Spie Sa U/Adr

Welcome to the SPEE 2026 half-year results presentation. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to Markus Holska, CEO, to begin today's conference. Please go ahead.

Good morning and thank you for joining us for SPIE's 2026 Half-Year Results. I'm here with Jérôme Vanhoef, our Group CFO, and Alexandra Bonazel, Head of Investor Relations. This is my first Half-Year Results call as Group CEO, and I'm pleased to be opening it on the back of such a very strong first half-year performance, marked by further margin extensions and excellent M&A strategy execution. It also reflects broader long-term trends, particularly around Europe's accelerating drive towards energy and digital civility, which will continue to create attractive opportunities across many of our end markets. I will also start with a few projects to illustrate this. In Germany, we are building the FRAS 7 AI-ready data center for first colo in Rosbach-Vorderhöhe. The project will provide 16 megawatts of IT capacity and is scheduled for phase delivery through to the end of 2028. We're carrying out 75% of this project ourselves in-house under our one speed model, covering all critical systems from power distribution and cooling to fire protection and building automation. The facility is designed to meet very high energy efficiency standards and will run on renewable electricity. This is exactly the type of project where being present across the full value chain makes the difference. Investors who joined us for our data center site visit near Frankfurt at the end of June thought firsthand on another project. We see more and more opportunities of this kind as demand continues to grow for integrated, energy efficient data center solutions. In France, EDF has entrusted speed present on the budget side since 2011 with maintaining the highest level of cybersecurity for the strategic systems that monitor and manage nuclear waste processing. Three SPIE entities are working together on this project, combining nuclear, industrial and digital expertise. I was able to see this myself during my recent visit to SPIE's nuclear operations in Gravelines. It was my first visit to a nuclear site as a CEO and a great opportunity to witness the depth of expertise with our teams and how the one SPIE model brings together complementary skills to deliver critical services to our customers. This example in LeBuget with EDF is a good illustration of both the trust our nuclear services franchise has built over more than a decade and how our one speed capabilities are becoming an increasingly important differentiator for speed. In Belgium, We're delivering the full electrical integration of a large-scale battery storage facility, including 180 Tesla battery units and a new substation for a project worth more than 100 million euros. Battery storage at this scale with several hundred megawatt hours of storage capacity is still relatively rare in Europe. and this highlights our strong positioning in energy transition infrastructure. It also demonstrates the strategic value of the European Framework Agreement we signed with Tesla in 2025 with several ongoing negotiations for additional projects across Europe and different stages of development and of various sizes. More broadly, battery energy storage systems becoming a key market for speed across a broad range of customers and technologies. Moving to Central Europe. Over the past few years, our acquisitions have significantly expanded our capabilities in Central Europe, enabling us to deliver increasingly complex integrated projects like this one in Poland. Here, we have deployed a full telecommunications and building management system for the new Academy in Poland, including fire detection, voice alarm, CCTV, access control, intrusion and gas detection, all on a single-digit platform. The project was delivered in a particularly demanding environment with around 100 acoustically insulated rehearsal rooms requiring bespoke installation solutions. Now moving to the key H1 highlights. Revenue growth accelerated with organic growth rebounding as expected in the second quarter. Our EBITDA margin continued to expand. Working capital management was outstanding. We kept a dynamic pace of both on M&A and we are today confirming our full year guidance. This is a very strong first half year performance building on the record results achieved in 2025 and confirms that our positive momentum continues in 2026. More specifically, looking at the key figures of H1, revenue reached 5,157,000,000 euros, up 3.6%, including 1.2% organic growth plus 2.7 from acquisitions. EBITDA was 321 million euros up 6.9% with margin extension of 20 basis points to 6.2%. This is a very solid trajectory in line with our permanent commitment, gradually increasing our margins year on year. Our leverage ratio increased only moderately by 0.2 times versus H1 2025, despite more than 640 million euros of cash out for M&A since the beginning of the year. Let us now focus on revenue growth. Revenue grew 3.7% in H1 at constant exchange rates. The rebound in Q2 confirmed The progressive catch-up scenario we had outlined following the weather-related disruptions at the beginning of the year in Germany and in Central Europe. Germany grew by 4.6% despite a demanding comparison base of plus 15% in H1-25 and Central Europe was up 13.9% supported by sustained M&A activity in 25. France grew by 1.2%, a resilient performance overall which deserves a deeper dive later on in this presentation. Northwestern Europe returned to positive organic growth despite a demanding comparison base of 8.1% in H125. Global Services Energy continued to operate in a more selective market for oil and gas activities and was further impacted by the Iran conflict. Overall, this performance underscores the strength of our model with its well-balanced geographical footprint and diversified multi-technical expertise. M&A activities. In H1, we announced five new acquisitions representing around 670 million euros of combined annual revenue. In Germany, we significantly scaled up our