Seche Environmnt Unsp/Adr

Good evening. Welcome to the Séchelles Environnement call. During the first part of the call, the microphones will be muted. At the end of the call, you can put your questions via the webcast by clicking on the button or by phone, hashtag five on your telephone keypad. Over now to Baptiste Jeannot and Manuel Anderson to start the call. Let me tell you, there's also a call in French. If you're listening to the English and you want the French version, just click on the link under the video. Over to yous. Thank you. Good evening to you all. Thank you for joining us for this call. Sorry for the slight delay owing to some technical issues on Teams. So we're going to present together with Emmanuel the consolidated results of Cichéen Environnement for H1 2025. and then we'll discuss the outlook for 2025 and beyond. So, to begin the highlights, next slide please. So, H1 highlights overall the group has maintained dynamic growth both in France and internationally in a more complex environment. After a good Q1, we have an acceleration of activity in Q2. Worth noting on activity, the successful integration of ECO that wasn't consolidated in H1 2024, so there's a scope effect with solid activity, 37 million in revenue in line with H1 2024. acceleration in activity to date with the implementation of the carbon soot incinerator more about that in due course on the historical scope of basics of comparison that was low in h1 but good operational and commercial performance, very sustained activity in services, remediation and urgency overall, an increase in operational earnings in spite of the drop in energy prices. That's an important factor that will implement both H1 in 25 in the analysis and 2025 and an uncertain geopolitical backdrop that is promoting a wait and see attitude by our clients, notably in the chemical sector, strong cash generation, financial flexibility that is Significant return to the target leverage below three. We indicated that to you when we presented the annual results and the outlook for 2025 where in line with that target and then successful refinancing of the eco acquisition achieved in March of this year. We'll return to the targets for 2025 and 2026, but we have nevertheless some cyclical effects leading us to reduce the short-term increase in operating margins. As you know, we plan to improve by one point the EBITDA margin in 2025, given the declining energy sale prices and overall of our economic prospects. We're rather expecting not to reach this improved one-point increase in the EBITDA because of the macro content. Planned acquisition of Group Flam, that's a major strategic transaction announced a few months back on the market for hazardous waste in France. Manuel, yeah, by way of an example, during the course of. The first quarter, we had some major successes. The Val-au-Loire that kicked off this year, that's the metropolitan area of Nantes, the remediation of waste, LCA, that's a public contract we've been managing since 2021. 2012, an initial duration of 12 years that was renewed at the end of last year, 2024, kicked off. First of it, there are two contracts. There's an operating contract of some 20 years, a contract totaling some 180 million euros. So 20 years that, of course, strengthens the sustainability of non-hazardous waste in Western France, where we have strong positions in the circular economy and hazardous management. We're not on the right slide here would appear. Oh, here we are. So there's a second contract, which is a construction contract of some 300 million euros to extend capacity, doubling energy output of the facility, notably in electricity. There's an SPV running there. P2M Build Co., and we own 50.01% with our Paprec Energy France, who's the constructor of these new facilities. So we have secured the funding for this construction. Half of it linked to subsidies and to the capital injection by shareholders and a bank loan of 160 million. Some fine commercial successes in services, as Baptiste mentioned, confirming the strong demand for environmental services both internationally and France. That's linked to strengthened constraint linked to the strengthened requirements for industrial activity and environmental and biodiversity protection. So this Good performance affected all our service activities, comprehensive remediation and meeting environmental emergencies, with the exceptions, as we'll see, of chemical cleanups of our Spanish subsidiary, Salarca. If I take industrial waters, STI... You, our specialized affiliate, won some major successes with the commissioning of a biological waste facility of 7,000 cubic meters that will be operated by STIE near Valence and, of course, mobile units, RIOS, which includes the treatment of PFAS is those of you who follow us on social media such as LinkedIn were able to see the details of these achievements. So we're pleased to see that STEI is progressing according to the roadmap set out. that we mentioned remediation in terms of France and international activities that are driven by regulatory requirements in France. For example, we rehabilitated a beach in Brittany, that was a landfill that was threatened by rising water levels. It was a tricky operation, a very sensitive environmental area that was listed natural 2000, constrained by tidal effects with that. we found some asbestos content in some