Clariane Aktie

Welcome to the Clariane First Quarter 2026 Presentation. [Operator Instructions]

Now I will hand the conference over to the management team. Please go ahead.

Good afternoon, ladies and gentlemen, and thank you for joining Stephane Bisseuil and I today. I'm Gregory Lovichi, Chief Financial Officer of the Clariane Group, and I will present our revenue for the first quarter of 2026 and reiterate our guidance for 2026 as well as the longer-term outlook to 2028.

Before going into the details, let me highlight that this quarter is fully in line with the momentum observed in the second half of last year with solid growth across all our activities and geographies. I will start with the key highlights of the quarter and then walk you through the main drivers contributing to our revenue performance.

Let me start with the key highlights for the quarter on Slide 5. First, we delivered solid organic revenue growth of plus 4.9%, fully in line with our trajectory with all activities contributing. This performance is supported by both volume and pricing effects. In long-term care, occupancy continues to improve with an average rate of 91.7%, up 130 basis points compared to last year. This is an important driver of growth. Alternative Living Solutions also showed strong momentum with organic growth of plus 6.9%.

In Specialty Care, activity is supported by the continued development of outpatient care and management contracts, which are driving volume across all geographies. Second, we have confirmed our access to debt capital markets with a successful issuance of a EUR 500 million senior unsecured high-yield bond in a particularly challenging market environment. This transaction was very well received by investors as evidenced by a large oversubscription around 5x and allows us to secure the refinancing of our upcoming maturities while further strengthening the group's liquidity position.

Finally, we are confirming all our medium-term objectives. For the 2023-2026 period, we maintain our target of around plus 5% organic revenue CAGR, an improvement in our pre-IFRS 16 EBITDA margin of 100 to 150 basis points on 2023.

Therefore, with a 2026 EBITDA margin of 11.5% to 12% and a Wholeco leverage below 5x by the end of '26 per current definition and balance sheet structure. And looking beyond, our 2025-2028 outlook remains unchanged, with around plus 4% revenue CAGR, a pre-IFRS 16 EBITDA CAGR of plus 7% to plus 9% on a pro forma basis an EBITDA opco CAGR of plus 11% to plus 14% and a Wholeco financial leverage as defined in its bank financing agreement of around 4.5x at the end of 2028 per current definition and balance sheet structure.

Overall, this quarter confirms both the strength of our operating momentum and the consistency of our financial trajectory.

Let me now turn to the revenue performance in more detail. In the first quarter, revenue reached EUR 1.336 billion, representing reported growth of plus 1.4% and organic growth of plus 4.9%. This solid performance reflects a broad-based momentum with all activities and all geographies contributing to growth.

Starting with activities. Long-term care, which represents around 75% of the group's revenue, organic growth stood at plus 5.5%. This performance is driven by both occupancy increases and pricing, particularly in medicalized nursing homes, which grew plus 5.2% organically.

Alternative Living Solutions also showed strong organic growth of plus 6.9%, reflecting the continued development of the shared housing network. In Specialty Care, revenue grew by plus 3.3% on an organic basis. This reflects both an increase in activity, particularly in outpatient care and the positive impact of case mix improvement, notably in France.

Looking now at geographies, Germany and Spain are the main contributor to growth with organic growth of plus 8.3% and plus 15.2%, respectively, supported by both pricing and occupancy dynamics. Belgium and the Netherlands also delivered solid growth at plus 5.9%. In France, organic growth stood at plus 1.8% with a positive contribution from occupancy in long-term care and continued progress in pricing and case mix in Specialty Care.

Finally, Italy posted organic growth of plus 3.5%, driven by tariff increases with occupancy rates already at a high level. Overall, this performance illustrates once again the strength of our diversified model, both in terms of activities and geographies.

Let's now take a closer look at the revenue bridge. We start from a Q1 2025 reported revenue at EUR 1.317 billion. The first element to highlight is the perimeter effect, which is negative at minus EUR 44 million or minus 3.5%, mainly reflecting disposals in France, Italy and Germany as part of the plan to reinforce the capital structure of the group. On a like-for-like basis, this brings us to a pro forma revenue base of EUR 1.274 billion.

From this base, organic growth is plus 4.9%, driven by both volume and price effects. Volume contributed to plus EUR 20 million or plus 1.6%. This is mainly driven by long-term care of plus EUR 16 million with occupancy gains in medicalized nursing homes, particularly in Belgium and the Netherlands as well as growth in alternative living solutions.

Specialty Care also contributed positively to around plus EUR 4 million, supported by increased activity, particularly in outpatient care in France and Spain. Second key driver is price and case mix which contributed plus EUR 42 million or plus 3.3%. In Long-term Care, this represents plus EUR 36 million, mainly driven by pricing in Germany, Belgium, the Netherlands and France.

In Specialty Care, the contribution is plus EUR 7 million, reflecting the positive impact of corrective measures implemented in France following the SMA reform as well as the contribution from Italy. Overall, price and mix remain the main driver of growth in the quarter. Putting all these elements together, we reached Q1 2026 revenue of EUR 1.336 billion, with a reported growth of plus 1.4% and organic growth of plus 4.9%.

Let me briefly focus now on occupancy on Slide 9. In Q1 2026, the average occupancy rate reached 91.7%, up by 1.3 percentage points compared to Q1 2025. This confirms the continuous improvement trend we have seen since 2023. And importantly, we still have further growth potential embedded within our existing capacity.

Let's now turn to energy costs on Slide 11. In the current context, we have implemented a proactive approach to manage both supply and price volatility. As of February around 93% of our 2026 energy needs are already hedged, providing good visibility in the short term. As of today, this hedging goes to close to 98%. We have also significant coverage for 2027 and 2028. This strategy was anticipated ahead of recent geopolitical tensions and is based on estimated needs at group level. At the same time, we closely monitor the situation through dedicated governance with regular reviews at both group and country levels.

And finally, we continue to adapt our approach both through adjustments to our hedging strategy and through ongoing initiatives to improve energy efficiency. Overall, this allow us to limit exposure to volatility and secure our cost base.

Moving to our financing on Slide 13. You are already familiar with the overall trajectory, so I will focus on most recent development. In April, we successfully issued EUR 500 million of high-yield bond and unsecured senior notes maturing in 2031. This transaction was very well received in the market with an oversubscription of around 5x from a broad base of Tier 1 French and international institutional investors.

The bond carries a coupon of around 6.9%, which we consider very solid given the current market conditions. Proceeds will be used to refinance our 2026, 2027 and 2028 maturities and further strengthened the group's liquidity position. Importantly, this transaction confirms our restored access to the high-yield debt capital markets even in a more challenging context. More broadly, it is fully in line with our financial strategy, which is to anticipate financing well ahead 12 to 18 months before maturities and to continue optimizing our financial structure.

Note that the company continues to actively monitor market conditions with a view to keep streamlining its financial structure on an opportunistic basis.

Let's now move to Slide 15 and conclude on our outlook. Following the completion of the asset disposal plan and the successful refinancing, the group is now fully focused on its operations and on executing its road map. On this basis and in line with the operational efficiency measures already implemented, including the Better Support Program, cost reductions and digital transformation. We expect several drivers to support performance in 2026. First, continued volume growth across all geographies, both in the mature network and in ramp-up facilities; second, the full year effect of price increases implemented in 2025, particularly in Germany; and third, the benefit from active case mix management in Specialty Care in France.

In this context, we confirm our objectives for 2026. This means organic revenue growth of around plus 5%, an improvement in EBITDA margin of 100 to 150 basis points compared to 2023 and a financial leverage below 5x by the end of 2026.

Let me now briefly outline the key levers supporting our medium-term trajectory in Slide 16. First, we are focusing on our existing asset base to fully capture the growth and profitability potential embedded in our network. This is supported by the strength of our operating model, combining a robust quality management framework, strong medical expertise and continued investment in employee training.

Second, growth is already embedded in our platform. We expect to progressively reach higher occupancy levels in Long-term Care while continuing to develop outpatient activity in Specialty Care. At the same time, we will further improve case mix management and continue to grow private pay and nonregulated activities.

Third, we are maintaining strict discipline in capital allocation. This means prioritizing operational readiness being selective on investment and accelerating the digitalization of our operating model.

Last but not least, regarding public financing, we are operating with a cautious approach with limited reliance on public funding increases and with proactive cost-saving measures already identified. Overall, these levers give us good visibility on our growth and profitability trajectory over the medium term.

To conclude on Slide 17, let me briefly recap our medium-term outlook as well. First, as I pointed out previously, we confirm our 2023-2026 objectives. At the same time, our medium-term trajectory remain unchanged. Under our 2025-2028 plan, we are targeting around plus 4% revenue CAGR combined with EBITDA CAGR between plus 7% and plus 9% and an even faster improvement in profitability at the OpCo level with a CAGR expected at between plus 11% to plus 14%.

This will be supported by the operational levers we have just outlined as well as strict financial discipline. Overall, we have a clear and consistent road map combining growth, margin improvement and continued deleveraging.

On that note, thank you for your attention, and I'm available together with Stephane to take your questions.

[Operator Instructions]

Okay. Gregory, from the web, we have a few questions regarding the capital structures, more specifically regarding the hybrids. So how should we think about the capital strategy for the group, especially regarding your capital instrument, i.e., the GBP and the ODIRNANE? How are you going to deal with those bonds? Are you going to repay them in the next 12 to 18 months?

So thanks for the question. So as you know, hybrids are and especially as hybrids, including the GBP1 are considered as equity and IFRS and therefore, does not affect our total net leverage ratio, we call Wholeco leverage ratio. So we have a constraint, meaning that as the term of our SFA, redemption of hybrid instruments, with senior debt is possible as soon as the group total net leverage is below 5x, while our leverage or the latest leverage release was at 5.1x Wholeco.

Like we already said, we will, therefore, evaluate all the options to refinance these instruments at any time. And obviously, the group will communicate on due time on the way to do it. And maybe as a reminder, alongside the operational strengthening that we have experienced the past years, we have worked a lot on reinforcing the capital structure of the group with 2 main objectives: simplification of the capital structure and improving the cash generation.

And obviously, working on these hybrid treatments is one of the priority to achieve these 2 [ objectives ].

Thank you, Gregory. On the operational side, a few questions, the first one, at what level do you think occupancy could peak for the company versus the 91.7% of the moment? Is 95% achievable, and if so, how quickly?

Yes. Thanks for this. So the 91.7% show a strong improvement compared to the last quarter or the quarter of last year. And when you look, it's quite heterogenous between countries. We have countries like Italy that posted occupancy rate above 97%, meaning that we still have some potential in other countries. We'll not say that everybody will reach or will be above the 95%, but we can consider the range of 94%, up to 95% as a kind of a clear and a solid objective to target as a group when it came to occupancy rates in the nursing home.

Thank you, Gregory. We have a question regarding the energy cost due to the situation in Middle East. How do you expect your energy bill to be in 2026, 2027 compared to 2025?

Yes. So no in the -- like we are mentioning and especially in 2026, energy cost for us barely 2% of the total turnover of the group. Part of our hedging and risk policy, we have already hedged the main part of the energy last year, it was before what's happening currently in the Middle East, the energy on the market. Currently, we are close to 98% of the 2026 needs covered, meaning that we don't have impact when it came to the inflation of potential inflation on the energy for 2026. And we have as well a good level of coverage with next year because we are already hedged above 60%. So providing us good visibility in the short and medium term when it came to this specific sector.

Thank you. There is a question regarding the announcement that we made at the time of the full year publication regarding the cost reduction plan, especially in France and Germany. Can you provide an update?

Yes, for sure. So we -- part of the improvement and the profitability improvement at group level that we saw already in the P&L in H2 2025 and continuing in 2026, our cost reduction measures. These cost reduction measures come on top of the volume improvement that is visible in Q1, a strong price increase, and we saw it as well, 2/3 of the top line improvement in Q1 is coming from price. Big element as well on the profitability improvement is coming with the cost measures, especially central cost reduction.

So it was mainly in France and in Germany. The plan in Germany and in France, especially also in Germany, plan has been announced and is already done and implemented. And in France, well on track and discussion with representative of the employees are still ongoing, and the plan is executing according to the schedule we have in our budget.

Thank you, Gregory. Next question regarding France and more specifically in the health care following the reform that we -- that has been implemented last year. Where are we in terms of compensating for the consequences that we've seen in 2025 of this reform?

Yes. So thanks for the question. The reform, we already started to work some months and years ago on adapting to the reforms. Main element to adapt on the reforms were already visible in the second half of 2025. The team in Specialty Care in France is actively working on the case mix after the reforms to be able with price increase to offset part of overall funding that were not received the post the reforms.

And we will say that this element is progressing very well with case mix translated into price increases in France, Specialty Care continuing on the good trend in Q1 2026.

Thank you, Gregory. There is one question regarding that. I'm not sure this is the right call to answer this question, as we answered in Q1. But the question is, do you expect in amount, the net debt of the group to decrease compared to last year?

What I can say is that the guidance of the group is to be below 5x Wholeco EBITDA with the same capital structure by the end of December 2026, and that we've just confirmed the guidance.

Thank you. Regarding the disposal plan that we finished last year, are we expecting more disposals?

No, the disposal plan has been completed last year. And as a reminder, 6 months ahead of schedule. We didn't announce any new disposal program or plan Nevertheless, obviously, with a group of our size, we may be in a situation to make some portfolio review, but doesn't mean a disposal plan or program. It's more usual portfolio optimization for a group of our size.

Thank you. All in all, how much are we expecting in terms of inflation, especially regarding wage this year in the different geographies?

Two elements, when it came to wage inflation for our sector. This year, and especially in the main geographies, wage inflation have already been negotiated and implemented for 2026 early this year because they have been worked already in last year, and they are already negotiated in line with what we have budgeted. And I think we could have in mind as well in some main geographies like Germany, where we have as well and not only in Germany, but especially in Germany, and it was visible as well in the price improvement we saw in the last 2 years. We have this ability as well to pass through to the -- the price as the wage increase.

Thank you, Gregory. The next question will be live. So please, Maria, can you give the mic to [indiscernible] please.

The next question comes from Constantin Gumenita from Caius Capital.

A quick question for me. If you could -- looking at the countries, fantastic performance across the board, especially in international. But looking at France specifically, maybe if you could comment a little bit on the speed of getting to that 94% to 95% target occupancy rate that you mentioned versus the sort of 88%, 89% that you have right now. Any color would be helpful.

Yes. It's -- what we see in France, we still have a solid level of net entries compared to last year. And this is what we have seen as well in the nursing homes with occupancy rate at 88.5% compared to 87.4%. And what we see is that we have a good dynamic in France. And certainly, we see good dynamics. What we see is that we are able to regain in average 100 basis point a year when it came to occupancy.

So this is certainly -- sometimes it's -- we can regain it faster depending on some situation and some years it's a bit less, but this 100 basis point catch-up is certainly a good proxy in France. And when I say this as well in France occupation rate, we see a good development and certainly a better development than the market [indiscernible].

