Eiffage Sa Unsp/Adr

Good evening all, and welcome to this presentation of the half-year results of Eiffage. As you have seen in the opening, the project of the substation OSS Jasmine for the wind farm, wind dunker, and the Baltic Sea, implemented by consortium HSM Offshore Energy, Smulders and IV. The know-how of HSM and Smulders are very complimentary, and we have grabbed the opportunity to reacquire AI system offshore energy while we had already four projects in common and that the teams know each other well. This acquisition strengthened our presence as constructor of the market of substations very dynamic in Europe. Let's move to the highlights of the first half year. It went very well according to our expectations and confirms our outlook for 2025. As expected, organic growth goes on to contribute to the growth of the group, plus the external growth. As announced, the construction division, in spite of a downturn at the first quarter, is back to growth as of end of June. This half year signs again a very strong growth in Europe, outside of France, to a rate of 17.4%, 17.4%. Commercial activity remains important on all our business lines. Recovery plans in some countries in Europe, especially in Germany, will absolutely support and amplify the development of our activities. The strong multi-annual visibility acquired last year remains present, as illustrated by our order book, always at its highest, and which has been strengthened again. Construction site. The half-year was marked by intake of orders very diversified in size in all of our countries of operation. Good example of emblematic contract, the design-build project of Frontex headquarters in Poland. 69,000 square meters building that will welcome 2,000 employees. Project will there, on the expertise of DEFOR, Polish subsidiary of Goyer, who is working there for over 35 years in this country. The teams of Eiffage Aménagement were entrusted the implementation of eco-district of Pont des Gains in Breuillet, Ile-de-France, an ancient disused site of five hectares that will leave the place to a new borough with 450 housing units landscaped areas, shops, and economic activities. Eiffage Construction was entrusted a groupment and contract the design building of the Institute of Biology and Pathology of Bordeaux on the hospital of Pessac. The new institute with a surface of over 16,000 square meters will have labs, offices, and storage areas. Numéra, Global Specialist In drug delivery devices devoted to Eiffage construction, the implementation of its new production site, 7,000 square meters in Seine-Maritime. Heating, ventilation, air conditioning will be carried out by Eiffage Energy System. Eiffage Route was entrusted in Groupment, the contract of design and construction of the new urban circuit of F1 in Madrid, in Spain. The market comprehends the realization of temporary infrastructures as well as the refurbishing of the streets after each addition and creation of new roadways. Eiffel Genie Civile won the market of securing the 22 against the rockfalls by the construction of 300 meters of rockfall tunnels on several parts of the existing tunnel of Gurnelle in Haute-Savoie. Eiffage Energy System won the contract of modernization of the Dolin Tunnel on A43, linking Lyon to Chambéry. Projects comprise the replacement of switch poles for low voltage cables and ventilation system and implementation of predictive maintenance capacities. Works will be made at night, off-peak hours, for a minimal impact on traffic. In Spain, a federal energy system won the contract of construction of 250 MW Cabra powerhouses and 50 MW Olivar for an amount of 134 million euros. The turnkey project integrates the provision of main equipment, infrastructures of linking to high voltage as well as the services of exploitation and maintenance. Our Spanish teams also warm the maintenance of installation of climatization in airports of Malaga, Granada, Almeria, Seville, Jerez as to guarantee the efficiency of the systems. This project foresees also the maintenance of various infrastructures including high voltage, low voltage and auxiliary systems. AFASH Energy Systems also strengthens its position as leader In the health system in Spain, with the contract of maintenance of 130 centers of health of Mutua Universal, this contract increases also audits on all the centers in order to increase the energy efficiency of the establishments. X-ray systems maintenance has also been reconducted. Extended. As announced last week, a fashion energy system won several major contracts in Germany since the beginning of the year, consolidating its position of first-ranked player in the area of energy services. First half year, the auto intake in the country is at 950 million euros. Among the many contracts of first half year, ECOS won the market for the construction of high voltage lines, replacement of cables on 31 kilometers between Philipsburg and Karlsruhe. Globally speaking, from all of the businesses of the works of the group, the order book June 25 is growing by 4%, confirming its good visibility on medium and long term. Let's get to the activity. The revenues of the group is growth again at plus 8.4%, enjoying organic growth and also the support of external growth in 24, contributing to the strengthening of the European meshing, especially in Germany. In France, Eiffage Immobilier delivered a project grouping a four-star hotel, housing units, shops, parking. In Saint-Jean-de-Luz, the works were devoted to Eiffage Construction, a project within the project of revitalization of the city. In Belgium, Eiffage Construction delivered in the center of Brussels the new headquarters of the Belgian Television, a building of 38,000 square meters. for 18 studios, matching the technical acoustic energy challenges of the media, which is in full transformation. Still in Beijing, we laid the foundation stone of the new Headquarters of Defense, 4,000 employees, and it will be almost neutral in carbon. Ceremony was in presence of the Minister of Defense, here on the screen, for the kicking off of the works. The site opposing NATO will be operational in 2028. In Switzerland, Eiffage Construction delivered the Tivoli Garden project. 