of the landfills containing household waste. That rests on requirements. This is to resolve certain coastline landfills, 110 landfills in France due to be resolved in order to protect the coastline. the La Seine ILAS project that was a contract signed back in the summer of 2024 that contributed on that scope in terms of billings, it's the largest remediation project ever implemented by that will run for three years. Environmental emergencies, that's a response to industrial accident, good level of activity, contrasts with the, I'd say, the weakness of these businesses barely a year ago, with also exceptional scope contracts. As an example of that, we have the Grand Couronne site there meeting the consequences of a fire in an industrial facility. That's the photograph that you see here, maybe rather small. It seems pretty apocalyptic. Lithium batteries, very reactive, highly flammable, that polluted 6,000 square meters of these industrial facilities. The worksite ran for 17 weeks that was completed without incidents for the locals, for our employees. And internationally, spill tech had strong activities, notably in marine areas. pollution remediation activities. That's an example of a few major service contracts leading to a billing peak, notably in Q2, refinancing, successful refinancing of the ECO acquisition. First new green bond for some 400 million euros completed in July, but after the closing of a tap of some 70 million euros under the same conditions. with an improved issuance price at 105% of the par value, total of 470 million, improving our RCF, revolving credit facilities, thereby boosting our liquidity. Back to Baptiste. Well, thank you, Manuel, for those details. Let's move to the next slide, please. So the financial indicators contributed revenue 580.1 million euros up organically of over 7.5%. So that's dynamic growth both in France, 7%. EBITDA coming in at 118.2 million euros with an increase of the margin at 20.4% versus 17.5% last year. Current operating income at 49.1 with a margin at 8.5% up. Net income group share doubled over the same period versus last year with very dynamic performance. Free operating cash flow coming in at 63 million euros, broadly similar to last year, to reduce the net financial debt. of the group going down to 813.7% reduction of the debt and financial leverage, taking into account the second half of 24, first half of 24, coming in at 2.9 times EBITDA. Over now to Manuel for details of the revenue.

We can even skip that one and arrive on the next one. To take things in the order, we have a progress of 13.8% in relation to 500 Last year, you know that this reported revenue includes a non-contributed revenue that includes a rebilling of IFRIC 12. Those are the investments we make on our concession assets. The amount is only 0.6 million this year versus four last year. Last year, we still accounted for investments. on the incinerator we have in Montauban as a consensus which is moved. Most of the non-contributed revenue is the TGAP, the tax we collect for the state in which we repay in October every year. Let's now look at the contributed revenue, 580.1 versus 505 last year, a very strong increase of 14.8%. Please note a forex effect that is negligible with different evolution between the different currencies, but the amounts that offset one another, they're limited. Please note that even though that has no impact on the figures of H1, A degradation of the dollar, Singaporean dollar parity versus euro in relation to last year, about 8%. The scope effect is 37.1 million euros. That is the contribution of ICO. which you have seen in detail in the previous table, detailed by Baptiste. If you look on a like-for-like basis, growth in revenue is 7.5%. It compares with 24H1 that was weak, especially for services. Growth is quite balanced between the French and international scopes. As I said earlier, it is carried in France and abroad by the services sector, Spain notably, I will tell you more about it, and also characterized by the drop in France of circular economy activities. This means that energy prices have kept going down in France, notably electricity, and also the fact that some purification activities have also been reduced, meaning that some customers in the chemical sector are waiting. We will see that this is also true in Spain. Finally, We will see in the following slide that there is a sensible acceleration of growth in the second quarter. The second quarter has an organic growth of 8.9% versus 4.5% in France. That comes from invoicing of some worksites. I'm thinking of Gran Curon, for example, which I've already alluded to. Internationally, the growth is more sustainable because it is linked to long-term service contract, notably in Latin America, comprehensive contracts, remediation contracts in Chile. with an invoicing, a peak in billing that adds up to the good quality of activities of Spiltek in South Africa. Now that we are on this graph, I would like also to tell you about the very brisk activity in H2-24. Regarding last year, ECHO is now integrated. 