Ladies and gentlemen, thank you for standing by. I'm Natalie, your current call operator. Welcome, and thank you for joining the Altice France Holding Restricted Group Q3 2021 results presentation. Throughout today's recorded presentation, all participants will be in a listen-only mode. Throughout, press star key followed by zero for operator assistance. I would now like to turn the conference over to Sam Wood, Head of Investor Relations. Please go ahead. Thank you, operator. Good afternoon, and good morning, everyone. This is Sam. Welcome to the Altice France Holding Restricted Group Q3 2021 earnings call for debt investors and analysts. On the line to take you through the presentation, we have Dennis Okhuijsen, Mathieu Robilliard, and Gerrit Jan Bakker. As the presentation may contain forward-looking statements, please read the legal disclaimer on slide 2. With that, I'll hand over to Mathieu Robilliard. Thank you, Sam. Good morning, good afternoon, everyone. Starting on slide three, Altice France grew residential service revenue, the largest portion of the group revenue, by 4.4% year-over-year. Total EBITDA grew by 0.5%, and operating free cash flow by 8.4%. I'll come back later on this performance in more detail. In September, Altice France issued $3 billion equivalent of euro and dollar 8-year senior secured notes, for which the proceeds were used for the redemption of the remaining amount of the Altice France 2026 notes, as well as transaction fees, but also to finance the acquisition of Coriolis, Afone and FreeTel. With this transaction, we have improved the weighted average maturity of Altice France while realizing additional interest savings. The Altice France Holding Restricted Group had a solid financial position at the end of the quarter, with EUR 1.2 billion of liquidity pro forma for the recent debt issuance and the Coriolis acquisition. We announced the acquisition of Coriolis in September. Coriolis is a French independent telecom group that runs two activities. The first one, a traditional telecom business which accounts for around two-thirds of its revenues, with a historical focus on small and medium businesses, which has now moved to a full B2C and B2B telecom provider, serving more than 5,000 customers in small and medium French cities and over 30,000 companies. The second activity of Coriolis is a customer relationship management division called Coriolis Service, which serves both internal and third-party customers, relying on four contact centers in France and abroad. This growing company is highly complementary with SFR and Intelcia being our existing in-house call center business. Synergies are material and will predominantly come from saving MNO air time as well as data links procurement and SG&A rationalization. The total cash consideration would consist of an upfront payment of EUR 298 million and a deferred consideration of EUR 117 million. We expect to close this acquisition in the first half of 2022. The deferred consideration of EUR 117 million is expected to be paid in several installments up to 2024. Last, we reiterate today our guidance as it is, written on the page. Moving to slide 4, you can see the revenue trends by segment for Altice France. Total revenue declined by 1.2% year-over-year in the Q3, mainly driven by lower construction revenue and lower equipment revenue year-over-year, which was partially offset by a strong performance from the core residential segment. Year to date, Altice France total revenue grew by 2.2% year-over-year. First, residential service revenue grew by 4.4%, as I mentioned before. This performance was supported by subs-based growth year-over-year for both the residential fixed and residential mobile post-paid base. Our fixed performance continues to benefit from the ongoing expansion of our addressable fiber footprint in France, now at 24.3 million homes. In addition, roaming revenue grew materially year-over-year, but remains significantly below the levels we saw in the Q3 2019. Moving to business services, where revenue declined as a consequence of lower construction revenues in the quarter. As we have previously flagged, Altice France will build fewer homes in the second half of 2021. You can see this in the Q3 as we built 159,000 fiber homes for XpFibre, which compare to 270,000 homes built in the same period of last year. On a year-to-date basis, we have built approximately 560,000 homes, compared to approximately 730,000 homes built in the first nine months of 2020, sorry. You will see the same impact on the revenues in the Q1. It's important to remember that a greater proportion of the homes built in 2021 continue to be in more rural areas compared to 2020, and as a result, the average revenue per home is higher in 2021 compared to 2020, offsetting on the revenue side a bit, the fewer number of homes built this year. Last, remember that the construction revenues are realized upon percentage of completion, and as a result, the exact revenue in any given quarter does not necessarily tie out precisely with a