Viridien S/Adr

Good day and thank you for standing by. Welcome to the Veridian second quarter 2026 financial results conference call and webcast. At this time all participants are in listen-only mode. After the speaker's presentation there will be the question and answer session. To ask a question during the session you need to press star 1 1 on the telephone keypad. You will then hear an automatic message advising your hand is raised. To withdraw a question please press star 1 and 1 again. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link at any time during the live event. Please be advised that this conference is being recorded. I would now like to hand the conference over to our first speaker today, Alexandre Leroy, Head of Investor Relations. Please go ahead.

Good morning and good afternoon, everyone. Thank you for joining us today for Veritian's Q2 2026 results presentation. I'm Alexandre Leroy of Investor Relations and Corporate Finance. We are hosting today's call from Paris and I'm pleased to be joined with our newly appointed CEO Henning Berg and our Group CFO Jerome Serve who will walk you through our performance. Before we begin, a few housekeeping items. This call is being recorded and is accessible via both Zoom and online platforms. An audio replay will be available shortly on our website www.virutengroove.com. The presentation slides are also available for download from the website. Please note that today's presentation includes forward-looking statements. Actual results may differ materially from those expressed or implied today. Relevant risk factors are detailed in our 2025 Universal Registration Document, sealed with the French Financial Market Authority . As usual, we'll conclude with a Q&A session. And finally, a quick reminder that you can comment primarily on segment figures, which reflect our internal management reporting. This differs from IFRS numbers also published today due to IFRS 15 impacts on our Earth Data business. With that, I now hand over to management, starting with Henning, who will take you through the key business highlights for the quarter.

Henning, the floor is yours. Thank you, Alexandre. Good morning and good afternoon, everyone. Before turning to the market and our first half performance, I would like to share a few personal reflections from my first five months at Viridian. What has impressed me most is the quality of this company, the strength of our people, our world-class technology, and the depth of our customer relationships. We are the clear market leader in two out of three of our businesses. And across all three business lines, we hold leading technology positions. This leadership has been built over decades through innovation, technical excellence, and the trust of our clients. I also believe I joined Viridian at an important moment in its journey. Over the past several years, the team has successfully transformed the company, strengthening the balance sheets, improving test generation through the cycle, and significantly reduced leverage. As a result, Viridian is now more resilient and more flexible, with a much stronger foundation from which to accelerate long-term value creation. One of the things that has stood particularly out to me is the degree of differentiation within our technology platform. In my discussions with customers, they consistently recognize Radeon's technology leadership. Our market-leading seismic imaging capabilities help clients make better informed decisions about where to drill and how to extend the productive life of their reservoir. This can shorten time to market while reducing the cost and risk across the exploration to production value chain. Through CERCEL, we also provide market-leading seismic acquisition equipment and solutions. Accel, our latest land seismic drop-node system, is a strong example of how our innovation can improve both operational efficiency and data quality. AI is of course another major topic across industries today. What I discovered at Viridian is that we are not at the beginning of this journey. For many years, we have combined data-driven approaches, AI and machine learning, to analysis, to analyze some of the world's largest and most complex datasets. Importantly, AI is not a standalone capability at Viridian. It is combined with deep scientific expertise, proprietary physics-based algorithms, and highly customized high-performance computing. This combination makes our technology commercially differentiated as it enables us to process more data, operate more efficiently, and generate richer insights for our clients. More broadly, the current convergence of data, computing power and AI is exceptionally well aligned with our core capabilities. It is creating new opportunities for both within our existing markets and over time in adjacent areas where we can leverage our expertise in data, high performance computing and digital technologies. It is still early in my tenure and I want to take the necessary time to develop the right long-term roadmap. Today is therefore not the time to present a new strategy. However, I am very excited by the opportunities ahead and I look forward to sharing a broader strategic perspective at the capital markets day in 2027. With that perspective in mind, let me now turn to the market environment and our first half performance. I am now on slide three. Our performance in Q2 continues to be affected by the conflict in the Middle East and broader geopolitical