Seb Sa Unsp/Adr

Good morning everyone. Welcome to this GroupSEP 2025 full year results presentations. I am Stanislas de Ramon, Chief Executive Officer of the Group and I will be doing this presentation together with Olivier Casanova, our Chief Financial Officer. Right, we will cover the following points in this presentation and of course after these presentations there will be a question and answer session. The points of the agenda will be the key elements of 2025 regarding sales, our results, our financial structures, what have been our ESG achievements, We will talk about the growth relaunch rebound plan initiative that we've announced today to our employees and shareholders and we will conclude. Then we'll take of course your questions together with Olivier. As way of introduction, I think it's fair to say that 2025 performance is closing on a better note. We are in line with the targets that were revised in October. We've confirmed and launched the rebound plan that we again announced in October. And if I step back and look at the overall year, we have a very slight organic sales growth, 0.3%. We are in a complex environment, yet our small domestic equipment markets remain resilient. Our results are down in 2025. Yes, we have good sales growth in floor care, in linen care, in cookware, and this is supported by good product innovation. We have a very dynamic growth in e-commerce, especially via our direct to consumer sales. We've seen, as you know, and we've talked about it through the second and third quarter of the year, significant cyclical headwinds on currencies, on Americas, on professional, and that impacts around about 120 million euros in operating profit through 2025. And we also have An acceleration in the transformation of the environment, in terms of go-to-market, in terms of digital activation, and this is what triggers our launch of the rebound plan that is designed to bring the group back to a profitable growth trajectory. Now, if we move into numbers, 2025, December, we have sales of €8,169,000,000, up 0.3% like for like. Our offer is at €601,000,000, down €201,000,000 versus last year. That translates into an operating margin of 7.4%. As a result of that, the net profit group share is 245 million euros. That compares to 232 million euros, but you will remember that last year's net profit was impacted by the Competition Authority fine of 190 million euros. We end the year with a net financial debt at 2.34 billion euros that is 2.152 excluding this competition authority fine and that's 226 million euros versus the end of 2024 and the board is proposing to the General Assembly a dividend of 2.8 euros per share stable versus This will be approved in the AGM of May 12th, 2026. Now, if we go into the analysis of the year, starting with the sales, as I said, we have a slight organic sales growth in 2025, 0.3%. To note that we still have a pretty substantial currency effect on our sales, 2.5% of net sales. It's not extraordinary, but it's pretty steady and we expect to have a comparable one in 2026. The scope was contributing to 1 percentage points with the acquisition of La Brigade de Villiers and some phasing into the integration of Sofilac, leading to net sales of 8.169 billion euros. If we break it down by activities, we see that the professional business reports €995 million on sales, up 2.1% in reporting, minus 6, minus 5.9% like for like, with a fourth quarter better, fourth quarter at 6.7% growth, flat like for like. Whilst on the consumer division we have an overall sales growth of minus 1.6 reported but plus 1.1% like for like with a fourth quarter essentially similar at 1% like for like growth. Now if we look at the consumer business and if we look at the overall business we have in fact two blocks. We have on the left side EMEA and Asia which are around about 60-65% of the group sales which have grown respectively 2 and 2.7%. In fact EMEA without the loyalty programs grew 2.8%. So two-thirds of the business has grown by 2.8%, 2.7%. On the other side, we had the Americas that have declined by 4.9% with the US at minus 4.5% and the professional business that has declined by 5.9%. And these two represent around about 30% of the overall group business, 25% of the class. And that I think explains why we say that this year is a contrasty year in terms of sales performance. Now, if we look a bit more detailed into the quarters, let's start with North America. We started the year great. We started the year with Q1 at 4.9% growth. It was great. Then we had two dips in Q2 and Q3 at respectively minus 11 and minus 14%. And the ratio, in fact, the Q4 adds at 4.7%. And if you remember, we said in Q2 and Q3 that we had We were suffering a client's latency attitude and that we would see a normalization of the activity in Q4 that we have observed. Equally, on the professional, we started the year with a very negative first quarter that was expected, a minus 21%. That has recovered through Q2 and Q3 and leading to a flat Q4. We'll come back to that, in fact, right away. We've seen a stabilization of the business in the second half. And if you look at the details of that business in the second half of the year, we have a contrasted situation. We have good momentum for machine deliveries in Germany and China, which are roughly 40% of the business, and strong growth in services, which is great. We have double digit growth in new regions like Eastern Europe and the Middle East and that has been tempered by a wait-and-see attitude of customers in the United States in parts due to, I would say, that tariff hike on Switzerland of 39% that stayed around between mid-July up until mid-October to end of October and in parts to caution in implementing CAPEX in machines