic model isn't just about redesigning the orgs. It's about how team members become kind of these single-threaded owners over broad outcomes. And I think this will also change our cost curve significantly. It allows us to really kind of scale and execute faster and better and achieve larger outcomes without increasing high count.

Awesome. Thanks. Thanks very much, Louise. It's such a critical component to all of this, and there's a lot of work ongoing there. So thank you. the um i i'm going to end this with and i'd ask uh either martin or adam to chime in and do like the 30 second version of this but you know there's a lot of benefits we talked about those benefits are real but this stuff does have a cost to it uh this is a big topic and um just maybe touch on from an investor perspective like what are we doing to control costs like how do investors know that we are taking modern approaches have the right controls and governance in place uh brief answer, go.

I'll go first. 30 seconds is, I feel really excited that we took very early steps to get our quote unquote FinOps and instrumentation really tight. So we know where every dollar goes for every department, for every AI application that we run. So auditing, reporting, governance is really tight. Normally you do these things, then you spend months trying to figure out where all the dollars have gone. So we made a lot of upfront investments in the infrastructure in terms of where all those dollars are going um we're also looking at other avenues things like open source models which have a very different cost profile um like orders of magnitude different cost cost profile and then lastly i will say we are investing in some technology which allows us to basically automatically route requests to the most cost-effective model so today in most scenarios you manually choose the model you want to use for the task in the future we think there's a more dynamic element to that, where we can have technology actually choose the most cost-effective model for us automatically. So that's my 30-second of where we've been focusing. Thanks, Adam.

Martin, anything, last words on this one? Adam said it perfect. Great. All right. We'll end it there. Thanks, everyone. Exciting area. A lot of progress. And yeah, I'm sure there'll be more questions in the general Q&A. So back to you, Meredith.

Fantastic. Thank you, Sean. Thank you, everybody, on both of our panels. You are not off the hook yet. So I will remind everybody that if you are going to be speaking in this session, please re-engage with your camera and microphone at that point. Or your camera now is fine too. Okay. How do we think? We're going to move right into the Q&A. We have pre-submitted questions and we also have live questions. And thank you to our investors and sales side analysts who have submitted these questions. All right. How do you think about the decision to acquire a business versus signing a multi-year supply agreement? When would you choose one option over the other? And I'm going to ask Robert to answer this one.

Okay. Well, first of all, we don't typically have multi-year supply agreements for production operations. We do have them for materials and logistics suppliers, but they're not acquisition targets for us. So when we look at firms, Should we invest in them on a minority or partial equity basis or acquire them? First and foremost, it's a strategic fit. And is the company going to help us with our objectives? For example, is it going to strengthen our capabilities and elevated products? Is it going to add focused production hubs or integrate directly into our fulfillment network so that we can better serve high value customers? Secondly, it really comes down to economics. That we roll into a ROIC calculation, and if we don't have a base case returns above 20%, we won't do that. And that's a combination of the business, the price we pay, and the synergies we can feel confident about. So we have a long list of companies who could fit those two criteria, subject to, again, an attractive purchase price. So the choice we were making is more, first of all, what other uses of capital we have, organic investments, share buybacks, then we get to M&A, what is the best option given our management bandwidth in the criteria I just described?

Wonderful. Thank you, Robert. I will stick with you for this next question. We knew we would get a question on Canva, and yes, we did. I'm hoping that you will provide detailed information on the partnership with Canva. I'm particularly interested in knowing whether this is an exclusive partnership, or could you strike similar deals with other design platforms like Adobe Express? And then another question on how the partnership is doing relative to our expectations so far and what kind of contribution we expect from it in FY27.

Okay. Well, for contractual reasons, we cannot share details about the economics or financial results, but I can say we're growing fast off a small base. We as a business, and they are very excited about the potential of this partnership. But jumping to exclusivity, no, in neither direction, Canva still works with a network of highly qualified print service providers. They have historical relationships with Canva, and we have the ability to pursue relationships with other partners. So that's a technical answer. I'd say in terms of the spirit of our partnership, it is very much one of cooperation and growth where we feel this is a win-win opportunity. We're working very closely together. We've established a team in Australia to work closely with them. And we're going to the other question. We are less than a year into this partnership. We started talking about this in the very end of 2026 calendar year. And I'm sorry, 2025 calendar year. And we're, I'd say we're doing very much in line with expectations so far. We always are looking to do better, but we're happy. And I think Canva, to our knowledge, is happy as well.

