Thermador Groupe Sa

So good evening, good evening all of you and welcome to this webinar where we're going to explain to you the turnover for the first quarter. So I'll remind you how it's going to happen. We've got a webinar which will be in French and a webinar at the same time simultaneously in English. for our English speaking investors. So a few rules. You can ask questions on the questions tab or you can chat between you. on the chat area of the platform for the webinar. So this presentation will last about 25 minutes so don't hesitate to put in your questions as soon as you're ready to do so and we're going to respect one hour maximum for this webinar. You undoubtedly received the letter to shareholders, number 123, where we give a full breakdown of the quarter's results. First of all, a word about our workforce. We've had a very good first quarter of 2026, because as you saw in our letter to shareholders, turnover is up. The growth of our turnover is greater than the very modest growth in our headcount, which is up 1.4%. And as we'll see later on, we'll see that the turnover is much higher than that. So we continue to respect that ratio that we keep an eye on all the time in the medium and long term. So analyzing these figures, we've been able to identify a number of positions in the group which are doubled up because of early recruitments made in preparation of certain departures. so in terms of business activity as you'll see in the letter 17 of our 21 subsidiaries are in growth that's a very good sign and in particular six of them so had growth over 10 percent in turnover which is really important So that's Megafad, Domac, Isocel, Aelo, Exceder and Distrilabo. And you see that these companies all work in different fields, in retail, construction, industry and the water cycle. In the area of heat pumps there's a positive trend both in France and Europe. We're mostly involved in the market in France and you see this with Isocel who supply heat pump manufacturers in France and the figures for Thermador who supply heat pump accessories who have seen their turnover down over recent months but has now come to a more stable position over December and the first quarter and that's very important for Thermador and its range of products accessories for the heat pump market slightly in growth new homes new builds of new homes we've had some exciting announcements from the French government they intend to build up to 400,000 housing units per year by 2030 just as a reminder in France in 2025, we only built 275,000. So there's quite a gap. Even though this even if that's a good, good news, we've got no signs for the moment of that coming into practice. So in the retail sector, we've got four major players dominating this market. They represent more than 80% of the market overall. and the trend that we've seen and that's confirmed in those players is that they're investing in e-commerce but also they're taking an interest in pro products so selling to trade which could be beneficial to us in the future for those product ranges because we already have pro ranges of course already in industry, a similar trend to what we saw at the end of last year, so a positive trend. You'll see in the letter 123, all the companies from Sirocco downwards are in growth and that reflects good performance of those companies on that sector and even gains in market share. So in terms of milestones, we've got price impact. The price impact remains negative at minus 1.4%, which is a bit of a surprise because we were expecting to move into positive territory fairly quickly this year. And we'll see that this will probably come true by the end of this year. Heavy rainfall, so very rainy weather, which has had a negative impact for our watering markets, Jetly and Odria, but also for our sometimes direct customers and the public works sector. As you can imagine, when we have too much rainwater, it's very difficult to work on a public works project. So that has impacted DPI and Jetly. difficult to ignore the geopolitical situation at the moment for this first part of this year no impact on our turnover on our turnover for the moment from this war in the middle east and we have signed up transport costs uh contracts uh transport contracts sorry for 2026 so the impact is under control However, there have been major increases in prices for products such as polyethylene and PVC. And that, of course, affects DPI, who deliver directly to the sites. So we're receiving some alerts from the manufacturers of polyethylene PVC of a big impact and even possible shortages. We announced at the AGM the separation of the roles of Chairman and CEO and the day after that meeting it was decided at the Board meeting of the 8th of April to name Olivier de la Chirangerie as Chairman and myself as CEO. Patricia, over to you. So just a mention of the AGM took place on the 7th of April and 205 shareholders joined us at the meeting. We had 1,000 voters. and 78.9% of voting rights were accounted for. So thank you to all of you for this. You're accompanying us in this event. The resolutions were voted between 88 and 99.99%. So a very good result in terms of governance. the resolutions were well accepted.

The only one that was the closest one was the distribution of dividends which was only 88% in favour. There was also resolution 21 which was rejected but that was in line with the advice of the board of directors.

