Emeis Aktie

Ladies and gentlemen, welcome to the emeis conference call regarding its 2026 half year results. It will be structured in 2 parts. First, a presentation by emeis management team represented by Mr. Laurent Guillot, Group CEO; and Mr. Jean-Marc Boursier, Group Deputy CEO. Afterwards, there will be a Q&A session during which you can ask oral or written questions.

I will now hand over to the management team. Gentlemen, please go ahead.

Yes. Thank you. Good morning, everyone, and thank you for joining Jean-Marc and myself this morning for the presentation of our half year results at the end of June '26. I know that earnings season is in full swing. So Jean-Marc and I will try to keep this brief.

First, I wanted to share with you our satisfaction at being able to present our half year result today, fully audited nearly 2 months earlier than we have in recent years. This is further evidence of our group's return to normalcy, which is reflected in all aspects of emeis operations. You may have seen already our press release, so you may already guess how happy we are regarding this set of figures, showing strong performance in H1 ahead of our initial expectations.

I'd like to begin this presentation by highlighting the major achievements of the first half of the year, achievements we are proud of and that have very well driven our financial and operational performance.

First, I'd like to really thank and congratulate the emeis teams who performed exceptionally well through this difficult year, first in the face of quite significant flu season at the beginning of the year and then during the heat waves more recently. Health and safety measures alongside with proactive plans help protect our residents. I would also like to take here the opportunity this morning to warmly congratulate our team looking after our residents when facing the forest fires in Gironde or in Spain these days.

Second, the significant improvement of our marketing processes, particularly in recruiting new residents. The number of prospects increased by nearly 22% in a single year, which obviously fuels the growth of our occupancy rate. In this context, we have also further refined our pricing strategy as occupancy rates rise across our markets. Proactive pricing management for accommodation with tailored and dynamic pricing structures, enabling through pricing effect to outperform inflation while increasing at the same time, occupancy.

In addition, this year, we are seeing the positive effect of our OpEx optimization program that we call Boost, which aims to control operating expenses while maintaining the quality of care. The first half of the year also saw a very strong performance in certain markets, as you will see with Jean-Marc's presentation, France is recovering quickly, but performance is particularly satisfying and exceeds our expectation in Southern Europe and in Germany as well.

And finally, as you know, we exited the safeguard plan during the first half of the year. We were able to settle our tax and social security debts and reassess our maintenance capital expenditures budget to prepare for our group's future performance. All these factors have contributed to the growth in the average occupancy rate of our facilities. It has risen by 2.8 percentage points over the past year, now above 90% in Q2 and even reaching over 91% for the first half in our mature markets. This latest increase is part of the very favorable trend we have been observing for nearly 4 years now. This momentum shows no sign of slowing down, and we are -- we do expect further improvement ahead.

It is also worth noting that the growth in our revenue has largely translated into higher operating margins and income. While revenue increased by EUR 103 million, operating margin rose by nearly EUR 70 million and our net income by nearly EUR 100 million. This is a result of our agility, our segmentation strategy and our vigilance in controlling costs, something also that feed our confidence for the coming quarters.

We continue to make successful progress toward all our objective to move our group towards recovery and stronger performance ahead. We have now achieved our goal regarding confidence with our residents and patients as well as quality of care and accommodation. The satisfaction rate shows a strong progress and is a proof of this. We are also making strong progress in increasing our average occupancy rate, although we still have significant room for improvement ahead. The progress we've made so far is particularly encouraging. Occupancy rate is now above 90%, as I said, in Q2, but we'll do even better ahead.

Operating margins have risen sharply over the past 2 years. But here too, we will deliver stronger figures in the coming years. Our disposal plan has now been met and even exceeded. We will now be very opportunistic in this area going forward. Our balance sheet, particularly with regard to our debt maturity profile has normalized since the refinancing completed 6 months ago in December and in January 2006. Our financial leverage ratio has decreased considerably over the past 2 years. It now stands at 8.7x, but we are very confident that it will continue to decrease further in the coming semesters.

The first semester thus exceeded our expectations in many respects. We sustained momentum in occupancy rate and effective control of operating expenses. In some international markets, signs of supply constraints appear to be emerging in the market when occupancy rates now exceeding 90%.

In France, although still lagging behind other markets, the pace of growth is particularly strong, and the catch-up is therefore well underway. We are thus ahead of our initial expectations. And as a result, the guidance for fiscal year '26 has to be revised upwards. We now expect the group's EBITDA on a like-for-like basis to grow between 12% and 14% in '26, whereas we had previously anticipated growth of only slightly more than 10%. Over the midterm, we continue to believe this momentum will continue, expecting a CAGR of -- for EBITDA between '24 and '28 between 12% and 16%.

Thank you for your attention. This was my introduction. And now I turn the floor to Jean-Marc Boursier, our Deputy CEO, to present this financial performance of the first half to you in greater detail, and I will be available to answer the questions you may have afterwards. Jean-Marc?

Thank you, Laurent. Good morning, everyone, and thank you for joining us this morning. I will begin my presentation by highlighting what I believe are the 5 most important points in our earnings release. First, revenue growth remained strong, reaching 6% like-for-like. It is driven by improved occupancy rate as well as favorable price effect. Second, operating margin are improving very significantly. The EBITDA margin, excluding IFRS 16, for instance, rose by 46% on a like-for-like basis. And as a percentage of revenue, it has increased by 2.2 points to 7.6%.

Third, net income remains negative at minus EUR 40 million, but has improved considerably, rising by EUR 97 million versus last year. Fourth, the operating contribution to our cash flow is very significant. In the first half of this year, however, it was offset by one-offs, transitional items related to the group's normalization. I'm referring to working capital requirements and to nonrecurring items, which I will discuss in more details later. Net operating cash flow and recurring free cash flow are consequently stable.

And finally, our leverage ratio continues to improve materially. Net debt-to-EBITDA ratio now reaches 8.7x at the end of June versus 15.4x a year ago. This improvement is not only driven by net debt reduction, but also by the sharp increase in EBITDA.

Let's look at the P&L in greater detail. So if we start by occupancy rate evolution, across the group, as you can see on this slide, in all of our markets and business segments and in all of our regions, our occupancy rates are rising significantly. This trend is relatively consistent across all regions, as you can see on the left-hand side of this slide. For nursing homes, in particular, the increase is very pronounced with occupancy rates rising by 2.9 points to 89.4%.

And if we focus, as usual, on our 2 major markets, namely Germany on one hand and France nursing homes on the other hand, trends are also particularly favorable. It shows that the momentum remains strong and at a steady pace in both those regions. In France, as you can see, the 380 basis points increase in the occupancy rate is certainly driven by the French group's commercial performance. Please note, however, that this trend also benefits from, first, the reduction in the number of beds in the denominator, which now consists of marketable beds as in other regions versus authorized beds. And it benefits also from the sale of our senior living facilities. The sale was closed at the end of 2025. And the occupancy rate of those senior facility were slightly lower than the rest of the portfolio.

In France, we are also very happy to see that occupancy rate rose in Q2 versus Q1, whilst usually relatively stable in those 2 quarters, and this is very encouraging. In Germany, as you can see on the right-hand side of the slide, the occupancy rate continues to rise at a very rapid pace, plus 3.4 points. And this trend is, therefore, continuing for the third consecutive year, as you can see, with an occupancy rate now approaching 90%.

How does it translate into revenue growth? Laurent said it, we enjoyed an organic growth in revenue of 6% in H1. While the increase in occupancy rate is obviously a significant factor, plus 2.6% if you combine -- if you include the new openings, the favorable price effect remains the primary driver of the revenue growth, contributing 3.4% in H1. On a current basis, not an organic basis, but the current basis, revenue is up 3.5%, slightly minored by, first, the disposal of our Czech Republic activities and the French senior housing I was mentioning in 2025, but also by the fact that we are currently disposing of our activities in Latin America. And therefore, we have excluded LatAm from our revenue in application of the accounting norm IFRS 5.

If we look at the growth by activity, as you can see, nursing homes have outperformed again in H1 this year with a like-for-like growth of 7.1%, a material performance reflecting the strong occupancy rate improvement seen in all markets in addition to the capture of positive price effects. The momentum was maintained despite sanitary risk, thanks to the proactive health protocols, which helped contain a particularly virulent flu season as well as heat waves more recently.

On clinics, although a bit weaker, the dynamics remain very satisfying, especially on mental health. This is benefiting from the effect of operational corrective measures taken throughout 2025 following, as you would maybe remember, a relatively weak Q1 last year. We -- that quarter fell short of expectation, particularly in terms of private room sales, but has been largely corrected since then. If we look at revenue increase by geography, nearly 60% of our revenue is generated internationally. And on those markets, the growth -- the like-for-like growth is 7.5%. In Spain, in Poland, in the Netherlands, growth is even double digit.

This performance is driven by a very favorable price effect like in Austria, in Germany, in Switzerland and in Spain as well as strong increases in occupancy rates in Italy and Poland, for instance. Note that in Ireland, where rates are under significant pressure -- were under significant pressure last year, this metric is now rapidly recovering, although it remains below last year levels. In France, the recovery is still going on, as said by Laurent. We were particularly positively surprised with the very good momentum in occupancy rates, especially on our nursing homes business, while the price effect remained positive.

As you can see on the nice slide, the performance of our revenue is flowing nicely into operating margin. Staff cost ratio has been further decreased reflecting the measures we progressively implemented during the past 12 months to optimize the allocation of our human resources. At the same time, we also benefited from the initial effect of Boost, our operational performance program, launched last year, which led to a reduction in the intensity of other costs or OpEx as well. I'm very confident that those 2 cost components, namely staff costs and OpEx can be further improved in the years to come.

And as a result, these measures are enabling us to maximize the conversion of revenue growth into operational profitability. And consequently, EBITDA margin reached 15.8% and EBITDA margin before IFRS 16, 7.6%, both of them up 2 points versus last year. When we break down the EBITDA growth by geography, we see that all regions are contributing positively to this growth, plus EUR 15 million in France, plus EUR 13 million in Northern Europe, mainly driven by Germany and the Netherlands, plus EUR 11 million in Central Europe with a very strong performance in Switzerland; and finally, plus EUR 8 million in Southern Europe. Please note as well that our EBITDA includes EUR 23 million of profit on PropCo disposal versus only EUR 5 million last year.

Laurent mentioned the Boost operational program. So let's say a word about Boost. The program was launched in 2025 and is designed to further improve the quality of our service while optimizing our OpEx base. To illustrate this, you can see a few examples of topics the team are currently working on. The consolidation of regional pharmacies, the renegotiation of our laundry contracts and the renewal of and standardization of our medical equipment are good examples of what we are tackling for the time being. Both program addresses an OpEx base of approximately EUR 400 million and is expected to reduce operating expenses by 2% per annum over the next 3 years, thus feeding our confidence for further margin expansions.

The initial results are very encouraging and prompt us to consider implementing similar measures outside France. If we continue to go down the P&L, you can see on the next page, growth in EBITDAR flows nicely into EBITDA and then into EBIT improvement. Rental expenses flattening are kept well under control despite important volume of PropCo disposal achieved last year. This is due to 3 factors: first, renegotiation of leases; second, OpCo disposal achieved in 2025; and third, acquisition in 2025 of some real estate assets that were historically leased, notably in Italy.

And as a consequence, EBITDA, excluding IFRS 16 is up 46% like-for-like at EUR 228 million. You can also see on this page that EBIT grew by 83% versus H1 last year at EUR 187 million with a margin of now 6% -- 6.2% versus 3.5% last year, a very good trend that is very likely to continue. And since H1 2024, EBIT grew by EUR 200 million, which is very noticeable. If we finish now the analysis of our P&L with an EBIT that is up EUR 83 million year-on-year, emeis net result group share grew by EUR 97 million, although still negative by minus EUR 40 million.

Two further elements to be noted in this page. First, the reduction versus last year on nonrecurring items since most of the big operations were finalized in 2025. In H1 2026, please note that these nonrecurring items are largely related to the Isemia closing in January. Financial expenses are slightly up versus last year, plus EUR 18 million. But as a matter of fact, a financial income from derivatives for EUR 15 million was recognized last year. This means that on a like-for-like basis, financial expenses would have been totally stable, and this trend generally reflects decline in net debt volume on one hand against the backdrop of rising interest during the period on the other hand.

Let's move on to the cash flow. The cash flow statement is facing, let's face it, some headwinds with a very good operational contribution offset by 2 one-offs related to the group normalization. So these 2 temporary and nonrecurring factors that have offsetted the growth in EBITDA are the following: First, EUR 94 million working capital increase. This is largely the result of the normalization of our suppliers' payment processes, which were disrupted last year by the transition to a new accounting IT system in France. And second explanation, the early exit of emeis's safeguard proceedings, which made possible for us to settle the fiscal and social debt that had been frozen by the French state until then. This largely explains the EUR 164 million you can see listed here under the nonrecurring items.

Please note also the increase in maintenance CapEx that we have implemented to ensure emeis performance over the medium and long term. In the coming few years, the level of maintenance CapEx will continue to rise, but only very slightly. As you can see on the next slide, this is more of the same. You can see that the net operating cash flow and recurring cash flow remained broadly stable in H1 with a very strong operating contribution that was temporarily offsetted by 2 nonrecurring items, the 2 nonrecurring items that I just explained.

A few words on disposal. You may have noticed in the free cash flow, the minimal contribution of asset disposal to the group this year, which is totally in line with our decision to adopt an extremely opportunistic approach on this topic now that the 2022 to 2025 disposal program has been met and even significantly exceeded. On the top of the Isemia transaction closed in January for EUR 761 million, and that is accounted for as capital contribution. EUR 114 million of disposals have been achieved in H1, almost 2/3 of them related to a sale and leaseback operation with a yield lower than 5%, which is an excellent valuation for emeis. Note as well that on the top of that, a further EUR 156 million of disposals are expected to be finalized in the coming quarters.

For your information, so we have engaged the disposal of the full perimeter of our activities in LatAm, so Brazil, Uruguay, Mexico and Colombia. At the end of June, 30% of the expected values were already finalized and cashed in and a further 40% were already secured and signed, which means that the whole LatAm perimeter is very likely to be sold before year-end. As a result of all information we are sharing with you today, you can see that the group net debt has decreased by EUR 566 million since the beginning of the year and now amounts to EUR 3.9 billion pre-IFRS. As a consequence of both net debt reduction and operating margin increase, you can see that our leverage ratio continues its rapid downward trend. It stood at 8.7x at the end of June compared to 11.8x at the end of December and even 15.4x a year ago.

Looking ahead, we are totally convinced that the group financial structure will continue to improve. As a reminder, we have agreed to a covenant of 6.5x effective in 2029, and we believe we have room to maneuver. Already, we are ahead of our commitment, which was to reach 12x of leverage ratio by the end of '26. So we are well below our covenant.

And to conclude my presentation, you will find here a few additional information regarding the debt structure. I will highlight just a few points. Our debt has an average maturity of nearly 5 years with no significant reimbursement until 2030, as you can see. Our cash position stands at EUR 601 million at the end of June, which is comfortable. And please note as well that 85% of our debt has now been hedged or is at fixed rate. This paints a picture of a group whose financial performance is not only improving considerably, but whose financial structure has also been significantly strengthened. We can now look ahead with confidence for the years to come.

As you know, today is the last time I will be addressing you as a CFO, and I will come to appreciate just how far we've come over the last 2 years. But now that our financial situation has stabilized, we will focus with Laurent on continuing to improve our operational performance in line with our medium-term guidance and beyond. In my new role as Group COO alongside Laurent, I will be dedicated to this task.

Laurent, the floor is yours for the conclusion.

Thank you, Jean-Marc. And before answering your question, I wanted to remind you the main point of this presentation, the ones that make us particularly pleased with the H1 figures. First, this half year highlights particularly strong momentum in our business with a like-for-like growth rate of revenue of 6% and an increase of nearly 3 points in the average occupancy rate. Second, this growth has positively impacted our operating margins, which are rising sharply. EBITDA, for instance, is up -- EBITDAR is up 18% like-for-like.

Third, at the same time, our financial structure is strengthening significantly with a leverage ratio now at 8.7%, which will continue to decline in the next semesters. And finally, as a result of this first half, which exceeded our expectations, we have raised our guidance for '26 and now expect EBITDAR to grow by 12% to 14% on a like-for-like basis.

So we are now available to answer your questions.

[Operator Instructions]

So first question from Frederic Dib.

Can you please provide more detail on the sale and leaseback operation where you mentioned yields below 5% geography, types of assets, duration of lease, below 5% seems aggressive compared to market comparables. How do you explain that?

Yes, you're correct. We -- this is quite aggressive. This is very good performance of our real estate team. This is also explained of the -- by the geographical mix because some of the assets sold were in Switzerland. But this is also the proof that we are very selective now, now that we have exited from the safeguard period that we are very selective with our operations. And we will really focus on operations that make sense for the company from a financial point of view and really are in very, very good conditions. And this is really our strategy, selectivity and very good price going forward.

Second question, congratulations for the results. Your margin improvement is impressive given the inflationary pressure on wages. Should we expect emeis to be more impacted in H2 '26?

Well, we are managing this inflationary pressure. We have -- as you have noticed, we've made specific efforts on prices to try to compensate. But at the same time, thanks to both productivity gains overall and management of costs through the Boost program, we are balancing this inflationary pressure by our actions. And we should continue to see an improvement in the results in H2 and hence the revision of the guidance. We are not expecting more impact in H2, but that is still to be done. It depends on the events.

As you may have imagined at the beginning of the year, we are not thinking about a war in Iran. This had impact on the inflation. This had an impact on our operation, but we immediately adjusted and we are very active on that front to be sure that this will not impact our P&L. The second point is that, for sure, concerning H2, most of our costs that are non-staff costs are already fixed and will not be impacted in the short term. Yes. This is particularly true concerning energy.

Any question on the telephone?

The next question comes from Constantin Gumenita from Caius Capital.

Congratulations on solid numbers. Three questions from me, please. One on pricing. Should we expect a similar price evolution in the second half as in the first half or perhaps slightly higher given the dynamic pricing model you referenced?

On clinics, could you give a bit more color on the operational -- or reminder rather on the operational corrective measures implemented in 2025 and how you expect that to impact second half like-for-like growth versus the first half growth rate?

And lastly, on costs, very encouraging progress on the Boost program in France. But could you also give a bit of color perhaps on your actions with regards to staff costs and non-care home-related central costs?

Concerning pricing, well -- or active pricing strategy, really, this is something that we started 1 year, 1.5 years ago. So this is really continuous improvement facility by facility. What is positive in most of the countries is now that we start to have -- with increased occupancy rate, we start to have more capacity to be selective and to enforce this pricing policy. To sum up, the higher the occupancy rate, the higher the capacity we have to pass prices to our customer. I would say very similar price effect in H2 compared to H1, even if it is sure that after the start of the war in Iran, we reboosted, if I may say so, our pricing policy.

Concerning the clinics, same period mid last year -- first half last year, we launched a corrective action to increase our single room sales, meaning that the private contribution of our customers to be sure that they have been taking a little bit more and pay more single rooms than before. This had a significant impact starting already in the second half last year, but more in the first half '26, and we expect further results in the second half of this year.

Thank you for your comment on Boost. On the staff cost, we continue to drive the staff cost down progressively, I would say, with a relatively cautious but steady approach month after month, quarter after quarter. This includes clearly organization optimization. This includes simplification of reporting through digitalization. This includes a lot of measures of productivity that obviously we do in our 1,000 facility across Europe. This is really a progressive improvement everywhere, but this is a strong area of action. And this is probably one of the area where we still have a significant opportunity to increase our margin. We are totally conscious of that.

Jean-Marc, you wanted to add something or my answer was...

No, perfect.

Okay. Sorry.

Can I just confirm on the last question?

You have a follow-up question?

Yes, I do. Are there any financial targets you can share on staff costs and other central costs?

No, I think the real target is the one that we have given on EBITDA progression over the midterm period, which is a growth of 12% to 16% average. And we will take the measures needed to achieve this guidance, this midterm guidance, which is clearly one of our goals. And depending on the year, depending on what happened with inflation, depending on what happened with the organization, we may change the priorities to be sure to deliver this set of performance as it is our commitment.

One question of Emmanuel Arnoldi.

Congratulations for the strong set of results. Could you please comment on how the EBITDA margin ideally without PropCo income compares with other industry players? I have the impression that industry standard EBITDA margin is slightly above 20% at now comparable occupancy rate.

Jean-Marc, do you want to take -- I'm speaking too much. So do you want to take this question?

This is clear that we still have a lot of margin for maneuver in front of us. This is true that the best industry players are around 20% EBITDA margin. We are at 16%. We are -- we have gained 2 points within 1 year, and we continue to work hard in order to catch up. So we will be there shortly. And we will be there even before the demographic wave that will come in front of us because, as you know, demography will play a very positive role going forward as people born after 1945 after the Second World War will arrive in our nursing homes at around 2029 or 2030.

So all of that -- all of what have been explained by Laurent is embedded in our medium-term guidance and will enable us to reach the type of EBITDA margin that you are describing.

No, that's perfectly. What is clear is that we are still at the early stage of the recovery. So you're right in your comment, and this gives us confidence that we can continue to show strong EBITDA improvement over the years.

New guidance -- another question from Julien Thomas. New guidance '26. It seems that your new guidance factors in some headwinds in H2, less real estate capital gains, wages, inflation and so on and so on. Well, at this stage, this guidance is reflecting clearly our expectations for the full year.

Well, it takes into account the very good results of H1, obviously, but also it takes into account some risk and inflation is one cautiousness. And for sure, we are not expecting the same amount of real estate capital gain in the second half than in the first half. But for sure, there is also opportunity. So it's really our best estimate at this time. Being above is definitely a possibility, and we will try to achieve that. But this is our best estimate at this time.

Now your comment, Laurent, on capital gain is very important because last year, we had generated EUR 64 million of capital gain, of which only EUR 5 million in H1. So that has been factored in the guidance that we have been disclosing to you. But obviously, we are there to try to beat it as we have demonstrated this year.

In the first half, yes.

Well, a question of Jean-Christophe Ganay. What -- I'm translating it in English at the same time, so it will be a little bit slower than normal.

What is the rhythm of progression of occupancy rate you are expecting? How are the temporary workers, people -- number of people evolving? How is changing the turnover? Are there constraints of health budget in Europe? Boost -- is Boost more advanced in Europe versus France?

Well, I take some and I'll give you some to Jean-Marc. Occupancy rate progression, I think you have seen in the presentation, we have a quite steady rate of increase of our occupancy rate in the last years. So we are expecting this trend, and it's Page 7 of the presentation. We are expecting something which is very close to that in the coming second half. Moving forward, clearly, in some countries, for example, in Spain, we have occupancy rate that are much higher. And then in these countries, getting -- as you can understand, it's difficult to go above 100% occupancy rate. So we start to see in some countries a slight slowing down. At the same time, France is quite dynamic in that regard or Germany continues to be dynamic with an occupancy rate, which is well above -- well below our target.

So I would say second half will continue to show a good improvement, and we expect that to continue over the years, perhaps moving forward at a little bit slower pace.

Temporary workers, I don't know if you talk about France or worldwide. This is clearly -- temporary workers is really something on which we are working to decrease the number of workers. We've made huge progress in the 2 biggest countries, Germany and France in the last year. It leads to a decrease in staff cost, which is one of our key points. Well, clearly, the market is not helping with difficulties to find some of our professionals, especially when we are talking about the more qualified care people.

Turnover is really going in the right direction. We've reached a low point in June in that respect. If I take the only month of June, which was really great, we have a turnover equivalent for the full year. We have a turnover of 15% in France in June. This is to be compared with the numbers that we had 3 or 4 years ago above 1/3. So really, we are making a huge progress in that respect. This is not the end. The goal is to really be as low as possible as it is having a low turnover is a very good thing for the cost of labor, the staff cost. It's a very good thing for the quality. So it's a very good thing for the company as a whole as a capacity to retain its customers.

Are there constraints on the budget in Europe?

Yes, for sure. And the first country where we have constraints in budget is France, definitely. But in the other geographies, we don't see that with the same -- I would say, with the same pressure. We have good price evolution, and we have good trends in Germany, in Austria. Even Spain is okay. We may have one difficulty a little bit more than expected in the Netherlands, but we will see that in the next months, it's not completely fixed. But for sure, overall, the European countries have, I would say, a balance sheet issue and a spending issue. They have constraints in their budget and health will be one of the important budget under constraints.

What it means for us, and we have already taken action in that respect is that we need to increase the part that is paid by the families and by the patients. And this is clearly one of the key actions of our strategy country by country, depending on the regulation in each country, what we can do to try to find additional ancillary revenues that are out of the pocket money from our customers. And clearly, we are developing action plans everywhere with KPIs so that we can increase this part of the private payment.

Jean-Marc, do you want to comment Boost?

Christophe Raphael, Boost is not a program that is only supposed to reduce cost by renegotiated with supplier. It's much more than that. It's a full operational transformation program where we have reviewed with the operations in our various residents and regions, all the various verticals such as food, transport, medical equipment, maintenance of our houses, energy management, drug distribution, laundry, even animation and so on. So the idea is can we, at the same time, improve quality while modifying the organization in such a way that we can optimize our OpEx structure. So you have understood that we are tackling in France an OpEx base of EUR 400 million and that we are expecting at least 2% of OpEx reduction at least for '26, '27 and '28.

It took us approximately a year to study and design the program and to roll it out in each and every region. So we have very clear levers from improvement that we are currently implementing. It's still much more advanced in France than it is in the rest of Europe. But based on what we've done in France, we are trying to duplicate it. We are starting the duplication in Belgium, notably as we speak, and it will be rolled out progressively in all of our other geography.

A question from Pierre Bosse.

What is the share of the room in our facilities with air conditioning? How does it compare with our listed peers with the public sector?

Very, very good question because we have the teams working very well in the last weeks on this canicule and a heat period in Europe. In France, to give an example, for sure, 100% of our facilities have a room -- a common room, which is air conditioned, which is just to be compliant with the law, but that's not the case for everybody in France. And in shares of room in our facility with air conditioning, we are at 50%. When we compare with the average of the private sector, we don't have any comparison with our listed peers. We are not sure if they have communicated on that.

But we have -- if we compare with the private sector overall in France, private sector is around 18%. Public sector, I think -- sorry.

1-8.

1-8. Yes, 1-8, 18%, 1-8. The public sector is more around 6% and the average of the sector is 10%. So for sure, for us, it's a huge marketing competitive advantage that we have a higher rate of air conditioning. And we continue to have a program to roll out in the next year, an equipment program, starting obviously with the south of France, where in some regions in the south of France, 90% of our room have air conditioning as it is completely -- almost completely needed everywhere in our facilities in the south.

