Séché Environnement S.A.

Ladies and gentlemen, good morning. I thank you for your participation in this presentation meeting of our annual results, 2025, in this format of telephone conference. It is Maxime Séché, the General Director, who will expose you to the remarkable effects of the exercise 2025. Maxime, I'm going to tell you, is a great athlete, but he doesn't succeed every day. That's why you see him today with his arm in the air, because of a not too serious injury, I assure you, which currently forces him to limit his movements. But let's not worry, Baptiste Janiot, he is in good shape, administrative and financial director, and will detail the results of the exercise. ...Manuel Andersen who receives your questions right now at the address displayed on your screen. We will reserve a moment at the end of this presentation to answer them. Another important point, I ask you to ask your questions only by e-mail to Manuel. Manuel will ask us your questions orally which will allow their simultaneous translation to the benefit of all our non-French speakers. A few words about the ongoing exercise and our perspectives. In 2025, the macroeconomic and geopolitical environment has become much more complex than expected in France and in the world. Séché Environnement has nevertheless pursued its growth strategy with industry and communities to support them in their challenges of ecological transition, decarbonisation, protection of the environment and biodiversity. Thus, the first semester was particularly dynamic, with commercial and operational performances in sensitive progress on most markets in France, as in the international market. In the international market, this dynamic is favorable to last all year round. In France, over the years, growth and profitability have been penalized by certain circular economy activities, such as energy valorization activities, which support the normalization of energy sales, and by certain activities of material valorization, such as the regeneration of solvents or chemical purification exposed to a more Atlantic European chemistry. For these reasons, these new environments do not reach the target of growth and results set for 2025. This disappointment in the eyes of our initial ambitions is the fruit of factors, for the most part, punctual or exogenous. It must not hide the industrial and commercial successes of the past year, nor the promising perspectives of our group, led by a long-term vision and a growth strategy that creates lasting value. In France, as an example, Our group has initiated the emblematic Val-aux-Loire project, which will make the energy valorization unit of Nantes Metropole an exemplary tool for the energy transition of the territories. On the markets closed to strong barriers at the entrance of the management of industrial waters, our group has gained the trust of large industrial clients to deliver industrial water recycling stations, high-tech equipment such as SORG. He has also provided mobile treatment units equipped with innovative technologies that allow, among other things, the elimination of recycled industrial wastewater. On the markets of the fight against accidental pollution, Séchiers Environnement has once again demonstrated its capacity to provide adapted and fast responses in case of environmental emergency, including in the context of exceptional flood accidents, such as in Rouen, which resulted in significant lithium pollution consecutive to a fire in an industrial site. Internationally, most of our subsidiaries have made a solid growth on well-oriented markets, In Europe, our Italian subsidiaries have undergone a dynamic exercise, illustrating the resilience of the industrial markets of this country. In Latin America, Seche Environnement has implemented contracts for global, multi-annual offers of significant size around multinational mining groups of the first rank, confirming our expertise in the problems of durable mines. In Australia, the group has strengthened its leadership in the activities of dangerous waste treatment or environmental emergency. Finally, in Asia, ECO has successfully responded to the major industrial challenge that was the implementation of its new carbon-fuel incinerator, a tool with a strong potential for growth and profitability for the coming years. In terms of financing, our Group has strengthened its position of issuer, sought by investors in sustainable finance. The very successful first Green Bond in March, with 1.8 billion of demand for 400 million proposed, justified an additional emission of 70 million in July. In September, our first green hybrid obligation of 300 million, very largely over-subscribed, with a net worth of 3 billion, did not deny the attractiveness of our group for the investors, seduced by the credibility of our sustainability framework, just as much as by the quality of our long-term financial policy. In this vein, it is interesting to note that this environment exceeded in 2025 the decarbonisation objectives set as an impact criterion for its mandatory emissions of 2021. These mandatory emissions have significantly strengthened our financial capacity to support our opportunistic acquisition strategy targeted at the heart of the consolidation market. Thus, in France, Sechu Environnement announced its intention to acquire the Flamme Group, the fourth market participant in the incineration of dangerous waste. In Italy, we have prepared the acquisition signed since the beginning of 2026 of Filippa, specialist in non-dangerous industrial waste management, which completes with the value add the dangerous waste activities of our group in this country. Finally, in Chile, we negotiated the acquisition, finalized in January 2026, of Hydronor, which is the number one in the market for dangerous waste, whose installations are harmoniously distributed throughout the Chilean territory, that is to say in the north, in the middle and in the south, strengthen our capacity to deploy our environmental solutions in the heart of the most industrial regions of this country. These acquisitions will contribute to the more sustained growth and improvement of the anticipated profitability in 2026. Our group has taken the measure of the challenges that await it in a macroeconomic and geopolitical context that remains difficult on an international level and uncertainties that affect some of our markets in France. Séché Environnement has the assets to do so. Séché Environnement specialises in market trends, the ecological transition, the protection of human health, the environment and biodiversity, in France, in Europe and around the world. Séché Environnement is an integrated group of services to the environment. It responds globally as a unique interlocutor to the problems of sustainability of economic, industrial and territorial actors, such as the reduction of their ecological footprint through the production of decarbonized resources, the recycling of their industrial waters or the resorption of their accidental pollution. This environment is positioned on regulated markets with strong barriers at the entrance, in France, in Europe, and now in most industrialized economies in the world. These markets are growing in volume and value, because these regulations are often carried out by public, international opinions and are increasingly restrictive for waste producers who must face more difficult access conditions to natural resources and imperatives for the preservation of ecosystems. Sechu Environnement is a family business with a patrimonial vision and strong values. It pursues a strategy of profitable and long-term growth in France and internationally in perfect alignment with our shareholders. Our commercial forces are mobilized for 2026 to deploy offers renewed in the direction of more dynamic and industrial clients, to find new synergies that will be implemented between businesses and subsidiaries, to make cost savings that will be realized on all our perimeter, and a more rigorous financial discipline than ever, which aims to maximize the generation of treasury to accelerate our debt relief. Believing in the right orientation of our activities and our results, and in the solidity of our financial situation, the Board of Directors proposed to the General Assembly shareholders the maintenance of the dividend at 1.20 euros. I will now pass the floor to Maxime Sechet, who will present to you in detail the strategic achievements of the 2025 exercise.