industrial services platform with Rofa Industrial Automation and SGS Industrial Services, adding together 610 million euros in annual revenue. The closing of SGS is expected in Q3. We also completed three targeted, both on M&A and Central Europe, adding together around 60 million euros of revenue, Block Group in Czech Republic, in Viso in Slovakia, and Nimec in Switzerland. As usual, all acquisitions are expected to be attractive to adjusted EPS from their first year of consolidation. Meanwhile, the integration of all 2025 acquisitions is progressing well and according to our plan. Looking ahead, we continue to see a robust and well-diversified pipeline of hold-on acquisition opportunities across all our territories, enabling us to densify our footprint, further move up the value chain, and create more value through the deployment of our 1C approach. Looking to our EBITR margins. We delivered a further 20 basis points expansion to 6.2% following the 40 basis points increase achieved in 2025. Germany and France contributed positively with margin expansion of 20 and 10 basis points respectively, while Northwestern Europe delivered an exceptional 90 basis points increase. These three segments represent together 90% of the total EBITDA in H1. In Central Europe, we expect a catch-up in H2. At Global Services Energy, the margin evolution was entirely attributable to the dilutive impact of the former Wobur wind activities, while the underlying business remained resilient in a selective market environment. Once again, this margin expansion reflects our unwavering focus on rigorous contract selectivity, pricing discipline and a high quality of delivery as well as a favorable mix across the group. Looking at the segments and starting with Germany. Germany delivered a remarkable performance in H1 despite the demanding comparison base with organic growth accelerating to 7.3% in the second quarter. This was driven particularly by high-voltage and city networks, confirming the progressive catch-up scenario we had outlined following the weather-related disruptions flagged at the start of the year. Beyond this catch-up effect, underlying activity remained very strong, notably in technical facility management. Building solutions continued to benefit from sustained demand in data centers as illustrated by the project example I shared earlier in this presentation. ICS strengthened its cybersecurity and audiovisual offering through recent acquisitions while industry service delivered another solid performance across automation, logistics, pharmaceuticals and LNG. Acquisitions contributed 2.2% to this growth reflecting the acquisitions of PIC and Saqueo in 2025, while the acquisitions completed in 2026 are expected to support growth further in the second half of the year. EBITDA margin increased by 20 basis points to 5.8%, reflecting continued operational discipline, rigorous contract selectivity, and our pricing power. France, strong dynamic in four main activities, good resilience overall. Revenue in France increased by 1.2% in H1, driven by a 1.9% contribution from the Artemis acquisition, while organic growth was slightly negative at 0.7%. Looking more closely, 4 out of the 6 divisions continue to deliver dynamic growth while the slowdown in mature fiber rollout programs and the selective market environment in building solutions continue to weigh, as expected, on the performance. Technical facility management maintained a strong trajectory while industry proved resilient by demand in solar PV and battery energy storage systems. ICS continued to grow at a healthy pace in cloud, cybersecurity, and data management, and nuclear services delivered a strong performance, underpinned by a high level of maintenance activity in the frame of the Grand Carinage program. The 10 basis points EBITDA margin improvement to 6.2% is a clear illustration of the strength of our business model and the quality of its execution. Northwestern Europe delivered a strong performance in H1 2026. Organic growth was 1.9% against an exceptionally high comparison base with momentum building to 4.7% in the second quarter. In the Netherlands and Belgium, T&D remained a key growth engine driven by substations and power distribution networks. Growth also benefited from continued expansion in data center services and battery energy storage systems as illustrated by the project at the beginning of the presentation. EBITDA margin expanded by an exceptional 90 basis points to 7.8%. This reflects continued operational discipline alongside a favorable mix effect in first half, especially in energy transition services. Central Europe delivered total growth of 13.9%, mainly driven by a 12.7% contribution from acquisitions. reflecting sustained M&A activity in Poland, Switzerland and Austria in 2025. Organic growth rebounded strongly in Q2 with 7.3%, initiating the anticipated catch-up and fully compensating the weak Q1 impacted by adverse weather conditions. The Eurobook continued to build, providing strong visibility. Poland and Slovakia saw continued strong demand in high voltage, supported by grid expansion and energy transition investments, and tunnel infrastructure projects continue to underpin activity in Austria. The 90 basis points declined in EBITDA margin reflect the more seasonal profit recognition pattern and the temporary impact of unfavorable weather conditions in Q1, amplified by smaller scale of the countries within the segment. Global Services Energy Revenue declined by 4.6% in this semester. Against the more selective market environment for oil and gas overall, operations in the Middle East were further impacted by the conflict in Iran from March onwards. Wind activities, on the other hand, continue to grow, supported by the successful integration of the international wind operations transferred from Germany. While the EBITDA margin on the historical perimeter remains stable, it decreased by 40 basis points in H126 due to the diluted effect of these wind activities transfer. Thanks a lot very much for this first part. I will now hand over to Jeroen.

