Bouygues

Hello and welcome to the group BUIG Q1 2026 results call. For the first part of the conference call, you will be in listen-only mode. During the questions and answers session, you are able to ask questions by dialing pound key 5 on your telephone keypad. Now I will hand the conference over to Frédéric Delaveau, Head of Investor Relations. Please go ahead.

Thank you very much. Good morning, everyone, and thank you for joining us for the presentation of BUIG's First quarter 2026 results. This presentation will be led by Stéphane Stoll, Senior Vice President and CFO of Bouygues Group. Stéphane Stoll is accompanied by Christian Lecoq, CFO of Bouygues Telecom. Following their presentation, they will be answering your questions. Stéphane, I now give you the floor.

Thank you, Frédérique. Good morning, everyone, and thank you for attending. Before listing our highlights, I would like to point out that obviously the global macroeconomic and geopolitical environment has remained during this first quarter very uncertain and very volatile. And as always, Q1 results in our group are not indicative of first half of the year and fiscal year results due to usual seasonality, especially at Colas. That being said, I'm pleased to say that Q1 group results were quite solid. Therefore, we are in a position to confirm the group outlook for 2026. Entering details, group sales were down 3.2% year-on-year, half of the decrease being attributed to negative change effects at constant exchange rates. Group sales were only down 1.7% year-on-year. Group COPPA was very resilient in Q1 2026, slightly up year on year, but I remind you that group Q1 COPPA is not representative of annual results. Then we also recorded a usual negative net result attributable to the group, nevertheless strongly improving versus Q1 2025. It was impacted for the second year in a row by the exceptional income tax surcharge for large companies in France. At end March 2026, our net debt significantly improved versus end March 2025, in keeping with the trend observed at the end of 2025. Last, I have two comments on our business segment. COPPA and margin from activities continued to improve strongly at ECOS, reaching respectively 205 million euros, up 28 million euros year-on-year, and achieving 4.8% margin and improvement of 0.9 points year-on-year. These increases continue to demonstrate successful execution of the strategic performance plan. Sales, for their part, had a soft start to the year. And in our construction division, the backlog at end of March 2026 was at a high level of 32.2 billion euros, offering visibility on future activities. Let's now have a look at our key figures on slide 5, and let me remind you once again that every year, mainly due to the seasonal nature of COLAS activities, Q1 results are not indicative of half-year and full-year results. That said, group sales stood at 12.2 billion euros down 3.2 billion euros year-on-year. This decrease was explained, as I already mentioned, for half of it by negative change effects weighing for almost 200 million euros and for half of it by a decrease in activity at Equance and at a lesser extent at TF1 and Bouygues Immobilier levels. Organically speaking, sales in the construction division were stable year on year and slightly up at Bouygues Télécom, which is good news. Like for like and at constant exchange rate, group sales decreased by 1.6% only. In the first quarter of 2026, the group COPPA increased by 8 million euros compared to the first quarter of 2025 and reached 77 million euros. This increase was mainly led by Equance, while TF1 and Britelecom were down as expected. The net result attributed to the group was minus 94 million euros, It improved by 62 million euros year on year. I recall that for the second year in a row. It was impacted by the exceptional income tax surcharge for large companies in France, weighing for minus 25 million euros during this first quarter. Last, net debt was 5.1 billion euros, an improvement of more than 2 billion euros year on year. This is a very good performance. Net debt at end of March was higher than at end of December of the previous year, as always due to the seasonality of our activities. I will provide you with more details about these figures later during this course. Let's now turn to the review of our operations of our construction divisions on slide 8. And let's begin, if you please, with the backlog in the construction division. As I mentioned during the introduction of this call, the backlog at end of March 2026 remained at a very high level of 32.2 billion euros, providing visibility on future activities. Overall, the backlog was down 6% year-on-year, but only 3% like-for-like and at constant exchange rates. Taking a step back over a five-year period, the backlog level at end of March 2026 was up 16%, compared to end of March 2022, with all geographic areas improving over the period. Compared to last year, you see that the backlog was globally stable in France, which is very good news, and down in Europe and internationally. This is not a surprise. It is important to recall that Wood Construction's backlog had reached its record high level at end of March 2025, Driven by Civil Works, I remind you that we took a more than 2 billion euro order intake in end of 2024 due to the project of Torrance with Darlington in Adelaide in Australia. And to a lesser extent by international building with some very significant contract notably awarded in H2 2024 as I mentioned. Let's look into details on slide 9 and start with Collas whose backlog reached 14.3 billion euros down 5% year-on-year and only 1% like-for-like and at constant exchange rates. In Rhodes, the backlog was down 7% and even a bit more in France as it is typically the case in an election period, local election period, like-for-like and at constant exchange rates. The backlog in roads was down 3% only. In rail, the backlog was almost stable year on year and up 2% like for like and at constant exchange rate. At brick construction, the backlog stood at 17.2 billion euros, down 6% year on year and only 3% like for like and at constant exchange rate. In building, the French backlog was up 9% and the international backlog was up 6%. On civil works, as you know, the award of very large contracts mechanically rates volatility in order intake in the backlog. That's normal in our business. And as I already mentioned, the basis of comparison with end of March 2025 was very high, due in particular to the Torrance to Darlington contract. So we are not worried at all about boot construction activity this year. as 2026 activities coverage remains in line with 2025. And I please refer to also the appendix detailing this backlog and the way it is spread over time in the coming year. Finally, at Bouygues Immobilier, the backlog was at 0.7 billion euros at the end of March 2026, down 21% year-on-year, 15% like-for-like and at a constant exchange rate, considering also the disposal of activities in Poland in July 2025. As you know, with the Immobiliers' Backlog is what we are used to call a secured backlog, meaning it includes only reservations when notarized, which is a bit different from what