Thank you, Robert. Sean, I got a question for you. A couple of questions on this one from folks. When you gave your guidance back in July, you didn't include anything for the new 50% Canadian tariffs, but those have since become effective. What is the impact on the company and what's your expectation for how that will impact FY27 results relative to your prior guidance? And then another one similar asking about the tariffs in Canada in particular and the impact on cost and margin.

Yeah. So these Section 338 tariffs came into effect August 19th, I believe. So that was after earnings. And so that started to have an impact on us. I think we made some remark about this either on the live call or in our earnings doc saying that these tariffs only impact a small percentage of the products that we produce in Canada. But but there is there is impact. And that's impact that as we went through, you know, over the last year and a half or so, that we continually look to to mitigate that that risk and make operational changes. And I think we've demonstrated that we have a competency to do that, leveraging our broader supply chain. And we have a great set of folks and leaders that are doing this work every day. It's been a big area of focus for us. As it relates to the guidance, we didn't put anything in our original guidance. And obviously now I said we were having some impact from a cost perspective. That is balanced by the fact that we also didn't include the refunds that we anticipated for phase two and phase three IEPA tariffs that we're starting to get those additional refunds come through now. Now, on the tariff costs, we have no idea what the duration of these will be, if they will change, go up, go down. But based on everything that we know today, for the full year, the way that I would think about it, the way that we've modeled it is that, broadly speaking, the increased tariff cost will be offset by the tariff refunds that we anticipate getting and have already started to get. But the thing that will differ is that quarter to quarter, like, for example, in Q1, I would expect that the refunds will be more than the increased tariff cost. It'll probably be the other way around in Q2. And then there will be a curve of which we'll be bringing down the impact because we're putting all of our mitigation in place. So TLDR, I would say, for the full year, net neutral between the two. But yes, these are having impact. And yes, we're on it in terms of how we operationalize against that.

Thank you, Sean. A lot of work going on in order to make that happen. OK, we are going to shift gears a little bit here and I'm going to call on Florian here. But the question is a little bit involved and it asks some question about metrics. So stick with me here. You've mentioned the shift towards elevated products is having is increasing your average. order value, what effect is the shift having on the frequency of orders? Can you show a figure that plots the average number of orders per customer over the last few years? Can you show the percentage of repeat customers over the last few years? So Florian actually did share a partial answer to this question. This was a pre-submitted question in his presentation for Vistaprint, where he showed the comparison of different order stats for the 650 plus variable gross profit per customer population versus the average for all customers. So Florian, I'm wondering if you can just sort of give a sense for the trends there, because that was just a point in time.

No, no, absolutely. So really, and I hope this came through in my presentation, where we're focused is the $650 VGP plus type of customers, which, as you saw in my presentation, is a growing segment of customers. And that segment of customers, just to repeat the facts that I shared earlier, has really interesting characteristics. And to the specific question on order frequency, these customers order 8.7 times a year. Our average, you know, So it's sort of the non-650 dollars, so the ones below that threshold, order around 1.6 times per year. So there's a factor of 5.6 as you move sort of from non-650 dollars to $650 plus VGP customers, which is significant. So, you know, rather than looking at the averages, I guarantee you we're internally very much focused on growing that segment of customers because to us it is what is possible as we deliver on our value proposition. Nevertheless, coming back to the question, when you look at the combination of all customers and the combination of the different measures that I also referred to earlier, what you will see is that the number of categories shopped and items per order are up across the population. The total number of orders is actually lower, but the AOV, the average order value, is up significantly. And that is driven by product mix and a few other outputs of the strategy that we're delivering on. So that's roughly the picture. And again, I think, you know, rather than look at the average, I really encourage everyone to look at our ability to drive growth with that segment of customers that is so central to our strategy and that responds well to the investments we've made, especially in elevated products.

Thank you, Florian. Very helpful. Okay, I'm going to toss this next question to a combination of Robert and Brian. So this is a question, this is a great question. In January, you announced that National Pen and Build a Sign will share capabilities with Vistaprint. Does this mark a shift toward more centrally coordinated decision making? Or does the decentralized model remain intact? And Robert, why don't you start first and then we'll move to Brian.