Thank you, Constantin. We'll take the last question. regarding the regulatory change in France and the pricing environment decided in the social security scheme. Could you tell us a little bit or give us a little bit of color regarding those changes?

So on the -- certainly, what we see on the -- and this is a question, and I will answer a little bit as well with the plan 2025, 2028. When we see the last evolution and especially in France in terms of social security budget is slightly positive, first. It's slightly positive and in line with what we have budgeted. So it's good news. And when we say slightly positive and in line, it's because when we set up the plan, we build a plan up to us with indiscernible] action plan, rather a plan built on the financing or public financing improvement. So it's a plus 0% to 1% public financing inflation over the plan and the profitability regain comes from the action we just mentioned during the call around the top line, around as well the cost reduction measures.

But all of this is gathered for one common purpose is quality of care, quality of service and the synergy we have with the medical expertise to serve our community.

Thank you, Gregory. So this was the last question. I leave you to the final remarks.

So thanks to all for attending this call, and we obviously remain with Stephane available after this meeting if needed. And I wish you a good end of afternoon.

Welcome to the Clariane 2025 Full Year Results Presentation. [Operator Instructions]

Now I will hand the conference over to Sophie Boissard, CEO. Please go ahead.

Thank you very much. Ladies and gentlemen, dear investors, welcome to the Clariane Group 2025 Annual Results Presentation Meeting. My name is Sophie Boissard, Chief Executive Officer of the Clariane Group. Together with Grégory Lovichi, Chief Financial Officer of the group, I will present Clariane's results for the 2025 financial year. I will then discuss our group's outlook for '28 as part of our new medium-term plan, Succeeding Together.

As you see on the Slide #5, there are actually 3 key highlights for 2025. First, we have delivered a solid operating performance in accordance with our announced targets. Second, we have successfully completed, under excellent condition, the plan to strengthen the financial position we launched in 2023. Three, we confirm our profitable growth target for '26 and beyond, looking ahead to '28.

Let's say a while on the first message. In '25, we delivered a solid operational performance, as you see here, with revenue of EUR 5.310 billion, representing organic growth of 4.5%. All of the group's geographical areas and activities contributed to the increase in revenue, thanks both to steady volume growth and favorable price effects, particularly in Germany, which once again benefited from a strong pricing effect of around 8%. This positive momentum is reflected in the increase in operating profit. EBITDA reached EUR 594 million, up 3.1% compared to 2024. And the EBITDA margin, which remained stable over the financial year, improved significantly in the second half to 12.5%, up more than 260 basis points compared to the first half of 2025.

Operating cash flow generation also improved significantly with an operating free cash flow amount EUR 267 million, up 46%, driven by strong operating performance in the second half and the normalization of working capital requirements.

In terms of nonfinancial performance, which makes a lot of sense in our industry, we have once again met and even exceeded our targets. I will come back to this in a few moments.

The second highlight of '25 is about the plan to strengthen our financial position, which we launched in November 2023 in response to inflation and sharp rises in interest rates. This plan has enabled us to regain access to the bond market and the 6 months ahead of schedule. More specifically, last year, we achieved 3 major milestones. First, we finalized our EUR 5 billion divestment program with very good valuation terms. Second, we have been able to extend our syndicated credit facility and to return to the bond market with an initial unrated issue of EUR 500 million last summer. And finally, three, we obtained an inaugural rating from S&P and Moody's at B+ and B2, respectively, rating, which will facilitate our regular access to the bond market in the future.

Overall, as expected, we have been able to significantly reduce both our debt and our Wholeco leverage to 5.1x, and we have recovered a strong liquidity position, EUR 1.2 billion at the end of 2025.

Based on this achievement, and this is the third message for '25, we are in position to confirm our announced target for the '23-'26 period, namely an average organic growth of around 5% over the period, an improvement in the EBITDA margin of 100 to 150 basis points compared to '23 and a Wholeco leverage to be reduced to below 5x at the end of '26. Beyond '26 and building on the quality of our pan-European platform on our business portfolio as well on the good visibility we have on our activity report, we are targeting an average revenue growth of around 4% per year, taking into account the expected normalization in price increase in Germany following the strong catch-up cycle that started in 2020. This momentum, combined with the impact of the productivity plans that we have implemented at headquarters and in shared service as part of our better support efficiency program will contribute significantly to the growth of group's operating margin.

We are targeting an average EBITDA growth of between 7% and 9% over the period '25, '28, and an OPCO EBITDA growth of between 11% and 14% on a pro forma basis. And of course, we will continue to make reducing our leverage a priority in our financial policy, targeting to reach around 4.5% by the end of 2028.

I would now like to review the various elements of the '25 performance. As you see here on Slide #6, the main financial aggregates for the year. First, you see reflected the level of activity already mentioned, EUR 5.3 billion in revenue, up 4.5% organically. In terms of profitability, pro forma IFRS 16 EBITDAR reached EUR 1.2 billion, up 3.5% and the reported pre-IFRS 16 EBITDA amounted to EUR 594 million, up 3.1%.

In terms of cash flow generation, as I mentioned a moment ago, operating cash flow was very strong, up 46%. This performance supports our debt reduction trajectory. Net financial debt decreased by EUR 390 million compared to December '24, reaching EUR 3.1 billion. And as a result, Wholeco leverage has fallen sharply to 5.1x compared to 5.8x in 2024.

Finally, the group's net profit returned to positive territory, EUR 36 million pre-IFRS 16 and plus EUR 2 million post IFRS 16 to be compared with the loss of EUR 55 million in '24.

In terms of real estate, the value of the portfolio of the group stands at EUR 2.5 billion and the loan-to-value ratio has remained stable at 58% over the year.

Let's turn now to the main component of operating performance. First, here, the reflection on the divestment program we initiated 2 years ago. After this, we see now the new streamlined profile of Clariane. We focused on 6 countries and 2 complementary lines of business. First line dedicated to the elderly care under the Korian brand and the second line dedicated to non-acute mental health and rehabilitation under the brands, Inicea, Kormed and ITA in Spain. With 1,215 facilities in 6 countries, representing more than 90,000 beds, 65,000 employees and nearly 850,000 patients, we operate one of the Europe's leading specialty care networks.

In terms of country split, France accounts for 43% of revenue, which are shared almost equally between Korian and Inicea, elderly care and post-acute care. Germany is our second largest country, accounting for 25% of revenue under the Korian brand, followed by Belgium and the Netherlands with 16% of the revenue, Italy with 12% and Spain with 5% and some room for further growth.

In terms of mix, 3/4 of our revenue comes from long-term care, elderly care and 1/4 comes from specialty care, mainly in follow-up care, mental health and addiction treatment. It should be noted that the latter accounts for 80% of patients treated due to a very high churn and a strong growth in outpatient care.

And as you see on the bottom part of the slide, we are now showing the pro forma financial information pre '24, '25 that forms the basis for our objective in the new format of Clariane post disposal plan. I hope this will help understanding our figures and guidance on an easier basis.

Let's move on now to Slide #8. And this slide provides a very concrete overview of the major milestones achieved since the end of '23 of our plan to strengthen our financial position. As a result of these various milestones, we are already 1 year ahead of schedule, very close to the target of below 5x leverage by the end of 2026 that was at the core of the plan.

Let's move on to Slide #9, which is dedicated to our nonfinancial performance. '25 was another very good year in terms of nonfinancials. This is particularly true when it comes to quality of care with an NPS measured by Ipsos among 85,000 patients and carers that has risen again this year to reach an unprecedented level of plus 45, placing us more than 20 points above industry benchmarks. We have also improved our quality standards with now 99% of our elderly care homes and clinics that are ISO 9001 certified.

In terms of human resources, we remain also very focused and quite successful over the year. We were again recognized as a Top Employer Europe for the third consecutive year and for actually as an exception in our industry. We have also signed a Europe-wide agreement with our unions on health and safety at work and which support our efforts to continuously reduce frequency of workplace accident and absenteeism. And of course, and this is probably the most important, we continue to invest more than ever in skills development in order to be able to source on very scarce labor market, our own workforce. In '25, more than 7,700 employees representing around 12% of Clariane workforce took one of the qualifying courses offered by our Clariane University. This feeds into our internal promotion policy with 55% of our Facility Director position filled internally.

As the strong results show, ESG is more than ever a central part of our business plan as it is inseparable from our mission and a ground of quality, attractiveness and sustainable performance.

I will now hand over to Grégory for the details of our financial performance. Grégory, the floor is yours.

Thank you, Sophie. Good afternoon, ladies and gentlemen. So we can go on to Slide 11. I would like to begin this section by discussing revenue growth. In 2025, we posted organic growth of plus 4.5%, and this is an important point. All activities in all geographical areas contributed to this growth. With the new segmentation, the Long-Term Care business, which, as Sophie said, accounts for 76% of revenue, grew by 5.4% organically. This momentum was driven by price increases and improved occupancy rates despite the effect of closures and disposal in several countries. Specialty Care business, SMR and mental health accounts for 24% of revenue and grew by plus 1.8% organically. Here, too, scope effect is at work with disposal in France and Italy. And in France, the reading is impacted by factors related to the implementation of the SMR pricing reform, as already mentioned earlier this year.

Looking now at the geographical breakdown, Germany, Spain and Benelux are the main drivers with organic growth of plus 8%, 7.8% and 5%, respectively, supported by pricing and occupancy rates. Italy is also growing at plus 2.4% organically with pricing on the rise and occupancy rate already at a very high level. In France, organic growth is plus 2.6%. We were affected at the beginning of the year by the flu outbreak in nursing homes in the first quarter, but we are seeing a rebound in the second half of the year in Specialty Care, thanks in particular to an improved mix. Overall, organic growth driven by all activities and geographies, reflecting the group's relevance and strength in terms of activities and geographies.

Let's take a quick look at the revenue bridge on the Slide 12. We start with published revenue for 2024 of EUR 5.3 billion, the impact of the disposal plan is minus EUR 125 million or minus 2.5%. On a like-for-like basis, this gives us a pro forma base for 2024 of EUR 5.2 billion. On this basis, organic growth is plus 4.5%, driven mainly by the price and mix effect at plus EUR 156 million or plus 3.1%. This is mainly due to Long-Term Care with price effects, particularly in Germany and France. Volumes also made a positive contribution of EUR 74 million, plus 1.4% linked to improved occupancy rates and increased activity in Specialty Care.

Finally, there were 2 negative items, other effect for minus EUR 42 million and portfolio management for minus EUR 35 million, mainly related to pricing in France and Specialty Care, suspension of real estate development activities and the effects of M&A and closure, particularly in Germany. This brings us to a 2025 turnover of EUR 5.3 billion, a reported growth of plus 0.5% and overall solid organic growth of plus 4.5%, driven mainly by price and mix supplemented by volumes.

On the Slide 13, in our Long-Term Care business, we continue to improve occupancy rates. This is an important point because it has a direct impact on our growth and a positive trend in our margins. In 2025, the average occupancy rate over the 12 months will reach 91%, up from 2024. And the momentum has strengthened over the course of the year with the rate rising to 91.6% in the fourth quarter after a slightly lower start of the year.

Taking a step back, the trajectory is very clear. We are moving from 86.6% in 2022 to 88.5% in 2023, then 90.6% in '24 and 91% in '25. In other words, improvement is steady and ongoing. Finally, we still have significant volume growth potential within our existing capacities.

I would now like to look to the EBITDA performance by geography. First point is that the group's EBITDA margin is stable at 21.8% in 2025, the same level as in 2024. Behind the stability with quite contrasting trend depending on the country, we have seen marked improvements in most regions. Germany is making a significant progress with its margin rising from 21.3% to 24%, an increase of 260 basis points. Benelux countries are also improving at 23.3%, up 100 basis points. Italy is up slightly at 21.8%, an increase of 30 basis points. Conversely, France declined to 20.2%, down 200 basis points. This change is mainly due to the negative impact of the implementation of pricing reform in Specialty Care in France, central deployment costs of our Better Support program, which will bear full fruits from '26 onwards.

Finally, Spain came in 19.9%, down 70 basis points. This is mainly a mix effect linked to the development of asset-light contract-based activity in social care that does not require capital expenditure. Overall, these movements offset each other and explains the stability of the EBITDA margin at group level with significant improvement in most of countries and 2 areas of concern identified in France and Spain.

On the next slide, I would like now to take a look at the EBITDA bridge for '25 versus '24 pre-IFRS 16 to better understand the main drivers. We start with published EBITDA for '24 of EUR 605 million with a margin of 11.5%. The scope effect related to the divestment plan represent minus EUR 29 million. On a like-for-like basis, pro forma EBITDA for '24 is therefore EUR 576 million with a margin of 11.2%. With this basis, we first have a positive volume effect of EUR 17 million linked to the growth in activity, which was positive overall in all regions.

Next, the price effect is significant, plus EUR 156 million, supported in particular by significant revaluation in Germany and a positive effect in France, Benelux and Italy. On the other hand, cost inflation, net of performance measures represents minus EUR 155 million. In other words, the price effect almost offset cost inflation over the year. It should be noted that, as mentioned at the end of the first half of the year, pricing anomalies linked to the entry into force of the new SMR financing framework in France had a negative impact of EUR 23 million on our cost base and the impact of the cost of deploying our Better Support program was around EUR 15 million. These 2 factors combined had a negative impact of 60 basis points on the annual EBITDA margin, which restated from these 2 items would be at 11.8%. In total, EBITDA for 2025 comes to EUR 594 million with a margin of 11.2%, stable margin on a like-for-like basis and a growth in value driven by volumes and the ability to pass on cost increase.

Let us now move on the analysis of the profitability by half year. As you can see, the EBITDA margin is historically higher in the second half of the year. In 2025, the improvement in margin was even more robust with an increase in the second half to 12.5% compared to 9.9% in the first half of 2025. This improvement is notably driven by volumes that continue to improve in each of our regions, good control of operating costs and improved rates in the second half in Germany and a performance that is normalizing in SMR clinics in France.

Let's now move on cash and debt. And I will start with cash generation presented in accordance with IFRS 16. So in 2025, operating cash flow will increase significantly to EUR 469 million, up EUR 69 million compared to last year. This improvement is due to 3 factors: firstly, noncash and miscellaneous items, which remain negative; secondly, a sharp improvement in working capital requirements, showing a continued improvement in this indicator after a sharp deterioration in 2023; and finally, a level of maintenance CapEx that remains under control at EUR 111 million. In this context, free operating cash flow amounted to EUR 267 million, up EUR 84 million year-on-year. This corresponds to an EBITDA conversion rate of approximately 45%. We benefited from lower financial expenses due to lower interest payments. We are also maintaining a strict discipline on CapEx with maintenance and development CapEx totaling EUR 159 million compared with EUR 242 million in 2024.

Finally, positive impact of disposal reached EUR 368 million compared with EUR 391 million in 2024, contributing directly to debt reduction. In total, the net debt will decrease by EUR 408 million by the end of '25, including IAS 17. And excluding IAS 17, the decrease will be of EUR 390 million, mainly driven by the contribution of disposal, increase in operating cash flow and the growth in free operational cash flow. It should be noted that excluding disposal, net debt will have decreased over the period, thanks to positive net free cash flow.