simple calculation by number of homes built in a given quarter. Finally, remember that it's important to keep in mind that we continue to have a well-defined amount of construction to be done. All these delays are simply a matter of timing and deferred revenues. We'll comment later on, as part of our 2021 full year results on 2022 expectation. In addition, within the business services segment, we faced a year-over-year headwind from the loss of the EIT MVNO wholesale contract and the associated very high- margin EBITDA. As of today, there is minimal wholesale revenues and EBITDA from EIT in the Q3 number, so we'll face the same impact in the Q1. Finally, total media revenue declined by 8% in the Q3. Advertising revenue, the largest piece of media revenue, grew year- over- year, but offset by a reduction in production services charged by Altice France Media to Altice. Turning to page 5, you can see the Altice France summary financials for the Q3. As we have shown for recent quarters, these summary financials are presented pro forma for the Evo transaction, which we have closed a few weeks ago. Subsequent to the closing of the Evo transaction, we confirm that the debt put in place for the Altice Europe Tech private transaction has been fully repaid. Total revenue for Altice France declined by 1.2% in Q3, and total EBITDA grew by 0.5%. On a year-to-date basis, total revenue grew by 2.2%, and total EBITDA grew by 2.3%. Note that the business services revenue, and consequently total EBITDA, is impacted by the loss of EIT as I just mentioned, and the lower construction revenue. Otherwise, telecom EBITDA would have grown at a higher clip than telecom revenues, and we continue to see the benefit of operating leverage within the residential segment. Accrued CapEx in the Q3 totaled EUR 564 million. On slide 13 of this presentation, we show you the bridge between this figure and the accrued CapEx as shown in the financial statement. With that, I will hand over to Gerrit Jan Bakker, who will take you through the remaining slides. Thanks, Mathieu Robilliard. Moving to slide number 6, where we show the free cash flow waterfall for the Altice France restricted group for the Q3. Altice France generated operating free cash flow of EUR 486 million, which is pro forma for Hivory. Interest costs amounted to EUR 250 million, which consists of both Altice France and Altice France holding interest. Run rate annual interest costs following the recent refinancing, the financing back in October, are approximately EUR 1 billion per year now. Previously, our interest was very much Q1 and Q3 weighted, and after the refinancings this year, it'll be about EUR 250 million every quarter. Cash taxes amounted to EUR 38 million, and change in working capital and other was EUR 69 million. As a result, free cash flow totaled EUR 173 million in the Q3. Moving to slide 7. Here we show the capital structure and debt maturity profile for the group. We show net debt pro forma for the recent financing and also pro forma for the acquisition of Coriolis, meaning we're showing here the cash that will still be going out for Coriolis in our net debt. Total net debt of Altice France Holding Restricted Group amounted to EUR 23 billion, and the blended average life of the debt is 5.7 years, and the weighted average cost of debt is 4.3%, with the first maturity being in 2025. At the end of the Q3, Altice France Holding Restricted Group had a pro forma net leverage of 5.3x on an L2QA basis. We maintain strong liquidity position, which is in excess of EUR 1.2 billion. That EUR 1.2 billion consists of EUR 800 million of undrawn revolvers and more or less EUR 400 million of cash. Finally, on slide eight, just to remind you of our guidance as we outlined during the Q4 results, and we reiterate today. For the full- year 2021, we expect to grow revenue, EBITDA and operating free cash flow. In the midterm, we expect to generate organic free cash flow in excess of EUR 750 million. This free cash flow generation is underpinned by EBITDA and operating free cash flow growth, as well as further reduction in cash interest costs, which we think, you know, as of today, we can at least save another EUR 150 million annually or so. Finally, we retain our target leverage of four and a half times net debt to EBITDA. I guess that's all. With that, Dennis Okhuijsen, Mathieu Robilliard, and myself are happy to welcome any questions. Hello? Operator, I think we have the first question that's come in. If we could take that, please. Yes. Ladies and gentlemen, if you'd like to ask a question, please press star followed by one on your touchtone telephone. We will take the first question, and the first question is from the line of Mary Pollock from CreditSights. Please go ahead. Hi, thanks for taking the questions. My first is a big picture. Obviously, Altice International disclosed earlier this week it had made a loan to Altice UK, which prompted a lot of questions from our clients about if this is a potential avenue we could see also pursued via Altice France. If