Your turn, Maxime. Thank you. Hello everyone. I am delighted to see you again for this presentation of the results. Next slide. So to put the current context in perspective, I would like to go back to our business model. As you know, we are positioned on regulated markets with strong entry barriers. And I would like to remind you that as a family business, we have a long-term vision, that is to say that we are pursuing a profitable and sustainable growth strategy. You know our jobs as actors of the ecological transition. These jobs position us on tendential growth markets, particularly those of the protection of human health, the environment and biodiversity. Next slide. But above all, we are a specialist in industrial markets and the most complex waste. In 2025, industrial customers represent 90% of our turnover against 88% in 2024, and dangerous waste 72% of the turnover against 69% in 2024. We have the authorizations to treat all types of waste and we can intervene on the entire value chain. This positioning is strengthened with targeted international development. First, thanks to the support of our existing clients, but also with external growth. The international represents 36% of the group's activity in 2025, against 32% in 2024. Next slide. The relevance of our positioning also appears in the alignment rate of our activities to the European green taxonomy, namely 69% in 2025. In 2025, we also achieved our objectives of reducing greenhouse gas emissions and increasing greenhouse gas avoided by our customers. Next slide. So, on this slide, we can see the history of our performance. So, it validates our long-term strategy as a family business. We have a growth model that is profitable, with an EBE in progress and a capacity to generate cash flow. And we execute this strategy with a careful financial policy, that is to say, an objective of leverage lower than three times the EBE. Next slide. As mentioned in the introduction, in 2025, we experienced a sustained growth in our activities, except those linked to the circular economy in France and Spain. Environmental services, which represent 48% of the turnover, are very bearable, with a growth of more than 10%. The pollution and environmental emergency markets have been very dynamic. Our subsidiaries, Séché Urgence Interventions in France and Spiltek in South Africa, have won large-scale contracts. In the management of industrial waters, the development of the subsidiary Séché Traitement des Eaux Industrielles is in line with the plans presented in 2023. STEI is now positioned on emerging subjects, such as the treatment of epiphysis. Dangerous management markets, which represent 24% of the turnover, have also seen a growth of more than 10%, with, in France, positive volume and price effects. Next slide. As for the circular economy, it is, as you know, activities of material and energy valorization. These activities represent 28% of the turnover. In 2025, we observed a decline in some of these activities. For example, in our material valorization activity, which attacks the great European donors, as well as the sectors of chemistry, pharmacy or energy for their dangerous waste, In 2025, there was a drop in the demand for the European chemical industry, which impacted our jobs in chemical purification and solvent regeneration. We lost 10 million euros in sales, which made us go from 60 million to 50 million euros in France and Spain. So we have put in place measures of redeployment of our offer and we should see the first positive effects of these measures in the second half of 2026. Next slide. Then, energy valuation. For memory, it is the production of steam by cogeneration, thanks to our tools for dangerous waste treatment. It is also the production of electricity by valorization of biogas produced on our ISDND and sold on the spot market. It is also the production of electricity and heat thanks to the units of energy valorization in DSP, in Public Service Delegation. So the slowing down of energy valuation activity is explained by exogenous factors, namely the price effect of electricity sold on spot markets and the indexing effects of steam sales contracts. Again, the decrease in energy sales has impacted our turnover to about 10 million euros. Next slide. but these factors did not affect our growth strategy on strategic markets. In Chile, we completed the closing of HydroNor on January 27th. So HydroNor is, as you know, the leader in the management of dangerous waste in Chile, with a turnover of 42 million euros, a market share of 35% and a capacity of 400,000 tons per year. So the company has a portfolio of more than 2,500 clients, mostly industrial, in the key sectors for us, which are mining, energy and chemistry. So HydroNord is three storage sites that are strategically distributed on Chilean territory. In the north, in Antofagasta, there is a site that is complementary to SAN, which is our existing subsidiary. In the center, in Pudahuel, near Santiago, Hydronor is the only actor benefiting from a treatment tool in the central region, which gives it a strong competitive position and an important market share on the largest market in China. The third site, it is in the south, in Copulemo, which allows Hydronor to ensure national coverage. So for information, we started the integration. So we noticed and we were able to see that the current management is of quality and we will merge the teams of Hydro Nord with those of our existing branch. So for this acquisition, our strategy is first to implement our group standards, but also to deploy services and circular economy activities through our new Green Dot branch, which is already active in this sector. Next slide. In Italy, we made the closing of the Philippa on February 27th. So, it's a non-dangerous industrial waste storage center in the north of the country, in Liguria. The company has an authorization to store a hundred categories of non-dangerous waste, including waste from chemical treatment, dust and soil depollution. So, the authorization allows us to treat about 100,000 tons per year for a turnover of 17 million euros. The context of the Italian market allows Filippa to benefit from a favorable price effect because the number of ISDNDs allowing to store solid industrial waste is decreasing and its ideal location in the heart of northern Italy allows it to capture the waste flows of the surrounding industries. There is a good commercial complementarity with our other installations in Italy. So the Filippa will allow us to extend our service offer to large industrial accounts and to strengthen our geographical mesh in northern Italy. We have also identified industrial synergies with optimizations on many waste flows. We can, for example, internalize the FURIA treatment residues, which were, until today, stored elsewhere in Northern Italy. And finally, a few words about the Flamme Group acquisition project in France. This acquisition was announced in June 2025, and it is subject to the consent of the competition authority. We hope to be able to make the closing before the summer. So, as a reminder, the FLAB group makes 40 million euros of turnover with 100 employees. It is the last independent actor in the incineration of dangerous waste in France. So, it is a group that exploits two incinerators of dangerous waste in northern France. It is a rare opportunity to acquire treatment capacities. and it is an opportunity that would position us as number 2 in France. There are strong complementarities with our activities. This acquisition would allow us to increase our treatment offer in Europe and to internalize the treatment of certain flows. Commercially, we will also be able to extend our service offer to large industrial accounts in the Hauts-de-France. On an industrial level, we will be able to optimize the waste mix and reduce treatment costs. Finally, we will come back in detail on these synergies once the agreement of the authority of the competition has been obtained.