from large US customers. On the other side, on the positive side, on the professional business, we've integrated La Brigade de Bouillet in our culinary activity that is showing very, very strong growth driven by high-end stainless steel counterware and online sales. Beyond numbers, in the professional business, we have started production in our Profession Coffee Hub in China. I remind you this is an R&D center, it's a processing, it's a production facility. We constructed it in 2025, through 2025, started Sell your production early in 2026. That's an investment of approximately 40 million euros and I'm very happy to share with you the first two machines that are coming out of this hub. Beautiful machines and you see that the number of cups per day which is a way to qualify the The type of customers the machine is aiming for is contained, 50 cups per day, 80 cups per day. And that reflects our priority to focus these machines on the small businesses and the offices segment, which is a great new business opportunity for professional coffee machines that we want to exploit. And those machines will be the spearheads for our development in that new segment of professional coffee. When we move to consumer sales, we have, through 2025, mixed performances and overall moderate sales growth. By geography, we are moderate growth in EMEA, I talked about it, 2.8% ex-loyalty, excluding loyalty programs, with maybe two, again, here, a contrasting situation. We have 11 markets with growth at or above 5%. We have an underperformance in Germany that we need to deal with. We've returned to annual growth in Asia and particularly in China and in America we have seen sales decline with a gradual normalization in North America through the end of the year. When you look at our product lines, we have great momentum in cookware, in kitchen utensils, in floor care and linen care. Those are all supported by a strong product innovation with a slight decline in kitchen electrics And last, on consumer sales, we see our online sales up by around 10% organically, supported in particular by direct-to-consumer sales. Let's do our round-the-world exploration, starting with Western Europe. Western Europe posts 1.1% growth in 2025, 2% like for like, 2.8% if we exclude loyalty programs. Again, our sales are up in almost all Western European countries, bar Germany. France is positive, excluding LPs. And the momentum, again, is still very positive in cookware. We see very successful innovations. I'll talk about that in a second. We have less buoyant categories and I think that explains in part our difficulties in Germany, grills, multi-cookers and overall our market shares on the segments we operate on are stable. In the other EMEA countries, we have good organic sales growth, consistent organic sales growth around 10% in Eastern Europe. Turkey keeps growing, driven by our key categories and a very strong development of online sales. We've seen disturbances in Africa and the Middle East and very much related to the geopolitical environment. Now let's look back at 2025 and look at what happened on the product front. The first thing and the most important thing that happened in 2025 for us on the product side is the very, very strong and powerful expansion of washer vacuum cleaners. We've reached almost 100 million of sales in year one. We have a number two position just behind a Chinese competitor, way ahead of all our traditional British or American competitors. We've also expanded fast in the spot cleaner segment, great products, 25 million sales in year one only, number two in a market that we were not presenting a year ago, a remarkable achievement. And back to our core categories, we've launched this year a garment steamer with vacuum function, which is called Aerosteam, that has contributed to delivering 90 million in sales in garment steamers in Europe only, double GD growth, strengthening our number one competition. So we see that our development in Western Europe and in Europe has been driven by strong innovation. Beyond that, we mentioned a couple of times through the year that we had some challenges on our historical core pillars, and Cookeo is one of them. Cookeo is a remarkable, long-standing successor of the group, launched in 2012. Unsp-Adr Unsp-Adr Unsp-Adr showing that, and what is this product, it's a Nafraier and pressure cooker combined equipment, very very strong popular success, very strong success with influencers, very strong talks on social networks, I think that also shows us a way to evolve our marketing, we'll come back to that later. I mentioned a couple of times that cookware is a very strong pillar of the group, We have a multi-material, multi-coding strategy. We are leaders in all those codings and materials. And we've posted again, I would say in 2025 in EMEA, a growth of 10% in that category. Very strong pillar for the group. Going west to the Americas, we commented it vastly in the course of the year. So North America finishes the year at minus 4.5% like for like. You see the effect of currencies, I think it's around minus 9, minus 10 in reported. I will not expand again on something that we've very, very often discussed. We have the direct and indirect effects of changes on U.S. tariffs that created weight and certitude with U.S. customers. We see through fourth quarter a better alignment between sell-in and sell-out and that is the explanation of sell-out-sell-in recovery. We have consolidated our market shares in our core categories of cookware and linen care, and we see Mexico that still is a strong country but has a volatile year, yet to be noted a very good acceleration of online sales in a country that was a bit backwards. Coming to South America, South America is skewed