So I'm going to move on to our results. Guillaume started talking about a number of milestones. And this allows us to link up the news, if you like, with the figures for the first quarter. So we've had a decline in the retail market at minus 1.2%. On the one hand, a drop in turnover with Audrea in France and Spain, which was partially and mostly compensated for by Megafair and Domac in their great performance in the first quarter. in terms of the PRO channel that covers industry, water cycle and construction of course. So in those activities we had the help of two new subsidiaries of course in C2AI and Kilinox and which they arrived at their expected levels, shall we say, of turnover. as was more or less the case for the last part of 2025 because we'd already integrated at that point. Concerning turnover, we've got industry where it's up and construction which is up and that's commented on by Guillaume already. so 5.4% increase on the pro channel up overall increase in 9.6% over the quarter and plus 4.2% to constant scope So that's due to good volumes and good performance from our subsidiaries. So in terms of the profitability level for Accélère, a work in ventilation, was created in 2014 and has had losses over the last 11 years. and they've seen growth in their turnover there were some cases that also in 2025 so this continued at the beginning of 2026 and so we see that they over the breaking position for the period January to March and worth noting so financial structure we have of course historically a solid final structure new record in terms of cash we have 105 million and then in terms of debt we've got 40.2 million of debt that's all debts with fixed rates and over seven years we have no new loans in that area so it gives a positive net situation taking off the 19.3 million euros paid on April the 17th so we've got a 45.6 million net positive cash position that allows us to have flexibility in terms of our investments from our own funds and maintain our independence and be able to look at external growth opportunities and that's of course we will look carefully at all options I have a word about stock because these are questions we've had in the past in our meeting in Paris. We had a meeting of our shareholders after the AGM in Lyon and a number of shareholders were worried about our stock levels. The stock represents 176 days and we'd already moved down from the level of December. and we feel that is compatible with our activities. We had a bit of a problem with the Chinese New Year and we see that our subsidiaries are coming to purchase and that allows us to continue to supply our customers satisfactorily. So I talked about funding from our own funds, from our own equity. We've got 12.3 million euros of forecast investments with 6 million for the property part. and there are two major projects which concern SFERACO so automation and extension over 2026-2027 that's actually started and of course the automation of the logistics side that will be going ahead over 2026-2027 for the other project which contains Distribut Labo in Alsace and this subsidiary We've just signed the first contracts for the new building for them. We're pretty sure now that will be delayed to 2027. So it gives us an investment forecast, a registered forecast of 9.5 million. and that all allows us to continue to invest from our own equity. So digitalization will continue within the group with electronic invoicing as well and digitalization in the different companies of the group. Concerning the value of the share price, so the return on reinvested dividends for the Thermodor Group share. It's a pretty solid performance. This graph runs from 2016 to 2026, dates from last Friday, and we're very close to the performance of the CAC 40 index and that confirms that it's a long-term share investment and it reflects our dividend policy because we continue to issue dividends and that dividend rate has never gone down. Of course, we are sensitive to short-term events and you know that the geopolitical situation has a big impact on the stock exchange in general and so for Thermidor in particular. we don't we're not spared by the effects of the uncontrolled declarations of the American president you saw on Friday afternoon a very strong growth on the on the stock exchange and a drop again today after the opening and closing of the Strait of Hummars. so if you remove the cash from the company of course that reduces the price of the share so the prospects are obviously very dependent on the geopolitical situation and I want to really insist on that point because The questions we get from you is what is the impact of this war in the Middle East on the group in terms of new homes? We see there's a risk of an increase in mortgage rates. of interest rates in general. And if this happens, obviously that will affect mortgage rates and it could well bring an early end to this beginning of the promising cycle in the new homes, new builds that we've seen over recent months. Having looked now at energy renovation, we're seeing the first questions coming in. Government very encouraging announcements from the government But I'd like to measure those a little this compared to the general situation the public authorities wants to double the amount dedicated to electrification in France so replacing fossil energies by electrical energy by 2030 but when you ask the question of how this doubling is going to happen we know that that will won't come from the state's budget because there is no money available and therefore all eyes turn to the energy savings certificates the CEE financed by the energy providers okay that works really well when energy is inexpensive so at the moment as you know energy prices are going up and in particular the price of petrol at the pump so this funding from the energy saving certificates may well be compromised by this increase in energy prices fossil energy prices in the medium to long term so good intentions from the public authorities but beware in terms of the real impacts that they will have that because when financing will have to be found outside of the state's budget the public authorities were very precise with this announcement which obviously caused good news for us because the Prime Minister wanted as to install in new and non-new buildings one million heat pumps per year by 2030. So that is a multiple of six of where we are today and that could of course benefit groups like Thermador. because the equipment dedicated to heat pumps in terms of value are greater than the accessories that we supply to the gas boiler market so it would be beneficial for us and there's another major announcement was that the end of boiler installation is due at the end of 2026 so a very short timeline and that includes and hybrid so gas but also hybrid by the end of the year so no more boilers to be installed in new buildings so to be placed of course by heat pumps so I've already answered the question that we've had on the on the on the chat these of course of their promising but they there are obviously question marks about whether whether achievable so the pro markets that we have for February don't give don't indicate any major improvements so waiting for the figures for March we don't have those yet we'll have those this week for the moment it's stable in terms of our B2B customers for the wholesalers for new works and plumbing accessories we keep an eye of course on the PMI index these index you know this index because when they are above 50 that shows that the market is growing from one month to the next so on the left hand side is the curve for French and on the right for Europe let me see there's been very little impact of this geopolitical crisis on industrial activity in France and in Europe but it's obviously very likely that this impact will be very marked if the crisis continues and in particular for industries like chemical and petroleum industry to whom of course we sell so a much less favorable market environment because we are attempting to gain market share and if the market contracts it's more difficult to increase turnover mechanically in retail then no indication of a restart of this market about in spite of the opportunities that were taken up by Domecq and Megafair at the beginning of the year no real prospects because but budgets dedicated to energy renovation are because French people's disposable income is decreasing so difficult to imagine people investing in the DIMO market so a negative tendency for April which of course we don't see that yet on these results So in terms of e-commerce talking about the different players on the market you've got the pure players like Amazon who stock and deliver equipment but also on the marketplaces in particular with One that has a really strategic position in France is called Leroy Merlin. and Castorama one of its competitors is also showing being very active on that market but also there's an opportunity for us to sell directly to the end user especially on after sales service and of course with always the objective of making those products last longer so that's a good option I'd like to emphasize that in France, and it's not very good for this market, the saving, the tendency towards saving is on the up, which is in line with the anxiety rate in France. So in the water cycle we've appointed Alexandra Statula who is currently administrative director at Audrea and will progressively take over the management of DPI. She'll be there in September. She's already there part-time but she'll be there full-time from September until the end of 2027. and that's the date at which Grégé Urpy according to the agreements we had together he'll be leaving at the end of 2017 and DPI's sales departments are also being restricted and in particular we're working on the water cycle for a range of solutions in the grey water, the reefs of grey water and the processing of water, the treatment of water and we joined a new association which is called AFREG that's the French Alliance for Great Water Recycling and it's a grouping of companies that are working on these solutions. You know that water, even though it may not be the case of late, it will become rare and expensive in Europe and it's a market that we're working on for the future. Internationally, a strategic appointment in progress. We're looking for a full-time employee to identify opportunities for acquisitions. And that answers one of the questions that was asked.