Thank you Marcus and good morning everyone. Let me start with our income statement highlights for this first semester. Revenue grew by 3.6% to €5,167,000,000 EBITDA reached €321,000,000 up 6.9% at a combined share of the 20 basis point margin expansion as said to 6.2% and the total gross. Adjusted net income increased by 11.9% to €187,000,000 reported net income rebounded sharply to 112 million euros, which I will further comment on. I'm now moving on to the revenue bridge, which provides a breakdown of our 3.6% total revenue growth in H1 2026. As already pointed out, organic growth contributed plus 1.2%, including a significant rebound to 3.1% in the second quarter, following a weaker Q1 at minus 0.9%. Our Bolton M&A activity contributed 2.7%, or approximately 130 million euro revenue, driven primarily by acquisitions we completed in 2025, such as SD Fiber in Switzerland, with the smaller contributions from the acquisitions, such as Artemis and Inviso, that we closed in 2026. The main acquisitions we announced in 2026, namely ROFA, SDS, World Power Services or BLOC, were neither consolidated as at June 30th, nor did they contribute to our H1 reported results. Please note that in the case of HGS, we are still contemplating a closing before the end of the third quarter, so not done yet. The 2026 Pro Rata Temporis contribution from these acquisitions, namely ROFA, SGS, World Power Services, will be reflected in our H2 results. The internal transfer of former non-German operations was recorded as a disposal for the German segment and conversely as an acquisition for both Global Service Energy and Central Europe, obviously absolutely neutral at group level on the top line. The disposal of the small elevator business in the Netherlands had a negligible minus 0.1% impact, and currency movements had a modest minus 0.2% impact, mainly reflecting the US dollar exchange rate. Moving to slide 21, at 186.5 million euro, Our adjusted net income was up 11.9% year-on-year, primarily driven by the increase in EBITDA. This progression also reflected a slightly lower cost of net debt and material other financial charges decreased, and this reduction is mainly due to a rather normalized net ethics impact which was largely unfavorable in the first semester 2025. Our normatics tax rate increased slightly from 29.2% to 30.2% reflecting the gradual changes in our geographical mix and the applicable corporate income tax rate, notably the growing taxable profit contribution in Germany. Turning now to our usual bridge from adjusted net income to reported net income which includes the main non-cash IFRS items as usual. Reported net income rebounded sharply to 112 million euros compared with the loss, exceptional loss of 13.4 million euros in H1 2025. This is mainly explained by the change in fair value of the convertible bond ORMAN derivative component which, I remind you, is a non-cash accounting item and did hit significantly our P&L last year. The accounting treatment remains absolutely unchanged but the impact amounted to 19.7 million euros in H1 2026 compared with 162 million euro charge in H1 2025 and this was as a consequence of the very strong appreciation of our share price over that period in H1 2025. The decrease of the amortization of intangible assets is due to the completion in 2025 of the amortization of the intangible assets recognized in connection with our SAG acquisition in 2017, and that were amortized over nine years. The increase in other costs mainly represents acquisition costs, that's IFRS 3, in line with our very, very active M&A activity during the first half. Turning to working capital, which remains a very structural trend of SPIE's business model. As you know, we consistently operate with structurally negative working cap in this throughout the year. Last year's outstanding improvements reported as at June end. has been finally maintained in 2026 with a continuing focus on entire working capital management that was our commitment. Minus 28 days of revenue representing nearly minus 800 million euros is another outstanding achievement for a first half. Overall, our continued focus on early invoicing and disciplined cash collection contributed to this excellent pattern alongside a favorable mix of activities. Moving to our free cash flow, operating cash flow reached 163.5 million euros compared to 25.3 million euros in H1 2025. benefiting of course from EBITDA increase and from the improved change in working capital requirement. As a consequence, our free cash flow turned positive at plus 25.7 million for the very first time in a half year, which with obviously 133 million euro improvement year on year. In line with our commitment to protect shareholders' interest, we completed a 59 million anti-dilutive share buyback program in the first quarter of this year at an average share price of 47 euros per share, representing the same number of shares bought back last year, meaning 1,250,000 shares. overall net debt increased by 822 million over the first half reflecting of course our very dynamic self-financed Bolton M&A activity moving to leverage ratio thanks to our outstanding operating cash flow performance in H1 The leverage ratio increased only moderately from 1.9 times at the end of June 25 to 2.1 times at the end of June 26 following the nearly 640 million euro cash out for M&A over the H1 period. Our track record clearly demonstrates the strong deleveraging capacity of our business model, with leverage increasing only temporarily following significant value-creative acquisitions during the period. We intend to pursue our dynamic bolt-on M&A while strictly observing our disciplined financial policy. The achievements of investment-grade status from Fitch in April, with a BBB- rating and a stable outlook, marks a very important milestone in SPIE's history, reflecting on our strong free cash flow generation, disciplined leverage profile, and increased scale. Building on this, we successfully issued a €600 million sustainability-linked bond in May, with a five years maturity and an associated coupon of 3.875% extending our debt maturity profile to 2031 and maintaining a consistently high level of liquidity. This was the case at the end of June, 2026 with a total liquidity of more than 1.5 billion Euro supported by 562 million in net cash as well as 1 billion euro of unzoned revolving credit facility. SPIE's entire debt profile remains fully sustainability linked in line with our long-term ESG strategy. of our drone debt is at fixed rate at an attractive weighted average cost of circa 3.7%. I thank you for your attention and I now hand back to Marcus.