towards the fans business, which is very climate or weather dependent, La Niña is a cold weather phenomenon and that has impacted our fine sales through Latin America, particularly in Brazil. Yet we see very strong performance in Colombia across all categories, including our fine business. And when I step back and look at our North American business, maybe something we don't often enough talk about, which is Alclad. Alclad is an American brand of premium cookware. And we celebrate again, year after year, very strong successes. It's local, it's premium, it's in the U.S. Sales have been growing around 10% per year over the past five years. We're leaders in the premium cookware in the business. We increase our U.S. local production, and we've increased it by more than 50% over the past three years. And we're now implementing complementary capacity investments in Cannonsburg, Pennsylvania. to expand again the capacity. So that shows that we have not only a mainstream business with DeFi market leader in the US, we also have the leading premium US brand in cookware. Going south again, Colombia is a good example of how we are expanding our business. We have double-digit organic growth in Colombia and have had so for the last couple of years based on very strong historical positions in fans and cookware to which we've added number one position in food preparation and more recently number one position in the full automatic cooked coffee machines. We are creating the market in Colombia and I would say also in Mexico that is for us a good relay of growth in this part of the world. Going east now with an Asian business that has recovered growth both in China and in the rest of Asia starting with that rest of Asia the good news of the year is the return to growth in Japan and a good momentum in Southeast Asia We have a slightly weaker performance in Korea. I think the environment in Korea is a very challenging one. Overall we have success in cookware and the growth in SEA is more mixed between categories and markets. China has returned to organic growth in a broadly stable market in 2025. We are confirming month after month, quarter after quarter, year after year, our online and offline leadership in our two core categories of cookware and kitchen electrics. We've seen successful launches, rice cookers with stainless steel bowls, titanium woks, garment steamers with vacuum function. I think there's still a strong dynamic on innovation in our Chinese business. and we see some very strong dynamics of the online segment with a never moving online landscape and if we go to the next slide we see that something that we've talked about in the last three to five years which is the expansion of social commerce with a very rapid growth in China. 25% of support online sales are now in social commerce, and that's tripled since 2021. We leaders in China in exact segment, including on Douyin, Douyin which is TikTok in China, both in kitcheneretic and in cookware, and we see developing instant retail, which is through platforms with very, very short direct delivery, Instant Retail is a channel that grows very strongly in 2025 and we are already number one in this new channel of sales, new channel in this alternative way of doing online sales in China. As far as social commerce is concerned, we see a strong development outside China. We've opened in 2025 alone 13 TikTok shops in various countries in the world, following or anticipating the development of this platform. I now hand it over to Olivier to share with us the financial results of the year.

Merci, thank you Stanislas. So let's move to the main numbers. So as you can see we achieved an ORFA of 601 million for the full year which is 25% below last year but at the high end of the revised range which we had indicated back in October of €550 to €600 million. This translates into an operational margin of 7.4%, which is, of course, a disappointing 230 basis points below last year. If we look at Q4 now, as you can see, we delivered €334 million of ORFA, which was, I would say, only 6.7% down versus 2024. You have to remember that 2024 was the highest ever. And so with this performance in 2025, in fact, we are delivering the third highest ORPHA for a Q4, very close, in fact, to the performance of 2023. And this was, in terms of operational margin, 13.3%, only 80 basis points below last year. Let's look at the bridge now. As you know, and we talked about this in earlier presentations, we have a very complex year, so you will find the traditional Orpha bridge back in appendix, but we thought it would be more telling to identify and isolate the three cyclical headwinds that Stanislas talked about. So, as you can see on the full year, we confirm what we said before. We've had three distinct conjunctural impacts. The first one, of course, is North America, which has impacted us by 40 million compared to the prior year. This is a combination of two effects. On the one hand, it's the fact that we increased prices to compensate the negative impact of tariff, but there was, of course, a time lag. The tariff were implemented on beginning of April and the price increases happened at the end of the second quarter. And the second element, again, which Stanislas highlighted, we had in Q2 and Q3, Minus 4%, minus 14% in sales as customers adopted a wait-and-see attitude given the significant volatility and uncertainty regarding tariffs and in particular changed also the way they imported the product from direct import to local sales. Secondly, on currencies, we had a negative impact of 40 million, which is, again, two things. It's the delayed positive impact from US dollar and CNY as we, let's say, went through our inventory. And we had only, in fact, a