110,000 square meters of floor area, 445 housing units, 5 buildings, 2 towers of 19 floors, parking spaces, offices and commercial premises. On the road, the new factory LEA, inaugurated in July in Perreux, is making plant-based asphalt mixes to increase the decarbonization of the road industry. Production of binders and emulsions patented by the group was made in small quantities and now will be moving to the industrial scale. Since 2016, Eiffage Routes leads several experimentations on roads and motorways everywhere in France and has developed a whole range of plant-based asphalt mixes. Another illustration of the evolution of the businesses of the road, a demonstration, a full-size demonstration inspired by the concept of eco-acids. On the portion of the road to Saint-Nazaire, our teams implemented a 100% road which is permeable. In the case of heavy rain, the rain is stored in a reservoir before infiltrating the water table. This realization is a new generation of urban infrastructure combining technical performance, sustainability and adaptation to climate change. Civil engineering, our teams inaugurated a unit, a primary settling unit in Seine-Aval, the largest in Europe, enabling to process wastewater for 6 million inhabitants. In Montpellier, we made a cycle gallery, 400 meters long, with secure lanes to improve the urban mobility. This project, regulated by the Mont Blanc laws, will be totally transformed to soft mobilities, participating in the creation of a new regulation. In the framework of the renewal market of track equipment, our teams are being intervened on the LGV Atlantic and LGV Southeast Europeans. Works are made special at night as to preserve the traffic of TGVs in the day. Some equipment may be 220 meters long. On the project of APR-2 of Penley, the earthworks that have been launched at the beginning of the year now reached 1.2 million of cubic meter. The first third of the seawall at sea works started in March 25 are almost finalized. Over 2,200 grooved cubic concrete blocks, 20 tons each, are made now. 14,000 blocks will be prefabricated on site to implement the double shell that will recover the seawall to protect it from the swell. The two first phases of interconnection of Saint-Jean-de-Maurienne meeting the south part of the new train stations are now finished. Our client now can switch tracks and transfer the traffic on this platform so that we can restart, resume the work of construction of the northern part in September 26. This phasing enables to maintain an ongoing service during works. In Germany, the rail teams implemented works of renovation of the tracks on 11 kilometers of the tracks between Münchenberg and Reifel, an essential line to link the local population to the capital city, Berlin. And in Norway, the motorway project E18 reached 80% of progress. Access already made, tunnels are born. As you see, The deck of the cable-stayed bridge is being fabricated, manufactured right now. The second of the three pontoons of the future wind park in the Gulf of Lyon is assembled by Fage Metal in Fos-sur-Mer, 16 kilometers offshore. This will produce the consumption of a city of 50,000 inhabitants. The cathedral bridge has been commissioned beginning of last week. It's a new step of the Charles de Gaulle Express. This bridge, manufactured in Eiffage Metal in Lotteborg, is replacing a 100-year-old bridge. Goyer finalized the facades on the refurbishing of the former headquarters of ORTF in Paris. Teams finalized over 10,000 square meters of facades in aluminum blocks in the framework of the enlargement of the campus Phallus Helios at Vélizy, manufactured by Eiffage Construction. Our teams in Belgium are transforming the Antwerpen Bruges port in a smart space, implementing 100 sensors IoT and a new software structure to optimize the communication of the connected devices. Besides an efficient functioning operation of the port, sensors enabling energy monitoring, enabling also the management of waste and enabling fire detection. In Spain, we started installation of a new storage system with recycled batteries in the sun form of Almendralejo. In this framework, new batteries and used batteries coming from electric cars are used. In parallel, the challenge is to analyze the performance and the behavior of the recycled batteries compared to new batteries, contributing to the promotion and development of circular economy. Eiffage Construction, association with Goyer, Metem refers to the open tower at La Défense, built in 2002. It has been totally restructured and raised. The project was a requalification of this building, IGH, with a lateral extension on 26 levels and a hiding on three stores. In Marseille, the new jail of Beaumet has also been delivered. following four years of works by Eiffage Construction, Eiffage Genie Civile, and Eiffage Énergie Système. Market was about the demolition of the jail for men, as well as the design, construction, and development of a new jail on the same place. Data Center of the American group CloudHQ in Lys has been inaugurated June 25. with its future extension to become the largest data center in Europe. Construction and equipment of this building have been made by Eiffage Générale du Système and Eiffage Genicistele in two years and a half. The waste heat produced by this data center will be made available by Grand Paris Sud, who will develop a heating network to fuel 7,000 housing units in three months. Eiffage Construction finalized the transformation of the former headquarter of the newspaper Courrier Picard in Amiens, transforming it into 48 housing units of high standing. Ambitious projects meeting the iconic facades of Art Deco of this building. This operation was made by Eiffage Énergie Système in charge of the electricity for this project. Eiffage Génie Civil, Eiffage Métal and Eiffage Énergie Système contributed the Barracuda program with the implementation of welcoming infrastructure and all the electrical infrastructure for conversion of energy for the power of the submarines. On screen, the inauguration of July 4 by the Minister of the Army on the naval base of Toulon, which will be for the maintenance of Barracuda type nuclear attack submarines. It was an occasion to commemorate the the commissioning of the submarine to reveal. In the UK, on HS2, the teams of Eiffel Génie Civil have finalized installation of the 16 prefabricated beams of the Goddington of 94 meters. It was a challenge since those 20 meters beams, 30 tons, were brought from Ireland and needed the use of a 600 ton crane. Beyond this organic growth, we have continued our development, external development. During the first half year 2005, we acquired six companies, all active in energy services. As alluded to in the opening of my speech, we have finalized the acquisition of HSM Offshore Energy in the Netherlands, provider of integrated solution of engineering, construction, installation, especially in the electrical systems, mechanical systems for the wind farms, offshore wind farms. This company specializes in the specific structures for emerging markets as the capture and storage of carbon and the production of hydrogen. In the area of Rotterdam, this company generates a revenue of 300 million euros and employs 140 people. By the acquisition of HSM, we have also the jacket and substation of the wind farm East Anglia II in the Northern Sea for €260 million by Smulders. On the same field, Smulders have been retained in 1924 for the manufacturing of 64 pieces of transition for an amount of €150 million. The five other acquisitions contribute to strengthen our meshing in Europe in the energy service. In Germany, after the major acquisitions of Salvia and ECOS, we carry on our acquisition with the companies IFT and ESACOM, representing 35 million of revenues and 100 employees. We just concluded three acquisitions in Spain, enabling a fresh energy system to strengthen its territorial coverage and its expertise. Society CVS specialized in the refrigeration solution as well in detection and fire protection. 