Vicat Aktie

Welcome to the Vicat 2026 Half-Year Results presentation. [Operator Instructions]. Now, I will hand the conference over to Hugues Chomel, Deputy CEO and Group CFO, and Pierre Pedrosa, Head of Investor Relations. Please go ahead.

Good afternoon, ladies and gentlemen. Welcome to the Vicat first half 2026 result presentation. I am Hugues Chomel, Deputy CEO and CFO of the Vicat Group. I'm joined today by Pierre Pedrosa, Head of Investor Relations. On slide two, as a preliminary remark, we would like to draw your attention to the fact that the forward-looking information presented here reflects our current assessment of expected trends across the group markets and should not be regarded as forecast.

Let me start with the key highlights of the first half on slide 3. In an international environment that remains complex, the group delivered strong results. Organic sales growth reached 10.8%, driven by the stabilization in Europe, the recovery in the United States, and an acceleration in emerging countries. EBITDA was EUR 367 million, up 13.6% like-for-like, with a particularly strong contribution from emerging countries.

On the back of this solid performance, we are upgrading our full year 2026 guidance to like-for-like growth of 7%-9% in both sales and EBITDA. Last but not least, on the climate front, we achieved an important milestone with the startup and the inauguration of the Catch4Climate, our joint venture with three other leading cement producers. This R&D pilot in Germany, dedicated to second generation of oxy-fuel technology, represents a significant step forward for carbon capture.

Slide 4 provides our simplified P&L. Group sales came in at EUR 2.036 billion, up 10.8% on a like-for-like basis. On the reported basis, sales growth was 8%, taking into account FX that remained headwind through the first half. EBITDA reached EUR 367 million, up 13.6% like-for-like, with the margin improving to 18%.

Net income group share was up 14.7% on a reported basis to EUR 117 million and diluted EPS amounted to EUR 2.6 over the first half, up 14.5%. Overall, the first half numbers demonstrate our ability to convert top-line momentum into profit growth despite persistent currency headwinds.

On slide 5, we take a closer look at our sales performance, which was primarily driven by strong momentum in emerging countries. As I mentioned, organic growth reached 10.8% in the first half. While all 4 regions posted positive organic growth in the first half, momentum was particularly strong in Asia, Mediterranean, and Africa regions. Starting with Europe, which posted a moderate organic growth of plus 0.9%, volumes were slightly down in France in the context of the continued soft landing of the residential market. They were stable in Switzerland, despite a particularly high comparison basis in the first half of 2025.

Prices continued to rise across Europe, reflecting the integration of CO2 cost, as well as higher energy electricity cost in France following the implementation of the CRPM contract with EDF at the beginning of the year. In the Americas, sales were up 7% organically. In the U.S., cement activity rebounded in H1, thanks to volume growth in our two regions. In Brazil, cement continued its strong momentum, supported by demand in the U.S. region, the integration of [indiscernible], which supports volume growth, and the positive price momentum.

The Asia/Mediterranean region was particularly dynamic, with organic growth of 27.7%, thanks to the contribution of all countries. In particular, volumes rose in India, Turkey, and on the Egyptian domestic market, while pricing was very dynamic in Egypt and Kazakhstan. Although currency effects remain strongly negative, this solid performance still resulted in a 14% reported growth for the region.

Africa delivered similar strong growth at 26.3% organically, mainly driven by Senegal. Cement benefited from higher volumes and some recovery in domestic prices, while aggregate posted strong growth supported by major infrastructure projects. Mali and Mauritania also contributed positively. Overall, the first half showed solid sales momentum for the group. Europe is stabilizing thanks to positive pricing. U.S. volumes are recovering, and we are clearly benefiting from our presence in emerging markets. Change in scope added 0.9% points to the group revenue growth, reflecting the contribution of [indiscernible] in Brazil. As expected, foreign exchange remained a significant headwind, with a -3.7% impact. However FX pressure eased materially in Q2, where the impact was limited to 1.7% compared to 5.9% in Q1.

Moving now to EBITDA on slide 6. Like-for-like growth was 13.6% or EUR 45 million in the first half of 2026. Volumes contributed a positive EUR 33 million effect driven by Africa, Turkey, India, as well as the recovery in the United States. Pricing remained a major performance lever. It contributed positively for EUR 140 million, reflecting price increases implemented across Europe and the emerging countries. It allowed the group to absorb EUR 134 million of additional costs, driven mainly by energy cost increase, both volume and prices, as well as high maintenance costs in Turkey and [indiscernible] in the United States, which are expected to normalize in H2.

Industrial performance improved, notably thanks to Kiln 6 in Senegal. Scope added EUR 1 million, and foreign exchange represented a tailwind of EUR 10 million or -3%. All in all, reported EBITDA rose by 10.8%. This is a solid performance for the group, demonstrating our ability to improve our profitability despite an economic environment that remained highly challenging.

Let's now take a look at EBITDA growth by region on slide 7. As you can see from the chart, 13.6% like-for-like EBITDA growth was entirely driven by emerging markets. Starting from the left, in Europe, EBITDA was down by EUR 2 million or -1.3% like-for-like, demonstrating resilience in the context of low volumes in France and rising costs, thanks to solid pricing momentum. In the Americas, the Americas were slightly similarly stable, down by only EUR 1 million, as a marked improvement in the profitability in Brazil was offset by the United States, affected by a negative price-cost differential and exceptionally high maintenance cost in the Southeast, which again should normalize in H2. Our emerging markets made the difference. Asia/Mediterranean added EUR 11 million of EBITDA on a like-for-like basis, up 14.8%, on the back of a strong performance in Egypt and Kazakhstan.

As expected, Africa was clearly the major driver, contributing EUR 36 million as the ramp-up of Kiln 6 in Senegal delivered a strong improvement in our cost base, compounded by cement price increases. So, the United States are showing some -- let's now deep dive in some of our key geographies, starting with the U.S. on slide 8. Recovery is underway in U.S. markets. In California, cement volumes rebounded in the first half, turning to positive growth in both Q1 and Q2 2026. This recovery was supported by a particularly favorable base effect. In Q1 2025, activity had been affected by the Los Angeles fires as well as adverse weather. The pickup in volumes is broad-based across the different segments in California. This is illustrated by the projects such as the Beverly Plaza mixed-use development in Beverly Hills that you can see on the first picture.

In the Southeast, volume growth accelerated in the first half of 2026 after having already outperformed a subdued market throughout 2025. Demand remains well-oriented, driven in particular by the non-residential segment and data centers demand. The second picture show the construction site of Equinix new hyperscale data center in Georgia. The United States are showing some encouraging signs of volume recovery and strong exposure to some of the most attractive segment in the non-residential market. Looking ahead, we did announce price increases early summer onward.

Turning to Egypt on slide 9, where the group is delivering another semester of strong profitability. The EBITDA margin in Egypt progressed further in the first half of 2026 to 41.7%. This is an outstanding turnaround story as we were only breakeven in 2022.

Our Egyptian business continues to benefit from strong export momentum, drawing on two significant competitive advantages: industry-leading cash cost and a clear logistic advantage with our Sinai plant located 50 kilometers away from El Arish port. Over the period, export volumes were slightly lower, largely offset by strong price realization across our export markets. At the same time, domestic market continued to pick up, supported by large-scale real estate developments and by major infrastructure projects like the Cairo Monorail. Demographic and economic growth should support long-term cement consumption patterns. On top of this, Egypt provides exposure to attractive long-term opportunities in the region, including potential reconstruction need in post-conflict areas.

Moving to Senegal on slide 10 and starting with our cement activity. The new Kiln 6 is already contributing to the improvement of our industrial performance, energy efficiency, and profitability. In the first half of the year, cement EBITDA in Senegal increased very significantly by EUR 23 million to reach EUR 32 million. This achievement reflects more of the impact of Kiln 6 and the increase in domestic prices. The industrial ramp-up of Kiln 6 is progressing, and it has already allowed us to fully substitute incoming imports, shut down two older kilns, start improving energy efficiency. It is a major step forward in terms of industrial efficiency and margin enhancements.

Kiln 6 is clearly a major midterm EBITDA growth driver for the group. Once fully ramped up and operating with a 70% alternative fuel substitution rate, the plant will generate run rate cost saving of around EUR 20 per ton. Let's stay in Senegal on slide 11, but moving to the aggregate business, which is also delivering strong results. Aggregate EBITDA rose by EUR 8 million to EUR 13 million in the first half. This performance was driven by an acceleration in volumes since the second quarter of 2025, supported by strong infrastructure demand. In particular, the business is benefiting from the demand from basalt riprap used in major public work projects.

Altogether, Senegal is becoming a robust regional growth platform for Vicat with a step change in cement industrial performance and profitability, as well as a fast-growing aggregate business supported by major infrastructure needs. Let me now turn to our cost base on slide 12. Energy cost, excluding transport, increased by 11.6% in the first half. This increase was mainly volume-driven. Excluding the volume effect, energy cost inflation remained contained, reflecting the effectiveness of our hedging policy. Transportation costs were also impacted by higher oil prices at 27% in the first half.

Most of the group transportation contracts include indexation clauses, allowing us to pass through higher [diesel] costs to the market. As we have explained in the past, our hedging policy provides protection against short-term volatility, basically six months on average, but does not make us immune to a prolonged increase in energy prices. Given the global energy cost inflation we are facing, we expect the impact on our P&L to become more visible in the second half of the year.

To summarize, cost inflation remains a headwind, and the increase in energy costs should accelerate in the second half. The group successfully implemented price increases in the first half in most markets to absorb these higher costs and limit their impact on profitability. Slide 13 illustrates how EBITDA momentum translate into EPS growth. Net financial income improved by EUR 11 million compared to the first half of 2025.