For sure, in the north of France, for a few days in a year is less a priority in terms of investment because it's less a priority for the family to choose the place where they are going to put their parents. So very important topic for sure in terms of quality and a huge marketing competitive advantage.

Another question of Arnaud Cada.

Congrats on the strong results. When do you think you'll free yourself from the growth investment constraints imposed by your lenders?

Well, for the time being, to be frank with you, I don't feel these constraints. We have projects. We continue to -- and we have increased our CapEx for renovation as we think it's critical to maintain a high level of quality of what we are providing to our clients. And so we continue to spend good money in renovation, and we will continue to increase in the year to come, especially to renovate our houses. We've started already, and we've never stopped in the reality even during the crisis to invest in the countries where we think there are good opportunities. So we really never stopped to increase the number of facilities we have in the Netherlands. But for sure, we are very selective in our decisions to grow.

What we cannot do for the time being, and I don't want to do that because of our financial constraints, is we want to prioritize deleveraging. This is our top priority. And you've seen it has been going down in the last years, and it will continue to go down. Disposals become more selective from now on, and we will limit that. And growth investment continue to be quite selective, but more with our own financial targets and return on investment than by a constraint from our lenders.

Jean-Marc, do you want to add something?

Yes. Arnaud, in order for you to have a quantified answer, in the recent past, we have invested by semester into development CapEx, something like EUR 30 million to EUR 40 million, as you will notice on Page 23. And we have an upper limit, which has been negotiated with the lenders of EUR 130 million per annum. So we are totally satisfied with this limit. And as said by Laurent, higher priority is operational improvement. We are not going to restart a vast expansion program as it was the case with our predecessors.

Any more questions? Any? No. No, it seems not.

So just as a conclusion, just the 5 main important points that you need to keep in mind. First, a very good set of results, but the recovery is still at this early stage, and this is not the end of the turnaround. We have still a lot of room ahead for improvement. The occupancy growth rate that we have shown in the last years and that we are still seeing in the first half is structural. It's driven by quality, by marketing, by operational excellence. It's driven also by the fact that we have free capacity and room for improvement in occupancy rate and also a very strong long-term demand.

As you have seen, France is becoming now a margin recovery story with Boost giving results, but we have room, as one of you mentioned, also in staff cost optimization. We have seen a small weakness in cash flow in the first half. It has been very well explained by Jean-Marc, why we have this one-off effect because at the same time, the recurring cash flow generated by operation is improving. And we continue to be very disciplined on capital allocation with the priority #1 being on deleveraging.

Disposal are very selective now, and we continue to improve -- to increase our capacity and our investment selectively on growth, but with a very approach, which is very selective and focused on return on investment. This is really the key takeaways from this first half results, very strong results. We are very happy about it, and we are very confident that we can continue to grow and improve our EBITDA moving forward.

Thank you for being with us this morning. Have a good day. Bye-bye. One last point before we finish...

This concludes the conference call. You may now disconnect.

Good morning, everyone. We're now going to start because it is now 9:30 a.m. Welcome to this general meeting. We're delighted to be with you. This is a combined general meeting of Emeis S.A. And like every year, it's an essential moment, a privileged moment in the life of the company to inform, to exchange and to have a dialogue between the Board, top management and yourself, the shareholders of Emeis. A few legal details. I shall chair this GM as Chairman of the Board with this CEO, Laurent Guillot; Jean-Marc Boursier, Deputy CEO and CFO; and Aulde Courtois, Director of Governance, who is also Secretary of the Board of Directors.

So let me inform you about the proceedings of this meeting. You can see them on screen. I will not comment further. The prior formalities shall now be made with the constitution of the bureau. There was an initial notice of convening published on May 15 at the BALO and a notice published on June 5 in the same BALO as also on the website, lefigaro.fr, this general meeting can therefore be convened in its -- both its ordinary and extraordinary format because at this precise moment, the quorum has been reached 67.17%, 107,801,454 Shareholders -- just a brief reminder, when the assembly will be functioning as an ordinary general meeting will require a simple majority. And in its extraordinary format, the resolutions will be adopted if there is a 2/3 majority. I therefore declare this general meeting open and suggest that we now appoint the members of the bureau.

The 2 shareholders who are present and who have the greatest number of votes shall be scrutineers, namely Caisse des Dépôts et Consignations, represented by Mrs. Audrey Girard in the front row and MACSF Épargne Retraite represented by Stéphane Dessirier, who is sitting in the second row, greeting, Stéphane. They have accepted these positions, and therefore, I suggest that Aulde Courtois be appointed Secretary of this meeting. The auditors Forvis Mazars represented by Gaël Lamant and Deloitte, represented by Mr. Patrick E. Suissa and Saint-Honoré BK&A represented by Mr. Xavier Groslin will tell us about their respective reports in a moment. I would also like to point out the fact that all of the legal and regulatory documents have been made available to the shareholders either in person at the head office or on the company's website.

I'm also delighted to greet the members of the Board of Directors, whom I would like to thank for their deep commitment. So this meeting was convened so that you may vote for 28 resolutions, 18 ordinary and 10 extraordinary, which were adopted by the Board of Directors. The agenda of this meeting has been stated. It includes the resolutions about the approval of the consolidated accounts for 2025 and the affectation and the distribution of results, the approval of the new convention, the report of the auditors, the renewal of 4 directors, the appointment of a new director, the remuneration and benefits of management for 2025, the policy for corporate officers remuneration for 2026 and share buybacks.

Delegations and financial authorizations to the Board and powers granted for formalities. I would also, ladies and gentlemen, dear shareholders, ask permission to not read out the various reports about this assembly, which are included in the DEU, the Universal Registration Document 2025, which was made available to you at head office on the website in and in the convening brochure. This will allow us to dedicate a little bit more time to -- for a Q&A session and a little bit more time for the presentations.

We will, as per usual, be using the voting boxes, which you received as you arrived in this room, and Aulde will remind you how to vote in a few moments. So a few words of introduction about the company. And then over to our CEO. So a few words about the company's performance.

This meeting is taking place at a key moment for our group after a number of years dedicated to saving and restoring and refounding the company. And 2025 is -- was a year of consolidation of progress achieved in preparation for our future. A few words about our financial results. The results presented today testify to an improvement of our operational performance, a strengthening of its financial structure and of largely restored confidence of the various stakeholders. I believe it also reflects Emeis's ability to implement with constancy the priorities that have been set, improvement of care and support, support of teams in the field and restoration of financial and economic balance.

I believe that you can all be proud of the progress observed in support, in care and in resident and patient satisfaction as well as their families. Also proud of the improvement in our quality indicators and the mobilization of the 86,000 employees in care and hospitality. Second issue I would like to focus on. 2025 was also marked by a number of major deals and operations, which have allowed the group to further strengthen its financial structure. The creation of Isemia, our real estate company, the pursuit of the disposal program and refinancing operations throughout the fiscal year have contributed to give the group more visibility and stability going forward. And I'm sure you will have noted that these advances have allowed to put an end to the accelerated safeguard plan 1 year before plan.

The year 2025 will essentially remain as the year where Emeis decided to become a company with a mission. The decision is the result of very hard work that's been put into this over the past 3 years to focus centrally on all of our stakeholders, patients and residents naturally, families, loved ones, all categories of employees and the communities in which we operate and more generally, the broader society which we serve. Our corporate purpose, which I'm sure you're familiar with, together, let's be a force for life for the most vulnerable is now part of our corporate bylaws. It reflects our collective ambition -- we consider that economic performance must go hand-in-hand with social utility and leading by example.

And this very high-level ambition is reflected in 4 commitments: contribute to change the vision of fragility by society, participate in better recognition and attractiveness of professions in the world of care and support, strengthen social links in the community and promote innovation that respects all living things on the planet. The Board of Directors enthusiastically adopted this evolution of our status of our governance. The implementation of the Mission Committee, which is chaired by Professor Didier Pittet, who's sitting in the front row today, is a guarantee to ensure we make progress in the long term in this respect.

Progress accomplished over the past 4 years are particularly meaningful if you look at things from a broader perspective. All over Europe, the aging of the population is accelerating. The number of people aged over 75 is going to be significant towards the end of the decade. We're talking about around 30% -- at the same time, the needs connected -- linked with the loss of autonomy, neurodegenerative diseases and chronic pathologies are continuing to increase. In parallel, mental health, we are all aware of it and our families around us. Mental health has become a major challenge for public health for all generations, requiring new responses that are much more accessible, much more effective and much more humane.

Needs in mental health are growing. young people, adults, seniors and require that our society collectively mobilize over a long period of time. These 2 major evolutions, an aging population and mental health create a particular responsibility for Emeis. Our role at Emeis is not merely to manage establishments or to provide health services. It also consists in supporting people on the path of life, supporting carers, developing prevention, strengthening inclusion of fragile individuals and contributing to the cohesion of the communities in which we operate.

A very broad agenda, I'm sure you will agree. But what makes me optimistic is the very meaning of our common commitment at Emeis. You, as shareholders, you as groupings of investors, you as professional carers, you as management and all of us within the Emeis governance. Your Board of Directors is entirely and sincerely persuaded that the challenges of dependency, old age and mental health are not only medical and financial. They must be also humane, territorial and environmental, which is why we decided to become a company with a mission. That is what I had to say.

Throughout the year, your Board of Directors worked in a very demanding way. We had 11 meetings, 29 committee meetings. Your governance made sure that the group's operations were high quality, that there was a proper execution of the strategy, that we supported the general management in the transformations underway. And I would warmly like to thank all of our colleagues, all of the directors for their commitment and the quality of their contribution. I would like to pay tribute to Laurent Guillot and all of the top management as well as the 86,000 employees of the group. The progress achieved by Emeis in 2025 originates in the day-to-day commitment and expertise of all of these employees at the service of the most fragile people in our society.

Your group now has more solid foundations to continue its transformation to grow its business and to address the growing needs of society in care and support. Many thanks, dear shareholders, for the trust you have placed in Emeis, and I declare open this combined general meeting for Emeis of June 23, 2026. And now over to Laurent Guillot.

Thank you, Guillaume. Good morning to all. Dear shareholders, I'm delighted to welcome you here today for this general meeting. It's always for our company, an important moment. It's an opportunity for us to talk about our results, of course. but also to tell you about the choices we have made, the manner in which we've implemented them and the direction we wish to move the company in. As Guillaume has just explained, this appointment is particularly important this year. After 4 years dedicated to rebuilding the foundations of the group, refounding Emeis, we can now look into the future more confidently, not just because we consider that everything has been done, far from it, but because 2025 was a true watershed moment for the company.

As Guillaume, our President, said this morning, in 2025, we came out of the safeguard procedure more than 2 years early. We redesigned the values of our company. We selected our corporate purpose and changed our brand in 2024 and our group now became a company with a mission. And I'm going to be explaining this. We can now demonstrate that our transformation is generating tangible, sustainable and consistent results. When I arrived at the helm of Orpea, as it was called at the time, it was an exceptional moment. The question was not just to restore the health of the company. We had to preserve an essential mission, support with dignity, people who are fragile in our care homes, in our clinics and in their homes.

In order to do this, we had to preserve and strengthen the commitment of our 85,000 colleagues. We had to restore confidence of the families, the public authorities of investors of all of our stakeholders. And we also had to restore the operational and financial situation, a multiple responsibility that extended far beyond the mere challenges of our own company. It was a responsibility that was important for the place of Emeis within broader society. And of course, the Executive Committee, the Board of Directors and all of the teams shared that very strong belief.

From day 1, we chose to be very demanding. We chose to face the difficulties to say what we were going to do and to do what we have said. The consistency between the attention we paid to our employees, the continuous improvement of quality, the operational rebound and financial discipline, all of that around a common culture became the manner in which we refounded the company. Basically, we have not only sought to restore Emeis's health, we tried to durably transform the manner in which the group creates value. We are deeply convinced that in the world of care, the quality of support, the engagement of the team and economic performance can only make progress if they progress together.

Confidence cannot be restored purely by words. It is restored by actions, by decisions, by behaviors and by consideration for others. And it generates results, both financial and nonfinancial. You will see the results that we're about to present today show that this refoundation is producing very real initial results. Our business is continuing to grow. Organic growth is above 6% for 2025 with an occupancy rate which is continuing to improve, 1.8%, particularly in care homes in France, showing that confidence and trust has been restored for our patients and their families. Our operating performance has improved. Our EBITDA is at 19.2% beyond the forecast of earlier in the year, and Guillaume has said so. The financial restructuring that we have engaged since 2022 is now almost done, thanks to EUR 2.3 billion in disposals, we managed to exit the safeguard procedure and return to a solid financial situation.

And Jean-Marc Boursier, our CFO, will tell you more about this in a few moments. But one important and essential point for me is that these figures tell a story not only of financial improvement, they tell a story of a much deeper transformation in our profession. A simple reality is that the quality of care generates the confidence and trust of our patients and beneficiaries of their families and the attractiveness of our facilities, of course, very much depends on the women and men who work for Emeis, which is why we chose very early on to invest in the team, in their recruitment, in quality of life at work, in their training and in an organization that empowers our team much more in the field so that they consider every member of the collective. The turnover rate remains high, but is steadily improving. The engagement rate was up 3% in just 1 year. And the reason why I'm talking about quality for our patients, residents and beneficiaries. We strengthened our quality systems, deployed new indicators and made quality a true lever to steer the company.

The progress achieved and observed in resident satisfaction is significant, more than 3 percentage points up since 2022 at 93.4%. So the confidence and trust of the families has also improved. And all of this shows that what we are doing is bearing fruit. We'll discuss this further with Mireille Faugère, Chair of the Quality and CSR Committee. And we will also discuss all of the elements of our policy in this respect, both the attention for our colleagues, constant improvement of care and support and our involvement in the community and our commitment to the environment.

In 2025, at the last general meeting, you approved the fact that we were moving into a new phase with this adoption of our status as a company with a mission. It's a decision that is not the end of the path. It is the start of the path. It is a long-term commitment in a spirit of continuous improvement and our new status and the commitments that Guillaume discussed earlier are now entrenched in our corporate Articles of Association.

Being a company with a mission does not mean merely adding new targets. It means deepening what we are already doing and contributing through this new approach to change society. That also means that we must preserve a lasting consistency between the mission, the governance, the manner in which we work and ultimately, our value creation. This consistency, which we have constructed over time and which we must maintain on a day-to-day basis is one of the greatest strengths of our group because our responsibility goes far beyond our company. The aging of the population is one of the great challenges for our society. Expectations are changing, needs are changing, professions in care are changing, too. We have a responsibility to adapt our offering in terms of old age, but also mental health and rehabilitation.

We must adapt our offering to new needs to individualize it, to personalize it much more for each patient beneficiary and family. We need to innovate, to digitalize, to use AI and to use robotics. And that is how we will find the answers that our societies will need in the future. In conclusion, I would like to say a few words to the men and women who run Emeis on a day-to-day basis. I know that for many of them, these recent years have been extremely harsh. I'm well aware of that. I am aware of their deep commitment with our patients, residents and beneficiaries. The progress that we are presenting today and that we have achieved first and foremost, come from them. And I would like to express my heartfelt gratitude to each and every one of them.

I would also like to thank -- our shareholders, you supported this in-depth transformation, which is still ongoing. You've understood that to reconstruct a company takes time, and we feel obliged by your trust. 4 years ago, my priority was to rebuild the company. Now our responsibility has changed. It goes beyond that. We must now demonstrate sustainably that a company that supports the most fragile individuals can also be a company that performs not despite the mission, but thanks to the mission. We have learned something crucial over the period. In our profession, there is no opposition between the humane and the economic. What we need to do is to do things properly and sustainably with commitment and responsibility. The quality of the support we provide, the engagement of our teams and economic performance are not 3 different targets, 3 competing objectives. They are 3 expressions of the same project.

And it's that consistency that forms the basis of our model and that will allow us to sustainably generate value for our patients, our residents, their families, for our teams, of course, for our partners and for our shareholders. We are well aware that much remains to be done, but we are aware that the foundations are now solid, and it's with that trust and confidence that we are together engaging on the next step. of the company's destiny. Thank you.

And I will now yield the floor to Jean-Marc Boursier to talk about the economic performance of our group in 2025.

Thank you, Laurent. Dear shareholders, good morning. Thank you for being here today with us. As you will see in my presentation, the 2025 group performance was particularly encouraging at all levels. These results enable us to look to the future with confidence for the coming fiscal years as we continue to improve our operational and financial performance. There are 5 things to bear in mind for 2025. First, our turnover grew by 6.1% on a like-for-like basis, driven both by rising occupancy rates on average plus 2 points over a year, but also through positive price effects. Then thanks to effective control of operating costs, a significant or great operating margins. The EBITDA margin grew by plus 19.2% on a like-for-like basis and the EBITDA, excluding IFRS 16, increased by 58%. The net result is still negative, minus EUR 298 million, but it is improving, plus EUR 114 million over a year.

Total cash flow is significantly improving with a free cash flow at EUR 345 million. An increase by EUR 600 million almost. And finally, our debt has been -- is now under control, thanks to the property company creation. it has been reduced by EUR 1 billion between '24 and '25. Now if I delve into further details, our turnover, plus 6.1% as organic growth. More than half of this growth is due to the rise in fares plus 3.3%, but also an increase in the occupancy rate of our facilities and the incremental rise of recently opened facilities.

When looking at the geographic trend, all geographical areas are increasing with a strong performance outside of France and especially in Northern Europe and Southern Europe, where organic growth was around plus 10% in 2025. When breaking down growth, you will see that care homes are improving by plus 8.1%, but our clinics increase has been plus 2.1%. Here, you have an important slide. As you can see, the growth is plus 2 points for care homes and plus 1 point for clinics. But you can see that there is no sign of slowing down for this growth. Proof is -- the trend is quite positive and the potential for future growth remains significant.

What is important to note in 2025 is that this revenue growth has had a significant impact on our operating margin, thanks to effective control on expenditure. Plus EUR 259 million on our revenue. EBITDA increased by EUR 135 million. So more than half of the turnover was thus reflected in the operating margins, thereby significantly improving our profitability profile in our facilities. So the EBITDA margin grew by plus 19% in 2025 and an EBITDA margin of plus 58%. Now if we look at the breakdown of the regions, the margins was improved, thanks to -- and driven by Northern Europe, Germany, the Netherlands and Belgium, but also by France because our profitability has improved in France and has contributed up to EUR 40 million.

All the regions in which we are present have improved the margin. The only stable area is Central Europe. But as you know, we've disposed some of our assets in the Czech Republic, and the organic growth is still positive also in Central Europe. Now let's turn to our cash flow because this is key. The net current operating cash flow has improved by EUR 175 million in spite of a slight increase in maintenance capital. This year, we've decided to increase maintenance capital because it's important to renovate our facilities. And therefore, improving their attractiveness. And this is a wish that we are reiterating for 2026. So you will see our maintenance CapEx increasing.

The recurring free cash flow, so after financial costs has remained slightly negative in 2025, but it was positive on the second quarter after adjusting for one-off financial costs related to the refinancing operations. And the total free cash flow of the group has improved from EUR 645 million to EUR 347 million, driven by improved operational performance, as mentioned, and a significant volume of disposals completed in 2025. As I said, there were disposal activities in the Czech Republic, service departments or service care homes in France and several real estate disposals in Europe.

So when looking at the -- the past 4 years, as you can see, on a quarterly basis, progress is indeed present. 2025 has been characterized by a significant improvement in your group's balance sheet structure. The net debt at the end of '25 was at EUR 4.4 billion. It was fully backed by a property portfolio with a net book value of EUR 4.8 billion, but the appraised value of it amounted to EUR 5.6 billion. Thereby providing a solid foundation for our balance sheet structure. And as Laurent said, when including the property company that was closed on the 14th of January 2026, we will have a pro forma debt taking into account this property company creation. The debt reduced by EUR 1 billion between '24 and '25.

Another way to show how robust our financial position is, is to look at the debt-to-income ratio, so the net debt and the EBITDA. So an improvement of 50% of the EBITDA and a reduced debt. So there's a double effect on the debt-to-income ratio. It went from 19.5x to 9.9x in 1 year only. And as part of the renegotiation done with the banks, we are committed to make sure that this debt-to-income ratio continues to decline and be 6.5x lower by 2029, and I'm hoping before. 2025 was also marked by a turning point for our balance sheet structure. We've also raised new funding, EUR 3.15 billion in December last year. And the new debt repayment schedule has been renegotiating and by extending all maturities also helps to ease any financial pressures that may have been weighing on your group for 2026, '27 and '28, where the level of reimbursement is minimal.

These 3 key elements: improving operational profitability, significantly reducing debt and refinancing the entire amount have helped us to exit the safeguard plan at the beginning of '26. And we are now in a position to calmly focus on continuing to improve the quality of care that we provide to our patients and residents on a daily basis and on continuing to improve our operational and financial performance, which will undoubtedly follow as a result. I would like to conclude by telling you about the prospects. It is useful to confirm that the favorable trend that observed in 2025 continued at the beginning -- has continued in the beginning of 2026 because in the first quarter, the performance recorded was at plus 6.3%.

So we are on the same upward trend as last year, driven by the same factors, prices or fares, occupancy rate and recent facility openings. So all of this clearly confirms that the recovery is well underway and is set to continue over the coming years. So we've given guidance to the market for the next few years, and our results in the first quarter make us confident. In the short run, we expect an EBITDA growth of plus 10% at least. And considering the increase at 19% in '25, we should reach plus 15% between '24 and '26. And in the midterm, between '24 and '28, we expect an average increase of the EBITDA of plus 12% to plus 16%.

So now you know which trajectory we are on. We are confident that the recovery we have been experiencing will continue to take shape. Thank you for your -- for listening.

Thank you very much to Jean-Marc Boursier. We will now listen to the nonfinancial report with Madame Mireille Faugère in charge of the Ethics Quality and CSR Committee, who will give you this presentation.

Thank you, Guillaume. Dear shareholders, I am delighted on my behalf and on behalf of the Ethics Quality and CSR Committee to present this report or the road map that the Board has approved or approved rather in 2024. This road map, as you can see on screen, naturally relies on the pillars mentioned earlier. There are 4 of them, and they are totally in line with the work that we do with the different stakeholders. For example, work with our employees, care given to our residents and patients, our will to be a local partner and have a positive impact on the planet.

So once we have defined these 4 pillars in line with our values, we defined 3 levels of ambition. First, be compliant. In other words, our commitments to do our job undeniably well. So -- and then there is a second level of commitment, stand out. We want to stand out to be different from others. We want our patients, our residents, our employees to be attracted by us. And thirdly, third level of commitment, take part in something that goes beyond the mere care of our patients. For each of these pillars, we have written down a few sentences.

So first, you have the commitment for our teams. What does it mean to be compliant for our teams? Being compliance means committed -- being committed as part of a collective force, recognized for its culture and its values as a responsible company. This is crucial for the teams. So of course, we now have indicators on top of this sentence to show progress. The indicators that we have is the turnover rate, the rate of people being absent and the frequency of work accidents. Have an acceptable rate means having people who are close to the patients. But of course, there is a high level of turnover.

Our goal is to reach 20% of turnover rate by 2030, whereas the rate was 33% in 2022. As you know, the level of absenteeism is quite high, 9.4% in 2022, and we want to reach 8% by 2030. And when it comes to work accidents, when Laurent Guillot joined the company, he said that he was astonished when looking at the work accident rate. And that is true. So a thorough action plan was put in place. We would like to reach 20% by 2030 instead of 27% in 2022. This is what being compliant is all about. Standing out for our teams, it means offering a nurturing career path for our teams.

We want employees to do their job well, but to have prospects as well and possibilities to evolve. So we have put in place indicators -- you might have heard of them, indicators to measure the level of engagement of our employees. And it reflects the attractiveness and talent retention or retaining that we have. In 2025, this rate was at 60%, and we are aiming for 70% by 2030. For employees who can benefit from social package and which was described in Emeis and myself program, -- we're hoping that it will go from 88% in 2025 to 100% in 2025.

Now for our patients, residents and recipients, what does it mean to be compliant and to stand out? Being compliant means guaranteeing excellent care and support. So the metrics are well known. They are driven by a quality approach, a robust one and in line with managerial goals. Laurent Guillot has mentioned it. We want to make sure that this is a reality in the field. Satisfaction, the satisfaction rate. It was at 90.1% in 2022. The target is 97% in 2030. The promotion rate, how did people come to us and how will they recommend us? We're hoping that it will reach 40 in 2030 was at 21 in 2022. Our ambition is to strengthen safety culture, especially for care. In other words, our employees need to be able to declare serious unfavorable events.

It sounds like a paradox to say that we want to increase this rate, but it's not because in our jobs, we need to be transparent and report on serious events. The reporting rate was at 0.8% in 2022, and our goal is to reach 1.5% in 2030. And why does that matter is that when accidents or events are reported, an action plan is then implemented so that it never occurs again. And this transparency will continue, thanks to this action culture. And of course, there are 3 important things: residents, families and employees in care homes and our level of ambition for reinforced dialogue with loved ones and patients. Because some residents cannot tell us how they feel. So it's important to enter into a dialogue with their loved ones.

So our goal is for this reinforced dialogue rate to reach 100% in 2030 was at 84% in 2023. In other words, we need to respond to or meet the needs of the different people and have an incremented care path. And the goal is to reach care -- quality rate that is improved. And an -- a patient interaction rate that has also improved. Interaction was quite good in 2024 at 90.3%. The goal is to reach 91.5% in 2030. And in our clinics, we want to develop specialties in psychiatry or other forms of care because it is expected from us. And our doctors are extremely talented and can meet these needs.

On the third pillar for our local areas, what does it mean to be compliant? Because we want to be a recognized stakeholder and a respected one and a stakeholder that respects the local communities. It is very important because it makes us well known. So what we are aiming for is that our facilities start being closer to local communities. In other words, developing intergenerational activity, opening our facilities with events or carrying out prevention actions locally. We were at 31% in 2023, and our ambition is to reach 95% by 2030. So there is a huge step here, but we do think that facilities directors are extremely necessary. They are well-known stakeholders, but they need to now reach out beyond the borders of their facilities.

We also have a strong tool training for our employees and training on the anticorruption system. And of course, we want to reach -- well, 100% of the Board members are trained, but we want for all engaged employees to be trained, 85% by 2030. And we do have partners on our purchasing. So we want strategic suppliers to sign a charter of responsible procurement and reach 100% by 2030. We need to go even further. We need to have intergenerational actions. There, we would like to have 80% of our establishments who have developed intergenerational initiatives by 2030. And of course, we want our own employees to serve as ambassadors. They are the best ambassadors possible. We would like them to recommend Emeis is to have a recommendation rate of 70%.

