Thermador Groupe Sa

Good evening. Welcome to all. Welcome to this webinar. We'll be commenting on the publication of our results. And as usual, we're going to talk first of all about our wonderful employees.

Some of them are still here.

A lot of them have gone on holiday. In terms of staffing levels, we're slightly up. 6.5% increase in volumes. and that reflects the group's need to work on productivity today and in the future milestones geopolitics of course with for the moment not much visible impact on Thermador Group but however things to talk about a price impact we've already talked about that with impact in terms of price rises we've already passed on

to our customers.

No impact for the moment on the inflationary effect, but an impact in the future. And to remind you, the main impact is on polyethylene and aluminium. So maritime transport costs well controlled and the transport situation is not particularly affected because around 30% of our supplies are coming around the Cape of Good Hope and so no major change because of these geopolitical events. Prices then, the measurement that we did at the end of the half year gives a negative impact of 0.9%. It was minus 0.4% at the end of the first quarter. We see that the second quarter was minus 0.4 and we'll see for the outlook whether we change our annual forecasts. a word about secondary markets for the construction and three dynamic segments in this rather desperate market air-to-air heat pumps and air-to-water heat pumps and ventilation. Three of our subsidiaries are impacted in a positive way Thermador and Isacel which are on these markets for air-to-water in the terms of providing accessories to the manufacturers and Accélère which is on the air-to-air heat pumps because Accélère sells accessories to that market so Accélère also specializes in ventilation and therefore benefits too from these two positive market trends and it's a place for us to see that Accelere has gone into a breakeven situation which is great news. New builds, new housing, unfortunately we've still got a slight improvement on building starts. I say unfortunately because it's not going very quick and you'll see the prospects are not great weather like every year now a lot of rain in the spring and heat waves quite remarkable levels of heat wave in June May June July and that has slightly helped XLR which sells mobile compact air-conditioned units spray small part of their turnover but it's substantial in terms of its size however for watering the washing markets poor levels of sales compared to what we've known in the past for jet Jet Li slightly positive but at a very very low level historically. What about ALO which continues to to win market share in the simple market and good news on the legal front also because we have we've had the the verdict from the arbitral court because the former employer of Jean Chaboudi who's the CEO of Ailo has been attacking us and him for the grounds of his appointment with us and we've won that case so DPI management the things are changing we saw the arrival of new sales director and Very soon the arrival of the future CEO of DPI, Alexandre Statula, and she will be there full time from September the 1st. She's got a long history with Thermidor Group. She arrived as a young woman, she's still young of course, but she arrived a few years ago at Jetly, and she was administrative director and financial director at Audrea, and now she's taking on the challenge at DPI starting in September. I think she joined in 2008 so quite normal length of service in Thermador Group so for the day Iowa markets and make a fan who's sold a lot of generators which is a positive effect on their turnover for the first part of the year however for Odria continue to have difficulties with pretty brutal delisting from its customers and so Audrey is currently working on diversifying its product range in Spain and also in e-commerce to try and find solutions and we've already seen progress in that area look at the price and volume effects and you see this on this slide slightly negative in terms of the price at 0.9% 5.6% in organic sales growth and if we added the two we get to 6.5% of increasing volumes. If we compare these figures to the last six years we've seen that the current trend is to go towards a positive impact in terms of price and volumes so that's encouraging. Patricia, moving over to you for the figures. In terms of turnover for the retail channel, turnover down 4.1% and negative price effect of minus 4.3%. So that leads to a diversity between the same similar levels but Audrea has seen a negative situation in terms of its turnover. Concerning the Pro Channel, so there we have the impact of our two new subsidiaries. for two in 2025 and that's CTI and killing Oaks and there we see the 232 million compared to 247 million so got an increase 14.3% increase in turnover and to constant growth scope that will be 7.6% so there we have a price effect as well which is less So we've got increases in volume with the exception of two subsidiaries, Sodigo and Sectorial, who have drops in volumes of sales. Not too worried about them, but we did comment that on the letter to the shareholders. So that's consolidated turnover of 11.3% up compared to 5.6% to constant scope. And that was the same trend as we had at the end of the first