This reflects two factors: foreign exchange gain on hard currency cash in emerging country, and a lower average cost of gross debt after hedging. Our effective tax rate of the group came down slightly to 26.1%. Altogether, this translated into earning per share growth of 14.5% in the first half on a diluted basis, a direct result of strong operational execution combined with unabated financial discipline. Turning to investments and cash generation on slide 14. Net capital expenditures amounted to EUR 113 million, broadly stable year-on-year, and still including payments related to Kiln 6 in Senegal. We are maintaining strict investment discipline, and we confirm in full the objective of net industrial CapEx dispersed around EUR 290 million. Free cash flow stood at -EUR 36 million in the first half, including working capital outflow in H1, driven by strong revenue growth, business seasonality, and fuel cost inflation.

Let me remind you that our free cash flow generation is highly seasonal, both from an EBITDA and working capital perspective, as you will see on the next slide. On slide 15, this is the monthly evolution of the group year-to-date free cash flow. You can see the pronounced seasonality pattern, where our free cash flow generation is heavily weighted towards the second half of the year. You can also see that the H1 2026 profile is fully consistent with that usual pattern. We are highly confident in our ability to deliver another year of strong free cash flow generation in 2026.

The group balance sheet on slide 16, is characterized by a balanced debt structure and strong liquidity. Our deleveraging continued into H1 2026, with a net debt of EUR 1.3 billion at the end of June, down EUR 48 million over one year. This brought our leverage ratio to 1.65 times from 1.81 a year earlier. It was lower at year-end 2025 at 1.49 times due to the seasonality of our working capital requirement. Our gross debt of EUR 1.8 billion is well diversified across instrument and maturities, with an average maturity of 4.7 years and an average interest rate of 3.78% after hedging, which is down from 3.9% at end June 2025.

With EUR 491 million of cash and EUR 578 million of undrawn credit lines at the end of June, Vicat benefits from a solid financial structure and ample liquidity to pursue its development.

Turning now to climate performance on slide 17. In the first half, our specific emissions were temporarily penalized by higher emissions in the United States and India, and by an unfavorable geographic mix driven by strong sales growth in territories which carry a higher clinker content in Maharashtra, in India, in Egypt and in the United States. We continue to make strong progress in Europe and particularly in France, where the alternative fuel rate rose by 5 points year-on-year to more than 70%, with three plants, Créchy, [indiscernible], and Montalieu, now above 80%. Clinker factor in France is also decreased, supported by the commercial success of our DECA range.

Together with Paprec, we also commissioned a new waste recovery facility with a 50,000 tons capacity, capable of processing refuse-derived fuel to supply our La Grave plant in France. Beyond short-term volatility, we stay firmly committed to our decarbonization trajectory.

On slide 18, I would like to focus on Catch4Climate, a major step forward in CO2 capture in our industry. Together with three other leading cement producers, we inaugurated the Catch4Climate facility on July 8th in Mergelstetten in Germany, dedicated to second-generation oxy-fuel technology to facilitate carbon capture. The principle is to produce clinker using pure oxygen in the kiln instead of ambient air. This generates highly concentrated CO2 exhaust gases. Since the startup, the plant is already showing promising results with CO2 concentration above 90%, compared with only around 30% for conventional cement plant. This is a world premiere. This higher concentration is the key to the economics. Carbon capture is very costly because of the separation step required. The more concentrated CO2 stream allows for a simpler, less expensive carbon capture process.

Studies show that this second generation of oxy-fuel technology could lower the cost of capture, combining both CapEx and OpEx, by around 30% compared with the conventional amine-based technologies. This project is a breakthrough innovation in the cement industry and a concrete illustration of how we intend to make decarbonization technically and economically viable at industrial scale.

Moving to artificial intelligence on slide 19. On June 16, we announced the acquisition of Araïko, a French startup specialized in AI solutions for industrial companies. This transaction is an important step in our digital and AI roadmap. Araïko brings strong expertise in generative AI, agentic AI, multi-agent system, and data science with a focus on improving knowledge sharing within industrial organizations.

This expertise is highly complementary to Vicat in-house digital factory, [indiscernible], which has been developing AI-driven solutions since 2021, particularly in machine learning, real-time optimization, industrial process, and product formulation improvement. This combination clearly accelerates Vicat AI roadmap. It is also in line with our strategy to build more AI capabilities in-house. For us, this means not only protecting our data, but also retaining control of the models, algorithm, and know-how that increasingly support our industrial competitiveness.

Lastly, it creates opportunities for external expansion through client portfolio synergies. We have big ambitions in AI, which we view as a powerful operational lever that can deliver meaningful gains. Let's now turn to full-year guidance on slide 20. Following a strong first half, we are upgrading our 2026 full-year guidance.

We now expect like-for-like growth of 7%-9% in both sales and EBITDA, up from the slight growth we guided previously. Our net CapEx objective is unchanged at around EUR 290 million. The guidance takes into account more demanding second half with higher energy costs and a tougher comparison base in some countries, namely Turkey, Brazil, Egypt, Senegal. It also assumes no further significant deterioration of the Middle East conflicts, given its potential impact on our activities. Overall, this upgrade guidance confirms both the quality of the first half performance and our confidence in Vicat's ability to continue delivering profitable growth in a still uncertain environment.

Slide 21 recaps our medium-term priorities. The first priority is to maintain a strong profitability with an EBITDA margin of at least 20% over the 2025-2027 period. Our second priority is to continue deleveraging with a leverage ratio at or below 1 by 2027. This is subject to potential bolt-on acquisition opportunities in our existing geographies as we want to remain agile and keep the flexibility to seize value-creating opportunities. Third priority is to accelerate our climate roadmap and continue promoting our low-carbon products.

Together, these priorities reflect the balance we want to maintain in the medium term: strong profitability, financial discipline, and continued progress on decarbonization. Finally, on slide 22, I would like to reiterate that Vicat is well positioned to benefit from several midterm growth catalysts. Kiln 6 in Senegal is already contributing meaningfully to our performance. [indiscernible] railway infrastructure project in France has only started to contribute. Additional levers upside over the coming years, including the recovery of residential market in France and in the United States.

Lastly, the Mediterranean region offer attractive growth optionality with the reconstruction of post-conflict areas when it materializes. This is what gives us confidence in the Vicat medium-term trajectory. We combine a well-balanced geographical footprint, high-quality industrial asset, financial discipline, and clear operational levers to drive profitable growth. Thank you for your attention. I will now take your questions.

Please note that we will take audio questions from analysts only. [Operator Instructions].

First question comes from Ebrahim Homani from CIC.

Thank you for taking my questions. I have two, if I may. The first one is on your guidance. Given the organic growth of H1, the lower part of your guidance implies an increase of, let's say, EUR 7 million in H2. My question is very simple. What would be the Senegal contribution in H2? What are the [indiscernible]… Okay, thank you. My first question is on your guidance on the organic growth and if we take the lower part of your guidance, it is an increase of, let's say, EUR 7 million in H2. What will be the Senegal contribution in H2 and what are the geographies in which we have to be more cautious? My second question is about free cash flow generation. I understand the seasonality H1 versus H2, but just to be clear, the free cash flow generation will increase in 2026 or will be at the same level than 2025. Thank you.

Thank you, Ebrahim. Our guidance reflects our assessment of expected performance of the group through H2 and considering the strong realization of H1. You have to keep in mind that we will have less easy or less favorable comparison base in quite a few countries that did accelerate last year, namely Brazil, Egypt, that was very strong in H2 last year. Turkey, that did accelerate at the end of H1 last year, as well as aggregates of Senegal. As well, Senegal, as the Kiln 6 started to contribute already in H2 last year. The comparison base is very different from the one we had in H1. Second point, as stated during the presentation, we do expect the energy cost to pick up in H2 and to be therefore less favorable even if we have implemented price increases to offset those costs.

An additional point you may keep in mind is that our guidance does not integrate any more volume recovery in France in H2, as we do not see it happening. If this was to materialize, it would be, of course -- first of all, we would be ready to supply it as we have the industrial setting to do it and happy to do so. It would be an [upside risk], of course. To respond more specifically on free cash flow. As you know, we do not guide on the free cash flow. We have provided in the backup slides of the presentation, a history of semiannual free cash flow generation that illustrates pretty clearly the seasonality, both of EBITDA generation and of working capital requirement variation. Regarding working cap, I may give a word of explanation.

We have delivered in H1 a strong organic growth, that drives increase in working capital requirement. We do see the usual seasonality pattern, and there is already some inflation impacts of energy in inventory. Just in terms of days, you have to keep in mind that working capital has increased only by three days of operation. So, that's a minor variation. Most of it is activity and seasonality driven. I reiterate our commitment to deliver strong free cash flow this year.

Thank you very much and congrats for the results.

Thanks, Ebrahim.

The next question comes from Arthus Piot from On Field Investment Research.

You are very far away. Please speak up.

Sorry. Is it better now?

Yeah, that's better.

Okay. Amazing. I was saying I've got 3 questions. The first one is, are price increases currently planned for U.S. cement market like California, Georgia, and Alabama? The second one is, given the recent improvement in French indicators, do you think from conversation with your clients, they can translate into volumes in H2 this year or next year? The last one is there like any additional price increases or fuel energy surcharges being implemented in France or Switzerland in H2? Thank you.

We have announced price increase in the United States, in both Southeast and California. California in July 1, and Southeast is, depending on the states, July 1 or August 1, and it is $5. It is of course too early to know what will be the effective part of it, but as mentioned, we have a negative price-cost differential in U.S. It was already the case last year, the industry needs price increases, and we are committed to it. French indicators, well, you are right. Both permits and starts have been positively oriented for a few months already. We have not seen any signs of it materializing into cement consumption as of now. As mentioned previously, our year-end guidance does not include a recovery of the French market in the second half.

Would this materialize, we are fully ready to serve it, it would be an upside to our guidance, but as mentioned, we are not expecting this to happen as of now. There is a correlation between those early indicators and cement consumption, usually with a rather long timeline. You have to keep in mind as well that the permits and starts do include, I would say, some heavy renovation or extensions of constructions. Those are not always cement intensive. This is difficult to track and to modelize what is the actual differential of those specific projects compared to purely new buildings.