you could provide any color on that, how France and International are different or aren't different in the eyes of the controlling shareholder, and how they could contribute to financing Altice UK. Second question is on the slower FTTH rollout that's slower than I expected in the quarter. Could you just provide a little more insight into why exactly the slowdown has been so considerable? I thought there would be more of a actually a ramp from those Covage homes. When is that gonna come through in the numbers? Thanks. Maybe on the Altice UK, I think, you know, we are indeed from our Altice International pool are reinvesting some of the excess liquidity that we have to give a good return via Altice UK. I think for Altice France, though, you know, we are well above our guided leverage, which is four and a half times. So the first focus remains, you know, for that leverage to go to the four and a half times. So do not expect to to... for Altice France to make investments into Altice UK because they don't have excess liquidity, and the excess liquidity and the deleveraging that we have, we will utilize to for the 5.2 leverage, 5.3 times leverage that we are today to go down to 4.5 in first instance. On the construction question. Indeed, we have built less second part of 2021 compared to 2020. Several reasons for that. One, the takeover of Covage took a bit longer than anticipated as we had to sell a part of the company to Altitude, a transaction which we only closed a couple of weeks ago. It's taking more time to integrate Covage within XpFibre and to add Covage construction activity or Covage construction program to the existing XpFibre program. That's one. Second reason, as I mentioned, you know, more and more we are building in rural areas, while, you know, in 2019 and 2020 focus was more on the medium dense areas. As we are in more rural areas, it takes more time because you need to dig more and you need to deploy more fiber in terms just of kilometers, so it takes more time. The third element is that, you know, we need to get for all these homes many administrative authorizations which sometimes take time to get. You know, sometimes, you know, we have built 90% of the home. We still have to finish, you know, within the building and the landlord or the association of the building takes time, you know, to sign all the papers. But again, the way we look at it is that we have a defined number of homes to be built because XpFibre and Covage have been awarded certain number of franchise. We will deploy this home up to the last one. It may take a bit more time than anticipated, but at the end of the day, the revenues and the margin associated to it will come to Altice France in the coming quarters and years. Thanks. That's helpful. One more, if I may. Your results in broadband are pretty weak relative to your peers. Is there any driver there why your broadband net adds are lackluster? No, I think, you know, the competition in France in the Q3, you know, we see it as pretty similar to Q1 and Q2 of this year. Of course, you know, in September, you have a bit more of promotion activity with the back to school. I think on our end, we try to find the right balance between, you know, volume in a given quarter and the growth at ARPU, which is the price at which, you know, the new customers, they enter your base. That's one. We're also managing the migration from the DSL to the fiber, which can also explain why, you know, we have less fiber net adds compared to some of our competitors. At the end of the day, you know, what we want to have is a service base which keeps growing and at the same time to have ARPU growing over time. The multiplication of the two will add a better revenue growth, and thanks to the operating leverage, growth margin and EBITDA and cash flow growth. Thanks. Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star followed by one on your telephone. The next question is from the line of Jason Kalamboussis from UniCredit. Please go ahead. Yes. Hi. First I wanted to ask about what kind of demand you're already seeing for 5G products. As I understand, most of the French providers were charging basically a surcharge on top of other plans. Kind of uptake have you seen so far, and do you anticipate any changes in your 5G strategy as we go into 2022 to accelerate revenue growth there? I was also interested in whether you think there have been ongoing impacts from the pandemic in terms of demand trends that you've seen, especially for fixed products, if there's been a slowdown from previous levels or to what extent the pandemic is a factor and looking forward into the coming quarters, if that's expected to impact demand very much. Thanks. On the 5G, I think it's still early days. As you may know, you know, SFR has been one of the leaders in terms of 5G rollout in France. I think we were the first to launch 1 year ago, I guess, exactly, following the spectrum auction. You know, we see some take up in the growth areas, so people taking the 5G product. But you know, compared to 12 