18 million per quarter on this H224. We already had contributions in France, a remediation contract, an emergency contract, so it is a strong basis for comparison. We already said so during our previous results in last March. We have a strong basis for comparison, therefore, whereas we're expecting more normative activity, contribution of our service activities for the second half. Next slide. the contribution of the different scopes, we see there's a very positive evolution of most geographical areas outside of Europe. France, 65% of the contributed revenue, with an actual figure of 379.9, an organic growth of 7%, which is in itself a performance because this growth absorbs most of the negative effects of circular economy activities that are impacted by the drop in energy prices and also the drop in volume of some purification and solvent regeneration activity. In Europe, slight A reduction in growth, 85 million, that is 15% of the contributed revenue, minus 2.7%. It is mainly because of Spain. Vals Chemica in the sectors of purification and regeneration, volumes have gone down, especially for Solarca, for chemical cleanup in Spain. and in the world, in Europe and in the world, working with petrochemical industries where a number of worksites are delayed. In Italy, the second important market for Seche, markets are sound, notably with a good performance of Furia in polluted soil treatment in connection with rehabilitation contracts that are very dynamic in Italy. If you look at Southern Africa, Namibia and South Africa, Very strong increase in revenue, plus 15.7%, 51.4 million. That represents 9% of the contributed revenue. Good performance of Rent-a-Drum in Namibia. That is doing well in hazardous waste. Same thing for inter-waste. And also spill tax performance is to be mentioned in the area of environmental energy. Latin America, a very good growth of plus 44 percent. That increase compares to H124, which was particularly weak. That is related to the implementation of large service contract, global offers in Peru, remediation in Chile. All this gives a very strong impulse to our growth in this area of the world. One word about Eco-Singapore, even though it's not part of the scope, 37.1 million, 6 percent of the contributed revenue of the group. That amount is quite close to H224, if you remember. It also integrates a negative forex effect. We're continuing the ramp-up of the new carbon suit incinerator. which should be fully working at full capacity in 26. If you look in the next slide at the evolution of the business mix, we will see first The circular economy segment down by 4.5 percent, 162 million euros. That includes a scope effect, 5.5 for ECO. Organic growth minus 7.8 percent. The main scope impacted here is France. That is impacted by the drop in energy sales price, 4.6 million euros in terms of negative effect. We have volume effects that are positive. The price effect is minus 5.1 million euros, and we will see that in the EBITDA later on. France is also impacted by a drop in some purification and regeneration activities, hence this performance that is worse than last year's. A very strong increase in services, as we already said, with an organic growth of 20.6%. Good activities in hazard management, organic growth of 3.5%, a scope effect that is significant. I'm referring to ECOS activities that contribute to that figure. Those markets are sound in France, plus 2.8 percent volume and price effects that are positive. Especially, once again, internationally, you have Peru, South Africa, where you have a growth of 16.3 percent in connection with the development of hazardous waste management activities. If you look by sector, the different evolutions, the hazardous waste sector is doing very well. 72% of contributed revenue, €416 million. Organic growth of 11.7%. percent, quite balanced between France and abroad. France, 257 million, plus 11.9 percent. is excellent performance because it even integrates the impact of the disappointment we may have about recovery of materials. It also illustrates a growth of 11.1 percent abroad. because of the good development of our hazardous waste activities. As for non-hazardous waste segment, it's weaker. Growth in total there is only 2%, 163 million euros in terms of organic growth, minus 1.4%. In France, it is fully impacted by the drop in energy sales price. with minus 2.1% in France, and modest growth internationally, plus 0.9%, representing the non-hazardous waste activity in interwest in South Africa. I'd like to give the floor back to Baptiste for operating performance. Thank you. We can go to the next slide, please. We're going to start by EBITDA, which moves to a plus 34%, 16% organic. We have an improvement of a margin to 20.4%. That is a good performance when you look by country. We have an EBITDA in France that is organically growing, plus 2%, 20%, which means that we have good resilience on this market. It shows the ability of that market to improve. We do have some leeway to improve our profitability. The EBITDA margin moves from 22.6%, which corresponds to an extra 2.5%. Regarding the international section, given the scope effect, We have EBITDA of ECHO, 15.8 million. The EBITDA margin with 43% for ECHO, that has an accretive effect on the EBITDA margin of the international section and the group, as Manuel said. On the organic historic scope, we have quite a mixed vision globally with an EBITDA that is globally stable under performance of Spain. Solaka, Vals, this having an effect on EBITDA and an overperformance of Chile and Spiltek in South Africa. Next slide. When you look at the volume and price effect, The usual slide. We note, of course, a