the market tends to communicate. So cutoff effects in our own accounting may have some impact. That was certainly the case in the first quarter. The share of backlog at end of March 2026 to be executed by the end of the year remains at a high level, providing visibility on future activity. Next slide, let's talk about order intake. As you know, order intake is subject to significant variances in rail at Colas and in civil works at Wood Construction due to the timing of large project awards. As such, quarterly comparisons do not really make sense. In June 1, 2026, order intake at Colas stood at 2.8 billion euros. Order intake in roads was down year on year in France. This decline was expected. given the run-up to the March 2026 local elections. Internationally, the decrease reflects a very strong comparison basis, notably in Morocco and Finland, where COLAS recorded last year important contracts. Let's notice the positive start of the year in the US. where COLAS was notably awarded, beginning of March, a major contract for the construction of additional lanes on the Interstate 10 highway in California, a contract worth approximately 260 million euros. As planned, there was no significant contract in rail awarded in Q1 2026, I remind you that Q1 2025 was very strong and had benefited from two very large contracts, one in the UK and the other in Morocco, representing around 640 million euros of order intake. At reconstruction, the order intake in Q1 2026 stood at 2.2 billion euros. This amount was largely driven by the normal course of business, which means for reconstruction, contracts worth less than 100 million euros This part of the business remained stable year on year at a high level and then counted for 74% of total order intake for the quarter. Even though the Q1 2025 basis of comparison was high, new major contracts were awarded in Q1. For example, a contract to design and build the Somme Canal aqueduct. an iconic structure on the future Seine-Nord Europe canal which will link Europe's major river basins worth approximately 260 million euros. We also recorded a new series of work orders in Sideswell nuclear power plant representing around 150 million euros and also a contract for new urban data center in Australia representing around 130 million euros. And you also probably read this morning that the Fair Honor Consortium, comprising notably Bouygues Travaux Publics for 41.5% and Colas High for 11.5%, has been selected by the Swedish Transport Administration to carry out a significant contract for the East Link project. This contract covers the construction of approximately 36 kilometers of railway line, including major earthworks and the constructions of 28 bridges and three viaducts, one of which is a major structure spanning 1.4 kilometers. At the end of March, the order for the first phase was played for early works for 50 million euros, but the total execution phase, which could get underway early 2025, eight, sorry, is estimated to be worth 1.2 billion euros. This is good news for future activity. At Brigue Immobilier, residential reservations in Q1 stood at 0.3 billion euros, which is a strong level. Despite the context of municipal elections, land-back indicators were also strongly up year-on-year, and residential unit reservations in France improved year-on-year. Let's now have a look at SAVE on slide 11. I will start by saying that, like every year, due to seasonality, as already mentioned, the construction division recorded results which are not indicative of the first half and the full year results due to collapse. That being said, sales were stable, like for like, and at constant rich exchange rates, with brick construction continued dynamic offsetting anticipated soft start at collapse and brick immobility. Looking into details, first sales at Colas were down 3% like for light and a concentration rate of 2.6 billion euros. Q1 negative impact for exchange rate was 50 million euros. As published, sales were driven by rail, up 3%, while road was down 6% with France, down 4% in relation with local election, and international down 8%, penalized notably by adverse weather conditions in Morocco with very heavy rain in the first quarter and Central Europe with a very cold winter and some negative exchange rates. Second, wood construction sales were up 5% like for like and a concentration rate at 2.6 billion euros despite Q1 negative impact from exchange rates As published, sales were driven by France building activities at 10% and civil works at 16%, while international building was down 19% due to the end of important works, notably in Morocco and Australia. Last, a book immobilier. Sales had a soft start and were down 6% like for light. We do not expect this to be a representative of expected annual trends. Next slide. Current operating results from activities of the construction was minus €212 million, improving €28 million year-on-year, thanks to a lower seasonal loss at Colas and a better result at boot construction. Copa margin at boot construction reached 3.1%. record high since Q1 2018 and last COPAT Bougie Mobilier was penalized mainly by a low activity in this first quarter. Let's now please turn to the review of operation for Equance on slide 14. At end of March 2026 Equance backlog stood at 26.1 billion euros, a solid level, even if down 1% year-on-year as published, but up 1% year-on-year, like for like, and at constant exchange rates. The order intake of the first three months of 2026 was robust, and so that 5 billion euros, slightly down year-on-year, with still a gradual and continuous improvement in the order intake margin. To be noted, New contracts were awarded in data centers and gigafactories in the US and in Europe in Q1. Some additional contracts are expected in the coming weeks and months. Coming back to the Q1 figures, equance sales were down 6% year-on-year in Q1 due to three factors, essentially. The continued selective approach to contracts and business strategy. Second, the soft start to the year in some niche markets and geographies. And last, around 80 million euros of negative impact from exchange rate. In North America, any growth in sales was totally offset by negative exchange rate effects. These Q1 figures do not affect our outlook for the year. Regarding profitability, Equor's contribution to the Group Scopa represented 205 million euros with a 4.8% margin from activities, up 0.9 points year-on-year, highlighting the continued successful execution of the strategic plan. Last, Equor secured, during this first quarter, two bought-on acquisitions in Italy and in Singapore, both specializing in cleanroom activities, they represent an annual revenue of around 40 million euros. To end with Equance on slide 15, let me just add that Equance continues to roll out its strategic plan and confirm it is targeting for 2026 stable sales versus 2025 as constant exchange rates, a margin from activities of 5%, a year ahead of the target set at the 2023 capital market day, And third, a cash conversion rate before working capital requirement of between 80 and 100%. I now give the floor to Christian Lecoq for a detailed presentation of BookTelecom's Key1 key figures.

