Carmila Sas

Welcome to the Carmilla first half 2026 results presentation. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to the speakers, Marie Cheval, Chair and CEO, Sebastien Vanhoove, Deputy CEO, and Pierre-Yves Thirion, CFO. Please go ahead.

Good morning everyone and welcome to our first half results presentation. Operational performance this semester continues to be very strong both in terms of growth and profitability. As a consequence, we are in a position to upgrade the full year guidance and report an increase in the value of our portfolio. Today I will start with the key takeaways. Sebastien will deep dive into our free growth engines and Pierre-Yves will take you through the financials. Let me begin with the key messages. This was a very strong first half. But I want to be clear, it is not a one-off. It is a continuation of a track record we have built year after year. And behind is the same engine, our ability to transform our assets. First, we are upgrading our 26 guidance on the back of operational outperformance and our new acquisition. Second, momentum was strong across our three growth engines. Organic growth with net rental income up 1.4%, boosted by record tenant demand and by strong momentum in Spain. Investment growth with the immediately accretive acquisition of Grand Kittimi and innovation growth contributing 14 million euros with our new retail media offering now being deployed. Third, asset transformation is driving excellent operational performance, record losing activity, strong retailer sales and rising portfolio valuation. Fourth, the strength of our balance sheets provides efficiency and opportunity. with net debt at 7.3 times EBITDA and an APRA ITV of 39.3%. And fifth, we continue to create value for shareholders who discipline capital allocation. We completed 20 million euros of buybacks in the first half and APRA NTA per share rose 3.3%. So in short, a very strong half, but above all, the continuation of a proven model powered by asset transformation. These takeaways are grounded in strong operational and financial performance. We signed 530 leases. This is our highest ever volume of leasing activity with reversion of 2.8% above indexation and occupancy held at a high 96%. that fed directly into financial performance. An EBITDA margin of 80.8% up 80 basis points on last year. And gross asset value up 2.6% like for life. Strong operations translating into strong returns. As you know, our performance is powered by three engines. Organic growth. Net rental income up 1.4%, driven by strong retailer demand, asset transformation, and once again 100 basis points above indexation. Investment growth. His health was marked by the acquisition of Grand Ketimi, adding 1% to recurring earnings on an annualized basis. And innovation growth. 13.7 million euros of recurring earnings up 13% year on year with retail media now live and high demand for specialty leasing. Free engines all firing. Why do retailers choose our centers? Because shopping centers are winning share. They outperform overall consumption. and that is because they convert. In a world where the cost of acquiring a customer online has more than doubled, a store is the most efficient channel. Add to that genuine scarcity. No new greenfield supply is being built. And consumers, we are looking for experience and social interaction. That combination is exactly what our leading shopping centers offer. We operate a European platform of 250 assets across France, Spain and Italy worth nearly 7 billion euros. At its core are 80 leading shopping centers. They make up 80% of that total value and are the primary driver of our performance. Alongside them, A resilient network of 170 convenience centers anchors us in an everyday local life. I want to insist on these leading shopping centers. These 80 leading shopping centers are perfectly positioned to capture retail growth. They sit in the most dynamic region of our three countries in attractive catchment areas with strong economic and demographic growth. They host around 70 top-tier brands. Occupancy is above 97% and they are where we scale our innovations, specialty leasing, retail media, and next-door. In short, we live in the regions with the strongest growth, delivering highly scalable performance right across the portfolio. and this performance is not accidental. It is built through asset transformation. How do we do that? Merchandising mix, 50 restructuring projects a year and reinforcing the customer experience. We consistently grow organic rental income above indexation. As the chart shows, we have done this year after year. and in the first half again 100 basis points ahead of inflation. The same transformation drivers lifted our portfolio value by 2.6%. The operational picture is strong across all three countries. Growth footfall was up nearly 1% and retailer sales up 2.3%. The sound doubt is Spain, where retailer sales rose 6.6% and the occupancy cost ratio remains healthy at around 11%, which means our tenants are profitable and there is room for further rental growth. On investment growth, we acquired Grand Quétini for 45 million euros. It's a deal that ticks every box. First, it's a leading asset with strong fundamentals and a natural fit for our leading shopping centers portfolio. 4.2 million visitors a year, 66 stores and a dominant position in its local market. And second, we have identified exactly where the Carmina platform can add value through higher occupancy, reversion and asset transformation. The result is immediately equity, adding 1% to recurring earnings. On innovation, our third engine. This is where retail media stands out. And it rests on something advertisers truly value, data. We are unlocking Europe's deepest transactional data. We are pairing over 600 million annual visits with Carrefour first-party data and GC Deco expertise. So we give advertisers something they can't find anywhere else, which is the ability to target precisely and to measure real impact all the way through to sales. That's exactly why our first clients, Brands like Ferrero and Heineken are already advertising across our 900 new digital screens. For Carmilla, it's high value, high margin, and we expect retail media to contribute up to 2% of EBITDA. All this leads to our guidance upgrade. Organic Output Performance and Cost Efficiency are expanding our EBITDA margin. Our net buyer strategy is accretive and innovation is accelerating. Together, we take our 26 recurring EPS guidance to €1.87, up 3% on last year, and above our initial guidance of €1.84. I'll hand over to Sebastien to take you through the details.