So, this may be one of the factors to explain the gap we are witnessing as of now. Regarding price increases to compensate higher energy costs, of course, we are monitoring energy costs carefully, especially transportation fuels that are the most volatile ones. It is obviously changing day after day. We cannot change our pricing policy every day. Our aim is to compensate the cost, not more, not less. As of today, what we have implemented is roughly making the job, and we will adjust as the timing goes with this specifically.

Thanks a lot. Just to bounce back quickly, you quantified the price increase in the U.S. to $5, right?

Yes… This is the announcement. I don't know what will be…

Yes. Perfect. Just to make sure, you did not announce any additional price increases in France or Switzerland for H2 yet?

Yes.

Okay. Amazing. Well, thank you very much.

As a reminder, please note that we will take audio questions from analysts only. [Operator Instructions].

We have a question on capital allocation, and more precisely on the dividend. Please comment on the dividend per share growth for 2026 and 2027. Can we assume growth in line with EPS, keeping in mind our deleveraging and the stock market not fully recognize your execution with low valuation?

It is obviously early in the year to speak about dividend decisions, and those are in terms of [indiscernible]. I can, nevertheless, remind you a few -- a few elements we shared in the full year presentation, where we had a specific capital allocation slide I advise you to look at. We consider that at current level, our payout rates has reached, I would say, more or less normalized level, but going forward, dividend will follow the results. Now it is a general trend. It is not always a year-by-year evolution. That is what I can share at this stage of the year.

Thank you. There are no more questions at this time, so I hand the conference back to the speakers for the closing comments.

Ladies and gentlemen, thank you for joining us today. Our next event will be our [9-month] 2026 review release on November 5th. In the meantime, Pierre and myself remain available and look forward to meeting many of you during roadshows and conferences. I wish you all a relaxing summer break.

Welcome to the Vicat First Quarter 2026 Presentation. [Operator Instructions] Now I will hand the conference over to Hugues Chomel, Deputy CEO and Group CFO; and Pierre Pedrosa, Head of Investor Relations. Please go ahead.

Good afternoon, ladies and gentlemen. Welcome to Vicat Q1 2026 Trading Update Presentation. I am Hugues Chomel, Deputy CEO and CFO of the Vicat Group. I am joined by Pierre Pedrosa, Head of Investor Relations. On Slide 2, as a preliminary remark, we would like to draw your attention to the fact that the forward-looking information presented here reflects our current assessment of expected trends across the group various markets and should not be regarded as forecast.

Starting with the key highlights of the quarter on Slide 3. The group delivered a solid start in an international environment that remains particularly complex. Organic sales growth was strong at 8.5%. This performance was driven by price increases in Europe, a pickup in volumes in the U.S. and strong momentum in emerging countries. Once again, this illustrates the strength of Vicat's model, which is built on a balanced geographical presence across developed and fast-growing markets. On a reported basis, sales grew 4.1%, taking into account persistent foreign exchange headwinds. On the back of this first -- of this robust first quarter, we confirm our full year 2026 guidance with a slight like-for-like growth expected in both sales and EBITDA.

Lastly, we have updated our geographical segmentation in order to better reflect business trends and to align more closely with our internal organization. You can see this new segmentation on Slide 4. The new Europe regions combines France and the former Europe region, namely Switzerland and Italy. These three countries have comparable business mixes, common strategies and similar growth drivers. The new Europe region represents 41% of group sales in Q1, which makes us a clear beneficiary of the European residential recovery when it materializes.

The new Asia-Mediterranean region brings together the former Asia and Mediterranean regions, which already shared a common management structure and similar exposures to emerging markets. This new region accounts for 22% of group sales in Q1. The Americas and Africa regions remain unchanged and account for 25% and 12% of sales, respectively. Noticeably, all 4 regions delivered growth in Q1. Let me now turn to the Slide 5 for a closer look at sales growth evolution. As I mentioned, the group delivered strong like-for-like sales growth of plus 8.5% in the first quarter. This performance was broad-based with solid like-for-like growth in 3 of our 4 regions and particularly strong contribution from Asia-Mediterranean and Africa.

Sales were up organically by more than 20% in both regions. While Europe stabilized, the Europe -- the Americas also delivered significant like-for-like growth at plus 7.7% with a rebound in the U.S. Recent acquisition accounted for a plus 1.4% scope effect. As expected, foreign exchange remained a significant headwind in the quarter with a negative impact of 5.9% or minus EUR 52 million. This mainly reflects the weakening of the U.S. dollar, the Turkish lira and the Indian rupee against the euro over the period.

As a result, group sales stood at EUR 922 million, up 4.1% compared to the first quarter of 2025. Let me now briefly go through the highlights of each geography, starting with the new Europe region on Slide 6. With sales of EUR 381 million in Q1, Europe as a whole stabilized organically at minus 0.9%, supported by positive pricing momentum across the region and was up 1 point on a reported basis. In France, Cement volumes were slightly down due to adverse weather conditions and municipal elections. Prices increased mainly to offset higher electricity costs triggered by the shift to a new electricity contract with EDF, namely CAPN, as well as CO2 implied costs. An additional price surcharge has been announced effective in May to offset the effects of the energy crisis. The French residential market, which is a key growth driver for Vicat in the region, continues its soft landing.

While leading indicators are somewhat encouraging, the recovery should remain modest and gradual this year and more skewed towards the second half. In Switzerland, the pattern was similar with positive price momentum helping to keep our Cement activity stable following a very strong start of the year in 2025. Overall, Europe demonstrated good resilience in Q1 with solid pricing momentum.

Turning to the Americas on Slide 7. The region delivered a strong quarter with sales up 7.7% on a like-for-like basis and 3% on a reported basis, reaching EUR 228 million. In the U.S., Cement activity rebounded, driven by volume recovery in California. This was helped by a favorable base effect and also some early signs of improvement in nonresidential demand, particularly in the Southeast, supported by data center-related activity. The residential market, however, remained weak and will most likely remain so as long as interest rates stay high. Brazil also reported a solid performance as Cement activity continued to grow, supported by healthy demand in the Midwest region and by the contribution from readymix.

As the U.S. dollar weakened against the euro, sales in the region were affected by negative FX impact. But overall, the Americas delivered a solid performance with encouraging signs in the U.S. Moving to the new Asia-Mediterranean region on Slide 8. As I mentioned, like-for-like growth was 21.2%, but largely offset by the depreciation of local currencies against the euro. On a reported basis, sales grew 2.9% to EUR 203 million. While all four countries delivered like-for-like growth, the main drivers were India and Turkey.

In India, volumes increased, while prices remained stable at a low level. Turkey continued to deliver a strong performance, benefiting from a low comps in Q1 and well-oriented demand in Central Anatolia. Egypt posted a decent performance supported by prices -- price momentum despite being impacted by a calendar effect that will be offset in Q2. Overall, the region's performance highlights the strategic value of our exposure to emerging markets. Despite persisting foreign exchange headwinds, they remain a key area of growth for the group.

Let's finally turn to Africa on Slide 9. Africa was also a strong growth contributor in Q1 with like-for-like growth of 22.2% and a very similar increase on a reported basis at 21.1%, bringing the region sales to EUR 110 million. This performance was notably driven by strong momentum in our aggregate activities in Senegal, where demand is supported by major infrastructure projects. In the Cement activity, we are moving ahead with the ramp-up of Kiln 6, which is already delivering a significant improvement in our production costs in the region.

On Slide 10, we provide a deep dive into our aggregate assets in Senegal, which have been performing well for the past 12 consecutive months. We operate 2 aggregate quarries in Senegal, one producing basalt and the other limestone with a combined annual capacity of more than 3.5 million tonnes. The Diack quarry dedicated to basalt production is the largest aggregate quarry within the group. It allows us to be the market leader in Senegal on this segment. We are currently benefiting from an acceleration in aggregate volumes in Senegal following a year of relatively -- relative wait and see. After the new presidential team took office, there was an extensive audit period of a major infrastructure project in Senegal, which penalized activity in 2024.

Since Q2 2025, the market is accelerating, supported by solid demand. Highway projects such as Dakar-Saint Louis and Mbour-Kaolack as well as more specialized infrastructure projects, including preparatory works for the port of Ndayane and coastal reinforcement works on Goree Island, all required by [ basalt ] and represent strong upcoming growth drivers. Moving now to Slide 11 on our energy bill and the way we manage our exposure to energy costs. In 2025, the group energy bill amounted to EUR 513 million, representing around 13% of group revenues.

This cost base is mainly composed of fuels used in our processes, which account for slightly more than half of the total, followed by electricity, which represents around 1/3 of the bill. and transportation fuels mainly related to our logistics activities. If we take a closer look at our thermal energy bill, it is largely based on coal, petroleum coke (sic) [ pet coke ] and alternative fuel, which are increasingly used as a part of our climate strategy. As a reminder, the best way to hedge against inflation risk is to increase the rate of alternative fuels. The group is already at 37% in 2025 and is targeting 50% by 2030. Our exposure to natural gas remains very limited at group level and is primarily concentrated in the United States.

The group has implemented a systematic hedging strategy tailored to each market. For fossil fuels, we typically hedge around six months ahead by combining inventories and orders in transit. For electricity, we deploy hedging only in countries where power markets are deregulated. In other countries, electricity managed locally under regulated tariffs. Finally, for transportation fuels, we use indexation mechanism and when necessary, voluntarily price increases to mitigate higher diesel prices.

Altogether, this hedging policy provides effective protection against short-term volatility. However, it does not make us immune to a prolonged increase in energy costs which is why we monitor very closely the evolution of the situation in the Middle East and its consequences for energy markets. Turning now to full year outlook on Slide 12. While the Q1 performance marks a solid start for the year, we remain cautious and mindful of the persistent macroeconomic and geopolitical uncertainties. Therefore, the group confirms its outlook for 2026, which is a slight growth in both sales and EBITDA on a like-for-like basis and net industrial CapEx of around EUR 290 million. This is, of course, subject to the absence of significant escalation or prolonged continuation of the conflict in the Middle East, given its potential impacts on energy costs and on the macroeconomic environment.