Thank you, Stéphane, and good morning, everyone. Turning to slide 17, let's start with a few comments on BookTelecom's solid commercial performance in six in both volume and value. This performance was driven by our strategy focused on customer loyalty and quality, which delivers lower churn. As you can see from the slide, we had a total of 5.5 million fixed customers at end March, 2026. This represents an increase of 47,000 customers in Q1. FTTH continued to expand strongholds with 89,000 new customers during the first quarter. With a total of 4.8 million customers, they represented 87% of our fixed customer base, up from 83% one year ago. This is the result of a wider FTTH footprint, combined with the excellent quality of our network and services. TIX and BPU continued to grow up to 0.3 euros year-on-year, at 33.5 33.5 euros per client per month. Commercial performance in mobile was also robust, as you can see on slide 7-18. Even in a mature market, we continue to observe a sustained positive impact of bid on both convergence and churn reduction. At end-March 2026, both telecoms had 80.7 billion mobile client customers, excluding M2M, thanks to 91,000 new customers in Q1. Mobile BPU stood at 16.9 euros per client per month during the first quarter, in a market where acquisition prices for new customers remained low, especially in the low-end things. Let's have a look at the key figures on slide 19 which are in line with our expected annual trajectory. First, sales built to customers were stable year-on-year as growth in fixed offset the decline in mobile. Total sales were up 2% year-on-year, driven by 9% growth in other sales. EBITDA after leases was stable year-on-year at €415 million thanks to tight cost control. The current operating conflict from activities stood at 82 million euros, down 19 million euros year-on-year as expected. This reflects the continued increase in DNA related to the highest level of capex over the last years. Last, gross capex was 342 million euros in Q1 2026. 52 million euros lower than in Q1 2025 and in line with our annual expectations. Moving to style 20, Booktelecom's 2026 targets are confirmed. First, self-built to customers and EBITDA after release close to the 2025 levels. These figures will show model growth versus 2023, excluding Laplace Telecom. Second, both capital expenditures close to 1.3 billion euros, excluding frequencies, confirming a decline after the capex peak of third over the last five years. And finally, free cash flow before working capital requirements of around 600 million euros, excluding the impact of LaPostelecom and before the impact of the e-contact surcharge for large companies in France. including these elements, it will be around 500 million euros. And now, Stéphane, I'm giving you back the floor.