quarter. Now moving on to results. Profit. What does that give in terms of operating and net profit? In terms of operating profit we are on 7.3% growth which is greater than the increase in turnover and we see the same trend on the net profit of 17.6% of profit. Some explanations for that. concerning the trend changes to our profitability it's important to see that the we've got in 70.2 percent We've got an increase in turnover, so we're above 12%, 12.8%, with the main element to explain that, the improvement in our margin. We've got a price effect as well, but we were able to manage these price effects, and we benefited over the first half year of a euro-dollar exchange rate, I remind you that more than 30% of our purchases are in dollars so that's helped our margin in terms of charges when we look at those they have increased 11.8% that's in line with the increase in turnover and the main items are of course headcount personnel and if we look 2025 compared to 2026 we've got 13.1% compared to 12.8% in 2025 last year but if we take into account for the first half of 2026 we've got the two new subsidiaries and when we reprocess that data that gives us a more or less stable situation of 12.7% compared to 12.8% last year. also we did increase salaries we and we will continue to and we will need to continue to improve our productivity in order to maintain this momentum then as we continue in the analysis we look at net profit has increased in terms of a percentage of turnover we've got nine point zero nine percent so that's up compared to last year compared to last year so we've got a tax our tax rate has decreased slightly and we've also got a positive situation with our financial result through the dollar effect and also the investment of our cash which we invested and I will comment on the level of cash the cash situation later then we continue on this graph which gives us the operating profit as a percentage of turnover between 2009 and 2026. Let's say we're 12.2% as I mentioned earlier and if we compare that to 2019-2020 which are pre-Covid years we're not quite back to those levels but we're close to the levels because we're at 12.8% in 2019 and 2020 and the introduction of our two new subsidiaries have affected that slightly in the downward direction in terms of profitability, Accélère was created in 2013 which for the first half of 2026 has for the first time published positive results partly because of the weather effect and they continue to have with their mobile air conditioning units and and its traditional market of ventilation, they continue to have good performances. So we saw that in the first quarter and that's continued in the second quarter. So we looked at the evolution and we saw the business plan for Axel Air and we expect this level of profitability to continue to the end of the year. a little focused on the companies that last year were losing money at the end of June 2025 strongly the DPI first was affected by the amortization of goodwill rate into customer relationships and that showed a negative result this year to the end of 2026 that's not the case so DPI is slightly positive in terms of profit and then Thermaco work primarily on products in connection with new builds so we've got a company which continues to be negative in 2026 with also the consulate in effect with the goodwill relation to customer relationships which also has a negative impact of course Profitability of our new two new subsidiaries. So see to AI which is food information and control They've got four point two percent level of profitability compared and when we talk about that level of point two, we're not quite in line with what we expected in terms of the We've lost four percent compared to the business plan so that's something that they need to work on and and we're hoping for their level of profitability to be improved in the second half year. For Killinogs, they're up exactly where we expect them to be in the business plan at 8.2%. Our financial structure so equity the 414 million which can be compared to the capitalization of the value of the company of Thermidor Group's shares which is favorable the value of our stock and this is something that we already observed at the end of March and which is still a question at the end of June with a drop in value in Europe in euros and the drop in 5.6% and in the number of days of consumption, we have a drop of 28 days from 209 days and we're now at 181 days compared to 209 days last year. Can we just come back with that one? Okay, for cash, So it was stock turning on a downward trend and has an impact on our working capital requirements. So that has an impact on cash capital. So we've got a cash position of 104 million. So the variation compared to June 2025, we've got an increase in our loans in connection with the loan taken out to purchase Key Linux. And that was started at the end of September 2025, that loan repayments. We also mentioned that the end of December we had an exceptional level of cash because we were at 96.9% but that continues because we're at 104.2 million so that remains at a high level. in terms of net net cash flow variation we've got cash flow from operations 32.1 million change of work capital capital requirement with an increase in customer pay payables receivables excuse me plus seven point and that gives us