Fnac Darty Aktie

Good evening, and welcome to this conference call for Fnac Darty. Mr. Jean-Brieuc Le Tinier the Chief Financial Officer, will be facilitating this call. Over to you, sir.

Thank you very much. Good evening, everybody. Thank you for attending our conference call for the presentation of activity for the first quarter 2026. Tonight, I'm joined by the Investor Relations team, Domitille Vielle and Laura Parisot. I'll be presenting our results, and we will then take your questions. On Slide 2, you can see the key elements for the first quarter that we will be detailing throughout this presentation.

Our group's revenue has been up by 1% on a like-for-like basis on the quarter, driven by the very good performance of the rest of Europe and of our sales online. Our gross margin is also up with a 10 basis point improvement against the first quarter of 2025. The improvement of subscription services, particularly Darty Max has offset a negative product mix. Indeed, some categories that are strong contributors to the group's gross margin have been declining throughout the period like book sales, for example.

Of course, we'll come back to EPs Group's public tender offer that was filed on the 10th of March 2026 with the AMF French Financial Market Authority, which should be completed in the second half of 2026. On Slide 3, as I said in my opening remarks, Fnac Darty reported in the first quarter revenues that are up by 0.9% on a like-for-like basis. Our online sales amount to 22% of the revenues for this period and are up by more than 5%.

Click & Collect, which is a key metric of our performance, accounts for half of our online sales this quarter. Now if we look at our performance by category, the positive signals observed at the end of 2025 on the sales of domestic appliances are still there. Small domestic appliances are still showing a good performance and large domestic appliances are growing again.

Technical products are also improving, thanks to good sales in computers with the renewal cycle of pieces sold during COVID, the end of Windows 10 support, but also the highly anticipated launch of the new Apple range. This offset the lower performance of telephony and television. The Football World Cup, however, should have a positive impact for the next quarter. Services and diversification are continuing to show positive momentum and are still growing. Last, digital products are on the wane due to particularly inactive book market at the start of the year.

Now let's look at the detail of the group's performance by geographical area. France, which accounts for 60% of the group's total revenues is almost stable at plus 0.1% like-for-like basis against the first quarter 2025. The consumer context in France remains challenging, will still perform well and much better than the market trend according to the [indiscernible] figures that were published at the start of the week.

In the rest of Europe, that accounts 40% of the group's total revenues, activity is faring well with our revenues up by 2% on a like-for-like basis. Italy is slightly growing on a like-for-like basis. Domestic appliances sales have been declining. It is worth mentioning that we have an impact due to the unfavorable comparative baseline for gaming. Belgium is up by 3.2% like-for-like basis, driven by good momentum for online sales.

Portugal is up by 9.8% on a like-for-like basis, driven by the momentum of in-store sales and services for Fnac and Darty likewise. Stores that are operating under the Darty brand since end of 2025 have performed really well. Spain is also improving, plus 5.5% on a like-for-like basis, driven by the very good momentum of stores. The stores that were refurbished in 2025 have posted outstanding results. Last, Switzerland, where activity is slightly on the wane, minus 1.1% like-for-like basis, mainly impacted by the decline of the Greek market.

Now Slide 4, a few words on the current public tender offer. As you know, EP Group announced a cash offer for Fnac Darty share -- Fnac Darty shares. EP Group is our main shareholder. Has been our main shareholder since 2023 and has coordinated with its subsidiary, VESA that holds 28.5% of our share capital.

The proposed offer is subject to the mandatory success threshold of 50% of the share capital of voting rights as set out in the AMF general regulation. EP's offer is the logical [ confirmation ] of the strong partnership we have forged together over the past several years. It is a key milestone to support the acceleration of our strategic plan beyond every day.

In the current environment, marked by profound shifts in consumer expectations and behavior, the support of a stable long-term shareholder is a significant assets. Last, I'd like to point out that our payout policy remains unchanged with a payout ratio in excess of 40%, which we confirmed in February with a dividend of EUR 1 per share, which will be put to the general meeting on the 27th of May.

Besides, EP Group does not intend to implement a squeeze-out procedure at the end of the offer. After reviewing the draft response notes and taking note of the findings of the [indiscernible] consultancy that acts as an independent expert, which confirmed the fairness of the financial conditions of the offer and the recommendation of the ad-hoc committee, the Board of Directors unanimously issued a favorable reasoned opinion.

The Board considered that the offer was in line with the interest of the company, its shareholders and its employees. Besides, the Board also found that the implementation of this project would offer liquidity opportunity, an immediate liquidity opportunity to shareholders who are interested with a price of EUR 36 per share that will be attached with a 2025 dividend that will be attached, which would account for a 90% premium over the last closing price before the announcement of the offer and 24% and 26% price on the VWAP, 1-month and 3-month VWAP as well as the OCEANE bonds for a price of EUR 81.12 by OCEANE.

The Board also noted that maintaining the listing even if the conditions for mandatory squeeze out were met would allow shareholders who wish to do so to continue benefiting from Fnac Darty's potential. Shareholders who retain all or part of their shares will remain exposed to the company's risks, including the risk of reduced liquidity in the stock, depending on the number of shares tendered in the offer as well as share price fluctuations. On Slide 5, you can see the time line.

The offer was filed on the 10th of March and is currently being reviewed by the AMF. Foreign direct investment clearance in France for FDIs was obtained on March 26. We expect to launch the offer in the Q2 of 2026, subject to obtaining the AMF's approval and foreign investment control clearance the FSR. The offer is therefore expected to close following the receipt of antitrust clearance in the second half of 2026. Let's move on to Slide 6. In the current complex geopolitical context, our performance has demonstrated the group's resiliency.

At this point, we have not found any impact on our activity. In this regard, March is actually a marked improvement against the first two months of the year. Operationally, our supply chain remains robust. Our products are inherently nonseasonal. We maintain satisfactory inventories and their logistics flows already sail by the Cape of Good Hope for delivery to Europe.

However, we continue to monitor household confidence closely in this highly uncertain environment. As I said, we will put to the vote of the general meeting on the 27th of May, a EUR 1 per share dividend, which would be exited on the 3rd of June and paid on the 5th. Furthermore, as announced last January, we have begun the search for a partner for Nature & Decouvertes. We have already received preliminary expressions of interest, which gives us confidence in the process moving forward.

The finalization of documentation for potential acquired under [ WAN ] is expected to be shared with interested parties in the coming weeks. We confirm our objective for 2026, an improvement in our current operating margin and our free cash flow. And of course, we confirm the 2030 objectives of our Beyond everyday plan. Thank you very much for your attention. We are now ready to take your questions.

[Operator Instructions] Mr. Le Tinier, there are no questions.

Perfect. Well, thank you very much. I'll wrap up. Well, I'll remind you that regarding the time frame our General Shareholders Meeting will take place on the 27th of May, and we encourage you all to vote and see you again on the 22nd of July after closing of the market for our first half results. Thank you very much for your attention, and have a great evening.

Ladies and gentlemen, this is the end of today's earnings call. Thank you for taking part. You may now disconnect.

Good evening to all. I'm very pleased to be with you today to comment on our 2025 annual results, a defining year for the group, with, of course, the launch of the Beyond Everyday plan. I'll begin by presenting the highlights of the year, and then Jean-Brieuc, our CFO, will detail our financial results. The figures we're presenting today follow-on from the preview of the 26th of January after the EP Group tender offer. Lastly, I'll come back for the conclusion and will be available, both of us, to take your questions.

So if you're following the Slide #4, our revenues are up 0.7% on the year, notably driven by services, posting a double-digit growth across the majority of geographies. Trends and consumption, the situation is contrasted. We have a challenging consumption situation in France, notably in Q4. In this context, we're nevertheless up. It's a good performance that we believe 2 points above the market trend according to the figures published by the Bank of France at the end of January. The rest of Europe, we're delivering strong growth of plus 1.1%, driven by very good performance in Spain and Portugal. Our results are, therefore, solid with current operating income of EUR 203 million, that's 2% of our revenue, and a very solid free cash flow at EUR 145 million. As I said, Jean-Brieuc will return in detail on these figures in a few minutes.

We presented back in June 2025, our new strategic plan Beyond Everyday through 2030. This plan follows on the successful previous plan. Last year, as you know, early '26, EP Group, a leading shareholder through its subsidiary, VESA, announced the planned tender offer on our company. Over the years, we've built a trustful relationship with them. And we welcome this expression of interest.

Moving to Slide 5. After the success of our Everyday plan, Beyond Everyday projects us into the future, resting on 3 strategic pillars that we'll recall. To become the benchmark play on high value-added products and to accelerate the rollout of subscription services with circularity is the main focus. Secondly, define the market standards in terms of customer experience across all touch points. And lastly, develop our expertise with our partners and across all geographies through 2030. We've also defined ambitious objectives at group level and notably in financial terms with a growth of our operating margin to reach at least 3% in 2030 and cumulative free cash flow of at least EUR 1.2 billion over the period 2025, 2030.

Regarding the first pillar that's focused on the rollout of subscription services and circularity, we got specific indicators to measure our progress and reach our objectives. We're aiming for 4 million subscribers by the end of 2030. At the end of 2025, we've already reached 2.4 million subscribers. We aim a twofold increase of our revenue on 2nd Life offer. In 2025, we recorded growth of 24% over 2024 on the same offer.

Lastly, at the end of 2030, a contribution of service activities to our growth margin from 25% to 30%. We're already at 27% at the end of '25. That's a growth of 200 basis points over 2024. Develop the reflect of repair and purchase of the reconditioned products requires very proactive initiatives. To strengthen transparency on household products and to remove obstacles to 2nd Life products, early 2026, we launched the Digital Passport for large household products, and we aim for the deployment of 1 million products by the end of the year.

Moving to Slide 7. On Pilar 2 of the Beyond Everyday plan, we want to define the market standards in terms of customer experience across all touch points. This requires investing in our stores of the duration. We plan to renovate over 200 stores and to open 150 stores over the lifetime of the plan. This year, we've already reopened Fnac at Callao, center of Madrid, the new store of Barcelona transferred to the Ramblas, and the new Fnac in Dijon. For Darty, we've opened Rouen in the Docks 76 shopping center, still benefiting from the latest innovations. The momentum of openings will continue in Portugal, where, at the end of the year, we launched the Darty brand that we plan to develop. The brand is already benefit, great spontaneous recognition amongst household and consumer electronics in just a few months. Store traffic is up 4% and revenue is up 10% since the change in the brand.

Return to Pillar 3, we'll deploy our expertise with our partners and across all geographies. Online sales are up almost 6% in '25, with an increase in traffic and volumes, representing 22% of total group sales today. Click & Collect continues to confirm its success. It represents over 50% of our online sales. And we, in fact, have more than 9 million products recovered in stores in 2025. This figure shows the power of our model. We've seen a very dynamic activity in 2025 in our marketplace activities of the Reverse Marketplace, and our JV for logistics, weavenn, held equally, that's continuing to grow strongly. 2nd Life activities, both with Fnac and Darty represent an important share of this momentum. All in all, its sale growth of close on 10% on these channels.

A word of Unieuro integration. 2024, the acquisition of Unieuro in Italy was a defining deal for the group. Integration is progressing very well. [indiscernible], the French and Italian teams are working hand-in-hand on deploying the plan Beyond Everyday, both digital logistics with the new warehouse opened at Colleferro near Rome, renovation of points of sale and store openings. We're also developing large-scale Ledwall store windows for retail media we've done in France. The objective, at least EUR 20 million in synergies by the end of 2026 is confirmed and has already begun to materialize this year. Operating performance of Italy is very satisfactory and alone accounts for over 60% of the COI growth of the rest of Europe.

A word on the current takeover bid, and to conclude my section of Part 1, I'll return to the announcement of the EP Group that communicated on an all-cash offer for Fnac Darty shares. EP Group has been our major shareholders since 2023, and through its subsidiary, VESA, owns 28.5% of our capital. The offer price, EUR 36 per share, represents a 19% premium before the closing prior to the offer January '23 and premiums, respectively, of 24%, 26% of the average price of the 1 month and 3 months. This is, of course, submitted to a mandatory threshold of 50% of the capital voting rights by the [indiscernible], subject to the regulatory authorities in terms of competition law and control of foreign investment. EP Group has indicated that it didn't plan to solicit a mandatory withdrawal after the offer. After an in-depth examination of the proposed offer, the Board favorably received the operation unanimously. It will deliver its recent opinion in the coming weeks after the report of the independent expert, Ledouble, and the advisory opinion of the staff committee. The filing of the offer is expected in the coming weeks before the end of Q1.

On Slide 11, the EP's offer continues on the solid partnership we forged together for several years now. It's a major milestone to accompany the acceleration of our strategic plan Beyond Everyday. In the current environment, marked by profound changes of expectations and consumer behavior, the support of a long-term stable shareholder is a great asset.

Lastly, I'd like to emphasize that our dividend policy remains unchanged with a payout ratio above 40%. Over to Jean-Brieuc, our CFO, to detail our results.

Thank you, Enrique. Good evening, everyone. Thank you for being here with us. Let's start with Slide 13. You have the new basis for 2024 for our financial statements because of 2 items. The first item is the IFRS 5 restatement of Nature & Decouvertes at the bottom of the income statement because the -- since the COVID crisis, that business, Nature & Decouvertes, faced significant pressure on household purchasing powers and the emergence of online players offering very low cost products. The model Nature & Decouvertes needs to be adjusted to the turnaround plan that we've been implementing for 12 months or so, and unfortunately, didn't come to fruition, and so we started looking for a partner that seems necessary if we want to have a rigorous management of our portfolio.

The effect that you see on the slide is related to the results of 2024. It's minus EUR 172 million on revenue, a bit positive on COP to the tune of EUR 14 million. I'll give you comments in a few minutes, few details about 2025. The second restatement is more marginal. It's about Unieuro. With the recording of goodwill as per purchase price allocation to the tune of EUR 6 million in 2024 allocated to the rest of Europe because it is about Italy, the amount for 2025 is roughly identical. And so the developments that I will comment in a moment are based on these restated figures for 2024, that is revenue EUR 10.3 billion and current operating profit EUR 200 million.

Let's look at the results for 2025, Slide 14. You can see on this slide the key figures for 2025. As Enrique pointed out a few moments ago, we are pleased with the group's performance in view of a very challenging context in France for the retail industry with significant pressure on consumption and household's confidence. Revenue of the group at end 2025 was slightly up, plus 0.7% like-for-like at EUR 10.3 billion. Gross margin kept growing, reflecting the robustness of the omnichannel model. Operating margin was 2% at end December 2025, up compared to 2024. With a good management of WCR, operating free cash flow, not including IFRS, was EUR 145 million, up from 2024, not including disposals.

Slide 15 now. Enrique pointed out that online sales grew significantly, 6%. They account for 22% of revenue and about 50% -- and 50% of them are done through Click & Collect. Let's go through categories. Services kept growing with double-digit growth in most countries because of an enriched offer and the rolling out of Darty Max and Fnac Vie Digitale. With all services, we had 2.4 million subscribers at end 2025 compared to 2 million at end 2024. Our ambition is to reach 4 million by 2030.

Diversification remains also dynamic with a double-digit growth for Toys and Games and Stationery. Beds that started in our integrated stores at the beginning of the year, enjoyed rapid growth, just like fully equipped kitchens that are gaining popularity. Domestic appliances were up. Small appliances kept growing with beauty tech and floor cleaning equipment. Large appliances were driven by favorable weather conditions for refrigerators, air conditioning and fans. Editorial products enjoyed the good launch of the Switch Console 2 early in June 2025, 150,000 units sold. Books were slightly down because there were no major novelties. And finally, technical products declined because of fewer television and new phone sales. However, reconditioned phones enjoyed significant growth.