Thank you, Christian. Turning to slide 22, let's briefly talk about TF1's results, which were already released and commented on the 30th of April last week. First, the TF1 group maintained its audience leadership in the first quarter of 2026, both among women under 50 who are purchasing decision makers and among individuals aged 25 to 49, which are their strategic targets. The average monthly streamers on the digital platform TF1 Plus continued also to increase. At 41 million streamers in Q1 2026 versus 35 million in Q1 2025. Total sales stood at 472 million euros, down 9% year-on-year and down 5% year-on-year, like for like, and at constant exchange rates. The decline of 10% in the mid-year sales was partly attributed to scope effects in relation with divestment of My Little Paris and Play 2 completed in 2025. Like for like and at constant exchange rate, media sales were down 6% year on year. The remainder was linked to a declining advertising environment, although slightly improved compared to the first quarter of 2025. Studio TF1 revenues was probably stable year on year and copper amounted to 13 million, down 30 million euros year on year with a copper margin at 2.8% in 2021-2026. The programming costs remain in the first quarter of 2026 similar to the level of the first quarter of 2025 at 222 million euros with premium programming maintained, notably to support the launch of the new offering TF1 Prime and including notably the broadcast of nine games of the Six Nations Rugby Tournament. Turning to slide 23, I will end on TF1 Group by saying that in the context of limited visibility, TF1 Group's objectives for 2026 remain unchanged. A strong double-digit revenue growth in digital, aiming for a growing dividend policy in the coming years, and last, a mid to high single-digit margin from activity before capital gains. subject to the evolution of the linear market. I will now turn our attention to the financial statement on slide 25, starting with the P&L. We have already discussed first quarter sales and current operating profit from activities in the first part of this call. There are no significant changes to report this quarter. Let's notice two things. First, other operating income and expenses which do not reflect operational activity were slightly lower than last year, in relation notably with the lower charges linked to the Equus Management Intensive Plan. Second, a tax charge was recorded for 10 million euros, a lower amount than in the first quarter 2025. and despite slightly higher operational results, this amount excludes the 28 billion euros of exceptional income tax surcharge for large companies in France. The lower tax charges compared to Q1 2025 is notably due to the lower profit before tax at Bouygues Telecom and at TF1 in Q1 2026 compared to last year. Let's now turn to slide 26 to describe the net debt evolution between end of December 25 and end of March 26. As you see, net debt increased by around 850 million euros since the end of 2025. Such change is usual and related to the seasonality of our activities. This increase includes acquisition, net of disposal totaling minus 26 million euros, including the two small acquisitions at Écrans I mentioned and one small acquisition at Collas in Burgundy in France. Capital transactions and others for 25 million euros include exercise of stock options and the change in liquidity contracts. And last, minus 854 million euros from operations that I will comment in the next slide. Regarding acquisition, you probably read Kola's press release dated mid-March, saying it signed a memorandum of understanding to acquire the road construction and recycling activities of the Frauenrat Group, a family-owned company established in Germany since late 19th century. This transaction, which is Kola's first acquisition in the road sector in Germany, is part of the company's wider growth strategy in Europe's largest market. We expect the transaction to be finalized by end of the first half of 2026. Regarding our acquisition in the US, the transaction remains currently reviewed by US competition authorities. Turning to the breakdown of operation for the first quarter of 2026 from slide 27, you can observe that Net cash flow including lease liabilities stood at 380 million euros. Net capex was 473 million euros, a lower amount compared to first quarter 2025 and a decrease notably explained by lower net capex at Bouygues Télécom level as anticipated. And you can see on the chart the change in working capital requirements stood at minus 809 million euros, a usual negative change for Q1 due to seasonality. This level is quite comparable to that of last year. It was already considered to be a very good level. I will now turn our attention to the group financial structure on slide 28. The group maintained a high level of liquidity at 17.1 billion euros. much higher than the 14.8 billion at the end of March 2025. It comprises 5.9 billion euros in cash and equivalents and 11.2 billion euros in on-drone medium and long-term credit facilities. The position in cash and cash equivalents is more than 2 billion euros higher than at the end of March 2025, which is very good news. Net debt was 5.1 billion euros at end of March 2026, a strong improvement compared to end of March last year. And as a consequence, net gearing was 34% at end of March 2026, a significant improvement compared to the 50% of last year. And you can see from the chart on the right that the debt maturity schedule is very well spread over time. I remind you that our next bond redemption is later this year on October 6th. Last, I would say that the group benefits from a particularly strong financial position and that our financial credit ratings remain strong, which will help us support our strategic developments in the coming months and years. I will now conclude on slide 30. Let me repeat that the BRIC group's business segments are driving growth. Their diversity enables the group to grow over the long term and demonstrate sustained resilience. In a highly uncertain macroeconomic and geopolitical environment, the group will remain agile to adapt to development in its respective markets. For 2026, the group confirms it is aiming for stable sales at constant exchange rates. Current operating profit from activities maintained at a record high level after several years of significant improvement. The improvement in Equance COPPA will allow to offset the expected decline in TF1's COPPA due to the anticipated tensions in the linear TV advertisement market. and in Butte-Telecom's COPPA due to the expected increase in depreciation and amortization. Of course, the group remains very vigilant regarding the indirect consequences related to the duration of the Middle East conflict. Thank you for your attention. Operator, please open the floor for questions.

If you wish to ask a question, please dial pound key 5 on your telephone keypad. If you wish to withdraw your question, please dial pound key 6. The next question comes from Mathieu Robliard from Barclays. Please go ahead.

Yes, good morning. Thank you for the presentation. I had two questions. The first one, I wanted to know if you could comment or want to comment press reports that The deal closing with SFR could be delayed. Anything interesting would be helpful. Thank you. And second, as you flagged, it's a very volatile and uncertain geomacro environment. And I wanted to add some color in terms of if energy prices stays where they are, what could be the impact, notably on telecoms. When inflation picks up, it can affect COLA's margin. It certainly did in the previous part of inflation. Have you changed a bit the contracts linked to inflation to protect yourself against that? And lastly, are you seeing an impact on demand for some of the long-term equals projects, notably data centers, because of all of this uncertainty? Thank you.