60 million euro and 300 employees. M3I and Immorteknia so as to have a national coverage on the centralized management of buildings. 15 million of sales and 100 employees. Major implementation of energy effect system in Europe, Spain had over 5,000 employees in 24 for a sales of 1.1 billion euro. As said in the annual results, the dynamic of the various markets in the different businesses and the external growth enabling the speeding up of the European mission is modifying in time the relative weight of the various businesses of the group with the branch energy system representing now 38% of the global activity. Beside the major trends in February 26th, the Europeanization of the business of the group, 17% of growth in Europe outside of France by organic growth parts of market share and external growth, the group has now 42% of its activity outside of France, as compared to 31% four years ago. Concession side. Preparation works of motorway A412 are carrying on to finalize the regulations to get the aforementioned regulation. The winning by tender of the new headquarters of the Porte Marseille Force is illustrating again the capacity of the group to mobilize all of its business lines to secure new assets. Eiffage Concession signed on 24 July 25 the partnership contract for the financing, the design, construction and maintenance of this new headquarters. Projects has also a real estate ambitious operation valuing the adjacent land. Those two operations represent 120 million of worth that will mobilize all of the businesses of the group. Upon delivery in 2030, the project will integrate buildings of offices, a museum, auditorium, shops and restaurants on over 17,000 square meters. No vain is continuing its strong traction, operational traction, and its capacity to deploying its project of construction, renovation, and real estate management. 1,000 housing units and building renovation have already been delivered end of July 25. More than 100 projects are underway in all of France. Concession-wise, motorways, traffics are robust on the vast majority of our concession, especially APRR, with a progression of 2.2%. To be noticed, the ramping up, always dynamic on Aliae, with a growth of traffic of 11.7%. Our motorway networks are welcoming more and more electric cars. We have a very dense network of charging stations high power of 100% of our areas. To meet the demand, the number of charging stations increased by 50% between July 24 and July 24, and the unavailable theory, which was very weak, has been at the same time divided by two. To participate in the development of sustainable mobilities, we support also the collectivities and the development of multi-modal areas by co-financing areas of carpooling, We inaugurated last April the area of Chevilly-Saint-Sauveur near Dijon in presence of the cabinet minister François Rebsamen. It's already today over 6,000 parking spaces on 78 parkings of carpooling on our network. Summer period is always a source of very great activity on our networks, especially on our areas, where our teams are mobilizing from the patrol people to the manager to welcome passengers as best as can be for our clients to make for them to take a break, which is something paramount for the safety of everybody. Over 100 Red Vests mobilized employees in our concessions to support our customers. After the highlights of our businesses, let's not forget the challenges which are of concern to everybody. Our capacity to attract, promote, and gain loyalty, more and more talents to support the development of the group. Over the four past years, our workforce moved from 73,500 to 84,400 employees, 15% increase. Also, our capacity to roll out the carbon strategy, climate strategy of the group, bearing on three pillars, reduction of our greenhouse gas effects, preservation of resources via promotion of circular economy and concrete actions in favor of preservation of biodiversity. The CDP climate ranked us end of 24 to A minus recognition of our commitments and our efforts. To push this in our value chain in the ecosystem of the building The group had the initiative of Blue Arm, the first marketplace, putting on the same level technical data, financial data, and carbon data of a product, so that each and every buyer can be able, in real time, to integrate the carbon data in their acquisition. This marketplace has already over 40,000 references. We just released the sixth edition of our climate report, ID card of our commitment for ecological transition illustrating our determination to inscribe the environmental strategy at the core of the businesses of the group. After this 360 of our highlights, let's get back to the major figures of the half-year. Sales growth of 7.5% compared to the same period of 24%. Differences of dynamic, given the businesses, but all of our business lines are back to growth. As expected, organic growth is sustained and external growth in the branch energy system significant. In the concessions, the motorway traffic is robust. A operational performance which is solid with an operating profit an increase in works and in concession and a net result which is increasing impacted by the exceptional contribution to corporate tax in France a significant decrease of debt by 700 million of euros in spite of external growth and the order book again up again to 29.5 billion euros so 4% increase over a year. Those elements confirm our perspective for 2025. An increase of activity and of current operating profit in the concessions and in works, especially supported by a new improvement of the profitability of a fast energy system. A fast energy system will have an activity close to 8 billion euros and an operating profit margin reaching 6%. Net path group result will be an increase as to tax constant and after a exceptional contribution to the corporate income tax in France. Our businesses remain well-oriented. Our visibility is strong. All this delivers confidence to maintain the strategic direction we set in spite of the geopolitical turbulences or the political instability amplified again in the past couple of days. Thank you for your attention. I invite Christian Casser to give you the explanation of our financial elements.