And then finally, the planet, the environment, another pillar. We are responsible players in terms of action on the planet. We want to keep our consumption under control, which is a very normal thing, of course, in order to preserve our resources. We are keen to avoid food waste, which is why we have set a target of reduction. And the first one that you see here on screen is the reduction of our energy consumption, which is absolutely understandable. Everyone should need to have objectives. And here, it's in kilowatt hours per square meter and per year. That's how we calculate things in our facilities.

To truly make a difference for the planet is to work on biodiversity. Why biodiversity? Because it is consistent with the well-being of our residents. They can relate to that as do the patients, as do the employees and nature is one of the top partners of care. Our teams have developed an in-house label, Bio Feel Good. And -- this in-house label is expressed with petals. So the first pedal is an attainable and measured objective and pedal III is a very high level target. And we have a target of 80% for pedal III by 2030, which always brings us back to our employees being the best ambassadors. They must be informed about the company's CSR commitments.

And we hope that by 2030, 70% of our employees will be aware of the Emeis Group's commitments. There are only 50% in 2025, and it's a rate measured by our in-house tools. So that was our road map. And now over to Laurent Guillot, who is going to be telling you about the results for 2025.

Thank you, Mireille. Thank you for this reminder about our ambitions for 2030 that show how ambitious we are across all of these CSR pillars. Let me start with a few examples of our actions in 2025, which, of course, fit within the broader process engaged since 2022. Examples that are very representative of what we are trying to achieve. In 2025, of course, we continued our action in the field of training. We are a true learning company, teaching company. By the end of 2025, 1,200 managers, nurses establishment heads, physicians receive training in the first school of care management. 1,200 is 3 to 4 people per facility, which is huge and transforming the manner in which we manage care in France is an important mission, and we are very much involved in that.

What we also did in 2025 is that we opened the first training center for Emeis apprentices, and it was deeply moving when the center opened to see a carer age 60 who came, who wanted to become wanted to access to a more qualified position at her age. And it is not just the salary that is important, it's the qualification. So we continue to deploy the Emeis [path] program, which now has all of the support systems. We launched the EVE program dedicated to our female talents. We've received a number of accolades, if I look across all of our companies, but one which was particularly good was the gold accreditation that we obtained by investors in diversity in the Republic of Ireland.

These long-term actions -- the attention we pay to our employees is starting to yield fruit. The customer survey or rather a satisfaction survey of our colleagues conducted shows very positive results. The first of which is that the response rate rose very sharply, 59%, up 11% versus the previous edition, meaning that there is greater confidence within the company and greater ability to express one satisfaction or dissatisfaction. And that helps us to work on pain points on improvements to further improve the satisfaction of our employees. As you know, the satisfaction of our colleagues is, of course, a prerequisite for the satisfaction of our residents and patients. So across Europe, across France, most of these criteria have improved. Engagement rate, 63%, up 3 points versus 2026 and 7 points better than the benchmark of French companies. So it's something that we've been aware of. We have colleagues who are very deeply engaged, and we are further improving that engagement 82% of the teams are satisfied.

They feel sufficiently empowered. 77% think their job is interesting and has is meaningful, and that's an improvement, too. Of course, another important aspect in parallel to that is the satisfaction of our patients, residents and beneficiaries, which has continued to make progress. Mireillee told you about this earlier, 92.5% in 2025, the overall rate, of course, up from 2022 to 2024. And our net promoter score is also up at 39 versus 34 and much lower in 2022. And when we look at these results in detail, -- they are making progress across all of our priority pillars, which are the decision-making criteria for people to decide to come along. Quality of care, of course, availability of the team, attention given to the residents and their expectations, presence and availability of care and time dedicated to care and hygiene on a day-to-day basis.

And then since 2022, of course, you know that we have focused on hospitality, which is at the heart of what we do because the quality of care and wellness also means personalized services and catering that is adapted to the nutrition, the dietary needs of our patients and residents in our care homes, in our other facilities. And I -- last Friday, in the Grand Est region, I attended a competition of chefs, a competition of recipes designed and created by the residents themselves. And that shows how our residents can be much more involved in their own life and much more empowered in the management of our establishments, and we shall be generalizing that across the country and internationally.

So the communities, the territories, as described by Mireille. The group is further strengthening its responsible procurement policy with CSR selection criteria for all of the group's 10 major tenders. We work in the community. This is very important for better integration and for the occupancy rate, the Mirabeau Clinic in Eaubonne, for instance, led a campaign for prevention against the noxious effects of laughing gas in connection with local NGOs of young people and the town hall. So that was just one example. But more globally, the group engaged in an experimentation across 3 major countries, including France to analyze perceptions of our anchoring in the community by local stakeholders. The result of that investigation will help to draw some action plans to be deployed in 2027. So of course, in terms of the preservation of resources, which is very important to us, too, we have deployed a large number of initiatives.

We continue deploying the eco-gestures and waste sorting in the establishments and at head office. We are implementing projects with a much more immediate impact. You can see on that slide here. In 2025, we have an exchange site, a barter site called Emeis Troc in France, where between establishments, so that we don't -- so that we can reuse products and buy them again, we managed to save around EUR 100,000 by exchanging equipment between establishments. We also favor biodiversity with therapeutic gardens and notably in Italy and Spain, where we planted a micro forest in Belgium. And there, we don't just do it for the planet. We also do it for our colleagues and our patients and residents or sometimes for schools nearby. So that allows us to be more present in the community and to work in the interest of the planet and the environment, but also to the benefit of our residents.

So all of that is very concrete, very serious and committed and anchored in our day-to-day work with our patients and residents. And that is what is the great strength of our CSR program. And we're delighted to see that this has been recognized by external institutions, by the French authorities. You can see here the assessment of the HAS, the High Health Authority. You can see that 99% of our care homes in France are in categories A and B, which is far better than other operators and the average of private operators. So of course, this needs to be further strengthened, and we need to make sure that our leadership persists.

We're also delighted to see that the nonfinancial ratings agencies, which, of course, had punished us in 2022, are acknowledging increasingly year-on-year, the quality of the process that is underway and that is extremely responsible -- after a few years up, we are now above the average in our industry, and we hope that our action plan, in fact, I have no doubt that we will continue to improve. And then I couldn't finish this presentation without talking about our company with a mission. It was a transition that we implemented last year. And since 2025, we created our mission committee animated by Didier Pittet, greetings to him.

And this committee with Didier is composed of 2 employees of the company, Chiara Celentano, who is in charge of a retirement home in Italy and another person from France. You heard them talking last year in a presentation video. We added to that committee 4 independent members, Mélanie Heard from Evidence, a think tank, Romain Ganneau, from Silver Valley, Henri Bergeron, Professor at Sciences Po and CNRS and Jean-Victor Blanc, psychiatrist at the Paris Hospitals. Sibylle Le Maire, who is a Director and a member of the Ethics Quality and CSR committee also ensures better communication between the Board of Directors and that committee. It has already met 4 times since September 2025.

It's meeting again tomorrow, and it has looked at the statutory commitments and targets set and is continuing to monitor the actions with a number of KPIs that will be reviewed by the independent third-party body. And Didier will come and present the results of their work during the next general meeting. And I think now for a few moments, we should listen to those who, on a day-to-day basis are keeping this mission alive.

[Presentation]

A year ago, we became a company with a mission, a very important step after a profound transformation that mobilized all of our teams in all of our countries. Being a company with a mission is the logical pursuit of what we started working on for a number of years. It will allow us to go further because care is not just providing a medical response. It is also changing the manner in which we look into fragility. It's valuing our essential professions and creating a social links within the community. It's also taking the environment and living things into account because health, of course, depends on the world around us.

It's a process that is self-evident because it goes hand-in-hand with the company's mission. And for that mission, our duty is to be humane to be part of the community and to define the future of these individuals. If we consider what Emeis does is to support the most fragile among us, that's a natural extension. It's very demanding. It's very robust and systemic. I think it's very positive in the manner in which we can renew our commitment. It's a greater dimension that goes beyond the economic aspect and really allows us to look into the future and our role in society. I think it's essential because it means that what we do has meaning. We provide service. We -- it's a mission. And being in a company with a mission makes what we do even more meaningful.

Well, CSR, the mission is pretty natural for Emeis. It's our core business. It's part of it. Emeis, a company with a mission. But first and foremost, we have teams, we have establishments and we have regions where we have an impact.

What has changed is the important is the focus on our actions on what we do, the meaning. I think you can really feel within the institution that there are multiple examples, multiple little examples, although no example is minor. There's no radical change, but what is already infusing is great many initiatives in the field driven by the employees themselves with -- and that will re-boost a momentum more largely.

I'd say that it's all reflected in the commitment of our team. There's an evolution that we need to pay attention to an evolution of the up-and-coming generation, which really wants to strengthen the bonds with society. So we're a company with a mission in order to become a model and inspiration that will generate and lead, by example, for the future in the world of care and support for the most fragile individuals.

Sustainability means that all of the company's employees, whoever they are, at whatever level, should work together. Deploying the company with a mission means that we must listen to the employees from the lowest to the highest level. and that exchange of information will help to define a new policy. I think it can change people's vision of the sector and make our professions more attractive and more valued. I think the greatest reward would be for us to talk about Emeis beyond our pure expertise. The company with a mission is becoming incarnate. It helps us to question and review and challenge our practices, our role in the community, our link with the persons we support and the loved ones. It's a shared conviction that must become a reality in each and every one of our establishments in what we do in our communities. And this is just a start. It's a great adventure that we will be experiencing at Emeis in the years to come.

So you can see a company with a mission. Our colleagues are the ones who are the best talking about it. At Emeis, be it a company with a mission, be it CSR, -- all of that is not just a complement in addition to the company's core business. A company with a mission, our commitments to CSR are really at the heart of what we do and the manner in which we create value. Our commitments are fully integrated to our strategy because in what we do, economic performance cannot come without social, human and environmental performance. That is the vision that is steering our transformation sustainably to the benefit of all of our stakeholders, the team, the patients, the residents, the beneficiaries and of course, our shareholders. Many thanks.

Thank you very much, Mireille and Laurent. Before we can listen to your questions, there are 2 chapters. First, corporate governance and then the report of our auditors. So let us discuss governance. First of all, the setup of the Board of Directors, unchanged since December 2023, 15 members, 8 women, 7 men, 2 censors, 3 independent directors and 2 female directors who represent employees and the representative of the Economic and Social Council takes part. Then directors. They were highly assiduous, 91.6% attendance. The rate of participation in the committees also reflects their commitment. You have the figures up on the screen. We are also going to be putting forward the renewal of Laurent Guillot as a director.

Being said that Laurent Guillot's CEO mandate for this term of office is also renewed for the same period. Also the renewal of Audrey Girard as a representative of the Caisse des Dépôts, which holds 22.42% of shares and her attendance is more than 90%. Renewal of the directorship of MACSF Épargne Retraite, which holds 7.41% of the shares. permanent representative, Stéphane Dessirier, who attended 81%, 82% of the time; and Frédérique Mozziconacci renewal as a director. Her attendance was 100%. The appointment of Mr. Olivier Dussopt, who's sitting here in the first row as a director. If you were to approve this, the Board of Directors that will be held directly after this general meeting will suggest that Olivier Dussopt be appointed Chairman of the Board of Directors. Olivier Dussopt was qualified as a non-independent director in view of his various positions within the Caisse des Dépôts et Consignations.

As for the compensation and benefits granted to the members of the Board, -- the overall remuneration in 2025 was in the amount of EUR 650,000. In view of the large number of meetings of the Board and of the committees, the amount received by each director had to be reduced in order to remain consistent with the overall budget approved of EUR 650,000. For the year 2026, we suggest that this amount be kept the same, namely EUR 650,000, which brings us now to the compensation and benefits package for Laurent Guillot, our CEO, a fixed annual pay package of EUR 760,000, unchanged since he took up his position, a variable compensation of EUR 970,000 with targets reached at 127.65% approved by the Board upon recommendation from the Committee of Compensations and appointments.

A long-term compensation in the form of 114,689 free shares under the 2025 plans that will be delivered after the general meeting of 2028 under conditions of presence and performance and benefits in kind of [EUR 1,13409]. This will be subjected to your approval. You, as shareholders, as what is known in our jargon as ex-post say on pay. For 2026, the compensation and benefits policy for our CEO has the following elements: -- the fixed compensation is unchanged, the variable remuneration of 100% if there is -- if it has outperformed a maximum of 150% and an LTI in the form of free shares value corresponding to 160% of the fixed compensation package if all targets are reached. And then a departure. -- system that has not changed over the past few years. And Mr. Laurent Guillot is not -- does not receive any remuneration as a director.

The variable annual remuneration for 2026, 40% for 60% for the financial targets that are here on the right hand of the screen and 40% for nonfinancial targets, which brings me to the remuneration of Jean-Marc Boursier, our Deputy CEO, EUR 600,000 fixed, variable at 100% of the fixed with a maximum of 150%. For the indicators, if there is out performance and LTI in the form of free shares of value amounting to 100% of the fixed compensation with conditions of performance and attendance. As for Laurent Guillot, the variable share for Jean-Marc Boursier will be calculated 60% based on financial objectives and 40% on nonfinancial objectives. The remuneration -- sorry, the realization of the long-term performance share plan for both Mr. Guillot and Mr. Boursier are conditioned with performance targets, again, 40% nonfinancial and 60% financial targets.

And they are exactly the same as those that apply to all of the company's employees who benefit from it. I will now suggest that Mrs. Méka Brunel, who chairs the Audit Committee, to say a couple of words about the remuneration of the Chairman of the Board of Directors. Méka, over to you.

Thank you, Guillaume. Ladies and gentlemen, greetings. A few words just to state the modalities of remuneration of the Chairman of the Board of your company for the year 2025. For the year 2025, Mr. Guillaume Pépy, Chairman of the Board of Directors received a fixed annual remuneration of EUR 260,000 gross unchanged versus the previous year and EUR 51,692.41 gross as a director. For 2026, the remuneration policy for the Chairman of the Board remains unchanged versus 2025. It will affect Guillaume Pépy prorated for the duration of his position as Chairman of the Board for 2026 and will apply likewise to his successor.

The compensation policy for 2026 is structured as follows: a fixed annual remuneration of EUR 260,000 a remuneration as a director compliant with the compensation policy presented previously, various benefits in kind in terms of insurance and health care. No exceptional annual variable remuneration, exceptional long term is planned for 2026. Thank you for your attention, and back to Mr. Pépy.

Thank you very much, Mrs. Brunel. And I suggest that we now have the representative of the college of auditors who will come and tell you about the financial report. Mr. Lamant, over to you.

Thank you, Chair. Dear shareholders, greetings. On behalf of the statutory auditors for your company, I would like to give you a summary of the reports that we have sent to you for the fiscal year of 2025, ending on the 31st of December. So we've submitted 7 reports, 3 on behalf of the ordinary general meeting and a report on the consolidated accounts and yearly accounts of the company and a report on regulated agreements. And we've also submitted 4 reports on behalf of the Special General Meeting.

Of course, I will not read them all in full, but I will summarize them. So we'll start with annual reports on the annual accounts and consolidated accounts on Chapter 6 of the universal registration document. So we've worked on consolidated and yearly accounts. And the goal is to give you a reasonable reassurance that the accounts do not include any significant anomalies. We've given you -- we presented our findings in April 2026. And our main findings looked at the cash of the group and the treatment of refinancing operations from December 2025. And secondly, the depreciation test of movable and immovable assets and the current accounts.

I'm on the next slide, sorry about that. So we confirm that we have examined the modalities, judgment approved by management to assess all of this. And we've also taken into account the specificities of the Emeis Group in terms of business lines, regulation and organization. And we have certified without any reservations, the annual and consolidated accounts for 2025. Emeis is using a new accounting legislation, which has only had presentation impact. We also confirm that we comply with the independence rules applicable to the statutory auditors profession.

On the next slide, our special report on regulatory agreements. It's on Chapter 4 of the universal registration document. And there were no approved or concluded agreements in 2025. We mentioned in our report the existence of an approved convention for 2026. It is an amendment to an agreement that was approved in 2025 for your CEO and the potential financial impact of litigation affecting Laurent Guillot, and former partnership agreements older than 2022. But apparently, no convention was or agreement was approved in 2025.

On the next slide, -- for the Special General Meeting, we've submitted different reports on authorizations to provide the Board for capital-related operations, especially to reduce capital. An ordinary issuing of stocks and several movable or property values with the maintenance or elimination of the preferred subscription rights. And on the last slide, for the second subsequent year, we have certified the nonfinancial information on sustainability. We've issued an opinion on 3 findings: compliance with ESRS sustainability standards and on dual materiality. The compliance of published information is there. And we are also -- you are also compliant with the green taxonomy. We haven't seen any anomalies, any emissions.

And so our observation draws your attention on the availability of data on suppliers when it comes to business operations. Dear shareholders, Chairman, thank you for listening.

Thank you very much, Mr. Lamant. Let's now turn to the dialogue phase of this meeting. I inform you that we haven't received any written questions for this general meeting. So we will now give the floor to you if we wish to do so. Hosts are here with us. They have mics. But first, please introduce yourself when you take the floor and then ask your question, and we will do all our best to provide you a comprehensive -- to provide you comprehensive and sincere responses.

Who would like to take the floor? 1, 2, 3. Madam on the third row and then someone at the back later.

Good morning. So this is the first time I'm attending a general meeting.

Thank you for being here.

I just wanted to ask you one thing. You have disposed of EUR 2.3 billion of assets. And I wondered why. What will happen of EUR 2.3 billion? And you've mentioned the Czech Republic. -- and senior residences or care homes in France and property, if I'm not mistaken, to acquire new accounts?

So I'd like to know why. It might be written somewhere. I'm sorry if it's a silly question. But why did you dispose of care homes to buy others? It's a possibility, but why? And out of the EUR 2.3 billion, EUR 1 billion has helped to reduce our debt by EUR 1 billion, if I've followed well. So there's a tiny bit more than EUR 1 billion that could be used. So could you please explain why -- could you explain this operation?

And the second question, I am aware that there was a litigation for minority shareholders, and it is still underway. Have you received some more information on this? Have you made provisions? And if the trial were to be completed, could you please elaborate on this?

Yes, 2 very clear questions. I will let Laurent Guillot to answer them.

On the EUR 2.3 billion disposals, they occurred not only in '25, but over the course of '22 to '25. And as you remember, in '22, the company was in an extremely difficult financial situation. So when we renegotiated with our creditors, we agreed on a certain number of disposals, and we went even beyond that goal. The goal was to strengthen our financial position. We haven't bought new care homes, but we have made targeted investments in countries where we are strong, for example, in the Netherlands, where we have built new facilities.

So we're using part of our cash, but it is minor compared to the EUR 2.3 billion in disposals. And the goal of the disposals was to strengthen our financial position. And as you've seen it, our net debt over the EBITDA ratio is great, but better, but we need to continue to move forward from an operational point of view to reach the 6.1% ratio by 2029.

When it comes to the litigation of minority shareholders, as you know, we've won quite a few trials against minority shareholders. because they weren't aware of the change in regulation in 2021. And some of them sued us. I don't remember if there are still trial -- ongoing trials, but they've put forward the exact same arguments, law abiding. And so far, we've won all of them. And no provisions.

Yes. Thank you. Sir, at the back.

I am an individual shareholder, and I've got a few questions for you regarding our governance. in your Board of Directors, there are 27% of independent Board members. That is very low, and it will reach 20% with your departure and the arrival of Mr. Dussopt. And you have 2 censeurs within the Board of Directors. Are they compensated as part of the EUR 650,000 envelope? Or are they not compensated just like the Board members representing the employees?

And finally, I've got a question regarding the annual accounts because you haven't mentioned them. So why is there a loss of EUR 326 million in 2025? And after taking into account this loss, there should be a loss of EUR 1.865 billion.

So what will be the impact?

So that's 3 questions. I will answer the first 2, and Laurent Guillot will answer the third one. Regarding the role of censeurs, thank you for mentioning them because there are 2 censeurs. One of them is here with us. She is a recognized head of a department, especially helping people recover. And censors' role is crucial because these people have had long careers in hospital -- in the hospital universe, and they take care of people who are being rehabilitated. So their approach on the medical strategy, on HR policy is extremely useful. And of course, their compensation is part of the EUR 650,000 envelope, EUR 650,000 envelope, not EUR 660,000. And the compensation of the sensors is about half of the Board of Directors members.

So to be extremely accurate on your other question, in the pack that you can find in the universal registration document, a provision stating that in case of the nonrenewal of the term of directors of one of the members, myself, the members of the group have the possibility to appoint as the Chairman of the Board of Directors, a nonindependent Chair in that case, Olivier Dussopt. So this is provided for by the shareholders' pack or shareholders' agreement that is part of the universal registration document.

And on the accounts, I will let Jean-Marc answer this question.

You do have detailed information on Page 443, Chapter 6.3 of the universal registration document. To answer your question, objectively, the reading of the accounts is quite complex because we register the business of our care homes and not of the clinics because they are part of Clinea, another branch. But you -- what is included is all the corporate results and all funding and the funding results at the headquarters or the parent company. And of course, we've written off certain current account operations. And after a loss, we -- you've mentioned an equities at Emeis SA at EUR 1.892 billion. So it's extremely positive.

And why are they extremely positive? Because after the 2023 restructuring, we had included the write-off of the debt.

There are 2 questions on the left-hand side. We will take both of your questions.

Good morning [Alfred Gérard] individual shareholder. The net result is at minus EUR 298 million. What is your plan to make it exit the red? And how long will it take?

Thank you for your relevant question. This is what we call a cash type question. So we don't have more guidance on this topic. We've significantly improved compared to previous years, and the improvement should continue in the following years. But as you can understand, I cannot give you a guidance because I haven't provided it earlier.

Thank you for the past 3 years, Mr. Pépy and Mr. Guillot. I just wanted to warn my counterparts on resolution # 9 to appoint Mr.Dussopt. He was sentenced in an appeal trial it shows this moral compass. So this is not very positive when we are trying to recover. We shouldn't have Mr. Dussopt chairing general meeting. Mr. Dussopt talked about Down syndrome children during pregnancy. He used terrible terms. And I think this is an issue when we are dealing with care homes, mental health clinics.

When we have people suffering, you can't have someone using awful language because I love this company, and I don't want to see someone with a criminal report, including the Board. So if you could vote no, that will be -- I will be grateful.

Thank you for your question. Of course, there is a personal opinion, and I will not comment on that. This is a republic. Everyone has their own opinion and is entitled to have one.

But on the first part of your question, I think there is some information that you don't have. The decision that was rendered was then revoked by the Court of Cassation, the French Supreme Court in June 2026 on the 3rd of June of 2026. So it will now be shown to the Court of Appeal of Paris within the next 6 to 12 months.

When it comes to this legal case, we are talking about procedural issues related to public procurement in 2019. The first legal decision that was revoked led to a EUR 5,000 fine, and it closed these proceedings. And of course, we will not comment legal decisions. The appeal by the Supreme Court was made by Saur. And following this appeal, this legal decision was canceled.

And I'd like to say that as soon as the appeal by the -- to the Court of Cassation wasn't made by Mr. Dussopt himself, means that he shouldn't be sentenced to more than the 5,000 fine. As we are contemplating the appointment of Mr. Dussopt, if he's voted as the Chairman of the general meeting, Mr. Dussopt received a green light of the high transparency committee. I can see that you would like to take the floor again. Please go ahead.

Thank you very much. I read that the appeal by the Court of Cassation was related to the fact that it couldn't find a job in public institutions. Is that right? Maybe you can comment on that.

Mr. Dussopt.

Thank you, Chair. First off, we're talking about public procurement from 2009. And I was sentenced to a fine, but the decision states that I haven't benefited from this operation personally. And I haven't appealed, but there was an appeal by the Court of Cassation, and it was stricken down. And most of the time, an appeal court will follow suit. You shouldn't believe everything that is written in the press. I've been working as a consultant since 2024. I'm part of other boards such as La Poste, and I've always received a favorable opinion. And have you mentioned the 4%?

What you've quoted is a truncated quote that was used by the far right. So this was a truncated deliberation. I had said that when a woman is pregnant and that she is told that the embryo she's carrying is affected by a serious disease, only 4% of such pregnancies go to the birth. Of course, this is difficult, but because it is the far right.

It has nothing to do with the far right. It's from the liberation newspaper.

Once again, this is a republic. This is a useful dialogue. Thank you for your question. Thank you to Mr. Dussopt for responding. Of course, after this general meeting, you can have an opportunity to keep talking together. So thank you very much for your question. I will give the floor to the next members of the public.

I am an individual shareholder. Dear Chair, CEO, I have a question for you. First up, congratulations on the remarkable work that you've done ever since you've arrived. Saint-Gobain has lost a remarkable addition, but I'm sure we are benefiting from your action.

You've mentioned an EBITDAR of over 10% on a like-for-like basis, if I'm not mistaken. And when we look at the press release, the revenue is progressing by 6.3%, but we can notice that this increase is based on a price effect of plus 3.9%, if I'm not mistaken. In a recent interview in April, you've reminded to the Les Échos that there was an urgency to revalue wages for employees working as part of the facilities, and that is a good thing. I am all in favor of that.

But how will you materialize this 10% flooring of the EBITDAR considering the margin effects. You've also mentioned AI. So will there be quantified goals or should we achieve this goal by increasing fares for residents in our facilities?

Thank you. Thank you, sir, for your kind words. And thank you for following my career assiduously because I'm sure that you must have read at least 5 articles in the newspapers. Well, I'm very confident that we can reach the target for the year. We have stated this earlier and when we published our results.

As you said in Q1, revenue was up by 6%, and that is linked both to pricing, which is raising and generating more profit margin, but also volumes, a higher occupancy rate, up 2.1%. And the occupancy rate is continuing to grow in line with what happened in previous years. And I hope that will continue. So there's both a volume and price effect and inflation, not just inflation in paper, but also inflation in energy and raw materials is believed to be potentially stronger in the second half of the year.

Of course, we have hedging on energy, so that is going to dampen the impact. But if we take into account the rise in revenues driven by volume and pricing and the cost increase, I remain very confident that we can reach a 10% EBITDA growth as announced earlier this year. Thank you very much. The gentleman in the middle.

[indiscernible] individual shareholder. Yesterday, I attended a debate organized by the Demographic Transition Chair that which you attended that evoked loss of autonomy and the complementarity of family carers and professional carers. I saw that very often, the families are much more critical than the residents themselves.

Your satisfaction index is better for residents than for families, which are trying to -- which, of course, trust your establishments to take care of their elderly parents. Have you -- are you looking more into the problem with the families than with the residents? And you're also talking about training.

Could the families not be trained in a sense to help the residents themselves when they return home or not?