Baptiste, I leave you the floor.

Thank you. Hello everyone. I will quickly describe the economic and financial performance of the year 2025 and of course on the perspectives of 2026. First of all, on the main figures, we have a turnover that is established at 1.152 billion euros, with a rise of 0.7% in constant changes and perimeters. A gross operating surplus established at 225.4 million euros, or 19.6% of the turnover, with a drop of 13%. A current operating result of 82.1 million euros. or 7.1% of the turnover, a drop of about 30%. A result from the group which was established at 21.5 million euros, or 2.77 euros per share. An operational cash flow which holds well, which was established at 114 million euros and an IFRS indebtment which was established at 548.8 million euros, so in a very strong decline, taking into account the generation of available cash flow and the hybrid title issuance issued in Q4 2025 for 300 million euros, which is treated as clean capital according to IFRS standards. a leverage that is very low, 2.3 times the operating excess before the acquisition in early 2026 of Hydronor and LaFilippa. When we start with the turnover, we have a published turnover of 1.253.5 billion, million, with a non-contributory turnover of 101.5 million euros, plus 21.5 million euros, with an increase in the investments of IFRIC 12. In practice, the construction of the Val-aux-Loire project, the DSP in Nantes, which starts these investments in IFRIC 12, will naturally tend to increase in 2026, then go down in 2027. A perimeter effect that is set at 37.1 million euros corresponding to the first semester of 2025 of ECO. A change effect of 3.7 million euros mainly linked to the appreciation of the euro against the Singapore dollar, which goes globally from 1.45 to 1.48 Singapore dollars for one euro in 2025. A contributory turnover rate outside the perimeter and outside the exchange rate, which was established at plus 8.2 million euros, as I indicated, plus 0.7% at exchange rate and constant perimeter. When we go to the next slide, we start with the geographical areas. First of all, we have an international part that is dynamic. The growth has been dynamic in 2025. Today, the international part represents 36%. of the turnover. Overall, we are seeing growth in all geographical zones. In the European part, outside of France, it is 2.9%, with a good overall orientation of the industrial markets in Italy, a little penalized by the jobs of purification in Spain. In South Africa, it is 9%, so a strong dynamic, especially in de-pollution and emergency interventions in South Africa. In Latin America, a very strong growth of 33.8%, as you mentioned, with the acceleration of multi-annual contracts, depollution and total waste management in Chile and Peru. In Asia, 2.5%, so a positive growth. It is a global shiver of echo in Singapore, while waiting for the rise in power in 2026. of the carbon-fuel incinerator that was put into operation in 2025. On the French part, Less than 2.8%. Globally, we will see it by activity. We have good activity on the service side and management of danger, which was resilient in 2025. But we have a strong underperformance of circular economy activities, with effects related to chemistry, about 8 million euros, effects on the units of energy valorization. with fortuitous stops that are significant in the second part of the year. When we look by trimester on the following slide, we have globally When we look at the bottom right, we have a very good progression of the international turnover throughout the year. And when we look at the top right, on the French part, we have a sub-performance of the French part with a fourth quarter which is weak compared to 2024 and the previous years. This gap is even more marked when we look at the gross surplus of exploitation. We will still note the good performance of France in the first half of 2025, which will constitute a base for the first half of 2026. When we look at activity on the next slide, we have first of all, on the service part, you see, we have a very good dynamic of service activity. Service activity is 48% of the turnover in 2025. This is 10% more growth. Concentrated, we see it on dangerous waste, with 7% more on France with activities of emergency intervention, global supply and dynamic depollution. And on the international level, 13%, mainly in Latin America, on depollution and in South Africa on emergency intervention. So a very dynamic service activity. When we look at the center, on the circular economy part, which represents 28% of the turnover, it is in strong retreats, both on dangerous waste and non-dangerous waste, 10% less in total. on France mainly, with energy effects for less than 10 million euros, unit effects of energy valuation for less than 14.4 million euros, purification on the chemical part, less than 8 million, and the land platform part, with spots that were very significant