Personal computers went up, returned to growth with the termination of support services for Windows 10 and the new cycle of new products has announced tablets, connected glasses and cameras also enjoyed growth. And then IT components with fnac.com in 2025 were very successful. We now are the lead players in all gaming categories. We're trying a new dedicated department for these components in some pilot stores and on the darty.com.

Let's look at revenues per geography. France had -- sales were up on the like-for-like basis, plus 0.5%, but they were down 0.6% in Q4. As we said, business suffered in December, in particular, in stores. And that, of course, drove down the performance in Q4. The numbers published by the French Central Bank confirmed a very challenging context in 2025 for the retail industry with significant pressure on consumption and household confidence.

Let's look at the rest of Europe. This give a very satisfactory performance. Like-for-like growth of sales, plus 1.1% for the full year, plus 1% in Q4. In Italy, revenue were down 1.1%, but -- and Q4 was down 2.1% because of significant competitive pressure on phones and a high basis of comparison for television, but this had no significant consequence on COP growth.

Belgium and Luxembourg enjoyed plus 1.8% growth over the year, 3.9% in Q4. That confirmed the good momentum in online sales. Portugal, significant growth like-for-like, plus 7.3%, 8.7% in Q4. The 2 brands, Fnac and Darty did well both on web and in stores. And as Enrique pointed out, a very good performance of stores that recently joined the Darty brand.

Spain displayed an LFL growth of 6.6% for the year and 7.3% for the fourth quarter alone. All categories were up over the period, and services had double-digit growth. The scope effect for Spain reflected the temporary closing of stores for renovations, but they all reopened by year-end.

Finally, in Switzerland, LFL revenue was up 5.2%, including 4.1% in Q4, driven by fine both online and in stores and of course, the growth of services.

Let's look at gross margin on Slide 17. Over the 2025, this was up 50 basis points and 60 basis points not including the dilutive effect of the franchise. This reflected the good performance of services and Darty Max, in particular.

Let's look at other items of the income statement on Slide 18. As I said, the gross margin was up at end December. OpEx, including D&A was EUR 2.26 billion at end 2026 -- 2025, up EUR 38 million compared to 2024 restated. The higher property cost and inflation on other cost were offset by the performance plans. And so EBITDA at end 2025 was up EUR 15 million, and current operating profit, COP, stood at EUR 203 million compared to EUR 200 million at end 2024 restated because of higher depreciation allowances related to leases and IFRS 16.

Per area, business in France in December had a negative effect on profitability, but the rest of Europe had a significant improvement in COP, about EUR 15 million. In Italy, that accounted for 60% of the full growth for the region at end 2025, EUR 4 million in synergies were recorded. As Enrique pointed out, the objective of EUR 20 million was confirmed by to 2026.

One-off items stood at minus EUR 123 million compared to minus EUR 27 million at end 2024. This is because of the impairment of intangible assets, no cash effect, EUR 96 million, and the recognition of restructuring costs for the same amount as for 2024.

Operating profit stood at EUR 80 million at end 2025. Financial expenditures stood at EUR 118 million, up EUR 21 million compared to 2024. This is because of the higher cost of debt -- of net debt, the new financing conditions and the increases of IFRS 16 charges.

Taxes stood at EUR 25 million, and that included EUR 10 million extra tax for large companies in France. So net income for continuing activities for the group stood at minus EUR 67 million, a degradation compared to 2024, where it stood at EUR 43 million. But if you restate this for noncurrent items with no cash effects, the EUR 96 million I just mentioned, the net income attributable to the group of continuing activities would have stood at plus EUR 28 million at end 2025.

The EUR 78 million charge for held-for-sale activities is because of the restatement of Nature & Decouvertes as a held-for-sale business. Most of this is goodwill amortization to the tune of EUR 60 million. And net loss of the business for 2025, EUR 18 million. In 2024, on that line, you had a loss of EUR 19 million for Nature & Decouvertes, in line with IFRS 5, plus an income of EUR 2 million because of the resolution of the Comet dispute.

If you look at cash flow, operating free cash flow, not including IFRS 16, stood at EUR 145 million compared to EUR 210 million in 2024 restated, in line with our expectations. In 2024, net CapEx included disposals including a logistics warehouse in the Paris area, the EUR 93 million, a change in WCR stood at EUR 75 million, and this reflects the good management of that in spite of the challenging Q4 in France.

The increase in CapEx is in line with our ambitions. It affects our stores, our supply chain, our IT systems. Italy had increased CapEx with the opening of a new warehouse in Colleferro, which Enrique talked about, and several new stores or renewed stores.

The financial position of the group is sound, as you can see in Slide 20. Net financial debt excluding IFRS 16 stood at EUR 958 million with 2 bonds, EUR 550 million due in 2029 and EUR 300 million due in 2032, and the remainder of the OCEANES issue, EUR 46 million at end 2025. The net cash position stood at EUR 146 million, plus undrawn credit lines, the RCF and DDTL worth EUR 600 million. This undrawn line covers both the issue of 2029 in volume and the 2032 issue in maturity. Finally, the S&P Global, Fitch ratings and Scope rating agencies published their ratings, respectively, BB+, BB+ and BBB- with a stable outlook. So we have a sound long-term cash profile.

Finally, about the balance sheet. We have an agreement with the trustee of the Comet Pension Fund in the U.K. and Canada Life U.K. to cover all liabilities of the scheme, this pension scheme, with the full buy-in worth GBP 330 million. This operation did not and will not have any significant impact on the group's cash position. And now I'll give the floor back to Enrique.

Thank you very much, Jean-Brieuc. In conclusion, I'd like to acknowledge the unfailing commitment of our 30,000 partners and staff serving our customers' expectations, seeking out all growth opportunities. A word on the financial outlook. At our shareholders meeting in May, we'll propose a payment of a dividend EUR 1 per share, equivalent to last year, consistent with our shareholder return policy. The ex date of the dividend will be 3rd of June. In volatile and still uncertain context, we nevertheless expect an increase in our current operating margin and also our free cash flow. And of course, we confirm our 2030 objectives that I announced at the presentation of our Beyond Everyday plan in June 2025.

Thank you for your attention. And with Jean-Brieuc, we're now ready to take all your questions.

We have a first question from [ Laurent ]. Did you have expressions of interest for Nature & Decouvertes? Should we expect a cash impact on the disposal?

Well, I can answer that. Nature & Decouvertes, we launched the disposal process that's formalized. We chosen a bank and an expert to support us for the financial side. At this stage, it's premature to mention the first expressions of interest we've already received. It's too soon to tell you about that. Yes, we've had some expressions of interest, the cash impact on the disposal. We'll get back to you when we have more formal expressions. And as you said, too soon to say. And once again, we confirm our commitment to continue to maintain the activity in stores and all our activities around Nature & Decouvertes continuity until we find a right solution, and we have time.

We got a second question. Bank of France figures in January are not in a good trend. Are you confirming that similar trend?

Well, thank you. As you know, well, we generally do better than the Bank of France figures. Unfortunately, I cannot confirm what was the -- what the performance is today, but we'll see that for the quarter. But I'd say the group continues to expand confidently in a context that we know well that we're mastering and doesn't, in any way, jeopardize the guidance we've given for 2026. So not good figures from the Bank of France, but let's wait the quarterly results to give the market figures.

We have a question in English. I'll read it in English from [ Marcos ].

Well, thanks for that question. As part of the activities that are significant group-wide, that we classify in the services, give vouchers, experience packs, we're not going to give any specific outlook, but we're a leader in this and standard setup for ticketing, well, these segments that are seeing a major expansion of activity. And for shows, these are actually markets that have a great appetite for consumers still in 2026.

And thanks to [ Marco ] for his question once again.

Waiting as the questions come in. We will allow a bit more time for questions. Otherwise, we'll wrap up the session.

Our teams, Laura, et cetera, are available to -- there's a new question just come in on the guidance. Jeremy Garnier. Question on the guidance of the operating margin, free cash flow. Excluding the synergies or the Unieuro, what could be an improvement, it's upside and scale?

Well, thanks for the question. Obviously, if we include synergies, levers of our Everyday strategic plan, services, commercial dynamic that's pretty solid across countries, notably in the South. We saw the figures, Portugal, Spain. So we're continuing to benefit from that. Hopefully, consumption dynamism in France will be a bit more favorable, lower inflation and possibly opportunities for exchanging products, the World Cup in July. And of course, the real estate market will perhaps show some signs of recovery, the big and the small are already in this reequipment phase, everything for robotics and floor care, et cetera. There are a lot of good activities that will drive the business forward. And we project the profitability through 2030 at 3%. So we need to travel the path and the difficulty in 2026 is to boost free cash flow generation on activity to deliver our commitments in 2030.

We have a question from [indiscernible], what level of investment should we expect 2026 in the coming years?

Well, '26, we can expect a level that will be broadly similar to that at 2025, maybe slightly higher. And then we guided on 2030 of investment around EUR 200 million on average. So as we said back then slightly up versus what we were doing historically to incorporate development of IT services, store refurbishment, an important part of the Beyond Everyday plan.

We have another question, Justin, on WCR. Question on WCR chain, plus EUR 75 million. Is there a strong contribution of Italy that explains that high number?

Italy contributed, I won't give the exact figure, for quite a substantial share, but not the majority of that growth. All countries contributed EUR 75 million, including Italy, like the other countries.

Wait a couple more seconds. We can close this session. Of course, we remain available should you require further information and interaction and see you for the next presentation in April and the AGM and following events on the offer that's underway. Thank you for your attention. Pleasant evening.

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

Good morning, and welcome to Fnac Darty's conference call. Mr. Enrique Martinez, CEO of Fnac; and Jean-Brieuc Le Tinier, CFO, will run this call. Over to you.

Thank you. Good morning to all of you. Thank you so much for joining us this morning at a very short notice. Of course, we have some very important information to share with you, and you know we're very committed to maintaining a regular and transparent dialogue with you.

So the agenda, I'll, of course, start by presenting the offer that we've received and which was the subject of a meeting by our Board over the weekend and then the release this morning, then Jean-Brieuc will present our preliminary results for 2025 at this stage. And of course, after that, we'll be happy to take your questions.

So for those of you connected on the webcast on Page 4 of the presentation. So the big news this morning, as you've seen, is that EP Group forwarded to Fnac Darty Board on Friday evening after market close, a public tender offer in cash for all our shares giving access to Fnac Darty Capital. As you know, EP Group is the leading group shareholder since 2023 through its subsidiary, VESA without prejudging the opinion of the workers council and the recent opinion of the Board, we already welcome this expression of interest. Over the years, we've built a relationship of trust with EP Group has allowed us to implement an ambitious strategy.

Firstly with our plan, Everyday that ended in 2025 successfully and now with Beyond everyday, announced in June 2025 through 2030, also allowed us to get the necessary support for the transformative acquisition of Unieuro in Italy. We're very pleased with that. Jean-Brieuc will state -- of course, will comment on the detailed performance at the end of February, where we can already welcome this transaction in detail.

So what are the characteristics of the offer? EP Group is proposing a cash purchase offer for Fnac Darty shares of price EUR 36 per share as well as the OCEANE convertible bonds of the company unit price of EUR 81.09. The offer is subject to the success threshold that's mandatory of 50% of the capital and voting rights planned by the French Financial Markets Authority. EP indicated that it doesn't plan to implement a mandatory squeeze-out procedure after the offer. The Board met over the weekend and noted the intention of Daniel Kretinsky to continue the main strategic policies employed by the company. After a detailed review of the planned offer, the Board favorably welcome this transaction.

Now of course, it doesn't any way prejudge the reasoned opinion that it will issue after the report by the independent expert and that of the staff reps Committee, the Board has set up an ad hoc committee chaired by Sandra Lagumina comprising 3 other Board members. On recommendation of the ad hoc committee, the Board appointed Ledouble represented by Madam Agnès Piniot as an independent expert in order to draw up a report on the fair nature of the financial characteristics of the offer. The reasoned opinion of the Board, the expert opinion will be made public in due course of filing to the AMF.

In the event of confirmation, the filing of the public offer should occur before the end of Q1 2026, subject to certain regulatory approvals, notably in respect of financial subsidies and antitrust controls and analysis by entry is planned, but no obstacle to submission the offer.

We did Slide 5. This offer as part of a solid partnership. EP Group through VESA holds 28.5% of the capital and is the leading shareholder of the group since 2023. It's a milestone to support the acceleration of our strategic plan, Beyond everyday and they'll conserve the current dividend policy. So the offer must be reviewed in detail, reviewed all the necessary authorization. We can say is the Board welcomes this expression of interest by our shareholders. It's fully part and parcel of our ambitious strategy to strengthen our leadership on our markets over time, define the new retail standards that make sense. Part of the offer, we planned -- published the previous results for transparency. I'll hand over to Jean-Brieuc in a moment to tell you about that. But I'd like to say that we've delivered a very strong year in a context that is challenging, particularly in France. We've reached 2% EBIT margin. Cash flow is very positive. The good performance of countries outside France, particularly Italy that has shown very strong increase of its operating income is very satisfactory.

Over now to Jean-Brieuc.

Thank you, Enrique. Good morning, and happy New Year to everyone. Thank you for being here. Let's start with Slide #7 with a technical point on the restatement of our numbers for 2024. Since H1 2025, we've based our financial communication on 2024 data deemed comparable that is including the integration of any euro in 12 months and the deconsolidation of the ticketing business. Today, we present the 2024 data restated to take into account 2 major events.

First, the reclassifying under IFRS 5 at the bottom of the P&L of Nature & Découvertes. The challenges met for a number of quarters continued in spite of the initiatives taken to relaunch the activity to stimulate the business. And therefore, we looked for -- we started a process to look for a partner with a view to enabling the brand to have a shareholding and governance framework more in line with its model and its transformational needs. And so the business is now reclassified under IFRS 5 in the consolidated financial statements at 31 December 2025. So this means that there's EUR 172 million less in revenue, but a positive effect on current operating profit to the tune of EUR 14 million.

And the second restatement is more marginal. It's that Unieuro as part of the acquisition, we recognized asset depreciation resulting from purchase price allocation to the tune of EUR 6 million in 2024 allocated to the rest of Europe area because it's about Italy. And so the numbers, which we will comment are based on the 2024 numbers restated, i.e., EUR 10.3 billion in revenue and EUR 200 million in operating profit.

Let's move on to the preliminary results for 2025, Slide 8. Business in France was down, especially in stores. The numbers published by the French Central Bank confirmed a particularly challenging context for the retail industry with strong pressure on consumption and household confidence. And in this context, nonetheless, Fnac Darty maintained to overperform the market with its multichannel strategy and service-oriented policy. The rest of Europe generated a very satisfactory performance. Revenue for the group at end 2025 is expected to be stable at 0.7% on a like-for-like basis to the tune of EUR 10.3 billion at the end of the year with a negative impact from France in Q4, minus 0.6% on a like-for-like basis. The operating profit at end 2025 is expected to be 1.2% to EUR 203.1 million. Current operating profit for France should be down with a negative quarter Q4, whereas that of rest of Europe is slightly up, thanks to Italy. We'll tell you more in February.

If you take into account the restatement in IFRS under IFRS 5 on Nature & Découvertes and the PPA mentioned with the acquisition of Unieuro, current operating profit is expected to reach 2.0% at end 2025, up 5 basis points with an optimized management of WCR. Cash flow -- free cash flow from operations is expected to reach EUR 145 million in line with 2024, not including asset disposal in H1 2024. Net CapEx showed a income of EUR 21 million and not an expenditure because we disposed of assets, a logistic warehouse in the Paris area. We're confident for the implementation of a strategic plan Beyond everyday presented in last June, and we'll give you the number in 2023 -- in 2030.

