Euroapi Aktie

Ladies and gentlemen, good morning, and welcome. I would like first to thank you for being here despite this heat wave in the spring. Thank you for being here today, and thank you for the trust you are giving us. We are very happy to review the performance for fiscal 2025 and to submit the draft resolutions to your vote. So in a challenging context, we want to make this annual meeting a moment of sharing. And openness, I will be chairing the meeting with the scrutineers being Temando from Sanofi and Siri Roland for real. Sebastien Hache will serve as Secretary to this meeting in his capacity of Secretary to the Board.

With me on stage are David Seignolle, the CEO of the group; as well as Olivier Falut, the CFO of Europe. I would also like to thank our statutory auditors, including Eric Pika for all the video firm who will be reviewing the various reports. So I declare the 2026 Annual Meeting opened, and I give the floor to Sebastien Hache.

Thank you, Chairman. Since safety is key at Euroapi. You have the map of this room, where you have the emergency exits being displayed. Now, the Annual Meeting was convened by convened convening notice published in the legal asset on the 20th of 2026 as well as a convening notice posted on the online legal assets on the 29th of April 2026.

Ordinary letters were sent out to all registered shareholders under Article R225-68 of the commercial accord. Ernst & Young Audit and Video Paris are the 2 auditing firms who are here present with us. With respect to the attendance and a talent sheet was signed by each person in this meeting when they enter the room, either in their personal name, as registered shareholders, or in their capacity of proxies.

It is noted that 211 shareholders, 65,000,702 shares, representing 68.93% of capital. The meeting is thus declared as properly constituted and can validly be organized in its ordinary and extraordinary form.

Now, all of the documents, as provided by law are here on this table, and they were made available to the shareholders at the head office of the company and in the website of the company.

Now, let us review the agenda for today, 22 items fall within the remit of the ordinary and shareholders' meeting like the approval of the financial statements, the related party agreements, the renewal of the directors to see on policies and 3 resolutions within the remits of the extraordinary annual meeting. This agenda was approved by the Board Meeting of the 16th of March 2026, and I would like to tell you that holder has put forward any draft resolution. Thank you.

Thank you, Sebastian. David and Olivier will be with me to review the performance and results as well as states of the 2027 plan. After my brief introduction, Olivier will be walking you through the results of fiscal 2025. And David will tell you about the outlook and the Focus '27 plan. After David's talk, I will review some developments in the governance structure of the group. Then, Elizabeth Bastoni, who chairs the Appointment and Compensation Committee will review the compensation policy for the offices will answer any questions you may have after the detailed presentation of the resolutions and the reports of the statutory auditors. And before you take your vote, all of the presentation will take place in French. Simultaneous interpretation services available in English as well as live transcription of the presentations and discussions as was requested by a person with hearing efficiency last year.

We all know that 2025 was a challenging year. In a tough environment, with tensions in our markets. Here, so competition, especially from Asia and dynamics, which are not as favorable as we had anticipated. In this tough context, our teams have proved extremely dedicated and committed. They mobilized across all fronts to strengthen our effectiveness, strengthen our positions and paveed the way for the future. And Olivier Falut, our CFO, will review the various revenue aspects in some more detail.

In such a context, again, the top context, all of our employees in the group behaved with great discipline, practical and pragmatic behavior and determination, especially with a goal, which was to optimize our base of cost by reducing external expenditures in order to maintain and strengthen our financial discipline and also to generate margin in order to pave the way for our future growth and our selective action.

These measures, which were taken in 2025, which are still underway in '26 are not adjustments, but they reflect structural developments and changes in the company and business model. And even though some KPIs connected with our plan reflect the reality, i.e., external pressure. We have a clear course. We know where we're heading to, and we have discipline to go about it.

Now, going back to how the company is changing, the key point was the appointment of David Seignolle as new CEO in late 2024 and as well as the almost total renewal and change of our Executive Committee around David. We have a strong, cohesive leadership team with experienced professionals with a rich and complementary background, some with in-depth knowledge of the industry, some coming from different backgrounds and industries. What they have together is expertise in their own respective areas, which you may expect from directors and to be fully dedicated to the success of the company and to work cohesively as a team. Each member then actively contribute to the success of Euroapi with the common goal of sustainably transforming the company while strengthening its performance.

So this renewal is not just a change in the governance mechanism is a key driver to keep changing and transforming Euroapi, which is an additional form of assurance for the Board, Euroapi to deliver on its road map and on its strategic goals. Now, in fiscal 2025, we have stayed the course. And despite the headwinds, some key measures were taken so as to deeply change the company. The most important of those was the change in the product portfolio.

In 2025, 2/3 of our revenues originated in API products, i.e., differentiated APIs up from 57% 2 years ago. This was a major change in our Focus '27 plan, we want to be 70% of this proportion next year. In the CDMO visit, the same big change. We went from a very broad opportunity-driven portfolio to a more mature portfolio with more than 2/3 of our projects being in an advanced phase, i.e., more visibility in the pipe, less risky projects as well.

Finally, in order to implement this change, obviously, we have extended our industrial footprint, and we worked by taking resolute action and improve the productivity levels across our locations, and we have paid for the future by the selective CapEx program. Now, this is happening in a challenging environment, as I said, and knowing that the market is a challenging market. It's a market with some EUR 200 billion in value, and 80% of the value being dominated by small ingredients market, which keeps growing with high potential.

At the same time, the rules in this game are changing with increased pressure on margins, especially on the basic APIs, where all operators are confronted with pressures on their profitability. Among those, the reality is that the production costs are significantly higher in Europe than in other regions, especially China. And this generates sustainable imbalances and requires that we Euroapi among other European operators have to adapt. This involves the necessary change in our product portfolio. The key major change with respect to the supply chain. You know that Europe is highly dependent on Asia, especially China, for a number of the so-called essential APIs, especially antibiotics. So there are strategic issues with respect to health sovereignty and securing our supply chain.

So the market is becoming more segmented, more polarized, more selective. This change are not just constraints, pressure on margins, but there are as well as many opportunities for companies, which are capable of standing out, differentiating, innovating and transforming. And this is exactly this momentum of change that Europe is engaged in. Okay. And David will repeat this in a more tangible manner, but we have initiated Focus '27 as a strategic plan. Our markets are changing. So quite quickly, the Board considered that we had to move faster and go further in transforming and changing the group. So Focus 2027 basically paves the way to establish robust foundations. We initiated transformation. We made defining decisions and started to deliver tangible results. But today, agility in execution and velocity in the execution will be key success factors. So we decided to accelerate in fiscal 2025 and to intensify the rollout of our Focus '27 strategic plan. And David will give you more detail on that.

We decided to launch complementary targeted initiatives in order to sustainably strengthen the company and prepare for the future. These initiatives have a clear goal, i.e., improve our performance, strengthen our robustness, our resilience and position Euroapi on more buoyant and dynamic segments in the market. David Seignolle will review these initiatives in some more detail, note that we consider them as defining an importance, showing that we are capable to adapt, be agile and change and develop our plan depending on the context. So David will review these initiatives in detail, but Olivier Falut will walk you through the results and performance of fiscal '25.

Thank you, Emmanuel. Ladies and gentlemen, good day. I will start by a brief overview of our key performance indicators for fiscal '25. Revenues reached EUR 848 million, down 7% over '24. Core EBITDA, not including one-offs connected with the implementation of Focus '27, reached EUR 66.2 million, i.e., an EBITDA margin of 7.8%. EBITDA, which includes the EUR 56.3 million of nonrecurring items, reached EUR 9.9 million. Capital expenditures were EUR 77 million, i.e., accounting for 9% of revenues in to know that 55% of this CapEx were for growth and performance driven projects, but we'll go into some more detail later on.

We've ended 2025 with a positive cash position of EUR 68.2 million, improving our working capital requirements by some EUR 120 million.

Now, let's look into our consolidated financial statements, starting with the accounting KPIs, including EBITDA. As you can see, the group's EBITDA was positive by EUR 9.9 billion in fiscal '25 compared with a loss of EUR 43.6 million in '24. This improvement originates in the reduction of nonrecurring items, which reached EUR 56.3 million in fiscal '25, down from EUR 94 million in '24, among those, EUR 58 million are directly connected with Focus '27. We registered EUR 36 million of under activity costs mainly due to the streamlining of the Frankfurt location.

We accounted for EUR 6.6 million of internal and external expenses connected with the transformation process of the company. And payroll expenses reached EUR 13.5 million on the back of some restructuring efforts, mainly covering the Frankfurt plant as well as the disposal of in the U.K. 2025 was marked by lower operating expenses related with lower payroll expenses and savings on external spending, as Emmanuel mentioned in his introductory remarks.

Now, with to items below the EBITDA. Operating income reached was a loss of EUR 130 million in '25 compared with a loss of 100 -- an operating loss of EUR 120 million in '24. Depreciation and amortization remained stable last year, and impairments -- asset impairment increased. This reflects the shutdown of the vitamin B12 project in Elba due to the reassessment of its economic upside in a more and more competitive pricing environment. And the second factor was that we align the long-term growth assumptions with the latest market trends.

If we go on in the analysis, net financial investment income improved with a negative amount of EUR 7.5 million in 2025, down from EUR 19.1 million in interest reserve loss. This translates the reduction of the financial expenses following the financing plan then. The tax charge of EUR 72.9 million, '25, includes the impairment of deferred tax assets. All this leads to a net loss of EUR 211 million, up from EUR 130 million in fiscal 2024.

So as was mentioned before, capital expenditures reached EUR 77 million in '25, i.e., 9% of revenues, down year-on-year because we stood at EUR 108 million for fiscal '24. 55% of CapEx were devoted to growth and performance-driven projects to support initiatives to improve capacity, improve efficiencies in the key domains like peptides and oligonucleotides, postandons and corticosteroids. 21% of CapEx were connected with compliance-related investments.

As a reminder, this portion of investments related to issues of safety, quality and environment requirements, some of it being mandatory. 24% of CapEx remaining are with maintaining the existing asset base.

To end the review of financial KPIs somewhere on the change in our cash position, which was positive by EUR 68.2 million in late 2025 versus EUR 24.6 million back in fiscal '24. Cash flows from operations generated EUR 128.5 million in fiscal '25, this performance, mainly originated in the change in working capital requirements, which improved by more than EUR 120 million. This improvement of working capital requirements reflects some factors.

Number one, reduction in our inventories in the order of EUR 38.9 million, reduction in receivables, supported by factoring program, which is launched in 2025. The current assets and liabilities have improved as well, including EUR 36 million paid out by Sanofi in order to reserve minimal capacity across 5 selected products, EUR 18 million for subsidies and grants paid out at the start of the program and EUR 6.5 million connected with the monetization of the research tax credit program in France.

So taking into account the EUR 77 million of CapEx, which I mentioned earlier, available cash flows before financing reached EUR 51.5 million in 2025, up from EUR 15 million in '24, only finally, cash flows from financing operations include the cost of debt in the order of EUR 3 million, which is clearly down following the refinancing process, which came about in 2024.

Now, to end my presentation, let me share some nonfinancial factor numbers. The challenges in the course of 2020 has not weakened our sustainability commitments and requirements. Our goal to reduce carbon emissions in the short term were validated by the SBTi organization, which clearly illustrates the strong alignment of our trajectory with the Paris Accord goals and requirements.

Looking at our Mission '25, clear progress is visible. We reached half of our goals for Scope 1 and Scope 2 emissions, and we already have exceeded our goal for Scope 3 emissions. This is a major milestone for the company. With respect to diversity in the context of reorganizing the group, our goal for 2025 was not fully reached. We must recall that back in '23 and '24, our diversity ratio had improved even exceeding our goals at the time. The long-term momentum remains positive. With respect to safety, despite some pursued efforts, the frequency rates remained stable in 2025. The majority of injuries of low severity due to trips and falls.

Having said that, 1 accident is 1 accident too much and will strengthen our process by analysis of root causes and proactive preventative actions.

David will now review the prospect and outlook for 2026 and Focus '27.

Thank you. Greetings, dear shareholders. So in line with the presentation of the accounts for fiscal '25, let me start by the outlook for 2026. As Emmanuel just stated, the environment -- the market environment remains tough and will continue to change fast. Competitive pressure, notably from Asia, low-cost Asian players is intensifying. Against that background, we shall pursue rationalization of our business in order to focus our resources on the most differentiated products, those that create -- generate most value. Some nondifferentiated APIs need to be stopped. But they will weigh on our activity in 2026.

The impact will be between EUR 55 million and EUR 60 million on the year's revenues. As a result, we anticipate a drop of around 10% of revenues like-for-like. In view of that situation, we are pursuing our cost reduction efforts. We are striving to improve our industrial performance and to control our cash. Of course, the priority remains the protection of our profitability while strengthening our operational model. We, therefore, anticipate that 2026 shall have a core EBITDA margin on the whole in line with 2025.

We shall also continue to apply very strict discipline on investments with a CapEx ratio expected at around 8% of revenue.

Let me now return to the evolution of our Focus '27 plan and the actions implemented to adapt to Euroapi to the new environment. The purpose of the focus of the Focus plan is to significantly strengthen our app's fundamentals and deeply transform a number of key aspects of the group, including our API portfolio and our CDMO business. It's also important to adapt our industrial footprint to reduce our cost base lastingly, while simplifying our organization.

Over a period of 2 years, these actions have already produced concrete results. We have strengthened our operational discipline and made the company more agile and more resilient. Emmanuel told you about the progress made by the plan. I won't go into much more detail, but 1 must really insist on the fact that these are really truly structural initiatives, we have delivered a major part of the plan despite difficulties. We have deeply improved the quality of our portfolio by limiting nondifferentiated products. We have derisked our CDMO business, and we have gained additional visibility.

We've also transformed our industrial footprint, notably with a withdrawal from, improve productivity, adaptation of our production capacity with very concrete results and often in advance of the planned deadlines. In parallel, we have simplified our organization, refocused our priorities and sustainably reduced our costs. Euroapi is now more agile, more disciplined and better prepared for the future than it was in 2023.

We've noted this before, but operational discipline is reflected in a very strong improvement in our capital allocation policies. Our CapEx were down from EUR 137 million to EUR 77 million between 2023 and 2025. The ratio was brought from 14% to 9% over a period of 2 years. And very soon, 8%. This evolution reflects a much more selective prioritization of our investments with a focus on more profitable products that strengthen our competitiveness in the long term.

We shall continue to invest in our strategic platforms, notably peptides and oligonucleotides, prostateglandins, opioids as well as complex APIs where the entry barrier is very high. In parallel, we have also made the necessary decisions when market conditions no longer justified investments as was the case for project vitamin B12.

Emmanuel told this earlier, the environment around us has changed very fast and very deeply and much more than anticipated. And this evolution is imposing adaptations. We need to strengthen and become even more demanding in terms of execution. We have initiated a transformation of the company. A lot remains to be done, but transformation is very much underway. Structural actions have been initiated. The foundation is becoming more robust, and the team is mobilized. At the same time, of course, the reality of the market is forced upon us, but we cannot afford to slow down.