positive, a small positive impact for the full year. And we'll talk about this in a second. The second element, of course, which is by far the biggest, is the negative impact from emerging markets. You know that traditionally we are compensating the depreciation by implementing price increases. We operate, of course, in a high inflation environment in many of these countries. And this year, because of the depreciation in particular of the US dollar versus the euro, we were not able to compensate as much as we traditionally do, and this impacted us by 40 million. And then the third element we already talked about is the fact that we had a very high basis of comparison in 24 with, in particular, very significant order in China. The last element is what we call other effects, which is the growth, volume, price volume mix effect, and the COGS effect on the rest of the business. We had positive volume effect, not as much as we would have liked, and insufficient price mix effect, and this is in large part why we are, of course, launching the rebound plan. We'll talk about this in the rest of the presentation. Now what is interesting is to look at the Q4 performance on the same parameters because you can see that the three cyclical headwinds in fact turned around in Q4 as we had expected. So first on North America you can see that we were flat in terms of profit versus last year. Of course we regained growth with 4.7% organic growth. The markets have been progressively normalizing. Again, we are not going back to the situation we had in the U.S. market at the beginning of 25, but nevertheless, we are seeing a progressive normalization. And secondly, of course, we have the full benefit now of the price increases which are compensating the negative impact on tariff. The second element on currencies we had finally the strong positive impact from the depreciation of the US dollar and the CNY as you know which are two currencies where we are deeply short and therefore we have benefited from this positive impact in Q4. And then finally on professional as we've explained we returned to growth in the second half and we were flat Unsp-Adr But it's true that it's lower than our expectation in terms of volume effect and in terms of price mix. And this is why, again, we've launched the rebound plan. Now, how does this translate over, let's say, the fourth quarter? You can see that in H1, we were around 50% below the prior. We have closed partly this gap in Q3 at minus 25% and then we are very close to the prior in Q4. If we now move to the rest of the P&L, you can see that this translates into the 601 million translates into an operating profit of 502 million the main element of course is the line other operating income and expenses last year of course we had the significant impact from the fine from the competition authority which cost us which was provisioned at the time for 190 million. This year we have a total charge of 81 million which includes 24 million of provision and expenses related to the rebound plan. We have in particular taken some impairment related to the decision on certain industrial sites. This translates into a net profit group share of 245 million for the full year, which is, of course, slightly up on 232 million last year. But as you know, the 232 included the fine from the competition authorities. If we move to the working capital requirements, as we had warned, we are on the high side compared to our traditional target of 15% to 17%. The, let's say, relatively good news is that we are back to the same level as last year in terms of inventory. You remember that at the end of H1 we had an inventory which was significantly higher than the prior, so we have managed to bring this down to the same level as last year. It is still Unsp-Adr And we have also a slightly lower amount of payables, as you can see, at 13.2% versus 13.8% last year. Again, this reflects the slowdown of production in the second half to adjust the inventory level. So we are determined to bring our working capital requirements back to the range of 15 to 17%. in 2026 and this will be done in part by optimizing our inventory level we think that we have some way to go and therefore are confident to go back to our range If we move to the free cash flow statement, you can see that I've mentioned the working capital variation, of course. On CapEx, as expected, we are slightly on the high side also because we had, of course, to finish the significant investment in our new professional coffee hub in China, in Shaoxing. We have also the completion of the Tilchatel logistics platform in Europe for cookware. And so this explains that CapEx was slightly on the high side. And I don't comment on the other elements. This brings us to a free cash flow for the full year of 124 million. And interestingly, we had a strong free cash flow generation in H2 at 337 million this year. So, let's now bridge to the net debt level. So, in terms of dividend, as you know, we had 150 million euro of dividend payment for the mother company, SEB SA. And in addition, we continue to repatriate a significant dividend from support. And this means that we had also 50 million paid out to the minorities. In acquisitions with, let's say, a relatively modest year in terms of acquisition spent, mostly attributable to the acquisition of La Brigade de Billets and to a smaller extent to some investment in SEB Alliance. This brings us to a net debt level of 2.152 billion excluding the fine and 2.342 billion including the fine of 190 million. In terms of financial structure, we have still a very strong financial structure. Of course, our financial leverage ratio has increased to 2.7 times, 2.5 excluding the FCF fine. This is in large part due to also