We'll now can take your questions waiting for the presentation in February '25.

[Operator Instructions] First question comes to us from [indiscernible].

I've got 3 questions here. For my 3 questions, Slide 7 on the revised financial '20 -- isn't there a typo in your presentation EUR 193 million for Fnac and negative impact of Nature & Découvertes EUR 14 million, which should bring us to EUR 207 million and negative impact of EUR 6 million for Unieuro, which would bring us to EUR 213 million. The negative EUR 6 million of Uni, isn't it the opposite? EUR 6 million positive, which will be EUR 207 million, minus EUR 6 million. That is the EUR 200 million that you -- am I mistaken on the typo that seems to be on slides?

And then the cost price of the 28% of Fnac Darty by Kretinsky. Can you just remind us of that given his recent transaction, the slight disposal? And third question with Ceconomy. Have you contacted Ceconomy that owns 22% of Fnac Darty share, 21.9% of the capital to be precise? If yes, what was his answer, if yes. The Ceconomy securities were restated with an accounting provision. And from my calculations and from what I see, the cost price would be EUR 262 million for Ceconomy. And so at EUR 36, its cost price would be negative to the tune of EUR 33 million because it'd be EUR 230 million. We'd have further depreciation of EUR 30 million at Ceconomy. Can you enlighten us as your contacts on this matter?

I can maybe start with that for the second and third, and then I'll hand over to Jean-Brieuc for the financials.

Well, we don't -- the cost, the price of the Fnac Darty, you see the position was built up over time in a more assertive manner since 2023, but I'll let you do the math. So there may be some other analysts who can assist us with that. We have a little small idea of that. Yes, I'm sure you do. I'm sure you have a precise idea about that. On Ceconomy to our knowledge, they discovered the inflation a bit like everyone else, and we're not aware of contacts between our shareholders. Maybe there were some, I don't know. Frankly, I won't speculate. They'll assess others expression of interest and their contribution or not. But once again, we're not going to speculate as to what they -- in due course, they'll speak out and speak their mind. We're waiting. We don't know. We're like you.

To answer the first question, Alexandre, on the bridging of accounts. Last year, there was EUR 192.5 million in operating profit. There was EUR 80 million in losses from Nature & Découvertes. As to the PPA, it is an expense in 2025. It was negative in '25. So it's removed on both sides. So it's EUR 193 million, plus EUR 14 million, plus EUR 600 million, but it's not clear on the slide. On the slide, it was only on one side. And so EUR 193 million plus the EUR 14 million -- well, minus EUR 14 minus, minus EUR 6 million, I got minus EUR 213 million. If it's an expense. Then with EUR 193 million, plus EUR 14 million plus EUR 6 million. So you end up with a strange EUR 213 million number.

So that's the slide I couldn't read when I did my math this morning. Okay. The display is a bit misleading. We'll correct that.

The next question comes from Karine Elias, Barclays.

I have 2 questions. A technical question. EP already is a shareholder of the company. My understanding is that the change of control would not be triggered by the bonds unless there was a change in the rating. I'd like to clarify that point.

The second question is about the way you could reach -- you can -- the 50% threshold. Do you need to get funds outside Fnac Darty? And then for the refinancing because of this new offer, is there anything on the cards?

Regarding the bonds, there's a change of control that applies if there is a downgrade by 2 rating agencies. And so we'll have to wait what the rating agencies have to say on this -- about this tender to see whether this change offer can apply. We don't know whether they did. As to Kretinsky's quota, how he will finance this, he said on his own funds, there would be no additional debt for Fnac Darty. And de facto, as you can well imagine, there's no need for refinancing. We have 2 bonds due in 2029 and 2032 and an RCF, which is in 2031 with 2 extra years. So nothing in the short run.

Okay. Well, thank you for these clarifications. Just to be clear, Daniel Kretinsky will have his tender and backstops to respond to this. Thank you.

[Operator Instructions] Next question comes from [ Alexander Casas from Casas & Partners ].

Yes, since there are no further questions, and it's a highly important topic, Nature & Découvertes disposal announced this morning. Could you tell us a bit more about the underlying reasons if you knew, if you does get in the presentations. Do you have any ideas on the possible acquirer, French or foreign and an order, not of the transaction price, but what is the cost and what criteria might you view the valuation the company has these past few quarters experienced some challenging times. Question concerns Nature & Découvertes.

Yes. Thanks for your question. We state this briefly in the presentation and Jean-Brieuc referred to it. We intensively these past few years, set up a transformation plan set to lead to turnaround Nature & Découvertes that's showing an operating loss, as you see, it was a very intense plan. It was conducted very brilliantly, but we arrived at the conclusion with the agreement of the Board for the next stage, for the next cycle set to lead to sustaining the model transformation that this is not the best shareholder. There was a disruption of the model for Fnac Darty and the market. So we must look at how best to turned it around, transform it. That's a discussion to be had with the potential buyer and the reality with its successive strategic plans, acquisition in Italy. Opening up to service has shifted the strategy of the group and Nature & Découvertes is less central to our projects.

In spite of the work undertaken by the teams that we welcome, which will continue to operate and change the transformation model, we believe it's interesting to open up new horizons and to identify a new buyer who'll be able to carry forward the brand successfully. It's too soon. I mean the decision has just been made. We're at the end of the year. So we're opening up potential opportunities here to accompany us to deliver this process according to the right time line. We're very attentive to the quality of the partners plan in the full interest of the company. But it's too soon to say, and we're not making any forecasts on values, et cetera. We'll have time to set that out or not during the course.

If I may, I've just got one final question on Bercy, the Finance Ministry, the French Ministry of the Economy was directly involved the takeover by the Chinese JD to see economy attentive to what was happening to Fnac Darty. Have you contacted the Finance Ministry? I mean, since yesterday, it was actually yesterday that appeared that your Board met. Have you contact -- what the position of the French Finance Ministry might be on this?

Well, of course, I mean, they were informed since this morning, there have been exchanges in the coming hours and days, there'll be deeper contexts to undertake all the administrative procedures and get the necessary green lights on this deal. We're in no way, of course, prejudge being what the authority stands for. We're very confident this project is fully [ planned, passed ] of the company's interest. And there's, of course, a rationale of rooting sovereignty around France and Europe, around the retail and service sector that are committed for sustainable transformation, a plan that should be supported at every level. We're not prejudging what the view of the authorities will be. All that is planned in the time line in the context that will be forged rapidly. Thanks for that.

Next question from Marie-Line from Bernstein.

Yes, I have a question on Nature & Découvertes. Thank you, Alexander for raising the point. A question about [ Glas ], they have 10% of the shares and the cost price is pretty high. Is that why the tender offer is taking a commitment for -- no squeeze out because you have 2 shareholders with high cost prices. Is that the reason?

Thank you, Marie-Line. I believe they found the tender offer just now, and they will have plenty of time to see for themselves whether they can provide shares for sale. It's a bit early days to know what they will do. They have to analyze things and to arrive at a decision.

Next question comes from Tiffany Serfaty at Jefferies.

I had 3 questions. Can you give us details regarding the regulatory authorizations that are required for this? And can you give us details on the timetable, the closing, especially? And then regarding dividends, EP said they didn't want to change their dividend policy. Can we expect a similar payout as last year as you told on Bloomberg? Or is this a new situation, a new deal?

Well, the authorizations, and this is pretty standard procedure. We have the antitrust procedures, that administrative work will take some time. So we cannot be definite on the closing. We know when the offer will be open, but the closing will be when we have the antitrust on timing. Investment we have -- well, the authorizations must be achieved by EP prior to the offer being -- the tender being offered. And the antitrust part will be while the offer is going. So de facto, that can take some time. That can take some time. And as to the date of the closing, I cannot give you an actual date. As to the dividend policy, yes, it was confirmed -- well, they said they would maintain the dividend policy in the future. The dividend -- the payout is 40%. And well, we'll discuss the exact numbers with the Board when we have the final numbers and when we finalize the allocation of profits on 25 February.

Apparently, there are no further questions. I'll give the floor to the moderator for the conclusions.

Well, I think we were very clear. Thank you for your attendance and of course, for your question. The team, Laura, Jean-Brieuc and myself available to take your questions and see you at the end of February for our annual results. Thanks very much.

Ladies and gentlemen, this ends today's conference call. Thank you for your attendance. You can now disconnect.

[Interpreted] Good evening. Welcome to this conference call presenting the Q3 performance of Fnac Darty. Without further ado, handing over to Jean-Brieuc Le Tinier, CFO of the group.

[Interpreted] Thank you. Good evening, everyone. Thank you for joining our conference call to discuss our results for Q3 and the first 9 months of 2025. This evening, I am joined by our Investor Relations team, Domitille Vielle and Laura Parisot. I will begin by presenting our results, and then we will take your questions.

I would like to remind you that we are commenting on like-for-like figures. In other words, excluding changes in scope, store openings and closures and of course, including Unieuro and after the deconsolidation of the ticketing business.

Slide 3 shows the key figures for the first 9 months of 2025, which I will detail throughout this presentation. Our sales revenue is up 1.6% on a like-for-like basis for the quarter, bringing the performance at the end of September to plus 1%. This strong performance is mainly due to a return to growth in hardware during the back-to-school period, solid growth in online sales and, of course, continued the strong momentum in our Services segment.

Our gross margin improved over the first 9 months of the year, up 50 basis points. Finally, given these strong results, we confirm our guidance for EBITDA margin growth as communicated in our 2025 half year results.

Let's move on to Slide 4. I will now comment in detail on the growth of 1.6% for the quarter and plus 1% for the first 9 months of the year. By category, the trends are broadly similar across all our geographic areas. Services continue to grow and are showing solid growth in most geographies, driven by the development of our subscription offers and in particular, the rollout of Darty Max and Fnac Vie Digitale.

Diversification also continues to perform well with double-digit growth in games, toys and stationery. Home appliances are up compared to the end of September 2024. Small appliances continue to grow, supported by innovations, particularly in beauty tech and [ floor ] care. Sales of large appliances are down slightly despite the positive impact of sales of air conditioning and cooling products.

Consumer electronics declined despite a strong recovery in hardware sales in the third quarter during the back-to-school season. And this recovery suggests that the renewal cycle will continue in the coming quarters. Tablets and photography showed very strong growth momentum. Telephony, on the other hand, declined over the period despite several successful launches in Q3. Meanwhile, refurbished phones confirmed their momentum with strong growth.

Television was impacted by a high 2024 comparison base linked to the European Soccer Championship. In addition, we successfully launched the computer components category in August, strengthening our position as a specialist retailer in the gaming world. Lastly, publishing products benefited from the excellent launch of the Switch 2 console in June. To date, more than 100,000 units have been sold in our stores.

Book sales declined over the period due to a sluggish market. By channel, our online sales grew strongly with a 9-month increase of nearly 8% compared to the end of September 2024, and they accounted for 20% of group revenue over the period. Click & Collect is a key indicator of our omnichannel performance, and it accounted for nearly 50% of our online sales at the end of September.

Finally, our like-for-like gross margin at the end of September meaning, including Unieuro and excluding ticketing was up 50 basis points. And this strong performance is mainly due to the growth in the Services segment, particularly Darty Max, which offset the dilutive effect of the franchise and the negative impact of the product mix.

Now let's take a closer look at the group's performance by geography on Slide 5. The France region posted like-for-like sales growth of plus 0.9% at the end of September, including 1.7% in Q3 alone, driven in particular by strong online sales. According to data published yesterday morning by the Banque de France, Fnac Darty continued to outperform the market by more than 2 points at the end of September. Furthermore, the scope effect for the period corresponds to the permanent closure of the Champs-Élysées store.

Let's now move on to the rest of the world or rather rest of Europe region, which posted like-for-like sales growth of 1% at the end of September, including 1.3% in Q3 alone with contrasting trends across countries. In Italy, like-for-like sales were virtually stable at minus 0.6% at the end of September. The third quarter was impacted by high basis of comparison as Italy experienced a heat wave in 2024.

Italy's performance moved over the last 2 years is similar to that observed in France over the same period. Strong growth in online sales and services did not offset the decline in sales of household appliances, telephony and television. Belgium and Luxembourg posted sales growth of plus 0.9% like-for-like at the end of September, thanks to strong growth in Q3.

Portugal, posted like-for-like growth of plus 6.5% at the end of September, including plus 10% in the third quarter alone, driven by solid performance from our 2 brands, Fnac and Darty. Spain posted very solid like-for-like growth of plus 6.2% at the end of September with plus 3.9% in Q3 alone. All categories are up with services posting double-digit growth.

The scope effect reflects in particular, the temporary closures of the Callao and, Valencia Bonaire stores for renovation. Finally, in Switzerland. Like-for-like sales at the end of September were up 3.6%, including 7.1% in the third quarter, driven by double-digit growth in services. Let's now move on to the rollout of our strategic plan with a few examples of operational initiatives that have been implemented.

On Slide 6, a word about the launch of the Darty brand in Portugal. In early October, the group launched the Darty brand in Portugal, marking the beginning of a new phase in the distribution of consumer electronics and household appliances in the country. This launch comes with an ambitious expansion plan aimed at opening more than 30 stores by 2030 as part of Beyond Everyday. This momentum demonstrates the group's strong commitment and the significant potential of the Portuguese market.

Slide 7. In line with the first pillar of our strategic plan beyond repair, in which I would remind you, our ambition is to become the benchmark player in high value-added products and to accelerate the rollout of subscription services for the home with circularity as a central focus. In early October, the group published the eighth edition of its aftersales service barometer. It's a benchmark tool, both for industry and consumers. Please click on the link at the bottom of the page to find out more about this barometer.

And this new addition reveals for the first time these symptoms of breakdowns across 100 product categories, thanks to the analysis of over 1 million breakdowns reported by our customers and Darty Max subscribers. And very soon, the group will launch a range of services and advice for manufacturers, giving them access to the durability data consolidated by the group over nearly 20 years and already used to select the products offered in Fnac Darty stores.

In addition, we have also broken ground on a new 6,500 square meter customer care and logistics platform in Chilly-Mazarin, which is now the largest site in France for the delivery of bulky products, such as television and large household appliances. And this opening is fully in line with Beyond Everyday, our new strategic plan, notably by improving the customer experience, supporting the growth of Darty Max subscriptions and increasingly integrating the circular economy into our processes.

Slide 8, in line with the second pillar of our strategic plan beyond digitized, omnichannel or how the group aims to set market standards for customer experience across all touch points and the opening of a new integrated Darty store in Rouen in the Docks 76 shopping center allows us to test a new store concept with a view to future renovations. The store's signage has been completely redesigned to create a much warmer and more modern atmosphere, as you can see.

And from now on, the different sections are no longer organized by product type, large or small appliances, for example, but by room, in the house, our laundry room, kitchen, wellness, et cetera. Each area is identified with decision-making aids to guide customers through their shopping experience.

So we have a new blue and green signage, which illustrates our desire to further integrate the circular economy into your future points of sale. As for Fnac, the group has reopened the [ digital ] store in a new shopping center in the city center. It has modernized furniture, redesigned signage, themed areas and self-service checkouts, everything has been designed to test new ideas and improve the customer experience.