WCR 1.8 million drop in stock also on that slightly balances the customer payables and in terms of investment flows that's obviously connected to our constructions that we started in the first half of 2026 we've already spent 4 million on our capex investments and that gives us a free cash flow level of nearly 30 million and our financing flows which include dividends and loans the loan linked to the purchase of DPI 22.6 million So the working capital requirement which is given in our distribution companies, the value of stock is important, is high of course. So we have an operating working capital requirement to net turnover. We were at 44% at the end of June 2025 and we're at 38.5% at the end of June 2026. we've got less stock customer payables have increased but compared to June 2025 with an increase as well so that's pretty stable so that in terms of payables to suppliers We've also got stock in transit, because we've got 33 million euros of stock on the boats. And we've also got orders that have made orders early to protect themselves against the price, future price rises. And we've also had negotiations with major purchasers to reduce this negative effect. And there's also, I think, the effect of our good sales. and of course that means we have to rebuild our stock levels for the second part of the year and they didn't mention it but Megafair, Dermac is one of the companies which had to rebuild its stock levels because they had very high sales during the first half year so we see that impact on our supply debt. will continue now with the investments so we started the year with an estimation at 12.3 million which we reduced because we thought that some of the projects were going to be get we're going to be behind schedule but then we reviewed the situation with our property company and our subsidiaries and in fact the level of the level of investment will be at 11.6% or 11.5 million sorry for the second half of the year for property I remember that we've got three major projects this year we've got Sferaco with the construction of an extension to the company, to their building. And that's on target in terms of timing. So that's 2.9 million for the property and 5 million for the automated system. That's over a period of two years. So a lot of that is being spent in 2026. And we've got C2AI. They were renting a building in Dessines and we decided to bring them closer to us, to work in better synergy with our other companies, with Sectoria in particular. And so that's planned for August, that they will come to Cinquantaine-Folivier in August. And that's another refurb of a building. And the third is Distri Labo. We've launched an acquisition on building from purchasing on plans and that will be that will have more of an impact in on the second half of 2026 in terms of our subsidiaries we're working on the digitalization of our logistics and this is one of the biggest impacts So I think that's all and I'm going to hand over to Jo for him to talk about our reinvested dividends a little quick look at our share price over a period of 12 years which is available on our website in real time which compare to the CEC 40 and listed companies for approximately a month now we've seen there Rebound in the Thermador share price, but I would ask you to check our analysts. There are five of them who follow our share price and that will give you a better insight into the prospects, the future prospects for the Thermador Group share. so let's talk about outlooks so in terms of new homes on the following curve you'll see slightly positive trend in spite of ups and downs in terms of building starts but it's pretty slow however that's the orange that's the orange line and on the blue line you see that building permits are stabilized and again it's pretty chaotic and there's no net output trend and unfortunately the increase in interest rates won't help that market a little word about summer comfort because as you can imagine something important I talked about a little earlier on exceptional month of June and we'll see this in practical terms on two curves Coedis the chart for Coedis who monitor the distribution of sanitation heating and also of wholesalers in France and you see this peaking activity in June which is primarily due to this very high level of activity on air-to-air heat pumps and ventilation and air conditioning. Now, we mustn't expect that level to be main, of course, because it's linked to the situation and the stocks are low, so it's very probable, but this level will go down sharply in the months ahead. there's a similar but lesser impact in the retail sector and that's the chart of Inua which we see on the screen and you see this peak in June of 5.4% also helped by air conditioning demand and again we have to be prudent because this is really linked to the current situation with the climate okay the water cycle I talk about this every quarter because I think it's a future market for Thermador Group the water and rarity of water will increase water prices for water in France for water in France and that's inevitable and in Jetly we have all the solutions you might need to process redistribute DPI for networks for drinking water and we're talking about that reuse of water of grey water and when we look at the different activities at Jetly we see that this variant the reuse of