very strong dynamic of the volume effect with the contribution of service, remediation, emergency, France and abroad. In France, price effects are close to zero, but there is no break in the trend. We still have commercial positive effects. on our historic scopes, but those effects are offset by the energy price effect that reduces or cancels those positive commercial effects. We have variable expenditures that are growing because of the increase in volumes, and globally we have Payroll expenditures that have a negative impact because they are growing by 16 million euros. That is also related to growth. I've already told you about the scope effect. Regarding next slide. We see the same trend for the current operating income, both in France with substantial improvement in operating margin, 2%, 7.2 to 9.2, two points. which is significant. We also see the relative effect of ECHO on the international with an operating margin of ECHO of 31 percent, allowing to have an international margin of 7 percent. Slight increase in depreciation provision in France. with full year effects on the amortization of development investment in purification and also leasing contracts in the areas of industrial effluents in sanitation, a slight increase in the customer provision. There is no risk, but given that is related to the method we apply, we have an extra provision. When you look at the P&L, next slide, Not much impact between the current operating income and the operating income. Financial income, €20.6 million. As you know, The acquisition of ECO was carried out for a share in the form of debt. The gross debt has therefore increased between the first half of 2024 and the first half of 2025. The increase in financial expense comes from that. We've improved... the rate of the funding of the gross debt. Regarding corporate income tax, we've reduced the effective rate to 26 versus 36 percent last year. This comes from the integration of ICO with corporate income tax in Singapore, which is 17%. If you go down in the P&L, you see an increase in minority interest. That comes from the net income for minority interest, mainly ICO's income. minority interest. And as was saying, the net income group share has doubled between H1 and H124 and H125. We see a control of industrial investments. We were very cautious last year for 33 million last year. We have a global envelope of 110 million this year, but we have realized only 35.6 million euros. We're very cautious in this first part of the year. Next slide. As I was saying, all this translated by a lot of generation of free cash. You will note that we have a good management of working capital requirement. a resource for this first half of 2024, 15.7 million euros. So, we're now operating a free cash flow of 63.2 million euros and a conversion rate of 53 percent, which is significant. You see on the right-hand side, as I was saying, this free cash flow generation means a reduction of net financial debt to end of June 25.

Moving to the next slide, improved financial flexibility. You see the liquidity situation, $550.6 million, $333 million of active available Treasury invested cash and cash equivalents that today means strong liquidity. as Manuel pointed out, the topping up of our green bonds in July that also improved that liquidity position with overall a financial leverage and a balance sheet that remained solid, leveraged 2.9 times, which is on target. Next slide. I won't Go back on the issue achieved extension of debt maturity to 4.6 years by noted that there are no major maturities over the next few years, not before three, four years. So all that means gives us visibility on our liquidity position that remains extremely solid. Let's move straight to the next slide on The outlook for H2 2025, as I said, we have business which objectively remains dynamic even if H1 2024 was weak. Operating margins we expect to see impacted by energy, low prices compared to what we'd anticipated. We expect a contribution that will be more normative, emergency and remediation business. As you know, those businesses sectors where there can be some upside between now and the end of the year today in our forecasts we're not factoring in any one-offs that might occur between now and the end of the year as you know As we demonstrated the past few years, we have good business resilience, excluding chemical purification, essentially on hazardous waste management, on multi-year service contracts, giving us good visibility in H2. Internationally, we have a situation, as we saw in H1, that's contrasted broadly speaking in Europe, more uncertainty on the part of our clients on CapEx and on their activity, primarily in the chemical sector, which is a major customer base for us. In Latin America, we continue to expect dynamic business with a good level of activity. In Chile and Peru, overall greater visibility because the momentum in this part of the world is stronger. And therefore, given the contracts that we've garnered there, we expect positive developments in H2 in Southern Africa, good activity from Spiltek, more complex activity by Interwaste, given the exposure of South Africa on the tariffs imposed by the United States. And in Asia, in H2, we're expecting overall momentum that will be broadly similar to H1. What we're expecting is the beginning of a ramp up of the carbon soot incinerate with what was planned