CANAL+ S.A

Good morning, and thank you for joining us. I am Maxime Sadar, CEO of Canal+. Welcome to the presentation of our 2025 results and strategic update. I am pleased to be joined today by Amandine Ferré, CFO of Canal+, David Mignot, CEO of Canal+, Africa, Christophe Pinard-Legri, CEO of Canal+, France, and Anna Marsh, Chief Content Officer of Canal+, and CEO of Studio Canal. Following the retirement of Jacques Dupuis, who has had a very significant contribution to Canal+, I am pleased to announce that Christophe and David will be joining Amandine, Anna and myself on the management board. I'm also pleased to announce that, subject to staff representative approval, Christophe Pinaludry will be leading Europe going forward. The achievements of 2025, which we will take you through shortly, are just a small part of what this team has delivered as what we have really done together over the last 10 years is turn around Canal+. This is the same team who will now turn around MultiChoice, together with the support from former leaders at MultiChoice who know their market. Before we start, I want to highlight that we have taken your feedback at heart and strive to give more insight on the performance of our activities. In this respect, we will first cover the historical perimeter of Canal+, with 2025 numbers and a 2026 guidance. In short, 2025 was a very successful first year for Canal+, as a listed company. We delivered on all our objectives and we expect to keep doing that in 2026. We will then focus on multi-choice and go into the detail required to give you a clear picture of where the business stands now and what to expect in 2026. From there, we'll provide you with a consolidated view of the combined group for 25 and 26. And given all the moving parts for this year and probably next year, we have also decided to share for the first time a medium-term outlook for our key financial indicators. Then each of our management board members will walk you through our medium-term strategic priorities. And we will end the session with any questions you may have. Let's kick off with the Canal+, historical perimeter. Before we go into our 2025 numbers, I wanted to start with a reminder about what has been achieved by the team at Canal+. Just one illustration of our progress. We have consistently grown adjusted EBIT with a CAGR of close to 6% over the past five years. We are satisfied with our year 2025, which landed above our guidance and continues this positive trend. 2025 was both a successful and transformational year for Canal+, as we delivered all of our key objectives. We were very pleased to resolve the wrong-running tax disputes in France and to have clarity for the future. Amandine will provide more detail on that in a moment. We continued to improve the profitability of the business in Europe, where there has been a real turnaround, including a 15% increase in adjusted EBIT this year. The improvement has been particularly significant in France, which Christophe will cover in a few minutes. As you know, one area we are very focused on is cash generation. As announced, we had an exceptionally high year in 2025. In 2025, we were also able to undertake significant debt refinancing. It went extremely well, and we managed to lower our overall cost of funding. Again, Amandine will zoom in on that topic in a few minutes. All in all, and most importantly, in what was our first year as a listed business, we achieved or exceeded all of our financial guidance. Focusing on our headline numbers, as I said, we achieved our guidance and actually exceeded it on adjusted EBIT, CFFO, and free cash flow. At the time we provided our 25 guidance, we were still operating in Vietnam and we had not acquired multi-choice. So we have provided numbers on that basis here. for comparison to guidance. On adjusted EBIT, we guided 515 million euros. We reached 527 million including Vietnam and 542 million excluding Vietnam. On CFFO, we expected more than 500 million and we achieved 587 million including Vietnam and 606 excluding Vietnam. On free cash flow, we guided more than 370 million and achieved 428 with Vietnam and 448 million without it. We start the year in a strong position. Now over to Amandine for more detail on our results.