the decrease in the EBITDA. But we are determined to bring this level back to the comfort zone which as you know is around 2 between let's say 1.8 and 2.2 and we are determined to do this starting quickly in 2026. We retained, of course, a very strong financial flexibility. We have continued to optimize our financing structure in 2025, including by refinancing with a new bond issue successfully placed in June, a bond issue which was vastly oversubscribed. We, of course, continue to have no covenant in our financial debt and financial security, which is very high at 2.5 billion and including 1.5 billion of committed but undrawn backup facilities. That concludes the section on financials. Let's maybe move to the ESG progress. Now, as you can see on the next slide, we have made progress on our objective to reduce GHG greenhouse gas emissions, so we are down to 23% versus the reference year of 2021. This compares to, let's say, minus 18% in 2024. So I think we are making good progress towards our target. This is due to various initiatives. Of course, the deployment of solar panels in China in 2025 and will continue in 26. The deployment also of an energy management tool, which is continued in 25. and various energy efficient equipment for example on injection molding machines. We are making progress also on the health and safety front with lost time injury rate which is down to 0.76 versus 0.81 in 2024. This is due in large part to the deployment of training program across the group. Finally, on let's say our objective to reduce indirect greenhouse gas, as you can see, we are down minus 9% versus 2021. We have made several significant progress in 2025. On the recycled material in particular, as you can see, we are now at a level of 52% of recycled materials in our product. This compares to 34% only in 2021. And we've made particular progress on recycled aluminum, which is now at 51% versus 9% in 2021. We are also making progress on energy efficiency in particular both from let's say product design to usage by encouraging of course the deployment of Eco Mode in our products. And we are confident of course to reach our target of minus 25% by 2030. Finally, these progress were recognized by various rating agencies. We've seen notable improvement in our ratings in 2025 and early 26. I will just point two of them. On sustained analytics, we have moved from medium risk to low risk. And on MSCI, we have moved from triple B to single A. So again, very good progress recognized by agencies. That concludes my presentation. Stan, I hand over to you for the rebound plan.

Thank you very much, Olivier. So the last section of this presentation, I would say before the question and answer, of course, session is around the rebound plan. And I would start with the start. The start is our mission. Our mission and our ambition. Our mid-term ambition is to grow our consumer business, strengthening our global leadership. and to become a reference player in the professional business. This to serve a mission to make consumers everyday lives easier and more enjoyable and contribute to better living all around the world. And that is what drives us in this plan. Now when we look at what makes us believe that what makes the group very strong, the first one is we have very strong world leading positions. We have 75% of our sales in markets where we have a leader position, number one and number two. Of course, we are number one in professional full automatic coffee machines. We are number one in cookware. We are number one in linen care. We are number one in electrical cooking. We are number two in blenders. And that is a very strong base to start from. We make over 80% of our sales on our top 5 brands, Tefal, Supor, Moulinex, Rovinta and WMF. When we go a bit further in details, we have a strong global presence. We are the most international brand or company in our industry. We serve every distribution channels and of course, yes, we are overrepresented still in the offline business, but that's because we started very strong in the offline business. We have an extensive product offering covering several products, many product families which allows us to create and to have balance between those families that become very popular and those families that are more stable in some instances. And last but not least, we have a diversified industrial footprint having over 47 factories worldwide in Americas, in Europe and in Asia and a good balance between what we make, 61% of what we sell and what we source, 39% of what we sell. So we see the group as a very solid position, very balanced position and that explains I think the successes of the last decades. At the same time, we see an acceleration in the transformation of our environment. We see acceleration of innovation, the launch cadence, the variety of product that becomes a key element of marketing, which moves from product-centric to consumer experience-driven innovation. Communication has become social first, and that's a good transition to the second point. We see a fast transformation of the brand-consumer relationship, driven by social media, Driven by influencers, user-generated content, influencers today are the number one source of information for new products. Ratings and reviews have become paramount, and real-time data management in the way we activate and we market our products becomes a must and a given. We see an acceleration of the shift in the go-to-market strategies and in the way and the places consumers buy products from. The speech of the last 5-7 years was the development of e-commerce. Now the talk is the development of direct-to-consumers, brands selling directly to consumers, social commerce that is expanding very fast as we've