Quite the contrary, must accelerate execution of the plan, go quicker, go stronger, be more selective and boost performance. And in order to go further, we are launching new initiatives to further strengthen our competitiveness, and of course, to lastingly support growth. So the acceleration of Focus '27, our transformation is based on 3 strategic pillars. The first one, as I was just saying, is obviously growth. We wish to relaunch growth with more attractive offerings in our API CMO and CDMO business lines by strengthening our sales excellence and continuing our geographical expansion.

First of all, we shall be continuing to reduce our exposure to small standard active ingredients, which are subject to very high competitive pressure to refocus on segments with a very high entry barriers, such as prostaglandins, corticosteroids, opioids. We are also going to strengthen our commercial CMO business because we are perfectly able to offer reliable and sovereign production to our customers, who, especially as they wish to secure their supply -- API supply chain that will allow us to secure a repeat business and improve the usage rates of our production capacity.

We're also going to refocus on CDMO on our business on strategic customers and complex active ingredients, notably peptides and oligonucleotides, which means that we will stop diluting our sales efforts to focus our resources on key accounts and projects on which we have a high chance of success.

Second pillar is the continuity of the Focus plan, operational excellence. We are accelerating standardization of processes to improve our production costs. We're also optimizing our supply chain in order to reduce costs. And naturally, we are sustainably improving our cost structure, all of this, of course, improves -- has the capacity to improve competitiveness.

And then third pillar, our organization. We are adapting our competence, our skills to a fast-moving environment, simplifying our processes and moving our governance to become more effective and responsive. In parallel to all of this, we must not forget that success for our Focus '27 plan requires preparing for the future with a long-term ambition that can generate value. Euroapi, which is to become a benchmark European reference supply and complex APIs, a sovereign supplier, a reliable partner for CMO for existing APIs and a trustworthy CDMO for the development of new active ingredients and new medications. The market evolutions we're witnessing today further strengthen the relevance of our positioning.

Health sovereignty, more secure supply chains, the need for reliable industrial partners, all of this is becoming increasingly strategic for ourselves and for our industry as a whole. We are transforming Euroapi with methods, discipline and great determination. Our model will become more competitive, more agile, more resilient, but also more demanding in capital allocation. The decisions we are making today are indeed tough, but they are necessary if we are to sustainably strengthen the group and prepare for long-term success. We're moving forward eyes wide open in the face of the challenges that are around us, but we are very confident in our assets and our ability to transform. This is the path we shall follow in the best interest of all of our stakeholders.

Many thanks for your attention. And now back over to Emmanuel.

Thank you, David. Let us now discuss governance and then compensation and benefits. I would like to talk about the great quality of the Board. There are less members now. It is more focused. We have had some who have been working with Euroapi from the onset and who are very well versed in all of the company's issues. All of that is extremely valuable because it provides hindsight and stability in key moments. So along these directors who have been from the onset, we have other directors who have complementary expertise and who further enrich the Board, 63 members of the Board are independent, which makes them, of course, objective and independent in the decision-making process.

We also have an international opening with 4 different nationalities, which is, of course, crucial for a global company.

And finally, I would like to talk about the commitments of our employee representatives and say that their contribution is extremely valuable because they truly understand the reality on the field and the in-house momentum within the company, and truly, their contribution improves our work and makes our decisions more relevant. So we have different profiles, different prospects, different outlooks, which strengthen the entire Board.

Let me also tell you -- do I have the slide? Sorry. So the Board is deeply engaged and highly active. And again, it worked very hard in 2025. The context is very demanding. Of course, a lot of new decisions had to be taken. And we played our part in supporting, challenging and working with management in the implementation of Focus '27. There were 9 Board meetings in the year, with a participation rate of almost 100%, which is not very frequent. But beyond the frequency of these meetings, it's also the diversity of subjects discussed that's important. We were at the heart of a number of structural decisions, of course, the strategic road map, the growth prospects in the medium and long term, our ambitions post Focus 27, as David just discussed, and of course, we're also deeply involved in the reorganizing the Excom.

And we remain deeply engaged in all of the decisions, which may affect the long-term path of Euroapi, of course, the management needs to play its role. Let me note that our decisions were always taken in a collegial manner with full responsibility and in the best interest of all of our stakeholders, among which naturally our shareholders. And I would say that, that deep commitment, strong commitment of management is a good sign.

As for the Board committees, there are a few changes within these committees, Christer is now chairing the Audit Committee as an independent director after the Department of Rodolfo, where there was a conflict of interest because of his new job, a new job, a new position he took on in 2025. And the representative of the French government now joined the ESG Committee.

So in terms of the proceedings, attendance, more than 90% for all of the committees. The Audit Committee was involved in examining the company's financials and risk management in a very significant way. The Remuneration Committee and the review of the independence of directors and for the ESG Committee, they monitored our commitments in terms of sustainable development and our sustainability declaration.

So before I yield the floor to Elizabeth, I would like to tell you about a proposal, which we shall be -- a number of proposals we will be asking you to do so to try to modify the manner for which 1 votes for directors so that the renewal that all of the directors be renewed in 2026, rather than a tiered approach. And it's quite unusual that it's linked to the history of the Euroapi carve-out. A number of current directors were appointed in May 2022, when the group was created; Elizabeth Bastoni, Cecile and myself.

In addition to that, in 2023, Majerus was appointed for a 3-year term, which is a habitual in France, which now brings us to a rather unusual situation. Notably, we only have a single cohort of directors whose term of office is reaching an end simultaneously. And therefore, we would like to suggest different durations for these terms of office, 1, 2 or 3 years so that we don't end up in the exact same situation down the road. So the decision of this tiered approach addresses a number of complex ideas to ensure continuity of the Board to guarantee stability of governance in the long term, which is, of course, very important in our industry.

This also aims to facilitate the granular integration of directors in a more effective way, and it allows a better organization of succession plans. So we believe this is truly in the company's best interest and particularly for our minority shareholders.

So now over to Elizabeth, who shares the Compensation and Appointments Committee.

Thank you, Emmanuel. And dear shareholders, good day. I would like to start by reviewing the compensation of the independent directors and part of the Chair of the company for independent directors based on a budget of EUR 450,000 approved at the last meeting, it is suggested that EUR 396,784 be approved, including fixed portion of EUR 60,000 by independent director, depending on the role in each committee. The compensation of the Chairman of the Board will be EUR 270,000, in line with the approved policy in our exposed compensation for the CEO is made up of the following items: fixed portion of EUR 485,000, flexible portion of EUR 397,700. Other items in the order of EUR 88,344. The total will be EUR 971,044.

With respect to the flexible portion of the compensation for the 2 financial indicators that of the core EBITDA margin was reached by 60%. And the cash flow KPI was exceeded by an amount of 150%, which explains why we have 102.5% as total achievement, and the Board of Directors considered that the 3 individual goals for the CEO were achieved. So the Board has been satisfied with the first year of David Seignolle as serving despite it being a tough environment. Although she led the company in late 2024, we ask you to approve the balance payment of the flexible portion of 2024 of lading the month.

During the previous meeting, you approved the payout of EUR 143,700 after correction of the achievement rate for 1 of the KPI, the amount was adjusted up to EUR 151,130. So the balance to be paid out is EUR 7,430.

Now let's move on to the compensation policies for fiscal 2026. We move by way of resolutions 18 and 19 to approve the compensation of the directors and the Chair of the Board maintained to their 25 level. The individual compensation of independent directors will be distributed as follows: the fixed amount of EUR 60,000 by director, whose payout will depend on the actual attendance, accounting a minimum of 18% of Board meetings. Specific additional compensation to be granted to committee members remaining unchanged compared to 2024 with a compensation of EUR 4,000 for any director traveling to a non-European country.

With respect to the Chief Executive Officer, the Board of Directors moves that his compensation be maintained to EUR 485,000. The target flexible portion being 80% of the fixed annual portion, similar to last year. The payout of the flexible portion will be dependent on the achievement of a number of goals, which are collective in the amount of 60% as well as individual qualitative objectives in the amount of 40%.

Individual goals and targets were defined consistently with the company's strategy. 15% of flexible portion for fiscal '26 will be dependent on the successful rollout of a commercial recovery plan, 10% covering the optimization of the organizational structure and 15% covering the development strategy aiming at the sustainable viability of the company. Knowing that it is key to restore the growth dynamics for your company, the Board of Directors decided to introduce a new mechanism with commercial performance incentive for fiscal '26.

If revenue for fiscal '26 reaches or exceeds a predefined amount, which is higher than the budget amount, a multiplying factor of 1.25 would be applied to the total compensation amount for the flexible portion of this year. Now, the long-term compensation for the CEO remains a key component in the senior leadership team as well as for the CEO. In 2025, David Seignolle was granted both stock options and free performance shares which all were dependent on the performance terms and conditions via Resolution 24, we moved to authorize the Board of Directors to grant freely within the next 26 months shares of the company reserved for employees and corporate officers in the limit of 3.6% of capital stock, including 1%, which could be granted to corporate officers.

The goal of these performance shares will be to retain those senior executives and engage them in the success of the group. The strategic plan was devised to be fully consistent with the interest of the shareholders with the vesting period of 3 years. This year will be required to keep 25% of the shares obtained at the time of vesting with performance terms, including both revenue target and profitability targets. For the other ingredients of the plant, there will be a mix of performance shares and shares connected with the attendance.

This concludes my presentation, and I turn over to Emmanuel Blin, our Chairman.

Thank you very much, Elizabeth. Some concluding remarks before we review the draft resolutions. So we all are aware that we operate in an uncertain and difficult environment. Euroapi is operating in a period, which requires that we are fully dedicated and determined. We are convinced that your company has the resources, the talent and legitimacy takes to deliver a fruitful, successful future, which will generate value for all. The goal and ambition was rewritten this year with a clear goal to become the sovereign provider of the country, a recognized CMO partner, recognized for its reliability with a trustful CDMO business to further development of the next-generation drugs. The goal being to secure the value chain in the health industry. We all operate in a well while the issues health, sovereignty, access to medication in Europe have never been as critical, and our role is essential in this world.

Obviously, we move forward with humility, but we also have confidence in our ability to transform. And obviously, the Board of Directors is fully committed to stand with the leadership team to successfully carry out this transformational change. And we thank you for your trust and for your support in such a context.

I'll turn over to Sebastien for the review of the resolutions.

Thank you, Emmanuel. I will review the resolutions, which are submitted to your vote. The agenda as well as detailed explanation of the resolutions can be found in the report of the Board of Directors, which you have in your convening notice and which is available on our website.

Now let's start with resolutions, which are within the remit of the older shareholders meeting. The first 2 resolutions. It is moved to approve the parent company and the consolidated financial statements for the year ended 31st December 2025 after acknowledging the various reports. It is also moved in resolution #3 to allocate the net income for the year as carryforward. Finally, in Resolution #4, it is moved to approve the regulated agreements entered into between some companies affiliate and the Sanofi Group. It is moved in resolution from 5 to 11 to renew terms of office of some directors: Emmanuel Blin, madam Elizabeth Bastoni, Madam Cecile, [indiscernible], BPI France, Gerald Laval and Mr. Matthias Perjos.

In resolutions 12 to 13, it is moved to coopt and renew the term of office of Christian Amber as a Director to your company. It is moved to introduce resolution 14 to approve information relating to the compensation of corporate officers for fiscal '25. In Resolution #15, to approve the total compensation of Emmanuel Blin as Chairman of the Board of your company for fiscal 2025.

In Resolution #16, it is moved to approve the total compensation benefits of David Seignolle as the CEO of your company for fiscal 2025.

As Resolution 17, it is moved to approve the variable components of the remaining balance of compensation paid out to in respect of his office as CEO from 1st March of March 2024 to 9th of December 2024. The next 3 resolutions move to approve the compensation policy for the members of the Board of Directors, Resolution 18, and for Mr. Emmanuel Blin, Chairman of the Board, Resolution 19 and Resolution 20 for David Seignolle as CEO of your company.

Resolution 21 moves to ratify the transfer of the registered office of your company. Resolution 22 moves to have the shareholders meeting to authorize the buyback of the company's own share in the context of the buyback program as at the 31st of December 2025 in the liquidity program, [indiscernible] 1,676,754 share and sold 1,636,493 shares. And at December 31, '25, the company held 401,871 shares, i.e. 0.42% of the share capital. The cap will be 10% of share capital and the unit maximum purchase price would be EUR 15 per share.

Let's move on with resolutions within the remit of the extraordinary shareholders' meeting with Resolution 23, where we move to authorize the Board of Directors to cancel parts of all shares that the company might purchase on the back of authorization provided by the shareholders in meeting.

Resolution 24 moves to grant free company shares to company employees with a ceiling of 3.6% of share capital over a period of 26 months.

Finally, Resolution 25 is a habitual resolution to carry out legal formalities and any advertising efforts.

Thank you, Sebastien. I would ask Eric Picard, representing the BDO auditing firm to read out the report by the statutory auditors.

Thank you, Chair. Ladies and gentlemen, dear shareholders, in the name of the auditors Ernst and Young and Video Paris, I will report back on auditing for fiscal 2025. We have issued a final report so that you can vote 3 reports for the ordinary meeting on the related party agreements and 2 reports for the extraordinary shareholders as provided by law, with respect to powers and carrying out any capital stock option. Last report by Ernst & Young on the certification of sustainability information, which was community to you, knowing that this report is not subject to your voting. I suggest that we do not read out -- we do not read exhaustively, but to focus on the key highlights and our concluding remarks.

For the ordinary part of your meeting, I will be reviewing those reports on the parent company and consolidated financial statements as well as the special report on whether party agreement. Financials were approved by your Board on the 3rd of March 2026. In this meeting, we have issued reports on the auditing of the parent company financial statements as well as the consolidated financial statements as of the 31st of December '25. You can find that in Pages 2010 and 2013 as well as 182 of the universal registration document, which is available to you.

Auditing will give you the reasonable assurance that the financial statements are fair and true with respect to French accounting principles and give a true view that the company's financial position as well as performance for fiscal '25. Our report on the annual consolidated financial statements take up the key audit points those items which we've considered most important in the review of the financial statements for the consolidated financial statements. The key auditing matters related to the recognition of revenue as well as depreciation and impairment testing for the cash generating units with respect to the current company point. The key auditing matter that we mentioned in our report is with respect to the valuation of the equity interest on the balance sheet of your company.

All this has been shared with the Audit Committee of your group as well as its Board of Directors.

By way of conclusion, knowing that we were able to do our audit clarity, we are issuing an unqualified opinion the parent company financial statements and on the consolidated financial statement. Just a matter to report, i.e., a change in new accounting method with respect to the regulation E&C 226.