million mobile subs, you know, you know, this remains not that material as of today. As you remember, you know, we try to promote the 5G at a premium compared to the 4G product, meaning that, you know, for our consumers to get access to the 5G, they have to pay a couple of euros more compared to 4G mobile subscription. Also the 5G uptake is also dependent on the handset. You know, all the handsets are not 5G ready right now in the market, and it's on the very high- end where you can see this kind of handset. It will take more time to see material impact of the 5G in the numbers of Altice France. When it comes to the pandemic, as we explained a few quarters ago, I think our business was impacted by the COVID-19 in three areas. One, on the roaming side. So it's both the residential roaming where the SFR consumers are abroad or the visitor roaming when you have tourists coming to France. I think that activity in 2020 at the peak of the pandemic was around a third of a normal year. I think earlier this year, we are still at around two-thirds of 2019, and as of today, I would think we are around 70%-75% of 2019. Still at a discount compared to what should be a normal year. The second area where, you know, our telecom activities were impacted was on the sale of equipment. You know, as most of the shops were closed at the peak of the pandemic and during the lockdown, so meaning no revenues coming from sale of equipment. But this had no impact on the EBITDA or the cash flow of the company as we do no margin or very little margin on the pure buy and sell of handsets. For Altice France, the last areas where we had a material impact from the pandemic was on the advertising revenues, because as you know, Altice France Media is effectively a TV, it is an activity which relies on TV advertising. Effectively during the pandemic, you know, all the advertisers, they cut their budget and they cut their expenses, and the entire advertising market globally, went down, significantly. I think this year, it's of course much better compared to last year, even though some of the sector of activity remain depressed. For example, you know, the automotive sector is not at all where it was two years ago. I think that's you know the main three areas of impact you can see for Altice France. Okay, thanks. Just to follow- up quickly on the 5G question, in terms of how you are developing your product strategy, what do you think is different about your position as being more of a challenger relative to the incumbent and what we might think of some more natural industrial applications that the incumbent would have? Yeah, I'm not sure there is a big difference in the positioning of each other. I think, you know, the merit of the 5G are clear in terms of bandwidth, in terms of quality of the connectivity speed, et cetera. I think when you look at the four players in France, we all have different strategy in terms of pricing of the product, but the product, especially for the mass market B2C segment, is the same, for all of us effectively. At least, you know, in a given band of frequency, quality of the product is the same. I don't think there is differentiator factor beyond the pricing. Okay. Just when do you think we'll finally see real revenue growth from that product? I guess, you know, if you want to see something materially, it will take, not only a couple of quarters, it may be a couple of years. Okay, thanks very much. The next question is from the line of Andrew Lee from Goldman Sachs. Please go ahead. Hi. Thanks for taking my question. Your earlier comments on restricted payments vis-à-vis leverage targets is appreciated, so thanks for that. I was hoping maybe you could add a comment on how you're looking at leverage when you consider investments in IRUs and M&A going forward. Secondly, I was hoping to clarify the tower sale in French overseas territories, whether that EUR 75 million will be coming into the Altice France restricted group. Then finally, maybe you could add some color on what's happening with margins in the media business. I was expecting things to continue to be sort of on an upward trajectory in Q3 and Q4 this year. Thanks. Maybe on the first question, with respect to leverage, I think, you know, we feel still very good about our leverage target of 4.5x. I think that is underpinned, I think, with continued revenue growth, continued operating leverage, as we are already having today significantly in the residential segment, as well as growing our free cash flow. If that continues, we continue to be very happy with the 4.5x leverage target. I think, you know, the M&A that we have been doing is reinforcing, I think, the core business because the M&A is predominantly circled around buying in MVNO operators or buying more fiber footprint, which we think is reinforcing the core business, especially if you look at the price points that we have been able to agree. They are more or less leverage neutral for us. If you look at the last Coriolis acquisition, you know, I think that is these are good to