Good evening everyone. Let's go into the details of these figures, revenue was up significantly at 7.5%, so including 4.3% organic growth. These growth rates are similar to those of last year. The geographic mix is unchanged. Limited growth in France, but strong momentum in Europe outside France, and you can see on the chart that we're looking at 15% to 20% annual growth Over the past five years, because of targeted acquisitions and strong organic momentum, 6% to 10% per year on our European subsidiary, on this half year, we have a 70.4% growth in Europe outside France, including 6.7%. In the works business, organic growth stood at 4.5%, and this is because we are well positioned on very promising markets such as transportation infrastructure, nuclear energy. electricity, transmission, renewable energy, wind power and solar plants, and of course strong positions in Spain and Germany, and in line with our investment policies, as Bruno Theret just said. And so 42% of works businesses outside France compared to 30% in 2021. profit from ordinary activities was slightly up 9 million this is limited in spite of the good performance and this is because we have a much higher expense for the employee share holding plan an additional 60 million in 2024 including 51 million in the holding company and 9 million in the concessions and so this is because The share price went up significantly during the period where employees could subscribe to the employee shareholding plan, and so this is completed, and all that amount was recognized on H1. Other than that, we have a 20 basis point growth in the works business, and so profit from ordinary activities was up 34 million, up 16.4%. where revenue was up 8.4% and a slight decline in concession. Then again, that's because of the shareholding plan recognition under IFRS 2. The construction business revenue was stable over the half year. The first quarter was significantly down, but the second quarter was up, plus 4.4%. New buildings, both residential and service property, commercial property, remained deteriorated compensated by renovation, especially energy renovation, public amenities and of course the gearing up of the NOVE contract. Property development was down more than 24% and in this context you can see that our profit margin was pretty resilient at 2.4% because of a very selective policy in picking new businesses but also being very careful to keep our SG&A under control in a very agile mode and so that means that our margins remain up in the building industry, not just in France, also in Belgium Fine performance over time, and that good performance of the profit margins in the works business is quintessential because property only generates 11 million in profits for ordinary activities compared to 24 million in 2024 for the half year. But still, that's a 5%. profit margin in the property business. And finally, our order book was pretty good, upwards of $5 billion, and that doesn't include the two new deals that you have on the slide that were very recently added. We published a reference guide on water and marine environments, and we just published this. We have specific applications. All our businesses are implementing this. That shows our ability to address the water shortages. Here you have the Combe project in Antibes-Juan-les-Pins. FH Aménagement d'Asparte V, Partnership Urban Development Project, is implementing integrated water management principles. to limit soil sealing, having expansion zones for natural floods, and recovering and storing rainwater and grey water. In the infrastructure business, we have sustained growth in France, inspired of a lower volume in metal. Eiffage Genicil was up 11.3% because of big operations. The Métro in Toulouse, the Lyon-Turin tunnel, motorway tunnel, and work in preparation within Penly and of course the gearing up of the 15 Est metro line. Eiffage Route in France had a growth of 2.5% in revenue compared to plus 0.7% in 2024 and internationally Eiffage Genie civil grew 8.9% with big infrastructure projects, the high speed lines HS2, the motorway in Norway and our German subsidiaries going up more than 6% still internationally for Eiffage Metall significant growth in revenue up 25% on wind project but also because of its German subsidiary SEH we don't mention it much but it works on metal bridges and heavy structures industrial structures renovation HSM has been integrated into our account since the 1st of June. So the growth in metal, which is stronger than the rest of that business line, so this business is less seasonal, and that has improved the profit margin, which stands at minus 0.2%, but as usual, we remind you that this is not... representative of the performance for the year as a whole. Éco-Aziz. Benoît de Ruffray mentioned that again. This is about district cooling and reducing the environmental impact of public facilities. On the picture, you have an operation in Belleville-en-Beaujolais, where buffer storage of about 500 cubic meters was built under the road. And this is a reservoir for vegetation that was planted along the road. and you also have water coming from the local drain pipes. Revenue from Eiffage energy system remained pretty dynamic, even though there was a slight decline in organic growth to 3.2%. In France, revenue was up 3.2%, so 2.7% in organic terms, and so it is outside France that we generated growth. on well-designed, well-targeted European markets, Spain and Germany in particular, with the acquisitions of the IFT this year and of course at the end of 2024. These two big markets are the main markets of that business line outside France and we have a critical mass upwards of one billion in revenue in both countries and we will be building on these positions. Operating profit margin keeps going up in France in spite of lower growth around the world, but our order book has been growing as well to 8.7 billion, especially in two countries I mentioned, up 700 million euros over one year in five months since the beginning of the year. Energy system has a new offer of diagnosis and detection of leaks in France. faucets without stopping operations. It uses high-frequency ultrasound mechanisms that can sense acoustic waves from the equipment. In concession, we find all our assets consolidated, not including Gettling. On the left-hand side, you have the end of the concession year and the holding rate. We have about 400 million euros in revenue in businesses