Now, with respect to the ordinary part of your shareholders' meeting, next slide, please, we have issued a report on the related party agreements. We were informed the such agreements to be voted upon by you. We've grouped them together into 2 categories in the context of this present that between Euroapi France and Sanofi with rock industries on agreements connected with the global manufacturing and supply agreement or the reverse manufacturing supply agreement.

Finally, you have another category agreement between Euroapi and Sanofi on the extension of the master carveout agreement relative to the update of some regulatory file. This report will enable you to acknowledge and becoming form of those agreements under this geo meeting. And without, you are able to look at the relevance of each of these agreements.

Now, for the ordinary part for the extraordinary part of this meeting, very quickly because you were just read out the resolutions by the secretaries of this meeting. With respect to Resolutions 23 and 24. Resolution 23, to reduce capital, we have no observation to make, no matter to report. With respect to capital Resolution 24, which was read out to you, is with respect to the grant of free shares to be issued. We have no matter to report with the information that was provided to you in the report by the Board of Directors. So much for the report subject to your voting. Then information on the sustainability requirements, which are presented in the universal registration document, Pages 318 to 322.

As a reminder, it is limited assurance covering 3 distinct areas: number one, the compliance the process implemented to assess sustainability related information. The second is compliance with ESRS. And finally, the compliance with the requirements of disclosure of information under the regulation 2022 852. We have no matters to report with respect to any era of mission, so in consistency on these 3 areas.

Thank you for your attention.

Thank you, Eric.

Let us move on then to your questions. And before we do that, and before we give the floor to the audience with microphones traveling this auditorium, we will first answer questions, which were sent to us in writing. Sebastien?

We did receive answers by Alan in writing. Question number one, Mr. Chairman, Euroapi has been studying job in France. Its stock price went down below EUR 1.5. How can you explain that the Board of Directors maintains a CEO who is unexperienced, whose fixed compensation portion is in excess of EUR 400,000. He's 2025 bonus or most equivalent, which means that he will be compensated a bit more than EUR 1 million, including free and performance shares.

On Board of directors as follows: the Board of Directors affirms the trust it has in the ability of the CEO to carry out the transformation of Euroapi based on his leadership on his understanding of the key issues with the implementation of the Focus 27 plan. The board has been considering that David Seignolle profile and track record of key assets in the current situation. His compensation of standard with the market levels and are dependent on demanding performance terms, which are directly connected with a successful transformation process.

Question number two, Mr. Chair, why has your Board accepted to assets that the achievement was 102% despite the fact that the EBITDA reached 60% of its performance with the profit warning and a drop of the stock price by the Chairman. The variable compensation portion of the CEO is dependent on quantitative and collective and individual quality targets. With respect to the qualitative individual targets, the Board of Directors considered the 3 individual targets for fiscal 2025 for the CEO were achieved. And defining measures to ensure the success of the company were taken in a tough demanding environment.

With respect to the financial targets for fiscal 2025, the core EBITDA margin target was reached by 60% of the target, but the cash flow target was exceeded in the amount of 150%, thanks to better discipline. This overperformance explains why the achievement rate was 102.5%.

Mr. Chair, question number 3. Mr. Chairman, your role should consist in working to serve and protect the interest of shareholders, and you get paid EUR 270,000 to do this. If all shareholders lose their value of capital year after year, are we not in a situation where the Chairman and the CEO protect their own respective interest to the interest -- to the detriment of the interest of the shareholders. The Board of Directors response and say that the compensation of the Chairman and that of the CEO are rigorously set based on market trends and comparisons in line with governance guidelines. The compensation policy for your company aims at retaining key high caliber leaders able to drive the company forward in a tough context. There is no logic of any mutual protection. Much to the contrary, there's a demanding governance mechanism, which is in place.

Question #4, a question about the independence of the independent directors. It would seem that they are elected by or appointed by Sanofi and BPI. Does that not mean to the great laxness on the manner in which the CEO and perhaps the Chairman have not been punished because they are continuing to receive compensation that is not in line with the company's performance? Answered by the Board. The Board rejects the allegation that the independence of directors would result in any form of complacency. The directors are assessed on precise -- based on precise criteria. Once appointed, elected by the general assembly, they work in the best interest of the company independently in the best interest of the shareholders, not in the interest of those who appointed them. There is continuous performance review of the CEO, whose compensation and benefits of a package is subject to a very strict and well-defined set of criteria that is reviewed on a regular basis.

Mr. Chair, an analysis I conducted on LinkedIn on what the former [ ExCo ] members have become is that the, in fact, senior profiles have been replaced by lesser qualified people. Are we going to continue to downgrade Euroapi by saying, "Don't worry, everything is fine"?

Answer from the Board. Evolutions within the management team fall within a transformation process that adapts the team to the current challenges in order to strengthen the complementarity of skills and the ability to deliver. The general manager has created -- the CEO has created a well mobilized team, a well-qualified team in line with the needs of the company and the situation is regularly monitored by the Board.

We also received other questions that after the deadline, one about the compensation and benefits packages. There was although one question about the tax domiciliation of the management team. And therefore, whatever they do is perfectly legal and in line. And their activities in France are subject to taxation in France as per the law.

Okay. Let us now move on to a live in-person Q&A. We have two people who will be circulating microphones in the room.

Ladies and gentlemen, Mr. Chair, Mr. CEO, let me start by thanking you. You kept up to your promise for the deaf and hard of hearing which happens to be my own personal situation. I can hear you very well. And apart from Mr. Falut, who wasn't speaking very loudly, it was all very comfortable for me.

Former Chair, former Director, former CEO, myself. I would have 3 questions for you. The questions for [indiscernible] both as an individual shareholder of Euroapi for the past 3 general meetings, I have managed to avoid significant losses, but also in my quality as a French taxpayer. When I invested in Euroapi, like many other employees and shareholders of the company. I was attracted and allured by the project that was on the table, a European sovereign champion of health sovereignty to secure the supply of crucial medication in France and Europe. In the last meeting, you committed very strongly to restore of the company's performance, improve value and strengthen Europe's health sovereignty. One can only note that one year later, the results are ready, not there and that these promises appear hollow and as a pretty much a disaster. Reality is really very far from what you had promised. Jobs are being cut, the share price is down, Employees are losing their jobs, while other shareholder employees are seeing the value of the savings shrink, employee shareholders and therefore, French taxpayers have suffered from mass value disruption, while top management continues to receive very high compensation and benefit packages without suffering at all. And again, the same old excuses, it's because of Asia. That only applies to Vitamin B12. It's because of the market or the context or the previous management team.

Mr. [indiscernible] you have been a member of this board since the foundation of Euroapi. Mr. [indiscernible], you've been here since 2023. So the former management is you, basically. According to the universal registration document, Mr. [indiscernible], you hold around 500 Euroapi shares, which is the legal minimum required to sit. [indiscernible] had more than 22,000. Mr. [indiscernible] you seem to have bought absolutely no paying shares of Euroapi with all of the money you're making. Mr. [indiscernible] had more than 26,000. And as for Mr. [indiscernible], I did not find any information. Even more surprisingly, and that will bring me to my questions. The directors who represent the employees hold more Euroapi shares than the Chairman of the Board and the CEO put together which brings me to my questions. Mr. Chair, Mr. CEO. How can you today, ask minority shareholders of this company and employee shareholders, shareholders who are being affected by job cuts and the French taxpayer to continue to believe in the future of Euroapi in a situation where you have very little financial stakes in the company's success?

Second question, what have you, in very real terms, accomplished for France's and Europe's sovereign health sovereignty for public health and for the creation of value for shareholders and employees in compensation for all of the public money that you have received through the IPCEI, for instance, that was funded indirectly by French taxpayers.

And finally, final question, which also goes to all of the shareholders who wish to be involved in Euroapi's future and prevent the voting resolutions that would entrench the disaster. Should we believe that the project -- the Euroapi project as it was sold initially is dead? Or should we just accept that today, the CEO and Chairman are no longer credible to drive the project? Many thanks for your answers, and I hope you will have strong arguments.

Sir, you did not introduce yourself. Thank you for your well constructed question that seems to cover a whole lot of issues. Maybe David and I can share. So I have been Chairman of the Board since September 2024, not since the origin. But I have indeed been an independent director since the very start and involved in development since the carve-out. And I am very proud and very happy to have done so. So yes, it's true that the market performance at Euroapi is, of course, not at all what it should have been. The company has run into difficulties, both in the stock markets that are extremely significant. And I understand and the Board fully understands the perceptions that shareholders may have of this particularly disappointing market performance, which is far below what it was initially. And the share price has been dropping from the onset. So we fully understand how that can be perceived by the shareholders. And it doesn't make us any happier than you.

The question you have asked initially was what could this company do to become attractive again, to become attractive for investors in terms of the share price. If we are to become attractive, we need to strive for profitable growth, which is currently not the case and has not been since the company was [ floated ]. Profitable growth, the first decision we took a number of years ago, was to refocus Euroapi's strategy versus what was announced at the time of the carve out. And on the '27 plan is moving in that direction, of course, the Haverhill spin-off is part of Focus 2027. It wasn't planned initially. We said that we were going to dispose of Brindisi, that was also not part of the Euroapi story at the time of the carve out.

So I think there was initial awareness that the strategy had to be reoriented versus what had been defined at the time of the carve out. And that strategy is Focus '27, a smaller company that produces and markets less non-differentiated APIs and that has sales capacity to sell to other customers than Sanofi. There are elements of the strategy that existed at the time of the carve out, and there are other strategic elements that are new. First point.

Second point. At the time of the carve out or even 18 months ago, no one could have anticipated the highly aggressive stance taken by the Chinese notably who have come to Europe in huge numbers. Of course, there are great geopolitical evolutions that you are witnessing as we are. So that required in 2025 and again today to adjust Focus '27 and to add new aspects. Notably, as regards, our investments and the sizing of our teams and so on. And these changes are underway and are currently being discussed with the social partners. So there's something new that is currently being executed.

All of this to say, to answer your question, what could make Euroapi attractive once more? All of these changes are designed and focused to allow us to boost revenue, to return to revenue growth, revenue growth for differentiated APIs that are profitable. It's a path in our sector, in our industry, that takes some time. Changes in market conditions that emerged in 2025 and 2026 are making the change even more complicated, even more difficult. In addition to that and the necessary transformation of the company, we also need to face more intense competition. And I'm not blaming everything on China. I am saying just saying that the market conditions are strengthening the depth and breadth of changes that the company will need to undergo. And that's the reason why the Board of Directors is happy with the initiatives taken by general management to accelerate change within the company.

So it's not a question of hollow promises, the Board of Directors promises nothing. What we are paying particular attention to is to ensure that management is implementing Euroapi's transformation because there is no choice. There is no other choice. Only transformation can allow us to return to profitable growth. If you think about things rationally. The process is underway, but it will take time, which is why we need highly mobilized and engaged teams, highly driven and motivated management and we believe that we have the competitive compensation and benefit packages to allow us [ serve ] the right people to do it.

As for IPCEI, the Euroapi's investment program, which is jointly funded by the French government. It was an important question. Maybe I should let David go into the final details of what the state is funding, what is being done, what these R&D projects and what their importance is. They are not going to be yielding sales fruit -- sales results in the short term. These are R&D projects, either to allow us to launch new products or to make part of our current portfolio more competitive through innovation by changing our manufacturing processes, notably. So it's an R&D, medium-term initiative. It should serve to boost Euroapi's competitiveness, but it won't happen overnight. And it's true and rest assured or not, but the Board is experiencing this situation. It's an industry where things take time. Driving restructuring and transformation takes time. We have industrial sites, [indiscernible], listed sites and so on. transformations cannot be conducted over a period of 2 weeks or 6 months. And we need to ensure that in the field of R&D and CapEx and growth, we can invest where there is a reasonable chance to remain sustainably competitive. So sometimes it's a risky bet. R&D always is. And we all hope that our -- that we will win these bets, but who knows?

You are right to note how important the IPCEI program is. It is the CapEx program, which is of significance for us because it will determine the future of Euroapi above and beyond 2030, and it is an R&D-driven project as Emmanuel said, and on the areas of focus that IPCEI, European [indiscernible] going from micronization to monetization. Basically, this work and development work will span out the next 6 to 8 years way of research and development with 10 -- with investments spanning the next 10 years. So your question was relevant as to -- and interesting with respect to what did we do? We worked hard to and fought hard to sign this contract, which was only signed in early December last year. And the French state does not take it too likely to sign such a contract with as much CapEx. This why we work hand-in-hand with the administration agencies, the French administration agencies to make sure that everything which was done properly, and this was done until late 2025.

Having said that, we have not stayed idle waiting for the contract to go live before we worked hard. And the first step we took was to contractualize all this work with academics with a small-sized businesses be they manufacturers, be they firms and research and design firms and companies and OEMs and equipment manufacturers. We worked hard last year to start the first stages of work and to contractualize things development work is underway. Of course, these R&D projects will take time, but I believe we are well positioned to soon deliver and I hope we'll be delivering as early as 2027 on part of this program. Obviously, you can imagine that if and as the French state subsidizes up to EUR 140 million. This means that Euroapi's CapEx or of a more significant nature, and we are paying high attention to how and what we spend out. We told you about very disciplined, very strict investment management policy and the same goes with IPCEI. And we haven't spent -- and we will try and be as effective, as efficient as possible by spending less, if possible. And if this happens, we'll ask less from the same than the EUR 140 million is the maximum ceiling, which obviously will have to be supported and justified.

Last point, you can imagine that the French state is scrutinizing what we've been doing and how we've been spending. Just a few weeks back, we had a meeting with representatives of the ministry for capital goods and equipment, scrutinizing what we've done with the strict requirements and we'll keep moving forward in this way.

Thank you. Now with respect to any questions you may have on shares you hold. The first point I would say is that in the compensation package for the CEO, a significant portion of that is with respect to the grant of free shares, free performance shares and stock options. And David is the potential of shares with performance options and David is the potential owner of a high vast amount of Euroapi shares and the Board. And we all consider that it's the best way to align the action of the CEO with the interest of the company by allocating performance shares to the CEO. This is my first answer. Maybe David can speak about his own position with respect to his holding and investments. I'm turning over to him.

Well, we are in a complex situation for Euroapi in the industry. We won't repeat what was said in this respect. It is critical that we provide a strong action with new strategy, which we have detailed in this respect, I want to be cautious because I'm bound by insider dealing requirements, I don't want to say anything as to my propensity of buying any shares. So I'm being cautious, and this is why I haven't purchased any shares so far.

Would you like to have a follow-up question? The answer is no. So let's move on to another question. Question number two.