Well, first of all, thank you for your very subtle question. I'm sure that in this room, everyone is well aware. It often happens that as part of the image of a company, those who are not customers of the company have an image that is not as good as those who do, who are customers.

Thank you, Guillaume. Thank you, sir, for your questions. Yes, we're well aware that the judgment of the families is not the same as that of the actual patients. The gap is not that huge. Things are making progress in each of our thousands of establishments. And of course, we have questions. What is the most important factor on the family side or on the resident side to improve satisfaction. And of course, that index does not only serve to fuel our presentations once a year, but all of that is deeply operational.

We do have an action plan room by room country by country. And we need to identify which is the most relevant KPI to improve the opinions of the families and residents. It's not always the same KPIs. For instance, the outside appearance of the establishment, if they come along and the resident does not have a close shave, it's the appearance of the residents themselves that's important for the families.

And that is clearly what we are looking into for each of our establishments. As for educating the families, there already is a step in a sense. slightly before that, when a resident comes into our establishments, very often, the family has been in a carer situation and for a time before the person comes into the care home. And there must be a transfer of knowledge between the family and the carer team.

It's quite difficult. It's a difficult moment for the families, but there is a manner in which one can take care of each resident in line with what the family wants and what the family has practiced. Thank you. Yes, please.

Daniel [Allègre], individual shareholder. Isn't there a bit of an opposition between a company with a mission and profitability because the company with a mission requires a certain number of things that are additional to what a normal company does. And then second comment, there are a number of directors who are independent and who hold no shares, including the CEO. I think that's a bit of a problem. Thank you.

A couple of words about your first point. The Board of Directors adopted that status as a company with a mission. We believe the exact opposite. We believe that in the value, the valuation of Emeis, the fact that we are a company with a mission will serve to further strengthen in the long term, our company's image. The fact that we are deeply rooted in French society, in French communities, its reputation and therefore, its occupancy rate, the attraction of the company. And we think that in every respect, the fact that we are a company with a mission generates value for our shareholders, and Laurent said so earlier in his presentation.

And the examples that there are, there are around 2,000 companies with a mission in France, 20 of which are large companies. A number of surveys have been conducted. Companies with a mission have a valuation graph that is equal or higher than that of others because there's no contradiction in terms between a short-term financial interest. that is important, of course, because investors are rightfully there to obtain a return and long-term value within French society based on much broader criteria.

So we had no second thoughts in choosing this status to create value going forward?

Yes, well, I won't repeat what Guillaume has just said, but the best example is the history of Orpea. Look at Orpea. Orpea, when you forget your values, when you forget what you're working for, the men and women who and our colleagues, patients or residents or employees and only work for the shareholders, you don't reach a situation where you end up destroying value for the shareholders.

As for the fact that I held shares, well, you're not entirely right because a few weeks ago, encouraged me to buy a few shares personally. But the thing is that I could not, prior to that, buy shares because I was an insider in a sense. And when the financial reorganization was made and now we're in a company that is much more normalized, I purchased some shares, and I think that was made public 2, 3 weeks ago. But I mean, you're right in substance, but I could not buy shares for 4 years for the reasons stated.

The gentleman with a white shirt would like to talk again and the gentleman with a red shirt behind him.

Hello, I'm the gentleman with a white shirt. It's beige actually. There was a point that was made about the fact that Emeis made EUR 1 billion of disposals in Q1. It was Isemia, the disposal of some real estate assets that has a significant impact on debt as was shown. But then, of course, it generates more rent, which is 8%. Is that -- is there going to be growth or an increase of that with inflation? Will that not weigh on operations?

While you still have to invest in the human aspect and other points.

Well, we created a real estate company, foncière. We took 68 real estate assets of clinics in France, Spain, Germany and placed them in a vehicle that we have called Isemia. And we brought in a minority shareholder for EUR 762 million with quite an original setup with a convertible bonds. And the advantage of this system is that the company remains 100% controlled by Emies minus 1 share. So there is no outside rent.

The state residences pay rent to Isemia. But then, of course, the EUR 761 million received were treated as a share capital -- minority share capital increased and will need to be remunerated in the form of a dividend. So you will see a dividend paid out to minority shareholders starting in 2026. But to answer your other question about the indexation of rent, the group pays around EUR 500 million in external rent. It's the gap between the EUR 760 million of EBITDA and around EUR 370 million of EBITDA.

And all of that is indexed on the average price index in the countries in which we operate. So up around 2% a year over the past few years. So 2% times EUR 500 million, an increase of around EUR 10 million per year.

A question off mic. Yes, of course, we could replenish that vehicle in the coming years. The agreements we have with both investors who are going to be contributing that money would make that perfectly possible.

Sir,[indiscernible] I'm not a shareholder because I'm not allowed to be. I'm not allowed to be. I'm a journalist at [indiscernible]. First, the disposal of assets and opening of new establishments. What will happen in 2026? Second question, preparation of the budget for 2027. And what about the PLFSS, the plan for the financing of social security. Do you have any fears of that?

And three, the various court cases made by Emeis against 3 of the former directors of Orpea. Could you tell us where the procedure stands?

Well, sir, you told us you're kind enough to say that you were not a shareholder, while the questions are reserved to shareholders during this general meeting. And we will try to answer because you've been very straightforward. I think your second question is more a press conference question than a general meeting. But then, of course, we know Frank. I think we would have recognized him anyway, even if he had not introduced himself.

So on the disposal of assets, I would say that in terms of volume, we are reaching the end of our disposals program. We still have a couple of establishments outside of Europe on which we're continuing to work to dispose of them. The amounts would remain relatively minimal compared to what we've already done. But in terms of management intensity and distraction -- management distraction, I think it's important for them to be disposed of.

For the openings, I would say that we're going to continue in the Netherlands, Germany, Spain, because in France, we need permits for openings and that these permits are granted in a very restrictive manner. So we're going to continue to invest. But again, the volumes will be quite reasonable. We've received -- we have around EUR 100 million a year in -- to invest in new developments.

For the preparation of the social security budget plan, I don't really have much to say. The proceedings have only just started. No letters have been sent out. But what the entire sector is worried about, of course, is a potential gap between a rise in inflation on the one hand and a rise in the budgets granted on the other hand because no sector can sustainably withstand an inflationary pressure without suffering. But then, of course, as we know that there's not much leeway in the government budget, what we are asking for and what we're working on with the authorities is simplification that might allow us to work more efficiently.

And that is what we're working on and notably with the group of 6, namely colleagues, both from the public sector from the nonprofit sector and from the private sector who have common interests across our professional sector without a -- whether the vision is unified. And we insisted there on 3 aspects: one, planning. We know that in our sector, notably for care homes and to a lesser extent, for clinics, we need to plan in the long term. We need to know where we're going. The main resource that's going to be lacking is employees. And therefore, we need to train, train and train. And we need to know how many people we need to train, and that requires medium-term planning.

Second, simplification. We live like any other sector. It's not specific to us. We live in a country that has a great number of standards and norms. Some are, of course, very useful and indispensable and others where they just make our work more complicated without particular advantages. So we're working on simplification with the authorities. And then another point is that we need to restore confidence.

And there must be more controls. The court cases, we told you about an improvement in quality, improvement in satisfaction. We feel perfectly comfortable to have people who either work with us or come and control our activity in the best interests of our patients. For the criminal cases, no news, no news of these court cases.

Just 2 little things for those of you who are in the room and who were not here last year or in previous years. You will remember that the company Emeis, filed a complaint versus persons unknown and versus persons known, namely on December 20, 2022, 3.5 years ago against Mr. Yves Le Masne, former Director General of the company, for facts that may be characteristic of various criminal facts, and there were other nominative court cases brought against other individuals.

And you may remember that the state prosecutor in Nanterre communicated about these court cases on very rare occasions. The last time was in January 2024, where just the judiciary indicated that the 2 people who had been remanded in custody had been released. That's the latest information we've received dates back to 2024. We are party to the procedure. We are continuing to monitor that. But then, of course, we cannot violate the secret of the investigation.

So as long as there's no official communication, we have nothing to say, which doesn't mean that we continue to believe. Madam, you had -- you started this. You're going to have the final word, and please keep it brief.

Earlier, it said anticorruption training. I wanted to know it. It's corruption of staff. Does that mean that corruption has existed? And second, anticorruption for whom, how and so on.

You're making a link between what I was saying and your question.

Hang on, hang on. I would like to know if by any chance, do you work like other trade organizations that get together to try and have a collective contract?

It's true for cemeteries. -- sorry to use that example. But there are federations that get together and say, okay, I pay for 30 spots in a graveyard.

Do you have federations or whatever? There are all sorts of groups or federations that would buy like 30 spots. Do you have that sort of thing? I thought it would be a pretty good idea for graveyards. And then we're there to take care of people. Well, wouldn't it be funny or nice? You'd have sort of before you die and then when you die. Yes. And something else. Mr. Guillot. So yes, I'd also made a note that you didn't have any shares, but you bought shares now. When did you buy them? And how many, if possible? No, he didn't say how many, and he didn't say when. And what it says here, it says that you're going to be given 114,000 if you do your job properly.

Yes. Thank you, Madam. So 3 questions, anticorruption. I think the cemeteries that is not really linked to what we do and then the shares. So anticorruption training, it's part of a broader package. When you join Emeis, you get all sorts of training sessions that are pretty conventional. Everyone needs to commit to comply. It doesn't mean that in the past years, there's been corruption within the company. It just means that everyone needs to be trained to face and prevent that. It's part of our obligations as is the case with all sorts of other training sessions. We are not linked to a -- we don't have a federation of customers or clients.

And for the shares, it was published on the AMF website. And to be honest, I can't really remember when it was precise. It's 2, 3 weeks ago, and I bought 5,000 shares.

Thank you very much. All of these questions were very interesting and relevant. Let us now move on to the vote of the resolutions over to Aulde, who will be managing the voting procedure. And if you have your voting boxes, please take them now.

So the final quorum, it has been reached, 67.17%, [107,980,674]for a total number of shareholders as announced. So these are the instructions for the voting boxes. 3 buttons for, against, abstain. I'm sure that you're familiar with the voting boxes.

So let us now vote on the following resolutions that are on the agenda. Resolution 1, approval of the financial accounts for the fiscal year ending at December 31, 2025. Net result, negative EUR 326,079,241.09. You may vote.

[Voting]

Vote is closed. The resolution is carried.

Second resolution, approval of consolidated accounts for the fiscal year ending December 31, 2025, consolidated net result group share RNPG, minus EUR 298 million. The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Third resolution, repetition of the result for the fiscal year ending December 31, 2025, loss affected to the carryover account. Vote is open.

[Voting]

Vote is closed. The resolution is carried.

Resolution 4, regulated agreements, approval of the special report from the statutory auditors for the extension of the engagement of execution taken by the company and a dispute against Mr. Laurent Guillot, the vote is open.

[Voting]

The resolution is carried.

Resolution #5, the renewal of directors' term of office. Mr. Laurent Guillot, CEO. The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #6, the renewal of directors' term of office for the Caisse des Dépôts et Consignations.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #7, renewal of the director's term of office for MACSF Épargne Retraite.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #8, renewal of the director's term of office for Mrs. Frédérique

Mozziconacci.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #9, appointment of Mr. Olivier Dussopt as Director.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #10, approval of the information mentioned experts on the compensation of corporate officers for the fiscal year of 2025.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #11, approval of the fixed variable and extraordinary items as part of the total compensation and benefits of any kind for 2025 given to Mr. Guillaume Pépy.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #12, approval of the fixed variable and special components of total compensation and benefits of any kind for 2025 and given to Mr. Laurent Guillot.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #13, approval of the compensation policy for directors and sensors for the fiscal year of 2026 in the ex-ante say on pay procedure.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #14, approval of the compensation policy for the ex-ante fashion for the Board Chair for 2026.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #15, ex-ante approval of the compensation policy of the CEO for the fiscal year 2026.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #16, ex-ante approval of the compensation policy of the Deputy CEO for the fiscal year 2026.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution # 17, the delegation of authority to the Board of Directors to increase the company's capital through the issuance of common stock and securities.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #18, the delegation of authority to the Board of Directors to reduce the capital.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #19, delegation of authority to the Board of Directors to increase the company's capital through the issuance of common stock and securities with maintaining the DPS.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #20, delegation of authority to the Board of Directors to issue through public procurement common stock and securities with a preferred right of subscription for shareholders.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #21, delegation of authority to the Board of Directors to issue through a public offer common stock and securities while suppressing the DPS with an optional priority delay.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #22, delegation of authority to the Board of Directors to publicly increase common stock and securities while deleting the DPS.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #23, delegation authority to the Board of Directors to issue the number of securities to issue to -- in case of an increase in capital while maintaining or eliminating the DPS or preemptive subscription rights.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #24, delegation of authority to the Board of Directors to increase the social capital in order to compensate with benefits in kind within the limit of 10% of the social capital of the company.

The vote is open.

[Voting]

The vote is closed. And the resolution is carried.

Resolution #25, delegation of authority to the Board of Directors to increase the capital in favor of the members. You have the floor for savings plan.

The vote is open.

[Voting]

And the vote is closed now. The resolution is carried.

Resolution #6 -- #26, delegation of authority for free purchase of shares with -- while eliminating the DPS.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Resolution #27, delegation of authority to the Board of Directors to increase capital in favor of members to corporate savings plan.

The vote is open.

[Voting]

The vote is closed. The resolution is carried.

Thank you very much for voting. We've heard the jingle 28 times. This is quite difficult, I have to say. Thank you for voting. We have reached the end of our agenda. But on a more personal note, I did not want to ask your general meeting to renew my term of office.

This has been the privilege to chair the works by the Board of Directors in the past 4 years while helping the company recover, rebuild itself while helping patients and employees. But now a new chapter is opening.

I'd like to extend my warmest thanks to the directors who are present on your behalf and on my personal behalf because as you can see, the mission of directors is quite rigorous. It requires a lot of work from directors. And I'm glad to have chaired a Board of Directors where we actually debate, we discuss the matters at hand. I also wanted to extend my warmest thanks to the Executive Committee, the Supervisory Board as well as Laurent Guillot.

They've been doing an extraordinary work where we add up all the actions taken to rebuild the company from an ethical point of view and in a sustainable fashion. This was a colossal work. And since there are employees' representatives in this room, I would like to show how grateful I am of the 86,000 people working at the headquarters or in our facilities. Every time that I met them in the field, in our facilities, I've met with people that are extremely engaged, involved. They want to do their job well, and this hard job is dear to their heart.

And I think I can say on behalf of everyone that their daily work deserves our recognition and our respect and the respect of our society as a whole more broadly. And I would like to thank you, our shareholders. Your life hasn't always been easy as shareholders. But in the past 4 years, you've shown me or you've shown the Board of Directors restored confidence. So thank you very much, and thank you for taking part in the general meeting. It's always very interesting because there are good questions that are being asked, and we try to be as transparent as possible. Thanks for listening. And have a good day.

Thank you, Guillaume. I cannot let you close this general meeting without myself saying a few words to thank you for these 4 years we spent together. I mean all of us within the ExCom of the Board of Directors and all of our colleagues at Emeis. You joined the company at the toughest time at a moment when the company was going through one of the most difficult periods of its history and probably one of the most difficult period for all sorts of companies in France, and it was probably the worst.

And we were really in the eye of the storm. There weren't many of us, and we had to face huge challenges, loss of confidence that was absolutely dreadful. And you decided to come on board, and that was a greater contribution, your career in the service of the general interest, your status, your reputation very quickly restored confidence both inside and outside the company at the moment when it needed it most. You helped us to find our bearings to make progress towards rebirth at a time when it was particularly necessary.

You were there with us in difficult times, always very demanding, always hugely intelligent. I really enjoyed the quality of the advice you provided in the manner in which you always encouraged us and supported us. The refoundation of Emeis was a collective effort, is a collective effort. You are very much involved. You took your share, and I would like in front of all of these shareholders and all of our colleagues and all of the Executive Committee, Board of Directors to thank you very warmly for what you did.

Thank you for your commitment, for your trust and for everything you contributed to Emeis. Thank you very much.

Thank you. Thank you for coming. Take care. And you -- there might be a slight shock with the outdoor temperature when you walk out of this room.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning, and welcome to the emeis Q1 2026 Revenue Conference Call hosted by Jean-Marc Boursier, Deputy CEO; and Samuel Henry-Diesbach, Head of Investor Relations and Capital Markets. [Operator Instructions] I will now hand over to the management team. Gentlemen, please go ahead.

Thank you. Good morning, ladies and gentlemen. We are very pleased, Samuel and I to welcome you for this quarterly presentation regarding emeis' Q1 sales performance review. During Q1, the upward trend in occupancy rates continued. With the average occupancy rate rising by 2.1 points, very favorable momentum observed since early 2023 shows no sign of slowing down and on the contrary, is keeping a strong pace. The average occupancy rate now stands at 89.1%, an increase of more than 2 points year-on-year and more than 4 points over the past 2 years. This trend is particularly favorable, as you will see, in nursing homes and more specifically in Germany, in Southern Europe, in Central Europe, but good news also in France. And as a matter of fact, occupancy rates are improving across all regions where the group operates.

If you are following this presentation on our website, I'm on Page 3 now. It should be noted that we have adjusted the way we break down our revenue by region in our financial communication. Since we have begun the process of divesting our operation in Latin America, and we have already significantly reduced our exposure to non-European regions, we deemed it appropriate to revise our geographic breakdown. The other countries category will now only include operation in China and South America. This category is expected to be phased out gradually. The Northern European region now include United Kingdom and Ireland in addition to Germany, the Netherlands, Belgium and Luxembourg.

The Central European region will now include Poland in addition to Austria, Switzerland, Croatia and Slovenia. And the Southern European region will no longer include LatAm and will therefore only comprise Italy, Portugal and Spain. The increase in occupancy rate, as you can see on this slide, is true everywhere, but more particularly pronounced in Central and Southern Europe, where we are now back to pre-COVID levels, I mean, greater than 90%. In Northern Europe, the trend is also very pronounced despite the temporary difficulties encountered in Ireland.

Let's now focus on Slide 4 on our two markets, France nursing homes and Germany. In both of these markets, the momentum is very strong and show no sign of slowing down, as you can see on the left-hand side of this slide. In France, the occupancy rate has risen by 3.6 points. While this increase in particular is strong, it should be noted that nearly 1/3 of it comes from a change in definition, the removal from the total number of beds of those that are not marketable. On a constant bed count basis, the occupancy rate would have still show a strong increase of 2.4 points, an evidence of the continued very favorable momentum in France. In Germany, our performance is still not fading out. The occupancy rate is up by 3.4 points year-on-year, and that is more than 6 points over 2 years and 9 points over 3 years. Despite the strong performance already recorded in both countries, we are very confident that this growth will continue in the next quarters.

Slide 5. At EUR 1.509 billion, our revenue showed a significant increase in Q1, up 6.3% on an organic basis, a rate comparable and even slightly ahead of the growth recorded in 2025. Here, too, the momentum shows no sign of fading out and the factors that drove our strong growth in 2025 continue to support our performance in 2026. This increase indeed reflects a combination of three factors, which are all trending positively. First, a positive price effect, supporting organic growth in the first quarter by 3.9%. This contribution even exceeds the impact recorded at the end of 2025. If you remember, the price effect in 2025 was plus 3.3%.

Second, an increase in the average occupancy rate at the end of March, contributing to plus 1.6% to organic growth; and third, the impact of recently opened properties, those opened in 2024 and '25, whose ramp-up contributes 0.7% to organic growth, primarily in the Netherlands and Spain. Please note also that the negative perimeter effect relates to the disposal that mainly to the disposal of our Czech activity in March '25 and to the disposal of our French senior housing activities in November '25.

On Slide 6, the analysis by business segment. Retirement Homes performed the best with organic revenue growth of 7%, reflecting improved occupancy rate across all regions and the capture of significant price increases in many markets. This strong performance was further accentuated in certain markets by ramp-up of new facilities, notably, as I said, in Spain, Portugal and in the Netherlands. Note that this also reflects the benefit of enhanced health protocols, which helped contain a particularly virulent flu season and thus contributed to the solid performance posted in Q1. But we are also very pleased by the performance of the clinic activity, which growth rate is plus 4.9% organically.

This growth reflects, first, the hard work of our team and the corrective measures taken by the group to get us back on track after a rather disappointing Q1 in 2025. We are pleased to see that the effect of those measures have improved the performance. But this also reflects a base effect and the impact of one -- nonrecurring one-off item in France, positive one-off item, which are improving this growth. And this is fair to say that the pace of organic growth should naturally slow down a bit going forward in 2026 even if our operational performance should continue to meet our encouraging expectations.

On Slide 7, you have the growth revenue by regions. Organic growth reached significant levels across all geographic regions. In France, organic growth is 4.8% and even 7.1% for clinics. In clinics, this growth is particularly driven by favorable base effect and the nonrecurring item I was mentioning, but it also reflects the sequential improvement in our performance quarter after quarter, thanks to the measures taken in 2025, following a first quarter last year that fell short of expectation, particularly regarding private rooms. And we're happy to see that the performance has largely recovered and is now back in line with our ambition.

In all other three regions, organic growth is around 8%. In Northern Europe, beyond the German performance that I have described, please note that we were also very pleased with the growth in the Netherlands, notably driven by new facilities that we have recently opened in the country. In Central Europe, we notably enjoyed strong occupancy growth in Austria and Poland. And in Southern Europe, we are back on track to pre-COVID levels in Italy and Spain.

One word on Slide 8 on our divestment plan. As you know, we have achieved our divestment plan at the end of last year, but the first quarter of 2026 remains significant in this regard. We received EUR 815 million, largely from the Isemia transaction that we have finalized mid of January for EUR 761 million that you know about. On the top of Isemia, please note that we have cashed in also EUR 54 million from real estate disposals during the quarter, 62% of which came from sale and leaseback transaction with an average yield of 4.9%. This divestment primarily involved real estate assets located in Switzerland and in France, and those divestments have enabled the group to generate EUR 12 million of profit on disposal in Q1.

I will conclude this brief presentation by confirming our guidance for 2026 as well as our medium-term outlook. The strength of our business since the start of the year reinforces our ambition to achieve an EBITDA growth of at least 10% in 2026 on a like-for-like basis. And you remember that this guidance equates to an average growth since 2024 of at least 15%, which is close to the upper end of our medium-term guidance which anticipates an organic growth in EBITDAR between 12% and 16% between 2024 and 2028, again, on a like-for-like basis.

Thank you very much for your attention. And now with Samuel, we are totally available to answer all questions you may have.

[Operator Instructions] We have a question from Aleksander Peterc from Bernstein.

I just have two quite simple ones. The first one is on your strong revenue growth in Germany. Nursing homes is close to plus 10%. Could you explain or get into more detail on what was behind this acceleration and how sustainable you think this is, will we get to pre-COVID occupancy in Germany faster than previously thought despite what I think are still unfavorable demographics at present? And second question on the French clinics. You had a very strong growth there at just over 7% with some contribution of some one-off items. So should we think about the underlying growth of being 5% and that will fade in the remainder of the year as comps get more demanding? Is that the right way of looking at it?

Thank you for your two questions, Aleksander. The performance in Germany is the double impact of an occupancy rate and price increases, occupancy plus 3.4% and the vast majority of the rest to 8% is related to price increases. Do we believe that the demography will play an unfavorable role in the years to come? Not at all. We are totally convinced that after what I would consider as a superb quarter in Germany, we shall be able to continue on the same pace.

On the French clinics, yes, I will dig into a little bit more detail regarding this one-off that you will easily understand. The privileged information regarding tariff increase for said year is given to us very, very late. And the last tariff increase in France related to 2025 was given to us in April. At that point in time, the 2025 year-end books were closed. So we booked this tariff increase in 2026. This tariff increase -- the last tariff increase amounted to EUR 9 million that, as I said, we booked in Q1.

So that represents 1.8% contribution to the growth of the whole clinic activity worldwide. So the 4.9% organic growth in the clinic activity would have been 3.1% without this last increase that, again, was given to us by the French state so late that we decided to book it the year after.

I have just one quick follow-up. So when you say 1.8% contribution was the one-off for all clinics, was that only in France? And therefore, what would the French clinics look like if you strip out this 1.8% for the group overall?

Yes. This is a pure French impact. The French activity for clinics is around EUR 300 million. So this EUR 9 million means an increase of 3% from the growth in the French clinics. So the 7.1% that we have disclosed would have been 4.1% roughly without this one-off. Still very healthy.

Now we have a question from Constantin Gumenita from Caius Capital.

Can you please just follow up on the last question? Maybe if you can provide a little bit more color when you look at France, in particular, both nursing homes and clinics. What sort of price increases did you see organically during the quarter?

It's difficult to give you a generic answer. What is most important is the nursing home activity within the nursing homes last year, we had also the French senior activity, senior housing activities that has impacted a little bit the comparison. But to give you a straight answer, Constantin, the average increase in tariff on the French nursing home market in Q1 was around 1%. So slightly above the 0.89, if I'm precise, indexation that we have received from the state. So slightly above that amount. If inflation were to continue in Europe, it could well be that we would increase the price again for new residents throughout the year. But to answer your question, the tariff increase on average on the French nursing homes market was around 1% in Q1.

And within clinics, is it comparable what you observed?

It's a little bit more.

Okay. Got it. And generally, a separate question. Generally, when I look at the numbers, 6.3% organic growth, it seems to be quite well ahead of the midterm guidance of 4% to 5% you've given, which is very encouraging. At the same time, the EBITDAR guidance of at least 10%, you've sort of retained, but should we read this as that you will likely well exceed that target? Or is there any sort of -- anything that would stop you from getting there?

It's too early to come back to the guidance. We usually give it to you only a few weeks ago. But to answer your question in a different manner, have we been pleased with the performance in Q1? The answer is yes. It is a significant and a good quarter for us. So it reinforces our confidence in our capacity to reach the 2026.

[Operator Instructions]

If there are no further questions, thank you very much for your attendance this morning. And obviously, in the next few days and weeks, Samuel and I will remain at your disposal. Have a very pleasant day. Bye-bye.

Ladies and gentlemen, welcome to the emeis conference call regarding its full year 2025 results. It will be structured in 2 parts. First, a presentation by emeis management team represented by Mr. Laurent Guillot, Group CEO; and Mr. Jean-Marc Boursier, Group CFO. Afterwards, there will be a Q&A session during which you can ask oral or written questions. I will now hand over to the management team. Gentlemen, please go ahead.

Well, thank you, and good morning to everyone, and thank you once again for attending this webcast for our full year earning '25. Before answering to your question with our Deputy CEO and CFO, Jean-Marc Boursier, we will share with you a few thoughts regarding this year 2025 and 2026. I will begin my presentation by reviewing some of the group's key characteristics, which many of you already are familiar with. First, I would like to highlight the geographic diversification of our operation, which includes France, Northern Europe, Germany and Netherlands, Central Europe, Austria, Switzerland and Southern Europe, Spain and Italy.