And lastly, let me reiterate on Slide 13 that while the current international environment clearly calls for prudence, Vicat is well positioned to benefit from significant medium-term growth drivers across all its regions. Several of them have already become visible. Firstly, Kiln 6 in Senegal is already improving significantly our operational costs in Africa. In France, the TELT project will provide multiyear support to activity.

The gradual recovery of the French residential markets when it materializes, will represent an important catalyst for the group. While the pace of recovery is likely to remain measured in the near term, the leading indicators are still well oriented. In the U.S., residential recovery remained at a low level, which implies meaningful recovery potential once interest rates become more supportive. Lastly, -- some emerging markets in the Mediterranean area offer attractive midterm growth opportunities, including potential reconstruction needs once current conflicts eventually resolve. To conclude this presentation, we believe that Vicat is well positioned to combine resilience in today's environment with attractive growth opportunities for the years ahead. This reinforces our confidence in the group trajectory and value creation potential. Thank you for your attention, and I will now take your questions.

[Operator Instructions] The next question comes from Arthus Piot from -- on Field Investment Research.

Actually, I have four of them. So the first one would be assuming all fuel and power prices remain at current levels, what additional cost inflation should we expect in H2 2026 as your hedge roll over? Then about the price increase that you mentioned in May in Europe, can you give us a bit more detail, please? And several U.S. cement companies announced price increase in April. You are mentioning July. Does that mean that the price increase in Alabama and Georgia were not successful? Or have you chosen a different timing for commercial reason? And lastly, have you ever seen any -- have you seen any additional price increases from cement producer in Brazil, India, Turkey or Egypt? -- due to higher pet coke and transportation costs following the start of the [ conflict ] ?

Thank you for your multiple questions. I will try to remind all of them. Yes. First of all, regarding price -- energy price increases, as we have detailed in the presentation, we are not directly exposed to petroleum and very little on gas. So the likely inflation mostly would come through pet coke and coal and to a lesser extent, electricity in unregulated tariffs. What we will try to do if current levels are maintained is to aim at neutral price cost variance during the year, announcing price increases ahead of actual cost in our P&L. So your various other questions will give me the opportunity to illustrate that movement. We have announced an energy price surcharge in France effective in May of EUR 3.5 per tonne. So that will allow us to cover the current price impact, and we will adjust with time depending on the evolution of situation, knowing that we have had this experience in the 2022 crisis of trying to inform the market as early as possible of our intention in this field.

In the U.S., we have indeed pushed our price increases to July. And we are in an inflationary environment, both to some extent, from energy and to wages. So we are committed to pass a price increase. It is nevertheless a little early to comment the market reaction to that. We have well noted other players' commitment to managing inflation as well. Regarding emerging markets, we have had a good price evolution in Brazil so far this year, that is indeed more than covering inflation at this point. There has been a high single-digit price increase in April in India. In Kazakhstan, typically, prices are finally catching up from previous year's cost increases, and we have a high double-digit number year-to-date. Turkey and Egypt, we are having significant price increases that allow us to cover inflation and including in the hyperinflation context we do have in Turkey. And in Senegal, we were able to have one price increase -- mid-single-digit price increase in Q1 and a slightly smaller one in April. So that can illustrate our capacity to be -- to manage inflation in the different emerging markets.

The next question comes from Ebrahim Homani from CIC.

I have three, if I may. The first one is about the organic growth do you expect in the -- which dynamic do you expect in the next quarters in terms of organic growth in Europe, especially in France? My second question is about your guidance. I know that Q1 is a small quarter. But with the advance you took in Q1 regarding the organic growth, are you more optimistic about your guidance and also your leverage? And my last question is about Senegal. You now have a positive price effect. Is the competitive environment better than it was the last quarters?

Thank you, Ebrahim, for your questions. I mean it's difficult to predict organic growth going forward. We can nevertheless share a few comments regarding France.

As you know very well, advanced indicators, housing starts and permits have been improving for quite some time now. However, at this stage, it is not reflected in our volumes on our catchment areas. So the timing of a recovery remains very uncertain at this stage. And our central assumption is a slight and gradual recovery from H2 onwards. Nevertheless, we -- as you know very well as well, the political context, specifically the mounting agitation around the presidential election also calls for some prudence in the general business confidence. Regarding our guidance, you may remember that we have indeed delivered a very good Q1, and it is a good start of the year. Nevertheless, as you know, Q1 is a small one, and that does not allow to straightforward extrapolate to the full year.

So the situation of Middle East and its already its impact on energy prices is clearly a headwind. And furthermore, it does deteriorate the macroeconomic visibility. So today, the impact has been limited. Hedging strategies give us time to react and to put in place necessary price increases. As I just mentioned in your previous question, French volume remain low at this moment and the improvement is uncertain. So that -- all that give us confidence that we can achieve our guidance, but also draw attention to some prudence. Finally, in Senegal, I think the market acknowledge that there has been significant inflation in the recent years and the low level of prices is not sustainable. So I think the 2 adjustment -- price adjustment we have witnessed in Senegal so far are just a reflect of common economic sense, but inflation needs to be passed to the market.

Now move on to the written question. We have 2 questions from Auguste Deryckx from Kepler Cheuvreux. So first question, could you share what leading indicators you are currently monitoring in France, permits, housing starts, order book, and whatever you are already seeing early signs consistent with this expected H2 volume improvement?

Thank you, Pierre, and thank you, Auguste. As I just mentioned, we are indeed monitoring those leading indicators. that have turned positive in the middle of last year. Historically, we have never demonstrated a clear time gap between the variation of those indicators and cement consumption. So we do expect this recovery to materialize somewhaet. But as I commented earlier to Ebrahim's question, we believe this will remain limited in '26 and late in the year.

Second question. You delivered strong volume growth in Q1, partly supported by a favorable base. How should we think about the sustainability of this momentum over the rest of the year? How do you see the balance evolving between volume and pricing?

Yes. As mentioned and as pointed out in your question, the Q1 realization benefits from a favorable base in several countries and more specifically in U.S. and in Turkey and to some extent, in Senegal as well. So -- and as confirmed in our guidance, we are not seeing such high growth on a full year basis.

As mentioned as well, we will be proactive on price increases to pass on any additional price inflation effects as much as we can. So this may support the top line, but probably in less positive volume environment with differences from one market to another. Okay. Ladies and gentlemen, if we don't have a further question, thank you for joining us today. The next event will be our H1 results on July 29. In the meantime, Pierre Pedrosa and myself remain available and are looking forward to meet you during our upcoming roadshows and conferences. Have a good day.

Welcome to the Vicat 2025 Full Year Results Presentation. [Operator Instructions] Now I will hand the conference over to Guy Sidos, Chairman and Group CEO; Hugues Chomel, Deputy CEO and Group CFO; and Pierre Pedrosa, Head of Investor Relations. Please, sir, go ahead.

Thank you. Good afternoon, ladies and gentlemen. Welcome to Vicat's 2025 Results Presentation. I'm Guy Sidos, Chairman and CEO of the Vicat Group. Alongside me, I have Mr. Hugues Chomel, Deputy CEO and CFO; as well as Pierre Pedrosa, Head of Investor Relations.

On Slide 2, as a preliminary remark, I would like to draw your attention to the fact that the forward-looking information presented here reflects our current assessment of expected trends across the group's various markets and should not be regarded as forecast.

On Slide 3, 2025 is part of a solid and sustainable performance trajectory, illustrating the strength and resilience of Vicat's business model. Consolidated revenue amounted to EUR 3.85 billion in 2025, reflecting an average annual growth rate of nearly 7% over the past 5 years.

EBITDA reached EUR 771 million which representing average growth of close to 7% over the same period. ROCE remained stable at 8.1% [indiscernible]. Lastly, the group's leverage ratio continued to decrease, reaching 1.49x in '25 [indiscernible] Vicat's financial structure.

These results once again demonstrate Vicat's ability to consistently combine operational performance with financial discipline in a demanding environment. Let's move to Slide 4. As a reminder, Vicat's business model is built on several key pillars that underpin its resilience.

First, a family shareholding structure and a long-term vision grounded in continuity, which enable us to pursue a consistent and sustainable industrial strategy. We are a cement-focused business and benefit from [indiscernible] high-performing industrial asset base vertically integrated across the value chain.

We have [indiscernible] decentralized organization which [indiscernible] needs of a markets. [indiscernible] long standing collection of innovation [indiscernible] capabilities [indiscernible] invention of [indiscernible] in [ 1817 ] today is low-carbon cements such as [indiscernible] we're positioned as a key player of our industry in decarbonization.

Firstly we benefit from geographically diversified portfolio across both developed and emerging markets. This [indiscernible] and provide a foundation for [indiscernible] model fully aligned with the ongoing [ confirmation ] of our sector.

Slide 5 provides an analysis of the group's investment cycle over the past 10 years and how we have balanced our strategic priorities with financial discipline.

Following an initial phase between 2015 and 2018 during which investment levels remain stable, we made the decision from 2019 onwards to accelerate capital expenditure at a time when funding conditions were [indiscernible]. Since 2023 in a context of [indiscernible] we've been to capitalize on discuss [indiscernible] [ eye catch flows ] [indiscernible] deliver of investment consistent [ reach over ] initial goals.

Turning now to the key highlights of 2025 on Slide 6 in a complex international environment is a group delivered solid results. Organic revenue growth came in at 3.3%, accelerating to 8.1% in the first quarter. EBITDA reached EUR 771 million, representing organic growth of 3.7% compared to a record year in 2024.

However, foreign exchange headwinds had a significant impact in a slight EBITDA decline on a reported basis. For the third consecutive year, the group generated strong free cash flow amounting to EUR 324 million in '25 and continued to reduce its net debt. [Firstly] we made further progress on decarbonization reached an important milestone in securing the financial of VAIA of flagship carbon capture project in France with the award of 2 subsidies at both the Europe and France levels. Altogether, these elements once again illustrate the strength of Vicat's model, which is able combine operational performance and [indiscernible] decarbonization.