Finally, Fnac has also launched body and tech. It's a concept based on 3 fundamental pillars: Sports, Smart Health and Beauty Tech. It's a space entirely dedicated to this new generation of innovative technological products dedicated to wellness and well-being, which has been created on our website, snack.com, and for the moment in 2 of our provision stores, Île-de-France and Forum des Halles. This test-and-learn approach perfectly embodies the Beyond Everyday spirits, innovating, listening and progressing together.

Slide 9. Here, we're outlining the third pillar of our plan beyond retail, which consists of deploying the group's expertise to partners and across all geographic areas. The group is consolidating its position as a key player in the cultural ecosystem. It's building on its role as a trendsetter and talent scouts. Fnac support culture through various awards, including the Fnac Nobel Prize and the Goncourt des Lycéens Prize for literature and the Fnac France Inter comic book price for artistic creation. We're also accelerating the rollout of Weavenn, a company created with CEVA Logistics, since the launch in October 2024, Weavenn, the group's affiliate to dedicated to marketplace operations has seen its business grow significantly in terms of both the number of partner sellers and order shipped.

The latter have quadrupled this year with 2/3 of them coming from marketplaces outside group. In addition to September, Click & Collect delivery has been available in snack stores for third-party sellers. Weavenn's business is now up and running with an extremely encouraging trend to date. Finally, we are continuing to ramp up our omnichannel retail media business, our internal retail media agency Retail Link has become the first non-food agency to obtain CESP E-Retail Data trust certification, designed to ensure transparency, reliability and performance of digital advertising campaign reports, this certification positions Retail Link as a key player in a fast-growing and evolving sector.

To conclude on Slide 10. In the context of continued consumer constraints with household confidence down in the savings rate at historic highs in France, we are performing really well, driven by services activities online sales and the consumer electronics renewal cycle that is beginning to materialize. And despite these macroeconomic uncertainties, we are confirming our guidance for 2025 and expect our operating margin to increase by 15 bps. It should reach 2% at the end of 2025 compared with 1.8% in 2024 on a like-for-like basis.

This slide shows the details of the dilutive impacts related to the integration of Unieuro, whose operating margin was lower than ours and the deconsolidation of the ticketing business. As you know, Q4 is very important for the business, because it is driven by the peak sales period in which the group does really well. And we are confident that consumers will be there. We are ready and confident that we will make those major commercial events at the end of this year, a real success. We're now available to answer your questions.

[Interpreted] [Operator Instructions] Question one, Marie-Line Fort. Over to you.

[Interpreted] Question 1, the renewal cycle. For IT, in particular, with a switch to Windows 11. Are you expecting renewed interest for users? And is this already reflected in Q3? Or do we need to wait until the end of the month -- or the end of the year. Now regarding the new store opening in Portugal, what about the phasing? Have you already secured stores? Can we have some idea, if you could please give us some color.

And thirdly, we've read in the press that you might be interested in Engie Home. Do you have any comments on that. Thank you so much.

[Interpreted] Now since the back to school period, we've seen the IT renewal cycle materialize. That's something that we expected, and it's happening clearly. So Windows 11 is on its way. I mean there are updates that have been prolonged extended, but that won't last forever.

Regarding Darty Portugal, we will be opening new stores on a regular basis as early as next year. We will move as quickly as we can, depending on whatever opportunities arise on the market.

Are you saying that you've already secured a number of existing stores?

It doesn't take very long to find locations. We've already secured a number of stores. We'll see how quickly we can open them, but early results are very promising.

Now as far as your last question is concerned, I believe everybody knows that this company is up for sale, and it's being sold to Engie. It's a company that does home installations, repairs, subscriptions. So obviously, these are things that we love and that everybody can relate to, but it's too early to give you information on that. There are lots of funds that are interested, they may have a different vision of things, but they have deep pockets. So we're not going to give you any more comments than that. Thank you.

[Operator Instructions] We have no further questions. Well, that's great. Thank you all very much, and have a very pleasant evening.

Ladies and gentlemen, good evening, and welcome to the con call for the presentation of Fnac Darty 2025 Half Year Results. Mr. Enrique Martinez, Fnac Darty Chief Executive Officer; and Jean-Brieuc Le Tinier, Chief Financial Officer, will be our speakers today. The floor is yours.

Thank you very much. Good evening, everyone. Thank you for being here. We had to present and comment the 2025 half year results. First, the agenda, Slide 3. Jean-Brieuc is going to detail the results of the half year. This is the first half year since the Italian integration of Unieuro. We will then comment on our foresight perspective, et cetera, our outlook, and we will take your questions at the end.

On Slide 5. We are going to comment the financial results on a like-for-like basis versus 2024, which means that we are going to include the integration of Unieuro and the deconsolidation of the ticketing business. So this is new scope of Fnac Darty, following the acquisition of Unieuro. First half sales are encouraging, and they reflect the strong sales momentum of the second quarter against the backdrop, which unfortunately remains rather lackluster, notably because of the recovery in consumer spending and France continues to lag behind.

In other European countries, we can see the first signs of a recovery, but it is lagging behind in France. Gross margin rose by 60 basis points, reaching 28.9%. It is mostly driven by the good sales momentum of our service activities in all geographies. This is a key element of our strategic ambition as it is at the heart of the Beyond Everyday plan. And I will say a few words about that later. I will mention the main components. Our EBITDA improved slightly at EUR 189 million for the half year. You see the [ ROCE ], which is negative, as usual, at minus EUR 56 million for this half year. This is mostly due to the high seasonality of the group's business and the EBIT margin, which is mostly coming at the -- in the second half of the year.

Moving on to Slide 6. A few words about the key macro trends on the revenue. If we start with services, so double-digit growth, very good momentum in all of our parameters, in all of our geographies. So this is a strong contributor to the group's margin over the period. Editorial, cultural products benefited from a great momentum linked specifically to the launch of the Switch 2 gaming console at the beginning of June 2025. We only had a few weeks of activities involving the Switch 2.

As you know, for years, the group has been investing a lot in order to be seen as a key and credible stakeholder in this category and I believe that we are starting to bear fruit of these efforts because for the first time in France and in a few other countries, but more specifically in France, we are the top seller for the Switch 2 console. More than 50,000 units have been sold since the launch. This is a great achievement for the team. It's a very good start and it really bodes well for the future of this perimeter.

Small electrical appliances also have a strong growth, also have a strong growth trajectory. It is buoyed by innovation. You see it in the various categories. You have the [ LED masks ] that are becoming quite interesting. You also have the air fryers and the robot vacuum cleaners, strong momentum also for anything that has to do with heat fans, for example, which really, really buoyed or drove this category for this half year.

So large electrical appliances are buoyed by air conditioners. So we really -- we were really able to see this opportunity. And as you know, the summer was very, very hot, especially compared with last year. You have a series of summer heat waves that really buoyed the activity. Something that is interesting. We are looking at a rebound, a recovery in the real estate market. And so obviously, we have more and more sales of fitted kitchens, especially Darty Cuisine is becoming a more and more important brand, and we are gaining market share. Good trend in the -- for this excellent half year and also diversification, so growth of toys, stationary categories. Women shoe, and the Pokemon cards, which are very, very popular with our young customers. A lot of business opportunities as usual.

Slide 7. We mentioned it briefly. You know that having the stable and sustainable growth, robust growth of the web activity is one of our key ambitions. And the first half of the year was particularly good. We have online sales that rose sharply by 7.7%. And they represent 21% of total group sales. Traffic grew as well. And it is quite interesting to see the momentum of the marketplace where we see the contribution of our fulfillment activities because there is more and more volume that is being fulfilled by [indiscernible] in France, but in other countries soon.

So major contributions of repackaged or yes, repackaged products. E-commerce and repackaged goods are particularly important. And we are one of the only stakeholders able to benefit from this. So omnichannel sales account for almost 50% of the group's online sales, is very important. They are less developed at Unieuro, but we will address that later. And I imagine that there will be some opportunities in the future. We'll tell you about the outlook. But generally speaking, even with a lower contribution from Unieuro, we are still close to our target of 50%.

Moving on to Slide #8. So if you were not able to follow our announcement in June -- on the 11th of June, we presented our new strategic plan for 2030 Beyond Every Day. It was rather well received, very well received actually. It focuses on our -- each had a very clear set of priorities and road map. We want to become a benchmark player in high value-added products, while remaining rather popular in our existing markets.

We want to accelerate the rollout of subscription-based services for the home with 2 different brands. And we also want circularity. So all repaired, repackaged products, et cetera. This is our model for the future. Obviously, we want to set market centers in omnichannel customer experience. So there is a strong focus to come on in-store experience, the shops are going to change, to be adjusted in order to perform even better and to offer a better experience to improve also our digital experience.

And the third avenue is about deploying the group's expertise with partners in new geographies. We want to develop our business beyond our final customers, and we want to offer something to our industrial partners. This is a rather ambitious plan. It is already ongoing because there is a whole onboarding phase that already started. And so there's a whole road map that is being rolled out. And we will regularly tell you more about initiatives about things that are going to be done, but the plan is already well alive and being rolled out.

Now a few words before giving the floor to Jean-Brieuc, a few words about Italy. The first half year of integration, we are very happy with the way things have been organized, things have been happening. There is a technical integration and human integration of the Unieuro staff. I sometimes feel that we've been working together for many, many years, which is an excellent sign of proper integration, and we see that this integration is going to bear fruit. It is going to enable us to ramp up our business abroad, not only France and Italy, but we're also going to bring all countries together. We were able to confirm our objective of EUR 20 million in synergies by the end of 2026. We can confirm this initiative or this target.

There are things that are starting to be formalized, so to speak, and for 2026, we are expecting to go even beyond EUR 20 million in synergies. This is a very strong and dynamic half year as well for the Italian market. There is a strong transformation project to transform the whole supply Chain and logistics chain, the opening of a second large warehouse near Roma, more than 50,000 square meters that is already operational. So we already opened it. And this is a way to improve the quality of service for Unieuro. It is also a way to strengthen its presence in the north in the center -- well, in the center and in the south of Italy, sorry, center and south. This is a great opportunity to continue to ramp up our business, ramp up our performance and develop the network.

There are 2 main platforms at the moment, one near Rome, Colleferro and Piacenza close to - at Piacenza, another one Carini, Palermo to serve Sicily, et cetera. And there are 33 home delivery centers to deliver goods to the customers. We have the optimal structure to address the Italian market in very good conditions. This is all I wanted to say that sit in a nutshell. I am now going to give the floor to Jean-Brieuc who will tell us more, and I will give a conclusion at the end.

Thank you, Enrique. Good evening, everyone. Let me start by reminding you that following the transformative acquisition of Unieuro, the group has been reporting its financial information since early 2025 across 2 geographic zones, France and the rest of Europe, which includes Italy, Belgium, Luxembourg, Portugal, Spain and Switzerland. This new segmentation gives a clear picture of the group's growing European footprint. Compared to the pro forma data we discussed during our full year and Q1 2025 results, we also decided to take into account the deconsolidation of the ticketing business.

From now on, I'll be commenting on the evolution of our results based on 2024 comparable figures, which include Unieuro and exclude ticketing to ensure proper comparison, you'll find restated historical data in the appendix to today's press release. Let's look at revenue first, on Slide 11.

We're pleased with the group's performance, which is fully in line with our expectations. Q2 was particularly strong with solid momentum across all geographies. On a like-for-like basis, revenue grew by 2.5% in France and 1.5% in the rest of Europe. Gaming was a strong driver, as Enrique said, especially with the successful launch of the new Switch gaming console and weather conditions also played a very favorable role in boosting home client sales. This performance confirms the group's ability to gain market share by supporting product launches and meeting customer expectations effectively.

And total group revenue for H1 2025 stands at EUR 4.5 billion, up 0.7% like-for-like. By channel, as Enrique mentioned earlier, online sales grew by nearly 8% now accounting for 21% of total revenue, with half of that driven by Click and Collect. By category, trends are broadly similar across the different countries. Services continue to grow at a double-digit rate in most geographies, driven by the expansion of our offerings, including Darty Max and Fnac Digital Life. Diversification is also progressing with double-digit growth in Toys & Stationary.

Our new mattress offering launched earlier this year in our integrated stores is off to the promising start and expanding rapidly. Home appliances were up nearly 2% versus H1 2024. Small appliances continue to grow, supported by innovation in areas like beauty tech and floor care. Large appliance sales are also going up, boosted by favorable weather and strong performance in fitted kitchens.

In editorial products, gaming delivered excellent results, thanks to the Switch 2 launch in early June 2025. Book sales were mainly driven by the popularity of thrillers taking over from the Romance category, which is now normalizing. Lastly, tech products declined due to continued softness in the PC market that said the end of Windows 10 support in Q4 is expected to drive a refresh cycle. Tablets, smart glasses and photography posted strong growth.

New phone sales were down, but refurbished devices performed very well. TV sales declined due to a high comparison base from 2024, which included the Euros and the Olympics. Solid sales performance across Europe on Slide 12, let's look at regional performance.

In France revenue grew 0.5% in H1, including 2.5% in Q2 alone, according to the Banque de France data published yesterday. Fnac Darty continues to outperform the market overall. The scope effect over the period reflects the permanent closure of our Champs-Elysées stores. Moving on to the rest of Europe. Revenue is up 0.9% in H1, including 1.5% in Q2, though trends did vary by country. In Italy, the like-for-like revenue was stable at 0.3% in H1 with a slight Q2 decline of 0.7%. Strong growth in online services couldn't fully offset the drop in tech product sales, particularly phones, TVs and PCs.

Belgium and Luxembourg saw a 2% like-for-like drop in H1 despite stable Q2 performance. The region remains under pressure due to intense competitive activity. Portugal posted strong like-for-like growth of 4.6% in H1, including 8.3% in Q2 alone. Online sales were particularly dynamic, up more than 27% year-over-year. Spain delivered very strong like-for-like growth of 7.4% in H1 and 14.3% in Q2 alone. All categories posted games and services were up double digits.

The scope effect mainly reflects the temporary closures of our Callao and Valencia Bonaire stores for renovation. Lastly, in Switzerland, revenue rose 1.8% like-for-like at the end of June, including 4.5% in Q2, driven by strong double-digit online growth. Turn to gross margin on Slide 13. At first glance, it's down by 210 basis points in H1, mainly due to the inclusion of Unieuro which has a structurally lower margin than the group and the deconsolidation of ticketing.

On a comparable basis, with Unieuro included and ticketing excluded gross margins actually up 60 basis points and 70 basis points, excluding the impact of franchising. This good performance is mostly driven by growth in service activities, particularly Darty Max, which offsets the dilutive impact of franchising.

Moving to the rest of the P&L on Slide 14. As I just explained, gross margin is up on a comparable basis. Operating costs reached EUR 1.351 billion in H1 2025, up EUR 31 million versus the comparable 2024 period. The impact of higher real estate costs and general inflation has been largely offset by the effectiveness of our performance plans across the group's divisions.

As a result, EBITDA is slightly up compared to last year. Current operating income came in at minus 56 million versus minus EUR 49 million in H1 comparable in 2024, reflecting higher depreciation charges, particularly under IFRS-16. Nonrecurring items totaled EUR 11 million, minus EUR 11 million, which is back to a normalized level. As a reminder, last year's figure included about EUR 11 million in restructuring costs, half of which are linked to Nature & Découvertes and roughly EUR 15 million in fair value adjustments of IT projects. All in all, operating income for the period stands at minus EUR 67 million, an improvement of about EUR 10 million year-on-year.

Financial expenses totaled EUR 57 million, up EUR 23 million from last year. This reflects higher net debt costs driven by the group's new financing terms and increased IFRS 16 related charges. After accounting for a tax gain of EUR 34 million, net income from continuing operations stand at EUR 86 million, an improvement over the last years -- minus EUR 86 million, so an improvement over the last year's minus EUR 95 million.