Great. So, first, it's an important question, and it's a multifaceted answer. I'll start out by saying, yes, we are, and I mentioned this, we are moving towards what I'd say is a more balanced place between decentralization on one hand and centralization on the other. And we're also moving more towards cross-business collaboration and common platforms. Now, in areas, we're doing that in areas where the benefit of scale, of efficiency can be very strong. And shared technology infrastructure, supply chain management are great examples of that. Now, that being said, we are working hard to maintain autonomy for teams where that drives speed and innovation. So first of all, manufacturing innovation happens within the businesses. I would say even within our larger reporting segments, within different parts of those segments. So different parts of Print Brothers or Print Group or within Vistaprint, different facilities. because we need those teams to be very close to the production floor, the supply chain of capital equipment, the production engineering, and have a strong understanding of the customer needs. And that's really that proximity, which many different parts of Simpress, but for example, Pixar printing has been incredible for decades, that close cooperation is critical. So it's not a choice of all of one thing or all the other. And because manufacturing innovation and therefore a lot of new product interactions happens on this decentralized autonomous basis, we use this federation approach as opposed to a really centralized state where cross-Sympress fulfillment allows us to have different parts of Sympress take advantage of those different innovations. I'd also say that when we have smaller businesses that are growing very fast or have a very specific geography in which they focus on, we leave them heavily decentralized. I mentioned the Austrian example. They can use cross-differential filament, but we are cognizant of both the advantages and disadvantages of centralization and vice versa for decentralization. I'm going to say one last thing on central platforms like the mass customization platform or global procurement. First of all, we try to design those to be configurable. They're not one single approach so that different parts of SimPrice can use them in different ways. And that's an important component, that configurability as opposed to a single solution. Brian, I'm going to turn it over to you to talk a little bit about the cooperation between National Pen, Build a Sign, and Vistaprint, which is not really a central thing. I think it's happening within several reporting segments, but I'm aware of and I get updates on, but I'm not driving. So can you talk about that from a decentralized perspective?

Yeah, I think in general, this whole move is trying to get the best of both worlds, right? And how do we leverage the areas where we still want decentralization and autonomy within the businesses plus benefit from where it makes sense to be more centralized? I think there was probably also sort of a realization that a lot of the growth initiatives for both Build-A-Sign and National Pen were very closely aligned with a more centralized view, as I touched on earlier about, you know, cross-infrast fulfillment, you know, et cetera. But but, you know, the real another huge benefit, though, that I want to really touch on is this the capabilities and these assets of both National Pen and Build-A-Side that we are now leveraging to help Vistaprint. So there's some great examples so far today. I already talked earlier about the 10x MPI moving to the Simpris experience platform. So basically getting the businesses on the same complete end to end, same technology stack. Other examples are National Pen has tremendous expertise in the direct mail channel, as well as telesales, and we're leveraging both those with a test for the VistaPrint customers currently. And then finally, I think a lot of people forget that National Pen is now celebrating its 60th year anniversary of being incorporated. So there is some deep, deep experience in terms of product development and sourcing around the PPAG category that, you know, Cannaway has probably been, you know, really benefiting National Pen up to this point. And now we are taking that expertise and using it for the benefit of a Vistaprint. So so I think overall, this has been a great move and a great change and the right thing for Simpris overall.

Wonderful. Thank you. And, you know, the way that I always think about this topic is is not, you know, one is one is right in all circumstances and the other model is right. airs wrong in all circumstances. It's really where are we in our evolution. And so, you know, we are able to do things and share capabilities together now because of the maturity of where we are from a technology perspective. And so, you know, that wasn't available to us five years ago, all of this collaboration. But because it is available to us now, of course, we're taking advantage of this because we can and it's the right thing to do from a cost perspective and from a revenue growth perspective. Okay, we're going to move on to another question about MCP actually. And Robert, I'm going to ask you to weigh in on this one. So we've been talking about the opportunity around MCP for years, but it seems like we're finally starting to see it impacting growth and margins. What is driving that?