Good morning, Chairman. Good morning, everyone. I'm an individual shareholder of Euroapi. And I have experienced some spin-off situations in my career especially in the pharmaceutical industry. But this is the first case of a spin-off when I see such a disastrous loss in value in such a little time. And I guess that all shareholders who have been suffering from this harsh deterioration. I cannot but ask themselves questions of how company, which floated at an IPO price of EUR 17, if I'm not mistaken, find himself with a stock price of EUR 1 or some 2 or 3 years down the road. So we can but have questions whether there was any price rigging, whether there was any [ consumment ], any [ cheating ], whether things were done by the rule. These are questions that I also ask myself. The company cannot collapse and I've been experiencing and leading a number of companies have started working in a company, which had 140,000 employees. So you don't see companies collapse within just 2 or 3 years. You find phenomena of a slow decline by way of external competition, [indiscernible] competitions, but I've never seen such an unprecedented collapse.

I have a few precise questions, you have disposed of some businesses. You are in the process of disposing some other businesses. I would like you to explain why you have disposed of these operations knowing that you may be on the verge of disposing of some more plants and operations. I would like you to tell us more why you did so? What were the reasons? Was there due to lack of productivity? Was it due to the fact that the investments were not made at the right time to support these operations? So was it just a question of price or pricing? This is my first question because such degree of deterioration cannot be explained by just competition, knowing that competition will keep being stronger because countries like India and China will keep pushing. So if we don't have what it takes to fight on the competitive front, we'll be losing products one after another, even those that you are developing today with China and India having deeper pockets and many, many, many more capabilities with respect to research and development capabilities.

And last point I wanted to make is when I was submitting a plan to my Chairman at the time when I was actually working. I was always marking the upside for new products. Here, I have not heard you speak about new products. You spoke about the [indiscernible]. What will we be doing within the next 8 years because every time I used to submit a plan, I was focusing on the loss of gain revenue but also focusing on the next-generation products we will be introducing. I would have liked to hear you speak about the next products in detail in some degree of detail that you introducing with the associated revenue. This would be the least that you owe to the shareholders who still have some faith in Euroapi.

Thank you, in advance for your question. When you are saying that you are disposing -- that we dispose of businesses, you are talking about Haverhill, right?

Well, you did dispose of some businesses, if I'm not mistaken. Just to clarify your point, ask the Chairman.

So thank you for your question, sir. For these questions, I will let David answer them, [indiscernible] you only ask two questions. As to your first question, sir. generally speaking, the Haverhill location, experienced an accelerated decline in the forecast volumes. And I'm emphasizing forecast volumes with a significant loss to be anticipated without any prospect for rallying or reviving the business in an incredible manner. So the option of disposing of it just appeared as a key necessity to reduce the losses, which weighed heavily on the current and the future finances of the company and the Italian situation was the subject of a similar analysis, a bit more complicated because the product portfolio was a bit more diversified. But the reality is the same. It is loss-making location with a declining business where the potential sources of growth are more difficult to identify so much your first question. With respect to the product development plan, David will speak about it.

On the new products we are working on. You know that we operate in an industry which has regulatory risk associated with any newly developed products, you need to have those clinical trials, then there's the market authorization. There's always a degree of loss and waste, which is not due to our own business, but which is due to the very nature of the pharmaceutical industry. So I'm sure David will comment more on that.

And as to your third question, which related to -- the assumptions and the situation at time of the IPO, and the allusions. Well, we were spun off by a listed company. So I won't comment on that because all standard rules and regulations were obviously fully complied with, so I will not comment on that as to your allegations. And you've followed the process because you've been a fateful shareholders, and thank you for this. We experienced many developments and unexpected twist. We had quality issues. We had compliance issues. We had downward adjustments from our clients with our key clients, Sanofi, trading down significantly. So lots of things happened since the IPO in a few years, which required that we revised our assumptions downward and by redefining the Focus '27 plan. But as often the stock markets do amplify the economic and business realities of companies downward usually show the stock price collapse that you are mentioning, does not actually reflect the reality of the business.

Just wanting to come back to what you said about the disposal the plants. Well, 2.5 years ago, when the Focus '27 was being defined. We wanted to focus on the number of items not to spread ourselves to thinly going on all fronts. And we had 6 manufacturing plants at the time which required hard work and efforts across all of that manufacturing scope, including [indiscernible] Frankfurt and Budapest, which meant that we had to make clear choices on where we wanted to maintain our financial investments, our CapEx and cash investments while acknowledging the hard work which we had to engage in to rally and turn around the situation. So we made a clear choice to mothball and dispose of the Haverhill and the Brindisi plants in the U.K. and in Italy because we couldn't be everywhere and the utilization rate of equipment and tooling in the plants was too low so that without any identified source of growth, without being to rally and turn them around quickly enough.

Now with respect to our product portfolio, your question was very relevant because these are questions which keep us busy including [ Laurent ] for R&D and [ Frederic ] for the sales forces. Today, our API portfolio has mature ingredients, possibly somewhat oldish, which could have suffered with respect to the renewal process. We did suffer some failures with the attempt to develop new products where these failures connected with R&D and development issues where they associated with market issues possibly was -- where these failures were associated with the full decision or poor inputs, which we didn't challenge enough at the time, not enough. But possibly -- but we called change history. This is what you said, and this is what I'm asking my teams, and this is the question we are asking ourselves, what are we to do today to improve the future?

With respect to our product portfolio today, we are working on a number of areas. We cannot imagine today that without breakthrough types of innovations that we'll be able to develop APIs in Europe, which will be competitive. You have mentioned it yourself in the question you asked. So we are working with the innovation and R&D teams as well as with a number of partners to see how we can do things differently. We are not focusing on the CDMO product. We are developing with some of our clients, their next-generation products and we want to strengthen the health sovereignty dimension. seeing how a product which moved out of Europe 20 or 30 years back, how it could be reintroduced in Europe. If it [indiscernible] it would only have been on my orders today. We are well positioned to move forward on a number of products. Obviously, I cannot confirm anything today. I cannot tell you about this neither in quantity nor in value to industrialize the first product later this year or sometime next year, a new product that we are currently developing with the CRO on the back of innovative processes to potentially be able to repatriate products from Asia to Europe and we introduce them in the near future. But as Emmanuel said, the manufacturing and thus realize processes are lengthy [indiscernible] you seem to know well that the process to authorize our processes as well as the clients' processes to have clearance for using these APIs. All this takes time. It's too early today qualify and even less to quantify things, to quantify or even less to qualify things, but we are working hard on this.

Number two, we need to draw [indiscernible] on why we earned in the last few years and what questions we need to ask ourselves and what processes we need to adjust making the right decision today to make sure that 2 or 3 years down the road, when this process go live and reach maturity, then there's -- that they reach a market so that we can market them.

Yes, I would like you to try to limit your questions.

I'm an individual shareholder. I have two questions. First, what is the impact of the Straight of Hormuz closure on your supply chain and on Asian competition? And second question, what proceeds are you expecting to obtain from the disposal of Brindisi?

Thank you for your questions. The first question about the Straight of Hormuz. There's, of course, an impact on the prices, but there's also an impact in terms of reassurance that we could indeed obtain all of the ingredients we need either solvents or active ingredients for the production of our APIs. To date, all of our teams have been working very hard meaning that we have experienced 0 issues in shipping our products and no impact on all of production that is scheduled for the coming months. There's a price impact that I cannot really quantify and might [ mean ] relatively reasonable to date, but there is a little bit of scarcity on such a product, which is driving prices up not -- I didn't use the right word in French, but that may have a price impact, but the financial impact on the group as a whole will be low. And then it will be up to our sales teams to engage in discussions with our own customers, with our customers to see you whether these price hikes need to be passed down.

You're also talking about competition. Interesting question, we don't currently see any significant drop in our competitors, but we know where we need to be ready, which is why our sales teams are already talking to our customers to potentially draw benefits from this situation because, of course, we wish to position ourselves as a sovereign producer with Europe-based plants and limited deliveries with limited deliveries of raw materials from Asia. So let us make this weakness into strength.

Your second question was about Brindisi. It is true that we said that we wished to stop our activity in Brindisi. We said that the investments or rather the disposal or the divestment would happen within the framework of the plan, but I cannot really comment any further in order to avoid compromising the potential disposal of the site in the coming weeks and months.

Hello, I'm [indiscernible]. I'm an employee, a very small shareholder. And also union representative for the CFDT Union. I have a question for Mr. Blin and Seignolle. Let me give you a bit of background. You launched a competitive plan in France, highly complex, 4 modules, 1 at head office, 1 in [indiscernible] all of that will cost much more than EUR 7.5 million than a voluntary resignation plan. And all of that is generating a huge amount of anxiety and everything needed to be started again from scratch. And there are great many outside consultants working on the case. You need to react. You need to change, and you need to have a voluntary redundancy plan. You were talking also about renegotiating the collective agreement. What we have noted, Mr. Seignolle your fixed pay package is the same. Your variable is 102.5%. The compensation and benefits are okay for everyone, the 80 to 100 business leaders have LTIPs the difference between the 10% best paid and 10% worst paid in the company was 4.8% in 2024. I don't have the figures for 2025. But the comparison is already completely extravagant compared to Sanofi [indiscernible] and Gas price is at EUR 2.2. The company is spending at least EUR 700,000 for around 40 people in the -- 40 of the best paid people for their company cars. While operators and technicians and workers are suffering from higher oil prices. Do you also believe that [indiscernible] has been asked to tighten their belts. There are still seminars organized for more than 50 people in outside venues.

My question, do you plan for the members of the Board, you, Mr. Seignolle personally, and the management team, should you not take part in the collective efforts that are asked for all. If nothing happens, I do not believe that your French site will bow their heads quietly. I am here to warn you because either [indiscernible] picture is being painted for you, or you are turning a blind eye.

Thank you, Mr. [indiscernible]. I'm sure you're speaking on behalf of your colleagues. You're right. I don't think we need to go back to discuss the reasons or details of the plan, but what you will have understood is that we are experiencing a drop in sales of around 10% this year, like-for-like lower volumes, notably for Vitamin B12 just to talk about the French side in [indiscernible] also across the company. Of course, this requires adaptation of the company of the organization, and therefore, efforts which are asked from all employees. Unfortunately, this will mean layoffs, and we're working very carefully on the layoff plan, and I think that the dialogue we found with the unions is going to allow us to move forward, and I believe it will be very important to continue to work with the right people, with your colleagues on site, including head office in Paris, but also Frankfurt, to make sure that things can run smoothly. I am pretty confident in the ability of our teams and HR operations who are in the field on a day-to-day basis to handle this. And we do have information from the field, both good and bad news and that we are factoring this in.

You made a comment about sharing the efforts. The answer is yes. But you know very well that the discussion about the collective agreement has not yet started. It will start in July. And of course, when we discuss these types of issues, we will need to look at all employees and all needs and what makes sense or no for the company. Let me remind you, and you said so, too, everyone needs to remain driven, including -- despite a difficult situation, despite a layoff plan, I would prefer to look towards the future. And I believe that the plan we have can help us to boost innovation with products or other items or sales efforts made by [ Frederic ] and his sales teams all over the world.

Thank you very much. madam, for your question. It's, of course, important for the Board. It's also one of the reasons why we're particularly happy to have employee Board members. It allows us better access to the grassroots realities of the company. So many thanks for that.

We have asked the board -- at the board, we have asked management to work in a dialogue with social partners with all of the stakeholders. That is -- it's the only way to do things. And it's the only way that this board would support. And anything that contributes to social dialogue is more than welcome. That is, for us, a crucial principle. And we're closely monitoring the manner in which this is being implemented.

Second. When I joined the Board as Chair a year ago, I ask for my compensation package to be lower than that of my predecessor. Just to let you know, without commenting more broadly that for all of the Board leading by example is very much part of the equation. There are different ways of doing this, but it must be the basic premise. That is also one of the conditions of successful transformation, social dialogue and management leading by example. These are principles in which the Board strongly believes. There are various, of course, manners of expressing this from one person to another, from one body to another, but these are the basic principles.

Very short comments. So basically, in this room, everyone is losing out. Shareholders are losing money. The state potentially too. And the only winner in the room is the CEO, with 102% of performance pay. When I chaired a Board of Directors and when we had a CEO who would destroy shareholder value, I would either punish or eject and then I have a sense that there is [indiscernible] impunity, which I consider as an injustice. What efforts have been made by the CEO? None. Employees are going to lose out. Shareholders are going to lose out and the only person who will be okay is the CEO. I would like to know when does one actually verify -- I have nothing against you personally, but when do people actually say the CEO is running the company properly. So I can tell you very clearly that I shall not be voting your resolutions.

Thank you. I believe we've already answered on that. But perhaps just to repeat the same thing. In the context of the company today and in 2025, the Board of Directors considers that the performance of the CEO is satisfactory and that he has implemented all necessary actions in the interest of the company's transformation.

Sebastien, before proceeding with the vote, let me update the quorum. In the presence of shareholders, we have 3,229 shareholders owning 65,601,465 shares, i.e., 68.94% of the share capital. And I think we can now proceed. [indiscernible] will be showing you a brief video.

Ladies and gentlemen, the box you have been handed is strictly personal. The number of votes that you have is displayed on the screen. The only buttons you will need to use are the green, yellow and red ones. The others do not count. Green is for. Yellow is abstained and red is against. Each of the resolutions will be read out. And then you will immediately have the opportunity to vote upon them. The vote is open. You will hear the vote is open, you will see a rectangle that indicates the countdown of the seconds remaining for you to vote. When the countdown is finished, you will hear the vote is closed, and it will no longer be possible to vote. The results will be displayed on the screen a few moments after the voting process will be closed. Finally, please switch off your mobile phones during the voting process. And please return your voting devices as you leave the room.

So let us start with Resolution 1, approval of the financial statements for the year ending December 31, 2025. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 2, approval of financial and consolidated financial statements for the year ended December 31, 2025. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 3, allocation of loss for the financial year ending [ December 31, 2025 ]. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 4, approval of the regulated agreements entered into between the company's affiliates and Sanofi Group. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 5, renewal of the term of office of Mr. Blin as company director. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 6, renewal of Ms. Elizabeth Bastoni's term of office as Director of the company. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 7, renewal of Ms. [indiscernible] term of office as Director of your company. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 8, renewal of Sanofi [indiscernible] term of office as a Director of your company. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 9, renewal of [indiscernible] term of office as Director of the company. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 10, renewal of Mrs. [indiscernible] term of office as Director of the company. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 11, renewal of Mr. [indiscernible] term of office as Director of the company. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 12, ratification of the cooptation of Mr. [indiscernible] as Director of the company. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 13, renewal of Mr. [indiscernible] term of Office as Director of the company. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 14, approval of information mentioned under Article L22109 of the commercial code regarding to the compensation of corporate officers paid in financial year 2025 to corporate directors. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 15, approval of the fixed, variable and exceptional components of the total remuneration and benefits of any kind paid during the financial year ending December 31, 2025 all awarded in respect to the same financial year to Mr. Emmanuel Blin in respect to his office as Chairman of the Board of Directors of the company. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 16, approval of the total compensation and benefits of any kind paid during financial year 2025, all awarded in respect to the same financial year to Mr. David Seignolle in respect of his office as CEO of the company. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 17, approval of the variable elements of the remainder of the remuneration of the -- until 31st December 25 to Mr. [indiscernible] as CEO of the company from March 3, 2024 to December 9, 2024. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 18, approval of the remuneration policy for members of the Board of Directors. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 19, approval of the remuneration policy for Mr. Emmanuel Blin, Chair of the Board of Directors. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 20, approval of the remuneration policy for Mr. David Seignolle, CEO of the company. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 21, ratification of the transfer of the registered office, ratification of the decision of the Board of Directors to transfer the company's registered office and to amend Article 4, registered office of the Articles of Association. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 22, authorization given to the Board of Directors to purchase [indiscernible] transfer shares in the company. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 23, authorization granted to the Board of Directors to reduce the share capital by canceling shares under the authorization to repurchase the company's own shares to buy back.