Next, our business diversification with 2/3 of our revenues generated by nursing homes and the remainder by post-acute care clinics and psychiatric clinics. And finally, our shareholder structure, which is built for the long term around solid and reputable [ anchor ] shareholders. It is also important to note that our group also distinguishes itself through its significant real estate portfolio, which is worth EUR 5.6 billion by the end of '25. 44% of the beds we operate are owned by the group, a figure that, to my knowledge, is unmatched among groups of comparable size. And our portfolio is also geographically of real estate is well distributed in Europe. As we previously reported in mid-February, 2025 was a particularly strong year. In '25, the company delivered strong performance with revenue growth by over 6% on a like-for-like basis and occupancy improving by nearly 2 points.

Profitability also increased significantly with EBITDA margin up by 19.2%, reflecting sustainable positive momentum. Cash flow generation improved sharply with net operating cash flow rising from EUR 15 million in '24 to EUR 190 million, highlighting a strong operational recovery. Free cash flow reached EUR 347 million, driven in part by substantial asset disposals. Since '22 -- mid-'22, total disposals have reached now EUR 2.35 million (sic) [ EUR 2.35 billion ], exceeding by far initial targets. However, the one that are following us the most closely, this figure is slightly lower than previously reported due to the decision not to proceed with the sale of Swiss nursing homes operations following an internal strategic reassessment.

The company also strengthened its financial position by refinancing its entire bank debt by EUR 3.15 billion in new financing, improving visibility and stability. Consequently, the leverage ratio dropped significantly to below 10x compared to 19.5x the previous year. Looking ahead, the company is confident about its growth prospect starting in '26, expecting average annual growth of at least 15% between '24 and '26, including over 10% growth in '26. Medium-term guidance for '24, '28 is reaffirmed. Our operational performance is driven by improvement in our CSR KPI. In '25, we continue to enhance all our quality and satisfaction metrics, reaching levels that now place us among the industry leaders. Regarding human resources metrics, please note that employee turnover while still high, has once again declined significantly this year.

We warmly welcome this since this is a key support for quality in our facility and thus occupancy. Also, a new indicator has been launched this year, the engagement rate of our employees starting at a relatively high level of 62%, well over global market average. On the climate front, energy consumption has also fallen by nearly 9% year-over-year, which is also a positive for our energy bill. In '25, indicators relating to the satisfaction of our patients, residents and their relatives have improved significantly once again. The resident satisfaction measured in '25 in the French facilities now stands at 93.4%, up 50 basis points compared to '24 and more than 3 points above the comparable level in '22. Same message when considering the Net Promoter Score, which also measures the satisfaction and loyalty of residents, patients and their beloved ones. It has also risen sharply now reaching the score of 41 in '25, up 4 points from '24 and 23 points from '22.

This significant improvement illustrates the successful measures taken in recent years to restore the confidence in the group. As you already know, in France, our facilities are rated by Haute Autorité de Santé, the French National Authority for Health in the same way as all other facilities in the sector. These ratings are divided into 4 groups based on quality assessments. 99% of emeis facilities are on the top 2 categories. It is significantly higher than the sector average and even higher than the private sector as a whole.

It is a mark of distinction and illustrates emeis leadership in this area. We are also pleased to see that the improvement in all these metrics is reflected positively through extra financial ratings. Emeis is now ranked above the industry average on nearly all metrics and is even among the best-in-class according to S&P and Sustainalytics rating, but there is still more to come. In our view, the steady process -- progress you see in this chart is not over and should continue in the years ahead. The steady improvement in our extra financial performance in terms of quality of care, patient satisfaction, resident satisfaction and human resources continue to translate into an annual increase of our occupancy rate. In '25, this rate rose by nearly 2 points across our nursing homes. And since '21, we have seen an improvement of nearly 7.6 points and it's not over.

Mechanically, this growth translates into the revenues that is largely translated into operating margins. Thanks to the work done on quality and capturing a favorable price effect on accommodation and on segmenting our offering, we have been able to boost our revenue growth. By controlling operating expenses, adapting methods and tools and focusing management efforts on turning around underperforming facilities, we continue to optimize our operating performance.

Our revenue growth in '26 was 6.1% like-for-like or nearly 15% over 2 years. And at the same time, our EBITDA margin increased far quicker by 58% like-for-like in 1 year and even 90% in 2 years. And you can trust our midterm target, it's not over yet. There is much more to come ahead, as I already said. As we already told you mid-February, we have exceeded our initial guidance for '25 with like-for-like EBITDA growth of 19%. We are EUR 10 million to EUR 30 million above our initial target. And as already said, it's not over. We are happy to share with you the fact that these encouraging achievements lead our figures to grow comfortably in line with our ambition, confirming that we are now in the right path. It's now fair to say that this set of figures is a good milestone on the road to an embedded recovery that confirms our confidence for the years ahead.

We can be confident this positive momentum will continue in 2026 with an EBITDA expected to grow at least by a minimum of 10% at constant perimeter. This means that from the end of '24 to the end of '26, we do expect an average growth rate -- CAGR of more than 15% per year at constant perimeter. Although the global environment seems relatively unpredictable these days, especially regarding inflation pressure that could arise from energy price today, we are relatively confident energy expenses are limited in our P&L and very largely hedged. So this -- the performance we do expect for '26 bang in line with the high side of our midterm outlook by '28. The momentum is set to continue ahead.

I will conclude my introduction before handing over to Jean-Marc with this list of the major issue and challenges we had to address and we addressed in the last years. It is clear that we have now made significant and positive progress and that the main achievements are now complete or on the way to be completed. The disposal plan has been largely exceeded now reaching EUR 2.35 billion. The structure of our balance sheet has been considerably strengthened this year in '25 and very beginning of '26. Our debt ratio has already improved dramatically, but there is still more to come ahead. Occupancy rates have risen sharply already, but they should continue to grow significantly in the coming years and especially in '26.

And we are halfway there in terms of operating margin, which have grown over the last 18 months and will continue to do so ahead. On top of that, our company is also supported by favorable trends in real estate market valuation. This year is, therefore, a stepping stone and the road again is full of promise and harnessing further value is yet to come ahead. Our focus will now be on continuing this operational improvement trends further ahead, relying on attractiveness, quality and financial results improvements.

Jean-Marc Boursier, our Deputy CEO and CFO of the group, will now outline in detail the main elements of our performance for '25.

Thank you, Laurent. Good morning to all. We are pleased to present our 2025 financial results to you today, the key highlight of which we already shared with you on February 17. I will be brief on certain topics we have already discussed earlier this year. In my introduction, I will briefly touch on 6 points. First, our revenue, which continues to be a positive trajectory driven by both occupancy rates and favorable price effects. At group level, performance is particularly strong in the nursing home segment. Second, operating margin is rising sharply. EBITDA is up 19% on a like-for-like basis and EBITDAR is up 58%. This is the result of our very effective control on operating expenses and external rent, and this is not fading out in H2.

Third, net present group share remained negative at minus EUR 298 million. However, it increased by EUR 114 million despite higher nonrecurring expenses related to exceptional transaction that we carried out in 2025, such as the refinancing of the group and the setup of Isemia real estate vehicle. Fourth, all cash flow indicators are showing a very strong growth. Net operating cash flow improved significantly from EUR 15 million last year to EUR 190 million this year and free cash flow increased even more, now reaching EUR 347 million versus minus EUR 298 million a year ago, which represents an improvement by more than EUR 600 million. Fifth point, net debt is decreasing in 2025 and even considerably so when taking into account the Isemia transaction, which has been finalized on 14th of Jan. The reduction then reaches EUR 1 billion in 1 year. And sixth and final, as a result, the leverage ratio improved significantly, as said by Laurent, now standing at 9.9x, where it was nearly 20x a year ago, and this improvement will continue in the coming semester.

I will be relatively quick on that slide regarding revenue as we already commented this element earlier this year. Sales posted substantial organic growth at plus 6.1%, very similar to the one published in H1, driven by a combination of 3 factors: first, a positive price effect of plus 3.3 points; second, occupancy rate effect, plus 1.8%; and finally, the effect of the ramp-up of facilities that we've opened in 2024 and 2025, which brings a further 1% growth. This favorable growth trend can mostly be observed on nursing homes, for which the annual growth is plus 8.1%, whilst clinics have been more muted, only up 2.5%, but I will show you in a minute that we have very encouraging signs in that segment also.

We can see on the next slide that revenue is growing internationally very strongly, particularly in Northern and Southern Europe, less so in France. In Northern Europe, momentum is particularly strong in Germany with both a favorable price effect and occupancy rate that continue to grow significantly. In Spain and in the Netherlands, recent openings, which are gaining momentum are accentuating an already favorable revenue trend. The momentum has been supported by the group improvement in occupancy rate. On average, it rose by 1.8 points to 87.6% versus 85.8% at the end of 2024, continuing the gradual recovery in this aggregate that you can see on this slide for the last 3 years.

As you can see, the recovery was mainly driven by nursing homes, where the average occupancy rate rose by 2 points to 87.2% and even plus 5 points when considering the comparison between 2023 and 2025. Although solid everywhere, the increase in occupancy rate has been particularly important in Northern Europe and in Central Europe. Although we remain still below our medium-term ambition, we are happy to see that this supportive momentum continues. And I can confirm to you today that the year 2026 has started on the same encouraging path.

As you can see on the next slide, the performance on revenue is flowing nicely to operating margin. Staff costs have been reduced. Staff cost and sales have been reduced, reflecting the measures that we progressively implemented during the last 12 months to optimize the allocation of our human resources. At the same time, we also benefited from the initial effect of our cost rationalization measures launched in H1, which has led to a reduction in the intensity of other costs, mainly procurement as well. I'm very confident that those 2 cost components, staff and OpEx can be further improved in the years to come. And as a result, these measures are enabling us to maximize the conversion of revenue growth into operating profitability.

In H2 only, EBITDA margin reached 15.8% and EBITDA margin 7.4%. When we break down the EBITDAR growth, we can see that the main contributor of the growth are France and Northern Europe that is mostly driven by Germany and the Netherlands. Not only do those 2 regions account for the largest contribution to EBITDAR in million of euro, but they also have the highest growth rate on a like-for-like basis. And as you can see on this slide, EBITDA growth in Northern Europe was nearly 30% versus 2024 and in France, nearly 15% year-on-year.

If we look at H2 versus H1, what can we see over the 6 months period, we can see that this momentum shows no sign of slowing down at all with a 6 months increase in EBITDAR of 19%, again comparing H2 versus H1. It is worth noting that this momentum even appears to be gaining strength in France, particularly thanks to nursing homes, whose performance has been significantly improved since mid of 2024. The positive dynamic in revenue, therefore, largely flew into margin. In euro terms, the positive upside in sales of EUR 259 million versus last year was largely transferred into EBITDAR plus EUR 132 million and then into EBITDA plus EUR 135 million given efficient rental management, another evidence that the operating leverage to the upside is strong and should continue to be supportive again ahead.

If I go into a little bit more detail for the rest of the P&L, I would like to highlight a few points. First, to remind you that the growth in EBITDAR is partly attributable in 2025 to capital gain from the sale of PropCo assets for nearly EUR 64 million in 2025 compared to EUR 28 million in 2024. This is due to the particularly high volume of PropCo disposals that we have finalized this year. However, you can see also that organic EBITDAR growth even after deducting those capital gains remained at 15%, which also aligns with the pure operational momentum we expect to see in 2026 and beyond.

Thanks to the effective control of rental expenses, EBITDA before IFRS 16 is up EUR 135 million or 58.3% on a like-for-like basis. EBIT is growing strongly by EUR 171 million, now reaching EUR 173 million versus only EUR 2 million last year. This is mainly due to the decline in amortization. But please note also that we have recorded some depreciation, especially in France. This depreciation amounted to EUR 42 million and resulted from a balance sheet cleanup.

When breaking down the financial statement to net income, it should be noted that nonrecurring expenses rose significantly this year by plus EUR 86 million. This is a direct consequence of certain exceptional transaction that we finalized in 2025, notably related to the refinancing that we announced on December 18 and the creation of the Isemia real estate company finalized in January. New depreciation and nonrecurring expenses have limited the improvement in net income group share, which nevertheless rose by a considerable EUR 114 million to minus EUR 298 million. The net loss per share have therefore been reduced to EUR 1.9.

Regarding now the cash flow statements, I would like to highlight a few points that contribute to a very strong improvement of all our cash flow aggregates. First, an effective management of maintenance CapEx and IT investment. Please note, however, that these components are expected to grow moderately over the next few years to modernize our IT system and to optimize our operational efficiency.

Second, an exceptional financial expense of approximately EUR 23 million corresponding to upfront fees related to the refinancing. And if we exclude these upfront fees, please note that the recurring free cash flow is now turning positive in the second half of the year for EUR 20 million, and this is a very significant milestone symbolizing the normalization of the group. Third element, development CapEx continued to decline in line with the pipeline progress and given the higher return requirements now needed for new operation launched. And let me be clear, we will continue to be extremely selective in the coming years.

Fourth element, the significant contribution from disposal amounting to EUR 602 million in transaction for both OpCo and PropCo that we closed in 2025. And as a result, as I said earlier, our free cash flow is now positive and stands at EUR 347 million, representing an improvement of EUR 645 million in 1 year. And if we include the Isemia transaction that was finalized on January 14, which brought an additional EUR 703 million of new liquidity, it means that emeis group was able to reduce its net debt by almost EUR 1 billion in 1 year.

The next slide illustrates the 3 key drivers behind the improvement in free cash flow. First, the improvement in operating margin, which has already been commented. Second, the sharp acceleration in disposal in 2025 on an unprecedented scale compared to previous years. And please note that EUR 216 million of signed transaction remain to be cashed in today. And finally, [indiscernible] in capital expenditures, particularly for development CapEx, which are now limited to the most promising project and the shortest payback. Across all cash flow indicators, trend continue to be very favorable.

The next slide illustrates perfectly the continuous improvement in all of our aggregates, which we expect to see continuing in the coming years. All cash flow, as you can see, have now turned positive and the momentum does not seem to be fading out. As a result of everything we said today with Laurent, emeis financial structure has continued to strengthen significantly this year. Net debt, excluding IFRS 5 and 16 has decreased by almost EUR 300 million in 1 year at EUR 4.5 billion. And if we consider again the Isemia transaction closed on January 14, it brings pro forma net debt down by EUR 1 billion since December. Net debt pro forma is down to EUR 3.8 billion, a massive decrease booked thanks to the important volume of disposal achieved, but also thanks to operational margin improvement.

And as a result of both information that we shared with you today, operational improvement on one hand and the net debt reduction on the other hand, you can see that the group leverage ratio has significantly been reduced from 23x in H1 '24 to 19.5x at the end of '24. It now reaches 11.8x and even 9.9x pro forma Isemia. This leverage ratio is already well below the covenant that we have agreed with banks and debt investors for 2026 that is at 12x. An illustration of this embedded improvement is that we forecast with confidence, we anticipate this ratio to fall below 6.5x before the end of 2029. This target being the debt covenant that we have agreed through the refinancing of the group that we've achieved in December.

One word about the refinancing. We have refinanced the whole bank debt of [ emeis SA ]and this has enabled the group to raise EUR 3.15 billion of new debt under favorable condition. I remind you the condition, which is Euribor 3 months plus 247 basis points cash or plus 363 basis points, including PIK. The new debt, including a new EUR 400 million bond has fully refinanced the former A, B, C, D financing and have largely enhanced the debt maturity profile of the group, as you can see on this slide. And as a consequence, emeis early exited the accelerated safeguard plan on February 20. We are now comfortable today saying that emeis is now back in a situation that can match our ambition for the future with our priority now being clearly on pursuing the improvement of our operational performance ahead.

Thank you for your attention, and I will now hand over to Laurent once again to conclude this presentation.

Thank you, Jean-Marc, for these very clear explanations. And before answering the questions you may have, I would like to conclude this presentation with the key elements I would like to summarize in 6 points. First point, the positive trend on top line continues with a strong organic growth of 6.1% and even 8.1% on nursing homes, improvement on quality and satisfaction metrics largely contributed to this performance. Second, the strong momentum on operating margins, up 19% for the EBITDAR and 58% for the EBITDA is mostly driven by the outperformance locations of France and Northern Europe. This momentum didn't fade out in H2 and is set to continue ahead in '26. All cash flow components are largely improved and more is still to come.

Third, our EUR 1.5 billion disposal target before end of '25 is now largely exceeded with EUR 2.35 billion now achieved or secured. Now that the disposal plan has been largely exceeded and that the group financial structure has been substantially strengthened and now emeis operating performance continued to show a positive trend quarter after quarter, the group intends from now to be particularly selective regarding any further disposal in the coming years. Four, disposals, improvement of operating performance have strengthened our financial structure with a pro forma net debt of around EUR 3.8 billion, decreasing EUR 1 billion and a leverage ratio nearing now 9.9x versus 15.5x end of '24, as Jean-Marc said, while our debt maturing schedule is now largely reinforced.

Fifth, real estate valuation may have bottomed out after several years of adjustments, around minus 25% approximately, raising confidence that the valuation cycle should now be more supportive ahead along with improvement on operations. And sixth and finally, we do confirm our guidance for '26 -- expectations for '26 to grow at least by 10% at constant rate, which corresponds to an average growth rate of 15% for the period '24, '26.

Thank you for your attention, and we are now available with Jean-Marc Boursier to answer the questions you may have.

[Operator Instructions]

Okay. If there is no question verbally, let's go to the first question, written question. First one, [Foreign language] an update, may we have an update on occupancy rate at the beginning of '26. The answer is no, we will have the communication in a few weeks from now. I can just give you an overall trend. The trend continues to be the same, pretty bang in line with what we've experienced in '25. So continue to be a very good momentum for operation, especially in France and in our nursing homes in France. We have not suffered and we have taken all the measures in our nursing home. We have not suffered from the flu that happened at the end of '25 or the beginning of '26. So we are pretty much in line with our targets and rate with very similar to the trend we experienced in '25.

Can you describe the assets that will be sold at the beginning of -- in '26 with impact on the balance sheet and on the cash compared to the situation described at the end of '25? Jean-Marc, do you want to comment on this one?

Yes. We still have a little bit more than EUR 200 million that will be cashed in, in 2026 and this mainly relates to PropCo disposal in Switzerland, in Ireland, in France value segment. No transaction in my suggestion is very significant but all it amounted to a little bit more than EUR 200 million and most of that will be cashed in, in the next...

[Foreign Language] Can we have the number of headcount at the end of '25? We will take note of that question. It's around 80,000 people. But the exact number we will answer to you directly.

Can you list in detail the nonrecurring items of '25 and share the elements of the nonrecurring elements of '26? Well, for sure -- Jean-Marc will answer in detail to that question. For sure, in '25, we had some restructuring. We had some costs that were linked to the refinancing that were quite significant also and all that will disappear in '26. So we will come back to a more normal level and a more normal level is probably between around EUR 40 million, EUR 50 million for '26. So Jean-Marc, for '25, if you can give more detail?

The nonrecurring components in 2025 amount to EUR 126 million, abnormally high and nothing compared to last year from '24 and nothing compared to the current year where you will see these nonrecurring elements to be normalized. It's relatively easy to understand this EUR 126 million is almost 50% related to specific project that we have undertaken in 2025, the 2 largest that you know about the refinancing on the group on one hand and the setup of the real estate vehicle Isemia that we have created. And 50% of that amount is some depreciation of asset that we have recorded related to some facility that we have decided to close notably in France, Belgium and Germany. Net of the profit and disposal that our sales averaging [indiscernible]. So 50% project cost, 50% depreciation, but this amount this year will be much different, much lower in 2026 and going forward.

Another question, can you give a little bit more details on the growth in Northern Europe? Well, we experienced in -- as a matter of fact, we experienced growth in all the geographies we are in Northern Europe. The biggest country in Northern Europe is Germany, and we have a very nice recovery both in terms of nursing homes with a strong improvement of occupancy rate, but also in clinics. In the Netherlands, most of the activities are in nursing homes. And we benefited a lot in '25 of, I would say, a very strong recovery of one of our 2 business models, but the dynamic in this market continue to be quite strong on the occupancy rate point of view, and we were suffering a little bit in '24. We have a strong recovery in '25, and we continue to enjoy that in '26. And the last market in Belgium, where, as you know, we had to restructure a little bit these activities on the top line. We had a top line that was suffering a little bit in the last 2 to 3 years. But on the opposite, with a good recovery on the bottom line, which is not at the level it should be.

Thank you for the call. What is the reason -- another question, sorry, what is the reason why you do not sell the OpCo in Switzerland. We are talking there in terms of nursing homes in Switzerland. What is clear is that the situation now is following. We have launched in '24 a lot of potential disposals, both in terms of real estate and in terms of OpCo. And to be sure to be able to reach our target of EUR 1.5 billion disposal, we've sold and we've launched several processes at the same time. Now we are in a very different situation where we have structurally and we say definitely reinforced our financial structure and we can be more selective in the disposals that we are making.

So we reassessed the strategic rationale of these disposals. And you know what, I think that being diversified in terms of countries in a world where we have uncertainty in terms of regulation and budgets and state budgets, I think is a good thing. So we've decided not to sell the nursing homes in Switzerland. Another question, do you expect to hedge a larger share of your debt, Jean-Marc?

Yes. Our strategy is clearly to hedge a significant proportion of our debt. Our debt was launched fully at variable interest rates. For your information, we have already hedged EUR 1 billion out of this EUR 3.15 billion that we launched late in 2025. So we are in this process of hedging the debt, and we expect to have a higher proportion of the debt that will be hedged going forward respectively.

Two questions. What is the target EBITDA margins pre-IFRS of 2029, 2030? We have not given any guidance in the past in that respect. At the same time, we have given a guidance in terms of EBITDAR growth over the next years on the '24, '28 period with a growth rate of 12% to 16% in average over this period, which then give you the opportunity knowing the rents that we have, give you the opportunity to make your own estimate on EBITDA and EBITDAR margin. What is the target returns for the development CapEx, Jean-Marc, do you want to share with me the question?

Yes. For development CapEx, we are targeting new facilities with [indiscernible] which is lower or at least 5 years after construction. So this is our objective. And that enables us to be very selective going forward. So we expect to invest in development CapEx between EUR 100 million and EUR 130 million per annum going forward. That's the order of magnitude. And that would mean probably opening something like 1,000 to 1,500 new beds per annum. So we expect going forward, the increase in revenue to come by something like 1% from new bed openings. But our objective in terms of payback is at maximum 5 years as per construction.

Okay. Whether other countries EBITDA has been weak in H2 versus H1. Why? Well, we suffered a lot from the situation we have in Ireland, where given the request in terms of further staffing from the authorities have led us to a significant reduction of the EBITDA performance. We are definitely working on this topic with the management to turn around this country.

What has to happen for dividends or buyback to begin? We first have to be positive in terms of net profit for sure. This is definitely something that we are contemplating for the next years, but we are not yet in the situation for the time being. By the way, we need to be also given the documentation, the financial documentation that we have, we need also at the same time to be below 7.5x EBITDA in terms of net debt-to-EBITDA ratio to be allowed to pay dividends.

Another question on the board page. How did the Board choose Olivier Dussopt? Well, first, we have to say that Guillaume Pepy that was -- that is our President today has decided not to continue and do something else for the future. So the Board had to find someone. It's also at the same time, a new phase for the company. Olivier's experience in local government and knowledge in nursing homes or health care system are both at the local level and his experience also in the government will be a big help for us. It's important negotiation with the different governments is always important in our activity. So Olivier has been chosen by the Board at the unanimity and is proposed to be our President at the next -- after the next general assembly.

Could you comment on the EUR 42 million impairment you did in full year '25, Jean-Marc?

Yes. We have decided to be particularly cautious as far as balance sheet management [indiscernible]. So we have not recorded impairment. We have recorded depreciation for various assets, and we will continue to work on balance sheet improvement and I expect part of this depreciation be released in the quarters to come, but we wanted to be particularly cautious as far as the balance sheet cleanup is concerned.

To which extent are you impacted by the recent increase in financing conditions regarding your financing and the value of property assets? Two things. First, it's way too early. We have not had any significant impact at this time. Concerning the financing, as Jean-Marc said, 1/3 of our interest is covered so it's fixed. And the rest, well, the reality is that the short-term Euribor 3 months have increased, but not dramatically. So this has no material impact for the time being. We need to see how the things will evolve. And for sure, as soon as we can, we will continue to hedge this financing cost.

Concerning the real estate, it's way too early to have a comment on the valuation. You remember that compared to the situation we had in 2022, the situation of the valuation is probably at a low point. And looking forward, we expect the real estate market more to be at a trough and at the same time with our profitability improving to have a progressive revaluation of our assets. Has there been -- you want to add something to this? Has there been any increase in lease cost, lease cash payments in H2 '25, Jean-Marc?

Maybe it is worth to reminding you a few things. First of all, we are leasing 56% of our facility and we are owning 44% of our facility and as Laurent explained in his speech presenting that this placed a unique in the nursing homes and clinic industry. And as far as this payment his concerned, we have done, I believe a good management with external rents because as you have seen our presentation, external rents have been brought down from EUR 495 million in 2024 to EUR 492 million in 2025. So most of those things are CPI based but we have been able to start renegotiating some of them. So this payment has been kept in extremely good control in 2025.

So recovery in French clinics, what can you say? Well, clearly, we continue to work hard on improving the profitability on the clinics. A lot of the measures are self-help. We do not expect and do not rely on any in the French market. We do not rely on any incoming from the government and from the authorities. But at the same time, I think we can operationally improve significantly how the -- our clinics are currently working. And on that front, there is still a way to go in '26 and '27. So good opportunity for us also there.

On the market, as you know, it's a very regulated market with a vast majority of our turnover coming from the social security. And we continue to expect low tailwind coming from the financing in France, but we are working around that with our own self-help measures.

Another question, is there a specific ownership rate target for the medium term, please? No, no, no, there is -- I think we are happy today and in the current environment to be the owner of our assets of 44% of our beds. I think it's a strong asset that the company has. We had in the past a target, but this target was also linked to the fact that we needed to deleverage the company, reduce the issues concerning the balance sheet and make disposals. We have done the vast majority of the program and more than what we announced. So now I think we will be very, very opportunistic, continue to grow and invest and at the same time, divest a little bit, but very, very selective, and we have no specific ownership target. We consider our high ownership target as an asset.