In France, as shown on Slide 7, the residential market has gone through an unprecedented slowdown and is now at the lowest level in 25 years. As far as we are concerned, we have lost [ 600, 000 tons ] of cement over the past 3 years, representing nearly 20% of our production.

Despite this [indiscernible] France showed remarkable resilience in 2025. After 6 consecutive quarters of decline, volumes stabilized in the second half of 2025 at a low level with a slight rebound in the fourth quarter. While visibility remains limited, notably due to the political concept and the upcoming municipal elections in France, this development is encouraging in the context of reduced interest rates.

Let me remind you that residential need in France aiming very [indiscernible] is specifically intended to address this situation [indiscernible]. As a result [indiscernible] aligning for [ moderate ] and progressive recovery from 2026 onwards. [indiscernible] long standing roots in France which represents 31% [indiscernible] revenue.

A very [ bad ] capacity Vicat is very well positioned to benefit from [indiscernible]. As soon as [indiscernible] France as shown on Slide 8 it's a TELT project [indiscernible]. So this project [indiscernible] [ mature ] to [ agility ] in 2025. It is [indiscernible] largest civil engineering project and construction year ago.

[indiscernible] which is commissioning of the [indiscernible] boring machines is expected to [indiscernible] cement construction in 2026. And develop [indiscernible] from '27 onwards. Overall we've [indiscernible] secured more than 1.3 million tonnes of cement. As well as around 4 million tonnes of [indiscernible] like to come into the project.

I will show [indiscernible] which a [ cage ] name CO11 which we won jointly Vinci. Just [indiscernible] treatment of [indiscernible] material into [indiscernible] 24 million tons of material will be sorted with the objective of recycling of [indiscernible] and we have [indiscernible]. And today is a 10th project for [indiscernible] operation in France, it will provide [indiscernible] support to our volumes over the next 7 to 8 years.

More broadly, the outlook for the infrastructure segment in France is [ promising ] with good visibility over the coming years. The launch of the French access work for TELT which is in addition to the main [indiscernible] probably near over [indiscernible] plant. [indiscernible] it's a new generation of [indiscernible] in France in [indiscernible] this are a few jump [indiscernible] activity in [indiscernible] U.S.

In Brazil now on Slide 9 [indiscernible] performance in 2025 [indiscernible] market momentum and sustained [ commercial ] development in [indiscernible] and the state of Goias. In 2025 we completed acquisition of Realmix a readymade concrete [indiscernible] this [ construction ] [indiscernible] ocean and 2 additional cement and [indiscernible] use. Also you get [indiscernible] 1st of September of 2025 [indiscernible]. Realmix made with the [ automation ] [indiscernible].

In Brazil we generated EBITDA EUR 63 million in 2025. Even by your market growth. A strong performance of [indiscernible]. The contribution of [indiscernible].

It was noted on [indiscernible] on Slide 10. [indiscernible] strongly in 2025 [indiscernible] EBITDA inching EUR 58 million up by nearly [35%]. A [indiscernible] wide across [indiscernible] increased by 19% in 2025. The construction market in this region [indiscernible] demographic trends which population we are getting from [indiscernible] 2023 of stretch towards [indiscernible] .

[indiscernible] in 2025 [indiscernible] project [indiscernible]. We are also seeing some production capacity being directed towards export markets, which favors domestic players such as [indiscernible]. And in the current inflation on environment who have been able to adjust of [indiscernible] protective market.

On Slide 11 in Egypt, the remarkable turnaround of our performance continued in 2025. EBITDA once again increased sharply, reaching EUR 61 million, up by nearly 79%, sorry, with margin rising to 37.3%.

Export volumes remain sustained and the rebound of the domestic market was confirmed in the second half of the year [indiscernible] launch of [indiscernible] projects [indiscernible] continues to [indiscernible] for the group up to [indiscernible] who potential of [indiscernible].

At this finally turned to Senegal on Slide 12. Where we are made a major adjustment over the first few years. That it was started in June 2025, [ '26 ] as continue to run [indiscernible]. Delivering first [indiscernible] financial confirmation [indiscernible]. As a reminder of [indiscernible]. high performance facility is intended to replace in 3 and 4 and to [indiscernible] and will generate cost saving of EUR 20 per ton of cement in the coming years. The ramp-up of [indiscernible] will continue this year and will be a key driver of the group's performance in Africa in '26 and '27.

I will now hand over to Hugues Chomel for a more detailed review of our financial statement.

Thank you, Mr. Sidos, and good afternoon, ladies and gentlemen. I will start with the main highlights of the group consolidated income statement on Slide 13. Revenue amounted to EUR 3.854 million, representing an organic growth of 3.3%, but remaining broadly stable on a reported basis due to a negative foreign exchange impact of EUR 242 million.

EBITDA reached EUR 771 million, up organically by 3.7%, in line with the plus 2% to plus 3% target communicated last July. The EBITDA margin, therefore, stood at 20%, consistent with our medium-term priority.

Net income group share increased by 6% at constant scope and exchange rates, reaching EUR 275 million. Despite a particularly negative foreign exchange impact in 2025, the quality of the group results demonstrate once again our ability to deliver solid operational and financial performance in a challenging economic environment.

On Slide 14, you can see the evolution of the revenue by region in 2025 compared with 2024. At constant scope and exchange rates, the solid organic growth delivered across the group reflect contrasting trends from one region to another. France recorded a slight increase on a reported basis, supported by the gradual stabilization of the cement business in the second half of the year, as mentioned by Mr. Sidos, and by the positive contribution of the integration of Cermix since Jan 1, 2025.

The Europe region grew by 7.9% on a reported basis, benefiting beyond the appreciation of the Swiss Franc from the recovery of the market in Switzerland, VGA's exposure to major infrastructure projects as well as the commercial success of our low-carbon offering. Americas posted a decrease, mainly reflecting the slowdown in United States. This decrease was, however, partly offset by the strong performance in Brazil.

In U.S., interest rate remained high throughout the year, penalizing the housing sector. Uncertainty resulting from the tax and tariff changes created a climate of instability, which impacted the non-residential markets. In this environment, the group performance was contrasted across regions with growth in the Southeast and a sharp decline in California.

In Asia, revenue recorded a slight organic decline of 1.5% Activity in India remained volatile due to a highly competitive environment, particularly in the south of the country, which put pressure on pricing despite an improvement in the second half of the year.

The Mediterranean region stood out, delivering organic growth of more than 30%.

Lastly, Africa posted a slight decrease of 2.9% despite the strong performance in Senegal, notably driven by an acceleration in aggregate sales following the restart of major public infrastructure projects.

As you can see on the chart on the right of the slide, the group organic growth accelerated throughout the year, reaching plus 8.1% in the fourth quarter.

Now turning to Slide 15 to the evolution of EBITDA, whose main drivers are illustrated on this chart. The increase at constant scope and exchange rates is mainly explained by a positive volume effect in cement, concrete and aggregates. Overall pricing developments allowed to offset cost increases, which were notably driven by wage inflation.

Industrial performance also contributed positively, notably in Senegal. Foreign exchange had a negative impact of EUR 46 million. This reflects the depreciation of all currencies in which the group operates against the euro with a notable exception of the Swiss Franc.

Let me remind you that 59% of the group revenues is exposed to non-euro currencies. Overall, EBITDA recorded a moderate decrease of 1.6% compared to 2024, which was a record year for the group. Therefore, this can be considered a very solid performance given the environment we faced in 2025.

Moving to Slide 16. 2025 was also characterized by a strong cash generation. We maintained strict investment discipline. Net CapEx amounted to EUR 299 million, down compared to 2024. CapEx was split more or less evenly between maintenance CapEx and strategic CapEx, including the cash outflows related to Kiln 6 in Senegal.

This discipline will be maintained in 2026 with expected CapEx of around EUR 290 million. For the third consecutive year, the Vicat Group generated strong free cash flow amounting to EUR 324 million in 2025 and illustrating the highly cash generative nature of our business model.

As shown on Slide 17, this free cash flow of EUR 324 million notably reflects a further reduction in working capital requirement and as I just mentioned, control over CapEx. The cash conversion rate stood at 42% in 2025 On basis and taking into account the group's market capitalization at the end of January. Vicat free cash flow yield is around 9%, one of the highest in the industry.

This highlights both the strength of our cash generation and the rerating potential that remains significant despite the share price increase over the past year. This cash generation enabled us to continue our deleveraging trajectory. As shown on Slide 18, the group net debt decreased by EUR 85 million in 2025 to reach EUR 1.151 million.

The leverage ratio stood at 1.49x EBITDA, marking a further reduction in line with our priorities.

On Slide 19, you can see a detailed breakdown of the group net debt at the end of 2025. It is characterized by a well-balanced maturity profile with an average maturity close to 5 years. Average interest rate was 3.86% before hedging in 2025, down significantly year-on-year.

Gross cash at EUR 528 million and EUR 877 million of available undrawn credit lines, the group benefits from strong liquidity and the resources needed to continue pursuing its development.

Thank you for your attention. I will now hand it back to Mr. Sidos.

Thank you, Hugues. Let me now briefly comment on Vicat's climate performance in 2025 on Slide 20. We made further progress towards our 2030 targets across all key indicators, particularly in Europe. In France, we continue to pursue a particularly ambitious trajectory [indiscernible] below 80%. [indiscernible] an increase in the alternative fuel rate to more than 70% of 5 percentage points year-on-year.

This made us [ concrete ] machine [indiscernible] of their old performance. In 2026 the [indiscernible] in France focused on [indiscernible ] as well as [indiscernible] with regard to alternative fuels should accelerate the reduction of our emissions. [ Auctions ] were to extent renovation you can see 2 examples on the left-hand side of this slide. [ Product ] innovation with Progresso that makes the first concrete of Switzerland with emissions of less than 100 kilograms of CO2 [attribute] better.