Thank you, Marie. Let me take you deeper into our three growth engines and the record leasing activity behind it. This was our busiest ever half year for leasing, 530 leases signed. That reflects real record demand from retailers with reversion up 2.8% and occupancy at 96%. And the effort rate of 10.9% tells us tenants remain healthy and profitable. Just as important is the quality of demand. We are welcoming the leaders in the most dynamic categories that are health and beauty, sport, fashion, food, leisure, and the fast-growing Asian waste concepts. When the best brands choose us, is the clearest signal of our center's appeal. This demand is what lets us do what Carmilla does best, transform our assets. Through restructuring projects, we drive incremental rental growth. In the first half, we approved 39 projects at a 9% yield end cost. Let me now show you three examples that capture what we do. In Toulouse-Labeige, Zara Force Place grew to three times its original size, creating a 3,400 square meter flagship. The impact was immediate. Footfall at 7%, that's 130,000 additional visits versus last year. A stronger encore makes the whole center stronger. In Rennes Saison, we did something different. We turn an underused parking area into a 7,000 square meter leisure complex with speed park and four boyars. The result, footfall up 22% with 50,000 new visitors in June alone. This is how we densify our existing footprint and create value from space we already own. And in Talavera in Spain, we opened a new Primark. Since it opened in mid-June, Footfall is up 19% with 77,000 additional visitors. It has repositioned the center as a shopping destination for its region. Three projects, one pattern. This is asset transformation in action. The right brands in the right places leads to the entire asset. Beyond bricks and mortar, the customer experience is central to what we do. Customer experience is critical because it keeps people coming back, driving sustainable, repeat footfall. And across our 620 million visits a year, that translates into stronger sales conversion. We enrich it constantly through events, for example, like Panini Card Trading during the World Cup, specialty leasing concept surfing the Asian waves, and during the heat waves, turning our centers into cool, welcoming places to spend time. Finally, on innovation, we are building recurring income streams beyond traditional leasing. Together, they contributed 30.7 million euros in H1 at 13% year-on-year. Specialty leasing leads at 7.4 million, complemented by marketing services, terminal retail development, and the ramp-up of retail media. I will single out next hour. By monetizing 5G on Wi-Fi connectivity across our sites, we are turning our physical footprint into a new recurring revenue stream, already contributing 1.8 million euros with since then investment plans through 2020. It's a perfect example of how we extract fresh value from assets we already own. Second together, high margin, low capital and the structural driver of our future growth. With that, I'll pass to Pierre-Yves to turn this growth into earnings.