water is the most dynamic part of their business with a a second quarter which is better than the first for jelly i'd also like to underline like we saw we saw earlier with Aelo but but also it's very cool who have let us off for example with the specialists of water in France and they continue to take market share a little word on another activity which is parallel in terms of the product but not terms of the water cycle and that subject is the electrification in France and Europe. When we talk about electrification, that means electrical networks and dry networks and those are polyethylene networks and those are the same producers for the wet and dry networks and that could help DPI. and they are one of those companies that were involved in the water cycle market in the Thermdor Group. Industry, next. A quick focus on the general context the PMI index gives the general situation in France on the left and in Europe in on the right so see it's slightly above 50% so it's a slightly in progression but also A few points also for the industry sector, linked to geopolitics. The public authorities, whether European or France, or indeed throughout the world, they're increasing their stock strategic storage of hydrocarbons, and that can present interesting opportunities for the group. Valves, for example, there are products destined for oil and gas industries. We also have opportunities in the field of climatic engineering. You might say we're talking about industry, but in climate engineering, and I give the example of deep geothermal, we have industrial valves for that market, and that means having this dual use of these valves is an opportunity for the group. a little a look at staff now we're gonna we're gonna focus on the holdings staff and their IT team just to tell you We're planning to increase the strength on this team to answer the demands of our subsidiaries. There were nine of people in the IT department in 2021. I hope that there'll be 2024 in 2026 and by 2030 there will be 33 employees working for the group and also to increase cyber security of course in the group. A word about prices so it's going to be a difficult forecasting exercise to be here I said the there will be a 2 percent positive price impact but given what we've seen in the first half the year I think that for the the third quarter will be better will be more positive in terms of price but I would review revised my forecast downward with a price impact of between one and two percent a few words about the international sector with diverse fortunes. There, what's most difficult is for Audrea in Spain and as well as the delisting of certain clients from some of their clients, they're trying to identify new channels and also new product ranges. and developing e-commerce in Spain and that's one of the projects that started in the first half and that will continue in the second half. Thank you Patricia for that bit of information about Spain. In Europe, sorry still in Spain, Kirinox is following good momentum since the beginning of the year. These are activities which are buoyant, particularly the agri-foods sector. Good dynamic in Europe generally with excellent first half year of SAVCO. It's celebrated its 20th anniversary and we'll be finishing this year with record turnover. and also it would be worth underlining their profitability rate which is increased by 2% so not only are they increasing turnover but they're also increasing their profit margin. Sodeco in Belgium, a slight decline in the first quarter in terms of turnover but there's a number of projects which could allow them to get back to more positive fortunes. I would remind you on the 1st September we've got the arrival of the person who is 100% dedicated to searching for new companies for potential purchase acquisition in Europe to accelerate our external growth in Europe. a word about geopolitics unfortunately the global wars currently going on having an impact on the international economy and of course on the French economy too and there's no real signs of an end to these conflicts and we are imagining long-term effects especially on interest rates in particular in terms of the price of polyethylene and the price of aluminium and of course later on transport costs, the maritime transport costs. So we have a level of hedging which allows us, take us through to the beginning of 2077. But if the situation continues, these wars continue, we will have to pass on increases in prices on these maritime shipping costs. So in terms of the outlook, There's a question which has come in concerning DPI. Can you give us the color and the trend for DPI for the future? Can we hope for a sustainable return to growth and 2023's turnover rate of 42 million euros? yes potentially certainly there to get to that level even though there have been ups and downs it's quite possible for DPI to get back to the level this is a we're going through a transition of course to change in the general management and the the sales department and some of the teams have been renewed it takes it'll take time to DPI is on certain markets in particular electrification which are buoyant and promising markets for the future. Polyethylene prices will have an impact. I hardly dare to talk about the price impact, but it will obviously increase their turnover. And the increase in prices