I will now move on the debt and liquidity as at 31st of December '25. The first point is the net debt reduction. Excluding IFRS 16 and IAS 17, net financial debt fell by nearly EUR 400 million over the year to [ EUR 155 million ], bringing it closer to the EUR 3 billion level. This improvement is a result of a combination of cash generation and the contribution from disposal as we have just seen. Secondly, maturity profile of our debt is now better spread out. Maturities are mainly positioned from 2027 onwards with further maturities in '29 and '30, which reduce the risk of short-term refinancing that is in line with the return to normalized aspect to financing. Thirdly, liquidity remains solid. It stands at around EUR 1.2 billion, including an undrawn revolving credit facility with cash levels up at the end of 2024. Finally, on the real estate side, maturities are spread out over time, which also contributes to visibility on the financing trajectory.

On Slide 20, with the strengthened financing framework, I would like to move on the performance and the financial trajectory elements. Wholeco leverage ratio stands at 5.1x at the end of December '25 compared with 5.8x at the end of '24 and 5.6x at the end of June '25. This represents a decrease of approximately 1.1x since 2023. This improvement is due to 2 factors: Firstly, the finalization of the plan to strengthen the financial structure of the group; and secondly, the increase in cash generation, particularly operating free cash flow.

I will now move on to owned real estate and the gross value of the portfolio. We are starting from a value of EUR 2.6 billion at the end of '24. Firstly, there is a perimeter effect linked in particular to the disposal plan with minus EUR 155 million achieved at market price in a challenging environment, which highlights the value and liquidity of the group's assets. After the disposal, the pro forma value at the end of '24 is EUR 2.5 billion. From this base, value is broadly stable. Market effects are close to balance with a net impact of around minus EUR 10 million, indexation at EUR 29 million, largely offset by a slight change in the capitalization rate, which rises to 6.5% at the end of '25 from 6.4% at the end of '24 for an impact of minus EUR 38 million. In total, this results in a portfolio value of approximately EUR 2.5 billion at the end of '25, excluding scope effects, the value is stable with cap rates normalizing and the portfolio continuing to benefit from indexation.

In real estate, financing structure at the end of '25 clearly illustrates our asset smart strategy. The consolidated real estate portfolio is valued at approximately EUR 2.5 billion, as already mentioned. It is now mainly held in the shared equity partnership vehicles, accounting for approximately 77% of the total of EUR 1.9 billion. The balance corresponds to the directly held portfolio, representing approximately 23% of the total or EUR 600 million.

On the partnership side, we have 4 vehicles in place since 2020 with leading and long-term partners. The gross value of the assets in these vehicles amounts to a low EUR 1.9 billion and client economic share is approximately 52%. This structure allow us to share capital on long-term assets while maintaining significant exposure and good visibility on the value creation. At the same time, we maintain a locally held portfolio with a gross value of EUR 600 million. This structure combines the stability of a long-term real estate portfolio with more efficient capital allocation and support of our debt reduction trajectory while maintaining a solid real estate base.

On that note, I will hand back to Sophie to conclude with our outlook for the current year and the medium-term.

Thank you very much, Grégory. Before moving on to the outlook, I would like to take a moment to emphasize what makes the Clariane model so unique compared to its peers as highlighted in recent discussions with rating agencies. First, our size and the diversity of our business portfolio. We are now positioned as one of the leading pan-European social infrastructure platform, specializing in care and prevention of fragility. Our network of more than 1,200 facilities gives us a presence in 1,100 catchment areas across Europe, home to 70% of the EU population aged 65 and over.

Second, our strong corporate culture very much related to the purpose-driven part of the company and strongly integrated through our European identity and high-quality social dialogue.

Three, the quality of the markets in which we operate. As you all know, we benefit from the structural growth prospects for local health care demand driven by both demographics and epidemiology.

Four, and Grégory just explained it, we have a very strong and unique asset smart real estate strategy that is definitely a key asset and has been developed over nearly 10 years in partnership with leading institutionals and maximize our flexibility and directly support operational execution while contributing to financial discipline.

Five, and finally, our most valuable asset is, of course, our people. I've been fortunate to be able to rely for nearly 10 years on remarkable management teams that are both solid and experienced, backed by a robust framework and supported by long-term shareholders committed to the company. All this, of course, reinforces visibility, consistency in execution. And this is why we are now in the best position to focus on 2 key objectives for the next 3 years. First, returning to a level of profitability close to that which we enjoyed before COVID and the high inflation wave of 2022; and second, continuing to invest as part of a disciplined financial policy. And this is exactly what it is about in our new business plan entitled Succeeding Together.

Just a few seconds on the slide you already saw, and that illustrates the group's highly effective focusing over the last 24 months. I think the most important here is to say that we are equally balanced in terms of regulatory risk. None of our business subsegments accounts now for more than 20% of the group revenue. And definitively, this was a critical dimension and achievement of the plan and the disposal program we have achieved.

Slide #27. You see here the 4 pillars on which our new midterm plan relies for cross-functional levers that are common to all our activities. The third (sic) [ first ] pillar is the integrated quality and operating model, which ensures that we are the benchmark operator and which allow us to fully utilize our installed capacity. So this is definitely a driver for profitable growth.

The second pillar is our human resources policy, which guarantees that we can recruit and retain expert employees and committed health care teams even in labor market under severe strain, and this is probably one of the critical dimension in our industry across Europe.

The third pillar is the expertise we have been developing in geriatrics, in physical medicine and rehabilitation and in psychiatry with the support of leading research team we are teaming up with.

And finally, the fourth pillar is the digital and tech platform that we have set up with our Clariane Solution internal tech platform, which underpins the data support efficiency program.

Slide #28. You will see here, it reflects the main strategic priorities by segment. On the Long-Term Care, we have identified 3 priorities. We want to support the increasing need for medical care in our facility in strong conjunction with hospitals, which are becoming across Europe, one of our primary sources of referrals everywhere. Second, we want to be positioned to offer tailored support clinicals in the form of respite stays, sorry. And this becomes more and more a very significant part of the local demand. And third, we want to be able to rethink and to redesign our operational structures by fully integrating and leveraging the impact of digital and robotic tools to increase both robustness of our service and efficiency and cost.

On the medical, the Specialty Care segment, we have also defined 3 priorities for our clinics network. First, in our 200-and-so facilities for medical, post-acute and rehabilitation, we are focusing more and more on pushing on mixed care pathway, combining full hospitalization on one hand side with second part, outpatient support in the context of daily hospitalization. The effectiveness of this pathway bring autonomy to chronic patient is now clearly established and well recognized in terms of pricing by the authorities. And this is why since 2017, we have equipped all our clinic facilities with outpatient units, which are now largely saturated and which we are committed to expanding.

The second priority is around the transformation of our multipurpose post-acute facilities into geriatric platforms that can also offer local medical beds that can provide primary care to the 1/3 of patients over the age of 75 that do not have a general practitioner in France or in Germany.

And lastly, we are in the process of opening new specialized medical department for the treatment of chronic condition in around 20 clinics in Europe, either within existing facilities or in the form of autonomous satellite, and this actually covers selected specialties such as addiction treatment, mood disorders, neurologic disorders or oncology.

On the Slide #29, you now see how we transform those strategic priorities into revenue margin. On the revenue side, the top line side. We expect those various initiatives to fuel profitable growth of around [indiscernible] in each business segment divided equally between additional volume coming from higher occupancy with Long-Term Care, more outpatient development on the Specialty Care and extended capacities in selected places.

And the other part, and this is pretty much equally divided, will come from pricing, private pay on one hand side, especially for the Long-Term Care with our value-based approach strongly reflected in the high NPS and case mix management for the Specialty Care side that is now very much strongly in place with a data-driven approach that enable us to make sure that we really protect the revenue integrity of this activity.

Next, you will -- you see now how we transform this into EBITDA growth and actually a pretty strong growth foreseen for the next 3 years. Again, this will be very much balanced between the contribution of relative top line growth that will transform into higher EBITDA growth and an efficiency cost reduction part that is encompassed in our Better Support efficiency program. This program covers, as already said, selected initiatives that are targeting overhead and shared services already started -- well started in Germany, in France with around 200 FTE that will be cut along the next 12 months. And with the redesign that is ongoing of operative workflows and automation within the facilities and a strong partnership with our core suppliers in order to reduce the cost of service to facilities.

Of course, improving EBITDA means also improving cash flow generation and contributes to further deleveraging of the company. And this is clear, the debt reduction over the next 3 years will now be mainly driven primarily by cash generation. At the same time, we target to actively managing our debt to anticipate refinancing 12 to 18 months before maturities and to work to simplify and optimize the cost of debt as we have already started. This trajectory is supported by a very cautious approach in terms of financial policy. There won't be any dividend distribution in the medium-term given the leverage cap in our financing agreement. And in the same vein, external growth operation will only be considered in line with leverage targets with strict criteria in terms of strategy and risk return profile. Our objective is very clear. We want to generate positive free cash flow from '26 onwards and to continue reducing leverage on an ongoing basis.

So this brings me now to the conclusion, and I would like to reiterate our financial targets with 2 complementary horizons. First, and this is reflected on the left-hand side of the slide, we confirm our '23-'26 objective. We are targeting annual average organic revenue growth of around 5% over those 3 years, and we expect to see an improvement in the EBITDA margin pre-IFRS 16 and pro forma of 100 to 150 basis points, excluding real estate development. And we confirm, as already said, our target of Wholeco leverage being brought below 5x at the end of '26 on a comparable balance sheet basis.

Beyond that, and this is reflected on the right-hand side of the slide, our plan for '28 is one of continuity with the growth and profitability trajectory built on the levers I have just detailed as well as a new indicator known as OP EDA, which allow us to fully assess both operational efficiency and rent control. In this perspective, we are targeting for the next 3 years, average annual revenue growth of around 4% and average annual pro forma growth in EBITDA pre-IFRS 16 of between 7% and 9% and in OPCO EBITDA of between 11% and 14%. And finally, we are targeting Wholeco leverage of around 4.5% at the end of '28, again, on a comparable balance sheet basis. These targets reflect a clear trajectory, control growth, gradual improved profitability and continued debt reduction. More than ever, in '26, we will remain focused on our vision to take care of each person's humanity in times of vulnerability.

Thank you very much for your attention. Grégory and I are available to answer any questions you might have.

Grégory, Sophie, thank you for the presentation. We already have some questions on the webcast. So the first one is probably for you, Sophie. Do you expect price anomalies due to the reform of SMR in France to be fully recovered?

Yes, definitely. Maybe again on this price anomaly, what happened? Actually, there has been a new financing framework issued by the government in '24. And the government has forgotten to take into consideration the facility that had been opened between '20 and 2024. So actually, they forgotten 20%, 20 facilities in our 100 facility network in France [indiscernible] represent a missing funding of EUR 23 million. This has been recovered for the future for '26 onwards. So the authorities, and this is a major achievement of '25 recognized the mistake and agreed to add this missing funding for the future. We haven't been able to forgot the missing money for '25 and '24. We are actually claiming that for the future, the problem is now solved.

Thank you, Sophie. Next question. Did you receive all the cash from the disposal program or some expected to be released in '26?

Yes, almost all cash has been received in '24, '25. Some residual payments will be received in the first quarter of 2026.

Thank you, Grégory. We have a few questions on the refinancing of the hybrids. Can you elaborate on this subject?

Yes. If you look on the refinancing as a whole and maybe before because a lot has been done by the group since the refinancing plan has been completed ahead of schedule. What is important to have in mind is that, the plan has been set up to reaccess to a certain extent to the capital market has been done last summer for EUR 500 million unrated bond like you know. Then we start with a strong liquidity of EUR 1.2 billion at the end of December. And we want as a company, of course, to remain opportunistic to refinance upcoming maturities, and this is what we do.

When specifically to the hybrid instrument that are part of the capital structure, what we would like to say is that, we don't want to make any comment on the [ GBP ] breakdown and neither the ordinance. As of today, the SFA documentation prevents the group from repaying the hybrid instrument with cash on hand debt if the Wholeco leverage ratio is above 5, that is the case. And in that case, we can only repay with similar instrument, equity or [ CLARI ] equity. Nevertheless, obviously, we want to be opportunistic and to treat the capital structure as a whole.

And certainly, as you've seen and as side comment, the group, as mentioned by Sophie has recently released inaugural rating from both agencies yesterday.

Thank you, Grégory. Sophie, we have a question regarding the cost-cutting plan in France and where do we stand in the execution of this plan?

So the plan has been prepared over '25 with the launch of a new accounting system that is now fully working. And based on this new and unified accounting system, we are going to close one of our accounting platform. And this requires a social plan to support our colleagues that work on the platform. The social plan has been announced and is currently under discussion with our unions. We intend to deploy and to merge and to close the platform within '26, so the second half of '26. So part of the savings, to put it short, will be reflected in the P&L this year and the run rate of this cost reduction plan on overhead and shared services will be fully reflected in '27.

Again, looking at the EBITDA development for the next 3 years, half of the EBITDA increase will come from the cost reduction plan and efficiency program. And again, half of the programs target the central and shared services part and the rest target productivity within the facilities.

Thank you, Sophie. We have a question regarding the syndicated loan, which to be extended to May 2029 is subject to repayment or refinancing or extension of the 2027, 2028 maturities. What is our view on the fulfillment of these subjects?

Yes. Thanks for the question. So we have 2 steps to confirm the extension, one step for the maturities of 2027 and the second step of 2028. The first step or the maturity of 2027 have already been extended 2028 to 2028, sorry. It was related to the issuance of a bond more than EUR 300 million with maturity above 2027. That was the case when we issued the bond last summer with the maturity of 2030. And then, not only for the 2028, but for the other maturities, we have our financial policy is to address the debt 12 or 18 months in advance. So we are currently working on various options to continue to work for the second extension of the maturity of 2028 moving to 2029. And this relates to a EUR 480 million social bond and Euro PP that need to be addressed before that date.

Thank you, Grégory. I think we have a live question on the call.

The next question comes from [ Constantin Gimenita from Keys Capital ].

This is [ Constantin from Kais ]. I've got 3 questions, and I want to ask them one by one, please. So the first question, the second half 2025 performance shows double-digit recovery in EBITDA with margins at 12.5%. So applying that 12.5% margin to the full pro forma revenue of EUR 5.2 billion would imply a sort of run rate EBITDA of EUR 646 million or almost 15% up on a pro forma basis. So on top of that, in 2026, you're expecting probably around 4% organic revenue growth and cost reductions. So is this the right way to think about it? And if so, why is your midterm EBITDA guidance capped at 7% to 9%? Should we read it as an intentionally conservative floor?

Maybe 2 way to look at it, Constantin. It's very important, and you get it right on the second part of the year, why we have this 12.5% EBITDA margin is what we have already mentioned during the Q3, it shows the effect of the action plan that has been set up with the pricing in Germany, cost reduction in some regions and the normalization of the margin in the clinics in France. So this is something that we want to settle as a base from a half year basis to the full year basis, certainly helps you as well to bridge the gap when we say we confirm the guidance from an EBITDA margin coming from 10.5% in '23 with an improvement from 150 basis points that bring us between 11.5% and 12% margin in 2026.