[Voting]

The vote is closed. The resolution is carried. Resolution 24, authorization to be granted to the Board of Directors to grant free shares existing or to be issued resulting in a waiver by the shareholders of their preferential subscription rights. The vote is open.

[Voting]

The vote is closed. The resolution is carried. Resolution 25, powers for formalities. The vote is open.

[Voting]

The vote is closed. The resolution is carried. And that is all pertains to voting.

Thank you. Thank you for coming. Thank you for participating, and this closes our General Meeting for 2026. Many thanks.

Ladies and gentlemen, welcome to the Euroapi 2025 Full Year Results. The call will be structured in 2 parts; first, a presentation by the Euroapi Group management team represented by David Seignolle, CEO; and Olivier Falut, CFO. Afterwards, there will be a Q&A session.

[Operator Instructions]

I will now hand over to Sophie Palliez, Head of Financing, Treasury and shareholder engagement. Madam, please go ahead.

Thank you, Laurent, and welcome, everybody. Before we start this presentation, we would like to emphasize that some of the information we will share with you today is looking forward and not historical. This information is based on projections and assumptions concerning Euroapi's current and future strategy, future financial results and the environment in which we operate. These looking forward statements and information, do not constitute guarantees of future performance. They may be subject to certain risks and uncertainties, which are difficult to predict and generally outside the control and they could cause actual results, performance or achievements to differ materially from those described and/or suggested.

That said, let me give the floor to David Seignolle.

Thank you, Sophie, and welcome, everybody. Let me begin on Page 5 with the key takeaways from 2025. Our teams thought on all fronts to protect our market position in an increasingly competitive environment. For example, Vitamin B12 as mentioned here. It was also another year of declining API volumes for Sanofi. Fortunately, on the Sanofi side, this was partially offset by a strong commercial CMO activity, particularly in anti-infective and skin care. At the same time, we saw growth in sales of key APIs with other clients such as opiates, et cetera, et cetera.

While the top line was under pressure, we continue to make strong progress on everything that we can control. We sustainably reduced our external expenses and our personnel costs. We maintained strict working capital discipline with another year of improving inventory management, and we continue to invest selectively in CapEx to prepare the company for future growth. All of this reflects a real strengthening of our cost discipline across every function. Despite the top line headwinds, our transformation remains firmly on track. We have executed the initial phase of our plan on schedule in all the areas we control, some even earlier than planned. That includes our product portfolio rationalization, our industrial footprint simplification and our organization and processes.

Taking a quick look at 2025 from a financial perspective on Slide 6. Net sales came in at EUR 848 million, with Sanofi sales down 26.4%, but other clients up 9.7% as reported. Our core EBITDA came in at EUR 66.2 million, a 31% increase from 2024, with a core EBITDA margin of 7.8%. Our EBITDA was close to EUR 10 million versus negative EUR 44 million in 2024. CapEx stood at EUR 77 million, with 55% of that allocated to growth and performance projects and supporting the company's return to back on track for sustainable long-term trajectory.

Turning in to Slide 7. The challenges we faced this year did not weaken our commitment to sustainability. First, our near-term carbon emission reduction targets were validated by the SBTi. This is a strong confirmation that our trajectory is aligned with the Paris Agreement. Looking at our 2025 emissions, we are already seeing meaningful progress. We've achieved half of our targeted reduction for Scope 1 and 2, and we have already exceeded our target of Scope 3. This is a major milestone for the company.

On diversity, given the current reorganization underway, we fell short of our 2025 targets on diversity. However, it is important to keep a long-term perspective in mind. In 2023 and 2024, our diversity ratio increased and even exceeded our objectives. The underlying trend remains positive. And on safety, which is something a bit painful to me, but despite our continuous effort, the injury rate remained stable in 2025. Most incidents were minor often related to slip, trips and falls. But that said, even one accident is one too many. And the Accident Prevention Plan launched in 2025 will continue to be rolled out in 2026 with a stronger focus on record analysis and proactive prevention.

With that, I will now hand over to Olivier, who will walk you through our financials in more detail, and I'll come back later to look at the perspective.

Thank you, David. We'll start the review of the consolidated accounts with the evolution of net sales. Net sales reached EUR 848.2 million in 2025 versus EUR 911.9 million in 2024, representing a decrease of 7%. The current impact on net sales was almost -- the currency impact, sorry, on net sales was almost nil. And the 1.2% perimeter impact is collated to the Haverhill divestment. On a comparable basis, sales declined by 5.9%.

If we take a look at the net sales per activity on Page 10 now. API solutions to Sanofi decreased by 34.2% due to, first, an unfavorable comparison base related to the stock clearance of buserelin, which positively impacted 2024 sales of EUR 21 million, and the decline of volume of Sevelamer in H1 2025 and the sales of Haverhill at the end of June 2025. Last, EUR 50 million reallocation of Opella sales to other clients starting in May 2025, following the change in control of Opella. Excluding Opella sales to Sanofi in 2025 compared to 2024 only would have decreased by 25.7%.

CDMO sales to Sanofi decreased by 4.9%, higher demand of Pristinamycin and PLLA commercial sale contracts was more than offset by the decrease in revenue from the Phase III BTKi inhibitor project. API solutions to other customers increased by 18.6% benefiting from first and an active cross-selling strategy, then 31 additional new clients in 2025, we generated high single-digit net sales in 2025.

Last, the EUR 50 million reallocation of Opella sales without the change, sales to other clients would have increased by 4.5%. CDMO sales to other clients decreased by 13.6% as a result of the downsizing and discontinuation of pre carve-out of mature commercial contracts and the slowdown of early stage CDMO business.

Turning to the core EBITDA evolution on Slide 11. Core EBITDA reached EUR 66.2 million in 2025. This represents a 7.8% margin, up from 5.5% in 2024. The evolution in core EBITDA margin was driven by the following elements. The stock clearance of Buserelin in '24 for EUR 21 million or minus 0.9% points; volume impact for minus 1.0 point, which is mainly due to the discontinuation of CDMO contracts; price and mix positively contributed by 1.3 points; a positive 0.3 points from the discontinued products.

Industrial efficiency led to an additional 1.2 percentage point of core EBITDA margin, energy and raw material increase the margin by 0.9 points, strengthened financial discipline and lower personnel cost in OpEx allowed to gain 1 point of core EBITDA margin while Brindisi weighted minus 1.4 in '25 and on the other hand, the divestment of Haverhill allowed to gain 0.6 points.

Total nonrecurring items on Page 12 now. Total nonrecurring items we stated from core EBITDA -- from EBITDA, sorry, stand at EUR 56.3 million in '25. The vast majority of these exceptional items are directly related to the FOCUS-27 plan. We recorded EUR 36.1 million of idle costs, which is mainly consolidation of the Frankfurt site. We also recognized EUR 6.6 million of internal and external costs related to the transformation of the company. Finally, employee-related expenses, in part linked to the redundancy plan amounts to EUR 13.7 million, which mainly concerned again Frankfurt and the divestment of Haverhill.

Looking now at items below EBITDA on Slide 14 -- Slide 13, sorry. Operating income amounts to negative EUR 130.6 million in 2025 compared with negative EUR 120.4 million in 2024. Depreciation and amortization remained broadly stable year-on-year. The increase of asset impairment to negative EUR 77.8 million reflects discontinuation of vitamin B12 productivity project in Elbeuf following the reassessment of its economic potential. And a revision of gross assumptions to align with the latest market dynamics.

As we move below operating income now, net financial expenses improved EUR 7.5 million in 2025 versus EUR 19.1 million in 2024. This decrease reflects lower financial expenses following the implementation of the financing plan. The 22.89 sorry, income tax -- sorry, EUR 72.9 million income tax expense includes the depreciation of tax assets following the update of growth assumptions. Taking together, these items results in the net loss of EUR 211.2 million compared to EUR 130.6 million lost in 2024.

Turning to working capital dynamics on Slide 14 now. As part of our commitment to improve working capital, we have maintained the progress achieved on both months on hand and DSO since the implementation of FOCUS-27. Months on hand stood at 7 in 2025 and DSO at 36.

CapEx now on Page 15. CapEx reached EUR 77 million in 2025, with 9% of total 2025 net sales. 65% of CapEx was dedicated to growth and performance, mainly supporting the capacity increase and efficiency projects on peptide and oligonucleotide, prostaglandins and corticosteroids. 21% of CapEx related to compliance. As a reminder, these investments address safety, quality and environmental topics and a significant share of them are mandatory. 24% of remaining CapEx corresponding to the maintenance of the existing asset base.

Moving now to Slide 16, which covers the evolution of the net cash position. We ended 2025 with a net cash position of EUR 68.2 million compared with EUR 24.6 million at the end 2024. Cash flow from operating activities generated EUR 128.5 million of the cash in 2025. This was mainly driven by the working capital, which contributed for EUR 120.1 million. This improvement mainly reflects further reduction in inventory totaling EUR 38.9 million, decrease of trade receivables supported by factoring program launched in March 2025.

Out of the EUR 45.4 million reduction of receivables, EUR 26.5 million was factored by year-end, with remaining decrease reflects immense cash collection. Other current assets and liabilities includes EUR 36 million paid by Sanofi to reserve minimum availability capacity for 5 selected products, EUR 21 million upfront grants from the IPCEI program, EUR 6.5 million related to the monetization of research tax credit in France. Including the EUR 77 million of CapEx, it was reviewed in previous slide, free cash flow before financing activities stood at EUR 51.5 million in 2025 compared to EUR 15 million at the end of 2024. Finally, cash from financing activities included a cost of debt of EUR 3 million in significant decrease following the debt for refinancing in 2024.

This concludes the review of the 2025 consolidated results, and I will hand it back to David.

Thank you, Olivier. Before moving to full year 2026 guidance, let me walk you through the main operational and business drivers that will underpin sales, profitability and cash development for the year.

Net sales will be strongly impacted by the rationalization of the API portfolio that we have engaged in 2 years ago. As we've said, the discontinuation of API accounted for around EUR 70 million of sales in 2025 including EUR 20 million related to stockpiling. Although the manufacturing of these API has been stopped, we still expect a residual EUR 10 million to EUR 15 million revenue from these products in 2026 as we continue sales for existing inventory. This means between EUR 55 million and EUR 60 million headwind in 2026 that we decided upon. The other impact are the continued decrease of the sales to Sanofi and further discontinuation of commercial CMO contracts.

Turning to profitability. The industrial efficiencies and additional OpEx savings we anticipate should be offset by unfavorable fixed cost assumption, resulting from lower volumes. Our EBITDA will also be impacted by the restructuring costs that are foreseen in 2026. We will maintain a strong focus on working capital discipline and the CapEx to sales ratio is expected to be around 8% of sales.

All in all, on Page 19, due to the impact of our portfolio rationalization and considering the challenging business environment, we expect a decrease of around 10% in net sales in 2026 on a comparable basis. Our own decision to streamline our portfolio accounts for around 90% of that decrease. In this context, we will accelerate our transformation to protect profitability and we expect to maintain the full year 2026 core EBITDA margin broadly in line with financial year 2025.

Moving to the next slide and an update on FOCUS-27. On Page 21, let me recall, first, what FOCUS-27 was fundamentally about. It was behind around four structural pillars to reshape Euroapi into a more competitive, more profitable and more resilient company. First, streamlined API portfolio. We are concentrating on highly differentiated and profitable products, reducing exposure to commoditized segments where structural pressure is intensifying. Second, a focused CDMO offer where we are leveraging recognized capabilities and strong technology platforms to position ourselves for complexity, reliability and regulatory excellent matters most.

Third, rationalize industrial footprint and disciplined CapEx. We are simplifying our manufacturing network and prioritizing high-return investment and improving asset utilization. Fourth, organizational transformation. We are building a leaner, more agile company, aligned with our strategic priorities and able to compete in a faster-moving environment. These 4 pillars remain absolutely valid today.

On Page 22, let's have a look at what has been delivered over the last 2 years. Despite the demanding environment, we have executed the core structural actions of FOCUS-27 and reinforced our fundamentals. On the portfolio, 66% of our sales in 2025 are now coming from differentiated products. This compares to 57% at the end of 2023, and we are on track to achieving our target of 70% by the end of 2027. The planned discontinuation of the low-margin product was almost completed at the end of last year, which will impact our 2026 top line, as already said, accounting for 90% of our top line reduction. Regarding the CDMO goals, 70% of the projects are late stage, improving visibility and reducing the risk.

On the industrial footprint, Haverhill has been divested, productivity has improved across all sites. One workshop in Frankfurt has been mothballed and 380 positions have been reduced across the company ahead of our original plan. On the organization and cost base, key functions have been reorganized, R&D has been refocused and close to EUR 20 million of OpEx savings have been delivered over the past 2 years. Overall, the Euroapi today is a leaner and more disciplined organization than it was in 2023.

Moving to Page 23. Capital discipline has also been a very strong priority under mothballed FOCUS-2027. This is clearly reflected in our CapEx trajectory investment decreased from EUR 137 million in 2023 to EUR 108 million in '24, EUR 77 million in '25, and I've even mentioned that we will be close to 8% for 2026 from a CapEx to sales ratio starting at 14% back in 2023. This reflects a deliberate shift towards stricter prioritization, higher return of projects and certainly better care and discipline around CapEx expenses. We have continued to invest in strategic platforms such as peptides, oligonucleotides and in high barrier APIs like prostaglandins and corticosteroids. At the same time, we took disciplined actions to discontinue the vitamin B12 capacity project following market acceleration and technical constraints.

Moving to Slide 24. Let me briefly step back at where we are on our key KPIs for FOCUS-2027. Since 2024, we have incurred EUR 44 million of transformation and restructuring costs, ahead of the 25% originally mentioned for those 2 years. This reflects the fact that the project -- or the restructuring program is ahead of schedule, but it doesn't change the total expense expected envelope of EUR 110 million to EUR 120 million, although we will do every effort to limit that.