not including APRR and RER. These are young concessions, so they are still a long way to go, and they are gearing up. You can see A79 is a case in point, where traffic was up 11.7%. One point, you have lower revenue for Nové. That may seem surprising, but this is part of the plan. This is because of... vacancies during work projects, and of course work projects have been growing up and so there are more vacancies. On APRR, traffic remained robust at plus 2.2%, including 2.6% on light vehicles. Of course, the comparison basis was favorable. There's a slight decline in the EBITDA margin. That's simply because of the additional charge under IFRS 2, the shareholding panel told you about, and that was a decline of 50 basis points for the half year, but that will be less over the year because the entire expense was recognized for this first half year. You may remember that the lower performance in 2024 was because of the tax on motorways And that amounted to 61 million euros for this half year. And we refinanced at the beginning of the year for the five-year period with the possible extension of banking credit lines of FRI and APRR. And we also issued a bond in May of 500 million euros, the rate being 2.875%. Regarding our other assets outside the APR network, we have the EBITDA margins, about 80% on motorways in France, with the exception of ALIA, and that margin is diluted by the service areas that we have there. On the right-hand side, we have the contributions of concessions and PPPs to the current operating profit for ordinary activities. as well as goodwill amortization. In 2029 and 2022, over 35 kilometers along motorways, we built multifunction water basins worth 50 million euros. So this is to manage surplus water when there are heavy rains. They also depollute water on a daily basis. and prevent accidental pollution. They're compulsory on new motorways, where we decided to have them also on all the sections of the APRA motorways with catching up work. A few words about Gettling that was consolidated on the equity basis since April 2023. On the right-hand side, you have the key figures at 100%. Gatling's contribution to net profit in the H1 is 31 million. You have three parts in that. Our quota of 130 million stood at 23 million. A leftover or residual quota for 2024, 15 million. And, of course, we have Goodwill amortization, a charge of 7 million euros. So that gives you the details of Gatling. revenue and current operating profit. On the other items, you have other expenses and other income and expenses, non-current, 24 million euros compared to 18 million last year. This is a net charge, but it was 28 million two years ago, so there's some volatility there. The net financial debt The net cost of financial debt is under control, down 5 million euros, but the new bonds for APR have been issued at higher rates than the previous ones, but the net debt is coming down. And then, of course, the key item in the whole story is the additional tax burden, up 50% to 353 million. That's because of the special corporate income tax tax. additional tax for big companies in France and this is of course over-represented in the half year because most of this is recognized upwards of 70% in the first half, 135 million euro. Its effect on the net profit group share is 83 million having taken into account the quotas from minority interests including APRs. So the net profit group share stands at 308 million. It would be up had the tax basis been unchanged. If you look at the net debt bridge, you have all the figures there. EBITDA was up 90 million, including the 60 million additional charge I mentioned. Dividends from companies on an equity basis, 72 million, mostly Getlink, of course. The seasonal variation at WCR is higher this year, 892 million. But for five years running, we actually had a surplus of 8.8 billion in cash, especially coming from works. And so after taxes and interest, we have operational difficulties. Cash flow is standing at 451 million in green, down there for 100 million. Then in red you have capex, higher in works and concessions. You're talking about development capex for new assets, and these have been growing. You have Novi, you have York Harbors, you have the A412, rather than renewal capex. So all in all, we're talking about 542 million in capex, and so the free cash flow is slightly negative, 91 million. You have the double effect of growth capex for consentions and higher seasonal variations of WCR. You have to keep in mind that cash per generation is structurally low in H1. Sometimes it's negative because of the seasonality of most of our construction and works. Businesses, external growth stood at 23 million euros, and these are the acquisitions of HSM and IFC. You might think this is not much, but that's because it includes, as a trade-off of CapEx, you have cash coming from these companies to the tune of 180 million euros. It's mostly negative WCR, so the cash generating WCR from these companies. And so the 23 million is 205 million euros for the acquisition per se, and 182 million of cash generated by these companies. And then in blue you have dividends, you have treasury shares, you have dividends paid by APR to its minority shareholders, and the dividends that we at Fage have been paid to our shareholders, 452 million euros, and so you end up with a debt of 9.9 billion down 700 million over one year. Of course, this was made possible even though we had significant capital expenditure. You may remember that in H2, 224, we acquired ECOS and then we had acquisitions this year. On the right-hand side, you have the debt, $9.9 billion. The debt is down $700 million. You have a decline in $170 million in non-recourse debt. That's in black. And then the cash available to the holding company and in the works businesses, $578 million. This is net cash. The gross cash managed at the holding company is $2.5 billion. And so at the low point in cash flows in the year, we have sufficient cash. to continue to develop our activities. On the order book, a few words were already mentioned by Benoit. The order book is up again. You have to keep in mind that even without major new orders, we've been renewing our order book in our legacy business with, of course, differences from one business to the other. You can see this on the right-hand side. That reflects variations on the market. Right then, that's an overview of the position. Thank you for your attention.