Got it. Okay. And then on the capital structure, if I may. So to go a little bit further, so the EUR 500 million bond you issued last summer now trades at a 6% yield. At the same time, the small term loan and undrawn RCF, they have restrictions on the refinancing of hybrids and the dividends. But given that you have access to the bond and loan markets, which is totally normalized now, are you contemplating an early refinancing of the term loan and RCF in order to remove the restrictions imposed by them or even perhaps a broader refi along with some of the hybrids?

Constantin, I think thanks for the question. As you can see, the group is working on several options to address the capital structure. We want to be as flexible as possible and to keep the advance on the schedule we have already on that topic. What is important to have in mind, I guess, and I will just reiterate what I just said, I guess the inaugural rating that we have just received yesterday is as well for the group, a good element to have even more optionality when it came to work on the capital structure as well.

Okay. Clear. And the third question that I had was, so you've sort of successfully stabilized the business. You have EUR 800 million of cash on balance sheet. There is EUR 1.2 billion of liquidity. The business does generate positive organic cash flow post debt service, as you've highlighted. At the same time, the debt trades at 6%, which is pretty healthy yield, but the equity is 25% below the 2025 highs we saw. So the question I have is sort of a little bit open-ended, but what are your primary strategic priorities for this excess cash? And given the valuation gap between credit and equity, how are you sort of evaluating the relative IRR perhaps of an equity buyback?

I think this one, if we contemplate on the plan and the plan is for the group is to continue to be the European leading platform on what we do. And when it came to the capital structure, the key element when we see to have a conservative financial policy is that our objective there is to continuing on the deleveraging. I think this is key as well for us when you look at it.

And Constantin, if I may, I mean, we have been -- we have now the inaugural rating in place. And our aim is definitely to improve the rating looking forward. This is really a critical dimension of sustainable and relative growth for shareholders as for other stakeholders. And this will be our guidelines for the next 3 years.

Okay. Understood. But I just wanted to highlight, given the bonds are yielding 6% and the equity is 25% below the '25 highs. It seems like the better trade so to say [indiscernible] long-term...

Yes, but they have -- I mean, equity market have to digest -- yes, you're right, but equity markets have to digest the news flow that we just communicated.

Understood. Congrats again on the strong set of numbers.

We have a question regarding the -- when the covenants are being tested? Is it on a yearly basis, especially for the Wholeco leverage?

We test covenant on the [ pre-yearly ] basis, meaning each and every 6 months.

Thank you, Sophie, Grégory. This is all the questions that we had. Sophie, if you want to have closing remarks.

Yes. Thank you very much, Stephane. I can just highlight that the company has been a very strong and good way in overcoming the high inflation and interest rate upsurge '23 and that we are now healthy and best positioned to deliver on our Succeed Together new midterm plan. Thank you very much.

Welcome to the Clariane Third Quarter 2025 Conference Call.

[Operator Instructions]

Now I will hand the conference over to Sophie Boissard, CEO. Please go ahead.

Thank you very much. Good afternoon, everyone, and thank you for joining us today to review Clariane's revenue for the first 9 months of 2025.

Today, together with Grégory Lovichi, the Group CFO, we will take you through the key highlights of the period, the drivers of our 9-month performance and the progress achieved on our refinancing and debt reduction road map. We will close with the outlook for the remainder of the year and beyond.

On Slide 2, let me start with the main highlights for the first 9 months of 2025. Clariane top line momentum accelerated in Q3, reaching plus 5.1% organic growth. Year-to-date revenue growth is plus 4.9%, fully in line with our guidance. All our activities and geographies have been contributing to the top line performance. Long-term care, of course, with an average occupancy rate, which reached 90.8% over 9 months, 91.6% for the third quarter, which means an increase of 90 basis points versus previous year.

In the Specialty Care segment, we are seeing continuous progresses on the case mix and the pricing management, reaping the first fruits of the action plan we initiated in France to adjust to the new regulation framework. Lastly, as for the Community Care segment, which actually covers mainly the Netherlands and France, the growth reached the high single digits, supported by strong demand for home care-like solution and shared housing.

Second highlight, we have completed the plan to reinforce our financial structure, which represents a major milestone for our group. Our EUR 1 billion asset disposal program is now finalized 6 months ahead of schedule with an average multiple for the transaction of around 14x '24 EBITDA. In parallel, we were able to successfully issue a EUR 500 million unsecured bond, including a EUR 100 million tap closed early August and to fully repay our revolving credit facility.

Regarding our '25 guidance, we are confirming both our revenue target at around plus 5% organic growth and our holdco leverage ratio target at below 5.5x by year-end. When it comes to our earnings, we expect EBITDA pre-IFRS 16 and pro forma of disposals to grow around plus 10% in the second half of '25 versus '24 to be compared to the decline of minus 4.1% recording in the first half. EBITDA margin should, therefore, reach around 12% for the second half, benefiting from the gradual ramp-up of the cost reduction plans initiated on the central and operating structures, mainly in France and Germany.

Based on these various factors, full year EBITDA pre-IFRS 16 and pro forma of disposal is expected to increase, albeit below the initial range of plus 6% to plus 9%. As we enter Q4, our ambition and priorities at Clariane remain unchanged. We are more than ever focusing on the improvement of our operating performance, and we expect to see the full effect of the actions undertaken in '25 in '26.

I will now hand over to Grégory, who will take you through the detail of our 9 months revenue performance by segment and by geography as well as the completion of our refinancing plan. Grégory, the floor is yours.

Thank you, Sophie, and good afternoon to all. So let's start with the top line. So the group revenue for the first 9 months of 2025 amounted to EUR 3.9 billion, up plus 4.9% on an organic basis, fully in line with our annual guidance. Reported growth was plus 1.1%. The difference between reported and organic performance is due to the impact of disposals in 2024 and 2025 as part of the plan to strengthen the group's financial position, restated for real estate revenue and the revision of expected income from the reform of healthcare activities in France.

Looking at our activities on an organic basis, all segments and geographies contributed positively. In long-term care, which represent around 2/3 of our revenue, revenue grew plus 4.7% organically, supported by strong occupancy and continued price adjustments.

Specialty Care rose plus 3.2%, showing the gradual recovery in France after the new SMA post-acute rehabilitation activities, tariff reform and robust activity elsewhere in Europe. Finally, Community Care achieved plus 9.4% organic growth, driven by strong demand for home care and shared housing solutions.

Geographically, performance was equally balanced. France was up 3.4%, Germany up 8.2%. Belgium and Netherlands were up plus 5.1% and Italy was up 2.4%, while Spain was up plus 6.4%. Overall, this broad-based balanced momentum reflects both higher volumes, plus 1.2% or EUR 47 million and trade and case mix effects of plus 3.7% or EUR 138 million, offsetting the expected scope impact from our disposal program. This bridge illustrates the main drivers of our plus 4.9% organic growth over the first 9 months of the year.

Starting on the left, we generated an additional EUR 47 million from higher volumes equivalent to plus 1.2%. this reflects both higher occupancy levels in long-term care, particularly in Belgium and the Netherlands. We'll return to that and increased outpatient activity in Specialty Care, mainly in France and Spain. Community Care also contributed positively with continued network expansion in France and Germany.

Next, price and case mix effects added another EUR 138 million or plus 3.7%. This increase was largely driven by tariff adjustments in Germany and France, additional pricing momentum in Spain and Italy and ongoing rebalancing of case mix in our health care activities. Price remains the main driver of the top line growth.

This positive drivers were partly offset by the EUR 109 million negative perimeter effect or minus 2.8% linked to the planned disposal completed in the U.K., France, Italy and Germany, including [indiscernible] as well as a few smaller sites closures. Finally, other effects amounting to minus EUR 33 million or minus 1% reflect the temporary impact of the French health care tariff reform in Specialty Care and the end of the real estate development activities at [indiscernible].

Together, these elements bring up to EUR 3.976 billion in revenue as of end of September 2025. This performance confirms our solid momentum across all networks and activities underpin by steady occupancy, price adjustments and disciplined portfolio management.

On the Slide 9, if we focus on long-term care, occupancy continues to rise quarter after quarter. The average rate stood at 91.6% in Q3 compared to 90.7% in Q3 '24. To note, the occupancy rate improved by a full point over the sole third quarter. It reached 90.8% for the first 9 months of 2025, up nearly 1 point from a year ago despite the saver flu season early in '25, impacting France mainly and up 2 points on Q4 2023. This improvement demonstrates both the resilience of demand and the quality of our offer. We still have growth potential in bed in existing capacities and the ongoing rollout of [indiscernible] shared housing facilities in France.

On the Slide 11, let's take a closer look at the third quarter. Revenue for Q3 2025 came in at EUR 1.320 billion, up plus 1.8% reported and plus 5.1% on an organic basis, confirming the acceleration we expected in the second half. All activities and regions contributed positively. In Long-Term Care, revenue rose plus 3.3%, driven by a further rise in occupancy to 91.6%. In Specialty Care, activity rebounded strongly, up plus 6.7%, thanks to case mix improvement and operational adjustments implemented earlier this year.

And in Community Care, growth remained robust at plus 11.7%, supported by sustained demand in home care and shared housing. Geographically, this acceleration in organic growth over the third quarter is visible in France. It reached plus 4.7% versus plus 2.8% for the first 6 months of the year and in Germany, where organic growth grew to plus 8.8% versus plus 8.1% for the first 6 months of the year.

On the Slide 12, this bridge shows the main factors behind our plus 5.1% organic growth in the third quarter on top of plus 1.8% reported growth. Starting from the left, revenue rose from EUR 1.297 billion in Q3 last year to EUR 1.320 billion this year. The first element, volume effects added EUR 13 million or plus 1.1%. This reflects stable activity in long-term care with higher volumes in France, offsetting small decreases in Belgium, the Netherlands and Germany and continued growth in Specialty Care and Community Care. In Specialty Care, volumes were up EUR 9 million, mainly from outpatient activity in Spain, France and Italy, while Community Care contributed EUR 5 million, driven by higher demand in France and Germany.

Price and case mix effects were again a key driver, adding EUR 49 million or plus 4% on the quarter. These gains came primarily from tariff increase in Germany and France, improved case mix in Specialty Care and stronger pricing in Community Care, particularly in Germany. Offsetting these positive drivers, the perimeter effect was EUR 41 million or minus 3.3% linked to the final disposal completed during the summer, mainly [indiscernible] in France, along with smaller transaction in Italy and Germany. All in all, these combined effects explain our strong third quarter revenue of EUR 1.320 billion, confirming the steady acceleration of our activity in the second half of 2025.

Turning to our financing. I'd like to underline that Clariane has now restored its access to the debt capital markets following the successful completion of the EUR 1.5 billion financial strengthening plan 6 months ahead of schedule. In February 2025, we signed the amendment and extension of our syndicated facility for a total of EUR 625 million, extending in maturity to May '29.

This includes a EUR 300 million term loan and a EUR 325 million revolving credit facility together with a new EUR 150 million real estate credit line with the same maturity profile. Then in June, we successfully placed a EUR 400 million unsecured bond, which was increased by EUR 100 million in August to a total of EUR 500 million maturing in June 2030 with a 7.875% annual coupon. The transaction was more than 3x oversubscribed, attracting strong demand from leading French and international institutional investors. It followed the successful extension of our bank facilities and the completion of the disposal program.

The proceeds are designed to refinance debt falling due well ahead of maturities and to strengthen our liquidity position, not to fund new CapEx or distributions. Altogether, this action give Clariane long-term financial visibility, a broad investment base and a solid liquidity position supporting our continued deleveraging trajectory.

I now hand over to Sophie.

Thank you very much, Grégory. Let's move now to the outlook for '25 and for '23-'26. So looking ahead to the second half, our operating performance continues to improve quarter after quarter. In '25, our main target was to finalize the plan to strengthen the financial structure of the group, and that major milestone has now been reached, well ahead of schedule and in favorable conditions when considering the 14x average multiple transaction attached to the disposal plan.

With that behind us, we expect the second half of the year to benefit from our 4 key drivers. First driver, the completion of the disposal plan and the streamlining of our portfolio. Second driver, the increase of the volumes across all geographies in the major network as well as in the recently opened facilities, namely in the Netherlands and also in Spain.

Third driver, the positive development of the pricing, notably in Germany, which will bring more fruit in the last quarter. And fourth driver, the active management of case mix in Specialty Care, namely in France. As planned and already mentioned in H1, we have also started a cost reduction plan covering both central functions and operations. This cost reduction program aims to adapt the group cost structure to its new scope post disposal, to reap the fruit of the digital transformation we initiated 2 years ago and to take into account the new regulation and market environment in France.

These various initiatives, which include a social plan in Germany and required extensive discussions with the workers representative are now ramping up. We expect the full effect of the program to materialize in 2026. In this context, as I pointed out in my introduction, we are confirming both our organic revenue growth target of around plus 5% for '25 and our holdco leverage target at below 5.5x by year-end '25.

When it comes to earnings, we are expecting the EBITDA to increase over the second half of around plus 10% to be compared to the minus 4% recorded in the first half. Pre-IFRS 16 EBITDA margin for the second half should reach around 12% with the ramp-up of the cost reduction plan initiated in France and Germany. The full year EBITDA pre-IFRS 16 and pro forma of disposal is expected to increase, albeit below the initial range of plus 6% to plus 9%.

Let us now come to the outlook for '23-'26. So to wrap up, our ambitions and priority for '25 and beyond remain unchanged. We expect to reap in '26 the full benefit of the actions implemented over the year in terms of pricing, in terms of portfolio management and in terms of streamlined cost base. As I said, the actions started in '25 will already deliver tangible results in the second half, and they provide us with a solid base for a further margin acceleration.

So moving to our midterm outlook. We expect our EBITDA margin pro forma of disposal and excluding real estate development to improve in '26 by 100 to 150 basis points versus '23. with a leverage ratio below 5x and of course, an average revenue organic growth of plus -- around plus 5% over the period.

All this is supported by a continued and renewed focus on quality within our facilities and network with an NPS that is to remain above plus 40 as well as a strong focus on health and safety at work with a targeted reduction in the frequency of workplace accidents.

Our midterm goals reflect the balance of our strategy, a stronger financial foundation, a disciplined operational focus and a continued commitment to care, quality and responsibility across all our networks.

On this, I would like to thank you for your attention, and Grégory and I are now ready to move on to your questions.

[Operator Instructions]

Sophie, Grégory, thank you. We have quite some questions regarding what has changed and the reason of the change in the EBITDA objective for 2025. So would you please explain what has changed since end of July?

Yes. Thank you very much for the question. Actually, what has changed since end of July is a slower ramping up of the various cost reduction measures initiated. What are these cost reduction measures? It is they are about reducing the scope of our central functions in the larger countries, Germany and France on the back of the disposal program. So we have just signed with our unions a social plan on the headquarters in Germany. So this has been signed this week, and we were expecting this to happen a little bit earlier in the second half.