I'll jump in. And then Martin, obviously leading MCP and being very actively involved in the SEMPRESS revenues of cross-SEMPRESS fulfillment, may want to jump in. But this has been a great example of, you know, we say we want to focus on focus. That's a short way of saying we have to execute. And it also touches on that last question we just spoke about in centralization or decentralization. We know that aggregating similar products into single focus production lines or production hubs drives great advantages both for customers and for Simpress shareholders. That's just a core part of mass customization. Volume brings a lot of benefits. We also understand the importance of having proximity to customers and decentralization. So we've been working for multiple years to understand the impediments to driving more of the MCP marketplace vision for the last several years, and then focusing on that detailed execution to build out the culture, the technology, the incentives, the processes, and yes, the technology around that. So I'll start with the technology. That's certainly gotten more mature. It's better and more robust. It will be better and more robust two years from now, but I think we almost focused too much on the technology early on where, yes, the technology matters, but there are many other things that needed to be addressed. Very closely related to the technology was the establishment and the enforcement of common product standards across Simpress. So how do you define the customization? We had initially not centralized that. In retrospect, we now realize without common standards, this may sound obvious in retrospect, a high-volume software-driven platform can't ever become a platform without common standards. So enforcement of that was important. Secondly, I guess third after the technology enforcement is once you establish those standards, they can be an impediment because they're expensive or complex to move from one set of standards to a new set of standards. And to lower the configuration cost of that movement, Martin's team built a centralized MCP operations team that's developed AI-based automation and whose team members are located in low-cost locations, mainly Tunisia and India, and that has radically lowered the cost and hassle to our businesses to move on to product standards, and it's greatly increased the compliance to those product standards, and that allows more flow. I think importantly, just being very explicit about our declaration that we are moving to this federated approach of focused production hubs and that we want the volume to move to the best facility for this, that has helped. And then I'd say last but certainly not least, you know, people, you know, respond to what their incentives are, what their reporting structures are, what their financial incentives are. And individual businesses and managers now are exposed to what's good for SimPress overall rather than what was previously showing up on their local financial reporting system. So I often say, you know, from my perspective, it's moving from Simpress's left pocket to right pocket where the margin of a fulfillment order went. But prior to a few years ago, we were literally having different parts of Simpress negotiate with each other over who would get that margin. And about one to two years ago, we moved to a new management financial reporting model, which we've explained in our public investor relation documents of cross-Sympress fulfillment. And that leads to this intersegment reporting, which we report. But the effect of that for our frontline leaders and team members is that the merchant, the part of SYNPRESS buying the product, is only charged the variable cost of production. And that makes it very attractive to them to move to the focus production hub. So I'd say what I just gave was five or six different components of what's driven the shift in the last several years, where I think the question was saying we're starting to see the impact in growth and on profit, profitability and margins. It was not one silver bullet. It was really multiple years working through all these different things. And I know there's a very long answer. Martin, do you want to add anything to that?

I would love to add more of a background story real quick. Ten years ago, Robert and myself had the pleasure to have a sit-down dinner with, I think, the CTO of Amazon, Werner Vogels, to get advice specifically about platform building in a larger company. And he also said, it's going to take you 10 years, right, to get to the final ends of it. And there's going to be many, many value drops in between. and we we have certainly seen that but we're really getting to that point where we have a mature platform it's working all those business synergies are really that robert just mentioned are coming there coming coming to fruition and you know it's hard when you buy companies there's all the cultural differences we've always done it these ways and etc the verbatim but now it's just becoming so obvious that ncb is that better thing to just work together with that it becomes easier to have these conversations instead of hard than it was five six years ago because MCP was indeed maybe too technically there but not mature enough to really run the processes at scale on it so it's been a long investment run but we're finally getting there I'm extremely proud of the teams and everybody that we're getting to this point and it's a real asset now for the organization so in the end we have to listen to the device I remember that Robert even asked Can we do it in five? And he certainly tried to make me go faster all the time.

Thank you both. Thank you. We're going to stick with the topic of what MCP empowers here. We had a question. This was pre-submitted. So along with intersegment revenue, it is useful to see intra-segment revenue within the upload and print groups in particular. This seems like a useful figure to track the use of the mass customization platform. Can you provide a figure that shows intra-segment revenue over the last few years? And I will just say that I'd like to point the asker of this question and everybody else as well that's on the call. Martin did show a figure on a chart on slide 28 of our prepared presentation. And the chart there was the variable cost of goods from cross-SIMPRESS fulfillment. That is not, that is across all of our businesses, right? So it's what our businesses are transacting with each other, the variable cost of goods there. And what that means is that is a different number and a higher number than what is taken out and shown with intersegment, which is what we report with our earnings announcement every quarter. And so you do get a sense here with the number that we showed in Martin's presentation on true business-to-business volumes.

Great. Thank you. And Meredith, I think it's important. Just one more clarification on that. That, I believe, was a chart of the variable gross, the variable cost of goods that we had. And internally, we focus on the cost of goods, not the revenue, because we're trying to lower the cost of goods. And different parts of Simpros have different margins, depending on their advertising intensity or their types of products. So it shows the trend you're asking about. Now, we don't plan to share that intra-segment, for example, within Print Brothers or within Print Group on a quarterly basis like we do for intra-segment, but it is growing. And I can say we don't have a team member today here from Print Brothers, but that's the other part of Upload and Print besides Paolo's portion. It's definitely growing between Wehrmacht and Group, Print Alliance, and Print Deal.