with our client was a ramp up that would start in H1. That didn't occur. It started in H2 and today volumes are rising and We're expecting the beginnings of an increase in H2 and an increase in 20. It's really just a shift as compared to what we anticipated. And that's, of course, in no way down to the eco team still with profitability, as we saw that remain significant on the basis of the operating profitability circular economy where expecting our assumption of energy sale price will remain low with a more normative contribution of service activities and internationally overall. similar to what we saw in H1, a lower performance by Spain, and as I indicated, an improved profitability on a par with the size of these areas in the group, be it Asia and Latin America. Financial structure against that backdrop is, of course, a priority. We're going to continue to maintain it very solidly, giving the focus on cash flow generation and solid financial structure. CapEx, the 110 million in CapEx, that number will be adjusted if our bidding cash flow isn't achieved by the end of the year. We continue to anticipate a high level of free cash flow and financial leverage below three times, excluding acquisitions. looking at external or one-off factors. That's on the next slide. Liable to impact short-term operating margin growth. We have decrease in energy sale prices, essentially electricity. The electricity price has dropped sharply, and that is having a direct impact on biogas that is turbine and converted into electricity. It has a direct impact on the price of steam that we sell significantly to sales. This, of course, has a more significant impact on H2 of the energy volumes that will be produced in H2. We saw that we just had a negative price effect on H1. We'll have a negative price and volume impact in H2 with less production of biogas in H2 and less steam output. This is estimated the impact in terms of EBITDA is estimated at some 15 million euros. I'm anticipating a question. It won't be offset by improved energy purchases, even if we're really at the limits of the group self, sufficient because on energy prices we have a tax hike that's significant, special contribution to the electricity utilities, increasing the taxes on electricity. transmission that's included significantly for electricity, impacting notably France on energy purchases. So we won't see a drop in energy purchase prices in H2. Overall, we could expect a reduction in energy prices to be offset by greater momentum in our activities. As we indicated, because of the macro context, we're not anticipating a strong rebound in Europe in H2. We're not anticipating either a strong increase in ECOS EBITDA versus last year, given the increase of capabilities and carbon. will be shifted to 2026. So this leads us to a revenue target that is confirmed, 1.280, limited increase of EBITDA margins between 250, 260 million euros, a reduction of about 15 million euros. the electricity price impact indicated. That's one point on EBITDA. Outlook for 2026 are subjected to the same trend. Outlook for 2025-2026 don't take into account the FLAM deal. Two, draw your attention to the prudent on the outlook for 2026 because overall that outlook is a constant scope and will be adjusted at the investor day, incorporating de facto the new eco prospects and those of the FLAM group. if the transaction is authorized by the competition authority. It doesn't, of course, incorporate all the possible synergies as part of those transactions. Moving to the next slide. Just to run through briefly the planned acquisition of Group Flam. This is... transaction that is subject to the green light of the antitrust authorities, we're expecting a go ahead by the end of the year. If it's that green light of the competition authorities that will allow us to complete this transaction, we already have the opinion of the staff employee reps that are positive, so we're just waiting on the competition authority now to close this deal. Flam Group is essentially three business units. Firstly, hazardous waste management, ARF, present across the value chain from collection through incineration that accounts for about half the revenue, 47 million euros. ARF is broadly 100 million total. ARF, 125 employees. essentially two incinerators today. One incinerator authorised at 180,000 tonnes, processing solid waste that is used to some 130,000 1,000 tons at Vendée in an incinerator authorized, 70 processing liquid and gas, some 50 million tons, so that's ARF. That's a very significant component for us because It would allow us to have a market on hazardous waste management in France of some 26% placing a second after Veolia in hazardous waste management in France. On Flam Assini, small sanitation, that's about 24 million in revenue, nine branches, including one in Belgium, essentially industrial customers. Very good fit with our positioning today, about 200 employees pumping. maintenance of industrial facilities working with clients that we know very well and we supply them with other services and full suite offering that's interesting flam that's devoted to environmental services for all types of waste, recyclable, ordinary waste. These are multi-year contracts, about 26 million revenue collection and recovery of waste. I'll stop there because we've taken up a lot of time and we're now available to answer