And the second major part of it is the adjustment of the operating organization, namely in the Specialty Care segment in France. So on the back of the new regulation, we have initiated a very wide plan to adjust the working organization clinic by clinic. And we decided to give a little bit more time to the discussion with the workers' representative at the clinic level in order to secure a safe lending for each and every facility and not to jeopardize the quality of activity in those clinics.

And this, of course, costed a little bit more time than expected but brings us a strong basis for a smooth and continued swallowing of the new regulation framework for the specialty care in France. So all those combined lead us to a little bit lower expectation in terms of EBITDA increase over the year but will place us on a pretty solid EBITDA margin on the second half. That is also a solid basis for the year to come '26 and beyond.

Thank you, Sophie. There is a follow-up question regarding this saving and cost plans. Would you please give us some numbers?

Yes. Thanks for the question. And like we just mentioned, some discussions are still ongoing, as already mentioned. And it's still too early to provide numbers and figures on these programs. Nevertheless, we will do it on due time, especially to explain what are the numbers behind the cost reduction measures that are already embarked and the full effect will be visible in 2026.

Yes. And if I just give you a little bit more flavor on the Specialty Care. So this is definitely the most of the plan. It is about reducing the supervision rate. So the number of FTE for 100 patients according to the new tariff and financing framework. So we came basically from above 84, 85 FTE average to something that is now 99, 78, and this is actually where we want to be. And so we are progressively adjusting the supervision rate. So this ratio of FTE versus the patient. So it gives you the magnitude.

We are actually saving something that represents 6% to 10% of the average FTE that we need to provide the care quality. So it comes with a lot of reshuffling of various tasks with some digitalization, of course, and also a new structure for the planning, for the time planning of the caregivers. Of course, this with a very high level of expectation in terms of quality and specialization of the care. So that's basically for the operating transformation.

And on the central cost, it comes very much with the digital transformation on several transactional services, accounting, billing. And this will -- this comes, for example, in Germany with 170 FTE less on the overhead. This is what has been just signed and agreed some days ago in Germany.

Thank you, Gregory. Thank you, Sophie. The next question is still regarding H2 2025. You expect around 12% EBITDA margin, quite flat year-on-year. For which country do you expect EBITDA margin to be better or lower?

Yes, so 12% is not flat. It's higher than H2 2024 on a pro forma basis. That's the first point. And then when you look by country, higher margin and leading the way is more on the Germany that is improving the margin compared to last year in 2024.

Thank you, Gregory. The next question regarding guidance in 2026. Can you please remind us the basis of your objective of plus 100 to 150 basis points EBITDA margin pre-IFRS 16 in 2026? And what is the basis of reference? And what are the drivers of such progress?

So thanks for the question. Again, so the improvement is on the timing between 2023 and 2026. As part of the full year 2025 result publication early next year, we will provide the pro forma basis, sorry. That means including the full asset disposal effect. Just as a reminder, in the second half of the year, we have still approximately EUR 150 million to EUR 200 million disposal already secured but still under finalization. And this disposal will have obviously an effect on the pro forma. And this, we will be able to provide it, like I was mentioning during the 2025 full year result publication.

Thank you, Grégory. The next question is regarding the change in the outlook, but there is no change in the expected leverage. Would you please explain why this change of outlook in the EBITDA has no consequences on the leverage level?

What we say, so we confirm the leverage ratio of 5.5x by the end of '25 and below 5x by the end of '26. And this element on the leverage ratio is coming from this EBITDA but as well the plan to reinforce the capital structure that provide us well confidence on the other side on the leverage ratio, meaning on the debt to confirm this guidance on the leverage.

Thank you, Grégory. The next question regarding the French Specialty Care. You've mentioned the improvement that you were expecting regarding the case mix. Could you please elaborate on what did happen in Q3?

Yes. The actions we have undertaken on the enhanced case mix are definitely starting to bring -- to bear fruit. When we started the year, we were with an average case mix, today price around EUR 106, then we actually reached a first plateau at EUR 117, so per invoiced day and per patient. And we are currently navigating at a small EUR 120 for -- as an average level. So it all shows that the way we account for the care and service we provide and also the quality and integrity of what we are doing is more and more reflected in the billing. So this gives us a lot of confidence that we are now having a good level of control and understanding of this new funding and that we can also support our clinics and facilities to go for the right specialization, the right level of mix in terms of care and specialization.

And so this will be reflected also beyond '25, '26 and in the years to come. This will, of course, as I said, be one of the drivers of further margin improvement. So it's about not only increased volume, volume are increasing, especially in the outpatient but it is definitely about an enhanced mix of activity that is supported with the right understanding of the regulation framework.

Thank you, Sophie. Next question will be regarding your CapEx expectation for 2025 and 2026.

Yes. Maybe on the CapEx expectation on 2025 and 2026. As you know, we guide around EUR 300 million CapEx in both this year, the split between maintenance CapEx and CapEx to develop of around EUR 200 million. So we expect to remain in this area this year and as well next year.

Thank you, Grégory. Regarding next question is, do you have any disposal -- additional disposal plan after the success of the one that has been achieved in July?

There is no major disposal to come. We have, of course, a regular review of our portfolio, and we are looking at really all the noncore -- the remaining noncore facilities. So that's some additional very small size disposal could come on the back of the completion of the real estate assets that are, as Grégory recalled, still to be exited. But for the rest, I think we have now a pretty stable platform in terms of geographies and segment with actually 2 main universe, the elderly care one and the specialty care one. And the 2 universe are actually traveling with underlying increasing demand and a good development in terms of mix and additional pricing.

Thank you, Sophie. I think we have a few questions online. So please, operator, can we take those questions?

The next question comes from Constantine Gumanida from [ Curex Capital. ]

Congrats on a good set of results. So I guess I have a few questions maybe on revenues first. So Specialty Care, I think we can see it's inflecting meaningfully in the second H sort of along the lines of what you said on the last call. I just wanted to confirm, is this inflection in line with your expectations? Or is there potentially more to go? And in the same category, I recall on the last call, you mentioned there is some potential legal action that you're pursuing to recover some of these lost revenues. Could you perhaps comment a little bit on the status of that, please?

Yes, on the first part of the question, the case mix is evolving in line with our expectations. So it's very much what we expected to see on the case mix side. On the lost revenue, there is no major news to share today. We are still in intensive discussions with various counterparts. And as you can imagine, with all what happened in France in the recent weeks, these discussions are intensive but a little bit slow in the lending. But I mean we still have strong cases. So we will get, I hope, what we are asking for. It just takes some time.

Okay. Understood. And then in Germany, I think on the last call, you said that there is a lag between sort of cost inflation, which was front-loaded and then revenue growth or pass-through, which was more back-ended. So are we already seeing some of that inflection in pricing in Germany in Q3? Or is this more of a Q4 element? Can you comment a little bit on that, please?

You are seeing actually 1/3 of the effect. The most of the effect on the repricing are still to come. We have more than 100 negotiations still open on the repricing with pretty good visibility on the lending, and this will be fully then reflected in '26, of course.

Okay. And can I on sort of the guidance, just to make sure that we're looking at the right numbers. So I think you said on the last call that the starting pro forma number for 2024 is EUR 5017 million in terms of revenues. So I think the guidance that you have for this year, the 5% this year and 5% next year, is it applied to that number? Or is it applied to a different number? So that's on revenues. And then equally, the EBITDA guidance of, I guess, plus 100 to 150 basis points on top of the 12% and change in 2023. Is it applied to the first number that I just mentioned?

I think on the number and the guidance, Constantin, what is close to the guidance is what we have mentioned in the H1 results where we see on the 2025, we were mentioning pro forma of EUR 5 billion approx EUR 5.7 billion of revenue total '24. Obviously, on this '24, and this is what was mentioning at that part, we still have some adjustment due to the disposal ongoing to make it more accurate.

But again, when we mentioned it, the EUR 5 billion something and the EUR 555 million for '24 on the pro forma is a good basis. It will evolve, and this is what I was trying to mention earlier on. We will provide during the full year 2025 publication more accurate number based on the finalization of the...

[Operator Instructions] The next question comes from Robert Watkins from Chepstow Lane Capital.

A couple for me. Just the first one on the organic adjustments you make on the revenue side. Part of that adjustment reflects expected changes in the French health care regulation. So can you give a bit of color in terms of how you actually make those calculations and determinations that feed into that organic revenue growth number?

No. What we mentioned on the organic adjustment was more adjustment that has been already done in the first semester after on the tariff reforms. It doesn't imply any change in the future was not to rebate and to be able to compare apple-to-apple in '25 versus last year but has no impact on the regulation on the pricing, let's say, moving forward.

So to be more specific than that is what the Specialty Care kind of case management. I don't quite follow what exactly the anticipated adjustments or adjustments that have already taken place that you're then feeding into this number.

It was impacting, and this is what we've mentioned in June during the con call. It was an adjustment made in June based on the finalization of what was the tariff we received for the year before. And eventually, we didn't receive the full amount. So we correct it, and this is what we call organic so that we are able to have a comparable basis. And again, we have a pro forma. So this is not something that has an impact going forward. It's more to compare existing, and we have adjusted by the end of June numbers in 2025.

Okay. Got it. And second question on occupancy in the French LTC segment. A data point you gave at the last set of numbers indicated, I think, 90% plus, maybe 91% occupancy recovering from a kind of bad flu epidemic in Q1. That number seems to have stepped back a bit in the intervening months. Can you give a bit more explanation in terms of what you're seeing on the occupancy side?

Yes. Actually, on the occupancy side, no, we have been -- we have seen continuous growth over July, August and September, which is actually a pretty good recovery from the low coming from the flu epidemic. So that's actually -- so for us, France is delivering according to the expectation over the third quarter.

But specifically in the French LTC segment, I think you gave a higher data point than what was the Q3 average. So it must have been stepped backwards in the intervening months. Is that not correct?

You mean what I mentioned in my introduction. In my introduction, this was the average Q3 for all geographies. So not only France but covering also Italy and Belgium and Germany and so all the LTC segment across the 6 geographies. I mentioned 91.6% over the third quarter, which is actually the average occupancy for the Q3 across the 6 geographies.

Yes. Okay. I mean my question was just about France and its long-term care segment occupancy, which seems to have stepped backwards from that July data point you gave, but maybe I need to go back and check that. And then last question, just...

Maybe just to confirm, it was on the press release. On the year-to-date, the France occupancy is 88.1%. And on the third quarter, it's 89.5%. So you see the third quarter in France is higher the year-to-date. It means that we have this recovery quarter 3 on the France LTC market.

That too, [ Ben, ] I understand what you are alluding to. It is true that the highest point reached over summer was above 90% with a lot of short-term stays happening over summer season. So we see those kind of cycles on, I would say, on a normal basis in France, and we will see the seasonal stays restarting to increase as the Christmas and winter holiday season will come nearer.

Okay. And then just final question in terms of what from your perspective, you are seeing on the political side in terms of a likelihood of a budget being passed this year? Or does it seem like it's going to be slipping into next year? Kind of how are you guys seeing the setup for the budget passing and what that means for your business?

It's a good question. I'm not so sure I can provide you with 100% certainty on this. What I can just say currently, what is under discussion at the parliament hasn't -- does not provide any major change for long-term care or for specialty care. So that's for the discussion for the new budget. an alternative if they are not able to find an agreement on this basis would be to come back to the '25 budget provisions. So we are -- and this is also the reason why we are working on cost reduction plan and will be streamlining our organization. We are equipped to navigate whatever, I would say, the budget discussion will lead to. And I don't expect this to jeopardize our overall regulation universe.

Just be aware that we are operating in similar conditions with the public hospital, public nursing homes. So there is a kind of good referencing of the segment because we are providing essential services and the public structure or non-for-profit structure are also exposed -- would be also exposed to significant cuts in the funding or significant increase in the staff cost framework. So that's basically what I can say. It is actually -- we know how to navigate with what is currently under discussion.

Thank you, Grégory, Sophie. We have one last question, which is, do you have any update on upcoming maturities, i.e., the OCEANE or the ODIRNANE and the terms?

Yes, I will take that one. So on the -- maybe on the maturities and on the debt, what is important to have in mind that like I was mentioning earlier on, we issue a bond and rated bond this summer of EUR 500 million. This EUR 500 million bond maturing 2030. Coming back to your question, OCEANE, as a reminder, our maturity is Q1 '27. So this bond has a maturity -- longer maturity than the OCEANEs. By the way, I remind it you know it but when we issue the bond, we fully undrawn and released the revolving credit line facility at the end of this announce its fully undrawn.

And on the second part on the ODIRNANE, we are working on all the topics. And obviously, this instrument like ODIRNANE. We don't make any comments as on the previous quarter on the ODIRNANE. What we have in mind as well, and it's important to remind it is that the SFA and the documentation we have with the banking pool prevent repaying hybrid instruments such as ODIRNANE with cash or debt if the WC ratio is above 5x. I think it's important that we have this in mind.

Thank you, Gregory. Sophie, if you have some final remarks to make.

Yes. Thank you very much, Stephane. So I would like to actually highlight 3 takeaways. First of all, the underlying momentum of our activity is a good one, be it on the long-term care segment or the specialty care, which gave us some headache in the previous quarters with the total reshuffling of the regulation framework. So that's for the revenue side.

When it comes to the earnings and margin evolution, we are taking a little bit more time to do the cost adjustment. We plan to -- in order to secure a soft landing from a social dialogue and with our workers' representative in Germany and mainly in France, we don't want to take any risk in the current environment in France by actually going too hard and too fast on this cost basis adjustment. But we are very clear about the lending on this streamlined cost basis, be it on the central shared services or on the operational structure. This gives us pretty clear visibility on the second half performance in terms of EBITDA and enable us also to have also a good visibility on what we are going to deliver in '26 in terms of earnings and margin. So that's what I would like to highlight.

And last but not least, of course, we have done an intensive work on the financial structure of the company to strengthen it and to contribute to the deleveraging of the company, and we are confirming our target in terms of holdco leverage for '25 and also directionally for '26 according to what we said previously. Thank you very much for your attention and happy, of course, to answer follow-up questions, if any. Thank you very much.

Hello, and welcome to Clariane Half Year Results 2025. My name is Laura, and I will be your coordinator for today's event. Please note that this call is being recorded. [Operator Instructions].

Today, we have Sophie Boissard, CEO; and Grégory Lovichi, CFO as our presenters. I will now hand you over to your host, Sophie Boissard, to begin today's conference. Thank you.

Thank you, Laura. Ladies and gentlemen, dear investors and financial partners, good afternoon, and welcome to the Clariane Group '25 Half Year Results Presentation. I'm Sophie Boissard, Chief Executive Officer of the Clariane Group, along with Gregory Lovichi, the Group's Chief Financial Officer. During today's call, we will present Clariane results for the first half of '25, comment the most recent development in terms of refinancing, outlining bonds, a high level of liquidity and expanded corporate debt maturities. We will also return to '25 guidance, plus 6% to plus 9% growth in EBITDA, which is confirmed.