Thank you. We will comment in due course on the progress of the negotiations on the Telecom transaction. I can only tell you that for now negotiations are in a quite active mode, so teams meet on a daily basis, so we are working hard on this transaction. Let me remind you that we entered into this phase of exclusive negotiation on the 17th of April only, so it's been three weeks, and as you can understand, negotiating contractual documentation on a deal of that magnitude is a long and steep road, so nothing to report. On the volatile environment, For now, we do not see any significant impact on our Q1 results. Of course, we remain very vigilant. On the energy prices for telecoms specifically, we benefit from hedging policies, so we do not expect in the short-medium term to be impacted by volatility on energy prices. And for the rest, as you may understand, we have learned quite a lot from the 2022-2023 inflation crisis due to post-COVID and Ukrainian conflict. So we have been used to working in very stable and low inflation environments for more than a decade. But we've learned from that. So in the meantime, we have adjusted our contractual policies to be able to reflect any price increase in our prices to our clients. And in businesses like Colas, we also have put in place in some of our businesses and geographies, hedging policies or long-term supply agreements, which help us for now cover any significant risk in the short term. We remain very vigilant, of course. And as you rightly mentioned, beyond these direct impacts on our supply cost, we are also very vigilant on what it could spend in terms of demand from our clients. Having said that, especially when it comes to some specific niche market, like data centers, as you rightly mentioned, or solar farms for instance, we do not see any impact for now on the CAPEX decision of our clients, quite the contrary. As you know, we had in the data center a soft year last year in terms of order intake due to some delays in CAPEX decision from our clients. Q1, we registered in Q1 interesting order intakes in data centers in the U.S. and in Europe again, and we expect in the coming weeks more of such order intakes to be registered. So nothing to report for now on this specific business.

Okay, thank you very much. So on the deal, basically, the fact that it may be delayed, I guess the way you frame it is it's complex, these things can happen, and you remain confident, right?

It's the normal course of business of negotiations in any such deal.

Many thanks. You're welcome.

The next question comes from Akhil Datana from JP Morgan. Please go ahead.

Hi, morning. I've got a couple of questions as well, please. Mine are instead on equans. The Q1 margin at 4.8% is 100 basis points up year over year. I just wondered if you could give us some color on in the mix what you're seeing here. given the strong start to the year and sort of how we should think about the full year in that context. Clearly, that's a bigger year-over-year step up than your full year guidance implies. The second thing was just to get a general update on M&A. You closed a number of Bolton deals at the end of last year. Could you help us understand the pipeline of transactions you're looking at, any sort of update you can provide us on where your focus areas are and what the progress is? That'd be great as well. Thanks a lot.

All right. Yes, we were quite satisfied with the level of Q1 margin for equants at 4.8%, and as you rightly mentioned, it's a significant increase comparing to last year. It's very early in the year, so we'll see in due course as time goes by and the year develops how this will evolve. But this helps us being very confident in achieving our 5% margin, which was already a year ahead of our guidance back in 2023. So very satisfied with that. giving color to the mix. I can only tell you that this increase is spread across the business and there is no significant one-off. So it's really the regular course of business which leads to this margin increase. So that's good news and is a reflection that The strategic plan is being implemented successfully as we expected and even a bit ahead of schedule. On the M&A pipeline of transaction, indeed we secured some seven or eight. acquisition last year, spending some 200 million euros of revenues on the full year basis, both on acquisition Scaling from a few million to some 50 million euros. So our policy remains unchanged. Giving the green light to any business unit within ECONS, achieving more than 4% profitability to look for acquisition. Both on acquisition, we believe that this will help us have a positive impact on our margin and resilience. Our focus remains unchanged. especially focusing on Europe with a strong focus. We will have a stronger focus on Germany especially, but we will also look at Bolton acquisition in all our geographies where we believe that there is still room for for growth. This is why we announced also in this Q1 a new acquisition in Italy in the cleanroom business. And the other area of focus is North America. So that's the two major area of focus. Growing M&A activities is a is not a very short-term move. It's a medium to long-term move. Acquiring companies is easy. You just need to write a big check. What is difficult is to ensure that you are able to do it profitably and make money out of it. And that needs teams to be prepared to do that, to be trained to do that. And so that will take time, but we are very confident to be able to grow this M&E strategy step by step in the coming months and year.

Great. Thank you very much.

You're welcome.

The next question comes from Eric Reveri from CICCIB. Please go ahead.

Yes, good morning. Thank you for taking my questions. First question on wood telecom on the ABPU trend on mobile. So we saw that it was still declining in Q1 year over year and also sequentially. Could we have a comment on the current competition situation in France on prices and shall we expect an improvement of the ABPU trend over the rest of the year? That's for BookTelecom. For Ecrans, two questions. First one on the soft revenues in Q1. Could you be more specific on the geographies and niche markets that were affected? And are you expecting an improvement over the rest of the year as you are confirming your guidance of stable revenues for Ekrans over 2026? And second question on Ekrans is about the EBITDA trend in Q1. So I saw that the EBITDA was down 40 million euros, while the COPPA was up 28 million euros. So is there anything specific there that you could explain? Thank you.