Place aux questions.

Q&A. Good evening. Thank you for the presentation. I have four questions. First, can you give us your feeling about the real estate market in France, given the recent turbulence in politics? Can we imagine that this will bear on the confidence of the households? I'd like to have your point of view on that. Second question about the variation of the WCR. What can we expect on the whole year? And on the German point of view, you also mentioned, can you tell us the quantity I mean, what could it mean for Eiffage? What can you hope as a contribution for the activity of Eiffage in Germany? And one last one, on the motorways, Sannef and Escota had a discussion with authorities on the investments to be made in order to make the motorways to be in good shape at the end of the concession. So what did you hear about those discussions? Underlying question. Is there a risk of surprise investment on the motorways? Thank you. About real estate, Olivier. Good evening. Not insight regarding the recent decision in the past few days we are on a market which is extremely impaired the market of the tertiary is altered residential market is really really impaired first half year this impairment was increased by the disappearance of the individual investors because the French system Pinel disappeared and to go in the direction of what you mentioned it will not be better in months to come the weakness of the delivery of building or construction permits we suffer a lot from that weighing on our offer so indeed no improvement to be foreseen in the months to come. Hence, we have to remain slightly optimistic. We're working for the medium and long range with our activity of redeployment, aggregating our expertise as a builder and a real estate. to work with the local collectivity in the various neighborhoods and in this period of scarcity of areas so we can focus on the medium range that will enable us to come up with operations when things will improve basically we have a decrease already we are very low I don't think we can go even lower because the real market today is the accession to ownership. So basically it's people who are in necessity to and who are paying to provide because we had no construction permit. But what is happening is never good for trust. Trust is really the engine for decision in terms of real estate. Christian, can you deal with WCR? Yeah, difficult. 160 million on works. This is where we have to be really attentive to WCR. Look at our balance sheet. We have an increase of current provision. So, we are in decrease of... And this decrease is explained We'll have a WCR that will vary. Slight increase. This is what should be taken into account with this difficulty to foresee the payment of our public customers by the end of the year. It's difficult to give you more precisions. I think we can anticipate a slight decrease. These variations of WCR on six months are erratic. But the WCA for the group in terms of days has decreased over a rolling year in June. Let me remind you the figures of 24. We had a cash exit of 700 and income 700, meaning that we cashed 1.4 billion in the second half year, 24. minus the 800 million that were shelled out in the semester, we have a reduction of our WCR in number of days compared to last year. If we have the support of the companies that we acquired, the decrease of five days, so we have a good global performance. One part is done over the major contracts that we are re-paying on the go, part of the equation depends on our question, our possibility to secure new projects, and that will secure less than what we secured in the past years. And so it is prudent to anticipate a slight release of cash by the end of the year. It's long and difficult, but we can really discuss that later. Thank you, Christian. Regarding the German plan, we have a lot of businesses which are exposed, since in the metal construction we are exposed on many railroad renovation, the major stations that were bombed during World War II, rebuilt, not a lot of maintenance. Well, today there's a lot of work to be performed. It's an activity that will take a lot of time. A certain amount of bridges, which are limited for the traffic in Germany. There are a tremendous amount of them. So, if you want to have a resumption of the economy, you have to rebuild the bridges. So, it's been some years that we're at between 10 and 20% of growth. At the end of that, We have men and women to all do that, and the capacity for me in the short run, it's a lot of visibility. I would say that the first good news of the German plan is the attractiveness of our businesses when there's a certain amount of restructuring in Germany. Our businesses are back to retaining people. and attracting people. So we're on the way to increase our workforce. It's the metal work, it's the civil engineering, it's the railroad, and the energy system district. We have also the additional challenge of the mutation of the energy in Germany. So the production of ENR, which are in the north of Germany, you have to bring them back on the industrial sites. We talked about the annual results of the major contract, which is a corridor of civil engineering. Once the civil engineering will be done, you have also to lay the cables. This is typically the activity of energy system work. But do not expect a tremendous step up immediately. And there's the capacity to prepare this project in terms of engineering. And all this needs, requires growth in the workforce. So what we expect, what we hope, will have the models, PPPs that will be an accelerator of the implementation of those projects. So medium-long-range is excessively positive. Short-range is going to take time to have a real effect in our activities. It remains excellent news for all of our businesses which are exposed. Last question was regarding the return of the motorways to the state. Thank you for this question. I want to tell you that the government is maintaining the highways, the motorways. They are well maintained. We are also meeting the indexes of performance as in the contracts. Regarding the end of concession, we are delayed because the termination of our contracts is in 2035-2036. We're not in the same level with the cabinet ministries. Our friends of SANEF in Escota told us that the discussion with the ministry went rather normal, and we anticipated also, because we're sharing as of now, with the cabinet ministry in very constructive terms. So it's biding well for the future. Other questions? Yeah, to extend the question of Éric Lemarié on Vermeulen, the German plan regarding the construction and defense, we have not to expect a fallback on 26, 27, this is what you mean to say, and on civil engineering in France, we didn't talk a lot about that what is the magnitude of the growth this year to be expected knowing that the FNTP after the good performance of 24 had forecasted for 25 and 26 it slowed down do you confirm? or are things improving? on the German part I think it's going to be before 27 but there's also you have to be conscious because some elements in this plan that have already been launched we acquired more certainty in their implementation because they are financed and those projects will be materialized earlier because the studies started things which were not foreseen and which are in this recovery plan will take longer It's going to take more time to ramp up. Regarding the French side, we have to separate things, really. You have the road businesses. Classically, we always heard about the electoral cycles. Municipal elections in 1926 are good news. end of 25 and beginning of 26, the good news is in the beginning is always bad news for the next period. So, what's important for you, you see it, we're in growth now, but it's not hyper-significant. There is a basic evolution compared to the former electoral cycle. The decision in terms of road maintenance is much more taken in collectivity of... municipalities and not for the elections and we have slightly more activity but the amplitude we experienced two or three elections ago which were tremendous before has globally disappeared has been totally mitigated this is the roadside where we have more problems to understand it's the department the French department, which is lost somewhere, there is no activity. The municipal part is working correctly. Then, on the other investments, which are more supported by the government, the major investments that we have experienced in the defense, on the major Greater Paris, on the nuclear, well, that will carry on. And we have orders and that will carry on, will be supported by those projects. Whatever happens nationally, we already have a tremendous activity to be implemented, so we have a visibility on that for the years to come in France.