Let me begin with the key highlights of the first half of 2025. As you see on the slide, we have now successfully completed our plan to strengthen the financial structure of the company and we did so 6 months ahead of schedule. This was achieved in challenging market conditions and represents a major turning point for the group as we look back on the situation in November 2023. The full EUR 1 billion asset disposal program was completed. Our pragmatic approach adopted enabled us to attain strong valuation multiples.

Our refinancing operation were completed successfully as evident by the recent EUR 400 million 5-year bond issue closed 1 month ago in June. Our liquidity was significantly reinforced, enabling the full repayment of the EUR 491 million drawdown of the RCF today.

The second highlight of the first half is actually the solid organic revenue growth development across all business lines and geographies and a stable EBITDAR, while EBITDA pre-IFRS 16 decreased slightly, minus 4.1% on a pro forma basis due to the temporary impact of the new tariff framework in Specialty Care in France. This is a well-known issue across the sector related to the delays and mistakes that have marked the entry into force of the new regulation especially for newly opened facility, which represents for Clariane in France, around 20% of the operated network. We have been taking corrective measures based on an active and database case mix management that will start to pay off in the second half of 2025.

On the long run, we are very confident that this new regulation will be beneficial to our Specialty Care activity in France. On this basis and looking ahead, we confirm our 2025 guidance. The second half of the year will benefit from several drivers in terms of margin. First, in elderly care, continued growth in volume, combined with the full year impact of tariff increase in Germany, which will mainly take place in the second half for 70% of the facility. Second, in Specialty Care, the benefits of the active case mix management that we have put in place and further development in volume in outpatient activity.

We will also benefit from our continued focus on productivity and staff efficiency in all segments. And we will also reap the benefit of additional cost-saving measures following the completion of our disposal plan on the overhead. Last but not least, we expect also to see the benefit of continued discipline and selectivity with respect to development CapEx.

Let me now walk you through the key financial indicators of this first half. Our revenue reached around EUR 2.7 billion, up 4.8% organically with solid contribution from all region and activity. This confirms the resilience of our business model, diversified and well balanced. EBITDAR came in at EUR 546 million, up 0.8% pro forma, excluding the contribution from real estate development. EBITDA pre-IFRS 16 and excluding real estate development again stood at EUR 263 million, down 4.1% year-on-year. This is actually a resilient performance considering the temporary impact of the tariff reform in France I already alluded to.

Our net result group share pre-IFRS 16 was a loss of EUR 47 million to be compared with a loss of EUR 28 million in the same period last year. This is mainly due to the cost and noncash accounting items associated with the group portfolio streamlining and disposal program. It should be noted that no capital gain related to the '25 disposals has been booked yet. This will be done in H2 and should represent over EUR 200 million of capital gain net.

When it comes to balance sheet and cash, we maintain our deleveraging trajectory. Net financial debt pre-IFRS 16 and IAS 17 decreased by EUR 212 million to EUR 3.6 billion at the end of June. At the closing was not completed -- as the closing was not completed at 30th of June, this is excluding the net proceeds of Petits-fils disposal taking this into account since we have closed the transaction yesterday, Wholeco leverage should have improved to 5.6x on a pro forma basis.

Finally, our real estate portfolio value is stable at EUR 2.6 billion with an LTV of 57% down to -- down from 63% 1 year ago, further evidence of continued financial discipline.

Let's now come on Slide 7 to our extra financial performance. I would like to briefly highlight some key milestones achieved on the first half. On the human resources front, we were once again certified Top Employer Europe '25. We are actually the only care company to receive this recognition. We have also signed a major European agreement on Occupational Health and Safety, together with our employee representatives from the European Works Council and EPSU, and also National Trade Union. This agreement represents a key milestone on our road map towards '26 with a very clear and shared focus from all parties on reducing workplace accident frequency and reducing absenteeism. It include a full set of commitments and KPI tracked over 4 years.

Finally, on the HR front. At the 30th of June, we had 5,843 employees enrolled on a qualifying path, confirming the relevance of bringing together all training programs under the umbrella of our Clariane University. This gives us confidence in achieving the full year target of above 7,000 Clariane employees engaged in such a training program, which is actually a key enabler for talent development, career development and also meeting the care staff scarcity over the various markets.

On the environmental side, we took a key step forward by signing our first green energy forward purchase agreement with IGNIS. This contract will come into force in August '26, supports our target to cut emissions from energy use and refrigerants by 46% by 2031, in line with our SBTi trajectory.

And finally, we published for the first time our medical innovation and research policy. This policy is deeply rooted in our commitment to consideration for patient with the rollout of our positive care approach and deeply rooted in international quality standards, such as ISO 9001 for all our activities. It also reflects our ambition and commitment for innovation, medical innovation, supporting the integration of scientific advance into care practices and our contribution of broader medical research in geriatrics. These ESG milestones are fully aligned with our mission and long-term value creation strategy.

Let's now have a look back to our plan to strengthen our financial structure. This slide here summarize what we have delivered as part of this plan, which is now completed 6 months ahead of schedule. The plan that we launched at the end of '23 was designed to accelerate deleveraging with dual flexibility and secure Clariane access to long-term financing. And all the 4 pillars are now secured. First, we closed 2 real estate equity partnership in December '23, generating EUR 230 million; second, we secured EUR 200 million in real estate debt, also in December '23; Third, in July 24, 1 year ago, we successfully completed EUR 329 million share capital increase, including preferential rights offering. And finally, in June '25, we reached our EUR 1 billion disposal target, which includes the sale of our home care network Petits-fils.

Altogether, these 4 pillars have proven instrumental in supporting the deleveraging of the group as well as normalizing access to financing. This foundation now allows us to look ahead with clarity and renewed confidence.

Let's have a focus on Petits-fils disposal. The transaction was finalized on July 30 and is based on today -- yesterday, sorry, actually, and is based on the EUR 345 million in enterprise value. Petits-fils contributed EUR 56 million to our '24 revenue and employed around 370 people across it's network of nearly 300 agencies throughout front. We acquired Petits-fils originally in 2018, and it has grown substantially under our ownership, expanding from 58 to 292 agencies and becoming in France a reference in personalized in home care for elderly people.

This is definitely not the end of the story as Clariane and Petits-fils will enter into a country-wide service partnership to enable across and suitable care plans for patients and the caregivers from Petits-fils to Clariane nursing home workings and from Clariane clinics and nursing homes to Petits-fils agencies.

The final transaction and the condition of the transaction confirms the strength of our strategy, the quality of our portfolio, our ability to execute -- to generate value and to execute the discipline and value focus. It also allows us now to shift fully to delivering the next phase of our operational performance improvement.

I would like to take a few seconds to look back on how we executed the disposal program, which was a challenging one given the overall market condition. First of all, some figures in total. Around 60% of our EUR 1 billion disposal plan was delivered through the sale of operating companies, 54% of the proceeds came from French assets, both operations and real estate. And more important ever is the outcome was the way we conducted the process. Actually, the key success were that we maintain full control over timing and terms at no point where we perceived as for a seller. We systematically build incredible alternative to giving us leverage at every stage.

We also demonstrated strict strategy discipline, including walking away from deals that didn't meet our criteria as was the case for Belgium and the Netherlands that had been considered for a disposal option. And we created structured competition even in a situation involving natural buyers to secure the best possible value for the company and the shareholders. These principles reassured investors and creditors, they confirm the clarity of our strategy, which is focused on 6 core countries, financially disciplined and concentrated on core non-acute care activity. We were able to achieve high valuation around 14x EBITDA, which clearly illustrates the attractiveness of high-quality, well-managed assets in our sector.

On the next slide, you see now the profile of Clariane after completion of our disposal plan. We present a refocused balance and more reliable profile. As you see, our activity is now concentrated in 6 countries and structured around 3 segments, long-term care, specialty care, community care, so all non-acute care. And this new profile gives us both scale, clarity and optionality in order to manage both the regulation and development opportunities in all those geographies.

In the data below on this slide, you see here reflected our pro forma disposal figures, post disposal, which I hope will ensure greater comparability and visibility for all investors going forward. You see on the central, on the green part, the key metric for valuation purpose, both in terms of pro forma revenue '24 estimated EUR 4.1 billion revenue and pro forma '24 EBITDA estimated which is actually EUR 555 million. And this is the basis for the guidance and for our development looking forward.

Let's now have a look at the financial structure post plan, post disposal. As you see here reflected, we have significantly reduced our leverage, Wholeco leverage over the past 18 months. As of June '25, our Wholeco leverage, which is now the key indicator on which we are guiding stands at 5.6x on pro forma basis, down from 6.2x at the end of '23. This reflects the combined positive impact of operating cash flow generation and the full execution of our disposal program under the condition set out previously.

As a reminder, this level is calculated using the new Wholeco definition used in our amended financing agreement, including both corporate and real estate debt. The steady deleveraging trajectory puts us on track to meet our objectives of a Wholeco leverage ratio below 5.5x by year-end.

Now let's move on to the financing side. The successful execution of our plan has enabled us to normalize our access to long-term financing. This slide, along with the following 2 slides illustrate key refinancing milestone secured by Clariane over the first half of this year '25. First set, in February, we completed the amend and extend of our extended credit facility with a final maturity extended on some condition to May 2029. At the same time, we also secured a new EUR 150 million global real estate credit line with the same maturity in 2029.

As you see on the next slide, we have completed this negotiation with our bank with the return to the debt market under very favorable condition. In June, we successfully placed EUR 400 million unsecured bond, maturing in June 2030, with an annual coupon of 5.875% (sic) [ 7.875% ]. This bond contributed to a further extension of our average debt maturity profile. The offering attracted significant interest from Tier 1 institutional investors, both French and international, the order book exceeded EUR 1.2 billion, implying an oversubscription rate of more than 3x. Its purpose is to rebuild financial headroom and further reinforce Clariane's liquidity profile. This transaction together with the extension of our bank facilities complete a successful refinancing cycle in H1 that position us well for the future.

As a summary of the previous slide and before Gregory will comment on our half results, let me conclude this first section with an overview of the pro forma debt maturity profile, including repayment in full of the RCF drawndown effective today. Cash in of Petits-fils net disposal proceeds effective yesterday. It shows that halfway into '23, '26 midterm plan, Clariane has been successful in addressing short-term debt maturities with no significant maturities to come before '28, as you see here on the chart.

This quick analysis should also take into account the reinforced liquidity situation of the company with close to EUR 1 billion at end July '25, including the RTF, which remains available following the repayment of the drawdown.

I now would like to hand over to Gregory for the analysis and the presentation of our income statement. Gregory, the floor is yours.

Thank you, Sophie. Let me begin with a look at the group's revenue performance in the first half, as Sophie pointed out, we delivered organic growth of plus 4.8%, this 1.3% volume contribution and plus 3.5% price effect with balanced contributions from all segments and geographies. By activity on the left, Long-Term Care, our largest segment, grew plus 5. 4% organically driven by both volume and price effects. Specialty Care saw an organic increase of plus 1.6%, driven only by volume effect while pricing was flat in France for the first semester. Community Care continued to show strong momentum, putting a plus 8.3% organic growth primarily in France.

On a geographic basis to the right, Germany led the way with a plus 8.1% organic growth, followed by Benelux at plus 7.5% and Spain at plus 3.8%. France, despite being impacted by the SMA reform, impacting pricing mechanism for post-acute care, still delivered a plus 2.8% organic growth coming from long-term care. Italy also remained positive at plus 2.5%. This result highlights the resilience of our portfolio as well as the benefits of our geographical and segment diversification.

Now if we break down the evolution from H1 '24 to H1 '25, you can see the key factors behind our revenue growth. From the pro forma base of EUR 2.6 billion, revenue increased to EUR 2.65 billion, supported by several drivers. First, volume contributed plus EUR 34 million or plus 1.3% mainly from occupancy rate increases in long-term care and expansion in community care. The price and care mix effect added EUR 89 million of plus 3.5%, reflecting tariff adjustments in Germany and France in the first effect of a more positive case mix in France has started in the second quarter.

Offsetting these were a negative perimeter effect of EUR 103 million or minus 4% due to completed disposal and tight closure across several geographies. The sale of the Petits-fils was closed end of July and its disposal effects are not included in this table and other effects of EUR 33 million linked mainly to the reform in specialty care in France and the wind down of our related promotion activity margin. Altogether, this illustrates strong underlying dynamics more than compensating for planned perimeter reductions and providing a solid base for H2 growth.

Turning now to occupancy rates. We continue to see a positive trajectory in our long-term care activity despite a more challenging start of the year. The average occupancy rate in H1 2025 reached 90.5%, which is 1 point higher than in H1 2024. This is a clear sign of ongoing recovery and solid demand. In June, average occupancy had risen to 90.7% and preliminary data for July point to further improvements with rates above 91% at end of July. This sustained momentum confirms that we still have growth potential in debt with our existing capacities and provide a strong base for continued performance in the second half.

Now let's look at EBITDAR margin performance by geography. At group level, our EBITDAR margin came in at 20.6%, compared to 21.2% in H1 2024, a decline of 62 basis points when excluding real estate development activity. This variation is attributable to France, where margins fell by over 300 basis points due to first, the impact of the tariff reform in Specialty Care and the ramp-up initially accelerated on the back of numerous openings in 2024 and early '25.

Outside of France, all other geographies were clear and encouraging improvements like Germany, helped by 144 basis points, confirming the recovery in pricing and productivity, yet still more to come in the second semester of 2025. These effects were identified as the key drivers supporting the 2023-2026 guidance. And this show as well the group's ability to recover margin performance as transformation efforts takes full effect.

Turning now to EBITDA. EBITDA for the first half reached EUR 263 million, down from EUR 274 million pro forma in the first semester of '24, a decrease of 4.1%. Starting from the published figures of EUR 290 million in H1 2024, we deduct EUR 11 million related to the disposal plan and EUR 5 million from the hand of real estate development to arrive at a pro forma base of EUR 274 million. From there, several components contributed to the evolution. Volume impact was slightly negative, minus EUR 5 million due to the [indiscernible] ramp-up in France, all other countries posted positive volume effects.

The price effect, which has been EUR 89 million was supported by strong tariff adjustment, notably in Germany and to a lesser extent in Benelux, Italy, and France that will positively improve their price cost to ratio over the year and especially in the second semester. This was temporary offset by cost inflation of EUR 100 million mainly in France and Germany. Two main effects to be highlighted. First, the front-loaded salary adjustment in Germany that will be more than covered by ongoing tariff increase in the second semester and the progressive adjustments of the organization in Specialty Care activities in France in the back of the [ SMR form ].

Other effects, including M&A activity in Spain and site closure across several countries contributed plus EUR 5 million. Overall, the EBITDA margin pre-IFRS 16 and excluding real estate development, stood at 9.9% compared to 10.7% in the first half of '24.

Let's now look at the cash flow statement for the first half. Operating cash flow reached EUR 133 million compared to the EUR 169 million in H1 2024. This decrease is primarily reflect the lower EBITDA and the saving of financial charges impacted, which totaled EUR 110 million over the period. It is worth noting that adjusted for payment delays due to the late publication of the 2025 [indiscernible] tariff in France, operating cash flow would have remained stable year-on-year. As a result, free operating cash flow stood at EUR 23 million. Development CapEx was reduced to EUR 48 million and financial investments amounted to EUR 23 million, bringing total investment cash outflow to EUR 71 million with significant reduction versus last year, showing the strong discipline in CapEx allocation.