I will let Christian answer the first question.

Thank you, Stéphane. Regarding Boot Telecom's mobile view, you're right. In Q1 2026, our mobile view stands at 16.9, down by 0.6 year-on-year, and down 0.4 versus Q4 2025. It is explained mainly by two things. First, we still have low acquisition prices, especially on the low-end market. As I said during the presentation, the competition is still even if it's less intense than compared to middle of last year. However, acquisition prices remain very low compared to historical levels. Second point, regarding the cooperation with Q4 2025, we have some seasonal effects, especially coming from roaming. The minus 0.4 euros versus Q4 2025, you can split the 0.4 by 2, minus 0.2 due to lower collision prices and minus 0.2 due to warming impacts. I remind you also that last year we were able to have stable EVPU in Q3 and Q4 compared to Q2 2025 and we benefited from rooming in Q3 2025 and from some more formal operations we did on our BNU offers in Q4 so we have been able to increase our EVPU in Q4 due to these more formal operations in Q4 2025 We don't do that in Q1 of this year. Thank you very much.

Thank you, Christian. So reverting to your questions on the course, one on the Q1 to give you a bit more color. There is no one single geography or market where we have seen a significant decrease. I would say broad-based and in multiple that we've seen some smaller impacts. And just to give you a few examples maybe which will help you understand. We've seen, for instance, in the UK, a very soft start in revenues on solar farms. Our revenues in the UK in 2024, 2025 included a significant portion of solar farm projects which were delivered successfully for the best part of them. But our clients have difficulties to connect those solar farms to the grid due to grid congestion. And so our clients delay the start of new projects. So we are waiting for new projects to come. We have a strong pipeline. But of course, our clients won't invest. until they get their delivered projects onto the grid. Second example is in Belgium. In Belgium we have a historically very strong business in industrial maintenance, especially in the oil and gas business around the Antwerp port. In the current context, refineries run day and night to benefit from the higher fuel prices. And so our clients have decided to report any maintenance work to maximize production. So we are waiting for maintenance work to come. because they can't be eternally postponed, but that's another example. A third example maybe is we had a very strong business of solar farms in Australia over the past year. We successfully delivered two very large projects end of last year, early this year. And we had a small delay in securing new orders, which will come now in the Q2. So that's a typical example why we say, OK, for now it's a soft start. It's still early in the year, and this is why we believe that there is still a way to get to what we had planned, and this is why we didn't change our guidance. On the EBDA question, I would just like to stress that we never report on EBDA in construction, energy and services, infrastructure business. Simply because we do not believe it's a very appropriate KPI due to one specific element. In this construction contract kind of business, you have a lot of... move below the line of EBDA affecting COPPA margin when it comes to provision and provision reversals on construction contracts. And that's typically the case in Q1 for equals this month so as you may see in the appendices and in the we have registered provision reversals in this Q1 provision reversal which were utilized so of course ABDA is lower because the The expenses and the losses on the contract which had been provisioned are now crystallizing, but this is crystallizing below the line of EBITDA, hence why RoCA is improving. So nothing specific, it's normal course of business.

Okay, thank you very much, very clear.

The next question comes from Rohit Modi from Citi. Please go ahead.

Hi, thank you for the opportunity. I have a couple of questions all on telecoms. Firstly, looking at the net addition trend in the FDTH side, first quarter has been slightly lower than what the trends we have seen in the past couple of quarters. Just trying to understand, did you see higher churn? Because I believe you did some price increase on some of the packages. So is that because of the higher churn or is it particularly market activity where you're seeing the market as, you know, kind of saturation that you're seeing on the fixed side second if you can comment on the competitive intensity in the market that you're seeing now you know I believe you know there's been there's been comments from other other operators that you know there's been lesser intensity but how do you see it in the second quarter particularly so far and third question is basically on the deal and apologies if can't comment on it I understand that but SFR released last week mentioned about earn out, which was not mentioned in the consortium's release. Just trying to get your view on this. Is there a kind of deal breaker? Or what do you think about the earn out position? Thank you.

So your first question was about fixed market. We are very happy with our performance in the fixed business. either in new clients acquisition and also in churn. We have a very low level of churn thanks to the offer we launched in October 2024, Convergence offer, and so we are able to take new clients. We are increasing our market share in each area in France, every area in France, especially in London's areas where we are not present in the past with DSL because we are not covering these very rural areas, and now our market share there is more than 10%, which is a very good performance. Regarding the competitive intensity, as I said before, It is still very intense in the mobile market and especially on digital offers like being new for us. This is where we have quite low prices, less than 10 euros for new clients. We estimate that the normal level should be around 15 euros, which was the case a few years before. This is where we have some more difficulties due to competition. In the market with handsets, like for big offers, the situation is quite better. Regarding the fixed business, the competitive intensity is normal. The churn is very good. We decided to stop to market our TSL offers one year ago, I think. And we are very happy to have done that because now we have less and less DSL clients, we are able to migrate them to a CCH and we will be able to dismantle our DSL equipment in probably a few years. That will save, of course, some costs when it will happen.