Let's now turn to free cash flow on Slide 15. Operating free cash flow, excluding IFRS 16 came in at EUR 878 million versus EUR 736 million June 2024 comparable, which is in line with our expectations. This change is mainly due to EUR 24 million increase in working capital and EUR 22 million in higher net CapEx Italy, in particular, saw an increase in investments with the opening of the new Colleferro warehouse, which Enrique mentioned and several new store openings.

By comparisons in June 2024. Net CapEx showed a positive EUR 21 million. Thanks to asset disposals, including logistics warehouse in the Paris region. And now a word about our debt maturity on Slide 16,

The group's financial position remains sound and robust with EUR 1.5 billion in equity at the end of H1. Net Financial debt, excluding IFRS 16, totaled EUR 779 million. This is traditionally higher midyear due to seasonality and includes EUR 109 million fine from the ADLC. In March, we successfully issued a EUR 300 million bond maturing in April 2032 with a fixed annual coupon of 4.75%. The gross proceeds were used to redeem part of our 2027 convertible bond. Over 77% of outstanding OCEANEs were tendered, representing EUR 147 million.

At the same time, our banks agreed to extend the maturity of our revolving credit facilities. OCF and DDTL worth EUR 600 million in total to March 2030, with two 1-year extension options for each of them taking us to March 2031 and potentially March 2032. This secures the group's liquidity and fully covers both the 2029 and 2032 maturities.

Fnac Darty is rated S&P Global Fitch ratings and Scope ratings. Just a few days ago, Standard & Poor's reaffirmed it's BB+ rating with a stable outflow following its review of our new strategic plan and operating performance. Fitch and Scope, both confirmed their BB+ and BBB ratings effectively, both for stable outlook. So in summary, we extended our debt maturity and secured our long-term liquidity. Lastly, for the first year in a row, the group paid out a dividend of EUR 1 per share, representing 40% of net income from continuing operations. The dividend is paid in cash on July 4 for a total amount of EUR 29.4 million.

And with that, I'll now hand it back to Enrique to wrap up the presentation.

As you've understood, we are pleased with this first half performance. As we announced, we have broadened the scope of our objectives for the full year 2025, this outlook update is the one communicated in our financial results, 2024, which considered only the Fnac Darty perimeter. So we now expect our operating margin to increase by 15 basis points by 2025, This should reach 2% at the end of 2025 compared with 1.8% in 2024 on a like-for-like basis. So including Unieuro and excluding the ticketing business.

You are familiar with the impact of the operating margin because the acquisition of Unieuro decreased the operating margin of the group and so did deconsolidation of ticketing business. We are, of course, very confident. We believe we are going to have a success by the end of the year. The team has always organized itself in order to face different challenges. And obviously, Jean-Brieuc and I are available to answer your questions.

[Operator Instructions] We have a first question from Clement Genelot from Stifel.

Yes. Two questions on my side. Number one, regarding the scope effect, can we expect to see another perimeter or scope effect strongly linked to the renovation of shops in Q3 and more specifically in H2? Second question, more generally speaking, it has to do with your relationship with suppliers. Given what is still happening given all the uncertainties regarding tariffs, did you notice any behavioral changes from your suppliers during Q2. My question is, do suppliers reallocate stocks that were supposed to go to Northern Europe? Are they redirecting stocks towards Europe instead of North America?

Thank you for your question. Regarding the scope. Well, a few shops are involved. They were being renovated, and there is a closing of the Champs-Elysées store, good recovery in other Parisian stores. However, they were able to get the customers. In the Iberian Peninsula, we are expecting the opening of a new shop in early September. We will be ready for the last 4 months of the year. As for the store in Barcelona, there is one that has been fully renovated and it had strong performance. And the other one is going to come later in the year. So I'd say that Q3, a little bit of impact from the scope, Q4 not really. And we are excluding the share of business that has been redirected from the Champs-Elysées to other Parisian stores.

As for suppliers, suppliers are like everyone else. There is a lack of visibility for everyone. Nobody knows what the final tariff policy is going to be, what the American administration is going to decide. At the moment, everybody is being careful, being cautious, conservative. We did not notice -- we did not observe any strong changes in -- no changes in our relationship between Asia and Europe. So to date, I must say that we did not observe any impact, neither positive nor negative ones before our suppliers or manufacturers.

Our next question is from Christian Devismes from CIC.

Two questions. Number one, it has to do with France operating income, minus EUR 45 million -- sorry, it is worse than H1 2024 and 2023. My question is the following. I know this is H1, so it's not necessarily particularly relevant. But in France, we have a great sales performance. This is the most mature financial performance. So is this a one-off? Or -- are there losses from Nature & Découvertes are going to have an impact. So what can you say about the France's profitability. France was supposed to be in a good position, and it's not great. And the second question, we do not have the detail of the financial expenses, but minus EUR 57 million for the whole year. We can do that times 2, and we will have a rather accurate estimate of what we can imagine for the full year-end.

Right. So regarding your first question, there has been a lot of rental costs that have been increased to indexing in Q2. There will be less of an impact in H2. So it's just because of the economic situation and our performance plans that are more active in the H2 and in H1 in France. So no concerns to be had there. Very well. As for financial costs, financial, well, yes, you can't really multiply by 2 because we have left at the end of the year. So there will be less than it's not going to be that times 2. But it will depend on the final indexation of rents because you know that we have interest rates and theoretical financial cost of the rents to take into account.

And regarding Nature & Découvertes, anything you'd like to say about that?

No. No impact. The impact on the France business has to do with another business, nothing major for Nature & Découvertes. The recovery plan that was announced is being rolled out. We are seeing encouraging signs already. It's still too early to talk about it, but it is not because of Nature & Découvertes that we have worse result for this half year of France. And as you know, the half year result is not necessarily telling doesn't reflect the full year performance? But we are quite confident. And in France, the share of margin on the growth of services is very, very strong. And in H2, we are going to continue to benefit from this. So with good Q2 in France, we feel rather confident. We know that there will be a lower negative effect on cost, and we'll get back to a normal model for our results.

[Operator Instructions] Gentlemen, we have no other questions, and I'm going to give back the floor to you.

Yes, thank you for your attention. Wish you a great vacation, if you're on vacation, and we'll be happy to see you again for our exchanges about Q3 and perhaps other conferences by that time. And thank you for your attention, and good evening.

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

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

Hello, everybody. Thank you for being here at Tech. The best place possible, I think, for presenting to you our new plans. And thanks to all those who are listening remotely, because we're live and webcasting. We're obviously delighted to be able to show you our new strategic plan and to explain our group's ambition through to 2030. With Jean-Brieuc in 2021 -- February 2021, we were under curfew. We just come out of the lockdown. We were in a studio, and there was practically nobody there to present our new plan, which was called Everyday, a very ambitious plan at the time. This seems like ancient history now, but still -- here, we've got all the people from the executive committee, everybody from the group and the teams, and we're going to explain our ambitions for further ahead still. We're going to be taking stock and forecasting. And I'd like to thank the members of the Board who have supported us, who have challenged us and validated the plans, obviously. And I'd like to greet Bruno who's someone there at the back. And Bruna, from Italy. Now they came along to attend this presentation. We're delighted to have you here. .

We're going to be presenting the plan, explain the keys of success of this plan and -- this will make our teams even stronger. We have 30,000 talents in our company, and it's great to have a strategic plan, better still to roll it out on a day-to-day basis. We're going to start with communicating today, and this is just the first step on a long road of sharing, of working together and making this plan counter life. And Jean-Brieuc and myself, have the privilege of presenting all of this to you today. But we have thousands of people behind us who are supporting us working hard.

2021, when we worked out this plan, we could not have dreamed of how it was going to work out. We were just emerging from the pandemic. We had the impression back then that people are never going to travel. And again, there wouldn't be any fairs or exhibitions anymore. People be stuck in front of their screens, e-commerce, nobody could have dreamt there was going to be a war in Europe, the crisis of inflation. And yet, it's all happened so much so that the future looks even harder to predict than ever before. So all of the predictions we made post-COVID have turned out to be wrong. But the project that we designed that we elaborated, has worked out, and that is very reassuring. There's a key to success there because our project was developed despite unfavorable context. The economy was not buoyant. Consumer trust have been eroded. And despite all of that, between 2021 and today, you've seen the group's results, which confirm that we were right to be ambitious and to put in place this plan.

The 2024 results confirm this at scale and also our ability to be bold with the consolidation, particularly on the Italian market. This is the fruit of all the work we've done beforehand. And we're in a completely new configuration. Now we're leaders in our region. Western South Europe, around France and Italy, which are the sort of pillar countries and the countries around them, which are significant also. We have leadership on these large markets for technological products, cultural goods. We have benchmark products around cultural goods and sustainable goods. We are powerful in terms of our business model. We have e-commerce. So we're #2 in terms of e-commerce with our brand, and a unique model, which is a combination of e-commerce and stores. More than 90% of our clients use stores one way or another to get into the flow. 90% of them are less than 15 minutes away from a store. We have a very dense network of stores, and that's why we can have this unique model of both e-commerce and proximity stores.

And after COVID, there was a strong development of e-commerce, but people still like to go to the stores. And so we have a business model that is supported strongly by our consumers. Of course, back then in 2021, we were very ambitious and bold. We said 10 million subscribers of our goal. Not many people thought we would get there, but we have been able to demonstrate that this was the right course of action. And I think this was really a major turning point for the group. A project that has really been disruptive for the group, a turning point, crossroads, which defines what is happening now. A lot of hard work has gone in. I mean, yes, it's good to have ambitions, but you need to do the graft, you need to have the logistics that can provide, deliver tens of thousands of parcels every day. 30,000 clients were delivered in just a few seconds, a couple of days ago via a reference marketplace. So we have highly performing stores, a whole network of stores, stores that with Jean-Brieuc, we had identified as stores that needed to be revisited, perhaps the location wasn't great, the business model wasn't adapted. We've sorted all of that or we are improving the situation. We've followed up on all of the teams, the real estate teams to get our stores to be really agile and to back up the dynamics of our unique model.

A multichannel approach. We'll come back to this, but it's the key to our success. The business model of tomorrow may be a bit more digital, but we have a model that has shown that it works well in terms of profitability, sustainability. This mix of e-commerce and stores, it's alert. It's agile. And we have the stores, which gives you a balanced approach.

We talk about services a lot, putting services at the heart of our business model. That's very important. And that's part of this turnaround. It means that we can change the historic business model being very agile, taking risks, risk taking, going from direct sales to subscription sales. Not everybody can do this. This requires strong belief that financial backing and also all of the logistics. So we've done all of this. And the figures we've been showing you indicated that we have 2 million subscribers to Darty Max and other services. It's not just Darty Max. There's perhaps the start of our services, but there are others, and we need to see a broader overview probably of our offering model that generates services, but it creates also loyalty, recurrent sales and generate satisfaction amongst our clients. So we are going to be forging ahead of our competitors in the future because we have clients who really attached to our brand because they fond of the brand and also for financial reasons, and they bought into our services.

All of this is integrated and it's possible because we have a network of stores with sales staff who are able to create that loyalty with an acquisition cost that's the lowest on the market. We've got stores there. We've got well-trained sales staff, and we have the clients who go regularly to the stores, and that gives us a strong competitive edge. The 2 million we have currently would have cost a lot more to finance. So with a more conventional model of acquisition outside our stores as others have done.

So this has forced us to scale our capacities for delivering repairs, millions of products repaired, training. Our technicians are well trained. They're not on the side of the road, as you might say. On the contrary, they're in-house. They have to be trained. More than 2,000 people have been trained in our Academy and they're part of our repair team. Of course, as you note, we wanted to have more sustainable consumption, help consumers who in France are very attentive to trying to combine or protecting the world and protecting their own income. And sustainability is a kind of major weapon we have in our arsenal. We want to have more responsible form of consumption, and we do really better than anybody at scale in that field. We've done an awful lot sharing our ambition for sustainable products, working with industry to increase the lifespan of components, working with our stores so that we can prescribe the right products for the right client being able to repair the products, boosting reconditioned products. This means that we are a major player in terms of sustainable production, consumption.

France is at the spearhead of responsible consumption movement, and we're part of that. So that's kind of a summary, the three pillars, multichannel, omnichannel, service, scaling up service with subscription service and sustainability. Those are the three pillars. that have guided us, and I think we can tick them off. We've made good headway in all three areas, and this means that we have very solid foundations that we can build on for the future.

Let me show you a short video from our Service and Operations Director to together with the teams and all of the colleagues has spearheaded the transformation of our business model. Thank you.

[Presentation]

Thank you, Vincent. Thank you. Obviously as Vincent said, the commitment is collective work our teams, Francois teams, and of course, what's happening in the stores and the HQ team supporting the stores. Another important factor these last few years has been the fact that we've been able to use opportunities in terms of innovation and value creation. Retail media, of course, is something that everybody is talking about now, and we've decided to share objectives and even our results on a regular basis. Already now, we have strong penetration compared with our net sales. So 1% of our total sales, if the figures that the market is talking about are correct. And there's potential to go beyond that, be it through data or e-commerce channels or through the power of our tools. .

Second, and that's something that's very important in a hallmark of the group, we have the ability to create strategic partnerships with leading players in the fields, particularly in terms of our e-commerce logistics and ticketing offering with the partnerships that have been announced that have already helped and really here together with his teams really want to take this further, take this technological imprint of the group further through the cloud, of course, but of course, also boosted by AI too, go further in terms of value proposition that we give our teams and clients on a daily basis. This has really helped us scale up with our partnership with Google and other partnerships that we've mentioned. We've trained our teams, obviously. Train them to use AI. And of course, we get out of the door, there will be 1 million people telling you about AI. On AI we do realize this is the potential for disruption. And so we've trained our teams to create spaces in our stores because there are products for customers. We need to educate and train our people to sell those products and also help our customers benefit from these new technologies.

And finally, I'd say another symbol of this plan is the fact that we're expanding internationally. As you know, I don't speak perfect on accented to the French. I'm not French, of course, I'm Spanish, certainly, but part of the group. And since I've entered the group, the international ambition of Fnac is something that's been really weighing on the mind of our teams. We've wanted to do it for a long time. With Darty, it was even less possible, seemed less possible because we reinforced the French share of our net sales. But now it's a success. The group is much more diversified geographically than it used to be. International outside of France accounts for 40% of our total sales. So we are really getting close to the potential market, clearly, with using growth opportunities outside of France as well as in France with Italy, we created another door to help develop the group in a much more balanced way. That's been possible, thanks to the results of the preceding plan, thanks to the ambition that we have for the project and, of course, the trust of our shareholders, all that made it possible. So going back to what happened in 2016, EUR 4 billion revenue and just a few years ago to EUR 10 billion now with an international share that is really high. Group has grown, has found new avenues for growth. And so clearly this has been the biggest net sales growth projects since the beginning of the group. And we've done that through Italy, through the champion. We've integrated the market leader that really makes sense, the most beloved brand of Italian consumers, and a brand that has 5,000 committed collaborators and a lot of potential going forward. But who better than Bruna to tell you about this. She'll take you into the world of Unieuro this morning.