Coupon payment amounted to EUR 35 million. Net free cash flow after these items was negative EUR 48 million. Consequently, net debt increased by EUR 101 million, including the IAS 17. When we exclude IAS 17, the increase was EUR 114 million. Also, the full impact of the disposal plan, particularly the [ Petits-fils ] transaction will only be reflected in the second half of the year.

Turning now to our real estate portfolio, excluding perimeter effects, the gross asset value is almost stable. As of June 30, the gross asset value of our real estate stood at EUR 2.6 billion, down EUR 64 million compared to a year earlier. But since this evolution is primarily due to the EUR 72 million perimeter impact, mainly from disposals in France, a market parameter has a very muted impact. Positive indexation effect of EUR 55 million on one side was affected by a cap rate increase effect negative of EUR 76 million. Cap rates stood at 6.4% at the end of June and changed from December further evidencing market stabilization. We also continue to invest in maintenance and upgrades with EUR 30 million in CapEx over the period.

In summary, at constant perimeter, the portfolio remains stable and continues to support our financial focus.

I will now hand it back to Sophie to conclude on our refocused operational strategy and outlook for the current fiscal year and the 2023-2026 period.

Thank you very much, Gregory. Let's now may take a step back and place our transformation road map in the broader context of the European care service market. You know, I think as well as I do the fundamentals but they remain striking. If you just look at the figures by 2040, the population aged 75 and over is expected to grow by more than 40% with the first step in 2030. At the same time, more than 80% of people over 60 already live with at least one non-communicable disease. That means that they need a certain volume of non-acute care to support them at home.

These demographic and epidemiological trends will continue to feel growing demand for care and definitely need for further social and care infrastructure. In this context, private investment will remain essential to meeting future needs, and Clariane is uniquely positioned to help address its challenge, thanks to its diversified and balanced platform, experienced teams and focused mission.

In this environment, as you see on Slide #28, Clariane today stands out as a true European leading platform in non-acute care. We operate across 6 major countries with a multi-local footprint that enable us to serve over 800 local communities and reached a catchment area of more than 13 million people aged 75 and over. Our platform covers the full spectrum of non-acute care solutions, long-term care, of course, with medicalized nursing home across all our geographies. Specialty Care, including both mental health and post-acute care facilities supported by strong clinical expertise and growing outpatient capacities. Last but not least, we have also a strong community care of small units, which includes shared housing and in-home support model particularly strong in France and in the Netherlands and gaining traction in our other markets.

This integrated and balanced model gives us the agility to respond to country-specific needs while benefiting from shared standards, expertise and innovation across the group. It also position us at the heart of the care ecosystem in each country as trusted partners to family, professionals, regulatory health authorities as well as government.

And we move into the second half of the year, our priority is clearly to continue improving our operating performance and margin. And for that, we actually rely on 3 main levers. The first one is very, obviously, volume improvement. We are continuing to optimize our existing capacity, particularly in the nursing homes elderly care segment, where a 2-point increase in occupancy rates can activate approximately 1,000 additional debt, especially in the largest network, Germany and France.

We are also accelerating the development of outpatient activity in all our specialty care clinics, which meets both patient expectation and system needs and which are very contributive to our margin.

The second level to support operational performance is clearly pricing and case mix management. We are actively managing the repricing on the elder care segment ensuring that negotiated tariff with the local regulation authorities better reflect the complexity and the medical intensity of the elderly care we deliver and this is particularly true in Germany. But we are also deploying a very sophisticated and comprehensive database system in order to fully manage the case mix in our Specialty Care facility, and this will definitely drive both volume -- both revenue and margin growth looking forward.

And of course, on the pricing, we can also improve what we already do on the private pay side of our offering, be it an elderly care or in specialty care. And finally, of course, operational performance will also benefit from all the program that are in place to support cost efficiency. This includes an ongoing and covenant work on HR performance, with a priority focus on strengthening the staff planning, reducing absenteeism. This is why the agreement I alluded to 10 minutes ago that we were able to sign last month with all our unions at European level, the first of this kind in the sector in Europe is a clear demonstration that we are all committed to improve and to further develop in that segment.

We are clearly also betting on further negotiation and strengthening of our supplier base, taking advantage of our large scale and broader process optimization, especially the transactional and back-office practices or centrally and at facility level to digital tools and artificial intelligence. We have been actually actively working on this for the last 18 months, and we see the first benefit of it, and there is more to come in the forthcoming 2 years.

Together, all these 3 levels or family of levels will support the rebound in margin expected in the second half of '25 and into '26.

I would also like to give some granularity on the cash generation, which is obviously the -- the next key challenge for the company looking forward. We are taking a lot of very precise actions to support sustainable cash generation going forward. First level here is also continued organic revenue growth and revenue integrity. And as we see, we have a lot of visibility on that sector. Second, we, of course, expect that the margin improvement supported by the pricing and volume increase and also the various savings I just mentioned will be, of course, transformed into cash generation for the company. And we are on the top of this pursuing a disciplined investment strategy with clear focus on reducing and normalizing both gross CapEx and noncash items impacting our free cash flow on the back of the restructuring and disposal plan.

Fourth, we will beginning to benefit from lower financial costs, thanks to the steady reduction of gross debts and the management of the maturity we have done.

Finally, our refinancing capability has been demonstrated with both bank and bond transaction executed successfully comparable terms and well received by the market. These pillars position us well to continue delivering on both our operational and financial objectives.

Let's now come to the Slide 31 as a wrap-up. So Clariane is definitely now well positioned to benefit from, a, the structural growth of the European care market and to do so in a rate that is both sustainable and profitable. We have, as a platform, 3 core strengths. We have the scale and the leader position as pan-European operator fully focused on non-acute care. Second, we benefit from a balanced business and country profile and portfolio with no overdependency on any single geography or segment, and this is very important in such regulated activities.

This makes our model -- business model more resilient and adaptable to local dynamics and also to local regulation challenges that can happen. Third, we operate with a best-in-class model, a very strong and clearly defined target operating model in the 3 segments, and our performance is underpinned by a robust quality standards, recognized and shared HR practice, active and innovative social dialogue and a growing use of digital tools to support both care delivery and efficiency. These are the main foundation on which we will continue to build on the second half of the year and, of course, beyond.

Let's now come to the second half outlook. As we look to the second half, we do so with clarity, focus and confidence. Our main strategic objective for the Europe to finalize the financial structure strengthening plan has now be achieved and is 6 months ahead of schedule. After a transpositional first half, we expect our performance in the second half to benefit from several tailwind I already mentioned. First, continuous volume increase across all geographies, particularly in France, where the recovery in occupancy has been visible since Q2 and more to come here in the summer. Second, the full year impact of the price increased, especially in Germany, where additional price adjustment are still expected on 70% of the network there.

Third, we will see the benefit of our database case mix management efforts on the Specialty Care in France with already a very strong increase in the average daily rate that we can achieve through the case mix management. Fourth, we will continue to benefit from improved productivity in line with our quality commitment. And on top, we have launched targeted saving plans on overhead following the group's refocusing for disposal that will contribute to margin improvement in H2 and mainly in '26. And of course, we remain firmly committed to disciplined -- further disciplined CapEx management with strict allocation to high return projects. These values levels will support a strong second half and enabled us to confirm our trajectory for the full year.

So I would like now to turn to our outlook for '25 and for the midterm '23-'26. Our outlook for both '25 and midterm is unchanged. In '25, we expect, as we said, organic sales growth of around 5%, underpinned by strong momentum in price and volume, particularly in France and Germany and by ramp-up contribution in the Netherlands and in Spain. This growth momentum, combined with tight control of our operating costs, in the context of lower inflation on supply chain will underpin growth in pre-IFRS 16 EBITDA of between 6% and 9% enhance an increase in our margins.

In terms of our financial structure, we are aiming to reduce our Wholeco average to below 5.5x, thanks to the improvement in financial performance and to the effect of the remaining price of our disposal plan, which is still to be cashed in, in the second half besides Petits-fils. This financial objective are, of course, accompanied by extra financial objectives, maintaining the Net Promoter Score above of plus 40, maintaining a number of employees enrolled in qualifying at over 7,000 and pursuing the reduction in the frequency of work-related accidents and in our carbon footprint according to our SBTi trajectory.

In terms of our midterm objective for the period '23-'26 as a whole, we are confirming our target of an average annual growth rate in revenue of around 5%. We are also confirming the improvement expected in margin with a target increase of 100 to 150 basis points by '26 pro forma of disposal and '23-'26 scope effect. And we expect our Wholeco leverage to be below 5x at the end of '26, consolidating the group's financial structure and the recovery in operating performance. This achievement of our refinancing plans, the strong business momentum and the strong fundamentals of our business portfolio means that we can look forward to the coming years with the great deal of focus and renewed confidence. And more than ever, we remain focused on our purpose, taking care of each person's humanity in times of vulnerability.

Thank you very much for your attention. Gregory and I are now ready to move on to your questions.

[Operator Instructions] We will now take our first question from Laurent Gelebart of BNP Paribas Exane.

I have 4 questions today. So the first one relates to the EUR 30 million cost-saving plan you have been initiated. Could you let us know what will be the benefit in terms of savings you expect from this EUR 30 million one-off costs you have as a provision in your P&L in H1?

So second question is that when I look at your net debt at the end of H1, you are at EUR 3.5 billion, and you want to be below EUR 3 billion by the end of 2026. The disposal plan is being completed. So can you give us the building blocks in terms of cash in from disposal not yet being cashed in and other stuff that could explain from the move from EUR 3.5 billion to EUR 3 billion by 2026?

The third question relates to your guidance, which implies 6% to 9% EBITDA growth this year. If we look at this number on H2, it implies plus 18% to plus 24% growth versus H2 last year. So could you confirm that it is correct? And could you explain again what are the main drivers to improve the profitability?

And last question, basically on Specialty Care in France. If I'm not wrong, this issue was already live last year in H2. So why, I mean, it has been continuing in H1 of this year? And what have you been implementing basically to be able to improve again the margin on this activity going forward?

Thank you very much, Laurent, for the 4 questions. I will address the Specialty Care and I leave, first of all, the first question to Gregory, EUR 30 million restructuring costs and the net debt...

Yes, if I get the question, this is what we have on the noncurrent items. So the noncurrent items that you pointed out correctly, Laurent, amounted to EUR 55 million on the first half of the year. When you look at it, part of it, 50% of it is noncash. When you look on the noncurrent, you have part of it impairment and the other are more restructuring and reorganization. It's more cost to implement the disposal plan. And obviously, part of it will be -- when we see on the H2 and will come to improve the profitability on H2.

On the second point on the net debt, and how to drive the net debt down. The first element, you need to have in mind is that we didn't make all the closing yet. So still, we'll have some closing in H2. And you saw it as well with the pro forma, we did with Petits-fils yesterday and with a significant impact on the net debt. Other closing will come on the second part of the year. Then when you say this, we have as well some cash generation impact in H2 and as well in 2026 that are the remaining effect to continue to reduce the net debt going forward. And as we mentioned in the presentation, all the action plan we have especially on the increasing EBITDA, working capital management, strict discipline on CapEx, reducing the gross debt with the positive impact on the indirect effect is. Obviously, all of these elements come to the reduction of, let's say, of cash flow generation. I think this is two main effects that we need to have in mind when in -- to bridge the gap with the reduction of net debt we have. And so that was of the 2 first questions.

On the margin guidance...

Maybe you take the Specialty Care and then we turn on the margin guidance.

Yes. Perfect. So for the Specialty Care, you're right, the new base framework has been in 2024, but with a lot of uncertainty delay and also mistakes because the tariff framework did not take into consideration the newly opened or reopened facility. And this is representing in our case, because they take just to explain how it works. So until '24, the financing of post-acute care in France was based on a fixed daily rate that was actually [ per diem ]. They decided facility by facility and inflated every year by the average indexation decided by the government. That was basically a very simple and common approach.

The new tariff scheme is much more sophisticated. It's actually a country-wide tariff scheme for 90 different type of care path depending from the pathology, depending from the profile of the patient. And this 90 type of rate -- 90 type of pathology are to be combined with the intensity of rehabilitation, the severity and the intensity of care required so the severity of dependency and the social situation. So there are 3 parameters plus the length -- the recommended duration of the stay. So it's very sophisticated, so 90 different therapy combined with these 4 criteria that are, of course, unique to each patient.

And so the -- the new right framework has been actually published in '24. There has been some correction done where expected at late '24 and they have been only published in April '25. So this is explaining why we had some uncertainty between '24 and '25 with some actually commitment of the authorities that were not reflected in the tariff issue for '25.

And last but not least, and this is very specific to Clariane. When they -- when they convert it from the day price to this tariff framework, they did not take into consideration for the part that is still fixed. So half of the funding is fixed, so per facility, they did not take into consideration the newly opened clinics between '22 and '24. And for Clariane, since we have actually executed a very wide repositioning an investment plan, as you know, Laurent, started 2017, actually, 20% of our operated network was not -- was actually extended or even newly opened between '22 and '24 and part of what the amount we were entitled to get was not taken in the tariff framework.

So I don't -- I want to make a choice. But actually, this led us to a lot of discussion, which is of the regional agency to progressively correct the amount we are entitled to get first, and we haven't been getting the full amount. We are still missing some million as a basis for this new tariff framework. That was the first thing we had to do. And this explains a lot of the negative deviation from H1 '24 to H1 '25, first of all.

The second part is actually that as a mitigation, we put in place a very, very sophisticated data-based case mix management solution. We actually have deployed in-house with sophisticated tool Palantir Foundry software platform to be able case-by-case, clinic by clinic, patient by patient to model in real time the case mix, the adjusted case mix for the situation. And this has actually helped a lot our clinic, we came from an average day rate in [ Jan ], it was around EUR 105 per day for the viable part. We came up to latest -- so July, we are now around EUR 120 per day average. So it seems that we've been able with the same environment, without further funding to significantly improve the case mix management.

This is, of course, not reflected -- fully reflected only very partially reflected in the first half, this pricing effect because it's really this active case mix management. And we expect, of course, to see this fueling the margin recovery in the second half. So it is going -- it is tailing off step by step. This is half of the margin recovery for the second half combined actually with also the adjustments we had to do on select facilities to the staff organization according new funding framework. So there are plus and minus, but there are some minus in terms of the way we allocate time and level of staffing according to this new scheme. This is a huge change to be clear, a huge change for the 75 facilities that I take. I'm looking forward very, very positive and confident, not about to way the enter in force, which was a disaster. The disaster from the uncertainty, the change, the mistake, and the fact that there were always late in really taking into consideration the mistake that we have made.