A few seconds ago -- sorry, another question [Foreign Language]. So what are emeis ambitions concerning care at home? We have already care at home activity, not significantly in France and almost nothing in France. But we are already present in other countries, for example, in Ireland or in the Netherlands. This is a very interesting activity and we are contemplating the possibility to grow further in care at home activity. Well at the same time, for sure, the priority operationally for the time being, the first priority is to improve dramatically because this is low-hanging fruit, I would say, to improve our current operations and develop what we are doing in a way to improve dramatically our profitability. So both ways, I would say this is definitely an opportunity for us but we are developing already in some countries. In France, in particular, as the question is asked in France, we are not very present and the priority is to focus on turning around our clinics and our nursing homes.

Any other question? No, apparently, there is no more question. So just to summarize back what we have said already during this call, strong recovery and a strong year in '25, both in terms of operations and at the same time in terms of strengthening of our balance sheet. Moving forward, we continue to have good trends ahead, both in terms of market with a strong demand, but also in terms of conditions in which we operate. We are very confident concerning our guidance concerning '26. I think it went out from what we've said today and the opportunities moving forward in terms of improvement of the profitability and the operation of emeis is very strong. So the future is all us, and there is more to come in terms of improvement, EBITDA improvement and solidity of the company. Thank you for listening to us, and have a good day.

This now concludes the conference call. You may disconnect.

Ladies and gentlemen, welcome to the emeis conference call regarding its 2025 revenue and business update. It will be structured in 2 parts. First, a presentation by emeis management team represented by Mr. Laurent Guillot, Group CEO; and Mr. Jean-Marc Boursier, Group CFO. Afterwards, there will be a Q&A session during which you can ask oral or written questions. I will now hand over to the management team. Gentlemen, please go ahead.

Well, good morning to all of you, and thank you for attending this conference related to the presentation of our full year 2025 preliminary figures. I believe it will be clear to you through this presentation that we are particularly happy to deliver this set of figures. These figures provide evidence of the turnaround underway in our operating performance. And for the second year in a row, Emerys has beaten its guidance. As you will see this morning, this year has also been marked by continued improvement in our operational performance indicators for satisfaction and quality. And finally, 2025 has been an exceptional year in terms of structural progress relating to the divestment program, debt reduction and sustainability of our financial structure.

Together with Jean-Marc, Jean-Marc Boursier, our CFO, we will present these major achievements of the year in detail and share our confidence in the years to come. So as you may remember, the resumption of our sales growth and the rise in occupancy rates started to support our operating margin recovery from the beginning of the second half of 2024.

Since then, quarters after quarters, this improvement has continued and is continuing. We were today particularly happy to show you the evidence that this operational recovery is well confirmed again in 2025.

Occupancy rates have improved further everywhere and quite significantly, now nearing 89% on mature perimeter with a price effect captured again in the year, the organic growth of our revenue posted a solid performance at 6. 1%. This positive momentum on top line is mechanically feeding our operating margins, thanks to the good grip we had once again on operating expenses, leading to a 19.2% growth in the EBITDA at constant perimeter, well above our guidance for 2025 and a 56.5% growth on EBITDA on a like-for-like basis.

All cash flow components have largely improved this year. Free cash flow turned positive in H1 at 26%, as you remembered, and is now EUR 342 million on a full year basis. Fair to highlight the fact that operating cash flow at EUR 185 million was only EUR 15 million last year, so a tremendous improvement.

And last, but not least, recurring free cash flow is now entering positive territory in H2 2025. The group's financial structure was also largely enhanced this year in 2025 and beginning of '26 with the disposal plan largely exceeded and the full refinancing of our net debt.

In the meantime, the leverage ratio massively improved as well, down from almost 20x end of 2024 to 10x today in the beginning of '26. We do thus reiterate our midterm guidance, expecting an average growth of the group EBITDA of 12% to 16% CAGR at constant perimeter. And for 2026, we do believe that the EBITDA should grow at least by 10% on a like-for-like basis. I would like to start with this presentation after the introduction and summary by discussing the improvement of quality and satisfaction indicator, which, as you know, are the foundation of operational and financial performance. It's key to remember that we are improving all key indicators.

I picked 2 just as reminder, and we will give you more details and especially CSR precise measures and KPIs when publishing our full year earnings along with the CSR report in April, but we picked 2 to show you the improvement that we are doing.

The resident satisfaction rate measured in '25 in French facilities now stands at 93.5%, up 50 basis points compared to '24 and more than 3 points compared to 2022. Some message when considering the Net Promoter Score, which also measures the satisfaction and loyalty of our residents, patients and beloved ones.

It has also risen sharply, now reaching a score of 41 in 2025, up 4 points from '24 and 23 points from '22. This significant improvement illustrates the successful measures taken in recent years to restore the confidence on the group.

Another way to measure it is in France, our facilities are rated by the Haute Autorité de santé, French National Authority for Health in the same way than all other facilities in the sectors. You can see in this slide that these ratings are divided into 4 groups based on quality assessments comparing the results obtained in '25 and the years before. 99% of emeis facilities are in the 2 categories.

This is significantly higher than the sector average, even higher than the private sectors as a whole. It marked a distinction that illustrates our leadership in this area despite the fact that probably some of these studies were made when we were still called Orpea and probably where we are suffering from that.

So very good work from the teams overall showing our quality commitment and as a consequence of that, the attractivity of our facilities. Not only have the quality of the service and care provided in our facilities increased materially, but also our processes for new recruitment of residents improved again in 2025.

Number of prospects increased by 13% in year 1 by 24% in 2 years. These prospects can increasing -- are increasingly coming from digital tools with none were coming from there in 2023, as you can see in the graph in the up and right. Most importantly, the transformation rate, the percentage of prospects visiting our facility that become residents were strongly growing these past 2 years. Interestingly, the rebranding of the group in H1 2024 seems to have occurred as a catalyst.

As a result, the number of residents entering in nursing home in France grew by 21% since 2023 and 10% versus 2024. This is a second fundamental driver along with quality and satisfaction for occupancy rate increasing momentum therefore revenues thus operating performance. We show this concerning France as an example, but obviously, this is not the -- this is acting as an example in an illustration, and this is also the case in other countries.

All of these matters support the positive momentum that we continue to see and that we are seeing on occupancy rates. on all our businesses and on every single country where we do operate.

Year-to-date, the upside captured is a bit stronger on nursing homes, whose occupancy rate grew 200 basis points in 12 months to 87.2% now. This was less than 80% in 2021. This is definitely significantly below what we believe should be a normalized level. We have plenty of room and plenty of opportunity moving forward in terms of improvement and occupancy rate thus top line, thus operating margins. And this upward movement will be supported by the demographic wave for elderly people can easily forecast ahead. So the positive momentum that we have experienced in '24 and in '25 is thus not fading out, and we do expect this momentum to continue ahead.

Mechanically, almost mechanically, this requires work mechanically, this growth is in revenue is largely translates into operating margins. Thanks to the work that we've done on quality and capturing a favorable price effect on accommodation and on segmenting our offering, we have been able to boost our revenue growth that goes directly to the EBITDA.

By controlling operating expenses, adapting methods and tools and focusing management efforts on turning around some underperforming facilities, we continue to optimize our operating performance and operating leverage. Thus our revenues has increased 6.1% on like-for-like. nearly 15%. And at the same time, our EBITDA margin increased far quicker by 56.5% like-for-like in 1 year and 90% in 2 years. As you can -- and you can trust our midterm guidance. It's not over yet. There is much more to come ahead. As a consequence of what I just told you and because our trajectory for enhancing processes and costs came ahead of expectations, we have beaten our guidance for 2025 this year. EBITDA like-for-like growth came at plus 19.2% thus ahead of the guided range between 15% and 18%.

This is an outperformance of around EUR 10 million to EUR 30 million that we do enjoy at year-end. So we are happy to share with you the fact that these encouraging achievements leads our figures to grow comfortably in line with our ambition, confirming that we are now in the right path. It's now fair to say that this set of figures is a good milestone on the road to an embedded recovery that confirms our confidence for the year ahead.

We can be confident this positive momentum will continue in 2026 with the EBITDA, as I said before, expected to grow at least by 10% at constant perimeter. With increasing confidence for the future, we are obviously able to reiterate comfortably our midterm outlook for 2028.

The average annual growth rate of revenue on the like-for-like perimeter is expected to be between 4% and 5% between '24 and '28. And the group's average annual growth rate on EBITDA on a like-for-like basis is expected to be between 12% and 16% per year between 2024 and 2028. On the other front, this year has been exceptionally rich in the group's history as we have successfully overcome numerous challenging and hurdles.

Our financial structure has been considerably strengthened, which in addition to the rapid recovery of our financial performance, gives us a peace of mind to further optimize our strategic positioning and operating performance for the years ahead.

First achievement, as you know, is related to our disposal plan. As you may remember, our target was to sell EUR 1.5 billion of assets between '22 and 2025. And at the end of '25, we largely exceeded this target with EUR 2.45 billion of disposal achieved mostly through real estate disposal and to a lesser extent with operating disposals.

At the end of '25, EUR 1.1 billion of this EUR 2.45 billion was still to be cashed in. But since the beginning of the year, the closing of Isemia, real estate vehicle brought more than EUR 700 million mid of January. And so a bit more than EUR 300 million is therefore still to be cashed in from now on. Fair to say that this disposal plan largely contributed to the restoration of our balance sheet strengthening. Second key achievement over the years is a massive improvement of our financial structure due to the both the disposal plan achievements and better-than-expected improvement of operating margin.

Net debt is going down by EUR 1 billion in 1 year, and the leverage ratio is now back to 10x versus 19.5x end of '24, a massive improvement in only 12 months. You remember that mid-'24, we were even at 24x, so a massive improvement in 1.5 -- for sure, much more is still to come given the midterm outlook that we have shared with you already in terms of EBITDA and thus EBITDA on the leverage ratio, we have agreed for a covenant in '29 for 6.5x.

And as you can imagine, we are comfortable with this covenant. Third key achievement of the year is a full refinancing of emeis bank debt with EUR 3.15 million of new debt raised this year with an average cash margin of EURIBOR plus 247 bps.

As you can see from the chart shown here, it largely enhanced the debt maturity schedule versus the situation by the end of '24. The average maturity of our debt is now close to 5.1 years, and the average cost of debt at year-end was slightly below 5% in spot at the end of December '25. The average cost of debt was for reference, 5.37% in '24. I will conclude before ending -- before handing over to Jean-Marc, I will conclude my talk with this list of the major issues and challenges we have to address and that we have addressed in '25.

It's clear that we have now made significant and positive progress and that the main achievements are now complete or on the way Disposal plan has been largely exceeded. Structure of our balance sheet has been considerably strengthened this year. Our debt ratio has already improved dramatically, but there is still more to come ahead. Occupancy rates have risen sharply already, but they should continue to grow significantly in the coming months and in the coming years.

And as we are halfway there in terms of operating margin, which have grown over the last 12 months, and we continue to grow and to do so ahead. So on top of that, our company is also supported by favorable trends in real estate market valuation, but I will come back to this point later this morning. This year is, therefore, a stepping stone, a turnaround year, and the road ahead is full of promise. Our focus will be now on continuing this operational improvement trends further ahead, relying on attractivity, quality and financial results improvement. Thank you, Jean-Marc, for going into the details of these financial figures.

Thank you, Laurent, and thank you all for attending this call this morning. We are very pleased to present the publication today that we believe is particularly strong for at least 5 reasons. First, a very positive growth momentum in our revenue, plus 6.1% organically that continued in line with the trend observed so far and is not fading out. Second, a significant improvement in operating margin with an EBITDA at EUR 872 million, up 19.2% organically versus last year.

And as explained by Laurent, this drove us to beat our guidance for the year. And please note that emeis EBITDA has also significantly improved versus last year, plus 56% Third, our cash flow has improved sharply. Our group free cash flow turned positive in H1, but is now positive at EUR 342 million, an improvement of EUR 640 million in 1 year. Fourth, our net debt, excluding IFRS 16 and 5 is down by EUR 1 million in 1 year when considering the Isemia transaction that we closed mid-January. And fifth and final, considering both a reduction in net debt and an increase in operational performance, the leverage ratio considerably improved from 19.5x in December to 10x today. Please note that these numbers were reviewed by our Board of Directors yesterday, but remain largely unaudited at this stage. So let's start the performance review with our sales.

I will be relatively quick on that slide since these elements are fully in line with the trend already observed in H1. Sales posted substantial organic growth of 6.1%, very similar to the publication in H1, driven by a combination of 3 positive factors: First, a price effect of 3.3%. As a reminder, it was 3.4% in H1 Second, an occupancy rate up by 1.8% versus 1.7% in H1. And finally, the effect of the ramp-up of facility opened in 2024 and 2025 for 1% versus 0.9% in H1.

This favorable growth trend can be mostly observed on nursing homes, plus 8.1%, whilst clinic have been more muted, only up 2.5%, but I will show you later that there are encouraging signs in that segment as well. By geography, we can see that revenue is growing strongly internationally, particularly in Northern and Southern Europe, a little bit less so in France. In Northern Europe, momentum is particularly strong in Germany with both favorable price effect and occupancy rates that continue to grow very significantly. In Spain and in the Netherlands, recent openings, which are gaining momentum are accentuating an already favorable revenue trend. This year, revenue growth was driven by international market, plus 9.4% and by nursing homes, plus 8.1%, while France and clinics appear to be a little bit lagging behind.

However, this apparent weakness in clinics in France is partly due to a perception yes and the underlying trend on a quarterly basis is much more encouraging. For clinics in France, the first quarter, as you can see on this graph, fell short of expectation, mainly due to weak sales of private rooms. Revenue were down 2.7% in Q1. But the graph shows you that quarter after quarter, a noticeable improvement can be seen, and we have been able to turn a 2.7% decline in Q1 into a 1% increase over the full year.

This is a result of the work carried out by our teams, particularly on revising the segmentation of servicing offerings. And this trend overall is particularly encouraging for 2026 and beyond. For nursing homes in France, please note that the nonrecurring positive impact favorably played in Q4 last year. Restated from this one-off, the underlying like-for-like growth would be rather close to 4%, well ahead of the 2.6% that we are publishing today. The group average occupancy rate rose by 1.8 points to 87.6% versus 85.8% at the end of 2024, continuing the gradual recovery in this aggregate. The recovery was mainly driven by nursing homes with an average occupancy rate that rose by 2 points to 86.5% versus 85.3% at the end of 2024 and even 82.1% at the end of 2023.

In Central and Southern Europe, the level achieved are now above 92% which means back to pre-COVID levels, especially if we remove from this computation, the ramp-up sites, which occupancy rates are obviously lower than those of mature facilities for the time being. Note that excluding ramp-up facility, occupancy rate for the whole group would have been today at 88.7%. So although still below our medium-term ambition, we are happy to see this supportive momentum continue.

If I say a few words now about our 2 largest markets, Germany on one hand and the French nursing homes. In France, it is interesting to note that the improvement in occupancy rate for nursing homes is gradually confirmed quarter after quarter and is not at all fading out. confirming the trajectory of catching up the sector current standards at a relative steady and constant pace with an improvement along the year of 2 points. In Germany, the recovery is also following a steady and constant pace. Here again, the momentum doesn't seem to fade out, thus fueling confidence in this market as well. In Germany, the annual improvement trend is standing at plus 3 points for the second year in a row. If I move on to operating expenses now. As you can see on this slide, the performance of our revenue is flowing nicely to the operating margin as well.

As a percentage of sales, staff costs have been reduced, reflecting the measures we progressively implemented during the past 12 months to optimize the allocation of our human resources. At the same time, we also benefited from the initial effect of our cost rationalization measures launched in H1, which led to a reduction in the intensity of other costs as well. I'm very confident that those 2 cost components, staff cost and OpEx can be further improved in the years to come.

As a result, these measures are enabling us to maximize the conversion of revenue growth into operating profitability. Our EBITDA margin, although still below our medium-term ambition, increased consequently from 13.1% in 2024 to 13.8% in H1 and even 15.8% in H2 this year, showing a strong sequential improvement throughout the year. EBITDA margin also rose materially by more than 2.5 points to 6.8%. More of the same here, this chart illustrates that operating margin have started their way towards normalization. In euro terms, please note that the positive upside in sales, plus EUR 259 million versus last year was largely transferred into EBITDAR plus EUR 132 million and into EBIT plus EUR 131 million, another evidence that the operating leverage to the upside is strong and should continue to be supportive again ahead.

Please note that in euro terms, the 2 largest contributor to EBITDAR and EBITDA growth are France and Germany, which were historically our most challenged markets. This is, again, a clear sign of recovery. Now let's move to the free cash flow analysis. Across all cash flow indicators, trend continue to be very favorable. This slide perfectly illustrates in my opinion, the continuous improvement of all our cash aggregates, which we hope to see continue in the coming years.

The net operating cash flow on the left of this slide is up sharply. It is, as explained by Laurent, 12.5x higher than last year, and the second half of the year was particularly strong, not only because of operational improvement, but also thanks to a better working capital management and investment discipline. I would like also to focus on recurring free cash flow, which for the record is equal to the net operating cash flow minus financial expenses. For the first time, it is positive in the second half of the year, excluding one-off expenses related to the refinancing of the group. And this is, again, a very strong signal of a new balance that we are gradually achieving.

And finally, as I mentioned earlier, the total free cash flow for the group is up EUR 640 million year-on-year at plus EUR 342 million versus a cash burn of EUR 298 million last year, partly -- this improvement is partly due to the disposal that we made this year. As Laurent mentioned in terms of disposals, the volume that we have been able to complete in 2025 is another major achievement for us. Since mid-2022, EUR 2.45 billion of disposal have been completed or are under agreement at the end of December.

Among these EUR 1.1 billion were still to be collected at the end of December, but including the EUR 761 million related to the Isemia real estate transaction that you know was closed and cashed in on January 14. Therefore, only EUR 330 million are still to be cashed in, in the following months. As explained by Laurent, we have largely exceeded our divestment program, and this situation puts us in an opportunistic position when it comes to potential additional divestment that could be contemplated. A significant portion of this disposal corresponds to PropCo disposals. In 2025, EUR 1.5 billion of PropCo disposal were secured or finalized, including EUR 538 million related to mostly sale and leaseback transaction based on an average capitalization rate of 5.9%. This disposal mainly concerned French assets, particularly senior residents, but also assets in Switzerland and to a lesser extent, in the Netherlands.

EUR 216 million related to transaction under promise, mainly sale and leaseback and EUR 761 million, thanks to the real estate partnership that you know about. A few words about this real estate vehicle. Emeis -- Isemia is emeis new real estate vehicle open to third-party investors. These vehicles brings together assets with an appraised gross asset value of EUR 1.22 billion for an average yield of around 6%.

The investment received from Farallon Capital Europe and 22 real estate amount to EUR 761 million and therefore, represents 62% of this value. The 68 assets concerned are located in France, in Germany and Spain. Half of them is used for nursing homes and half are clinics. The innovative structure of the operation is particularly relevant and opportunistic for the group. First, because it strengthened immediately our financial closing structure at closing. Second, because it's a strategic move for the group. In the medium term, this vehicle could or should become the real estate operator that will meet emeis real estate needs.

And third, because this is an opportunistic move considering health care real estate cycle likely to upturn. This deal is structured so it allows emeis to keep the benefit from the expected upside in the coming years on real estate valuation and value creation, contrary to a more classical sale and leaseback operation.

Please note as well that the governance of this vehicle will allow the group to retain a full and exclusive control on emeis -- on Isemia ,sorry, which means that Isemia will therefore be fully consolidated in our books. In addition to PropCo disposals, we have also finalized the sales of several OpCos this year for a total consideration of EUR 165 million.

This mainly concerns our activity in Czech Republic sold in March, but also our independent residential services business in France in the second part of the year and a few other OpCo disposals were also concluded in Belgium and in Italy. Overall, these activities represent only 1.8% of the group EBITDA and 2.5% of its EBITDA. As a result of everything we say today, emeis financial structure has continued to strengthen significantly this year. While net debt, excluding IFRS 16 and 5 has decreased by EUR 300 million in 1 year, the consideration of the Isemia transaction closed on January 14 brought pro forma net debt down by EUR 1 billion since December last year.

So net debt pro forma is down to EUR 3.775 billion, a massive decrease, both thanks to the important volumes of disposal achieved in 2025, but also thanks to the operational margin improvement. As a result of both information, operational improvement in one hand and net debt reduction on the other one, the group's leverage ratio was significantly reduced, as said by Laurent, down from 23x in H1 2024 to 19.5x at the end of 2024. It now reaches 10x pro forma.

As a reminder, this leverage ratio of 10x is already well below the covenant that we have agreed with banks for 2026 at 12x. And Laurent reminded you that we anticipate this ratio to fall below 6.5x before the end of 2029, this ratio being the covenant that we have agreed to the refinancing achieved in December. Last but not least, we secured the refinancing of the whole bank debt of EI SA with EUR 3.15 billion of new debt raised under favorable conditions, i.e., with a margin all in cash and peak of 363 bps over 3 months EURIBOR. This new debt, including a new EUR 400 million bond, have fully refinanced the former A B C D financing and have largely enhanced the debt maturity schedule of the group that can be seen on this slide. Thank you for your attention. And now I hand over to Laurent for an update on the development of our real estate portfolio and to conclude this presentation.

Yes. Thank you, Jean-Marc, for the detailed presentation. One final key point for me concerning our momentum is that the health care real estate market appears to be beginning rebound after hitting the trough at the end of '24.

This is obviously important for our group since one of the characteristic and singular characteristic of the sector is the rate of real estate ownership of the assets that we operate, something that makes emeis quite unique in the sector.

The group's real estate portfolio is currently valued at EUR 5.6 billion, representing 44% of the beds operated by the group at the end of '25. and is valued on an average yield of 6.4%, excluding duties. Nearly half of this portfolio is located in France with the remainder spread across Northern, Central and Southern Europe. Obviously, the total value of the assets declined this year due to the significant real estate disposals that we have completed.

But the interesting point about this slide is that it highlights that the value of assets on a like-for-like basis has now started to recover slightly after several years of decline, indicating that the trough of the cycle has reached -- was reached at the end of '24 and that we could now enter a new phase. The capitalization rates used by experts have stabilized and improved outlook for our markets is beginning to translate into an upturn in values on a like-for-like basis.

While in detail, valuation changes on like-for-like basis were positive everywhere, especially where the valuations were already flattening 1 year ago. I'm talking about Central and Southern Europe. In France, the rebound is far more limited, plus 0.4%, as you can see, but this needs to be compared with a sharp decline last year, minus 8%. This clearly brings confidence for the market valuation changes that we can expect ahead everywhere. It also reinforces our view that the strong shortfall of bed we do forecast in the coming years will bring even more appetite for these health care real estate assets ahead, thus feeding momentum for the upward phase of the cycle, both on operations and on real estate market values. So before answering to your question -- to your questions and the questions you may have, I would like to conclude this presentation with reminding key elements I want to summarize.

First, the positive trend of our top line continues with a strong organic growth of 6.1% and 8.1% on nursing homes, supported by a positive momentum on occupancy rates and positive price effect and especially positive occupancy rates in France. Improvements on quality and satisfaction metrics largely contribute to this performance. Second, the strong momentum on operating margins, up 19.2% for EBITDA and 50 points for the EBITDA, mostly driven in million euros by France and Northern Europe.

Our guidance '25 is therefore exceeded by EUR 10 million to EUR 30 million. And as a consequence of this and along with other components, our free cash flow have turned positive this year for the very first time for a very long time with more than EUR 600 million better off versus last year. Third, our EUR 1.5 billion disposal target before end of '25 is largely exceeded with EUR 2.45 billion now achieved or secured. This was reached partly thanks to a major real estate partnership recently signed, bringing EUR 761 million to emeis. Since the beginning of '25, EUR 1.4 billion have been cashed in already. This will accelerate further the strengthening of our financial structure, as Jean-Marc detailed with a pro forma net debt around EUR 3.8 billion, decreasing EUR 1 billion compared to last year and a leverage ratio that is now at 10x versus 19.5x at the end of '24.

Real estate valuations are bottoming out after several years of severe adjustments, raising confidence that valuation cycle should now be supportive ahead along with improvements on operations. And finally, the positive trend seen in '25 will be continuing ahead after EBITDA like-for-like growth of 19.2% in 2025. We do expect it to continue to grow and to grow at least by 10% in '26 at constant perimeter.

And our confidence brought also up in a situation to confirm our midterm outlook. We are now expecting revenues to continue growing ahead between 4% and 5% CAGR at constant perimeter and EBITDA dynamics are also set to continue in the same path with a CAGR between 12% and 16% at constant perimeter over the same period. So thank you for your attention concerning this introduction. And now obviously, we are available with Jean-Marc Boursier to answer the questions you may have.

[Operator Instructions]

First question from Christophe Ganet. In clinics in France, how do you see the rates of occupancy evolve in 2026? What level do you have to improve it? Two points concerning that this question. First, we can see an improvement at the beginning of '26 compared to last year. So we see further improvement in the rate of occupancy in clinics.

Obviously, the question is not the needs in clinics. You know that we have clinics in France, psychiatric clinic and rehab clinic and the demand for psychiatric and clinic is definitely much over the capacity that is installed. So we have -- from that front, we have no issue with occupancy rate and occupancy rate improvement. And so we will see what will happen during the year, but we are quite confident in terms of occupancy. The second point, which I wanted to elaborate on is to continue to work on private revenues from our clinic and not only public and coming from state support for our clinics. So this is a key element. And from that respect, we've put in place more dynamic marketing and commercial approach in '25 compared to '24.

This has evolved very positively for us in terms of revenue in the second half of the year, and it continues to gain traction in the first weeks of '26. And so we should continue to see an improvement from that respect.

Second question from Christophe Ganet. EBITDA '25, '26 and guidance, can you help us to draw what will be our starting points given the disposals when you guide a plus 10% at least for '26. Jean-Marc, perhaps you want to answer that question in terms of what's constant perimeter and constant perimeter given the disposals.

For 2025, Christophe, you can find in the appendix of the booklet that we have disclosed an explanation about how we compute the what we call the like-for-like growth of the organic growth. Obviously, we are considered in those numbers only the disposal of OpCo that were closed during the year and they mostly concerned, as you have understood, Czech Republic and senior residences in France.

As you know as well, we have also other disposal of OpCo in our radar screen, notably in China and South America because we made clear to all of you that we would refocus on Europe and sell any non-European activity. So it's difficult for us to be much more precise at this stage.

But obviously, there will be some impact on our portfolio of activity, and that has been taken into consideration when we guide you on 10% organic growth. Obviously, that will lead probably to some restatement of our 2025 numbers so that the comparison in 2026 would be totally obvious and transparent to all of you. Your next question is an update on our OpEx saving plan.