do. I think with respect to the IRUs, you know, we are reviewing this on a case-by-case basis, whether or not we continue to do the IRUs. We think, yeah, the IRUs are very credit supportive because they are long-dated assets which we are buying so that would reinforce the credit position of the group if we do so. We'll have to fine-tune those also in the light of our free cash flow target that we have. I think overall very happy with the 4.5 times and very happy to do these acquisitions that are not endangering us to get to 4.5 times and are really reinforcing the core business. On your question on the French West Indies tower transaction, so EUR 75 million of proceeds, we expect to close that deal in the Q1 2022, and the proceeds will come to Altice France restricted group. You know, contrary to Hivory, which at the time of the announcement of transaction was declared unrestricted subsidiary, that's not the case for the French West Indies towers. Mr. Lee, are you finished with your questions? Thanks. Yeah. Maybe just on the media margins. I think on the media margin, Andrew, I think looking back to, you know, the last normal year, 2019, Q3 for us is typically a lower- margin quarter and Q4 higher. I think this year is, you know, you will see an improvement in the Q4. To your point, you know, we have taken measures to structurally improve the media business margin, you know, including some cost efforts that we've referenced in the past. I'd expect that the majority of benefits there are, of course, coming through next year, noting that still this year, of course, there's some funny comps and impacts as a result of COVID-19 last year. Thank you. The next question is from the line of Akhil Dattani from J.P. Morgan, London. Please go ahead. Hi. Good afternoon, everyone. Thank you very much for the presentation. Just two questions, if I may. First of all, just a follow-up on our IRUs. I mean, clearly you've benefited from the litigation settlement this year. So there's an element of sort of money in from one hand and out on the other. I'm just wondering if I look at sort of accrued CapEx and IRU purchases in combination of the together, you know, should we expect sort of a similar spend next year or not, I guess? And that clearly is dependent on whether you wanna do more IRUs or whether you wanna build more stuff yourself. Just looking at them from an envelope perspective, what's the direction, please, for next year? The second question, if I may, is if you could provide us a little bit of color on the timing of, you know, the headcount trimming reduction plan that you have, and you know, what you think from a timing perspective for the restructuring costs. Yeah. Yeah, go ahead, Dennis. Yeah, maybe on the IRU and the CapEx, I think, you know, we see them really as two different envelopes because they are different, I think, in terms of nature. The IRU is clearly a longer-term investment that we are balancing off vis-a-vis continue to rent the infrastructure. Remember, in lieu of buying the IRUs, you would pay less rental. There is certainly a trade-off, immediate trade-off, while a lot of the CapEx which you spend is more defensive in nature, you know? I think there is no one envelope, necessarily. Okay. Just to know where are you buying these IRUs or where are you looking to increase your footprint out of curiosity? Oh, yeah, we're trying to increase it where we have the most customers because you have to buy increments of IRUs, you know? It's more efficient where you have more fiber customers, you know, in order to buy them. We're also having to balance it off, you know, as we do care about free cash flow. We would not buy all the IRUs all in one year, you know? Progressively, we'll buy more IRUs. Ultimately, I think we will probably buy more IRUs than rent, you know, in the model, you know? Mm-hmm. We're making these balancing. You remember, it is from a return perspective, it's much more favorable to do the IRU because you make, you know, a better return, but you compromise your short-term cash flow if you do so. That's why you need to moderate it. Then it is more economical to do IRU. It's a simple math because it's you either rent at X EUR per month or you pay the IRU, and you have an asset for the next 20 years on your books, you know? We think, you know, we usually like that type of trade, you know? We also have to be considerate of, you know, how much cash we invest in a single year. We also have quantified, you know, as you know, the EUR 750 million free cash flow target is not including our IRU investments. Because I said, you know, they are different in terms of dynamics, you know, because they're not defensive in nature, you know, these investments. Thank you. Fair. On your Social Plan question. I think what we are trying to achieve is a negotiated plan with the union in France, you know. Because, you know, it's a random arbitrage. Either you force a decision or you negotiate the plan. You know, we believe that, you know, for the company, its day-to-day operation, it's