[Presentation]

Thank you, Bruno. I'm very happy to have the Italian team with us to take this beautiful Unieuro brand even further. That turn to financial performance. Looking back at the results of the Everyday plan despite the pressures of the inflation, supply chain disruptions, the war in Ukraine and difficult consumption environment, Fnac Darty has demonstrated its resilience. We've shown that we're capable of creating the conditions for our own growth, to stand out indicators in a complex economic environment are, first of all, our gross margin, which has risen significantly. Worked on the product mix, our positioning as a leader and also the service brand positioning, as we've said again and again. And I think it's the first time that part of our KPI that we show it as part of our share. We used to talk to the contribution to net sales and use said around 15%, and that's actually was comprised of many things. But now we're talking about contribution to the margin because that's how you see the impact. And today's service is already over 25% of the group's total gross margin. As you'll see, the ambition is to go much, much further than that.

Cash flow generation has exceeded EUR 500 million, supported, of course, by our strict cost discipline in terms of purchasing, supply. And clearly, also the growing centrality of services, which helps us have a better visibility over recurring cash flow. And of course, we have, as a consequence of that, the cost reduction plans that are part of our daily discipline with two key indicators. First of all, debt adjustment which is important for a retail group, having discipline in this regard, having an ambition in terms of your debt, especially when the cost of debt is higher than it used to be even though we are supported, in fact, thank you to the debt market, the levels are still higher than they were before the inflation crisis. So it's important to control this KPI. And then, of course, we have taken commitment in terms of payout policies so that we would have stakeholders, they would still be interested in supporting the group. It used to be at 30. We stated a payout level of almost 40% with EUR 1 will be paid in the coming weeks. But it is not just the figures. It's everything that goes with it. The group has made a huge effort in terms of positioning itself, becoming a leader, a reference on our market. I think you've heard a lot about that. Positioning the groups as part of the new sustainable way of doing retail. And we've continued to grow our influence within the industry at the political level, but also within society at large. And so now we're exiting this period in a stronger economic position and with stronger ambitions and commitment. So all that is well good, but the question is what lies ahead? What are the opportunities going forward? How can we go even further in terms of transiting from retail to useful commerce as we like to call it? How can we go further in terms of serving our customers and becoming central to the relation with our customers? And how can we best use the tools that we have to do there? That's really the point of this model in a world that is increasingly uncertain. We now have strong brands. And I think it's important to keep the power of our brands, is something that really helps support our relation with our customers and helps also nourish our relation with our partners.

Now -- so the world is changing at a rapid pace, at an accelerate rate. I mean, we keep talking about acceleration, but I think there's a real acceleration, and I mean, seeing the number of tweets sent out by Donald Trump every day, things are really accelerating. And it's something else that's important that we keep talking about is the climate change is the reality we shouldn't forget about, it's going to affect business, is going to create risks as well. The trajectories are over 3 degrees being added to the average temperature in the coming decades. And another reality is the fact that the population is the aging, it creates problems. But for us, it also creates needs in terms of services. The population is aging, yes. but people still want to live and they want to make the most of the available technology and culture. And certainly, they need to be better supported in this new world of services. Of course, there's the tech revolution, is scaling up AI, automation, all the things that are going to happen necessarily. And of course, we need to be there to help and support and play roles as mediator through technological -- technology,. 800 million users for the ChatGPT, things are going -- changing so quickly and we need to be able to follow suit. And of course, it's all of the political and geopolitical disruption that might have an effect on the industry sales in the world on the global chain, supply chain. So we need to sort of anticipate what's going to happen in the next decades, what the effect is going to be in consumer trust. And those are the things that we're thinking about as part of the work that we're doing with all our teams that has led us to the plan that we are now presenting to you today.

So we really believe in the future of our stores. When COVID -- the COVID crisis ended, we thought that there would be a global acceleration of Internet sales and stores will disappear. It didn't happen. I mean, maybe it happened in a few countries, but -- and e-commerce remains more important was before COVID in our countries, but relatively lower than in other European territories, so that our stores remain an important focus for our clients of our customers. And so it's important to keep investing on both channels. And in the next 5 years, I mean, we'll see where the trajectory takes us and where we land. But clearly, our stores are going to remain an important focus and an important part of our business.

And so obviously, on the technology, AI, data and customers, all of that is really very much at the center of the strategy that we're presenting today. Obviously, in the future, part of the future of our markets, we need to look at our products and there are opportunities opening up and that will be opening up in terms of refurbishing or rather people buying new or renewing their equipment. There's been a bit of a disruption in the past few years in terms of larger appliances, but we think at some point, people are going to want to renew their appliances. We also realize that innovation is going to have a major impact on new products. It's happening on a regular basis with innovation around the tech. So earlier in beauty tech, for example. There's a lot happening there, automation. And so obviously, the products that we're going to sell in the next few years will be very different from what we sold in the past. But I mean, this is just logical, and Fnac Darty was able to follow and we'll be able to do that in the coming years.

And then there's another strong trend, sustainability, having products that can be repaired, refurbished products. So we're a major player in that field. Whatever the product category, and we're making further headway. And in the future, that will also be the case. We've invested in human and technical capacities, so that we can continue to go out or find opportunities for recycling repairs. Consumers are very attentive to this. And our sales figures are continuing to increase in that field over the last years.

Also with a slight erosion of purchasing power, that's even more the case. So we're going to continue to work on that. And then there are all the other subjects related to diversification with new consumer electronics and a focus on service quality. We have ideal spaces to offer our clients what it is they're looking for and the industries, we can work with to find the right new diversified products. And that's a bit part of our brand image. We've got growth potential, of course, I'm not trying to put too much pressure on our friends from Italy, but if you look at the benchmark, the '21, '25, we're at 17, that gives us the range for potential growth. And leaders, I say, at 25%, Fnac Darty at 21%. So there is growth potential there, and we are going to try and make sure that we realize that potential. We have ambitions, we have projects, and we are going to put the resources in to make this happen. 2 million. well, Vance, you said that was a lot, but we're just a small player really compared to other subscriber service providers who've already broken through the 3 million barrier or even the 10 million barrier in other countries. So we need to have a strong strategy. We have not reached a plateau. We're a long way from that. And we need to be ambitious regarding growth for the future, strong growth potential. We have unique opportunities in the world that's looking for, meaning we have a brand that's meaningful to people, that makes sense to people. We have Fnac which is focused around culture, but also tech innovative capacity. It's modern. Darty is the heritage brand. It's a preferred retailer, close to its clients. So it's a proximity brand and Unieuro which is respected, that is popular, it's heritage brand, a legacy brand in Italy. So we are fortunate, we have brands that are strong structure of the company. Are we -- our brands are there. We're going to continue to give them meaning and to strengthen them further. Our teams as well, they're very committed. We have teams that have done amazing job of work, emerging from COVID, huge amount of work to support leaders, all leaders program, which transfers the values, strong conviction, strong beliefs to give our leaders tools and to support them throughout the programs. And this has been actually one of the great strengths of our hybrid plan. There are numerous indicators that we could quote, NPS, for instance, how have clients responded? Well, they're satisfied to a large extent, with the program, it is based on relationships, human relationships to a very large extent. What the package is delivered on time, that's important, but more still is the quality of the relationship, the time spent by sales forces and the interest shown in their needs.

In this world that's in constant transformation, we very much believe in our model with sustainability and enlighten choice for our consumers. We believe in the idea of inspiring commerce that matters that makes sense that has meaning for our clients. It also means that people who work in the company feel their job matters also. And this is part of the group's positioning on the market and opening up to a future with a more harmonious, the more robust and a more sustainable model, better aligned with the needs of the planet and our clients. We are going to be presenting the plan. The plan name is known, of course, but we're opening up a new chapter between now and 2030 today. We're going to be presenting this new chapter. Welcome to the hybrid world. And so the world of Beyond Everyday. Beyond Everyday, we love it. We love Beyond Everyday. The details not designed by AI, but are shared human collective intelligence. We're very proud of it. And I'm sure that our teams will recognize themselves in this plan Beyond Everyday with three strategic pillars. One is to go beyond repair and service, adding value, very ambitious there. Going beyond digitized omnichannel and the role of stores combined with e-commerce and also go beyond our retail, working with partners, B2C, third parties and partners throughout Europe and with the final consumer, of course, but also with business clients. So those are the three pillars that we're going to be presenting to you quickly today and the Beyond Everyday approach.

So let's begin with the first one. The idea behind this is we want to be a benchmark on the market. We are I hope, becoming absolutely indispensable for our clients. They have to have a developer reflex. I got a problem. I'll get in touch with Fnac Darty. They will help. And we want to scale up in putting that in the minds of the consumer. Clients have to develop a reflex. It's Fnac Darty for our service needs, our household needs or support needs. If we manage that, that will be natural reflex in a world in transition, and we will have been successful. We're moving into a world which is going to need services more and more. We're just saying that a while back. It's a complex world the way daily life is organized, clients need services. But the problem is where can you get those services? I'm not just talking about our business line. It's a challenge for the whole society. who can offer services that our clients need -- and we would tend to say it's not just that they need those services, they have a right to those services. And the clients must continue to have a right to service. That's a major commitment. It's a pledge that we are making, and our teams really believe in that. They are fully behind that belief. It's not optional. It's right. It's right to service, and it's up to us to deliver that service appropriately and make sure that the services are accessible and affordable.

I think we can move on a little bit now. What does this mean in concrete terms? Well, regarding products, we're going to continue to work for better products. So we've already opened up a line of action there with quality enhancement, that's beginning, obviously, with the open-ended service model. We aligned with our clients' interests and needs. We're going to continue to elevate quality of the products and the services that we sell. Our ambition is to do better than the market. We're not going to give you top line figures here, because -- even quarter-by-quarter, that's difficult, but we're talking about a 5-year horizon here. So it's very difficult, but we need to do better than the market. We want to have a profitable growth in a market that they be growing. So doing better than the market.

Innovation is really important, preempting durable innovations and driving sustainable choices. So sustainable products and services but profitable model for the group, and also engage with us industry. Our suppliers and partners. We've begun to do this. We can't do it alone. Industry needs to be aligned with us because we have a critical size now. We have greater choice than we had in the past. If industry if suppliers don't align, then they will find it hard to continue to work with a major player like a Fnac Darty. So we can have a huge impact, I think, with this critical size. And then we're going to be looking at all of the profitable market opportunities, integration at Italy and also MediaMarkt Portugal. We've here with us. And this should help us to have more own brands. So this will help us to work across the whole of the value chain. We will continue to diversify on markets that may not be growing, but we are growing with a white good Darty kitchen for instance. We have somebody here from Belgium and Luxembourg. Strong partnerships are being developed there with significant market shares now. So we are managing to get into the white goods market strongly. We have not dropped cultural goods, editorial products are important for us, and we have been bold and brave in defending music and videos, for instance, cultural goods. So we have worked with industry to invent. This is a few years ago now, co-investment models. This was unique working with video editors so to use the space in our stores, and that meant we did not lose market shares unlike all of our competitors, how Fnac is still out there with a strong position because we worked with a number of partners with unique innovative models. And this is stimulating growth because vinyl has come back. Well, why has vinyl has come back? It's not a coincidence. It's because we've invested in content, in formats. So we are the ones who shape the market with Korean music for instance, all the different types of music. Some people thought that the world of the future is going to be 100% digital. They got it wrong. Too bad for them. But we didn't. We believe in physical goods, vinyl books, and they are still significant for a brand like us.

Opportunities now around new AI goods that have AI inside. We can show you this on the side, the number of goods that are already for sale, and the penetration of services in the world of products. Payment credit, affordability, use, we're testing out new solutions of consumers are not always ready but we're continuing to work on this. We may be penetrating these markets in different ways. Refurbished goods, we'll be working on that over the last -- over the coming years. Given the trends, we seem still like a rather small player because there's been a huge development, but we need to be at the heart of these developments. So there's a lot going on, a lot of innovation. We're going to continue to educate, to train, shape personalized, more sustainable product recommendation, long life -- longer life goods, repairs, diversify our offering around the whole idea of product plus service and the strong development of circular economy in our geographies.

I'm going to speed up a little bit because I'm speaking at rather great length as is often the case. Our subscribers in 2021, we just launched this activity. Our forecast would be big gains not by 2025 but beyond. But at the moment, our ambition is beyond Darty Max to extend it to all of our subscription programs inside added nearly 2 million at the moment. We gave you some figures for February. In February, we'll give you an update every year. We're a bit more now, but we'll let you know exactly by February 2026. What we're seeing is that this diversification, the launch of new services, new subscription services, we want to get to not 2 million, but 4 million by 2030.

A major stride in sales, 80% of total services will be subscription services we hope. Stores will be at heart of these new subscriptions, but not just the stores, there will be opportunities to broaden with B2B and B2C. The white goods market, we can have new models, innovative models. It's a program that pays out in terms of profitability. You can see the impact on our margins, but this will be also very significant in terms of consumer loyalty to our brands. And we're getting a foothold in a whole new world, long-term services. At the moment, we're only covering a small part of our clients' needs, few appliances per client. But if you look closely, the needs are much greater than that. So obviously, we need to develop this further. Once we have a client subscribed, how can we diversify and broaden these services we offer them. These are services they need and they find it hard to meet that need. So extending the -- pushing back the frontiers to have more and more services per client.

The geographies, the models all be covered. All of the channels, repairs also we're going to be in 3.5 million repair products by 2030. So 1 million more than currently. We're really counting on AI and on our teams. AI will be able to predict, to preempt repairs and to make sure the right component is available at the right time, perhaps even make sure that products don't break down because Darty Max is maintenance contract and ideally, the product shouldn't break down, shouldn't need repairing. But we are hoping to have a major ramping up in this area. We're moving into a different universe from ours, which is traditionally retail, but subscriptions. The KPIs may be a bit different. How can we optimize the value of these programs? Well, ultimately, what counts is client satisfaction. If clients aren't satisfied, then we'll lose them. They've got to be satisfied with good service level, and we also need to be able to combine new programs with customizations, complete customization adapted to the specific needs of each client. Darty Fnac in Italy are the different appliances, make us into a service aggregator, bundling services, which are customized and to boost the performance of our plan. We want to make sure that we keep our clients, so we don't want to have a high churn. Our performance at the moment is acceptable, but I think we can do much better in terms of services. So we have great ambitions to continue gaining ability and professionalism, skills on these areas.

As we said in this company, there are many needs and many needs in terms of energy and energy transformation, which may open new areas where the company is not present yet. I'm very happy because discovering Italy's business, we understood that client care is Unieuro service department. And it goes much further than we do in terms of talking to their customers about some energy efficiency to. And so sometimes, clearly, with the right approach and the right partners sometimes we'll be able to penetrate that market. And that will be very much part and parcel of the approach that we'll take and of the opportunity that we'll be discussing in the near future. And once again, this is something that can be done through expansion, partnership or why not acquisition because one of the areas where our group might want to consolidate the market is by integrating as Unieuro did with Commerce Care. Integrating an player that might help us up our game in terms of energy transformation, which is so critical and important to our customers. Again, clearly, you understand what the approach is. We're not going to invent new needs for the clients, our customers have needs. And the question is how we best meet those needs in the future. And clearly, a great pillar. And the major -- that's a major pillar in terms of growth.

We have commitments around the climate, some CO2 reduction was still on a 50% reduction by 2030. This is very much on track. We've published. Our first CRD report this year, thanks to the great work done by our teams in all countries, great analytical work. But more important than the audit is the daily work that we are doing. We've invested massively in the store experience, which Francois has allowed us to cut energy consumption by 30%. It was a great exercise, I think, which has seen -- has led to great impact. It costs us at the beginning, but we're very happy about the results in terms of the customer experience and also in energy cost cutting. And the key in terms of the impact, it is around the products that we sell and how we help our customers use them in a sustainable way. But also, we need to work on electrification projects. I mean, so that this transformational project continues. So the first block being continuing to grow product base with better products, better use and reuse, going further in terms of what we sell, where and how. And at the end of the day, would sustainability commitments are in terms of future reductions in particular, 4 million subscribe at the beginning of the plan, the 80% of subscribers within B2C services, and minus 50% carbon emissions versus 2019 in 2030. That's the end of the first block. Moving on to second block beyond digitized omnichannel.

