Welcome to the Elior Group Half Year 2025-2026 financial results presentation. Please note this call is being recorded. The management discussion and slide presentation, plus the analyst questions and answer session is broadcasted live over the internet. Today's call will be managed by Didier Grandpré, Group CFO. He will carry on with the usual presentation before opening the Q&A session. Mr. Grandpré, please go ahead. Thank you very much, and good morning, everyone, and thank you for joining Elior Group for our 2026 half year financial presentation. The first half shows the resilience of the group. We delivered positive organic growth, resilient underlying profitability, and a positive net result. The semester was affected by delayed ramp-up of newly signed large contracts and by one exceptional item related to a tariff dispute in Italy. We are adjusting our full-year guidance to reflect this updated visibility while remaining confident in the group's medium-term perspective as Elior benefits already from solid financial foundations following the turnaround since 2023. Before starting, please take a moment to review the disclaimer shown on this slide. This presentation contains summary information and includes forward-looking statements based on current assumptions. Actual results may differ from this statement because of risks and uncertainties described in our 2024-2025 universal registration document. I will begin with a brief introduction to Elior and to our strategic positioning. We'll review the financial results for the first half of 2025-2026. After that, I will cover the main highlights of the period, including financing, business development, and strategic initiative. I will close with the updated outlook before opening the floor to questions. Elior is one of the global leaders in contract catering and multi-services, with a strong local presence across our markets. In fiscal year 2024-2025, the group generated EUR 6.15 billion in revenue. We employ around 133,000 people. Our footprint covers 11 main countries across three continents, combining local execution with global governance. Contract catering and the group's core activity with EUR 4,455,000,000 of revenue in 2024-2025, representing around 73% of total group revenue. We operate across four main markets: business and industry, event catering, education, and health and welfare. The scale of the activity is significant, with around 19,600 restaurants and point of sale, approximately 3.3 million guests served per day, and more than 80,000 employees worldwide. Our objective is to provide healthy, tasty, and more sustainable food offerings adapted to local needs and client expectations. Multi-services is a complementary and increasingly important pillar of Elior Group. In fiscal year 2024-2025, the segment generated EUR 1,683,000,000 in revenue, around 27% of total group revenue. The division brings together high value-added solution across tertiary and industry, aeronautics, energy and urban services, and HR recruitment and temporary staffing. With more than 52,000 employees and around 26,000 client sites, multi-services provides recurring demand, cross-selling opportunities, and a broader relationship with clients. Our ambition is clear: to be a leader in contract catering and multi-services with a strong local presence. Our mission is to meet essential needs, feeding guests with healthy, tasty, and more environmentally friendly offerings, and taking care of buildings and their occupants while preserving the environment. We rely on distinctive assets, 150 central production kitchen, EUR 1.7 billion in food purchases, a local operating model supported by global management, and stable family-based governance. Our CSR strategy, Aimer sa Terre Horizon 2030 is built around four pillars and 10 commitments, preserving resources, providing sustainable food and services, cultivating talents and differences, and supporting a responsible economy. Profitable growth and operational responsibility are inseparable in our model. Let's now turn to the first half financial performance. The semester combines positive organic growth and resilient underlying profitability. Two factors weighted on the reported performance. The delayed ramp-up of new contracts and an exceptional tariff dispute on a significant Italian contract with a railway operator. Our message is balance. We are adjusting the near-term outlook while the medium-term direction remains intact. Regarding the highlights. The first key figure is organic growth, which reached +1.3% in the first half. Adjusted EBITDA margin reached 3% on a reported basis and 3.9%, excluding the exceptional item in Italy, only 20 basis points below last year. Net results remain positive despite the exceptional item at EUR 21 million and reached EUR 46 million, excluding the exceptional item in Italy, meaning a net margin of 1.4%, slightly better than the 1.3% last year. I guess that you all understood that this is a critical KPI for Daniel Derichebourg as a tangible evidence of the robustness of Elior's foundation and operating model deployed over the last three years. Free cash flow was positive