On incremental core EBITDA, we had initially targeted EUR 75 million to EUR 80 million incremental by 2027 compared to 2024. However, with '26 and 2027 net sales now expected to be below initial assumptions, additional underactivity is anticipated. As a result, this incremental core EBITDA target will not be achieved in 2027.

On CapEx, EUR 185 million has been invested over 2024 and 2025 against an initial EUR 350 million to EUR 400 million envelope for '24 to '27. Although we maintain this envelope, we will be looking for all opportunities to either limit our CapEx to projects, offering the highest return and reinforcing competitiveness or optimizing the CapEx expenses. Let me be clear, this is not about slowing down. It is about allocating capital where the returns are sustainable and defensible.

Turning to Slide 25, sorry. As we have just discussed, FOCUS-27 and the transformation of the company are on track. However, over the past year, the business environment has evolved faster than initially anticipated. Competition from low-cost Asian players has intensified increase in price pressure in natural APIs. At the same time, we're also seeing large pharmaceutical companies outsourcing more late-stage and complex projects. This creates opportunities, but competition is obviously selective and execution must be precise. Sovereignty initiatives are promising, they have not yet translated into tangible economic incentives at this stage. But we are working or helping towards this evolving.

In addition to this external environment, it is fair to say that we also face internal challenges with early-stage CDMO road map progressing at a slower pace than anticipated and the discontinuation of the vitamin B12 project. This is a context in which we are accelerating and sharpening the execution of FOCUS-27 and launching new initiatives.

Moving to Slide 26. On the portfolio side, we will further reduce our exposure to commoditized APIs, structurally pressured small molecules and concentrate our resources on high barrier segments such as prostaglandin, corticosteroids and opiates. On these 3 segments, we have solid competitive advantage that we will leverage including further innovation programs that we have mentioned before. This includes technology edge and strong market position in prostaglandin as well as strong expertise and flexible capacity in corticosteroid and opiates.

On operations, we'll continue improving operational performance, standardizing and improving our processes, for example, through leveraging technology. We will also strengthen the commercial CMO business. We can offer a reliable and sovereign manufacturing to customers looking for derisking their API supply chain. This will help securing volumes and improved capacity utilization in our sites. On the organization front, we will further streamline structure, simplify processes and align skills and capabilities with a more demanding environment. We have done a lot since the launch of the plan, but we see further opportunities to improve our operating model towards the fit for purpose and leaner organization.

In parallel, we are launching additional initiatives, First, we will enhance commercial excellence and expand our API customer base in under-leveraged territories. Let me give you 2 examples. North America, which is the largest and fastest-growing API market worldwide accounted for only 8% of our total sales in 2025. If we go south to Latin America, we only serve 10% of the top drug product players over there. Second, we will refocus the CDMO business on strategic customers and/or complex molecules notably P&O, peptides and oligonucleotides. This means we will stop deleting our commercial efforts and contrate on strategic customers and products that we can succeed upon and increase focused on complex molecule projects, for example, high added value peptides and oligonucleotides projects, including RNA therapy.

First, we will optimize our supply chain to structurally reduce our costs while maintaining end-to-end console. This is one very important way to increase competitiveness and adapt to the current environment. Our objective is obviously to adapt the operating model to a structurally tougher market and restore a sustainable path to profitable growth.

Moving to our long-term ambition as a conclusion. While we recognize that the recovery is taking longer than initially anticipated, reflecting structural evolution of the market, we are taking the necessary actions to build a more competitive, sustainable and financially resilient operating model.

Looking towards the near future, our positioning is clear. We aim to be a European-based sovereign supplier of complex API, a reliable CMO partner and a trusted CDMO player for new drug development. At the same time, this positioning must be supported by a sustainable operating model with a competitive -- cost competitive supply chain, a lean and capital-efficient industrial footprint and obviously an agile organization. Our long-term strategy is anchored in discipline and certainly value creation. This is where our focus is now in the interest of all our stakeholders.

Thank you for your attention, and we are now ready to answer your questions.

[Operator Instructions]

We have a first question from Clement Bassat from Portzamparc.

Basically, I have four. The first one about the top line. So what is your 2025 base top line? I assume it is your published figure, minus EUR 70 million from discontinued API, which leads to EUR 778 million. And this would imply a top line '26 of EUR 700 million following your expected 10% decrease in tip line, just to confirm if I am correct.

Second question, so regarding the EUR 78 million impairment on Vitamin B12, does this include a portion of the CapEx invested from the current FOCUS-27 plan? And are you considering further impairment in 2026 following the discontinuation of the other API. Third question, just to confirm, you are maintaining restructuring costs at EUR 100 million. This is only cash related, spread through 2027. And finally, your CapEx was limited to EUR 77 million in 2025. So this decrease is a decision to preserve cash or just to adjust to your expected future top line?

Thank you, Clement, for all the questions. Let me -- I may ask you to repeat some at some point, just to be precise. But let me start with answering and maybe Olivier will step in at some of those. So the top-line assumptions that you have made, if I followed, I think, are not the way we think about those. There is no such comparable basis at EUR 778 million, which you mentioned, removing 10% of that getting to EUR 700 million. What we are looking is around 10% versus comparable basis, which you would only reduce the sales of Haverhill in 2025.

So you can make the math. I don't want to make it for you. We have not mentioned any specific numbers, but we are not seeing such a drastic drop as you calculated. On the -- I'll come back to the B12 impairment question. Yes, the investment of B12 was part of the EUR 350 million to EUR 400 million total envelope. Most of these investments on B12 were made in '23 and '24, some even earlier -- sorry, in '24 and '25, some even earlier to that to that period. So the impairments are related to that. There is no such plan to further impairment in 2026. There has just been the adjustment of these impairments plus the impairment we did on the terminal value of the company. And there is no such thing to do, to do anything else. I wasn't clear on the restructuring. I'll leave you to come back to it afterwards.

And finally, the CapEx of EUR 77 million in 2025. I think it's a bit of both. I think the company has been used to spending far too much money on CapEx in the past, probably referring back to the time that we were a large pharma company where the cash was not a problem. I think over the last couple of years, we have learned to be more disciplined with spending cash, spending CapEx, looking at different ways to fix problem than to invest in new equipment, maybe in some cases, reutilizing elements or not looking for the gold-plated solutions, but more the practical solution that a CDMO or CMO organization needs and not a large pharma.

So there is no such thing to say that we want to limit to the further growth. I think we're still committed to investing significantly in the future. And for that, we have a couple of projects such as IPCEI or the morphine project where we are looking at new ways of manufacturing the morphine and all of these projects being either funded by -- partially funded by France Relance and the IPCEI program. And there will be significant investments, but that will come at the right time. All in all, we need to look at a sub EUR 800 million revenue company should not be spending EUR 100-plus million on a yearly basis.

Yes, clement, can you go back to the question three on the restructuring, please?

You are maintaining restructuring cost of EUR 100 million, but I have in mind that restructuring costs are composed with cash and idle costs. So EUR 100 million for me, I understand this is only cash related expected in 2026, 2027 and maybe also 2028. Just to confirm, you are talking just about cash-related amounts.

Yes. So that is exactly -- the last part of your sentence is correct. It's talking about cash amounts. And it's only covering '26 and '27. We are obviously, as I said, have different views on the top line for 2026 and 2027 at this stage than was originally anticipated. And as a result, if we need to adapt the organization to those new levels, we will have to do. But there will be a time to engage in those discussions if they need to happen.

Now we have a question from Zain Ebrahim from JPMorgan.

Zain Ebrahim, JPMorgan. So my first question is just in terms of the China API increased competition that you're seeing. It sounds like Vitamin B12 is a key segment where you're seeing that competition, maybe anti-infectives as well. But can you talk through which divisions or product categories you're seeing that competition in? And how much of the headwind you're expecting in 2026 is due to price reduction on those product categories versus volume lost to some of the extra competition? That's my first question. Maybe I'll pause there and then I can ask my follow-up.

All right. Thank you. So look, I think the -- unfortunately, this is a strong industry as we see or China has entered into a strong industry-wide program, and we see that across various industries and it's valid in ours, and they are looking at every single product. The reality is we have the small commodity programs -- products, sorry, that are very much impacted because in this specific case, not only they are benefiting from large volumes from very low cost of labor, low energy costs, significant new equipment with, I mean, state-of-the-art, et cetera, et cetera, plus in some cases, subsidies by the government. So in those cases, it's quite difficult to compete.

Yet for whomever wants to supply and to get materials from Europe, we will maintain, and we have some of these customers. Now, I believe the trajectory over the next couple of years on those type of products is going to continue to decrease, and we will have to fight back and to provide answers in the cases we can. For the specific categories, I think it's all over the board. The reality, though, is we have quite a strong value proposition on the typical strength category of products that we have in the company.

Prostaglandin, we are the global leader in prostaglandin by either the number of products that we look, by the experience and history that we have and the quality of our products, and we aim to maintain that. We are actually reinforcing this offering by looking at different further improvements or innovation projects on site. We have launched, as you know, a strong capacity increase to support the growth in the future, and we continue to accelerate down this path.

The second element to that would be the opiate, where not only we benefit from a somehow protected market with all those morphine and derivative products, but we have -- we are working towards significant innovation projects in the future, as mentioned before, and these are benefiting not only for subsidies, but will be supported from our side, from CapEx investment to increase in the future. We don't necessarily foresee challenge on the price on that specific category either.

And then finally, the corticosteroids. I think the corticosteroid is maybe a little bit of a different animal. We are -- there is a lot of players in the world. We are the only one, except with one other site in the U.S., which is fully integrated from A to Z of manufacturing of corticosteroids outside China. This is a strength, especially when we talk about sovereignty. We have discussed about sovereignty through COVID and challenges. We see sovereignty through shelf nowadays. We see some geopolitical issues now, which may endanger some logistic routes further in the next couple of weeks and months.

So we still believe that this is not going to be simplified in the future and our sovereign solution will be helpful. That being said for corticosteroid, yes, we are challenged on price. Yes, we will probably do some efforts because we have significant projects to innovate and to improve our value proposition to cut costs significantly through new chemical routes in the future. That is what IPCEI actually want the, Work Package 2 of IPCEI is about, and that's a strong avenue for us to reinforce our value proposition in the future. I can't just further comment on the impact of volume or price related to our 2026 earnings. You had a follow-up?

That's very helpful. Yes, my follow-up was on the discontinuation of APIs is helpful in terms of the quantification of the headwind to '26 sales. So should we expect any further discontinuations in addition to what you've already planned? It was 13 API before, I believe. So just any further discontinuations, given the portfolio prioritization that you're undertaking? And can we expect to return to sales growth? Could we see that in the -- it sounds like obviously '26, you've given guidance. For '27, you said it's below expectations, but when can we expect to see that?

Yes. So that's a couple of questions. Let me just get them in order. So are we expecting further discontinuation of products? No. The answer is no. Now this being said, you never know what's going to happen. I think, it's healthy for any company to look at their portfolio regularly. At this stage, we have not decided to further prune our portfolio. Actually, we are looking at growing that. And that's part of our additional activities for commercial that we mentioned. We are looking to new geographies. We are looking to seeing if we can have additional offerings and how we would progress on that specific front. When are we expecting to grow was the second part of your question? Well, the earlier, the better, obviously.

What we are seeing for 2026 is still some reduction, as we mentioned. I just want to come back to the fact that 2025 saw a significant reduction in Sanofi's sales. But we just mentioned we gained 31 new clients and the sales to other clients and Sanofi was up close to 10%. So let's -- it's definitely a way forward that while we want to maintain some level of Sanofi, we know that the inherent share of the Sanofi business for the future is to reduce. On that specific front because maybe the question is going to come and I can anticipate it.

We are -- we have an MSA up until 2027 that we are working towards extending. We have already five products that are extended until 2032. One specific with Opella now until 2031, and we are working towards concluding the terms of the extension of the other products beyond 2027. So whilst we -- our focus is to manage the reduction of Sanofi over time, we are heavily focused on selling to other clients, cross-selling, acquiring new, et cetera, et cetera.

And there is -- and the first elements of the strategic move we did last year with merging the 2 organizations commercial into one and led by an expert in commercial operations in the CDMO and CMO space in our industry with the arrival of Frederic Robert in our organization is proving us right. The problem is, as you very well know, it takes time to bring new clients in and register those. So I would hope to see a continuous momentum into acquiring new clients and new sales into '26 and 2027.

[Operator Instructions]

Maybe we can move to the questions that we have from the website. There's a bunch of them. So I'm going to try to summarize them by key subjects. The first subject is about the CDMO business. Our analysis of the reasons of the slowdown of the pace versus what initially expected? And maybe what type of future we see in the CDMO business and how we managed to recover specifically growth in that field, so CDMO.

All right. So the CDMO, as I think mentioned earlier, was -- is indeed lower than anticipated, definitely not at the level where the equity story of the IPO was at. I think over the last couple of what we've learned over the last couple of years is, one, we need to be focused. We can't answer 250, 300 RFPs every year with the organization we have, with the resources we have, the sites and R&D labs that we have because that prevents providing the right attention to the clients, to the requests, the RFPs, understanding the exact needs, et cetera, et cetera.

So that's why we decided to be a lot more focused into either not the very, very early preclinical stage and to specific areas in which we know we have a competitive advantage. There is, we have 2 main R&D labs that support the CDMO, one in Frankfurt, which has very strong expertise on the P&O side and in Budapest, which can very much work on complex small molecules, such as the prostaglandin and others. In fact, we are still working with providing very complex and strategic projects for the future, such as, for example, developing the backbone of any future development of a large American Big Pharma. That's the first learning.

The second learning we had is, it's a lot more complicated than one would think to get into the CDMO world. CDMO world and the clients know that you get into a lot more questions that you need to answer around what kind of raw material will I be using? What kind of processes will I develop? How can I scale up? What will be the implication and the challenges that I will see. Navigating in all this ambiguity hand-in-hand with the customer is not something that this organization was used to in the past with working with one internal client only, which was Sanofi at the time. So all of this takes time to build the capabilities.

And I believe we are doing the right things. We are bringing the right talent, and we are working more hand-in-hand with the customers across all of this. For the future, what we see -- well, we see continuous, let's say, difficulty to navigate in this space because there are a lot of players. There are a lot of actually even Asian players that are coming in with different, let's say, approach to the business than European have. However, there is still place for all of us to work to provide local manufacturing, local scale-up with the right expertise and certainly proximity to the customers. The key point is we will also be thinking CDMO and CMO very much differently.

The CDMO is everything that I said, working very much in research and development, aligned or accompanying the customer through this journey of their own development. While CMO is a very simple tech transfer, smooth tech transfer type of approach with a reliable supply chain of existing commercial products. Those CDMO and CMO, as we want to differentiate, require a different set of skills. Different set of skills, either by our commercial and customer-facing individuals, and also on the site with very lean and effective and efficient, certainly operations on the ground. And as a result, we will approach those two businesses very differently moving forward to be able to answer our customers.