on the S2 2024, less than 4.5 million euros. Danger management, which represents 24% of the turnover, more or less stable, of course, with a global activity that was very dynamic in 2024 on the fourth quarter. When we look at the number one exploitation excess, we have a 7% drop, an evolution that is globally similar to what we have observed in terms of the turnover, with the international an excellent operating volume established at 70.4 million euros, or 16.9% of the turnover. We have 15.8 million euros that are linked to ECO, the first half of 2025, and then an organic evolution that is more or less flat, with overall a lower contribution of Spanish subsidiaries, commercial effects that are positive in Latin America, but which have been reduced by the implementation of Total Waste Management contracts and costs for the initiation of these contracts. Moreover, there is unfavourable arbitration in Peru on pollution. So, overall, the decrease in the excess volume of exploitation comes from the French part, with an excess volume of exploitation that was established at 155 million euros in a decrease of 31 million euros, in connection with the elements of variation in the turnover, conjoncture elements, significant exogenous events this year, in particular the decline of the circular economy, The fact that in the fourth quarter of 2024, we had benefited from an increase in the DSP of Senerval and this directly impacted the gross excess of France's exports to the extent of about 10 million euros. When we look at the usual decomposition of the gross excess of exploitation, we have another way of seeing it. We have volume effects that are significant, more than 21 million euros, with mainly service operations, emergency, depollution work, global supply. We have managed to maintain positive price effects. This is mainly in the management of the danger, it is in the dangerous waste, these are elements that are trends that we observed in the previous years and that continue in 2025. On the other hand, this is reduced by the price of energy, minus 10.6 million euros, variable charges, increased with the increase in under-treatment charges related to the increase in service activities, and in fixed charges, which are finally called fixed, while it reflects the evolution of the wage, plus 10 million euros on the French part, plus 5 million on the international, the 10 million in France is only 3 on the increases, the NAOs, the rest being linked to the depollution operations, which are very intensive in labor. So, they are placed in fixed charges. They could have been placed in charges that are potentially variable. And 4 million euros on maintenance and repairs. On the current operational result, we have a current operational result that has been established at 82 million euros, of which 52.2 million euros on France. This obviously comes from the evolution of the excellent operating budget for 30.9 million euros. A global improvement of 7 million euros. We had a revision at the end of 2024 of the plan of CENERVAL, which had given rise to an additional provision of 10 million euros. This was not produced in 2025, so it gives a bonus compared to the current operational results. On the other hand, on the other hand, we have more amortization on new tools, total waste management and purification. On the international part, we have about 30 million euros of ROC with 11.6 million euros of perimeter effect. We see the positive aspect of the cost and the relative aspect, both on the EBE margin and on the operational margin. and amortization grants of an increase of 5.3 million euros. We will note the beginning of the amortization of the new carbon-fuel incinerator for 2.2 million euros, and then the amortization of an incorporal asset. This is an important point since we will find it in the coming years. We have a client contract that is attached to this carbon-fuel incinerator. which has been valued at around 42 million euros, amortised over 40 years. This represents 1.9 million euros over 2025. This is a little less than 1.2 million euros in annual amortisation and 6 months of recovery over 2024. On the next slide, we will quickly go down the result count between the ROC and the net result. Between the ROC and the euro, we have nothing to report, we have a low amount this year. We have a financial result that goes from 35 to 42 million euros, obviously due to the rise in gross debt, which went from 1.19 billion to 1.25 billion. and a slight increase in the debt rate, which goes from 3.52% to 3.74%. On the tax on results, we have an effective tax rate that is in decline, which is established at 24.1% versus 32.5%, mainly linked to the integration of costs with an IS rate of 17%. I will come back if you have any questions about the tax on the result. We have a net result of the consolidated total which is established at 31.4 million, given the minorities, mainly on ECO. We have a net result