So yes, as you know, we have announced a full review of our OpEx base in France. So OpEx base in France amounts to a total consideration of EUR 500 million, a little bit less than EUR 500 million. And we believe that through a thorough analysis of our organization for [indiscernible] for residence management, for energy, for laundry, for anything like that. So anything that is related to human resource but to OpEx, we believe that we can generate significant savings. The savings were already noticeable in H2 this year, but we anticipate further savings that were obviously included in the guidance that we gave you.

Last question from Christophe Ganet. What price levels do you anticipate for '26? Well, for sure, compared to '23, '24 and even '25 with the much lower inflation rate we anticipate lower price increases. What is important for us and has always been important in our message in the last 3, 4 years is that we intend to continue to have a positive spread between price and inflation, price and cost through dynamic pricing or detailed pricing house by house, sometimes apartment by apartment.

And this is critical for us. So lower price level increase than '25 definitely. But once again, trying to increase the spread between price and cost through pricing. This is our critical strategy from the beginning.

We are more in value-added part of the segments, both in clinics and nursing homes. The quality of our facilities and the quality of the service that we are providing is key to continue to develop this pricing power that we already have experienced in the last years. Two questions from [indiscernible]. How come occupancy rates are so low given the demand for placement of elderly people? That's a good question. Well, clearly, [indiscernible] we were suffering both from the COVID situation in 2021 and from what happened in '22 with the scandal of the company and which is a previous company, I would say.

And we are recovering. If you look at what happened on the market and especially the communication of our competitors, I would say that the occupancy rate is across the board a little bit more stable, and we are gaining traction and we are recovering. And last year, we've increased our occupancy rate in France by 2 points. We will continue moving forward. The big increase of the demand will happen more in '27, '28, '29.

Why? Because the people that are entering our facilities today are around 85 years old, which means they were born during the war. So you have a little bit of lack of people during this period for obvious reasons.

And these are the people that are now due to enter in our facilities. So for a period, there will be a little bit less. Second question for [indiscernible]. Second question for [indiscernible] is concerned by the focus on lowering OpEx, especially the question of staff cost given what happens in 2022.

I want to reassure you definitely [indiscernible] on that topic, and that's why we are communicating that much about quality and satisfaction rates. We are never lowering OpEx at the expense of quality of service to our customers. This is critical promise that we've made to our customers, and this is critical for the improved financial situation of the company.

At the same time, we have costs, both operating cost in terms of purchasing that we can reduce, not at the expense of quality, but because we are not -- we were not completely efficient in the last years in terms of purchasing, and we are making it much more efficient, both in terms of prices and in terms of volume.

But once again, being very concerned about quality. Same question concerning staff. When we look at some of our facilities, not all, but some of our facilities, we have staff levels that are way above the market standards.

We will -- the target that we have given it continues to be one of the best in terms of standards on the market by far. But at the same time, when it's not good, we need to continue to reduce our cost to be sure that we have the right level of profitability facility by facility.

So this is a good exercise, but this is a very question. We are very much taking care of exactly the point. We are reducing our OpEx, but not at the expense of the product quality. This part of our brand that we are trying to rebuild.

A question of Lloyd, please can you explain what the outlook is on the regulatory environment in France?

Well, it's fair to say that in our guidance and in the guidance concerning the short term, I would say, the '26 or in the midterm guidance, we have taken into account a very modest improvement of the financing coming from the government.

When I say modest, it's between 0% and 1% in '26 and the same moving forward because we are very conscious that the financial situation of the French government does not much more than that.

If we have more than that, we will be very happy and we will enjoy it. But we are working with an assumption which is very conservative because we want to have more self-help measures that allow us to improve our EBITDA and situation. Clearly, if I go into the detail for 2026, there is a very limited increase of the tariffs for clinics.

We will see what will detail in the coming weeks, but we've taken into account something like 0 or 0.5 depending on the activity. And in the nursing homes, we've taken as an assumption, which is not wrong, 1% improvement of the public financing.

So you see very modest and the improvement of the situation in France that will come in 2026, a further improvement is more due to self-help measures. That's why we are quite confident. A question, Jean. Can you remind us what is now the percentage of real estate owned? And what is your medium-term target, please? Jean-Marc, do you want to take this one?

Yes. At the moment, we are slightly above 42%, 42%, 43%. And do we have a medium-term target, a very precise medium-term target? The answer is no. But we can well anticipate a slight reduction in our ownership. But keep that in mind, 40% is owned, 42% is owned, and the rest is under long-term agreement.

Which, as I said before in my presentation, is a very different situation compared to our peers. We are quite significantly owners of our real estate. You may remember that 3, 4 years ago, we were saying that we probably reduce this percentage significantly.

That was in a goal to strengthen the balance sheet. Now that the balance sheet is strengthened, there is less need to reduce this ownership. And on the opposite, being owner of our real estate is probably becoming a competitive advantage now that the real estate market concerning health care market is turning around and is progressively improving.

And you have noticed also that our real estate valuation as of today is much above our current level of debt, which gives us a lot of confidence going forward. I believe that we are now moving to oral question.

[indiscernible] shall we do that?

[Operator Instructions]

Can you hear me?

Yes.

This is Constantin from Caius. Thank you for good set of numbers. And 3 quick questions from me, please. One, could you please provide a little bit of color on the overall organic revenue growth for the group you expect in 2026? Two, given the disposals achieved in the slightly lower -- smaller perimeter, is there a scope for reduction in central costs that you anticipate? And then three, does the EUR 868 million pro forma EBITDA reflect all the disposals, including the EUR 328 million yet to be received?

Concerning the first question, yes, we are not giving any guidance on short term 2026. We have given a guidance of 4% to 5% for the medium-term guidance. If you -- give you a little bit more color, Constantin, for sure, the trend that we have experienced in '25 concerning the volumes, we expect it to be relatively similar because the trend at the beginning of the year and what we expect is not very different.

On the prices on the opposite, for sure, given the overall reduction of inflation across Europe, the trend is to a reduction of prices. What is important for us is to continue to maintain the gap between price and inflation, so price and cost so that we can continue to improve our profitability.

For sure, there is a reduction in terms of sulfur cost. It has been already the case in 2025, and it will continue to be the case in '26. We continue to work on a regular basis on our sulfur cost. As you remember, we've discussed that before we've increased our central cost significantly in '22 and '23 and even a little bit in '24 to strengthen the control of the company, the quality measures, the measurements of all what we were doing. It was -- and to put the things in order.

Now we are more progressively, but steadily and constantly on the other way. And we do it in a way that is not costly for the company. And I think I prefer to do it steadily during 2 to 3 years by optimization and having people going progressively as we are in France than doing a big plan. And this is what we have already done with a significant cost reduction in '25 and we will continue in '26.

Last question, Jean-Marc.

Constantin, your last question was on the free cash flow computation. Are the EUR 328 million that remain to be cashed in part of the free cash flow of the year? The answer is obviously not. It will be computed in the 2026 free cash flow when the cash will be collected and when the operation will be effectively closed.

It's actually on the EBITDA. So you have this slide with the pro forma 2025 EBITDA of EUR 868 million. And my question is, does that EUR 868 million reflect all the disposals, including the EUR 328 million? So is that the right starting basis? Or is there going to be more adjustments from the disposals yet to be received?

There will be more adjustment going forward once we will have closed the further OpCo operation that I was disclosing. So we will need to adjust the 2025 pro forma once those operations will be closed and announced, yes. The pro forma that we are showing is only based on the operation that we have closed already in 2024 and 2025.

Well, one question of Aleksander Peterc. Our '24 comments simply read in France, the main contributor of the growth was nursing homes, which delivered plus 6% organic growth. This segment benefited from strong momentum in admissions from the middle of the year, which continued throughout the second half and into the early part of '25.

Why wasn't the tailwind flagged in '24, but you do now disclose the headwind in a year-to-year comparison? Well, I think I don't get this question. I think we communicate with the results every on the -- especially on the occupancy rate every quarter. So this momentum in '24, sorry, in the second half of '24 was clearly indicated and we reiterate this communication on a regular basis in '24 and in '25. So I'm not sure that I understand the comment.

We had, Laurent, slide income by the French state last year at the end of 2024, which corresponds to reimbursement of social charges that were accounted into revenue. And we just highlighted today to make it clear that this one-off by the French state has not reiterated in 2025.

But we are not talking about admissions and occupancy rate [indiscernible].

Occupancy rate whatsoever. And regarding the momentum for admission, Alex, I can, but we already communicated on admission for 2024, especially the change in dynamics, which was seen in Q2 2024 already. So that's already revenue effectively, but absolutely no impact whatsoever on occupancy rate.

On the -- just to flag that to Aleksander, on Page 23 of our presentation that you may have received and you can find online. And this is a graph that we have communicated on in all the quarters in the previous communications. We have a clear -- we show a clear evolution of our occupancy rate in France because we know it is a key indicator for our guidance and for your analysis of the company.

Given your near-term context comment, should we assume that 10% EBITDA is really the safest possible bare minimum for '26 and you may well hit the lower end of the midterm target, 12% to 16% EBITDA CAGR. I think clearly, we -- as you remember, 10% is -- well, at least I repeated in my presentation, I said that our guidance for '26 is at least 10% growth in EBITDA. We are confident that we will achieve that.

This guidance is also taking into account some of the headwinds that we are experiencing in some of the countries. And if I name one in France, the change in regulation and the change in especially in support to companies due to the taxes and I don't know how you say that, Aleksander. So social charges reduction by the government in government budget for 2026 is taken into account in this guidance.

So we've taken somehow the bad news, and we'll see how the company will deliver on the EBITDA ratio. This is clearly why we are confident to deliver that. And we will see how the company and the results evolve throughout the year, and we will communicate in due time if we see different targets and perspective.

Well, 10% EBITDA, as you may see, with the performance that we have done by almost 20% EBITDA ratio last year is also the reason why we are confident with the midterm target of 12% to 16% EBITDA. If you do 20% 1 year and 10% the other year, it's average 15% ratio, and we are confident that this gives us for the midterm range that will lead us in this frame of 12% to 16%. I hope I answered your question the way I could answer. Any other question?

Yes.

Looking at your real estate pro forma value of 5.6%, are there any assets slated or disposal that will no longer be in your real estate perimeter by year-end?

There are a few, yes. There are a few -- if you look at Page 29, I've explained to you that out of the disposal program that we have secured, EUR 216 million yet remain to be cashed in, in 2026. So yes, there are a few of those assets that are part of existing disposal program. Your second question, Aleksander, is with regards to minority interest in this EUR 5.6 billion value. technically speaking, none whatsoever.

Having said that, if I phrase it slightly differently, the EUR 1.22 billion of real estate valuation in Isemia is part of this EUR 5.6 billion. So at some point in time, investors will have to be replaced because as you have understood, the partnership with Farallon Capital and 22 Real Estate is only a temporary one. This partnership is supposed to last for 5 years with a potential elongation program for 2 years more, but EI has the capacity to replace those investors if and when needed. So technically speaking, no minority interest in this 5.6, but the 1.22 is obviously a part of it.

No other question? Is there any other question asking it last time. So if it's not the case, Jean-Marc, we thank you a lot for your participation to this call. A quick summary. rapidly, clearly, if we -- we are very pleased with the results as we have beaten our guidance for '25 with a strong momentum on operating margin and cash flow that will continue -- that is continuing in the beginning of '26 and will continue in 2026.

The balance sheet has been clearly strengthened, thanks to significant disposals and the renegotiation of our debt. And if we look at the midterm to long-term outlook, we are -- the company is supported by very tremendous and significant demand growth in the years to come, which gives us a lot of confidence to support our midterm outlook of 12% to 16% EBITDA growth between '24 and '28 and short-term EBITDA growth of at least 10% in '26. Thank you for your participation, and see you soon. Bye-bye.

This concludes today's call. Thank you for your participation. You may now disconnect.

Good morning, and welcome to the emeis Q3 2025 Revenue Conference Call hosted by Mr. Jean-Marc Boursier, Group CFO; and Samuel Henry-Diesbach, Investor Relations Director.

The call will be structured in 2 parts. First, a presentation by the emeis Group management team, and afterwards there will be Q&A session. [Operator Instructions]

I will now hand over to the management team. Gentlemen, please go ahead.

Good morning to you, and thank you very much for attending this conference call related to our business activity and sales at the end of September 2025. I'm Jean-Marc Boursier. And before answering the question you may have with Samuel , I would like to share with you a few words about our activity and revenues.

Please also note that a dedicated presentation can be found on our website. As you may have already seen in the press release published this morning, the third quarter of the year is part of a continued improvement trend that began to take shape mid of 2024. This momentum is indeed continuing both in terms of occupancy rate and sales across all businesses and all geographies where we operate. This third quarter even shows encouraging signs, especially in Germany but also in our French clinics.

So first, regarding occupancy rates. The momentum continued to improve quarter after quarter. The group average occupancy rate now stands at 88% in the third quarter, up 1.8 points year-on-year and even 4 points when I compare to 2 years ago. As you can see on Page 2 of the presentation, this indicator has been growing steadily and continuously for more than 2 years now. If we are still below our target, the trend should continue in the coming years and should bring our performance back to the standards we do expect to reach ahead.

This favorable trend is particularly visible in our nursing homes business, the group leading activity, where the average occupancy rate has now reached 87% since the beginning of the year and even 88% in the third quarter alone, up 2 points versus Q3 2024.

Everywhere, occupancy rates have improved, as you can see on Page 3, especially in Northern Europe, plus 2.8 points; in Central Europe, plus 2 points; and in France, plus 1.7 points. In Southern Europe and Latin America, occupancy rates were so far weighed down by the impact of non yet mature facilities that we've opened in 2024, but the strength of the third quarter and the quick ramp-up of this facility are helping to catch up. The occupancy rate is now back in line with last year level.

Across all markets in which the group operates, occupancy rates are rising, progressively approaching pre-COVID levels as it is already the case in Central Europe, where you can see that our occupancy rate now stands at 92.2%.

If we do a quick focus on the performance of our 2 major markets, France and Germany, I'm on Page 4 of the presentation. And as you can notice, in France, rates are nearly up 1.8 points above last year for the same quarter. Momentum remains strong and sustained with another very solid performance in Q3.

In Germany, the notable improvement partly reflects the measures that we implemented recently, particularly in terms of quality with a segmented offering based on new resident's needs, the effect of which are gradually being booked along residence notation. Momentum appears to be accelerating in Germany, which is the group's second largest market with an average occupancy rate now reaching 88%, up almost 3.8 points versus Q3 last year.

Consequently, in terms of sales, top line is posting a solid performance, up 6.4% on a pure organic basis, reflecting the gradual recovery in activities following the measures that we have taken over the last 24 months. In the third quarter alone, the momentum was even more pronounced with an organic growth of 7%. This is interesting to note that the positive dynamic is driven mostly by nursing homes, up 8.5% versus last year and by international market, I will come back to it, growing at around 10%.

This increase in revenue year-to-date reflects the combination of 3 factors, as you can see on this slide, all of which were favorable, as you can see on Page 5. First, a positive price effect, supporting organic growth by EUR 1.49 billion or up 3.8%. So this is representing the largest contribution to sales growth. As a reminder, the price effect was 3.4% at the end of June, so clearly suggesting that the favorable pricing effect is increasing, and this is notably true in Germany and in Belgium.

Second, as already commented, an increase in the average occupancy rate at the end of September of plus 1.8 points, contributing to 1.7% to organic growth. And third, the impact of recently opened facilities whose ramp-up contributed 1 additional percent to organic growth, and this is mainly true in the Netherlands and in Spain.

For nursing homes, I'm on Page 6. For nursing homes, which is 2/3 of the group business, this publication marks the continuation of the recovery during the third quarter, plus 8.4% in organic growth, in line with the solid achievement reached so far in the previous years. But as you can see also on this slide, the clinics business, which is showing a more moderate momentum earlier this year, is now recovering sharply. The organic growth of the clinic business in Q3 is up 4.4% versus Q3 2024 compared to only 1.8% at the end of June and even 0.6% only in Q1. So we see clearly the acceleration of our activity in the clinic business.

This sequential improvement is particularly noticeable in France, which reflect both the negative base effect for the first quarter, which are smoothing over the 9-month period and also the initial effects of new measures taken during the first half of the year, including better offer segmentation of services provided and also a new pricing strategy.

During the first half, dedicated action plan have been tailored for each of the French clinics, identifying levers for performance enhancement. And since then, on a weekly basis, these facilities are more closely monitored, and we are starting to see the impact of those recent measures.

The evidence of the strong growth for the nondomestic market, so everything outside France can be seen on Page 7. Internationally, performance is indeed very solid with organic growth rates approaching 10% and even a little bit above 10%, notably in Northern Europe and in Southern Europe. In those 2 regions, we are benefiting from strong pricing impacts, notably in Germany, in Belgium and in Austria but also an increase in occupancy rates, particularly noticeable in the Netherlands and Austria and the ramp-up of recently opened facility, as I was telling you earlier, in the Netherlands and in Spain.

As a conclusion, we obviously do reiterate our guidance for 2025 and beyond. We are confirming our confidence for the coming quarters and also over a longer-term period. In the short term, the operational recovery trajectory will continue under the combined effect of a recovery in occupancy rates, the capture of favorable price effects but also a better control of our operating expenses.

For 2025, I remind you that the group is having a guidance for an EBITDAR increase between 15% and 18% on a like-for-like basis versus 2024, therefore, extending and accentuating the performance improvement momentum that began mid of 2024. In the longer term, the group anticipates that the improvement in financial performance will continue.

Between now and 2028, the growth momentum in operating margin will be supported by a gradual normalization of occupancy rates to industry standards, namely above 90%, the continued capture of favorable price effects but also the control of operating expenses, which the group anticipates to continue to grow -- those expenses will continue to grow at a slower pace than its revenue.

The trajectory on a like-for-like basis, therefore, excluding the impact of potential operational disposals is expected to continue and emeis, therefore, reiterates its midterm outlook with, first, an average growth in revenue between 4% and 5% between 2024 and 2028. And second, an average annual growth for EBITDAR between 12% and 16%, again, between 2024 and 2028. Both of those are at a like-for-like basis.

So thank you very much for your attention, and we are now available with Samuel to answer all the questions you may have.

[Operator Instructions] We have a question from Aleksander Peterc from Bernstein.

I just have 2 questions. One is a bit of just a maintenance question on the price impact that you had in the third quarter alone. So within your 7% like-for-like growth, how much was price year-on-year?

And the second one is if you could provide us a ballpark or maybe the maximum amount of further disposal transactions that you're currently engaged in? What should we reasonably expect on this front?

So on your first question, the price impact, the price component was 3.4% at the end of June, and it is now 3.8% at the end of September. So for Q3 only, we are at around plus 4%. So we see an acceleration of our pricing strategy that has been successful in Q3.

Regarding the second part of your question, we are obviously sticking to what we said at the end of September when we announced the H1 performance. We have -- after the setup of our real estate company, we are targeting for the period between 1st of July 2022 and December 2025 a total disposal plan of EUR 2.1 billion, and we have no further announcement to be made on that respect today. And we are completely in line with that target. So that means that we will obviously largely exceed the initial ambition of EUR 1.5 billion that we had historically.

Do you want to add something, Samuel? Go ahead.

Yes. Just a quick follow-up on pricing. Is it uniform across geographies? Do you see better traction in Germany? And how is France versus the average?

Yes. The growth has been very good in Germany for 2 reasons. First, because our occupancy rate is now catching up more rapidly than expected even. And second, because we have reviewed the segmentation of our rooms. We have defined the upper segment of our segmentation called comfort rooms with a higher level of quality, and we are able to better price those comfort rooms. So in a nutshell, yes, we have been particularly pleased with the evolution of our activity in Germany.

So I remind you that it represents EUR 1 billion of revenue per annum, and this is our second largest market. And by the way, we have also in Germany, the catch-up effect in our pricing strategy of the past inflation. So we are able to pass on historical inflation to our customers, which is good news for us.

[Operator Instructions] Now we have a question from Christophe-Raphael Ganet from ODDO BHF.

Is it possible to have in the pricing effect, the split between what is your yield management and what is the regulation price increase? That would be my first question.

The second one is, Jean-Marc, if I hear you correctly, I understand that you're slightly above your expectation in some zones or in some businesses. So I'd like to hear about that point, how much are we comfortable in advance compared to your plans?

And the third question would be, is it possible to have an update of the opened beds year-to-date in terms of number of beds actually and notably for Netherlands and Spain but for the whole group, if possible?

Samuel will answer the third question.

Christophe-Raphael, I'm just checking the exact number of beds opened by at the end of 2024. What I can tell you is that globally, it's around 3% of the total sales. That's an occupancy rate on these ones, which is slightly above 50% and an EBITDA margin, which is already slightly above 10%. We have there 3 or 4 openings in terms of facilities in Spain. And I think it's a dozen in the Netherlands but I need to double check these figures, and I will provide you with the number of beds, which have been opened this past 12 months.

We are opening on average between 1,000 and 1,500 new beds out of the total of 100,000. And this is why it contributes to approximately 1% -- 1% to 1.5% to organic growth year-on-year. And at the end of September, it's 1%.

Your second question, Christophe-Raphael, was regarding, are there any location where we had particularly good surprises this year. Yes, as you can notice, we are particularly pleased with the evolution of Northern Europe. Northern Europe includes 4 countries as far as emeis is concerned, Germany, Netherlands, Belgium and Luxembourg. And yes, the evolution of those activities in those regions is even slightly ahead of expectations. So well done to our local colleagues for the quick recovery.

In terms of price increase, I'm not sure that I have fully catch your question. You want me to give you an order of magnitude of the split of the price increase between public subsidy on one hand and private pricing on the other hand, if I understand correctly. So for the nursing homes business, the activity is almost split evenly between what is invoiced directly to the family and what is invoiced from the states, what is cash in from the states.

And it's very difficult to answer because it varies from one country to another one. Public subsidy can go up from 1% in some countries to 4% in other countries. So it's very difficult to give you that split on the top of my head. My answer might sound a little bit frustrating but it's difficult to say. What we can tell you, obviously, is that with a price increase of 4% in Q4, we have a price increase that is above the natural inflation of our costs. That's a fact. That's a reality.

And just coming back on the first question that you had, the figures that I found in the meantime is that the number of beds opened this past 12 months should be around -- in the Netherlands and in Spain, that should be around 1,100 beds.

So exactly in the range I was giving you, yes.

[Operator Instructions] Now we have a question from Laurent Gelebart from BNP Exane.

Just one question following up what you said regarding the fact that your prices are going above or is better than the evolution of your cost. So how is it moving? How is it evolving the wage negotiation for next year? What do you see in terms of wage inflation for the company into 2026?

It varies from one country to another one. But we are starting the negotiation with the union representatives in the various countries, I would say, at the level that is lower than 2%. I don't -- I don't want to be much more precise because I don't want to give the impression to the unions that we are making a public announcement before we are reaching an agreement with them but it shall be in most of the countries below 2%.

Now we have a question from David Cerdan from Kepler.

I have a couple of questions. First one is just to have a clarification on the new beds. Your decision on some new beds, is it a commitment because of the past decision? Or is it some new decision? Second question is regarding your guidance. I would like just to some precisions. When you say that you target plus 15% to plus 18% EBITDA growth for this year, can you give us the basis? What is the number? And when you expect the same rate of plus 12% to plus 16% for the next year, what could be the EBITDA 2025 on a pro forma basis?

On your first question, the impact of the new openings for 2025 mostly relates to decisions that were made in 2024. We need roughly, let's say, 18 months before we decide to invest in a new facility and when the new residents are arriving. Just for your information, the investment decision process within emeis is totally centralized. For every dollar that is invested by any of our subsidiary for development, the decision is being made by Laurent Guillot and myself. So we have a weekly investment committee that decides to go or not to go ahead with new development. So we are totally able to control the level of development that we want to do and in which geography we wish to allocate our financial resources.

With regards to the guidance, that's very simple. The basis for comparison is 2024. The EBITDA for 2024 was EUR 740 million. So you would need to apply plus 15% to 18% growth on that number. Keeping in mind that we have also -- this is a like-for-like comparison, keeping in mind that we have also some disposal of geography. For instance, we announced a few months ago that we have sold our activity in Czech Republic. So we will need to take that into consideration when applying the organic growth.

But clearly, the basis for comparison is the EUR 740 million of EBITDA in 2024. And this is the basis for comparison for both the 2025 annual guidance and the medium-term guidance, which I disclosed and which is an annual average growth rate between 2024 and 2028.

Okay. Very clear. If I may, can you have -- can we have an update on your CapEx plan between maintenance and expansion for this year and next year?

For next year, we didn't express ourselves yet. But for this year, the order of magnitude is EUR 300 million. So we will be investing this year EUR 300 million. That is split between approximately 2/3 in maintenance. And when I say maintenance, this is real estate maintenance and IT because we need to modernize our IT system. So we have a sizable amount of investment to be made within IT and 1/3 into development, development being set up of new residents. So that's the order of magnitude, EUR 300 million of CapEx, 2/3 maintenance and 1/3 development.

There are no more questions at this time. So I will hand the conference back to the speakers for any closing comments.

Well, as a conclusion, as you have understood, a good quarter for emeis with an acceleration of our growth. And obviously, we remain today and the following days at your service. Should you have any more questions, we will be happy to answer Samuel and myself. Thank you very much, and have a good day.

Ladies and gentlemen, welcome to the conference call by MA's management team regarding its H1 2025 results. It will be structured in 2 parts. First, a presentation by emeis management team represented by Mr. Laurent Guillot, Group CEO; and Mr. Jean-Marc Boursier, Group CFO. [Operator Instructions]

I will now hand over to the management team. Gentlemen, please go ahead.

Laurent Guillot speaking. Good morning to all of you, and I'm with Jean-Marc Boursier, our CFO. Thank you for attending this conference related to the presentation of our H1 earnings figures at the end of June '25. I hope it may sound clear to you along this presentation that we are particularly happy to deliver this set of figures, which provide not only the evidence of the turnaround underway in our operating performance. This is what we showed already at the end of July, but also mark a significant milestone since our disposal target have been once again largely exceeded.

All of this news brought confidence embedding our financial structure improvement for the coming quarters and allowing us to provide midterm outlook for the years ahead. A few months ago, you may remember why we were publishing our full year earnings figures, we told you that the resumption of our sales growth and the rise in occupancy rate seen started to support our operating margins recovery from the beginning of the second half '24. We were particularly happy to show you the evidence that this operational recovery is well confirmed in the first half of '25.

Occupancy rate have improved further everywhere and quite significantly, now nearing 88% on mature perimeter. With the price effect captured again this first half, the organic growth of our revenues posted a solid performance at 6.2%. This positive momentum on top line is mechanically feeding our operating margins, thanks to the good grip we had on operating expenses, leading to 29.5% growth in EBITDA at 79% on into like-for-like basis.