[indiscernible] innovation [indiscernible] catch for climate which will be [indiscernible] and aim to facilitate CO2 capture while reducing the [ costs]. You can see on Slide 21 that at the group level, low-carbon cements accounted for nearly 1/4 of total sales volume in 2025.

This indicator which we are presenting for the first time today is calculated in accordance with the methodology defined by the International Energy Agency and adopted by France Ciment. In France, the commercial success of [indiscernible] continues. In Switzerland nearly 100% of [indiscernible] classified as low-carbon [indiscernible] products such as Progresso which I mentioned earlier and which is also remarkable commercial success.

We're also a leading player in low-carbon cement in California and Brazil. The carbon footprint of our products continues to improve in line with our climate road map. This road map is supported by initial investments and by acceleration of low-carbon innovations.

Turning to Slide 22 now. Regarding VAIA of carbon capture project in France, we reached a major of a new milestone with the award of 2 subsidies at both the European and French levels. These awards demonstrate the credibility of our approach and our commitment.

I remind you that the VAIA project aims to capture and sequester 1.2 million tons of CO2 per year at the Montalieu-Vercieu cement plant largest facility in France. The captured CO2 will be transported by pipeline to Fos-sur-Mer which should then be liquefied before being shipped to its storage site in the [indiscernible] at each stage I mean [indiscernible] shipping and storage.

The subsidies awarded to us for this project amount to [ EUR 340 million ] combining French [indiscernible] and the European Innovation Fund grant. [indiscernible] expected to be [indiscernible] contractual agreements of as coming months. As a reminder the estimate in investment for the [indiscernible] VAIA project alone amongst to EUR 700 million [indiscernible].

[indiscernible] essential connection for the project [indiscernible] of making the final investment decision by Jan of 2027.

Slide 23 illustrates[alludes] important performance [indiscernible] walking on for many years Artificial Intelligence. Which we have to bring as an [ occasional ] tool to support our businesses. Artificial Intelligence initiatives are led by Digital Factory 1817 at the year of invention of [indiscernible] cement.

[indiscernible] 22 people also works for external clients. We the [indiscernible] twofold. First, at the service of industrial performance across all cement plants. Also [indiscernible] time optimizer solution [indiscernible] productivity gains in our facilities it improves quality and enhances [indiscernible] installation. This tool as already been deployed at several pilot sites [indiscernible] in Switzerland and Kalburgi in India. And we intend to accelerate its rollout. We are targeting productivity gains of at least 5% this is a near beginning.

At [indiscernible] level this tool [indiscernible] capacity by around [indiscernible] this represents [indiscernible] fund additional cement position line with a very, very [ limit ] investment.

[indiscernible] AI as a powerful tool for [indiscernible] there are many potential uses cases and [indiscernible] improving concrete formulations optimizing concrete and aggregate logistics [indiscernible] for sites and those of our customers and [indiscernible] our processes.

Artificial Intelligence is [indiscernible].

Turning now to 2026 on Slide 24. Growth momentum is set to continue despite persistent macroeconomic and geopolitical uncertainties and foreign exchange rates are likely to remain volatile and unfavorable. In this context, we remain confident in the group's ability to continue delivering robust performance supported by its strong operational fundamentals in 2026 at this early stage of the year we [ socially ] expect slight growth in sales on a like-for-like basis, slight growth in EBITDA on a like-for-like basis and net CapEx of around EUR 290 million.

[indiscernible] capital allocation in the Slide 25 [indiscernible] free cash flow generation and consistent financial [indiscernible]. This [indiscernible] built on 3 pillars. The first pillar preservation of a solid financial [indiscernible] of strong liquidity.

[indiscernible] to investment we intent to maintain the figures discipline while investing consistently [indiscernible]. Finally this [indiscernible]. dividend aim to maintain an attractive description [indiscernible] earnings information. [indiscernible] investing safety [indiscernible]. attractive return to our shareholders.

So let's now move naturally to the dividend on Slide 26. Based on this 2025 results I'm confident in the group's ability to keep delivering profitable growth, the Board of Directors has decided to propose to shareholders the distribution of a dividend of EUR 2 per share, which stands out for its stable and highly predictable distribution policy.

I will remind you that the dividend has never been reduced in the past few years.

Let us switch to Slide 27. Vicat is proceeding consistent growth trajectory as [indiscernible] 3 mid-term [indiscernible] priorities which we are confirming to first maintain an EBITDA margin of at least 20% over the [ '25, '27 ] period. [indiscernible] continue over deleveraging.

Finally [indiscernible] with strong omissions to [indiscernible]. This [indiscernible] priorities under [indiscernible] growth.

On Slide 28 to conclude [indiscernible] goes in coming years we'll be super [indiscernible] drivers, several of which are already underway today. First, in 6 in Senegal, as [ Hugues ] already mentioned it is a major lever of competitiveness. That we have [ material ] impact on [indiscernible] how performance in the [indiscernible]. So once it's [indiscernible] project it's confirmation to a cement and you'll get a sales already visible and it is expected to intensify supporting our activity in France over the coming years. Also in France [indiscernible] residential market is [indiscernible] to look on which was significant [indiscernible] potential in more than 30% of [indiscernible] France. The [indiscernible] is very well positioned to benefit for this upturn when it materialize. Similarly in the US residential construction is going [indiscernible] potential of [indiscernible].

Finally the [indiscernible] significant mid-term [indiscernible] potential reconstruction needs that [indiscernible] confidence in [indiscernible] mission to pursue disciplined, sustainable and value-creating growth.

[Operator Instructions] The next question comes from Tom Zhang from Barclays.

So 3 questions from me, if I may. The first one, you've talked about significant price hike announcements in France this year. I know it's early in the year. We don't know enough about how this will develop. But I wanted to ask in your guidance for slightly higher sales and EBITDA, what kind of realized pricing are you assuming in Europe? Would that be sort of low, mid, high single digit? Some color there would be interesting.

The second question, just on the U.S. You talked about price absorbing the impact of cost inflation. Could you please elaborate a bit? Should we expect positive price cost in the U.S.? And can you differentiate between the Southeast and the West Coast?

And then the last one, just on CapEx. So you guide for EUR 290 million, even though we have Senegal rolling off, which I think was about EUR 50 million of CapEx. Can you just give some color on the projects that you're now investing in that means the CapEx is fairly stable? Is that mostly growth CapEx, climate CapEx, maintenance catch-up?

I will leave you Chomel.

Tom, thank you for your questions. Indeed, we -- as you know, the French market has some specific cost drivers, the evolution of electricity cost and the start of the implementation of CBAM that push us to announce high single-digit to low double-digit price increases in the market.

As you mentioned in your question, it is early in the year to tell where we stand. I would say, to mid- high single digit would be a good realization probably, and that would translate in a positive price cost differential. Regarding U.S., it is even earlier in the year to give you a solid answer. We did announce price increases in both regions, substantial. But as usual, they do apply on April 1.

And our ability to get them through and to have them stick will heavily depend on market context when they roll out. And that's a little bit early for me to give you a projection on that. We assumed in our guidance, I would say, a neutral price cost differential. If they would fully materialize, that would be an upside.

Regarding CapEx, indeed, we did guide to EUR 290 million, a new reduction compared to last year. This has always is including about half of maintenance CapEx, still last amount regarding Senegal with the last milestones of the contract and first acceleration in decarbonization spend to secure our 2030 objectives.

That's clear. Sorry, could I just follow-up just on the European pricing. So you very hopefully said for the U.S., you're assuming in the guidance a neutral price cost differential. And then you said mid or high.

You talk about France, Tom, not Europe.

That was for France. Okay. So a neutral price cost differential is in your guidance for France?

Slightly positive. And I didn't mention the Europe, which has a slightly different cost base, specifically on electricity, where we do expect a positive price environment.

The next question comes from Ebrahim Homani from CIC.

I have 3, if I may. The first one is on France. In France, the operating leverage is huge. In case of a 1% increase in volume, what could be the impact on the EBITDA?

My second question is on Senegal. Do you confirm that the EBITDA contribution will be higher in 2026 than it was in 2025?

And my last question is on CapEx. Could you give us the part of maintenance CapEx? And what's your level of flexibility to reach your 2027 leverage targets, please.

Yes. You are right in France, we do have a high leverage -- operational leverage in cement. We as well have a large share of our activities. You will understand that this is quite sensible information. We do not disclose as is, but you can observe from the volume impact from the past years, the tremendous impact of volume fluctuation. In Senegal, indeed, as mentioned by Mr. Sidos earlier, the initial startup of the kiln was in June. It did ramp up very gradually and start to regularize a little bit in Q4. So the initial contribution comes out of Q4 only. So we do expect it to contribute more heavily and to have gradually improve both energy efficiency and alternative fuel increase.

I remind you that as mentioned by Mr. Sidos during the presentation, the midterm saving objective is EUR 20 per tonne of cement sold by the facility. On CapEx, I believe I just gave the information to Tom, but indeed, we do expect about half of our CapEx to be maintenance. So roughly EUR 140 million to EUR 150 million.

[Operator Instructions]

We have 2 written questions from Investment Research. So first question on the guidance. With price increase in France, savings from the new king in Senegal, strong Egyptian exports and improving condition in Turkey, it seems organic EBITDA growth in those regions will be more than slides. [indiscernible] guidance suggest a sharp EBITDA drop in the U.S. and India? Or is it simply [indiscernible] earlier in the year with room to upgrade. I will hand it over to management for the answer.

Yes. The answer is in the question. Everything you said there is a momentum where you said, but we are very cautious at this time of year. And guidance could be disappointed, but I would like to share a few comments guidance growth of sales and EBITDA on a like-for-like basis which is expression for cautious optimism of a positive orientation of our main markets with an acceleration in H2.