by the group, which is established at 21.5 million euros. On investments, I will go quickly because we have investments that are mastered, which are established at 96.7 million euros online compared to what we have indicated. And on cash flow, we have operational cash flow available, which is established at 114 million euros, a cash conversion rate of 51%, so above 35% which was our target. We will note with interest the improvement of the need for a rolling stock, with a global drop in customer sales in France, a good management, obviously, of the recovery and the DSO, and then an increase in the invoice of 17 million euros in 2025, which is established in total at 55 million euros. On the next slide, you have the classic decomposition with, as you can see, an evolution of debt impacted by the operational cash flow available, the different elements and the hybrid title, as I indicated at the beginning. From a financial point of view, the point that is important is that the Group shows a strong liquidity situation with a liquidity available of 922.8 million euros with a solid balance sheet with a leverage of 2.3 times the operating excess. A debt maturity on the following slide, which is 3.6 years, you see it, given the liquidity, we did not fall significantly before 2028. 2028 is the issuance of 300 million of high yield SLB that had been issued in 2021. I propose to go directly to the 2026 objectives. So, overall, what is expected in 2026 is a global return to growth and above all an increase in operational profitability. On the activity side, we have a rather good international trend that should continue with good dynamics in Latin America, depollution contracts on the Chilean part that will continue. Total waste management contracts that will rise in power in Peru. We obviously have the integration of Hydro Nord in the full year. On la partie asiatique, on la montée en puissance de l'incinérateur de suites carbone, on s'attend plutôt à une situation en Europe qui se poursuit avec l'intégration en année pleine de la Filippa et la mise en place de synergies globales en Italie. Sur la partie française, plutôt prudent dans nos perspectives avec globalement on s'attend à une résilience des métiers de la gestion de la dangerosité qui devrait maintenir une croissance faible mais positive We do not have a particular view, as you can see, on the circular economy. And then we have, overall, on the service part, a pipe that lets us think that the level of service should be on a normative level. Attention on the S1 2025, as I told you earlier, The S1 2025 in France on the service part was strong and therefore will constitute a strong comparison base for the first semester of 2026. On the profitability part, we have set up a performance plan, Maxime told you, which should be globally the engine of the improvement of profitability. A plan of 7 million euros in the full year. with an improvement in performance, synergies mainly in Italy, Chile and especially on the French side. We will come back to this part if you have any questions. And of course, a financial policy that is strict with capexes of around 115 million euros, including the new perimeter, the Philippa, and Hydro-Nord. A pilot of the operational cash flow available with the maintenance of a EBO-CAPEX balance of over 130 million euros. In fact, an operational cash flow available of over 35% of the operating surplus. A BFR variation that continues to be rigorous as we have done it we demonstrated it to you in 2025, and then a financial leverage that returns to the target given all the acquisitions, that is to say less than 3 in June 30, 2027. On the next slide, So you see, it's illustrative of the generation of available cash flow and then the return of the leverage. Obviously, the leverage less than three times integrates the acquisition of Flamme, which will be realized when we have the authorizations. So in fact, without this acquisition, the leverage would be well below the end of the year 2026. On the next slide. So, in summary, on our perspectives for 2026, the objective of the contributory business figures will be between 1,230,000,000 and 1,260,000,000. This is composed of a global organic growth of plus 2, plus 3% on the historical perimeter for 31-12-2025, including eco. And then a contribution over a full year, the Philippa and Hydro Nord, especially in 2026. This is the aggregation of this. You see, we have not integrated into our guidance a flame assessment. The objective of the gross excess of exploitation is to target an EBE between 260 and 270 million euros. In the same way, on the historical perimeter, given the performance plan, we expect to a growth rate between 5% and 10%. And in the full year, the Philippa and Hydronor on 2026. There, too, there is no integration of Flamme in our perspectives that are communicated to you today. The objective of Levier, I repeat, is lower than 3% on June 30, 2027.