better to have a negotiated plan. It takes more time compared to a unilateral discussion. Having said that, you know, we don't expect to see benefits in the OPEX this year of the plan. It's more for 2022. Of course, you know, when we look at the plan and the economics of the plan, we have in mind the payback, which is, you know, more or less similar to the payback you may have seen in previous SFR connection plan we did in France, I think, back in 2016, if my memory is correct. Okay, I'm sorry. Just to clarify, I mean, restructuring costs have been relatively limited this year. Do we still have a small charge in Q4, but the bulk of the restructuring costs from a cash perspective be borne in 2022, 2023? Or do you think it's... Yeah. Effectively, as you remember, because we had two plans. We did a plan at Altice Media in the summer 2020 during the pandemic. Because, you know, our, this, as I was saying before, advertising business was very strongly impacted by the crisis. You know, that plan, you know, we started to discuss it in the summer. You know, people started to leave end of 2020. Effectively all the cash outs you've seen in 2021, as we call restructuring, are related to the Social Plan for the media division. Okay. That one, you still have a couple of million EUR cash out in the Q4. Remember, I think at the time, we mentioned a total cash out for that plan around EUR 40 million-EUR 50 million. At the end of this year, most of the cash out of that plan should be behind us. Until next year kicks in, the telecom Social Plan. Okay. Which is totally different. It's two different plans. Now I totally understand. One thing within the telecom plan is that do you think evenly spread over the next three years, or is it more front-end loaded? No, you know, same as what you see in 2016. I guess you Perfect. You don't see all the cash out in the first year. It will be 2022 and 2023, mainly, and potentially maybe a bit in 2024. Thank you, Mathieu Robilliard. The next question is from a line of Nick MacDonald from Bank of America. Please go ahead. Hi. Thanks for taking the questions. A couple on my side. Just on the operating leverage in Q3, I guess the service revenue growth in residential was quite strong, and where the revenue was a little weaker was on, you know, equipment and construction, where the margin is well zero or lower. I was just surprised perhaps that the EBITDA growth wasn't a little stronger. Is there anything else that's holding back growth there that might fade away in Q4 or something we should think about for 2022? Secondly, can you just remind me on the content side, football rights for Ligue 1, Champions League, exactly what you have access to now and how that changes in 2022. Finally, your shareholder has put in a bid over the last few months for Eutelsat, which I'm sure you're not gonna comment on. I was wondering if you could comment on whether you see any synergies from a, you know, from a satellite operator being part of the Altice France group. Thank you. I'll take the first two questions. I guess Dennis will answer the last one. I think on the operating leverage in the Q3, I think there is a big item which you have missed in your list, which is the EI Telecom contract. EI Telecom is an MVNO in France, which was bought, I think end of 2020, by Bouygues Telecom. I guess they closed the acquisition end of 2020. You know, we were the largest supplier of that MVNO for airtime. When Bouygues acquired the business, of course, they have migrated from the SFR network to the Bouygues network. We are losing entirely that activity, which was on a full- year basis a contract of around EUR 100 million, EUR 25 million a quarter, and you almost do full margin on that business. Effectively in the Q3 2021, we have almost no more revenue coming from that contract because their migration is almost done today. When you compare with Q3 of 2020, where you had a EUR 25 million of revenues and EBITDA, you know, and this dilutes mechanically your EBITDA margin. On the content question. Today, you know, except for the Europa League, I don't think, you know, we own any right on an exclusive basis. The Europa League was something we almost got for zero. We are more in a strategy where we share the content with other people. Effectively, we have access to the English Premier League, in terms of football, to the English Premier League and the Champions League, which we procure from Canal+ at a big discount compared to the price we were paying a couple of years ago when we had full exclusivity on those two competitions. Yeah. Maybe the last point on your question on Eutelsat, I think, you know, the project is not very active, you know, and it's not Altice France that is the cornerstone of the transaction, and it's not gonna be, you know, considered by Altice France, you know. If it is considered, it was stand alone, and there's not too many operating links. I think the thesis was not so much the synergies that are surrounding the Altice France business. As you know, you know, Eutelsat has a lot