On the deal, as you know, we've entered into exclusive negotiation on the 17th of April, so we are three weeks into these negotiations. The aim of this negotiation is to negotiate and finalize the contractual documentation for this transaction. These negotiations include a number of parameters. including earn out parameters, but significant other parameters which will report on to in due course when this is finalized.

Thank you.

The next question comes from Molly Whitcomb from Goldman Sachs. Please go ahead.

Hi. Two questions from me, please. Firstly, just to come back a little bit on French competition. I'm wondering if you were seeing any impact from the change in Iliad portfolio that took place during the quarter. And second question, just on weak construction. Obviously, there's the Civil Works drag, which I believe was a project in Australia. When does that roll off? And then just a bit more color in terms of what you're seeing in trends. in building, particularly in France, but also which markets you're seeing growth in, in international, and what you're seeing in terms of competitive environment, etc. Thank you.

So regarding this new offer, no, we didn't see any impact due to this offer. We know that they launched a new offer with quite a booming data allowance. It is targeting mainly frequent international travelers and very heavy data users. So our current plans already meet the data needs of customers and the needs of travelers in Europe and worldwide. So we are not observing any impact on ourselves for the moment.

On the construction side, we see very positive outlooks for construction business. As you may have seen, we are on a growing trend and continued growth for construction in particular over the past semester and years now. You may have seen that our backlog increased significantly over time. And this has to do with the fact that boot construction is really positioned on, I would say, markets or niche markets which which offer very interesting perspectives. So we are less present in part of the business where we see difficult environments such as residential buildings in France or in other parts of the world. So we are really focusing on more niche markets where the demand is strong. So it's true for civil works. with a number of transportation, infrastructure, but also one market where we are very present and very active is nuclear power plant construction. As you know, we are finishing the construction of the Civil Works part of Hinkley Point. We have started Sizewell. We have been selected as a potential partner for EDF for their EPR2 projects and we hope to have good news on this in the coming year. Overall the infrastructure business is strong for everything also supporting climate transition and in the building sector we are also focusing on on a number of niche markets where the demand is strong. So data centers, whether in many instances in joint venture with Equance is a typical example. We also see, for instance, another part is health infrastructure, so building hospitals Education is another part where we see in many parts of the world significant investments. So despite a very selective approach to projects, We see a very strong pipeline and we are very confident in the way boot construction will continue to develop and we are hopeful to secure significant new orders in the coming months to come.

Can I just come back slightly on that? In terms of public sector projects and contracts, a lot of the things you mentioned are public sector. I'm just wondering, are you seeing any difference in trends given the macro situation, any kind of rotation towards defense that's meaning that you're missing out on this side?

For now, this has no significant impact on reconstruction. It may be worth mentioning that we don't talk so much about that because in many instances we have no right to talk about defense contracts, but we are also present in this business. for decades in this business. We are present in many of our businesses. We are present for brick construction. We are present with COLAS. We recently secured significant orders to, for instance, renew tracks and taxiways for military airports. We have secured works in Finland with Destia on reinforcing the border with Russia. And Equance is also active in this business on communication solutions, but also on M&E businesses in the ship construction business. And for instance, in the UK, this does not really translate into our numbers. But Equance is a member of a 50-50 joint venture called Vivo, which is a... which represents more than a billion euros worth of revenues every year in the facility management and maintenance of a great number of military facilities throughout England. So really, it's not a concern to us to see investment moving into the defense business. I think we have, we see there also great opportunities.

Claire, thank you very much.

You're welcome. The next question comes from Sven Edelfelt from Odo. Please go ahead.

Yes, good morning gentlemen and thank you for taking my question. You mentioned on one of your slides on Equance additional significant data center contract expected shortly. I think this might refer to the cloud on the AI development hack to be released. in May to triple the EU data center capacity in the next 5 to 7 years. How much do you think you can improve the revenue on this data center? I am at trial. Do you believe you can get to something like 800 million new orders on the data center which is a significant uptick compared to where you were, if I recall correctly And then the second question would be on cash, on order book. The order book is a bit light. You mentioned you are likely to sign significant contract shortly or in the course of a year. So can you confirm it won't affect the cash contribution from advance payment for the full year at the group level? And in other words, it shouldn't affect the working capital on the negative in 2026? Thank you.