And in this regard, imagine what's going to happen in the future. I mean, today or historically, customers would find us in in the store, then provided the search engine and then for 20 years, we adapted to that with a large part of the e-commerce that came from Google searches and Google tools. And so clearly, in the future, the way the customers are going to find us in the future are multiple. A lot of what Google Search gives you is already AI-based today. And we're creating a lot of content. So that's going to be very rich, very useful to help customers in their searches because content will be there, and then they need to be ready to receive it because the transaction will then happen, and they will buy our products. So the second pillar ambition is to really define an e-commerce and commerce standard that goes beyond the omnichannel experience, something that we've created that goes to a more conversational mode. We think that the store can become an important client relations center. We have daily proof that stores are becoming critical place because the all-digital world is something that is psychologically exhausting for customers. So yes, this is going to be part of our transformation. And the key, I think, to the success of of our success in the 20, 25 years to come. So continuing to be identified as an omnichannel reference player with an important part of our business that will move to omni channel, an important part of our business is going to happen because our customers are going to be faithful. Knowing all of our clients has always been critical, but it's even more critical today in the world where technology allows us to know, retain and to adapt our sales and services in the products. And it's very important to continue to boost the Fidelity program. As we speak, 42% of our net sales comes from Fidelity programs of some sort and the idea is to move to 50% in order to better serve our customers and offer them an optimized experience wherever we meet them. Of course, there are questions in terms of efficiency and fluidity of the journey. We manage millions of parcels. We have stores that deliver thousands of parcels today. So if there's any hiccup, the consequences may be huge. So we need to improve because the omnichannel model is one that people like. So we shall continue investing in logistics, in the predictability of our orders. So the products are at the right place at the right time and can be delivered to the customers. It also means that we need to be able to work with our technological partners once again with Google. Google is partnering with us that really helped us in terms of transforming ourselves around the relevance of our research models. Soon, you'll have the ability to talk to your site, so that you can go and get the products that you need. So doing more conversation or having more conversation model through AI, I think, is something that's going to be a much better, much more friendly tool. So our model will have to adapt to that.

And technology is always at the service of people. We know that our customers come to our stores because there's the ability to have real people, real professionals that will help them choose a product or solve their problems, but humans must be assisted by technology, and this is very much going to be the case, increasingly so going forward. And I think clearly, we're going -- you'll see later will be investing in technology massively.

Stores could play an even more important role as a place what we call social retail, social commerce. Clearly, today, the -- there's a frontier that is eroding between these channels. E-commerce is more present than they used to be and Darty is going to be very present on a talk in other social media to will be everywhere. But what we say is that the store is the place where you have the strongest social interaction. So we also need to take some of that conversation back to our stores by creating experiences, more presentations, more opportunities, more encounters. And also we need to think about how we transform our stores as to make the customer journey even a smoother and give our teams the ability to moderate and animate those conversations even more so than they do today. And so there's a strong focus on the store as being central to our customer relations.

As part of this program, we also want to transform over 200 stores in various ways with more technology, for example, they will make our teams live easier to make the journey more efficient, create more available products and services to our customers. And also create better ways to present the products and services and also look at the journey and what can be done through technology. For example, we know that payment is going to be disrupted in the future. And our stores -- or not all of our stores have really converted technologically. And so we think in the future, we're going to be able to gain efficiency and productivity in our stores through a technological transformation.

As you know, we are brands there to generate millions of content, is a strong brand culturally, technologically or with regards services. In all countries, we are a brand or we are brands that generate trends, that set trends, and this is something that we're going to be capitalizing on increasingly with our digital communications and by making our stores even stronger with a strong focus by communicating more on social media, by creating more social content, et cetera.

And as part of this pillar, obviously, is what we call the human-centric care element supporting our teams is something that our leaders really need to do. I think we've had the proper focus we've done a lot already, but we need to do more in terms of having more women leaders in the group, in terms of our 2030 ambition. Some countries are doing well, so some aren't to doing that well. So we need to catch up with the non countries. I mean it's going to great challenge for our Italian and other countries to get to this 33%. So I mean, 33% could be higher, but it's a great first step. And then we need to make sure that we still have motivated teams, that we have stores that are supported by their leaders on a daily basis. We've done a great investment on tech. Olivier, I think could tell you more about it. In order to make people's lives easier on a daily basis to also look at what efficiencies we could create on all types of journeys. The journeys are increasingly complex. And so we need to be heavily focused on making our customers' lives easier, not more complicated. And those are the types of changes that create lots of benefits in terms of customer attractions. And so one thing is our team's commitment. As part of this plan, we wanted to have a focus on making it possible for employees to have at least 5%. I mean that's the goal, 5% of the group's equity without diluting our stakeholders. Of course, it will be our own in-house efforts. The figure right is about 2%, and aiming for 5% employee shareholding also sends a strong message to our teams telling them that we want to -- we want them as partners in the company's success, and that we're going to put in the resources to do that.

Also this side of technology and how we want to use those strong technological changes and disruptions with a system that's going to be changing in significant ways and will make it easier for the group to create growth, efficiency, robustness, giving our teams better tools to make the work easier and more efficient. And so lots of changes that we think will be very important to to get us to the next step.

Now other avenues in terms of growth are -- well, the avenues that we've created with our Italian partners. But of course, all -- many other doors are open and possibilities in terms of consolidating on some of our markets, and we will be ready to be an informed but also demanding a player in terms of potential consolidation on our markets.

A great brand that we have is now transforming -- currently transforming its offering with huge support from our teams. We'll tell you more about it later on. It's a beautiful brand, but its offering has been disrupted. So it needs to reinvent itself. And so Versa is the sponsor of that and there's a whole team working on that. So same quarter to continue gaining new clients, as a B2B team as this allows us to get further in terms of our product and services offerings. So huge ambitions of going to EUR 400 million in net sales. That's an opportunity to help us grow our business. And obviously, our ability to continue growing online. Today, we do have a number of reference sites that are very well structured and powerful. We have marketplaces almost everywhere. There's also an opportunity to share technology with our Italian friend because the marketplace is going to emerge in the coming half year. Digital will continue to work on the power of our brands, continuing the good work on our service quality and logistics, particularly with partners -- fulfilling partners and the diversification of all tools as we've done today.

In terms of expansion, 150 stores. I would say, Italy first is the motors. We're going to give our Italian friends the means to grow 17% market share. So there's an opportunity for doing more than that. So Bruna and her team will have resources to grow the new brands in Portugal in the next few years and also in other territories, tactically last year it was 30 stores. There's a great dynamic in terms of franchises, in proximity. And so we'll continue doing more of that in two countries will be clearly the focus of our efforts, which are going to be Italy and Portugal.

And so very quickly on this last pillar, of milestones, transforming our fleet, more technology, integrated, motivated teams and stores remaining central to our Beyond Everyday plan. And A third part of the plan is how we go beyond the traditional B2B, B2C retail model. And in this regard, we thought perhaps we could think out as a and makeup, all things that we've created available to others. Here's an example of that, something that we will launch very soon. And the ability is to create those artists website that artists can have access to their fans and all the capabilities, logistics, the contacts. It will be invisible to the public, but it will be done by us. And that's an ability to enlarge our products to some exclusive products. So it's a new avenue and a great illustration of what we want to do with this plan. In that we have some extraordinary things that we do for ourselves, but that could be used in very clever ways by others, which will contribute to the solidity and robustness of our model.

Now of course, we're thinking about very many things, logistics, services, repairs, our ability to manage our customers because, obviously, we have broad capabilities to manage customers in various ways, on various channels, the ability also to monetize our tools and source through retail media. So that's a pillar that allows us to maximize our model by using existing assets.

Now look at logistics. So we've got a number of good examples of how to develop a good technological, technical and logistical tool for third parties. So we've got partnerships with the even logistics. But this is just the beginning of the story because they're going to be looking for new clients beyond our walls and we'll use these models to go further still and transform the existing model. Care also. This was mentioned briefly in Italy as part of the sales figures come from working with companies, and we can use the same model in other geographies in France.

First, we have a very good network that delivers with Darty, and this is something that can be transformed and developed and the offer to new clients. Marketplace is important for us in terms of reach and relevance and top of mind and digital, it's significant, but it has to be at the same level of quality as the direct sales. With then we can pilot logistics. A lot of our marketplace activities refurbished products, which is an acceleration of diversification that's growing strongly. So key capacities that will be made available for our diversity in France and elsewhere.

And then, of course, I don't need to quote all of our capacities that we can offer to others. It's already being done to some extent around telecom operators, insurance companies, but this is just the beginning. It's just the beginning. And currently, we have unique satisfaction level in the market. So let's use that to go out and find new clients. We mentioned 4 million subscriber clients, so an extra 2 million could come through new channels, B2C, B2B. And as we've said, we're continuing to work on experience management, opportunity management around products, not just technological products, but cultural goods as well, the organization of events, cultural events, so which will give us opportunities to capitalize on our brands. We have subsidiaries. We have FFO, which serves 14,000 editors working with book stores. These are tools that we want to continue to develop, to continue developing our B2B and B2C offering the services.

Retail Media, of course, you're familiar with our ambitions. We are just at the beginning. We began to invest in media, in stores, various stores, screens, electronic goods, sites, all of which will help us find partners. We have the technological control. We have the skills. We'll be able to support our Italian colleagues who are just starting out here. There are lots of opportunities that we can develop. Our ambition is to get to 2% with Retail Link, that's significant, but it's well within our reach on a fast-growing market. So significant investment ahead and a good return so that we can continue to enrich the wealth and diversity of our sites.

So to continue and to wind up with this pillar to scale up and share our tools with others. Our aim is 2% to share retail media market in the total group sales and help to really strengthen the margin for the group as a whole. I may have spoken at too great lengths. I don't know, Jean-Brieuc perhaps over to you.

Thank you, Enrique. Hello, everybody. I'm now going to present the main elements of the financial trajectory of the group between now and 2030. Everyday has been very successful. And this will help continue to boost growth and performance over the coming years and generate value for all shareholders -- stakeholders. It's a complex environment we're working on. So my predictions are based on a stable fiscal and macroeconomic environment as compared to today. That's the usual practice, if you will.

On the next slide, before looking at the future, I'd like to spend a couple of minutes talking about the success of Everyday strategic plans. There's a strong focus on services as was agreed in the Everyday plan. This represents 25% of the gross margin as compared to 22% in the past. We've been developing subscription-based services, which are very important for recurrent revenue and cash flow generation. Darty Max, of course, but also [indiscernible] which represent a large share of service market. The subscription services have contributed to the increase of our gross margin by 100 basis points since 2021.

We've continued with our performance plans to compress costs because inflation has pushed up costs over the last few years. We've also maintained annual investments at EUR 160 million per year, EUR 40 million annually for Unieuro. 160 for the group as a whole, I repeat. These measures had as a result, an increase in recurrent cash flow generation with EUR 550 million of operational cash flow generated from 2021 to 2024. The financial structure of the group is robust. The leverage is continuously down since 2022. Like-for-like, it would be -- it's been 1.65x at the end of December 2024. Our cash position is EUR 1.7 billion, the same date, with some nondrawn credit lines. We have been very active in managing the debt with an emphasis on cash. Recent refinancing operations have strengthened our financial position. They've extended the debt maturity and also extended backup lines, which guarantee our liquidity over the longer term. We've had a very disciplined approach regarding dividend solicy, which is in line with our financials, with a payout that has been systematically higher every year than the 30% objective. We have been selective and strategic regarding external growth with MediaMarkt in Portugal and the more transforming acquisition of Unieuro. The acquisition of Unieuro was structured with a perfect balance between shares and cash, which shows that we're truly committed to maintain our financials and to avoid or limit dilution for our shareholders whilst seizing good growth opportunities and take advantage of attractive synergies. So we've got very robust bases to open up a new strategic chapter for the group and to support our new financial ambition.

Enrique presented to you the various projects, which help us to generate sustainable value for all the stakeholders and also to improve our profitability. As you can see on this slide, we are convinced that we will get to an operational margin of more than 3% by 2030. This is an increase of more than 100 basis points. It should be provided in a fairly balanced way by each of the strategic pillars Beyond Everyday. And I'm going to present to you some key initiatives.

First of all, we're going to optimize and renew our offering to gain market share by strengthening our leadership in premium and sustainable categories and at the same time, continue our diversification strategy. So as to respond to new uses, such as beauty tech, entertainment or culturally exclusivities, for instance. We're also going to continue to capitalize on subscription-based services. Our objective is to get to 4 million subscribers across the board by 2030, thanks to a gradual broadening of the offering, reaching to all households of all new geographies. The service share of the total gross margin of the group should by 2030, be 30% as compared to 25% today. As you know, the group has an excellent track record regarding cost optimization, and we'll continue to do so. This can be seen in the performance plans rolled out everywhere, which will be stepped up over the coming years and should generate about EUR 300 million cost savings over the 6 years between 2025 and 2030, and that should largely offset the consequences of inflation.

Deployment of expertise at European level and with our partners, particularly marketplace, logistics and in advertising should provide additional operational leverage. So these are concrete initiatives. We've already put some in place, capitalizing on the scaling up of our service offering. The transformative acquisition of Unieuro, which is being the only cross-border consolidation transaction on the European market over the last years will make a major contribution to boosting our operational margin, as you could see on the slide.

Now Unieuro operational synergies have been estimated at EUR 20 million before tax and full year. So by 2026. These synergies come from economies of scale for procurement, EUR 10 million, but also integrating owned brands, another EUR 10 million or so. This should help us to develop own brands and work better with licenses and optimize our product offering and capitalize better on the existing structures of the group, particularly the sourcing offices in Hong Kong, Shenzhen. Our ambition by 2030 is to increase threefold of operational results in Italy. Beyond the EUR 20 million of synergies I mentioned, we also hope to develop a broader service offering.

To support our strategic ambition, our new European scale, we are planning to boost investment by 2030 and also improve profitability. EUR 200 million investment in CapEx. CapEx on average over the 6 years, 2025, 2030. This is more by EUR 40 million than what has been done previously. Our stores are very much at the heart of our model, as Enrique explained. Throughout the duration of the plan, we'll be investing EUR 200 million in our points of sale. 1/3 for opening new stores in Spain, Portugal and Italy. The remaining 2/3 will be devoted to renovating existing stores and improve the client experience. We also hope to restructure by transferring some stores, closing others and maybe reducing the size of stores. These investments will be carried out throughout the plan. We expect a return on investment by 3 to 5 years depending on the project. IT CapEx will remain at the normal level, EUR 90 million and will be dedicated to improving our infrastructure and systems. We will focus more on development in particular, with simplifying and merging applications, simplifying processes, as Enrique mentioned. These investments will be made, bearing in mind strict financial criteria as has always been the case in the group so as to make sure that we maintain recurrent cash flow generation, which is a major asset of the group.

Let's look at this slide, you can see cash flow generation here. And this is the definitive indicator of long-term value creation. We have strategic levers in our plan, and we're aiming at operational free cash flow generation of at least EUR 1.2 billion over the period between now and 2030. This is up, of course. In terms of perimeter, we don't have ticketing anymore, but we do have Unieuro which will provide incremental cash over the coming years, and free cash flow will increase gradually as the plan is implemented.