One question is about core EBITDA in 2015, which improved significantly despite revenue declining. How much of the improvement is actual versus temporary cost savings?

I guess on this area, the answer is quite simple. In terms of cost savings and improvement of the organization and the model, pretty much everything is sustainable. We improved the structure in terms of industrial footprint. We improved the model in terms of organization, in terms of SG&A. The R&D have been also redesigned. So I would answer clearly that the whole is sustainable, provided, that as I comment before, there is one-offs that are not sustainable, obviously, like the Buserelin issue, meaning impact of 2024. But for the rest, it's pretty much sustainable.

Those EUR 20 million of OpEx that we have mentioned are definitely here to stay and will remain as is. This is part of a new structure, a new baseline of our costs and everything that is being done at the site or in procurement and et cetera, will continue to bring efficiencies on a yearly basis.

Question on Asian imports. How can you compete against Asian imports? And where is your -- what do you think you have a sustainable edge to compete against those Asian imports?

So the -- how we can compete? I think there is, where and how, I guess, was the question, right? The key point is, we will not be able to compete on everything. And as customers just want price, I think it will be difficult, just on that pure front. This being said, difficult doesn't mean impossible. And as I mentioned earlier, we have a significant amount of our portfolio that is today still very much competitive and for which we further -- we have further innovation program to reinforce this competitiveness in the future, which will either allow us to increase commercial margins or to provide more competitive offerings to our customers. The second part is -- of the question was...

What are competitive edges in decisioning?

So that I mentioned. And then I think the second element is the fact that we are based in Europe. And as I mentioned, I think a lot of customers want reliable supply. Our reliable supply, our very China-independent supply chain, even for raw materials is actually today the only one available in Europe, let's face it. So for whomever customer in Europe or in the U.S. that want risk-free supply chain, China-independent supply, well, we are here available. This being said, I think on all those customers that want pure pricing, not really caring either about ESG or pricing, that's where I think we need to look at things maybe a bit differently. And that's what is mentioned in the cost of our supply chain improvements that we want to do in the future.

It could very well be that buying some raw materials or intermediates in a lower-cost country could be coming handy for us, not by depleting our sites, but by able to reduce the pricing that we will, in turn, be able to offer to our customers, increasing those volumes and actually, at the end, probably having higher volumes in this specific site that is manufacturing the API than we used to have. So I think we need to be able to play on both levels. One is top-notch player of premium quality APIs; two, being a European source, sovereign source to China independent supply or sovereign supply; and three, for those customers that want price, let's play here as well.

What is the current level of capacity utilization across your main API sites? And what level could you consider as normalized for the business? And do you have an objective in midterm?

So look, on the capacity utilization, I don't think we comment on that, but we would expect around, let's say, ballpark half of our capacity, a bit more half of our capacity being utilized at this stage. There is no surprise, if I say -- to any of you, if I say that in the chemical industry in Europe, given the cost structure and everything, all our -- all my peers, let's say, would agree that 75% to 80% utilization is a minimum to have sustainable long-term perspective.

In our situation, we know that at this stage, given the elements of underutilization that we have, which hurts or will hurt or which at least offsets all the efficiencies we are bringing from a cost standpoint, any additional volume that will fill up this available capacity will not only generate commercial margin, but also reduce those underutilization that hit our P&L. So we are working on that. And I think that's why we are discussing very heavily now, how do we increase our offering in terms of portfolio, how do we augment that and how do we play more on the CMO or European-made CMO type of market because I think that can be win-win for both customers and ourselves.

So do we have any questions online?

We do not have any more questions online?

Okay. So maybe one last to conclude on -- from the webcast. If you had to prioritize one key execution risk that could derail the execution of the plan, what would it be?

I think the key point today is we need to have everyone on the top line. We have proven over the last 2 years that we can -- that whatever we can control, we can simply deliver. And the teams have done an outstanding job across sites, across organization in the last 2 years to actually prove that. And that's why our -- despite the whole headwinds we've seen, our core EBITDA has increased significantly between '24 to '25 and that we landed 2025 with actually a positive EBITDA. And those, as we said, are sustainable measures that will keep yielding results in the future, and we expect further actually on that.

Now we need the whole organization to be working top line. And what I mean the whole organization is we need to be able to support our commercial folks that go and talk to customers on a daily basis. We need to provide them with high-quality materials with a competitive value proposition. We need to equip them with top-notch products, maybe provide them more products, provide with the right CMO value proposition, CDMO and R&D expertise. And definitely, when they need support and when they are able to seize clients, we need to be 100% on time, delivering against customer expectations. So I think the key point here is restoring growth will come by having a full organization focused on growth in the future to support the commercial folks delivering on that ambition.

Thank you. So I think if there's no more question online, this will end our webcast today. Thank you for attendance. Thank you for the questions. And as usual, the Investor Relations team and the management remains at your disposal, should you have any follow-up questions. Thank you, and have a good day.

Hello, and welcome to the Euroapi H1 2025 Results Presentation. Today's call is being recorded. [Operator Instructions] 

I will now hand you over to Sophie Palliez, Head of Investor Relations, to begin today's conference. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining Euroapi H1 2025 Results Conference Call. The call will be hosted by David Seignolle, Chief Executive Officer; and Olivier Falut, Chief Financial Officer. We will start by the usual short presentation of our results, followed by a Q&A session. I will voice over the questions received from people connected to the webcast. 

Before we start, I would like to emphasize that some of the information we will share with you today is looking forward and not historical. This information is based on projections and assumptions concerning Euroapi current and future strategy, future financial results, and the environment in which we operate.

These forward-looking statements and information do not constitute guarantees of future performances. They may be subject to certain risks and uncertainties, which are difficult to predict and generally outside the control of the group, and could cause actual results, performances and achievements, to differ materially from those described or suggested. 

That said, let me leave the floor to David.

Thank you, Sophie. Good morning, everybody. Before turning on to the key outcomes of our first half results, let me give you a quick snapshot of our results on Slide 4. At EUR 412 million, net sales were down 8.2% year-on-year. Sales to Sanofi decreased by 15.3%, while sales to other clients were decreasing by 2% Core EBITDA came in strongly at EUR 39.5 million, a margin of 9.6%. Consistent with our full year ambition, EBITDA was positive EUR 5 million compared to EUR 1.4 million loss in H1 2024. Finally, we invested EUR 37.8 million in CapEx, of which as per plan, 60% was dedicated to growth. 

If we move on to Page 5, beyond the number, which Olivier will detail further in about a couple of minutes, and to sum up the first half, 3 words stand out for us: resilience; discipline; and execution. They capture both the challenges we face and the tangible progress we've made so far.

First, resilience. The decline in sales to Sanofi reflects several headwinds. The API Solutions business includes a high comparison base in the first half of 2024 as well as a weaker sales of Sevelamer. This masked a strong momentum in our CDMO activity for Sanofi, which posted double-digit growth, underpinned by 2 major CMO contracts: Pristinamycin in Elbeuf; and PLLA, a promising API used in the skin care industry and manufactured in Vertolaye.

API sales to other clients were impacted by an unfavorable phasing of Vitamin B12, which offset the solid growth achieved in opioids. On the CDMO side, the ramp-up of CDMO contract signed last year was offset by the discontinuation of several legacy projects. In line with our FOCUS-27 strategy, we continue to proactively derisk our overall CDMO portfolio. 

Second is discipline. Despite the top line pressure, we have made meaningful and sustainable progress across the organization in managing costs and improving efficiency. Thanks to strengthened financial discipline, we have significantly cut back on external spending and reduced personnel expenses where relevant. What is important here is that these are not just short-term fixes. Most of those measures we have implemented are structural and long lasting. They lay the foundation for improved profitability going forward.

We maintain tight control over operating working capital and remain highly selective in our CapEx investments. Once again, it's all about focusing on what we can control without compromising our ability to grow tomorrow. 

Third, execution. From the outset, we knew that the success of FOCUS-27 would depend on thorough and timely execution. And today, we are beginning to show that we can deliver. The successful divestment of Haverhill in the U.K. marks a key milestone in reshaping our industrial footprint. Alongside the advancement of our API discontinuation program, these are concrete actions that are actively repositioning Euroapi onto a more focused, value-generating foundation. 

Finally, as you may have seen, we are very pleased to have signed on Monday our IPCEI contract with the French government that will subsidize Euroapi up to EUR 140 million across 3 work packages that we detailed previously. 

With that, I will now hand over to Olivier for more details on our financial performance.

Thank you, David. Let me start with a closer look at the evolution of the net sales on Page 7. As David just mentioned, total sales reached EUR 412 million, down 8.2% as reported, compared to the same period last year and minus 7.6% at constant exchange rate.

API Solutions sales decreased by 9.8% to around EUR 300 million. Sales to Sanofi decreased by 24.4% on the back of a challenging comparison back to H1 '24 which includes EUR 21 million positive impact from the stock clearance of Buserelin. As said, the decline was notably driven this year by a 29% decrease of sales of Sevelamer, the API produced in Haverhill. 

As mentioned in our press release, since the 1st of May, we have adjusted the allocation of the sales between Sanofi and the other clients, following the change in Opella majority shareholder. The impact on H1 was EUR 7 million. Total sales of Opella were EUR 31 million in H1 this year and EUR 70 million in '24.

API Solutions sales to other clients increased by 4.3%, as expected. We benefited from a solid growth in opioids, offset by a lower sales of Vitamin B12 impacted by a shift of volumes from H1 to H2. The cross-selling strategy continued to bear fruit and represented approximately 8% of the total API sales to other clients in H1 '25. 

CDMO sales decreased by minus 3.4% to EUR 112 million. In CDMO sales to Sanofi increased -- the Sanofi sales increased by 18.4%, driven by a robust demand of Pristinamycin and Poly-L-Lactic Acid.

CDMO sales to other clients decreased by 16.7%. Performance was affected by the planned downsizing and discontinuation of several contracts inherited from Sanofi. At the end of June '25, large companies represented 48% of the 50 active projects and 60% were late stage. 

Turning to the core EBITDA evolution on Slide 8. Core EBITDA reached EUR 39.5 million in H1. This represents 9.6% margin, down from 10.6% in H1 '24. In H1 '24, the stock clearance of Buserelin has impacted the core EBITDA margin by a positive 2 points.

Excluding this one-off impact, H1 '25 core EBITDA margin would have increased by 1.2 points, driven by several items. First, a positive 2.2 points from price and mix, which was partially offset by a negative volume impact of minus 1.9 points, notably due to Sevelamer. Secondly, a positive 0.2 points from the sales of discontinued products, which beneficiated from the exceptional impact of the stockpiling on the absorption of fixed costs. During the semester, these products represented approximately EUR 39 million in sales, of which an estimated EUR 10 million was attributed to the stockpiling. 

Next point was about a negative 0.6 points due to the industrial performance of our core manufacturing footprint. While the underlying industrial performance of the sites continue to improve, H1 '25 was affected by a temporary disruption of production in Elbeuf, triggered by a social issue. Reduced energy and raw material brought 2.1 points of margin.

And the next item is around the strengthen of financial discipline. Driven by this strengthened financial discipline, the 2.4 points improvement of OpEx reflected lower personnel costs, particularly in R&D and a substantial saving in external expenditure. A significant portion of these savings are sustainable in the long-term and will support the overall improvement of the company's profitability over time. 

Brindisi site weighted for 1.9 points in H1 '25 on core EBITDA. And finally, Haverhill weighted for 1.2 points. As you know, Haverhill was sold to Particle Dynamics on June 30th. The site contributes EUR 14 million in net sales and EUR 3 million in core EBITDA in H1 '25 consolidated results. 

Let's move to items below core EBITDA on Slide 9, sorry. Non-recurring items totaled EUR 34.6 million in H1 '25, of which EUR 39 million of exceptionals. The vast majority of those were directly related to the execution of FOCUS-27.

First, we recorded EUR 20.6 million of idle cost compared to EUR 33.8 million in H1 '24. We expected idle cost to decrease materially for the full year as anticipated. As part of the FOCUS-27, this includes notably the ramp down of the 2 workshops in Frankfurt. Second, we incurred a EUR 4.1 million change -- charge, sorry, relating to the transformation of the company and the implementation of FOCUS-27. 

Finally, employee-related expenses linked to the redundancy plans announced amount for EUR 12.4 million. H1 '25 EBITDA was EUR 5 million compared to EUR 1.4 million negative in H1 2024, reflecting increase in underlying efficiencies and consistent with our objective to be EBITDA positive in 2025. 

Turning to items below EBITDA on Slide 10 now. Operating income stood at a negative EUR 27.8 million in H1 2025 compared to negative EUR 33.4 million in the previous year. Net financial expenses decreased to EUR 2.3 million compared to EUR 8.1 million in the previous year as a result of the refinancing of the company in the second half of 2024.

Income tax -- income before tax was negative by EUR 30 million. The bottom line net income for the semester was EUR 28.5 million loss compared to EUR 34.8 million loss in 2024. 

Moving to CapEx now in H -- on Page 11. In H1 '25, we invested EUR 37.8 million in CapEx, representing 9.2% of the sales. The decrease versus last year is mainly due to phasing. 60% of this CapEx were dedicated to growth projects. 

Moving now to Slide 12 on net cash evolution. We ended the first half 2025 with EUR 1.1 million net cash position compared to EUR 25 million at the end of 2024. While we continue to tightly manage the operation -- operating working capital, the increase in inventory is linked to the seasonality of the production cycle. Months in hand stood at 7.8 compared to 8.5 in H1 2024. The decrease in receivables reflects the launch of a factoring program aimed to improving liquidity and securing cash inflows. EUR 40 million has been factored at the end of June 2025. 

H1 2025 DSO, which includes the impact of the factoring was stable compared to H1 2024, reflecting continued focus on cash collection. H1 2025 other current assets and liabilities were negative EUR 10.8 million. This includes EUR 18 million paid by Sanofi as part of the financing of FOCUS-27 as well as a sum of negative various operating items such as the payment of profit sharing, late invoicing of services and insurance compensation.

As a reminder, H1 2024 other assets and liabilities includes EUR 17 million -- EUR 27 million variation of VAT tax reimbursement. As said, we invested EUR 37.8 million in CapEx in H1 2025. The decline versus last year is primarily due to the phasing impact. For the full year, we expect to invest between EUR 80 million and EUR 90 million, which is in line with FOCUS-27 target. 

This ends the review of H1 2025 consolidated results. Let me hand over back to David.

Thank you, Olivier. Let's move now to 2025 outlook and a short conclusion before opening the floor to your questions. In light of the first half performance, we are adjusting our full year objectives to better reflect the current trends. In 2025, net sales are expected to decline low single-digits on a comparable basis versus slightly decreasing to steady, initially anticipated.