But Paolo, you're here, so I'd love to have you give some examples within Upload and Print, within the Print group specifically, what's happening and what are you seeing there? yeah within the print group also the intra segment business is growing so that means pixel printing producing for exaprint or exaprint producing for pixel printing or other business units within the group and it is growing and it is a substantial number but beyond the value of revenues, the value there is that each business can provide, can offer more products without having to develop their own capabilities in their own plants. And also, each business can serve their customers with a closer plant than the plants that they have available within their own business unit. As an example of the first case, Pixaprinting is using, or better, the second case, Pixaprinting is using the plant in Montpellier, Moguillot, by Exaprint to serve their customers in France, or the plant by TradePrint in Dundee, UK, to serve the customers in UK. On the other hand, because it works both ways, both Exaprint and TradePrint use Pixaprint implant for the production of labels, because that's where the expertise of that particular category is concentrated. So all this is allowed by the Simpress technology platform, the MCP, that we just talked about. It took 10 years for us to have it to the level of today, and today this process is running seamless and so thanks to that we're able to produce all these intra-segment business that goes on top of the inter-segment business which is even bigger that means a business that all of the plants of the Brink Group are doing for all of the other business units and the Brink Group is serving every single business unit in Europe and also Vistaprint in Europe and in the US. So at the end this capabilities allows us to bring more choice and better value to the customers. It allows us to bring more volume, more growth through our specialized plans. And also this is built on the capabilities that we already have. And so more volume in the same plan means more efficiency and therefore more margin.

Thank you, Paolo. And thank you for being such a wonderful steward of our capital and the capital that our shareholders entrust to us because you are looking for efficiency gains everywhere you can and also ways to grow our revenue everywhere you can. Like all of us. All right. So we're going to move into a next question for Sean. Sean, this is a guidance question. What are the biggest factors that could deviate the FX neutral revenue guide from our target of 3% both to the upside and to the downside? So hypothetical here.

Top of my head, I would say the kind of a condensed version on the upside, a condensed version of what you heard today. So what are we doing with our launches of elevated products? Like what's the pace there? How quickly is that volume ramping? So that's one. The reality is that like the upside there, I think in terms of like upside relative our guidance, they're relatively limited just because those things have a natural growth curve to them. And that would happen to kind of drain the year. The next one is our partnership with Canva. And so that would be clearly a call out if that ramps up faster. And then I think the other one to call out, which is less about like, how do we grow faster and more about where we're, where we have decay, how do we decay slower, which has a really big impact because that's still a meaningful portion of the business. And that would be in things like business cards where we have planned for declines. Does that happen less than we have planned for? Or even in some of the channels that have similar characteristics where we've planned for a decline like in the reseller channel, does that happen slower? So I think those are the things that are caught on the upside. On the downside, I hope we set our guidance appropriately realistically, we believe. But so on the downside, I would say, does that decay that I just mentioned happen faster than we expected, which has not been the case, but that would be the kind of inverse of the upside one that I just talked about. And then the other one is just, I think, like macro environment generally. And we've talked about this for a long time. We perform well in difficult macro environments. They're not all, you know, they're none of these kind of macro, like challenging macro environments are created the same. Yeah, there's from a customer perspective, they're dealing with inflation, they're dealing with a complex trade environment, dealing with all things AI. So it is a complex environment. So that's the other one I would call out. There's nothing specific there that I would call out in terms of what we're seeing, but on the downside, that's the other one I would call out.

Well, thank you. Let's stick with you, Sean, for the next question as well. I'm looking for a quick answer here. How do we think about the impact of rising interest rates, both operationally and from a balance sheet slash leverage standpoint?

Important topic these days. The headline here is that we have a mix of fixed and floating debt. And then on our floating debt, which is our term loan B, we also have interest rate swaps that we layer in. And when you put all that together, we have a little over 50% of our debt that is fixed. And we have contracted swaps that kind of keep that relationship in place, at least for the next two years, roughly. And then we also have on the assets side, we have cash and we have marketable securities. And our treasury team looks to get the highest yield possible on that. So those are the two inputs as rates change. Every year in our 10K, we have to disclose what a hypothetical 100 basis point move in interest rates would be. And what we put in the last 10K is about $7 million increase if rates move by 100 basis points. But that doesn't factor in what would happen on the cash side. So the net impact would be a little bit less. So it's small relative to our balances, small relative to our cash flows. I think the other thing I'll just highlight that I mentioned in our slides is that in my slides, We don't have our term loan and high yield mature in fiscal 2033, and so we don't need to go to the market anytime soon other than if it was to our benefit to reprice or something like that.

Great. Thank you. One more question that we've got before we close things out, which is about the upload and print segment. So how is the health of upload and print relative to macro in Europe? What kind of growth rate should we expect in FY27?

All right. Let me take that. The European market overall is slow, and this allows us to strengthen our position and take share. We see many smaller competitors have flat or falling sales.