seen. Omnichannel is now reaching a new maturity. And last, we see the rising importance of sustainability around repairability, around product lifespan and managing that lifespan, energy efficiency, refurbishment, second life. All these elements create an imperative of speed, An evolution of our marketing practices and the evolution of the resources we invest into marketing. And this Reburn plan, in fact, is designed to return to a profitable growth trajectory. And every word is important. Reinventing our growth model first. We want to act as a leader in innovation. We want to systematize a new marketing and e-commerce practice around the globe and we want to accelerate the development of ourselves in the most promising segments. We will restore our profitability through this plan by simplifying our organizations and operating methods. We want to increase our purchasing and industrial efficiency in all fronts and we want to reduce our overheads. And last, we will strengthen our stakeholders engagement. We want to nourish and evolve the connection and the involvement of our consumers. We want to create more desirability. We want to develop meaningful innovations carried by inspiring brands. We do a lot of that already. I mean, every day, 400 million consumers use our products. We've sold over 2 billion products in the last decades. But we think that we can update that element of our interaction and connection with consumers. And of course, we will only do that thanks to the engagement and energy that our employees put in the transformation, in this transformation day in, day out. Now concretely, what will that mean? That means faster launches and more impactful innovations. We use some KPIs just to illustrate that. We want to accelerate our time to market for innovations by a third, gain 30%. We want to have over 80% of our key innovations reaching 4.5 and above Ratings, and that will be developing new categories, new usages, that will be co-developing products with consumers and with influencers, and of course that will be on the consumer front, but also on the professional front, and the Hub in Shaoxing will be a centerpiece of that too. I mentioned we need to evolve our digital marketing and e-commerce practice. There's a strong evolution of marketing and the way we interact with consumers with a strong skew towards social media and influencers, and we will indeed focus our efforts on social media, on influencers, We will accelerate the production of targeted contents through the use of artificial intelligence. We will guide our marketing investments much more through systematically using data. And we will increase the allocation of resources on the online sales, including direct to consumers. Now, to give you some color, as we say, on those matters, that is material. We will triple our social media investments in the course of the next two or three years. We'll multiply by three or add one billion views of our influencer videos in the next two or three years. and we will increase our active consumer base in our CRM platform by 2. There will be an efficiency dimension in this plan. We want to reduce complexity, we want to regain operational agility There will be a strong focus on data and we will generalize the use of artificial intelligence as and where as an enabler it can help the business run more automatically, run faster. We will simplify our product ranges. We have some complexity in our product ranges. We will simplify our organizations and processes. and we will reduce materially our indirect purchases amount, massifying and harmonizing our needs between all parts of the business. And again, here are some KPIs to illustrate that. Our SKU ranges will decline by 25% to 30%, depending on the category. We'll have a 5% to 6% reduction in the addressed indirect purchasing envelope, making it a material area for saving. Now, if we wrap up the financial part of this rebound plan beyond the recover growth part, we expect 200 million recurring savings by 2027 on this plan with three areas of cost savings, indirect purchases, industrial efficiency and overheads that will have a potential impact of up to 2,100 positions worldwide. of which 1400 in Europe and this will include potentially 500 positions in France that will all be made on a voluntary basis. We will accrue mainly in 2026 the cost of this plan and will disburse mainly, mostly in 2027. As far as the one-time plan cost is concerned, we see between 1 to 1.25 times the recurring annual savings. Voilà. As a conclusion, We start by a statement that is very, very traditional in the group. We know that the group's business is very much skewed towards the fourth quarter. In fact, last year's fourth quarter, is over 50% of the annual profit, so usually we don't give financial or quantitative guidance at the start of the year, we wait until July usually to do that. Now, what we see and what we can say in 2026 as a guidance is that We want to return to growth in ORPHA in 2026. This is clearly a clear priority. We want to go back to a more normative free cash flow generation. That's also something that we need to bring back into our usual trajectory. We will lower in 2026 our financial leverage with the objective, as Olivier said, of returning to the group standards of Round 2. by 2027 that of course excludes acquisitions but more importantly and I think the analysis of 2026 the results of the fourth quarter and the deployment the first deployment of the rebound plan that we want to execute in in under two years confirm our ambition to go back to our midterm ambition that is to remind you a target of five percent annual organic sales growth Thank you very much. We'll now hand over to you for your questions. Thank you sir.