uncertainty. which reinforced capital discipline among E&P companies and resulted in delays to certain product awards particularly within sensing and monitoring. Against this backdrop Q2 segment revenue was 232 million while segment adjusted EBITDA was 92 million. At the same time we continue to see encouraging signs on the commercial side. Jio's backlog rebuilt to 306 million at the end of June 19% above the level recorded at year-end 2025. We are also seeing signs of an exploration pickup in emerging and frontier basins with accelerating demand for reprocessing and the emergence of new multi-client opportunities. Importantly, based on our asset-light differentiated technology strategy, the group continues to generate positive cash despite the challenge in the near-term environment. Net cash flow reached 32 million in the first half supported by focused investments enabled by the flexibility of our asset-light business model. Cash flow remained positive in Q2, while we paid our half-year coupon on bonds. This enabled us to make further progress on deleveraging, with net debt excluding IFRS 16 reducing to below 700 million marks to 692 million at the end of June. Overall, while the near-term market environment remains uncertain, Our commercial momentum is improving, our balance sheet continues to strengthen, and we remain fully focused on discipline execution and test generation. As a result, and supported by continued gradually strengthening in market conditions through the second half, we maintain our full year 2026 objective of generating $100 million of net cash flow. Turning to slide 5, we will now review the quarterly performance of each business line, starting with Geoscience. Q2 2026 total production remained broadly stable at $141 million compared to $142 million in Q2 2025. External segment revenue was $95 million. During the quarters, some project startups were delayed amid political uncertainties. At the same time, internal production increased to $45 million which means GEO delivered a higher level of activity for Earth data including both the processing of newly acquired data and the reprocessing of legacy datasets. Commercial momentum nevertheless strengthened significantly towards the end of the quarter. Several discussions that have been progressing over the last few months converted into signed contracts and recognized order intakes. As a result, GEO backlog reached 306 million at the end of June up 19% compared to year-end 2025 and close to our historical all-time record level. This provides stronger visibility for the coming quarters. Operational efficiency also continues to improve, with total production per employee increasing by 9% year-on-year to $400,000. Overall, GEO delivered stable production in the second quarter, improved backlog, and continued to achieve productivity gains. Good performance in the current market environment and directionally aligned with our 2026 objectives. Turning to slide 6. One of the questions we are often asked is how geoscience can continue to grow from an already strong market position. With an estimated market share of around 55%, our objective is not only to defend our leadership, but also to broaden the addressable market by changing the nature and scope of our relationship with clients. We are increasingly seeing ENP companies move away from purely project-by-project rewards and towards long-term strategic processing partnerships. These partnerships can take many different forms. We have two examples here. With Aker BP, they wanted to secure long-term access to our high-end OBN processing capabilities for multi-client projects on the Norwegian continental shelf. With one of the major international oil companies, we further developed this trend towards long-term processing partnerships through a multi-year agreement covering the externalization of all in-house seismic processing activities worldwide. For our clients, these long-term arrangements ensure access to leading subsurface imaging capabilities in high-performance confused capacity while accelerating exploration cycle time, reducing overall risk and enabling greater organizational flexibility. For Veridian, they provide multi-year revenue visibility, deepen our integration within clients operating models and creating broader opportunities for growth including the deployment of our full technology portfolio and our high performance computing capabilities. This is therefore an important growth avenue for geoscience. With these strategic partnerships, we can further expand the accessible market by bringing activities that were previously performed in-house into long-term partnerships with the region. This is an addition to increasing our market share the traditional way through normal project works. In doing so, we reinforce our customers' relationships, improve commercial visibility, and create additional opportunities for sustainable growth. Turning now to Earth Data on slide 7. Q2 revenue increased to 76 million up from 66 million in Q2 2025 and from 54 million in Q1 2026. The sequential improvement mainly reflects the pacing and progression of our multi-client projects during the quarter. As you know, Earth Data revenue recognition can vary meaningfully from one period to another Depending on project milestones, government bid activity, the timing of client commitments and of course the level of late sales. This quarter by quarter volatility primarily reflects industry and project pacing rather