Thank you, Maxime. Now focusing on the Canal Plus historical perimeter, excluding multi-choice, and as Maxime explained, also excluding Vietnam. Starting with our customer base, in 2025, it increased by over 2 million versus 2024, with a peak of 28 million at the end of the year, thanks to the AFCON, which has come off a bit since then. One thing I'm very pleased about is the more than 1 million increase in our retail subscriber, which is, as you know, our main focus. I'm now going to go deeper into each of our segments, starting with Europe. As already mentioned by Maxime, Europe saw a significant increase in profitability, plus one percentage point versus 2024. This increase in profitability was driven both by top line increase with 1.1% in organic revenues and cost reduction. Improving profitability will remain the critical focus for the coming years, a point Christophe will cover in more detail. On Africa and Asia, our end-of-year subscriber base increased by 1 million in 2025 with a one-off effect of AFCON. This increase in subscriber base was a key driver of our top-line growth with over 3% increase in revenues. As you can see, we have managed to maintain a very high level of profitability with a margining rate of over 20% despite increasing in content cost and investment in subscriber acquisition. Of course, this does not include multi-choice that will be covered separately later. Finally, turning to content production and distribution. Revenues were down slightly year on year, mainly due to StudioKanal's exceptional slate in 2024 with Paddington and Back to Black. What is really important to note here is the ability of StudioKanal to deliver its bottom line, even when the slate is not exceptional. Later, Anna will go in more detail, not only on our content slate and plans for 2026 and beyond, which are very exciting, but also on how we are leveraging our competitive advantage on content cost. It's also worth mentioning the improvement economics of Dailymotion, with revenues up by more than 20%. Putting it all together, we had 1% organic revenue growth, excluding discontinuated operation. We managed to decrease content cost by 6%, while other costs increased due to one-off effect linked to the OCS acquisition in 2024. This, together with our profitability initiative, led to a 22 million increase in adjusted EBIT before exceptional item, a 4.2% increase and way above our guidance. Overall, adjusted EBIT margin before exceptional item reached 8.7%, a significant increase versus 2024, and putting us in a strong position to kick off 2026. One of the highlights of 2025 was the resolution of our TST and VAT tax institute in France. We are now completely clear on our tax regime moving forward and are very pleased to now leave this issue behind us. This settlement translates into high exceptional costs in 2025 that should be paid in 2026 and 2027 with final schedule yet to be determined. The settlement of these tax issues in France had a significant exceptional impact on adjusted EBIT with €346 million booked in 2025. The main part of this exceptional item comes from VAT settlement amounting to €363 million that were already partially provisioned. The rest is mostly the TST settlement and some fees related to the multi-choice acquisition. When you look at our earnings in 2025, the positive here is that we were up nearly 30% before tax. This is largely a result of our improved cost of financing and the result of our tax group consolidation in France. On cash generation, as Maxime already said, 2025 was an outstanding year. Starting from 542 million euros adjusted EBIT, we achieved an exceptional 119% cash conversion rate to reach 648 million euros CFFO before exceptional, and 606 million euros after exceptional, that include the impact of our redundancy plan that we announced last year and some fees related to the multi-choice acquisition. After taxed interest and overfinancial, including forex, we finished 2025 with close to 450 million euros in free cash flow. Finally, I wanted to give you clarity on what we expect next year on the historical Canal Plus perimeter. As a reminder, this is not our group guidance as it does not include multi-choice. And again, this does not include Vietnam that was discontinued. On revenues, we expect to see moderate growth, organic, following a similar trend as in 2025. On adjusted EBIT, we expect an increase from 542 to 565 billion euro, driven mainly by a continued improvement of our adjusted EBITDA margin. Our margin went from 7.8% in 2022 to 8.7% in 2025 and we expect to reach more than 9% in 2026. We will generate more than 500 million euros of CFFO before the payment of the VAT settlement and over restructuring cost. This number is way above our historical figures. We are providing figures before the payment of the VAT settlement as the payment schedule is not finalized yet. Similarly, On free cash flow before VAT and restructuring, we are targeting more than 300 million euros, which is again much higher than our historical performance. On both metrics, these figures should be understood as floors that we intend to exceed.

Now over to multi-choice. Our accounts will include figures from multi-choice starting on September 20th, so three months and 11 days. Here, we are providing pro forma 12-month figures from multi-choice for you to understand the new group starting from now. These figures are unaudited. On MultiChoice, I'm going to start by providing you with some context so you can fully understand the current dynamics. MultiChoice experienced great success in its more than 30 year history with very impressive growth from 2010 to 2023. It is only in the last few years that it has faced challenges and a decreasing subscriber base. Indeed, starting in 2023, Multi-choice entered into a negative cycle due to the combined effect of macroeconomic factors, such as currency devaluation in Nigeria and power cuts, a difficult transition to OTT with the expensive failure of Showmax, and finally strong inflation across most cost items, especially on content. All of these factors resulted in a strong decrease in profitability that multi-choice addressed through short-term measures, in particular reduction in subscriber acquisition subsidies, and price increases, which in turn had a strongly negative impact on the subscriber base, worsening the original profitability issues. The result of this cycle started in 2023, so it is important to remember that this is a relatively recent trend, with a steady decline in subscriber numbers, in revenues, and in trading profits. The latter has come up by 150 million euros per year for the last two years, from best-in-class profitability of around 500 million euros to around 200 million euros by March 2025.