of business outside France. I think it's not the right way to look at that this would impact Altice France in a material way. Okay, great. Thanks for your answers. Thanks. The next question is from the line of William Matthews from MUFG. Please go ahead. Hi. In terms of the 4.5x leverage target, is that to be compared to L2QA consolidated net leverage of 5.3, just to understand what the starting point is today? Yes. No, I think that is correct. You know, we are measuring it the last two quarters annualized. Okay. Versus the net. Can you give us just a bit of the big puts and takes to get us that 7.7x leverage from 5.3 to 4.5, 0.8x? What are the kind of? You know, given fiber to the home investment spectrum, the various investments that you've kind of talked about, and then maybe asset sales on the other side, how are we supposed to think about that gap closing? What would be the big buckets? Yeah. I think the big buckets would not be asset disposals, you know, for sure. You know, we think we get there on an organic basis. I think, you know, we have operating leverage in the vast majority of our business, which means that the revenue growth will lead to disproportionate EBITDA growth, which we think will continue in the quarters and years to come. I think besides that, I think, you know, Gerrit has pointed out that we have EUR 150 million of interest savings to come, you know, which and hence, you know, we feel comfortable with the EUR 750 million free cash flow target that we have set. If you take the EUR 750 million cash flow target into account, you're gonna see a debt reduction over time. That combined with the increase in EBITDA will get you to the 4.5x as we set out. Okay. Thank you. The last question is from the line of Jean-Yves Guibert from BlueBay AM. Please go ahead. Hi, good afternoon. Question on your free cash flow, if I refer to slide 6 and trying to bridge this telco free cash flow with the cash consumptions deriving from your reported net debt and the increase in RCF and other debt. The free cash flow, if I actually inflate the free cash flow, the reported telco free cash flow by EUR 50 million, given the Hivory transaction did not occur yet in Q3, so the pro forma, I mean, cash EBITDA was EUR 50 million higher. To bridge with your reduction in cash Q3 versus Q2 on a reported basis, and adjust it for the draw down on RCF and other debt, I've got EUR 300 million of cash consumption to bridge. Can you help me to reconcile this EUR 300 million cash consumptions outside the telco free cash flow? I understand there are some M&A potentially for Afone and Brixtal. There is this additional cash CapEx related to the IRU and the 2G for EUR 72 million. That will make half of the bridge. Okay. Actually let me do the bridge. Starting on page six, you have EUR 173 million of what we call free cash flow here. This is pro forma Hivory, yeah? That's one. Exactly. From that. Should be there. From that, in terms of M&A, you should take into account Afone, for which we have cashed out with EUR 50 million in Q3. We have also funded XpFibre/Covage for EUR 75 million. Covage has done some minority buyout of stakes, a minority stake which were owned by Caisse des Dépôts in some of the SPVs of Covage. That's one. 125. 125 million euro cash out for M&A. IRU cash out, EUR 70 million. 70. Yeah. TV funding was EUR 75 million in the Q3. You have other impacts, including, notably the Hivory perimeter issue of +EUR 30 million. When you put all this together, you end up with a change in net debt of -EUR 64 million, which is exactly the delta you can find in the financial statement. Okay. Thank you very much. The second question is the difference between your pro forma EBITDA for Hivory and the reported EBITDA. So the implied operating lease have increased, I mean, from EUR 40 million-EUR 54 million between Q2 and Q3. So is there any specific pattern? Or is there, I mean, just to explain the increase in this pro forma adjustments in operating lease? I think, you know, on a full year basis, the impact of deconsolidating Hivory is around EUR 176 million-EUR 180 million. You know, you can have some movement between the quarters, because I guess on one end, SFR pays to Hivory the rent, you know, for the site, et cetera. Mm-hmm. On the other end, you know, you have what we call BTS program, which you have in all the tower transaction, where effectively the operators build the sites and sell the site to the tower co. You have flows on the two sides. Of course, the BTS is very small compared to the rent, obviously. This can create some discontinuity from one quarter to the other. Okay. 180 on an annual basis. Okay. Thank you. Yeah. Again, you know, all the numbers you have seen in the investor communications at the beginning of the year are pro forma Hivory. Yeah, that's true. Thank you. There are no further questions at this time. The conference is now concluded, and you may disconnect your telephone. Thank you for joining, and have a pleasant day. Goodbye. Thank you. Thank you. you. Thank you. Bye-bye.