than any change in the underlying attractiveness of the business. Along with the technical quality of our data library, which is supported by a leading top surface imaging, the commercial quality of our library remains strong. At the end of June, 66% of the library's netbook value related to work that was either in progress or multi-client data that was less than one year old, and 93% of the netbook value was related to work that was either in progress or data that was less than two years old. This highlights the relatively young profile of our portfolio and the relevance of our recent investment activity. The library is also well diversified geographically, with 39% of netbook value in the key basins in Europe and Africa, 30% in North America, 24% in South America, and 7% elsewhere. Overall, Earthdata delivered the planned sequential improvements in Q2, supported by strong project execution while continuing to invest in a technically superior and commercially differentiated library of new data. Diversified across the world, key petroleum datacents, this high-quality portfolio together with our asset-light model provides a durable foundation for future revenues and strong cash generation through the cycle. Staying with Earth data on slide 8 illustrates how we are positioning the business to optimize cash generation and capture the emerging pickups in software recuperation. The activities shown here span three complementary areas, strategic government agreements, reprocessing projects, and selective new data acquisitions. Our multi-client agreements with governments in Morocco, Senegal, and Egypt gives us privileged access to basins and data, an established region where future exploration activity is expected to develop. These agreements can generate opportunities for data licensing both through the reprocessing of data in the area, as well as new acquisition programs. For reprocessing, we are seeing growing demand, which is typically a capital efficient way to unlock additional value from existing data sets. Projects are currently underway in Guyana, Malta, Cote d'Ivoire, India and Malaysia among others. These projects allow our clients to revisit exploration opportunity using our latest imaging technologies, efficiently generating additional value from already existing data. For new acquisition, we continue to invest selectively in new projects. In Guyana, the Shallow Water 3D project has commenced under an exclusive agreement with the government. In Uruguay, the first season of the Shawara 3D survey has been completed, and the second season is scheduled to begin in the fourth quarter. In Malaysia, the Langkisaka project combines hybrid streamer and OBM acquisition with high-end processing in partnership with Malaysia Petroleum Management. Taken together, these initiatives demonstrate how our asset-life differentiated technology model allows us to combine strategic positioning in frontier basins with reprocessing activity and disciplined investment in new programs. Our approach supports resilient cash generation through the cycle and enables quick exploration as exploration markets recover. Turning now to sensing and monitoring on slide 9. The business continued to be significantly impacted by disruption in the Middle East. Q2 segment revenue was 61 million and stable compared with the first quarter of 2026. The impact was most pronounced in land, where revenue declined to 22 million from 52 million a year earlier. This primary reflected delayed project sanctioning and low recruitment demands across several Middle Marine proved more resilient, although activity was also affected by slower customer decision and project timing, including delay of a large OBN project in the Middle East. Our new business growth initiatives kept performing well, increasing 34% year on year and accounting for 32% of SMO revenues in Q2 2020. Overall visibility at current is improving, but remains limited. In this environment, we are focused on strict cost discipline, cash preservation, and maintaining our readiness to respond with product activity. Turning now to slide 10, while the current performance remains on the pressure decimal, we are also beginning to see some early signs of improvement in the government market. In our core market, tendering activity is expected to increase going forward. We currently see several potential mega-crew tenders in Saudi Arabia and Mexico, while a number of more traditional projects in Qatar, Saudi Arabia, Iraq and Jordan move forward as regional tensions. These opportunities remain subject to customer decision and market conditions, so it is too early to confirm a role-based recovery. However, the pipeline and client discussions are becoming more active, and this gives us great confidence that demand will gradually improve, especially from 2027 onwards. In this market, we are creating our own growth opportunities through innovation. Accel, our latest land seismic node system, is gaining encouraging commercial traction. More than 20,000 channels have already been sold in 2026, including wins with customers new to the brand and a further 150,000 channels are currently included in quotations submitted to more than 20 customers. Overall, while visibility remains limited, combination of a more active tender pipeline and the early commercial success of Excel provides encouraging signs for the future. With that, I'll now hand it over to Jerome who will walk you through the financial performance review.