For the first time for a while, at least a decade, our cash flow has turned positive. We are also happy to tell you that particularly active this past month with numerous operations, of which the announcement of the new real estate partnership [indiscernible] along with the creation of a new [indiscernible]. With relative cash from this operation of EUR 761 million our disposal target close to EUR 2.1 billion of disposals since mid-'22. As a remember, we communicated end of July EUR 1.15 or EUR 1.5 billion target before year-end is already achieved and then largely exceeded. This will mechanically improve materially our financial structure, lowering net debt significantly and improving our leverage ratio sharply. Jean-Marc will come back on these elements later.

Last but not least, we not only confirm the outlook for '25, but we are able to confirm the supporting trends expected for '25. We are able today to confirm that this supportive trend expected for '25 will continue with a midterm outlook to 2028 on revenues and EBITDA on like-for-like basis we expect CAGR between '24 and [indiscernible] between 12% and 16% EBITDA. The positive momentum is set to continue ahead. So let's dig a little bit in the detail.

We've already shown you the numbers in terms of occupancy rate improvement. Year-to-date, the upside capture is a bit stronger on nursing homes with occupancy rate in average a bit less than 200 basis points in 12 months. This positive momentum is not fading out, and we expect this to continue in Q3. This is obviously the result of multiple new processes we put in place, focus on quality and service policy who policy mention different patients and then [indiscernible] disease and special issue and the if you look at the performance we had in France, Jean-Marc will come back on that. This is significantly different compared to [indiscernible].

We are not only showing a continuing supporting momentum on revenue, but we are also posting a positive momentum on operating on operating performance , along with our recurring facts after reaching a trough in H1 '24 EBITDA has now entered its way toward normal with almost 80% growth in 1 year at constant perimeter. My point is to share with you today our confidence that this momentum will continue to feed our growth later this year and for the years ahead.

We do expect positive contribution to our performance from the following elements. First, occupancy rate should be driven by favorable momentum, providing capacity -- providing the capacity to capture further positive price effect. Segmentation are reviewed regularly so to tell there are emeis offers to residents need and purchasing [indiscernible]. Operating expenses are increasingly monitored with a relative good ensuring a good allocation of workforce and cost.

New processes and new tools should enhance our efficiency and better adapt our business to the reforms that we have seen the past years in different countries. We have also defined for each underperforming facility or underperforming unit dedicated action to restore performance in line with expectations.

We share the best practices and [indiscernible] every day more efficient. It's fair to say that the set of figures is a good milestone on the road to an embedded recovery and we confirm our confidence for '25 and beyond. We did go up on added software EBITDA expected to go online collects between 15% and 18%. The trajectory for revenues and between 25% is how we expect going to do the momentum ahead of 25%.

So we see increasing confidence for the future we have decided to go to get today midterm outlook for '25 and '28. The average annual growth of revenue on a like-for-like basis is now expected to be between 4% and 5% between '24 and '28. And the group average annual growth rate for EBITDA on a like-for-like basis is expected to be between 12% and 16% per year between '24 and '28.

Before handing over to Jean-Marc, I would like also to share with you some of the major achievements we have secured so far in Q3. Since the end of July, we have secured EUR 1 billion in new disposal transaction. This is mainly due to the real estate partnership we announced last week with the creation of a new real estate company.

The transaction will result in EUR 761 million in cash for the emeis group when it closes expected towards the end of the year. You may have understood that this innovative deal is expected to strongly enhance our financial structure, but it is also structured so to keep the likely benefit from the upside we can reasonably expect from the real estate cycle and from the recovery phase of our sector globally and [indiscernible] in particular.

On top of this transaction we have secured a little bit more than EUR 200 million of other real estate deal since the end of Q3. At the same time, our team has been able to increase access to liquidity by more than EUR 200 million, notably through 2 factoring sectors, which is also enhancing our financial profile. These 2 transaction overall are major milestones that significantly strengthen the solidity of our financial structure, and this gave us even greater confidence in our operational performance, which is set to continue improving for the coming years.

So now I hand over to Jean-Marc for a little bit more details on the numbers.

Thank you, Laurent, and thank you all for attending this call this morning. We understand that the sound is not super good, so I will try to speak out loud and clear as possible. We are very pleased to present the publication today that we believe is particularly strong. 6 main points stand out in this publication. First, a very positive growth momentum in our revenue. Second, a significant improvement in operating margin. EBITDA is up, for instance, 72% and EBIT has improved by EUR 116 million in 1 year.

Three, our net income is still negative, but the trend is improving significantly. Losses have been reduced by EUR 120 million in this semester, feeding our confidence for the coming quarters. Fourth, our free cash flow generation has improved sharply. The group, as said by Laurent is now free cash flow positive, an improvement by more than EUR 200 million in 1 year.

Five, our net debt, excluding IFRS 16 and 5 is stable compared to the end of 2024, but is already down EUR 233 million when including IFRS 5. I remind you that this is a related to assets held for sale, so considering transaction for which negotiation are at very advanced stage. This decrease in net debt will continue even further by year-end when the closing of certain transactions such as the creation of our real estate company will occur.

And sixth and final, the leverage ratio is also improving considerably even before considering the secured transaction that we -- let's start with hotels. I will be relatively quick on that slide since elements were already published for H1 at the end of July. Sales posted a substantial organic growth of 6.2%, driven by a combination of 3 factors, all of which having a positive impact.

First, a price effect of plus 3.4%, in line with Q1; second, an occupancy rate effect of plus 1.8% and finally, for 0.9%, the effect of the ramp-up of recently opened facilities. This favorable growth trend can mostly be observed on nursing homes, plus 8.6%, while clinics have been more muted at only plus 1.8%.

The group average occupancy rate rose by 1.7 points year-on-year to 87% versus 85.3% at the end of June 2024, continuing the gradual recovery in aggregate that began almost 18 months ago. This recovery was mainly driven by nursing homes, where the average occupancy rate rose by 1.9 points year-on-year to 86.5% versus 85.3% at the end of 2024 and even 82.1% at the end of 2023.

As you can see on this graph in Central and Southern Europe, the levels achieved are now above or close to 92% pre-COVID levels, especially if we remove those computations, the ramp-up sites whose occupancy rates are obviously lower than those of mature sites for the time being. Note that excluding ramp-up facility, occupancy rate for the whole group would have been today at 88.2%. Although still below our ambition, we are happy to see this supportive momentum to be continuing.

A few words about our 2 largest markets, Germany on one hand and French nursing homes. In France, it is interesting to note that the improvement in occupancy rate for nursing homes is gradually confirmed quarter after quarter since more marked each quarter versus the previous one. The gap in occupancy versus the previous year is growing every single quarter and is now 2 points while it was only 0.5 points above a year ago. This acceleration clearly illustrates, and you can see on the top right hand of the chart that the recovery in France is well underway since 2024 and is gaining momentum. This provides confidence for the coming quarters.

In Germany, the recovery is following a steady and constant pace. Here again, the momentum doesn't seem to fade out, thus confidence in this market as well. In terms of operating margin, the improvement in performance is considerable. EBITDA, which we break down on this slide is up 18.4% and 19.5% on a like-for-like basis. So if we exclude the effect of the disposal of our activities in Czech Republic.

By isolating pure operational performance, so excluding the effect of disposal, change in perimeter, change in real estate capital gains and exchange rates, for instance, we see that the performance is increasing by EUR 94 million on the first half of this year compared to last year. And this is a particularly strong trend, which is the result of solid organic growth on one hand and a limited increase in operating expenses, as you can see, only plus 3.1% like-for-like, whereas turnover is up 6.2%.

As you can see on the next slide, if we look at the cost as a percentage of sales, you can see that staff costs have been reduced by 1 point, reflecting the measures that we progressively implemented during the past 12 months to optimize the allocation of our human resources. But at the same time, we also benefited from the initial effect of our cost rationalization measures in H1, which have led to a reduction in the intensity of all the costs as well.

As a result, these measures are enabling us to maximize the conversion of revenue growth into operational profitability. Our EBITDA margin, although still below our target has increased consequently from 12.1% in H1 last year to 13.8% in H1 this year. And if we add on to that the steady performance of our rental expenses, we can rationalize the improvement in our EBITDA margin, which rose by more than 2 points to 5.4% EBITDA margin.

Move the same here on the next slide, this chart illustrates that operating margin have started their way toward normalization. In million euro this note that the positive upside in sales plus EUR 136 million in H1 was largely transferred into EBITDAR by EUR 62 million and EBITDAR by EUR 66 million as an evidence that the operational leverage to the upside is strong and should continue to be strong again early.

It's interesting to note that when looking at the EBITDAR by geography, the 2 main contributors to this growth in France and Northern Europe, given that Germany posted the most significant growth in Northern Europe. It should also be noted that the growth momentum in Central Europe is particularly masked by the sale of our activity in Czech Republic at the end of March.

Indeed, EBITDAR in France grew by 36% and by 21% in Northern Europe. And there is still a significant room for further growth ahead since you can see on the right-hand side of the chart that EBITDAR margin in those markets are still largely lower than what we have as a reasonable target for the coming years.

Although still below our ambition in terms of percentage of sales, the margin are everywhere moving in the right direction. If I continue our analysis of the P&L below EBITDA margin, the momentum remains very positive for us on almost every single line of the P&L. First, because external rental expenses excluding IFRS 16 have declined. This is due to acquisition finalized in 2024, notably in Italy and France, which brought real estate assets operated by the group into the group scope while previously owned by third parties. And as you can see, EBITDA excluding IFRS 16 rose by 72% and even 79% on a like-for-like basis.

Second, when looking at EBIT, EBIT improved significantly as well and is now positive. It rose by EUR 16 million to EUR 102 million in H1 2025. And this is interesting to note that underlying depreciation and provision recorded a positive amount in the first half of the year. This is a sign that our provision for liability and charges have been historically prudently valued and that the risk environment is indeed improving for EBIT.

Below EBIT, I would like to raise your attention on 2 things. First, financial expenses have continued to benefit from the effect of the latest capital increase carried out in February 2024 and financial expenses are down EUR 16 million versus H1 last year. Second [indiscernible] due to noncash adjustments such as certain residual depreciation on a few items possibly intended for sale.

Let's move now on the cash flow statement. At the end of June compared to the first half of 2024, EBITDAR has increased by EUR 66 million to EUR 158 million. Net current operating cash flow has increased by EUR 74 million to EUR 62 million and free cash flow has improved by more than EUR 200 million to EUR 26 million. The lower you go on this slide, the strongest increase you will find. And this is, if I may, the result of the particular attention we pay to every single line of the cash flow statements.

As a result, free cash flow is strongly increasing now into positive territories as a result of the combined effect of the group improved operational performance, the stability of maintenance CapEx and working capital, the successful execution of our divestment program and the gradual reduction in development CapEx, and I will come back to it in a few moments.

The improvement of our cash flow generation is not a one-off. As you can see on this slide, this is part of a gradual trend that has been ongoing semester after semester since last year, and that should continue ahead. The graph on this page speaks for itself, illustrating the gradual result of our effort and the momentum that has characterized this first semester again.

It is particularly interesting to note how capital intensity has been driven in recent years. First, it should be noted that maintenance CapEx and IT CapEx have remained quite stable overall. We share the conviction with Laurent that it is essential to maintain our assets in a condition that is consistent with the quality of care that we owe to our customers.

At the same time, we have deeply reviewed the group's development strategy. Development CapEx have been reduced by nearly 80% in 2 years, reflecting our willingness to reduce project payback and therefore, increase development selectivity. I would also like to remind you that we have developed innovative and CapEx partnership, for instance, the forward sales scheme that allow us to maintain the operational benefits of certain projects while not having to bear those real estate CapEx on our balance sheet.

A few words now about our disposal strategy. As Laurent told you earlier, we have been particularly active since the beginning of the third quarter, securing nearly EUR 1 billion in new disposals. The main contribution of this achievement is the creation of new real estate vehicle open to third-party investors for a total consideration of EUR 71 million. This day brings together assets with an operating value of EUR 1.2 billion at the end of 2024 for an average yield of around 6%.

So the investment received from these investors represent approximately 62% of the total value. The 68 assets concerned located in France, Germany and Spain, as you can see on the map. Half of them are nursing homes and half are. The partnership, which is planned for at least 5 years, grants investors a minimum annual remuneration of 6%.

In addition, depending on the value created by the [indiscernible], the value creation will be shared between them and the emeis Group. Our partners are targeting a total IRR of 12%, above which 90% of the value created will be retained by emeis. The governance of this [indiscernible] will allow the group to retain exclusive control of it, which means that it will be fully consolidated in our consolidated financial statements.

This innovative preferred equity structure is particularly relevant for emeis, first, because it will strengthen our financial structure with an impact of approximately EUR 700 million reduction on the group net debt upon closing of the transaction. a significant decrease in our leverage ratio, which should fall to almost 13x pro forma versus 15x published today and I remind you, 1.5x at the end of December 2024.

Second, because this structure is a strategic move for the group. This [indiscernible] is designed to provide real estate solution in the future. emeis will therefore be able to size the opportunity offered by the sharp increase in care needs over the next decade. And in the medium to long term, this [indiscernible] should attract new investors and should become the real estate operator that will meet real estate needs.

And third, because this [indiscernible] is also an opportunistic move considering health care real estate cycle likely to -- the deal is structured to benefit from the expected upside for the coming years on real estate valuation and value creation. Because we strongly share the view that our midterm perspective are promising as our midterm guidance and the likelihood of seeing property valuation again is significant, we believe that the potential revaluation uplift on these assets is particular significant over the coming years.

This deal structure will provide part of this upside contrary to more classical [indiscernible] operations. As a result, the wording of disposals completed or secured to date has reached EUR 2.1 billion since mid of 2022 as explained by Laurent. This is therefore largely above our initial target of EUR 1.5 billion with nearly EUR 1 billion in new transactions secured in Q3 and nearly EUR 1.6 billion in disposal that should be collected in the coming months, the majority of which by or around the end of the year.

As a result of everything we said earlier today, the financial structure will continue to strengthen significantly in the coming months. While net debt, excluding IFRS 5 and IFRS 16 remain broadly stable between the end of December and the end of June. A reduction of nearly EUR 300 million resulting from the application of IFRS 5 provides an initial indication of the strengthening of our balance sheet. We cannot be much more precise than that, but this is linked to very well advanced negotiation ongoing today.

In addition, the creation of the real estate partnership should reduce the pro forma net debt to around EUR 3.8 billion, representing a very significant reduction, and this is already underway expected around year-end. At the same time, the leverage ratio is improving very significantly also from 2x in H1 '24 to 19.5x at the end of December last year, then 15.5x at the end of June 2025, and this is mainly due to the operational recovery of our activity, resulting in a strong EBITDA growth. If we take into consideration the new real estate partnership, this ratio would be lower even further now approaching 13x. Thank you very much for your attention.

And I hand over to Laurent to continue this presentation.

Well, thank you, Jean-Marc. I think I will try to speak a little bit louder apparent well the first discussion. What are the lessons from this presentation? First, the positive trend on top line continues with a strong organic growth, 6.2% overall and 8.7% on nursing home, supported by positive momentum on occupancy rate and positive pricing effect.

So second is a strong momentum on operating margin, plus 19.5% for EBITDA and EUR 79 billion mostly driven in absolute terms by France and Northern Europe with strong performance, especially in our 2 biggest countries. As a consequence of this and along with other components, our free cash flow turned positive this semester for the very first time for a long time.

Third, our EUR 1.5 billion disposal target before year-end '25 is now largely exceeded with EUR 2.1 billion now achieved or secured.

This was reached partly thanks to a major real estate partnership recently signed, bringing EUR 761 million to the benefit of operation or also other transactions. Four, this will accelerate further the strengthening of our financial structure with a pro forma net debt of around EUR 3.8 billion versus EUR 4.7 billion 1 year ago and a leverage ratio nearing now 13x versus 23 last year in the same period. And fifth, the positive trend seen in H1 '25 is continuing. I reiterate our guidance for '25 expecting EBITDA to grow between 15% and 18% at constant perimeter and [indiscernible] to deliver midterm outlook.

We are now expecting revenues to continue growing ahead between 4% and 5% again at constant perimeter from '24 to '28. And EBITDA dynamics is also set to go here on the same path as we go. We've got [indiscernible] with a CAGR between 12% and 16% at constant perimeter over the same period in between '24 and '28. So thank you for your attention. And now we'll be available to answer your questions you may have.

[Operator Instructions]

First question, what is the plan in terms of distributing the proceeds from the '25 [indiscernible] disposal, EUR 1 million in Q3 that I was mentioning. Well, the purpose is really definitely to strengthen the financial position of the company. So it goes to reducing the debt and [indiscernible] no plan for proceeds and neither no plan to accelerate being CapEx stand or acquisition [indiscernible] of balance sheet.

Another question. Can you elaborate on what is happening in Ireland [indiscernible] change management or would change your season procedure. People do not know we had the TV report a few months ago. Well, this was in, I would say, in frame of a political debate on the legitimacy of the private sector for the [indiscernible] sector.

And also, we say very close to 20 years after a big event on the sector that happened in Ireland also and I would say what we did after this report is clearly we obviously both at the same time, the two facilities involved and the '26 [indiscernible] that we have in Ireland show that all our procedures, all our processes are well in place in this [indiscernible] over a period of time to stop the admissions in some activities and most of the cases because the process and the procedures have been very high [indiscernible] cooperation with a local authority, which is HIQA, we decided to reopen this [indiscernible].

So we are very confident and the team in place in Ireland is doing a great job that is improving [indiscernible] with small changes but at the same time, the job that we are doing in Ireland a good job. We never celebrate in our facilities any deviation from our standards. And when we find this, we obviously hire, then the people go there or the people that are involved.

But I can assure you that we have always focused on of what we are doing in all the countries and Ireland is not different from the other countries. We strongly believe that this TV report was a not completely fair to the situation of our [indiscernible] in Ireland that's part of our business. But as always, we have [indiscernible] measures to improve discussion with the operators.

What are the potential tax costs associated with the transfer of release of assets in connection with the creation of the real estate company. Jean-Marc, you've given the numbers in the presentation [indiscernible].

Yes. As you have heard me say, so we are receiving EUR 61 million from the investments, but the net debt is only around EUR 7 million and the difference is relating to three components. The first one is real estate duty and property taxes. The second component is income tax because assets are valued at a higher value than the book value. So we generated some income tax in some countries. And third related to [indiscernible] related to these conditions are around EUR 6 million.

[indiscernible] the back end loaded or rather linear, whether the underlying assumption on price of occupancy per year, what is the debt maturity level of reimbursement [indiscernible]. I take the first question, you take the [indiscernible]. We are still in a phase of the recovery is progressive. So you see that our guidance in terms of EBITDA improvement from '25 is 15% to 18%. And if you look at the guidance for the midterm, it's 12% to 16%.

So it's more front-end loading because the recovery is faster at the beginning that had driven. And yet, while at the same time against that theory, we have towards 27%, 28%, we will have more pricing power because our facilities will be more, I'd say, occupancy where we've increased to reach almost normalized level. And this, at that time, we have more pricing power.

So you see a little bit more coming from the cost at the beginning and a little bit more coming from the prices at the end with a positive impact throughout the period of occupancy rate improvement. And with regards to the second part of the question, what is the debt maturity and what are the amount of reimbursement for '25, '26 and '27.

This hasn't changed and you will find all the details on Page 43 of this presentation. So we have recycled our debt maturity and reimbursement schedule as an appendix of this vision.

Next question, where do you stand at debut financial covenant and what is the plan for 2027 [indiscernible].

We have one covenant, as you would already know, which is a minimum liquidity quarter after quarter of EUR 300 million, this hasn't changed. The net debt to EBITDA covenant that we had with some [indiscernible] have been renegotiated last year. So that was the existing at most. We are currently in negotiating with banks.

The answer is yes for one single reason as you have noted in our press release for the real estate agent, there are two conditions precedent to the creation of this vehicle. The first one is an internal one. We need to obtain the approval by our unions, and we see [indiscernible] which we are doing in the proper way and second, we have to obtain also the approval by our creditors because some of these -- some of those assets have been pledged under the current credit agreements.

So we need to obtain release of security that we are going to get some other assets in exchange, so we are currently negotiating the securities with our creditors to make sure that all of that can be finalized before [indiscernible] would be done in quick and efficient manner. I read the question with also a question for you so that we both can answer this one.

Is there room for additional provisions also in H2 or in '26, could tell us a bit more nature of nonrecurring agents in the P&L of EUR 7 million to EUR 9 million, okay. So there are two questions in this question. The first one is related to provision tolerability and charges and net flows in our EBIT. As you have noticed, we have really some provision that was historical risk that we were facing in France, both as investment more precise than that, and we think that we will [indiscernible] could be potentially contemplate additional provision release [indiscernible] too early to say [indiscernible] we are well covered and why we are going to enjoy some provisions.

With regards to nonrecurring expenses I told you this is a largely due to non-cash adjustments, little bit of costs related to the new transaction I was explaining with the vast majority is related to a noncash adjustment. [indiscernible] for some depreciation related to certain assets that we are intending to say that seem to too significant.

Could you elaborate on Q3 outlook regarding the occupancy rate. [indiscernible] 3 weeks or 4 weeks from now, we have notification on our Q3 numbers, so we will we have more sales. But clearly, on the occupancy rate, the trend that we have seen till now is continuing with a real improvement and rate of increase compared to what we experienced in H1 is not very different.

We continue to have a strong [indiscernible] in our main country, in Germany [indiscernible] so good trend and we continue to see a recovery in France in environment that involve an improvement [indiscernible] also in Q3 compared to investor. As you know, summer is always where we have a better win rate than the average of the year. So you should expect in Q3 compared to Q2, an improvement.

What will be the level of maintenance CapEx in '25, '28 and development CapEx in the '26, '28. As you know -- a few things. Probably maintenance CapEx and IT CapEx that Jean-Marc showed you before, are at a low point, and we increase progressively this maintenance CapEx, modernize and continue to push for price increases of our services.

It is pretty bold to be sure that we maintain a good level of maintenance and that we continue to enable service with more IT investment. So this kind of CapEx will increase a little bit more to a reasonable amount of money, and we'll continue to be looking to be a very, very control of our cost, so very slight and whether it's an increase on these networks and IT.

On the other side, on development part, we have been very, very selective, most of the development now is happening through asset light projects where we have contracts with partners. And from that point of view, the vehicle, we just set up with our partners can be a way to do for further development with being at the same time free in this. So we continue to have some development CapEx. We continue to be very in control. You should not expect overall on the strong [indiscernible].

With your 4% to 5% revenue growth CapEx, how much [indiscernible] to improve occupancy rate pricing effect and also [indiscernible] if they are including in our target. You -- I mean, we do not communicate wholly on the shipment then but we can explain that maybe less and [indiscernible] then price effect, I gave some detail earlier, where you will have a little bit lower pricing effect at the beginning and an improvement in pricing effect on the significant path.

And new openings, you have some remaining new openings obviously from the past and growth that are at the beginning of the period towards the end of the year, you have some impact bothering on new openings that have been done mostly asset free.

Are you now done with these results; we will be open to [indiscernible] at a good price in order to continue to push ahead with [indiscernible]. This is exactly the point -- the question is mainly with what we are currently heading, I would say we have done with our project and with our commitment, so now, and as I was saying already in July also, we will be very opportunistic, should we have good prices, we would move on, at unattractive prices, we will keep with the asset now, very, very, very selective and very, very, very opportunistic should proposal come at a good price.

How will the partnership be structured; has it been working rights or preferred shares [indiscernible]. Jean-Marc, do you want to take this one?

And then maybe disclose [indiscernible] event. But just keep in mind that majority of working right with the retail [indiscernible] and this is the a reason why we will have the full control of this [indiscernible] consolidated in our books we might share the [indiscernible] we'll be doing something that we need [indiscernible] majority of the working rights with the capital values.

How should we model the growth in fiscal expenses [indiscernible] what would be the midterm categories. We don't probably provide guidance on this one, but clearly, given our cost structure, you look at them and you compare with our peers. The growth rate of [indiscernible] would be far below the CAGR of our top line is one of the reasons why we will have begun to move the EBITDA moving forward.

This is particularly the case in France, where our staff ratio is still quite high and due to the -- I mean the decisions that we have taken at the beginning of the refoundation of the company to staff much better our facilities. Now we are entering a [indiscernible] we reduced this in ratio [indiscernible] especially in France than offshore. So we benefit from that also on the occupancy rate improvement.

What consequences from the current political mess in France, security funding, pricing valuation, implementation of [indiscernible]. Well, I would not -- I don't know if this is a proper word, I would not use mess. We have huge [indiscernible] I have had 8 different Minister for [indiscernible], so you know it's not a particularly new situation that we are experiencing now. Generally, we would welcome any new initiatives and more resources to nursing home and health care system, especially from the private sector as we are more efficient, far more efficient in this sector, we'll wait to make savings, knowing the political environment in France, the forecast that we have given for the next few years is not improving any significant improvement of the regulatory environment for us in the next years.

We are planning and we are working on self-help measures to deliver this performance, not on outside environment improvement. At the same time, we are working with our peers, private, public, NGOs to try to improve the regulation framework in France, but we don't count on it in the forecast given for the next quarters.

Are you planning to pay the EUR 300 million physician payments [indiscernible]. Yes, onshore. No doubt about that. We planned [indiscernible] on the evolution of market share in the French sector. We will increase occupancy driven by the increase in market share [indiscernible] market share from.

Yes, we are gaining market share. That is we start from a lower level compared others and at the same time, the company was in a turmoil in 2023. So from some respect, we are gaining back our share, and we are not playing out on prices on the overseas. We continue that this has been very significant decision from the beginning to decline prices, [indiscernible] for the long term, the best solution.

So really, we are recovering our normal market share on occupancy rate. And we are not doing that on the extent of price [indiscernible] the answer is yes. As you have understood, there will be at least EUR 60 million about the [indiscernible].

Any further questions? Can you go back? Well, do you have any other points? Has that been very clear to you?

Well, assume that there is no further point, so let me summarize very, very quickly. We continue to show a good business recovery, and we continue obviously to confirm our target for '25 but also, we've given new numbers of midterm outlook with a growth rate of 45% and EBITDA growth of 12% to 16%.

At the same time, we have strongly improved our balance thanks to a significant transaction that will lead to a very significant deleveraging and again giving us a lot of trust and confidence for the future. So now we are all set to face the growth on this market because the needs in front of us both in terms of dependence and [indiscernible] surging very important in the next 5 years, and already we have a right balance sheet and we have the business recovery rate, so we are willing to tackle this growth period in front of us.

Thanks, a lot. Thank you.