On the data center, indeed we foresee interesting opportunities with everything that is announced. Having said that, we are looking at shorter opportunities because what is announced today on the AI Act will only translate in concrete projects. Not before long, if I may, and certainly not this year, simply because of administrative delays and the time to get this up and running. So what we see today is, however, our historical clients in Europe coming back and launching and kicking off projects. So we will report on Q2. It's too early to report, but we have won some new contracts in April. We are hopeful to secure new contracts in May and June, and we will report in Q2 on a number of projects. New data center contracts beyond the one we've secured in Q1. Hard to say what this will spell in terms of revenues, and we do not report into such a level of detail for a course. On the construction order book, We do not have the same view on the order intake and we do not consider that we have some form of soft order book in construction. Quite the contrary. If you refer to the appendix on the backlog for brick construction, for instance, I think it's on slide. I don't have my glasses, sorry. 35. You will see, for instance, that the 6% decrease year on year focuses on contracts to be executed starting 2028 and beyond. But at the contrary, you see that for execution in this year and in the year to come, backlog is stable or even slightly growing, including negative exchange rates. So we are quite confident. that our revenues will be strong and so we consider that our backlog on the construction, on the brick construction business is quite robust. We see indeed a slight drop in the backlog at Colas but that was anticipated due to the local election as I mentioned. And so, as you know, we never report or give any guidance on working capital in construction because it's just simply impossible to really anticipate, but we are hopeful that We will secure, as I mentioned earlier in the answer to the Goldman Sachs question, that we will report and register in the coming months significant new orders for construction. So for now, we are really not concerned about that.

That's it, Paul. Thank you.

Thank you. The next question comes from Abhilash Mohapatra from BNP Paribas. Please go ahead.

Hi, good morning, and thanks for taking my questions. I just wanted to come back to e-sponsors. Thank you for sharing all the color around how you expect the new contract things to help this business going forward. I just wanted to ask in terms of the cadence of the quarters, obviously, revenues down 5%, like in Q1, and you're guiding the flat for the full year. um how should we think about the the shape of the recovery uh from here on is it going to more back end uh weighted or should we already anticipate a sort of revenue recovery in the in the second quarter and just related to that um you've previously said that uh over time you expect econs top-line trends to improve and catch up with some of your best-in-class players. Is that something that you still feel comfortable with when you think about Equance's top-line trends going forward? And then second question, just around telecoms and consolidation. appreciate obviously you're in negotiations right now so you may not want to comment but to the extent you can and any thoughts around how you see synergies from this team you know which are the major areas where you could see cost savings that would be that would be helpful thank you okay

So, on the Q1 revenues, as I mentioned, we are still hopeful to recover this soft start, hence why we confirmed our guidance for this year with what we hope to be stable revenues, including exchange rates. This will be a step-by-step recovery, so we'll see what happens in Q2, but I think this recovery will spread over the year. That's our expectation. Let me simply point out the fact that exchange rate impacts have significantly crystallized in Q1 because, contrary to others, we are very strong in the US at Equance. You may remember that last year the exchange rate effect mostly crystallized in the second half of the year and for the best part of it in Q4. This is true, possibly also what we expected to be true for this year. because we have a strong basis of comparison for the exchange rate of the US versus Euro, comparing Q1 2025 to 2026. And so that's where we are. So for now we confirm our outlook for this year. We hope that, and we believe, expect this recovery to take gradually place throughout the year. On the top line, on the longer term trend, We do not see any reason why in the mid-term we should not be able to catch up with the growth which peers do. This maybe in relation with the question or my answer to JP Morgan earlier in the call, this would also go with step-by-step acceleration of our M&A activities. We want this to be done step-by-step because we need the people to be trained, to be capable of integrating these companies. So we started the journey last year, we'll continue this year and this will also help us step-by-step get close to the growth level that our On the telecom consolidation, in terms of synergies, what I can tell you is that where we foresee cost synergies is essentially in networks. because of course today in France you have four telecom networks implemented throughout the territory and looking forward we will not need the best part of the network of SFR And so this also explains why we believe that the horizon of such synergies will be a mid-term because it will first start by some dismantling costs. But networks, and I'm turning to Christian, is the essential part where we foresee the major synergies.

Yes, as Stephane said, the main synergies are on network and IT. Of course, we will keep around 50% of SFR mobile network because we are sharing the mobile network with them in an undone server. But we will be able to dismantle mobile network in very dense. equipment and also to not use in medium term the transport network. It is also the case for IT. We will be able to migrate SFR clients to our IT system. As Stéphane said, we will need three periods. First one, we will need some time to migrate mobile and fixed client of SFR to our IT system and to our networks. It will last between two to three years and after that we'll be able to dismantle the equipment we will not use anymore. It will be another probably one to two years period before to be in a a new situation with clearly only three networks in France. Thank you.

And so if I may just clarify your comment, I didn't quite catch it for me. You mentioned something about keeping the large parts of the shared network in the rural areas. Could you just please elaborate on that? Is it keeping the entire network in the rural areas? Or you made a reference to the 50%. I just wanted to clarify that, please. Thank you.

Sorry. No, no. In front, we will keep the... 100% of the network we are sharing with FFR and we will dismantle the network in very dense area.

Understood. Thank you. Thanks a lot.

There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

Okay, so thank you for joining us today. Thank you for your question and your interest into our business. We will be announcing half-year 2026 results on the 30th of July 2026. And should you have any more questions, please contact our investor relations team. Their contact information is on the press release and on our website. And have a nice day and speak to you soon. Bye-bye.