We won't provide guidance year-by-year, obviously here. But bear in mind that the increase in CapEx will be offset by the increase in the operational margin as we roll out the plan. Operational levers that you've been told about will be rolled out gradually over this period, and we will also optimize working capital. We will manage inventory very carefully. And any positive development on the market will have a direct positive impact on cash generation leads to our working capital requirements.

Now let's talk briefly about our capital allocation policy with a cash generation of EUR 1.2 billion by 2030. This is essential. First of all, we're going to reinvest in the omnichannel model via the investments that I've just outlined. Secondly, and this is a significant return for shareholders. So we're going to step up our distribution policy with a payout of at least 40% as compared to 30% in the previous plan and a minimum dividend at least EUR 1 per share per year. Furthermore, if our results allow this, we will take opportunistic decisions by proposing additional return to shareholders in the form of a special dividend or by capitalizing on growth and future value generation with M&A transactions. Any acquisition project will have to create value and strengthen our position on the market without jeopardizing our cash position or the leverage of the group. In any event, we are always aiming at debt -- net debt over EBITDA ratio of 1.5x in the medium term, in line with our approach, which is to gradually reduce this so as we have done since 2022.

The group has a twofold goal. First of all, secure a significant and recurrent return for shareholders, while at the same time, maintaining debt at sustainable levels over the long term for the group. That being so, we wish to preserve and improve the group's financial flexibility in a prudent manner as has always been the case.

To conclude, on Slide 71, you'll find a summary of key indicators for our ambitions by 2030. And Enrique will now wrap up the presentation before we answer together your questions.

Thank you very much. You can see that this is a plan that's highly ambitious. A plan that is based on past achievements and success. It's got a very solid foundation. That's been built up over the last few years. We've shown you a lot of indicators, but it's based on the constant commitment of our teams. It's a collective plan. We have all of the assets to make it a success. Thank you for listening, and we'll be happy to answer any questions. Perhaps we'll begin by questions from the room. And then of course, we can also take questions from those who are watching online. We have a roving microphone, I believe. Please introduce yourselves

I've got three questions. My first question is the fact that you mentioned reequipment innovation, the types of innovation that might actually help you in your business in years to come. And I wanted to know whether you already seeing any top line impact from these reequipment cycles or the launch of new projects you mentioned switch to during your presentation? And the second question is about your margin guidance. We've seen the figure. It suggests 15 to 20 basis points per year. Can we expect a similar pace year after year? Or will there be a ramp-up phase? And the third question is on the just mentioned it very briefly. But I think in 2024, the net sales had gone down as well as profitability. That's what you said in your press release. And so my question is, what you want to implement in order to turn around the business, as you said you were during the presentation.

Thank you in terms of our revenue. Let's wait a few weeks, I mean sort of first quarter was good, but there have been some headwinds in the past few weeks. So yes, the reequipment cycle will happen. So I'm not saying it's already there. But clearly, we're seeing a lot of renewal on the Windows platforms that's going to happen in October. So that's going to affect computers, et cetera. So home appliances, it's ongoing. We really believe it. It might happen at a different pace than what we expect will depend on a number of factors, but the trend is there. My colleague will answer the second question.

On just 2% of the group's net sales, I mean, that's why we haven't spent so much time on it. We like the brand. It's a beautiful brand that customers like. It's a model that was attacked by the flooding of the European market by Chinese platform products. So Nature & Decouvertes has borne the brunt of that change. And of course, that's led us to ask a lot of questions and reexamine the value proposition and the product offering. That's an ongoing process. I think in the coming months, we're going to give you more color on this, but we're very mobilized, highly mobilized, particularly on renewing the offering and being able also to integrate new territories and renew customer confidence, but we do need a little more top line so that the brand can keep growing.

And on margin, pace of the margin, we're not giving you a year -- a multiyear plan, but the plan clearly is based on all of the pillars that we've already put in place, including the Everyday plan, but some things will take more time when you're saying overhauling our stores, recreating the customer experience or journey, it takes some time to do that to refurbish the store, et cetera. Services, for example, will be a bit faster. So generally speaking, we'll be looking at regular but not necessarily linear growth.

Marin Bernstein. I have three questions. The first one on to refurbishing what do you want to do? Is it going to Fnac Darty. You talked about a more digital environment. Can you tell us more about it? And to what degree might that impact net sales, for example, if stores have to close temporarily. The second question is on a Fnac Digital. Could you tell us whether the business model is equivalent to that of Darty Max? And whether it's Darty Max is a bigger lever in terms of the objectives that you've just shared. Last question is the free cash flow ambition of EUR 200 million a year. Should we include the operations that you've -- kind of transactions that you've done last year that helped you do reach our objective.

On store refurbishings, the idea is to make tools more -- even more relevant in a transforming world. We've reached our omnichannel objectives, all the shops, their logistics are now adapted. That's been done. But I think we'll need to work on the experience itself or investing on lighting, the lighting experience, hospitals are fine. We don't have technical -- major technical problems, no heavy work. So it's more around improving the journeys, better merchandising. We're not going to be closing major stores. It can happen. It's happening in Madrid because the whole building is being refurbished, but that rarely happens. Usually, we always make sure that our stores stay open. There won't be any major structural work happening. On digital, you're asking whether the economic model is similar to Darty Max, which, by the way, I'm not going to share with you. But the reason we're doing it is because it contributes strongly to the margin. Of course, there are costs, there are real services behind it, but it's a business model that is profitable for us and has been growing strongly with strong ambitions that you've seen it will keep growing, and probably that model is going to change over time and integrated with other So everything remains open, but soon, there will be a revolution in our offering a lot of the small products, and that could change. We'll be very much part of that. So very strong ambitions in this area as well.

On your last question, we still own about 40 stores as part of this EUR 1.2 billion. We're not thinking about selling any of them. We do it opportunistically when there's a store where we feel that we don't really have a strategic ambition there. But as part of this EUR 1.2 billion, there is no significant amount that would come from that kind of sale.

Three questions. Your objective is to have 100% of your fleet that would be profitable. Have you reached that objective? Second question, services revenue, 25% of gross margin versus 21%. It seems like a small upward trend, maybe that's to do with ticketing. What's the contribution of maybe financial services? Does that mean -- it feels like there's something that's absent from the equation. And the third question is about investment. I think 1/3 of that will go to openings. We're talking about franchise or developments of stores. I mean, I mean what kind of tools are we talking about? I mean is still growing franchises or what is it? And my last question, it feels this is on aggregate, one KPI at missing on financial calls. I didn't have my accounts in front of me, but I think your free cash flow is before financial case, but there has been some refinancing in the meantime during the first year of the plan. What kind of financial costs are looking at in order to make their free cash flow chart correct?

On stores, we had identified and of stores that were nonprofitable. And all of these stores have been dealt with. I think Francois will relocated. The surface area has been reduced. And a few of them, but very few have been closed down. So that list has been dealt with. Butwe have a fleet of 1,500 stores. So logically, every year, there will be a few stores. They will do worse than others. And so it's part of our daily job to make sure that they're all at the same level, and that implies a lot of work in terms of organization, working on the team, some investment. In some cases, it might lead us to close down the stores, but we do have a fleet that is doing its work well and that we can keep, in fact, growing marginally through franchises, particularly in France.

On revenue revenue from service is very ambitious. But the reality is you can't compare with any one because no one communicates this. I know no one has communicated how much the margin is. And we're going to give you this information because we feel it's important. And we're going to see growth of the much faster growth and contribution to net sales, because, of course, it's a different basis. But compared with the EUR 10 billion in order to grow services revenue from 10%, 15%. 10% Of EUR 10 billion is a lot in terms of the services margin. It's a strong ambition. It's a strong contributor. And all services, but mainly our own services Darty Max, the digital these are...

Yes, there are other things that contribute the bulk of that comes from our subscription-based services. On the whole of the margin, I mean, 20% of the gross margin comes from services and going to -- goes to 30%. Part of that 60% came from subscriptions and the future is going to be 20%, 30%. The rest will remain stable and it will be strong growth of the subscription part. Just to give you a little more color on the figures we gave you.

On your other question, that 6% to 30 to -- and then the IFRS, that varies from year to year, according to the maturity of our debt, then there are a few other things like 4x without penalty or without excess costs, but it's not very difficult to work out. Italy, Portugal, there will be a few stores that will expand with sometimes CapEx is being supported, sometimes even by the owners. France, the stores that we're seeing are a few franchise stores and a few smaller stores, which is why the expansion CapEx is not significant, 1/3 of the total. Most of it is going to be renewal and transformation of the fleet.

On you have two questions. First of all, what are the first projects that you're going to implement. And as far as your 4 million subscribers in 2030 objectives, what will be the share of Unieuro within that?

So as I'm going to reply on behalf of the have been a few months since we integrated the group within Fnac Darty. And so obviously, a lot of work is being done in terms of knowing, understanding, sharing and the strategic plan that you saw today was the result of that. So the first project was understanding, knowing and having the support of these partners. Opportunities, I mean synergies, integrating -- sourcing channels within our teams, sharing on the technological strategy plan, retail and media, lots of other things as well. But that's what the group is bringing and then what Unieuro is going to happen. It's in-house ambitions in terms of growing its business. As we said, it's a market that remains to be consolidated. So we're very attentive to opportunities for consolidating growing via regional access so that Unieuro can continue growing its business. In a few days ago, we inaugurated logistics platform close to Rome, and that's going to allow us to improve the penetration of our services in the sector, and south of Italy. So there's an opportunity to grow our partner share in those parts of Italy. Soi it's a strong ambition as you've seen in this ambition that we shared by our Italian teams going towards the level of profitability that is higher. And it's a good ambition. But at the same time, I think it's one that is very much in line with our shared project with Unieuro. That's, in fact, what led us to integrate Unieuro within our group. Out of the 4 million subscribers, you ask -- I mean I can't give you the figure, but it will be part of that because obviously services, the value creation. We're giving you country-by-country figures, just like that, but it will be a major figure. It is 25% of our market -- of our net sales today. And services just like that because otherwise, we'll I don't want to But it's a significant going to be our second largest country. And so we're going to develop a service model for Italian consumers and yes, we think that's going to work. So sales for covers care, which has been scaling up. So the offering is being increasingly in today, that's something that we want to support and accelerate and the idea is also maybe share experience as we as it's ongoing, renewing the offering in this kind of service. It takes some time. You don't want to help you in pace what happens on a different market. I mean with Darty Max it took us 1 year to to make sure the level of offering the services and pricing was correct. In terms of the French the market. So Italy, it's ongoing work. There's no emergency. It was important to do things correctly. Our pools were not very patient. So we'll make sure that it happens, but it's already happening.

I have a question on circular economy. I know that you've created a digital as a consortium with it versus an Clearly, could you see a figure for consumers? Do they really use these digital passports? And do you see demand there? You talked about refurbishing in secondhand and told us about the transfer. Can you measure that and make projections for years to come? And in light of these kinds of initiatives, can you assess the contribution of those types of initiatives to reducing CO2 emissions? And do you know if similar initiatives have been put in place by competitors.

The digital passport is something that is completely new. It used to create a traceability standard for products throughout their life cycles. It's a very recent thing. And we're talking to the industry so that it is adopted broadly in the sector. We wanted to be used by as many industrials is possibly so as to have visibility, traceability and create trust on the market. What's impressive and it's very true in France is what appetite there is for refurbished products. Clearly, those products are trusted by customers particularly because there are players that sell us -- sell you a product with the same level of guarantees as is the -- or warranties as if they were new. So people are talking about it, but it's hard to keep those promises and have the right level of sorting of quality sorting because buying and selling is something that's relatively simple, but you need to buy the right things and really monitor the projects and be there for your products and buying a product with a breakdown rate of 20% is not what we want to do. So we have strong expectations and demands. We think that the market is going to grow, we need to make sure that we have traceability. Other industries are doing it. And technological process you need to be able to trace more the past life of those projects is going to be if you're going to sell them on, you're going to get some extra value because your product will be certified. So it's very new. We're trying to influence the rest of the industry. There are other partners that are studying it. It doesn't cost a lot to put in place. It will create a lot of clarity and security. So I hope it will be helpful. And I think in terms of our carbon impact, the biggest contribution is 3. So it's product use. That's not about 1 million more repaired products over the period means as many products that won't be recycled by the So it is impacting in terms of millions of tons of products and material that will be used correctly. That's the best impact that we can create. So extends the life cycle of our products to make sure that they use correctly, that's the impact that we can have.

We have some questions from online viewers. On to Nagase a number of questions. Regarding diversification for kitchen goods. Aren't you afraid that your clients get very confused, Boulange stopped this completely, for instance, or other diversifications planned? Second question, what's the budget for the plan to transform the 200 stores in terms of CapEx? And what are the CapEx plans over the coming years?

For kitchen goods. Well, we have to make sure that we guide the client and we help them. We're developing a very well-known powerful brand with communication plans, expansion plans so that we can go out and grow this market. Other players are opting out, well, so much the better for us. It gives us more room, and we will continue to invest. It's a very exciting market which requires know-how, ability to advise clients to repairs. So it's a good market for us to develop in Belgium, in France and why not elsewhere. Why not in Portugal or in Italy 1 day. But it's a market where we have strong ambitions for the future.

So there was a question regarding the CapEx plan. We said EUR 200 million per year on average, throughout the plan. That's an increase of EUR 40 million as compared to the previous plan. Regarding the stores, transformation plans for stores overall, we'll be investing an extra EUR 200 million as compared to the previous plan, 2/3 of which will be dedicated to restructuring and renovation.

Are there any other questions? I think we have one here in the room.

I'm Barbara I have a question about M&A and the financial policies. You have a leverage ambition of 1.5x of acquisitions, are you thinking more in terms of bolt-on acquisitions? Or are you considering that you would increase the leverage target if you had good opportunities for acquisitions?

Well, it's always good to have a toolbox. The Italian project was done with a good mix of leverage shares and cash. It was custom made for that particular project. We have another project of a similar scale or different scales. We'll see what needs to be done and what kind of financing would be appropriate. But these projects has to contribute to profitability for the group as a whole. That's what counts. There may be M&A value generation, but there's got to be value generation and synergies. So this is important so that the long-term debt indicator remains constant. We need that in a hard-to-predict market, we need to have that. It's a matter of security. We're creating something that will create more diversification and market share. And there's a momentum and we can benefit from the momentum on the market. We will be disciplined and prudent, but there may be more opportunities than they have been over the last few years. Let's put it that way.

Jean-Francois. What's the time horizon for you for the renewal of the equipment bought during COVID? And the arrival of products which embed AI?

Thank you. Florence, you might have answered that question. Windows 11 will be running out in mid-October. So we think the PCs that were bought in the past might -- well, there might be a renewal of those because there's a new offering coming out with a good price to market. You've got products now that used to be EUR 1,000, but now they're between 800 and 1,000. So you've got PCs that are aging and AI is boosting and giving good opportunities. So there should be at least single-digit growth.

Hello, from team DP You said the 3% is your margin. Have you integrated into your plan a bit more leverage for the top line? Or do you think that you will get to those 3% with your cost economy and your plan?

Because in the past services, when they increase didn't necessarily increase the margins, the plan is based on the current conditions on the market. Flat, flat plus, slightly up. We're not expecting in these predictions of strong growth. We've proven that we can get good growth and cash resilience even in difficult times. We're counting on ourselves to deliver those -- that 3% margin, not on the improved market conditions.

Are there any further questions? If not, thank you very much indeed.

Just a few for information. There'll be another break around midday, You can go to the nation Darty stand, follow the hostesses, but the stand is U18 and 02, and 2 PM, we've got two book signings. Will Women Save the World, is 1 one the books, and we've got the AI Director for Meta. Thank you very much.