In France, you see after stabilizing in H2 '25, residential market is expected to continue with soft landing with a gradual recovery from '26 onward. We'll have unforgettable base of [indiscernible] each one and municipal elections for the [indiscernible] for construction. Material or quicker recovery will constitute an upside, and we expect a positive price environment. You were talking about markets believe that [indiscernible] industry market should remain well oriented [indiscernible] Senegal will benefit from the ramp-up of 6 kiln for year and India is [indiscernible] to remain volatile in a growing market so at this time of the year, we [indiscernible] opportunities this year to be more precise [indiscernible] upend actually.

Second question, how do you interpret the recent political comments in France and Germany around potentially lower CO2 prices and the ETS adjustment? What will lower CO2 price mean for your carbon capture strategy and long-term cash generation in France and Switzerland.

Well, there was remorse in fact, the [ nothing ] is changing on a short-term basis and [ nothing ] is changing on a long-term basis. Things could change on a midterm basis changed in the past. And basically it could be positive for industry to decrease the rate of -- to lower the rate of free quotas decrease. It will mean we've little bit more [ means ] to fine tune of strategy as you know this we've some of this [indiscernible] to reduce it's carbon footprint [indiscernible] of equipments [indiscernible] we place [ coal ] by [ waste ]. And then [indiscernible] and these 3 levers brings money. It's a [indiscernible] then it's last deliver is CCS or CCU [indiscernible] main project as a [indiscernible] decision will be taken at the end of '27. So we have time to fine tune [indiscernible] what's happening now about [indiscernible] this I would say, a regular adjustment of the European policy. And I feel it's positive for industry if it's like [indiscernible].

The next question comes from Tom Zhang from Barclays.

The first one was just a follow-up actually to that point on EU ETS. I hear what you're saying that perhaps not much is changing and this is, as you say, a regular adjustment of policy, but ultimately, the CO2 price has declined by 25% in the last month.

How has not change in EUA prices affected your via CCS decision-making? And then the second question was just, could you speak a little bit about what you've seen in January and February so far, the run rate that we've had in Q1, how does that match against your pricing and volume assumptions, especially in France?

Yes, thank you for your question. For the VAIA project, first of all, it's probably first reminder, our CO2 reduction objective for 2030 are based only on the 3 first layers that Mr. Sidos, presented, the traditional levels that have their own paybacks.

We have said for a long time that CCS will contribute in a second step in a longer run, notably because of weaker economic model. Indeed, if carbon price comes down, that will probably lead to review the space of those projects, but we still are fully committed that both technology will be needed to reach the 2050 ambition. It's not just a matter of time, which may create opportunities in terms of technologies as well.

So that's the first point. Second point regarding current trends that's very early in the year to give you comments on where we stand on pricing. I mean, we have announced them. We are, of course, getting them through, but January is never a month you can extrapolate to the full year. So I will stay away from any comment.

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

Hello ladies and gentlemen, thank you for joining us today. We look forward to seeing you at our Annual General Meeting on the 10th of April in [indiscernible], the beautiful department of [indiscernible]. Thank you very much. Thank you. Have a nice day. Bye-bye.

Welcome to the Vicat Q3 2025 Trading Update Conference Call. [Operator Instructions]

Now I will hand the conference over to Hugues Chomel, Deputy CEO and Group CFO; and Pierre Pedrosa, Head of Investor Relations. Please go ahead.

Good afternoon, ladies and gentlemen. I am Hugues Chomel, Deputy CEO and Chief Financial Officer of the Vicat Group. With me today is Pierre Pedrosa, Head of Investor Relations.

I will now be presenting to you third quarter 2025 sales figures. Please have a look at Slide 2, where you can read our disclaimer regarding the forward-looking statements that this presentation may contain.

Let's begin with the key takeaway of the third quarter of 2025 on Slide 3. First, organic sales growth reached plus 4.9%, reflecting solid momentum across most of our regions, particularly in Europe, where recovery continues in Switzerland and in the Mediterranean driven by Egypt and Turkey. This performance brings the 9-month organic sales growth to plus 1.8% despite the slowdown in the U.S.A., India and Africa. Based on this performance, we are confirming our full year 2025 guidance an organic growth in sales and EBITDA growth of plus 2% to 5% like-for-like. We also adjusted our 2025 leverage objective to above 1.3x versus the previous 1.3x, reflecting a stronger-than-expected FX impact and certain one-off items in the second half. This does not change our 2027 leverage objective of below 1x.

Finally, our VAIA CCS project has been selected by the European Innovation Fund. This decision is an important first step in the financing of this major decarbonization project for our Montalieu plant in France. Overall, the group continues to deliver solid organic growth, confirms its profitability outlook and maintains strict discipline despite a less favorable currency environment.

Turning now to a geographical breakdown for the third quarter on Slide 4. Group sales reached EUR 992 million, up 4.9% organic, confirming an acceleration versus the first half. France, which accounts for 29% of group sales, is showing clear signs of volume stabilization. Cement volumes have leveled off at a low point, which is in line with our early year expectations. In Europe, growth accelerated to 7.9% like-for-like driven by Switzerland, where the market is clearly recovering. Demand for more low-carbon Progresso range remains strong with notable project wins in the industrial space. Infrastructure is also supporting demand.

In the Americas, activity was softer, particularly in the United States, where both the residential and nonresidential markets remain affected by high mortgage rates and limited visibility. Having said that, there are some reasons to be optimistic for the next year. As the U.S. economy remains robust, the lower interest rate environment could trigger a residential recovery and the base effect will be positive in California. Brazil delivers -- delivered solid growth in both prices and volumes, supported by the integration of Realmix, which strengthened our vertical integration model. In Asia, the trend turned positive with India posting plus 6.5% organic growth, thanks to improving volumes in Maharashtra, where our expanded capacity -- rail capacity to Mumbai is fully operational.

Volumes remain subdued in the Southern states. The GST cut in September is expected to support demand going forward by reducing prices. In the Mediterranean region, once again stood out. It now represents 16% of group sales in the third quarter, an increase of 3 points year-on-year. Organic growth reached 43%, driven by a strong recovery in Turkey, where the government is pushing public works and reconstruction following the 2023 earthquake. Export momentum continues in Egypt, now coupled with a rebound in domestic demand. It should be a very strong year for our Egyptian operations.

Finally, in Africa, the new Kiln 6 in Senegal is ramping up as planned, already generating its first cost efficiencies. Aggregate activity has also accelerated sharply with the restart of major public works. Overall, this quarter once again confirms the strength of our balanced geographical model. Robust growth in Europe and or emerging markets more than offset the temporary softness in the U.S. This enables Vicat to sustain positive momentum despite a challenging foreign exchange environment.

If we look at the 9-month bridge on Slide 5, year-to-date organic growth stands at plus 1.8%, confirming the positive price momentum across all main markets. Price contributed plus EUR 80 million with resilient prices in developed markets and firm pricing in emerging ones, notably in Egypt, U.K. and Brazil. The volume effect at minus EUR 28 million mainly reflect a softer start of the year in France and India, both of which have now stabilized or recovered. The volume effect was positive in Q3 at plus EUR 13 million. Foreign exchange impact was again the main drag at minus EUR 147 million, driven by the depreciation of several emerging market currencies, particularly Egyptian pound and the Indian rupee against the euro, and since Q3, the weakness of the U.S. dollar against euro.

Scope effect at plus EUR 57 million reflects the integration of Cermix since the beginning of the year and to a lower extent, Realmix in Brazil that has been consolidated as of September 1. Overall, 9-month sales came in at EUR 2.88 billion, slightly down on a reported basis, but showing clear underlying business resilience and continued pricing discipline across the group.

Let's now deep dive into our foreign exchange exposure on Slide 6. The currency exposure of the group is well diversified. But as you can see, around 70% of our EBITDA and close to 70% of our revenues are generated in hard currencies, mainly euro, dollar and Swiss francs. However, a large part comes from the market where currencies have experienced higher volatility, particularly the Turkish lira with a country in hyperinflation and the Egyptian pound. Since Q3, the U.S. dollar also weakened significantly against the euro. It is important to note that our operations are conducted locally. We produce and sell in the same currency. So our main exposure is not transactional, but rather linked to the conversion effect when consolidating results.

Only monetary flows, both operational and financial, are hedged, and these are primarily related to fuel purchases that are made in U.S. dollars. While our hedging strategy helps move short-term volatility, it does not eliminate currency exposure entirely as we remain exposed to conversion risk. On pricing, our approach remain consistent. We aim to pass through inflation, including imported inflation in all of our markets. This disciplined strategy allows us to preserve margin and maintain [ weakness ] even in the context of significant FX headwinds.

Let's now turn to France on Slide 7, where we are seeing clear signs of stabilization. As expected, cement volumes in France reached their low point in Q3 after continued deceleration in the rate of volume decrease over the last 7 quarters. Looking ahead, we expect a slight sequential recovery in cement volumes throughout '26, supported by lower interest rate environment and underlying residential needs in France. The TELT Lyon-Turin will be with the first boring machine now operational and the growing demand for low-carbon cement solutions should also support the volume recovery next year. Overall, France is gradually bottoming out, setting the stage for a more positive trend from 2026 onwards.

On Slide 8, on the energy front, we've also taken an important step forward. Vicat has signed a long-term low-carbon electricity supply contract with EDF, known as the Nuclear Production Allocation Contract, CAPN, which will replace the ARENH framework in 2026. This 15 years agreement provide us with enhanced price visibility with around 70% of our projected electricity consumption already secured under this new mechanism. The resulting cost increase will be reflected in our price hikes. There will be an upfront down payment in the second half of 2025 and in 2026, which will temporarily weigh on free cash flow, but it will secure our energy costs and contribute to carbon reduction objective in the long term.