of polyethylenes are up to 45%, but it goes up so quickly because it's linked to the oil price. So I'm pretty cautious about talking about that. If the prices of polyethylene increase too high, then that will block the market. So it's not necessarily always a positive thing. but when we had the 43 million turnover there was a more positive effect of price increases at the time and subsequently there were the reverse effect where the prices went down and therefore a drop in price and turnover so the last graph to look over the last six years in terms of organic growth per quarter you see the first two quarters the base effect of this second part of the year will be less favorable because in terms of organic growth we were plus 2.2 on the third quarter of 2025 and minus 1.7 percent in the fourth quarter of 2025 So the second part of the year will certainly be more complicated than the first half of the year for Thermador Group. So I've finished. We're now going to answer your questions and I'm going to go immediately to see if there are any questions up for us already. So no questions on the English side. you talked about the drop in price, but do you have a drop in raw material prices? Yes, of course, we do have. I talked about polyethylene. It goes up and goes down very quickly at that moment. The drop that we've recorded since the The moment when the Hormuz Strait opened temporarily and the prices dropped, well, it's going up again now. But in terms of metals, there's a long-term upward trend and we don't see, except occasional drops in prices, we don't see any possibility of reductions in raw material prices. And we have no hedging for that, and that's the question we get asked. we have hedging for the dollars but not for raw materials because the manufacturers who organize themselves to cover that risk so for the dollar and the impact of the dollar on Thermador Group a little comment. It's extremely difficult to predict anything in this field. You can see that the Fed, who was supposed to be having a more aggressive position, at least that was Mr. Trump's wishes, we see that the new governor of the Fed is very cautious because of inflation in the U.S. So interest rates at least long-term American interest rate is not going down because inflation is present and so that can have an impact on the on the dollar not necessarily favorable to the dollar but also an effect on interest rates in a more general sense so we have to keep close eye on that even though it's very difficult to predict what's going to happen maybe but you shouldn't give us a reminder of how we process we treat this euro dollar exchange rate yeah we do long-term we work to the EFRS accountancy rules so we do long-term purchasing on 25 million dollars in our portfolio to pay for the supply debts that we have in the second half of the year that won't cover all of them but we are looking at repurchasing these forward rate at these four rates because we think that the rate will be less favorable it'll be beyond 1.1 15 the rate of 1 15 So we do forward purchasing to six-month rates for the moment. We don't go further than six months. I see no new questions in the chat. Two hypotheses. Either we've been very, very clear in everything we've said and you've got no questions, or you're all exhausted by this first part of the year and ready to get off on holiday. I've got on the English side, we've got a question, Anglo-Saxon waking up. So it's who asks, could you discuss the outlook for additional acquisitions a bit more, particular on the international side? It's true that when we look at our turnover internationally, we're still around 18, 18.9%. because we've got the arrival of Keeley Knox. As we specified in our strategy, our objective is to rebalance France and internationally and to focus acquisitions on industry and water cycle because when we see the capitalization of the companies we see that we've got more added value and maybe more synergy with companies in their water cycle and valves. so for the moment we have no new news to tell you to talk to you about we've got no projects internationally which are sufficiently advanced or sufficiently detailed to be able to talk to you about that now but that's why we decided to appoint this person who will work on that full-time in order to have to permanently have ideas of possibilities of opportunities and be able to react to these potential operations at the level of the group. We did have one opportunity at the beginning of the year, but the company in question is going to be sold much more expensively, at a much higher level than we had proposed, because we need to ensure a good return on investment. and in particular for our shareholders so of course we will remain active but not at just any price we of course as usual are prudent with your money okay so for the moment I don't have any other questions you know that Patricia and I Even though we are having holidays in August, we're always happy to answer your questions. If you want to, from SEPTA onwards, if you want to talk to us, we're available to speak to you, webinar or video, whatever, whatever. and if we have no more questions we'll wind up this webinar. Thank you all very much for your attention and wishing you all a very lovely summer. Thank you for joining us today and have a great summer. Bye bye.