Thank you for listening and we are now at your disposal for your questions.

Yes, it's Manu. We already have a question from Mr. Gilles Chauffeaux from the company Lonely Invest. The first question concerns the acquisition of the Flame Group. Have you entered phase 2 regarding this procedure of the acquisition of the Flame Group, which would explain the non-conclusion at this stage? From memory, it is an aggregation of three companies, so is there a risk that this ends with a division of these three companies between you and, for example, Suez? Yes, in this hypothesis of synergies. The second question is related to the sensitivity of the group at the price of electricity, for which we are net sellers. What is the structure of electricity sales planned in 2026 for sales on the spot market and end-to-end sales? What are the hypotheses for 26 versus 25? Have you included in Guidance 26 the strong increase in electricity prices on the spot market since the start of the conflict in the Middle East? If not, can you give an idea of increasing sensitivity, for example, the additional potential EBITDA on a month if prices were maintained at this level?

Let's answer the questions.

First of all, where are we? on Flamme. So we are not at all in phase 2. Today, we are in the pre-notification phase with the competition authority, since the competition authority wanted to have clarifications on its analysis of relevant markets before an official notification. So we have always been in the pre-notification phase for a few months. So today we are not at phase 2 at all, which could lead to perimeter adjustments. So our vision on this point is, given the exchanges that are constructive with the authority of the competition, we hope to be able to notify quickly and then be able to have GANCO without perimeter adjustments. This is always our current central scenario, so we are not expecting phase 2. The second point to be noted is that the competition authority is asking questions on the market of dangerous waste incineration and therefore mainly on the incineration part, only on the dangerous waste incineration part as you have seen on the slide, including flame activities. So there is no idea of being able to ease, for example, the gap between the environment, the sanitation, would not solve the potential problems of competition. So we are still on a whole and without remedies asked by the competition authority at this stage. That's the first part.

The second part is about... Energy, electricity in particular, the group's sensitivity to electricity prices. It's about electricity sales. We're planning to have a six-month period between market spot and end-of-life sales.

So, you have a slide, I think, that could help you answer this question, since we have decomposed the different elements of energy sales, both between steam, electricity, UV and photovoltaic. So, what we can say about that is that There are different components of our results on energy sales. There is a part of steam that is based on long-term contracts with indices that are linked to energy indices. This is the vapor part that you can find, dangerous waste. There are delay effects that can occur. You have known that, we explained it to you, it is during the presentation of the results of 2023. You know the peak of energy. It was in the summer of 2022 during the Ukrainian crisis. Yet, you see on this slide, the peak of energy sales is 2023. So there are late effects that occur, that is to say, we calculate a formula when we sell steam and it applies to the following year. Today, the contracts are structured like this. the increase in components, whether it's gas, coal, electricity, the increase in these components, potentially, if they last, could have a positive impact from next year. So the impact on this part will potentially be in 2027. On the electricity part that you see on this slide, these are mainly spot sales. Today, there are no more sales in the long term. These are mainly spot sales. It is methane that is turbine and that is transformed into electricity. On the UVE part, these are prices that are determined in the context of public service delegations. According to different indicators, there is an interest that is strong, that is to say that it is translated by the turnover and not necessarily by the excellent amount of exploitation, since it is to the main benefit of the community. And then on the photovoltaic part, these are long-term contracts, so the evolution of the price of electricity or gas that we can observe today has little impact on these contracts.

Thank you. We also have a question from Arnaud Pallier from CIC. Can you make a detailed point on the UVs in France, their number, their contribution to the group's results, the impact of the damage generated by the bottles of nitrogen peroxide, their compensation method? the impact of municipal elections in the future? That's a first question. Second question... We'll do this one, if you don't mind. I'll memorize it.

So, obviously, you have all the details of the public service delegations, of the UVEs in the URD, on the tariff mode, on the tonnages, etc. We describe it in extremely detailed ways. Today, the public service delegations that have an impact on our accounts, I told you, it's Senerval, I'll come back to that point, It's Val-aux-Loire with an extension project. So the plant continues to run and then there is an extension project that will last for the next few years. It's an UVE in Montauban. There is an impact that exists on 2025 that is significant on the bottles of nitrogen peroxide, which, in general, due to the fact that they are not or are poorly sorted upstream, causes breaks, breaks, explosions in our incinerators. And so this has greatly contributed to the underperformance of our UVs in 2025, an element that increases at the end of 2025. Today, there is no compensation scheme that is globalized, stopped on the national level. So today, we are suffering these costs directly. Discussions are in progress with the collectives, because normally these bottles of nitrogen peroxide are dangerous waste and should not go through UVA and should be sorted in advance. And today this is poorly sorted. So it's not our responsibility, it's our analysis, it's the responsibility of the collectivities to find us with these bottles of nitrogen peroxide, which generate stoppages and breakages. So discussions are underway with the communities. We are demanding amounts that are quite significant, that are just the reflection of the losses that we have observed over 2025. In fact, by the beginning of the year of 2026, these stops or these lower performances and underperformances continue and persist. And so we hope that in 2026 a solution will be found either through a negotiation with the collectivities, or on a national level, since you have certainly seen it in the press, The subject is today on the public square, it is both a subject of public health, but it is also a subject of how we treat these waste, which in fact must not be found in household waste, but which must be found in a specific field to be considered and treated as dangerous waste. Next question.

Next question from Arnaud Pallier at the CIC. We will have a little more detail on the measures of operational performance and synergies. Are you planning to be able to release to the international the operating margins at the level of those obtained by the activities in France?

So on the... I'm going to take... Go ahead, sorry, Maxime, you wanted to take... Sorry, excuse me.

No, just a little word. On the performance plan, we launched a plan on several levels. First, we set up a cost reduction plan, so on trips, fee notes, function cars. A plan also on purchases. with the insurance post as a priority. So we will reduce the number of our suppliers and we will systematically put in competition, during the call for offer, the candidates for the answer for our needs. We also decided, and this was mentioned by Baptiste, to preventively freeze 20% of the CAPEX envelope planned for the 26th budget. So we have already put in place a certain number of measures in our performance plan and it should actually bring us back 7 million euros of ROC. I'll let you complete, Baptiste.