your questions. So, ladies and gentlemen, if you have a question over the phone, please press hash and five on your telephone keypad to join the queue. If you wish to withdraw your question, please press hash six. You can also put a question directly from the webcast by clicking on the pictogram with the hand on your video screen. I think it was all very clear. So, first question comes from Arnaud Palliez. Please make sure that your microphone is unmuted over here. Yes, good evening. I hope you can hear me. Good evening, Baptiste, Manuel. I have a few questions for you. So, the first... is that of course we knew that in terms of contributive revenue organic growth that H1 would benefit from a favourable base effect. I wanted to know if It's in H2, given what you gave by way of outlook, that we can expect organic revenue growth close to the mid-term rate that you announced, which is of 5%. So that's my first question. I'm getting the... rather unpleasant feedback in my headset. I can hear myself speak. We seem to have lost our questioner. Arnaud, are you there? Arnaud, can you still hear us? Yes. Yep, I can hear you. So, please ask your next question. You heard my first question. Yeah, because... I can hear myself speak, getting the feedback. You noted my first question, which is in H2. Can we expect revenue growth of constant scope broadly similar to the mid-term guidance of some 5%? Or would we be below that figure? And then I've got questions on the chemical sector. We see that... It's negatively impacted by energy prices, but also volume decreases. I'd also like to know if this is a sector that's generating a higher operating margin than others which would partly account for the decrease in the EBITDA and current operating income targets. Hansa, have you got any more questions after that? Well, maybe on ECO briefly, what I've understood from what you said is the contract with Linde had been kind of shifted in time, deferred, postponed, and how much does that represent in terms of revenue volume? And in H2, will there be further eco-impact in terms of scope adjustment? And the third point on ecos today, could you also give us an update on progress of developments of CDC? Have you kind of looked at possible growth avenues with CDC? Thank you for those questions. So the first question.

First, mechanically, we've given you the annual guidance of 1.180 billion, which we have maintained on revenue. You can infer the revenue for H2 25. So we're expecting a growth that will be lower than the mid-term growth. But careful, as you have seen, I don't know whether you remember the slides about quarterly activities. Look at slide eight. For example, we had an H2 that was extremely strong, whereas H1 was globally weak. especially in the first quarter. Regarding Q4, we have Q4, 319 million, particularly strong. So H2-24, the benchmark is very strong and mainly Q4 in 24. De facto, there will be this base effect on Q4 that will penalize... The organic growth, as you have seen, that in H1 was slightly above the long-term growth, related to the fact that H124 was weaker. I hope I answered your question. Regarding the chemical part, be careful, because for us the chemical part is a very important customer in Europe that is related to various activities in Seychelles Group. We have mentioned solvent regeneration and purification clearly impacted because typically when large chemical companies or thinking about stopping a kind of output when they're reviewing their output there's global wait-and-see policies that is impacting that part and also the management the hazard management ie we also incinerate solvents therefore incineration is also impacted so you cannot talk of a single margin In our chemical sectors globally, we have no significant difference between the margin in the group and the margin in this sector. Yes, you have mentioned Linder. I don't know whether we can say it or not. Linder is our customer for the carbon suit incinerator. Eco had built an incinerator for Linder. Linder has a new kind of production in biofuels that generates carbon suits. carbon soot, and the incineration of carbon soot was subcontracted to Eco with an in situ incinerator on ECOS premises. So we were expected that Linde deliver the carbon suit as of H1. It wasn't the case because in the building on Linde's plant, there were some delays. That can happen when you have production. So carbon suit production has started in August. So all of the tests, the ramp up of an incinerator takes time. The tests were not carried out in H1. They will be done in H2. Globally, we will see a slight improvement versus H2. But the bulk of it, which is quite significant, we're talking about 20% of ECO's revenue on a four-year basis that will be in 2026. It's not related to ECO. ECO is doing a remarkable job, but we depend on Linde's ability to deliver the volumes as they produce it. Regarding development with CVC, As I indicated, we're looking at the growth of new products. We have expertise for some products. There are things we can duplicate in Singapore. There are real avenues we've identified. Those tools will be built in 26. We will tell you more about it when we secure the contracts with the customers. The advantage in Singapore is that we can build an incinerator for carbon soot. They were able to build that on the basis of a contract of 20 plus 20 with