The second half performance is expected to strengthen, driven by stronger HP API sales, increased CMO activities, the continued inventory buildup of discontinued API and a catch-up in Vitamin B12 volumes compared to H1. This should also be supported by further positive momentum in the Pristinamycin and PLLA sales and sustained sales in opiate and opioids. 

Despite lower sales, we are pleased to reaffirm our core EBITDA margin target of 7% to 9%. In addition, confident in our ability to sustain the financial discipline that we demonstrated in H1, we now aim to be in the upper part of the range.

As a conclusion, over the past few months, we have proven our ability to stay on course despite headwinds, delivering with determination. We enter the second half of the year with confidence to successfully continue our transformation and execute our FOCUS-27 plan. 

Thank you for your attention. We are now ready for your questions.

[Operator Instructions] First, we have a question from Zain Ebrahim from JPMorgan.

This is Zain Ebrahim from JPMorgan. My first question is just on the '25 guidance. And it's really on the revenue side, what provides you with confidence in your expectation for a return to growth in the second half and particularly on the phasing of the highly potent API shipments and Vitamin B12 shipments and deferral into the second half? Do you see any risk that these could be deferred further by [ customers ] into '26? 

And then on the core EBITDA margin side, direct expectations towards the upper end of the range. But how much of that is driven by the Haverhill divestment versus the underlying performance because that looks reasonably strong as well from the OpEx reductions that you've highlighted? And how should we think about that in the second half? 

And then my second question is on the CDMO business, where you've continued to right-size the business in terms of the number of projects and continued to decrease. When do you expect the -- this right-sizing of the portfolio to be completed? And when can we expect the CDMO business overall just to return towards growth?

Thank you for the question. Look, let me give it a go and then maybe Olivier can add if needed. So the 2025 guidance, starting with your first one, we had anticipated such phasing in terms of H1 being slightly lower versus H2, and that's what we reflect today with a EUR 412 million in H1 and a low-digit decrease over the overall year. So there is no surprise for us in that specific case, and a lot of those phasing were anticipated. 

Yet what gives us confidence, back to your question, is exactly how I closed the call. I think we have quite some sales that are planned and where all POs are available, and that was phased and driven by, in some cases, production that restarted earlier this year after a very low decrease in inventory last year, if you recall. And therefore, those sales will be realized in H2.

And that's definitely valid for the high potent APIs, specifically prostaglandin, for example. We see continued increase in CMO activities. We mentioned some specifically to Sanofi and Pristinamycin and PLLA, where there is not only an increase in H1, but there is a strong overall performance in the year. 

And as a reminder, we are investing significantly on those products as well to further fuel growth in the future beyond 2025.

There are a couple of other elements. I think you called out specifically Vitamin B12 -- or Vitamin B12, we know what we sold in 2024. There was probably some inventory at the customers. That's how we feel at this stage, but we are fairly comfortable with having a full year sales of Vitamin B12 in line with 2024 numbers.

So the -- yes, there may have been some shipments delayed or some inventory that we hold at this stage, but we are fully confident in Vitamin B12 to be delivered this year. We see no specific reason why we would slide those sales into 2026 at present. 

If I go to your second question, still on the guidance and the core EBITDA, you've mentioned Haverhill. Yes, Haverhill is a potential improvement of the core EBITDA within H2 versus H1. We feel confident. You've called out a couple of elements that will ensure we continue to have strong momentum in the core EBITDA. I think we are confident, yet we want to be cautious and conservative in our approach and guidance here. I think we are definitely aiming for the upper part of the range that we have -- as we have said and written in the press release. 

I will be pleased to share more, but we'll have to wait for the full year results. But we are confident to be able to achieve that, and we are -- we'll be very happy if we can have some good surprises at the end.

But I can just give you with this that -- or leave you with this that I think the company is fully on, let's say, on with this topic of core EBITDA and EBITDA, by the way, because this is the first time we are having EBITDA positive. And everyone is working towards this objective to restore profitability, as it is the plan of FOCUS-2027. 

The last question you had was on CDMO. You have highlighted couple of elements, including number of projects reducing, et cetera, et cetera. Look, I don't think I can disagree with any of your analysis. I think at this stage there is a lot happening. We are facing some historical contracts that are coming to an end, and that's fair. We are having some number of projects that are decreasing. We are seeing some RFPs that are also -- the number of RFPs coming is also decreasing, but so is our -- so is the market and our competitors.

At this stage, what we are looking at is ensuring we are focusing on those right RFPs. We are focusing on those right projects where there is significant opportunity for us to be competitive and to be successful. The -- We are continuing our target to focusing on big pharmas and focusing on large values. The average RFPs that we are receiving is increasing. We are actually talking with a couple of customers of significant size or structural for Euroapi-size project. And that's where we are. 

But back to various conversations we have had either in these calls or with you guys in various sessions, I think the key point is around rebuilding the commercial momentum. You are very well aware that we have brought a new Commercial Head at the beginning of June. This was definitely one of my first targets as I took office. And after a couple of months of having [ Frederic ] with us, I am very pleased with seeing the right approach, the right questioning, the right ambition. And hopefully, that will start to deliver very, very soon.

[Operator Instructions] And up next we have Fynn Scherzler from Deutsche Bank.

So the first one is on the 1H EBITDA margin. I think beforehand you had pointed us to a stronger EBITDA generation in the second half of the year. So I'm just trying to understand, has there any -- has there been any meaningful phasing impact over the year so that maybe more EBITDA has fallen into the first half than you had anticipated previously? And implied in that is, why would the EBITDA margin fall again in the second half of the year? So if you could speak about the moving parts there and sort of how the first half has unfolded against your expectations? This would be very helpful. 

And then secondly, you've pointed us to the stocking impact that you have seen in the first half. What should we assume for the second half of the year? Should this be at a similar level? Or is there any reason to believe that it should be even stronger in the second half of the year? This would be very helpful. 

And then lastly, also in terms of phasing, the total adjustment amount that you've seen in the first half, should we expect sort of a similar magnitude for the second half? Or is there any meaningful changes expected in the different line items?

Okay. Maybe I'll start with the first 2 questions, and then I'll leave the adjustments for Olivier versus H1 and H2. So on EBITDA phasing, well, we were -- I think we didn't see or we didn't plan or we didn't get into the year with a very, let's say, phased EBITDA impact, although we had a slightly lower H1 versus H2 as a plan. In all fairness, we came in stronger in core EBITDA that we had planned and similar to your consensus or the overall consensus was bit on this. 

The EBITDA as well was positive, as you noted. I don't know if your question is very specific to EBITDA/core EBITDA, but I'll comment both. But the key point around phasing is two-fold. One, we are planning obviously a much stronger, or a stronger H2 in terms of sales versus H1, which, as we don't expect a very, very different product mix in there despite a bit more inventory stockpiling due to -- customer inventory stockpiling due to the product discontinuation. The product mix may be a bit adjusted in H2 versus H1, yet we believe that the EBITDA generation or core EBITDA generation from H2 sales should be -- I mean, should be also coming in strong. 

And the second element of answer to that would be that we have seen quite some improvements in our SG&A and expenses overall in H1 as part of our plan of FOCUS-27 and additional measures we have taken over the last 6 months. Those, as mentioned in the press release and earlier in our presentation, are actually recurrent and will be sustained elements.

So we don't expect any H2 moves in terms of EBITDA, core EBITDA similar to last year where it came in strongly in H1 and quite disappointing in H2. So that's why we are very confident to be able to be in the upper part of our guidance on core EBITDA. We haven't given any guidance specific to EBITDA. If you remember our call 4 or 5 months ago, I just said we will be EBITDA positive at the end of the year. Well, I'm confident in our ability to deliver that. Now we have generated EUR 5 million EBITDA at -- in H1. 

On the stocking impact, we are -- there is a bit of phasing of our industrial operations in H1 after depleting or improving significantly our overall inventory in 2024. A lot of the operations just resumed in January. And you know that our process are quite long. Our industrial processes can be long. And therefore, there is a lot of activity that has been done in H1 that will be actually sold in H2. And as a result, the working capital should improve from an operational standpoint. So operating working capital from inventory will improve in H2. And even though we are not giving any guidance on the cash flows, we should be providing a better answer in H2 than we have in H1. 

In terms of the adjustments, Olivier alluded to it a little bit during the presentation, but maybe you can give a bit more flavor, Olivier.

Yes. Clearly, we do not expect additional items in terms of non-recurring items. We expect the year to be with a decrease of the idle cost and globally speaking, exceptional item in the non-recurring. What occurred in H1 is the impact of the divestment of Haverhill, and we obviously do not expect such an amount in the second half. But for the rest, no significant change.

[Operator Instructions] So There [indiscernible] be no further questions over the call at the moment. So I'd like to hand back over to you, Sophie, for any questions via the webcast.

Yes, please. So, I have 2 questions from the webcast. One is about the definition of opioids. Can you please specify what APIs specifically fall under our definition of opioids? Do you want to... ?

Yes. So indeed, we are doing opioids and we are doing opiates. So those are 2 different treatments and one is pain and more is -- and the other one is more for addiction. Back to your question, we are selling in those specific case, naltrexone, naloxone, basically the family of the Nals product.

Okay. So I have another questions from the website with 3 questions inside a question. So I'm going to phrase one and then after the other. While CDMO sales to Sanofi increased, sales to other clients declined sharply. Could you elaborate on your strategy to diversify the CDMO client base and accelerate onboarding of large pharma and biotech clients?

Yes. True. So the decrease of CDMO sales to non-Sanofi clients is, as we mentioned, like the inherited contract that we got from Sanofi at the time of the spin-off, which eventually came to an end. What is interesting is some of those -- some additional contracts actually participating to offsetting those decrease, but not as much, and that's why you see the decrease overall in the business. 

Back to your question, what's our strategy? Well, the first part of the strategy was restoring the right organization to be able to deliver and to grow in the CDMO organization as much as in overall sales. And that's why, as I said, we have brought in a new Head of Commercial, which has spent, I think, 10 or 12 of his 15 last years in commercial, driving CDMO businesses in pharma and beyond. So I'm confident that now we are equipped with the head of the organization that has the right experience that is seasoned and that will be asking the right question and putting us in the right track to actually go and deliver. 

What we are doing for specifically big pharmas, where we are starting to reengage in the right direction for the first place and just making sure we have the right materials and all our commercial force that is available out there understand first, what is it that we can do to be able to explain that to our customers in the first place. That's also the reason why we joined forces with bringing those 2 organizations together that everyone has all the information, that is fully capable of depicting our strength and our opportunities with customers. 

But just to give you an example, when we get customers on site, as I have one in mind, in Q2, the customer was on site -- on a Friday in Frankfurt in that case. Back on Monday they were [ sending ] that they will send us a couple of RFPs specific to those technologies. So the expertise is there. It's about ensuring those customers know what we can do and then ensuring we will do the right things to deliver afterwards. But it's rebuilding this commercial organization and focusing on CDMO is one of the right topics or the priorities for us.

The second question is about Vitamin B12. Given the phasing issues with Vitamin B12 and recent fermentation-related momentum, what is your visibility on sustained recovery in this category? And what are the opportunities to expand your fermentation platform commercially?

So Vitamin B12, so we still feel confident about the full year, as I alluded to earlier, maybe the question came in before I mentioned that. The reality of this market is there is definitely a lot of capacity definitely in China. And despite this, we are able to -- and a price war actually that those competitors are performing against themselves.

We are still able to maintain some sales in B12 at the same -- similar level or same level that we had in 2024. So we know that we have a new process ongoing that is -- that should be finalized in the next quarters, and that should provide with additional competitiveness in the future to ensure we can maintain and sustain this business. 

The next question, which I like very much, is around what are we doing on the fermentation platform overall. Well, the fermentation platform for us is definitely a growth, definitely on CDMO. And maybe in 2 different ways. One is, are there specific products that we can sell just leveraging our fermentation capacities. The second is more about leveraging our fermentation expertise to develop cutting-edge processes on enzymatic or biocatalysis that will, in turn, enable to significantly improve the competitiveness of many of our other products that are in our portfolio. 

And if you think about processes such as the prostaglandin, such as corticosteroids, such as oligonucleotides or peptides, all of these are very cumbersome and lengthy processes with anywhere between 20 and 40 process steps. And that's where our expertise could be coming handy to improve the overall process times and costs, obviously, and drive competitive edge on the price that we will be able to provide the market. That's going to be some important R&D and industrial investment we will do in the next couple of years. And I can make a link here quickly with the IPCEI program where some of those are actually included into the IPCEI program.

And the third question is about CapEx. CapEx reached 10% of net sales in H1 nearly, with 60% linked to growth. Could you provide more detail on the nature of these investments and how they align with expected returns and the FOCUS-27 objectives?

So -- good. I think the -- what we announced something 1 year ago was that we will spend anywhere between EUR 350 million to EUR 400 million worth of CapEx in the next 4 years, which means like 2024 to '27. We have spent EUR 104 million last year, I think, on CapEx, and we are planning basically anywhere between EUR 80 million and EUR 90 million over the next '25 and '26 and '27, which is where we are planning now at this stage. So we are very much delivering against our ambition. The key focus for us is two-fold. One, making sure we spend the money where it matters; and two, making sure we spend the money right. 

On the latter part, we are investing into some procurement efforts or capabilities around CapEx. We are challenging the sites and how they want to do or to approach CapEx, et cetera, et cetera. So that's also why we are seeing some reduction year-over-year, not only because of the number of projects we are delivering, but because we are actually coming in better in every single project.

For which kind of projects we are doing, well, I mentioned earlier that we have some strong momentum, for example, on Pristinamycin or on PLLA, or Poly-L-Lactic Acid. Well, these are typically projects that we are investing. We are, I think, putting EUR 10 million on the Pristinamycin capacity enhancement in Elbeuf, of which some of it is covered by the capacity reservation, EUR 54 million that Sanofi agreed to do with us last year. 

And so -- and Olivier mentioned, we got EUR 18 million of that in H1. And this full capacity will be installed in 2026, which will further boost the sales of Pristinamycin in 2026. PLLA, we will also be adding capacity in our site in Vertolaye. And the other projects are some of which you already know, for example, the upgrade program in prostaglandin in Budapest or other programs in the other sites.

Thank you. So we don't have further questions from the website. Any questions from the conference call?

We have no further questions over the conference call.

Okay. Thank you. So it's time to end this presentation. As usual, we remain at your disposal for any further questions you may have. I guess time also to wish you a nice summer. 

May I hand over to David for a quick goodbye or something...

No, thank you. I think we are excited about where we are and the trajectory. And we'll be happy to come back in March next year with some interesting closure or financial 2025 numbers. Wishing you a beautiful holidays, everyone. Thank you.

Thank you.

Thank you for joining today's call. Ladies and gentlemen, you may now disconnect.