And this is a question.

we haven't yet we haven't identified any opportunity that we can talk about to you at the moment of course we're keeping an eye on different options but of course as usual we will only start talking about those options when a letter of intent has been signed and that's not the case today We are having discussions in France with a company in France but that's not far long enough to be able to talk to you about that today either. So the role of this new employee will be to look at all the opportunities right across Europe which correspond to the strategy IE distribution in industry but also in the water cycle make contacts keep in contact with the directors of those companies the owners of the companies and be able to contact them quickly if those companies became available on the market. The price impact for 2026 it's clear that this impact will increase very quickly because we've already received a notification of price increases from our suppliers and we've already talked to our customers about those increases in prices where we're expecting that to come into force in June 2026 and we're feeling that the price effect at the moment which is minus 1.4% as we saw earlier on but we're expecting that to be above 2% on average for the 2026. To close, just a few words of optimism, because we're looking at the last slide, which is organic growth by quarter over a period of about five years. So we have moved out of this negative phase that you see over a period of almost two years. But we have to modulate, of course, that with the possibilities of the current crisis. If that geopolitical event that we're currently expecting, the crisis in the Middle East, we'll probably see that curve continuing in the upward direction. So now we're finished with our presentation, which gives us some time to answer your questions. I've already answered to the question about the government measures on heat pumps, but beware of the financing. We've also had a word from Rudolf. who understand why the public authorities hadn't been taking more interest in the construction of new buildings in the last two years. I have no answer to that because of course there's a real need for it in France and the problems are ahead of us now. And we've got behind in terms of capacities. Do you have any acquisition targets, especially outside France? Yes, we do. Projects that are far enough along for us to be able to talk to you about it, but no. And what was the increase in volumes in T in Q1? They're obviously bigger in terms of volume because there was, of course, the negative price impact of minus 1.5, 1.4%.