at EUR 9 million, despite higher CapEx and a less favorable working capital phasing. To be noted that it's not fully comparable to the EUR 205 million from last year that benefited from the ramp-up of a new securitization program that contributed EUR 172 million in the first half of 2025. Leverage ratios stood at 3.6 x at the end of March 2026, still comfortably below our covenant level. Fitch upgraded Elior to BB- with a stable outlook, recognizing the improvement in our financial profile. Focusing on more details and starting with revenue. Reported revenue was EUR 3,179,000,000, down 1.1% year-on-year, mainly because of a negative foreign exchange effect of -2.6%. Underlying organic growth was positive at 1.3%. Multi-services grew by +2.6% organically, driven notably by aeronautics and energy activities, while contract catering grew by +0.9%. Contract catering was affected by delays in the start-up of new contracts, especially as recent wins include larger contracts with longer mobilization periods. This is a timing issue, not a sign of a weaker commercial momentum, as we will see later in this presentation with a net commercial balance higher than last year. The recent win should flow through revenue growth progressively with a stronger effect expected from the next fiscal year. Comparable growth was supported by both volume and price. Volume contributed +0.6%, notably from Spain and the U.K., and price increases contributed + 1.4% from all divisions. Pricing remains disciplined and continues to support margin protection in an inflationary environment, even though inflation was less intense than in prior period. Net development was -0.7%, with strong openings close to 8%, but lower than expected due to a longer ramp-up of new contracts. Closing reflected the full year effect of our portfolio rationalization, while the retention improved to 91.4% at March end 2026, compared with 91% one year earlier and 90.6% at the end of September 2025. This positive retention trend shows that the portfolio is stabilizing after the rationalization phase. Regarding margin, reported adjusted EBITDA reached EUR 95 million in the first half, with an adjusted EBITDA margin of 3%. Excluding the Italian exceptional item, adjusted EBITDA reached EUR 120 million, corresponding to a margin of 3.9%, 20 basis points lower than last year. The Italian item relates to a significant contract affected by unilateral changes in economic terms that triggered unexpected operating losses, which are currently subject to a tariff dispute. It should not be viewed as representative of the underlying group trend. Contract Catering margin was 3.8%, or 5% excluding the Italian exceptional item, down 20 basis points year on year. Multi-services improved to 2.5%, up 50 basis points year-on-year, driven by the revenue increase in aeronautics and energy, as well as the start of a profitability recovery in temporary staffing. On a year-on-year basis, price revision and renegotiation showed a EUR - 5 million net inflation impact, which mostly comes from one- shot price renegotiation a year ago, while the net inflation balance is almost neutral in this first semester. The net inflation balance was nevertheless more than offset by operational efficiencies that further contributed to close to EUR 9 million in the first semester. The delayed contribution from newly signed large contract mechanically weighed on EBITDA in the short term with EUR - 9 million impact from net development in the first half. Forex exchange impact was more significant this semester than in previous period, although still neutral in terms of margin. The first semester recorded continued investment in SG&A and IT to support further commercial development and productivity gains. Excluding the Italian exceptional item, the group delivered a 3.9% margin despite the timing effect on the net development. At income statement level, EBITDA was EUR 83 million, including share-based compensation and a slightly lower PPA amortization. Non-recurring charges fell sharply to EUR 2 million. Financial charges improved slightly to EUR 50 million, and the tax charge decreased to EUR 10 million. Net result group share was EUR 21 million or EUR 46 million, compared with EUR 43 million last year, excluding the Italian exceptional item. Elior remains profitable at net income level with fundamentals which are much healthier following the turnaround phase. Moving to cash flow. Free cash flow remained positive at EUR 9 million compared with EUR 205 million last year. The year-on-year decrease is mainly driven by working capital. Last year benefited from a non-normative positive effect linked to the implementation of a securitization program that contributed to EUR 172 million. This semester, working capital was negative by EUR 52 million, mainly due to catering seasonality and a temporary billing delay following the merger of the two biggest legal entities in cleaning activities. CapEx increased by EUR 22 million to EUR 83 million, or 2.6% of revenue, in line with the investment policy we announced. We are actually maintaining investment in central kitchen and IT transformation to