But looking forward, now we have really a full comprehension on how we need to work with it. It is actually better reflecting the quality and intensity and outcome of care we are providing. So if -- now that we know how it works and that we have trained and groomed our facilities to work with that, I think that it is providing a very strong basis to develop these non-acute care that is absolutely critical in France to tackle the situation of aging chronic patients that are struggling to get the right support from GP or from University Hospital. And so directionally, it was difficult to enter in this new framework. It took more time than we would have wished to, that we will definitely benefit a lot from this new environment.

And as you can hear, I'm much more confident and more positive and precise on it as I was some months ago because we've been actually working a lot to get educated with the support of this database platform. So it brings me to the guidance. So the guidance, yes, the EBITDA amount was down by 4%, 4.1% in first half, and we expect to be up by 6% to 9%, where does it come from? So half of this evolution will come from this pricing mix effect on the Specialty Care on the back of the progression that we have already initiative. And so we are betting that we could at least stabilize above EUR 120 million. That is the point we have already reached, maybe we will do more, but this is where we are. And half of the contribution will come from the repricing to come in Germany.

So now in Germany, it's a [indiscernible] care segment. So what is the situation in Germany -- in '24 -- we had no salary increase in '24, because all the salary increase, the huge one were done in '23. So in '24, we benefit from the kind of stable salary profile plus the full benefit of the price negotiation. In '25, it's a little bit different. We have to implement a 5% salary increase from first of Jan everywhere, so that is what mandatory. So this is reflected in the first half figures. And we are negotiating. So it's also piece by piece for each of the 220 facilities in Germany with local funding bodies. And 70% of the negotiation, so we have already negotiated and got a rate increase for 30% of the network. That 70% is to come over the second half, so not reflected in the first half figures. So basically, in '25, we have front-loaded the wage adjustment and the coverage of further repricing will come in the second half.

Again, to give you some granularity here, we are expecting on this scope, which is EUR 1.2 billion revenue. And just to give you, we have asked for 5% to 8% of rate adjustment and the first sign on it or the first information flow on it are pretty encouraging. So this is actually pretty much covering all what we said about the margin rebound on the second half. And of course, what we have to do along the year is, of course, to maintain a strict discipline on the staffing level according to the business model of the various segments. It requires a very strong discipline on replacement and interim, especially in Germany. It was difficult beginning of the year. It's now a stable at low level, and we need to maintain that over the second half. And it is actually the same type of attention that is required in the various segments. I hope it helps on the guidance. But as you see, it's a very precisely step.

We were absolutely clear when we did the budget that we would be down to buy some basis points in the first half, given this seasonality of rate increase. And actually, that's -- it was probably a little bit more wider effect than expected, may be 20 basis points more, but we are -- because of the specialty care profile -- transformation profile in France. But we are very clear about the road map and the way down to full year '25 when it comes to pricing and cost management.

Maybe some words -- some complementary information on the EUR 30 million restructuring costs. So as Gregory explained, this is very much related to the impairment and the stop we had to do on a development project. But we are preparing also a cost reduction plan on overhead, that will come second half in '26. We have reduced globally the size of the operated network in France by 15% in the last 2 to 3 years. And so it means that we are going to -- and we have also done a lot of work in automatizing and digitizing a lot of transactional processes, billing, accounting and also planning.

So we are going to post some savings that -- which were are going to -- we will communicate in the second half, but there will be some significant contribution from this saving plan, both internally and externally.

And we'll now move on to our next question from [ Constantine of Curex ].

Thank you for the presentation. Can I first go back to the SMR issue and just make sure that I understand the elements correctly. So first on the fixed element that you mentioned that was Clariane specific, where you lost out on 50% of the 20% of facilities, if that's the right sort of way to think about it. So what's the total annual revenue impact from that, that you're sort of missing?

Yes. We were missing on this EUR 10 million to EUR 15 million. EUR 15 million would be really the absolute number that we would need if they would have deployed according to the promise because actually, this was actually promised money under the previous setup, and we are missing those. And so we are recovering to a more active case mix management. So it will be overcomed.

So what you're recovering in the second half, is it just for the second half? Or is there a catch-up element for the 2 years that you didn't get that?

The catch-up will depend from the -- we are actually -- we have some litigation or pre-litigation ongoing. So it's too early to say what the result will be. But yes, we are requiring to be compensated for what we did not get on the previous year. But currently, what we are guiding on is really the run rate and what is going to come from our own internal case mix management, not from external compensation.

Okay. Understand. And just to make sure that I understand the exact nature of these SMR issues and the catch-up. So is the catch-up -- is what you're seeing in the second half? Is that just better pricing for business going forward? Or is there some catch-up for what you missed on in the first half as well?

No, it's going forward. We cannot reprice what we have done for the previous activity, what is built is built and the average duration of stay is 4 to 5 weeks. So I mean, there is a permanent churn. But what we are saying, so there is a permanent churn on the 6,000 bed capacity that we have in that segment, plus the outpatient. So each billing is done. But what we see is that step-by-step, day after day, we are increasing the average rate that we can -- that we are recording because we are better in recognizing and documenting the care intensity. We are better in using the new framework that has been implemented in '24 and before '25.

I guess where I'm struggling a little bit is because you've basically said that in the first half, organic growth was 4.8%. For the full year, you're guiding around 5%, which implies that the second half organic growth is also around 5%, give or take. So sort of in line with the first half. But at the same time, the 2 main catch-up elements that you've mentioned, the SMR issue and then the Germany repricing, all of those are pricing driven. So why is there no more pricing growth? It does suggest that there should be more. It shouldn't be in line with the first half.

I mean, we are not changing our guidance. And we'll see, of course, the more we can deliver the better.

As in the numbers suggest that the catch-up is sort of cost driven as opposed to revenue, but what you're saying is all revenue driven. Do you see where the disconnect lies?

Yes, I understand. No, it's both actually. But pricing is absolutely -- it's balanced between the two. We are confirming the guidance. That's what we are doing. But I mean your point is valid.

And then you have a sequential and for example Germany, yes, we will get more price increase. But then the front loading of the salaries and you have the full effect on a full year basis. So there's some kind of seasonality effect already in back on the, for example, the second quarter and you have full effect on the year. That's why you have as well some seasonality inside the year that help us to regain some margin effect and points.

Got it. Okay. On the -- one second -- and just to make sure that I understand, what's the exact quantum for Germany as a euro million figure that's going to contribute in the second half?

We didn't disclose Germany, but you can say half and half on between France and Germany on the contribution and the recovery for the second half.

Okay, right. Then looking at the -- you mentioned you made a few references to cost savings measures. It seems like you have a mix of both organizations like central functions, but also perhaps costs further down in the organization. Can you elaborate a little bit on that? What's the total quantum of cost savings measure that you have in mind? And how do they split between central and organizational?

What I can say at this stage, and we will be more precise in the second half once also discussed internally with the people involved. But to be clear, in France, it's about -- we have reduced operated network by 15%. So it means that if we take the overhead in France, Central and the group and the France overhead, we should be able to reflect the 15% reduction, both for internal and external costs. So that's the magnitude we are working on. So this is only for overhead. And when it comes to the network, yes, they are networks with less. There are dedicated plan on the back of the digital plan. We are actually automatizing the billing function. We are automatizing also all of the transactional processes and this will bring some hundreds of FTE to be actually repositioned or diminished depending from profile of the employee involved. So that's what we are. So we are not speaking of a kind of dramatic change, but it can be 1 FTE, 2 FTE per facility depending from the way the processes are structured country by country.

Okay. I understand. And just going back, sorry, to my previous question to make sure that I use the right reference point here. But what's the size of the SMR business in France? Is it EUR 600 million? Or do I have the wrong reference point?

[ 100% ].

Sorry, can you repeat.

Yes, you're right. I mean you have the right reference point.

Okay. Great. Then a couple of financial questions on the disposals. So can you just confirm the exact number that you have outstanding for the second half? And then second financial question on CapEx. So in the first half, you had EUR 98 million all in, but you're still guiding EUR 300 million for the full year. So it implies sort of a 100% uplift in the second half. So can you comment a little bit on what that is being spent on?

On the [ second ], I confirm on the disposal, so if put it not only on the second half, but from today because we cashed in some [indiscernible] yesterday, it's EUR 150 million remaining. We say roughly it was half of the plan that needs to be closed on the second half. The plant was EUR 1 billion [indiscernible] guided. And the second, on the CapEx here, we have been very disciplined on CapEx on the first half, especially to be sure that when we allocate on the CapEx, we have the right payback on the development one. We don't review the guidance on the full year on the EUR 100 million on the CapEx maintenance and the EUR 200 million on the development. I think we keep this and we will follow it up on the second semester on that point as well.

Got it. But should we assume then it's going to be EUR 300 million or EUR 200 million?

We don't change the guidance. So the guidance is EUR 100 million maintenance and EUR 200 million on the development.

Got it. So you're expecting an uplift -- meaningful uplift in the second half of EUR 200 million basically?

Basically, yes. We keep the guidance.

Okay. And just to make sure that I heard the right number. So you're saying from today, you have EUR 250 million left of disposal proceeds to be collected?

EUR 150 million.

So this is because you collected yesterday on....

Exactly.

Exactly. So you have EUR 150 million left?

Yes, exactly. On the top of [indiscernible]. Exactly.

Exactly.

Yes. And the EUR 150 million, is this going to be collected this year? Or is it a mix of this year, next?

I'm not so sure we have everything cash in by the end of the year. We will -- most of it, probably, but at least signed, collected, hopefully so. Signed actually, most of it is firmly signed. The collection, the closing is also depending from some local authorization. So it is not truly in our hands from a part sales point of view. But most of it will be collected this year.

Gregory, Sophie, we have quite a lot of questions. But unfortunately, we won't be able to take all of those. There is one for probably Gregory. You confirm that the Wholeco leverage calculation include the last 12 months EBITDA of disposed assets until the effective date of the consolidation. So that's technically. Second question, can you guide us through the level of nonrecurring cash expenses for 2025 as a whole eventually on 2026, but that is public, you might not answer this one. Last question on your EUR 1.5 million of real estate debt at end of June '25, what's the amount included in the real estate JV?

On the first one, yes, I do confirm. So when we published the pro forma, the Wholeco leverage, we include the contribution from the disposed assets until they are deconsolidated. And this is the way we calculate it according to the agreement we have with the banks. And this is the way we calculated it with Wholeco at 6.6x EBITDA pro forma of the disposal of Petits-fils.

On the second one, I think on the nonrecurring, I just -- we say that we -- in the first half, we had EUR 55 million of nonrecurring part of it is impairment, other restructuring. So as you understand, a major part is part of this plan and we are going through. So this plan will come to an end on 2025. And you see as well, it's good as well to make a point here because we mentioned it in the press release. We didn't fully record all the gain that we will have on the disposal plan and we put in the press release. So the gain are estimated so far at EUR 200 million plus. So this is one of the reasons as well, we don't guide on the noncurrent because you have plus and minus, especially for a group like us going from a plan and going further. Obviously, we continue to have a discipline, but we don't externally release on it. And last but not least, on the real estate. So yes, we have roughly EUR 1.5 billion real estate debt at today, roughly EUR 700 million of those are in the joint venture with partner.

Thank you, Gregory. Another question, it's a clarification one regarding the objective of EBITDA margin up 100 basis points to 150 basis points in 2026, compared to 2023. What's the correct -- is it current that it was 11.8% in 2023?

That's correct. But the starting point is 11.8% EBITDA margin back in 2023 and the guidance for 2026 is to improve by 100 to 150 basis points in 2026 with the starting point 11.8% back in [ 2023 ].

Thank you, Grégory. That's it on the chat. We probably will take one more question live. So Laura, please.

Sure. We will now take our next question from Tomas Mannion of Sarria.

Just in relation to the pricing in relation to the French business, when was -- when did you become aware that the pricing -- there was going to be a pricing delay. This seems to have come as a bit of a surprise to analysts. I was just wondering what kind of lead time did you have in this? And are you already seeing this to work its way out? I know we've talked about it significantly through this call, but can you please spend a bit more time on that?

Yes. Actually, there has been some discussions, so the pricing change has been actually discussion all along the '24 exercise. There has been commitment from the Ministry to correct some of the basis of calculation, especially for this newly opened or reopened facility, that was a very specific for us in the magnitude. And there has been -- maybe you are not aware, but in France, there have been a lot of change. So unfortunately, we lost the previous health minister with withdrawal of the former Prime Minister. And then there are new one was appointed.

So all this discussion took place between November '24, where the correction was actually very, very clearly promised to us and then the newly appointed Minister early Jan did not actually executed it the way it should, and we discovered in the final tariff allocation that happened actually in April, so the end of April. When we got into the retail information we realized that what we were expecting was not reflected in the framework granted in the 15 facilities at stake as expected. So basically -- I'm sorry, it's a very complex story that has to do with the current instability in the French government, which is actually not so usual for us.

For clarity then at end of April was the first time that you found out that the pricing was not as expected?

Yes. We -- I mean, we found that -- we had to balance the plus and the minus. And actually, we had started, of course, already some September, this plan to upgrade the case mix management and database case mix management to enter all the data, all the collected data and to see how we could divest here, the case mix according to the information and to the care framework that has been communicated. So actually, there has been, as I said, plus and minus, the minus were a kind of more than expected when we did the budget. And that we see also a lot of upside confirming and firming up. And this is actually what -- why definitely for Specialty Care first half has been a transitional semester.

Okay. And then just one final, I appreciate the time. One final thing in respect to that. How long is this current agreement going to continue for? Or do we -- is there always a risk that this is going to be an issue in FY '26 and FY '27? At what point the contract you have now, I know it's not a specific contract, but the pricing agreement, do we expect that to change again over time?

And I think -- no, the overall framework with this [ 90 ] various specialty and care pathway and the criteria on the intensity of rehabilitation and the care intensity and all these things, I think this is stable. What is going to change year-on-year is actually the overall indexation, but we have planned actually the limited expectation on indexation. So we are not expecting massive positive indication, more kind of 0 plus something. So that's our -- how we are modeling and planning currently. And what I said about was the missing part of the stable one, I think we can only now have, I would say, good news for the past because we are claiming to get some compensation for the time being, and we'll see that. I mean, we have swallowed this negative transition '24, '25. And now what we have to do is to steer according to our own case mix management based on the new tariff framework.

And for the newly open facility, what they have to do is to find compensation. There haven't been -- the fixed part is not the one that was promised, okay, but they have to play with the rest of the tariff scheme and to push the right specialty and the right care intensity in what they are doing. And this is actually exactly the way we are working on these 15 clinics.

Thank you. That was our last question. I will now hand it back to Sophie for closing remarks. Thank you.

So thank you very much for your questions and your attention. As I said, we remain after the positive and successful achievement of our refinancing plan given the strong business momentum and very solid fundamentals of our business portfolio and very high commitment of all the Clariane community. We look forward to the coming months and years with a great deal of focus and confidence, and we are really happy to be actually back to operation and develop our business after this very significant effort we made on the disposal and the portfolio refocusing over the last 18 months.

So that's it for the first half results, and I expect to speak to you soon for our third quarter and especially also for the full year in February '26. Have a nice summer. Bye, bye.

Thank you. Ladies and gentlemen, this concludes today's call. Thank you for your participation. You may now disconnect.