Are there further questions? Yes.

Could you give us a little bit of information about the external growth pipeline of the Phage Energy Systems? What can we expect in terms of acquisition dynamics? Maybe also on the traffic of Apple II R this summer, if you could give us a little bit of how it went. You gave us a guidance on the operational margin of the Phage Energy Systems, so this year around 6%. And can we have an indication of what we can expect in terms of operational margin for the other professions of the Eiffage Group? And one last question about Gatelink. There are a lot of articles on Gatelink at the moment, on a future competitor to Eurostar. Sorry.

So many things are going on on Getlink's side. So any expectations on Getlink? Will you be buying more shares, getting a greater stake in Getlink? All right, you're talking about the Eurostars competitor and the purchasing of shares. Well, if there are more competitors, you could expect that the various players will see their share prices go up, so it's a good time to buy their share, no, or not? Well, look, regarding Getlink and possible newcomers, Well, you'd have to ask Getling about that. From a more general standpoint, and I said this before, what you have to realize is that the rail network, the French rail network or Franco-British rail network, This is a highly dense network, so it will be pretty difficult to add tracks and routes. I mean, you can't do that overnight. There are all sorts of issues, building or rather... operating railway stations, maintenance and such like. So Gatling has done a lot to address a number of technical challenges, but that takes a lot of time. I mean right now in France you have a train that might leave Marseille late because somewhere else in the country another train has run into delays. I mean, you have a complicated sort of Tetris-type network. And so one delay somewhere causes delays all over the country. And there are also issues of maintenance under investment. We all know about that. And that means that developments are very slow. in the rail business, but eventually you can expect more traffic in the channel tunnel, that may well be the case, it will take a lot of time, it will take a long time. We still have the long view for this asset, we're delighted we invested there, but I mean right now the concession won't start until 1986, so we have plenty of time. Ludovic, on organic growth targets and acquisition targets, by the way, I mean, you have to know before you make an acquisition, you have to make sure you can take it on board. Well, there were five acquisitions since the beginning of the year. So this is a sustained pace of M&A. Our strategy very much remains the same as last year. In other words, we are building up our presence in those countries where we do have a presence, either to cover the geographic area or to acquire new areas of expertise. And then in France, it's already a pretty tight network, and the only acquisitions would be for new areas of expertise. So we work on an opportunistic approach for possible acquisitions. And as you said, in Germany, we're looking at consolidating the acquisitions made Last year and the years before. But we see that the order book paid off. I mean, and even though these companies were bought up, they were still taking orders to the same pace. So there's no disruption there. And other than acquisitions, you have to know that we've been working hard in Germany. Our legacy companies there did not have the critical mass or the type of management needed to drive growth and to position. on the German map. So we had to make more significant acquisitions. We're taking them on board, as it were. There are four big markets, heavy industry, infrastructure, commercial services, and local authorities. And so We have a full coverage of the German market, but of course that means it has to be integrated into operations. But now that we have these platforms, of course, it makes sense to have bolt-ons with geographic or expertise acquisitions on much smaller companies acquired on a smaller basis, so easier to take on board. But most of the time, these have been identified by our own people working in one area or in one field of expertise. And so these acquisitions are much less risky. So that's what's going on now. And so in big countries such as Spain and Germany or the Netherlands, Belgium, France, of course, But also in Switzerland, we have now resident platforms that enable us to have bolt-ons, whereas before that we didn't have this ability in Germany. guidance on profit margins. There's no change really compared to the annual numbers, the annual profit on the construction business. I hope you can appreciate the performance of our construction teams because they were able to compensate the loss of profit, profit losses from poverty development and this was offset by developing the building industry. If over the year we can keep an equal profit margin, that would be pretty good. But even if it's down, it won't be more than, say, 10 basis points. On the infrastructure department, where we have roads of civil engineering and metal, there we hope to see some improvement in profitability. But I told you the same back in February. coming would have been disappointing if we did ask you about traffic road traffic well yes uh thank you you asked about road traffic the summer is not over yet because you have people coming back from their summer vacations so far things went well on an operation viewpoint in terms of traffic we're looking at a one percent growth compared to the summer of 2024 There's strong momentum on Aria, and that means that people love to go to the mountains for their summer vacations. You can learn from that. Maybe you can make your own summer plans based on that. Right, further questions from the floor? If not, we'll have questions online. Thank you. If you want to put a question on the phone, press star A. We have a question from Elodie Heil from J.P. Morgan. Sit down. Please go ahead. Good evening. And sorry, I couldn't make it in person. And thank you for taking my question. First question is about the energy business that you mentioned. Margins are up 30 basis points in Q in H1. And you're looking at 6% for the year. So that would be an additional 20 basis points for the year. But it would mean that the profit margin growth would slow down in H2. Is this being conservative? Do you think you can do better? Or do you have real reason to believe that margins will slow down in age, too? That was question number one. Question number two is about the effects on this special corporate income tax that you had, citing that you postponed to June. But the total impact of that tax is what will it be for the year as a whole? I mean, we're talking about $205 million, I believe, for the year as a whole based on the profits from 2024. But can you give us the full impact, the tax impact for the year as a whole? And do you have any expectations about what to expect for 2026? And what's your take on recent developments in the French government? Would that make any difference to Fage's business? And a question about dividends. If taxes keep going up, you increase your payout to 45%, do you think you could do still more to offset the tax effect? Ludovic, it's all yours. Right. Well, you have noticed that for the past few years we've been working on improving profitability. We've been doing this steadily. Of course, that doesn't prevent us from looking for growth, and the growth has remained steady as well in H1. And so current operating from... ordinary activities has been going up as well as Revenue, so I am I confident that we will make the six percent Margin yes and eight billion in revenue again. I'm confident that we will reach that number Well you should add to that that I What Ludovic was saying earlier on, we have to be very selective when we take new deals, new contracts. the 30 basis point improvement in the margins in H1. You find this in France and elsewhere, but in France the volumes didn't grow as much as internationally, so it's not exactly an offset, but it does mean that we're working on making our teams more efficient. And, of course, we'll do our utmost. A 6% margin is something we not only propose to achieve, but we want to improve as well. On the tax impact, Christian, well, I can't give you the net profit for the year as a whole. I mean, that will determine the tax level. But you may remember that the 135 million, because it was recognized in H1, that we expect to be roughly 70% for the year as a whole. So we're looking at about 200 million for the year as a whole. We can't give you the exact number. But the effect for the year, the full effect, not including minority interest, the tax effect would be about 200 million euros. And regarding the dividend, we did pay attention and our investors wanted to have a clear policy. Of course, we stated I would define a policy last year. We're not going to change halfway through. So we're sticking to that policy. Well, this special tax this year, of course, you can expect that this will have an effect on dividends. But nonetheless, the business is looking good for the year as a whole. And the board is well aware of the fact that we'll have to have a clear position at the end of the year to see just how we can pay out a dividend. Now, things are pretty unstable right now. Of course, we'll have to wait and see what comes out in terms of budget, in terms of possible changes in the corporate income tax in France. But one thing is for sure, that dividends policy, when we introduced it, that was well established. appreciated by our investors and of course investors want to have visibility on dividends and so we're working on that but I can assure you that this will be part of the discussions we'll have at the board when the issue of dividends comes up next year. Other further questions? Yes, next question comes from a call in English. Amigala from Citigroup. Please go ahead.