Linda. We're securing contracts to be able to carry out development investments on Echo's side. I hope I answered your questions. Yes. ECHO was consolidated on July 1st last year. There's nothing to be expected in H2 in terms of ECHO's contribution to the scope effect. Not to the scope effect. If there is something to be expected, it won't be a scope effect, but it will be organic growth coming from ECHO. Very clear. Thank you. Jean-François Grandjean has a question. Yes, Mr. Grandjean, you have the floor. Please make sure your microphone is unmuted. Yes, good evening to all. Just one question, please, regarding the international section. You have an organic growth at the international level, which is a good performance. We're talking about organic growth nevertheless. you have a margin, the EBITDA margin is not so high, whereas the scope is constant. So how come the margin is reduced? Very good question. Globally, there are several elements explaining that margin reduction. When you look at Latin America, be it Las Salinas or the major total waste management contracts we've signed in Peru, it's the beginning of those contracts. It means that we have costs at the initiation that are accounted for as OPEX when we answer those call for tenders. So there is a lot of equipment that is accounted for as OPEX. You won't see that in H2, be it the La Salinas or total waste management contracts in Peru. We will have dynamic activity with an improvement. There will be a margin improvement in H2 on that scope. When you look at the activities that have underperformed, indicated by Manuel, be it Solarca, be it Vance, or to a lesser extent Interwaste, today we have the same costs associated with those companies. It is something we are in the process of working on, the management of those costs between those periods, the higher periods. They are productivity impacts. We will find them also in H2. It will be visibly a bit mixed because you will see costs But afterwards, that reduction will allow us to have an improvement when we have more activity, for example, in Solaka or Interwaste. Very clear? If I understand you, we can expect a better contribution in terms of margin at the second. Yes, historically at the international level for international historic geographical areas, yes, we can improve. We can expect margin. No more questions for now. I'd like to remind you the way in which you should do it. If you are on the phone, you can ask a question by clicking on the pound key and then five. You can also ask a question directly from the webcast by clicking on the small pictogram representing a hand on the video player. We have a question from Eric Blain from Finance Connect. You have the floor. I'm unmuting your microphone. Good evening. Can you hear me? Yes, we can. Good evening. Yes. I wonder about the H1 margin in France. reaching quite a good level. You talked about a peak in invoicing. Is that in the emergency sector? Is that what explains part of this margin that is particularly high? Yes, in Q2 in France, we have finalized a number of major contracts. I've described some of them. We've totaled in terms of revenue about 20 million euros related to those emergency contracts. do have quite a substantial margin, which has contributed to France's good margin over the period. So in the second half, maybe we have to be more cautious about France's level of margin. Well, what is acquired is acquired. For the second half, indeed, Regarding our restoring market services, hazard management on those markets, we have no break in the trend globally. If there's no remediation contract, we will have a marginal improvement of the margin at X energy prices. So it will mainly be related to volumes, yes. And do you think that we don't know what can happen in the emergency sector, but to this day you have no idea of what could happen in this sector? No. In fact, as you said, we cannot predict emergency situation. How do we manage that? We try and be... present everywhere, there could be an emergency situation. So our assumptions today should not take into account any major contracts. To this day, we have no new major contract realized. We are September 10. Typically, the 20 million contract, we didn't know about at the beginning of the year. We didn't know about it during Q1. It did occur, and those few weeks of operation have improved our performance and our activities. That is intrinsic to the emergency activity. Today, we haven't made those assumptions. So there's no good news related to some bad news, because usually emergency is bad news. Yes, you're right. Typically... This was an emergency remediation we had to do after a fire to work at the level of the table water. Any other questions? We have no other questions for now. Maybe I can... ask you one last time. If you want to ask a question, you please press the pound key and five. You can also ask your question directly from the webcast by clicking on the pictogram on the video screen. Otherwise, we always remain available if you have any other questions. You can send them by mail. You will find my mail on the website and on the presentation. Gentlemen, we have no other questions. I don't know whether you want to conclude. Thank you very much. Have a good evening. Thank you for having attended this call, and see you soon. This concludes today's call. You can all log off. Thank you.