This is on the 7 million part. So it's a work in progress. But in fact, we will give you a point on the next publications on the evolution of these 7 million. It's followed in an hebdomadary way. We should have the first effects from the second quarter. So we will give you a point on the semester. But there is a good rise in power, in any case, of this performance plan on the synergy part. The bulk of the 8 million is obviously on the French part. So we will have to wait to have the authorization to realize the acquisition of Flamme and therefore the authorization of the competition authorities. Then, as Maxime said, we have a part of Renault where we will merge the teams and then reduce cost synergies. We will put it in place very quickly. There are about 2 million euros in the full year. The Italian part, 1 million euros, we will put it in place very quickly since we have completed the closing. We will actually the affiliate LaFilippa to our holding that we already have in Italy since we have two significant activities, MECOMER on the dangerous waste platform and FURIA on the valorization of dangerous and non-dangerous industrial waste. There are two people, sorry, I see that you raise your hand. Yes, we may end with a hand. So, do we give them the word or do I tell them to send you an email? It's up to you. If you have any questions, can you send the email to manuel-andersen?

m.andersen.com Last question from Arnaud, we may have already answered it a little bit. The strong increase in energy prices with the Iranian conflict, can it quickly bring you back to your objectives, 26 to the increase?

So, as I indicated, I think there are two elements. First of all, where your reasoning is good, it is that, globally, we are net energy sellers. So, globally, when there is a rise in energy prices, On peut se dire globalement qu'à moyen terme, c'est positif, avec des effets retards, comme je vous l'indiquais, c'est-à-dire que globalement, cette hausse-là, si elle est durable et si elle n'est pas trop importante, ça devrait être positif sur 2027, puisqu'on a couvert nos achats d'énergie sur une partie significative. Je peux revenir là-dessus si vous le souhaitez. Et donc, de fait, les ventes d'énergie devraient être positives sur 2027. However, on 2026, in fact, the formulas are fixed, except for a few spot elements that you see are marginal. We should not have very significant elements. You have to see that there is a moment when the prices of energy are rising very significantly. We observed this during the Ukrainian party. This has an impact on the macroeconomy and on the industrial production and the activity of our customers. And that's negative. So, be careful about this point, that is to say that we do not have an ideal formula, but an increase, as we can see, in energy, it can be positive, but only until it has an impact on the activity of our customers. I just come back to this point, because I think we need to help you to quantify. You see, we put the slide there on energy. The interest is to see that, it was said by Maxime, but between the high point in 2023 and the low point that we are experiencing today, the delta has about 16 million euros of price impact on our turnover and therefore on our operating surplus. This is how it should be seen, knowing that obviously in 2023 it was linked to the 2022 post-crisis Ukrainian price.

Thank you. We have two questions from Alain Houbois from the company Covea Finance. First question, on the objective of levying less than 3% in June 2027, does it include the acquisition debt of the Flamme Group? Does it include the GDP of this group? And if so, for what amount? Second question, what do you think about the reorientation of the activity and the purification in relation to the European chemical clientele? Which industries are aimed at replacing the chemical clientele, whose perspectives appear even less dynamic in 2026, and where questions arise about the maintenance of the capacities of this industry in Europe?

On the first part, yes, obviously, it integrates the acquisition of Flamme with the B.E. of Flamme, roughly about 20 million euros on the entire perimeter of Flamme. On the second part, how do we replace the traditional chemistry part? It is mainly towards a pharmaceutical clientele, on which we have already started, it is already a clientele that we know, on which today there is a global increase in activity in Europe. We position ourselves as being able to treat molecules that are used by large clients, large pharmacies. or the European pharmaceutical clientele in 2026. It takes time. Why? Because first of all, the quality is not the same. And secondly, because the new productions that are put in place require approval And so that's why globally we expect effects that will start to be positive in 2026. It's a reorientation of our offer, but on which there is less competition, since quality is much more important.

Well, we now have questions from Mr. Nicolas Royaux, from the Bourse company, Ports-en-Parc. First question, can you make a specific point on STI? Has the cleaning of contracts been completed? Has this branch found growth? What is its normative margin level? Second question, can you detail the measurements of the chemical purification activity that I think we just talked about? What is the normative rate with the new perimeter? The normative rate with the new perimeter, that's the last question.

On STI, yes. It was two years of very intense work on the end of the contract, which was my core business, and then the effective organization of all the executives and expertise So today we are winning contracts and we are starting to make money on this part. The normative margin is between 15 and 20% of the portfolio. Today, yes, we are satisfied with the evolution of STI. On the PURIF part, yes, we are almost there. Today, given the rate, we have a rate that is more or less normative. There may still be some small optimizations in different non-recognized assets in Latin America, which we should benefit from in the coming years, given the overall aggregation of the structures we have. a bit of inefficiency on the part of South Africa, but we are very close to the normative rate. After, potentially, with the rise in eco-power, as I was saying, the rate being at 17%, I think there is perhaps one point to win, but we are not very far.