Two questions for me. Thank you. Two questions for me. The first one was on the outlook for offshore wind farms business, especially in light of the comments that we've heard from the U.S. government. What are your thoughts on this outlook in Europe? And in terms of your conversations with your customers, are you seeing any signs of delay or hesitancy or funding constraints that they are facing for this business? My second question was on the CAPEX. You know, can you remind us the level of CAPEX that we should be targeting also on the back of the acquisitions that you've made and the orderable growth that we are seeing? Thank you.

If I'm right, your first question is concerning the change of policy in U.S. on offshore energy? Is it right?

Yes, on the wind farm business.

On the wind farm. First of all, as far as Eiffage is concerned, you have to understand that we've carried out only a very limited number of projects in the US. We've always been fabricating directly from Europe and we were shipping our pieces towards some US wind farm. one of the project used to be stopped and at the end of the day has been resumed and has been finalized is fully given and we have not any more project so we have no exposure in terms of our order book towards any US project and our full activity is based on European project We are obviously cautious because some of our clients in Europe are the same as the one being exposed to US and there are some further issues on the strengths of these clients because they are facing some changes on the US. But as far as today is concerned, we have not any exposure being expected from what's going on in US on all offshore activities.

The question is about capex and especially acquisitions. You were only concerned about external growth for capex, but we don't think in terms of annual capex for acquisitions. I mean, that would be a a risky exercise. The cash available is significant and it enables us to seize external growth opportunities, but we don't have an annual budget for acquisitions in terms of capex. But you have a question about capex in general for works, for instance. Here we're looking at about $700 million for the year. as a whole, and we're looking at about 700 million as well in concessions for renewal and growth capex, including 300 million on APRR model work. But I think you're concerned more about acquisitions, capex on acquisitions, right?

Yeah, it was more in terms of incrementally do we have to budget in more because we've got a stronger order book as well as we've acquired a few large businesses.

Once again, I mean, we adjust capex based on opportunities as they show up. We don't budget ahead of time based on the cash available. No, I don't think we can be more specific than that. Right, and on that part of CapEx related to concessions, I believe we give you our outlook. Yes, we have 300 million in renewal CapEx for APR and 400 million. On the other concessions, a significant portion, about $300 million. On the Nove contract, that's been gearing up. And the remainder, we're looking at yacht harbors and assets that are being operated. And then we're just looking at renewal, CapEx. Other questions?

question from Graham House from Jefferies please go ahead thank you just two from me please first on construction like for like in Q2 obviously ticked up quite meaningfully is there anything you can help us with in terms of what we should expect for the second half of the year there just in terms of growth and how we should think about the phasing of some of your larger projects and then second question just coming back to the uncertainty around future tax burden in France is there anything that you've done sort of analysis or something that you can speak to to help us understand the the scope of impacts that we could see if corporate tax rates were to go back to a more normalized level from current levels. Thanks.

On taxes, we do not have more visibly than you have. The aspect linked to the political instability Currently in France, the overtax is temporary. In the world of today, it is temporary. And the corporate income tax is at the level it was inscribed in the law in France, i.e. 25%. The only issue we can add, the topic we can add, is that the exceptional contribution to tax, you know, there is a piece of constitution of equality before tax, and given the very important character of this is implemented, making that certain amount of people do not imagine this being implementable in several years, but the change in position and in evolution on the rate itself implemented in France, well, this is part and parcel of things that are a government may decide in a financing law. Your first question was about the construction side and on the volume. What we already said during the annual results last February is that we intended to get back to growth in the volume on construction. as of 25 we have seen it since we had a first quarter which was negative and at the second quarter the growth was enough to offset the decrease so we are again on a growth 3.6% on first half year and we expect the second half year that will be still growing more growth on construction also which is an excellent piece of news given the very weak market of real estate, generally speaking, due to two things. First is the ramping up of renovation projects and construction. And the second element is the non-typical character of Eiffage by this contract of NOV, which is construction and renewal, giving us a surplus of... sales as compared to last year. It's the combination of both enabling us to have a growth in sales. You have a first indication in the presentation, which is the part of the Book of Order, which is growth. So we will do it during the second half of the year.

Next question.

No more questions for the time being. Any other questions in the room? Well, no more questions. Thank you very much for your attention, all of you. And talk to you soon.