English part but I have an English question French questions right in terms of electronic invoicing will this We see any savings we're starting to work on productivity gains

where we'll be able to receive invoices from our suppliers electronically. So we're hoping to get some productivity gains and we're going to work on that. Another element is that any invoice is sent via a platform and that of course implies a cost. But we'd already worked a lot on sending our invoices via email and so forth, dematerialized factors, paperless invoicing. So we've already fairly well along the way for that. Victor want to know percentage of turnover is gained from heat pumps we don't actually give that figure and we're sure that some of our competitors will be interested in this information so we don't talk about it but we've got some detail per subsidiary but as I said earlier on the variations that you may be seeing in our subsidiary Isocel or Thermador positive variation but negative in the past would suggest that there is a positive impact on the heat pump market. There were two key events which helped Thermador was the increase in the sales of accessories for heat pumps but also the increase in sales of thermal heat panels. so the decline in the turnover for Thermador was a lack of funding so I can't give you any more precise figures than that because I don't want to provide too much data for our competitors which is of this internal Do you mix conventional commerce and e-commerce? Yes, in ILO, for example, there's a very substantial part of turnover from an e-commerce platform. So it's actually it's not pure e-commerce. It's an actual order placing platform So it's open to professionals and these technical solutions are progressively being rolled about rolled out throughout the group the percentages of turnover from e-commerce platforms remains confidential to and The sales that we make directly to users via e-commerce platforms are really small in terms of percentage of turnover because it is primarily concerned only after sales services sales. and we have some sales in DIY superstores for SAV products. There's a question about XLR saying that they've arrived at the break-even point. So the question is for Thermacom and DPI, when are we going to get into positive territory with them? And we've seen that DPI and Thermacom are losing money. It's important to understand that we've only just acquired and there's an amortization of the goodwill so the customer relation to be exact that means that DPI without that amortization was profitable and Thermacom it's the same the same case made them very close to the break-even point The idea is it's not an operating loss, it's just we've got the amortizations. And why do we do that? It's to avoid having to depreciate assets a few years after the acquisition. So it's a use of the customer relations, which we call goodwill. Jean-Pierre has a question about managerial transition at DPI. Maybe I didn't express it properly. The departure of Grégory Urpy is planned for the end of 2027. So these two will be working together from September. So the end of 2027 is exactly five years after the acquisition as planned. It was planned that Grégory should leave at the end of 2027, just to be precise for Jean-Pierre. So we're finished with your questions. no questions on the English side sorry about the technical problem that we had on the English side but the replay is in English but you won't be able to ask any questions of course so don't hesitate to ask us any of your questions by email so another question So it's about Audrey and the results of Audrey in relation to its trend to a decline in turnover. So, plus 4% for Q1 2006. That's a pretty brutal question. Shouldn't you imagine restructuring the subsidiary to take into account the persistent decline in turnover? So it's a bit brutal. That would indicate reducing headcount. It's true that the budget for Audrey is not positive for 2026. So we're likely to see a decline in turnover and a decline in profitability. So we're working on it. for recovery at the beginning of 2027 through investments in the distribution channels other than the traditional DIY channels. There's also the Spanish side. work started on that last year and it continues this year to be able to find new developments new customers and of course that times because that takes time because it's referencing with different stores so they're because they're negotiated on an annual basis of course but of course it will take time. So, Romain, you're making things look worse than they are. You're talking about the decline in turnover for Audrey. Audrey did manage to maintain its profitability. And that's why I want to reassure you for 2026. And the manager has not planned for loss in profit for 2026. But we're working with certain customers at the moment. And we're going to be putting in place certain measures to towards a recovery of other a but certainly no plan for restructuring You know that in the group we have a long-term vision And that's why we're resistant during difficult times like like we're experiencing at the moment Are there any other questions? We're pretty satisfied with this first quarter because it's a long time that we're we haven't been able to announce a net increase in turnover and so many companies with with growth around you with six with over ten percent but we remain cautious about the future and the short the medium and short the short medium term because the the situation that you craft geopolitical situation will have certainly have an impact in France and in the world and Europe's very many companies like us are going to suffer certainly from all this instability in the world so it's obviously an advantage for us to have a wide range of different activities and you see that our subsidiaries continue to resist and we hear people saying you've lost turnover you keep your employees in place but we know how valuable our brands are and that's why we invest in them and stand by them It's And with those investments, I talked to you about 9.5 million, that shows that we are intending to invest in our warehouse and so forth. So we remain, we continue to have a positive outlook. And so for our sales people as well, We're happy to see the results of their work as our turnover increasing. So thank you for your... We're being thanked for our efforts during this difficult period. So I want to thank you for your support and our wonderful AGM. and it was great satisfaction for us to be so close to 79% which is a remarkable participation rate at our AGM and of course you used all the tools available to you to vote for example with access voting all that so thank you to all of you for your support since you have no more questions we're not going to stay connected just for the pleasure of it We're going to see you, unless anything drastic happens, in the middle of July. We'll talk about mid-July for the results for the first half year and at the end of July for the end of the second quarter. Good evening, all of you.