Thank you. We now have questions from Jean-François Grandjon, from the stock market company Odo BHF. First question, to explain the decline of the EBE in 2025, are there costs of transport, logistics, etc.? Second question, guidance is on fire, has it translated a stronger uncertainty on the closing? Third question, do you consider a redress of the DEA margin on the French perimeter, lower than 20% for S2 2025? Third question, do you consider a redress of the DEA margin for the French perimeter, which he calculated, lower than 20% for S2 2025? Quid des hausses de frais financiers 2026 avec les nouvelles acquisitions? And last question about the IS rate in 2026, but I think we just answered it.

The financial costs of 2026, I start by the end, sorry, I start by the easy ones. The financial costs of 2026, that, the emissions, you have seen, the emissions, they have been realized, so to realize the acquisitions, so there is very little need for refinancing in 2026, so in fact, As soon as you take in full year the financial costs of 2026, since we issued the green bond in April and hit the 70 million, abounded the 70 million in July, if you put it in full year, you know the financial costs, there is no anticipation of new needs for 2026. On the flame guidance, no. We haven't taken any guidance with flames because we don't know from when we will be able to consolidate flames, quite simply. So we don't have any more... on this acquisition, I told you earlier, but we don't know from when we will consolidate it, so we will adjust these guidance on the flame base when we will know when we will have realized the closing. I think we have to come back to the second quarter and the end of the year, especially the fourth quarter of 2025, We have a conjunction of several phenomena that are not all very clear. Nevertheless, it is a point that is important. We have a configuration of the fourth quarter that is very atypical. We have, compared to the previous years, we have always had a peak of activity in the previous years, the fourth quarter. compared to the third quarter. Those who have been following us for a long time, you know, we usually have a dynamic fourth quarter, which has not been the case this year. We have not had external activity on depollution spots, on emergency intervention. We have had overall a low activity on the southern part of Africa. We have had overall a political instability in France that has depended on the activities of our industrial clients and our collectivities. So, overall, We have had less activity in the fourth quarter. We have also, as I told you, we have benefited historically in the context of our public service delegations, which rather arrived at the end of the year, it was the case last year, we had the coming of the 13th on Senerval. which came to strengthen the gross operating income of approximately 10 million euros. This year, we did not benefit from the future. Maybe it's the municipal elections, maybe it's the result of negotiations. Nevertheless, on the fourth quarter of 2025, there was no positive effect related to our future. Globally, on the industrial clientele, there were potentially depollution contracts that were very significant, which were pushed back. Globally, contracts with large miners that we had positioned in the fourth quarter which have been pushed back by customers. So, you know, we are in debt with the choice of customers. And that, overall, I think, is the lack of visibility to be able to invest and to be able to have activity in France. We have noted, on the international part, bad arbitration. I told you about the part of Peru, that is to say that we had made a deposit for a client, the client did not accept to pay us, we went to an arbitration, this arbitration cost us a little more than 2.5 million euros, so that's a punctual effect on the fourth quarter, and indeed on the incineration part, We can say that it is the lack of avenants, we can say that it is the bottles of nitrogen peroxide, or we can say that it is the subject of refractors. Nevertheless, we had big repairs for 4.5 million euros which impacted the last quarter of 2025 that we did not have in the fourth quarter of 2024. On the EBE March in France, once again, we designed a performance plan so that, overall, the second semester in France is improved thanks to this performance plan. So, yes, our objective is to make an EBE margin of more than 20%, since France must make an EBE margin of more than 20%. This is very clear. The performance plan should help to reach this target.

Thank you. So, we have a question from Mr. Hervé Guay from Generali, which I merge with that of Delphine Chauvin from Odo. On the subject of lending, do you consider a stability of the S&P and Fitch ratings in the short term, because the debt ratio in 2026 could exceed their high limits for the current rating? This is a little bit what David Chauvin from Odo also asks.

So, we, you know, We are piloting our financial policy in a very strict way, as you can see here, and our objective is to get back to the basics on June 30, 2027. So, as you can see, given our objective, we have an objective to get back to ratios that are quite consistent with our rating on June 30, 2027. That's why we also set up a plan to pilot our financial leverage performance plan on the EBE part, debt plan up to 100 million euros by June 30, 2027. This is how we designed our return to a very solid financial structure on June 30, 2027. So, in fact, if we achieve the acquisition of Flamme in the coming months, we will be more on the upper part of the levers that are targets for us and that are above the targets of our notations for S&P and for Fitch. So the subject is, are we going to to be impacted by S&P and by Fitch, that will be their decision in the context of their investment committee. Our work is to convince, and to convince you, and to convince the rating agencies that Our return plan to the financial leverage less than 3 is credible and our work is to implement it. That's why Maxime talked to you about the performance plan. That's why we have a synergy plan. This will naturally increase the gross excess of exploitation and lower the debt with the indebtedness of 100 million euros. That's our work. Then, will it go through an action of the rating agencies, I don't know how to tell you that.

Very well, I think we should be very clear, because I have no more questions. Are there any complaints?

Very well.

On voulait vous remercier pour votre écoute attentive et puis pour vos questions. Évidemment, on se tient à votre disposition si vous avez d'autres questions. Et on vous souhaite une bonne journée. Merci à toutes et à tous.