Turning now to Slide 9 to Senegal, where we started our new plant early June. Since then, I'm pleased to report that the industrial ramp-up is progressing as planned. As shown at the bottom of the slide, the output is progressing and the kiln is expected to reach nominal capacity in the coming months. Kiln 6 is replacing both clinker imports, which previously averaged 300,000 to 400,000 tonnes per year and production from the older Kiln 3 and 4, which have now been shut down. This modernization allows us to significantly improve our cost base with targeted savings of around EUR 20 per tonne in the medium term. New production line is already EBITDA accretive. In short, it is a major step forward for Vicat Senegal and a clear example of how our investments are driving both performance and sustainability.

Let me now move to our balance sheet and leverage trajectory on Slide 10. As you can see, deleveraging remains a core priority for the group. Over the past 3 years, we have reduced our leverage ratio significantly from 2.75x in 2022 to 1.58x at the year-end '24, thanks to strong cash generation and disciplined capital allocation.

For '25, with a controlled working capital requirement and CapEx spending in line with our targets, we are now expecting our leverage ratio to end the year above 1.3x compared to our previous target of 1.3x. This adjustment reflects the impact of adverse currency movements on both EBITDA and free cash flow as well as a few nonrecurring items in the second half of the year. It is important to note that these effects remain limited and do not alter our long-term trajectory. Our commitment towards a leverage of below 1x by 2027 is fully maintained.

To conclude on Slide 11, let me summarize our guidance for 2025. Our full year P&L objective remain unchanged. We continue to expect like-for-like sales growth. For EBITDA, we confirm our target of plus 2% to 5% growth at constant scope and exchange rates. Net capital expenditure should remain at around EUR 280 million, consistent with our investment plan and our selective approach to growth projects. In short, the fundamentals of our outlooks are intact, continued profitable growth, strict capital discipline and a clear deleveraging trajectory.

Here on Slide 12, we've highlighted the 3 strategic priorities that are guiding Vicat's actions over the next few years. First, we are committed to maintaining EBITDA margin of at least 20% over the '25, '27 period. Second, we are focused on continuing our deleveraging trajectory. This will provide us with greater flexibility to navigate economic cycles and pursue opportunities. Third, we are accelerating our climate road map, investing in decarbonization, developing low-carbon products and embedding sustainability across all geographies and business lines. These 3 pillars, profitability, financial discipline and sustainability define our road map for profitable and responsible growth.

Concluding on Slide 13, catalyst of the coming years will be supporting Vicat's growth with existing industrial assets. First, in Senegal, the new Kiln 6 is a major cost efficiency driver as it replaces clinker imports and allows us to retire older higher cost capacity. Its contribution has started in 2025 and will ramp up in '26 and '27. Second, in France and the United States, we anticipate a recovery in residential construction volumes starting from historically low levels.

Third, the TELT is Europe's largest civil engineering project. It is a multiyear driver for cement and aggregate businesses with volume visibility extending well beyond 2030. It should represent between 5% to 10% of Vicat cement volumes in France over the coming years. Finally, the Mediterranean region, particularly Egypt and Turkey, continues to offer medium-term compelling opportunities. Together, these catalysts position Vicat for resilient and balanced growth aligned with long-term industrial and environmental strategy.

This concludes my presentation. Maria, can we move to question, please?

[Operator Instructions] The next question comes from Ebrahim Homani from CIC.

I have 3, if I may. First is on your [ leverage ] guidance. It has been modified. In my understanding, it is more an EBITDA effect than a net debt effect. So my question is on net debt. Do you expect a decrease in the net debt in 2025 compared to 2024? My second question is on the French market. Could you give us please more details on price and volume effects and which level of price hike do you expect in 2026? And my last question is on Europe and Switzerland specifically. In Q4 2024, sales were stabilizing. Should we consider a slowdown in organic growth in Q4 compared to Q3, which is very dynamic?

Yes. On the -- we have adjusted our guidance on deleveraging. So far, our debt reduction trajectory has been continued to September '25. We are maintaining a controlled working capital requirement. CapEx are in line. So nevertheless, as you mentioned, the FX fluctuation is negatively impacting EBITDA and cash flow generation and therefore, the denominator. So that's the sense of this revision.

On pricing and volumes for '26, obviously, it's still early to give precise guidance. As mentioned, on some of our markets, namely France and U.S., we are starting from low level of the residential market. So we do believe that at some point, it will recover probably very gradually. For France, we -- as we mentioned, the cost environment includes 2 specific elements, which is the implementation of CBAM and the end of the ARENH mechanism, both of them will imply cost increase and therefore, will push us to push price hikes to the market. It is too early to quantify them. And on emerging markets, again, those markets are well oriented. Each of the countries is a different dynamic. It is usually inflationary, except a temporary period.

Okay. So on Switzerland, please?

Well, we -- I usually don't comment by market, by quarter, Ebrahim. So of course, the higher the base, the more difficult the hill to climb.

Now move on to the written question. So first question from Auguste Deryckx from Kepler Cheuvreux. Cement volume are virtually stable in France, but turnover is down by nearly 5% in organic terms. Is it entirely due to the performance of Concrete & Aggregates business? Can you recall the difference -- the difference typical end market for cement, Concrete & Aggregates?

Yes. As we mentioned, we have reached limited level of decrease of cement volumes in the last quarter in cement. Nevertheless, as mentioned in the press release, Ready-Mixed Concrete & Aggregates did -- nevertheless continue to decrease. And so as you mentioned, the global sales evolution reflects the mix of all the activity. On your background question on the end markets, as you well know, cement volume typically in a developed market go roughly 50% in residential market, 25% in nonresidential and 25% in infrastructure.

At the moment in France, obviously, we are facing a very low residential market and a somewhat more resilient infrastructure market, which may be changing slightly this performance. Typically, aggregates has a larger part on infrastructure since it has as well road application. And typically, Ready-Mixed is more serving the residential market and more rarely the infrastructure market. So I hope this helps.

Next question is coming from Isaac Ocio from On Field Investment Research. First, in the U.S., do you expect tariff and consolidation of Ready-Mixed Concrete market in California to better support price in 2026? Second question, what is the outlook for prices in Egypt given the government effort to redirect export to serve the domestic market? And last question, what level of cost benefit do you expect from the Kiln 6 in Senegal in 2026 and 2027?

Yes. As you may have observed, the prices have been holding up fairly well in California. So I believe this already reflects some of the movements that you have mentioned. California is exposed to cement imports that are themselves exposed to tariffs. We have not yet seen price increases from importers. I think the margin hit is nevertheless significant for them, and that should be a positive element for pricing.

Prices in Egypt, there has been the movement that we have been witnessing historically was a low noneconomical price in the market that has gradually recovered as capacities were able to serve more profitable export market. Since then, in the last 12 to 18 months, we have seen the domestic market coming to next [ ForEx ] price comparable to the export prices, which is just an economic movement. There has been some temporary spikes, especially at the end of H1. Ever since indeed, the authorities have expressed their willingness to see the price increase come down. There has been discussions on trying to bring back capacity, but we are not aware of restrictions. And plus, I think that not all regions will probably be in the same situation. So we do expect now prices to be reflective of cost inflation mostly.

Kiln 6, we have, of course, expressed our medium-term cost reduction target. Next year, we will have a full year effect of the run rate of the kiln, but probably not yet the full ramp-up of fuel substitution. So I would typically expect a very gradual unfold of the cost reduction. Sorry, not to be more precise than that.

Next question from the audience. So on the VAIA CCS project, you obtained the subsidies from the EU Innovation Fund for the VAIA CCS project of Montalieu in France. Can you give more color on this subsidy? What is the level obtained? And is it in line with your expectation?

Thank you. The -- indeed the VAIA, it has been announced yesterday morning, the VAIA project has been selected among others by the Innovation Fund to sign an agreement at the end of March of next year, the grant agreement. So this is a very good news. We have applied for a grant of [ EUR 150 million ], but the award -- the amount awarded to each project have not been publicly disclosed by the Innovation Fund, and we are not in a position to disclose them.

We do consider this -- the investment fund (sic) [ Innovation Fund ] award as a very important first step for the financing of our project. And to complement it, we are still expecting an answer of a grant from the French administration as part of the GPID framework that should come early 2026.

Next question on Egypt. Could you give us an update on the buyout of the minorities of Sinai Cement?

So as mentioned before, we have introduced an offer to buy the outstanding shares, the floating shares of Sinai Cement in Egypt in July. We are expecting the approval of the local market authority since then. Once this decision is issued, there is a legal procedure that implies that the company ask a third party to issue a valuation. And once this is done, we will be in a position to appreciate our view going forward.

Next question on the U.S. recovery. Can you elaborate on your optimism for the return of residential construction in the U.S.? How much of your U.S. business is exposed to residential versus nonresi?

Yes. Just as a reminder, 2025 compares with a very strong 2024 performance that was almost a record high. Our views are U.S. economy remains very robust. The Fed rate decrease has begun and is expected to continue with still some question mark on the pace of reduction. But once this reduction is well underway, this will support residential demand. I believe that a large part of '25 has been -- the visibility has been deteriorated by various moves of the administration in terms of fiscal and tariff policies. This is likely to settle down and clarify, and this will surely support the nonresidential demand.

So all that combined, we do believe the market will recover. As I come back to my previous comment, we are usually in mid-cycle exposed to roughly 50% residential in developed markets, probably slightly less at the current part of the cycle where we have still a resilient infrastructure spending and somewhat more resilient nonresidential than residential.

And last question on the dividend. Please give us some color on the possible dividend for 2025 full year?

It's obviously in the hands of the shareholders rather than in my own hands. We -- as a reminder, we increased the dividend in '24, thanks to improved results last year. The current level is sustainable and is implying a quite reasonable payout, typically 45%.

If I may look back, dividend never came down in the last 2 decades at least through various economic cycles. So I do not expect it to come down again. I do believe that further increase should be linked to a further progress of net results.

No more questions.

And this…

Thank you, Hugues and Pierre. There are no more questions at this time. So I hand the conference back to the speakers for the closing comments.

Thank you. This concludes our call for today. Thank you for your interest in Vicat. Our 2025 results will be published on February 17 after market close. Until then, both Pierre and myself remain at your disposal. [Foreign Language]