support further revenue growth, productivity improvement, and cash flow generation. This translated in a slight increase in the net debt that moved from EUR 1,125,000,000 in September 2025 to EUR 1,182,000,000 in March 2026. Free cash flow was positive, but it was more than offset by interest and financial fees. IFRS 16 debt movement triggered by capital leases on the car fleet, a small acquisition in Hong Kong, and dividend payment. Consequently, leverage increased to 3.6 x EBITDA at March 2026 compared with 3.3 x at September 2025. The ratio remains comfortably below the 4.5 covenant threshold. This temporary increase does not call into action the debt reduction trajectory, but has been in place since April 2023 when the leverage ratio stood at 7.1 x EBITDA. The covenant headroom, the rating upgrade, and the refinancing action all strengthen the group's financial flexibility. Let's move to the highlight of the period that show that we continue to strengthen the group beyond the first half financial performance. Our focus remain on strengthening the balance sheet, maturities, and liquidity, as well as supporting the growth pathway. This initiative support medium-term profitable growth despite the short-term adjustment to guidance. First, Fitch upgraded Elior's issuer default rating by 1 notch from B+ to BB-, with a stable outlook. The upgrade reflects an improved standalone credit profile of Elior and the quality of our reference shareholder, Derichebourg SA. This is an external validation of a tangible improvement in Elior's financial profile and our debt reduction discipline. As a complement, during the period, Elior early redeemed the remaining EUR 159 million of July 2026 senior note. We also successfully placed EUR 115 million of additional 5.625% senior notes due in 2030. Available liquidity increased to more than EUR 500 million at EUR 512 million precisely from EUR 385 million at the end of September 2025 after the repayment of the state guarantee loan in the first semester, the dividend payment, and the refinancing effects on the revolving credit facility and the bond. This action extend and consolidate our maturities and reinforce visibility for the next phase of the group's development. Elior Sport Event on the business side is a new strategic growth driver combining our catering and multi-services expertise. The offer includes tailored catering and nutrition for elite athletes, multi-services for stadium, arenas, and training center, and event solution for major sports and cultural events. This initiative is led by Sébastien Rouault, that you can see on the picture, who joined as a new Elior employee. He's a two-time European swimming champion and former head of the main operation center for the Paris 2024 Olympic Games. This launch supports higher value cross-business development in resilient and attractive end markets. Next, we have as well strengthened the premium catering that is complementary to our existing activities and aligned with growing demand for high-quality ingredients, culinary creativity, and exceptional service. Stéphane Duval, Meilleur Ouvrier de France, brings a strong culinary reference to this initiative. The roadmap is to develop buffets, cocktail reception, cold dishes, and gourmet creations while structuring the business for large-scale event catering. This is both a business opportunity and a way to strengthen Elior's culinary differentiation. We made as well a new acquisition to enhance France culinary heritage with the acquisition of a natural mineral water, 808, in the southeast of France, which fits our strategy of promoting French culinary heritage and high-quality assets. 808 is a natural mineral water drawn at the depth of 808 m, nitrate-free, with a distinctive mineral profile and a delicate taste. The investment program will modernize the bottling plant in the southeast of France and double the local workforce. The target channels include prestigious establishment and selected distribution channels, including event caterers. This is a targeted financing initiative, not a shift away from our core contract catering and multi-services model. Regarding artificial intelligence, we are providing here an example of Briefly by Derichebourg Intérim, which is an in-house artificial intelligence assistant for recruiters. Simply said, after an interview, the tool generates a structure summary that the recruiter adds to the candidate profile and can send to the client. AI is here to support employee and free up time. It does not replace human judgment. The rollout is connected to our broader AI strategy, including the partnership with IBM that we already mentioned in the past, to create an agentic AI and data factory. For us, AI is a practical productivity lever to improve our operational processes at Elior and create new customer solutions. To conclude this section on the business development, as you can see, the net development remained positive in the first semester with close to EUR 300 million of gains, exceeding losses by EUR 122 million of net development on a 12-month run-rate basis, mostly in France. Importantly, commercial synergies and cross-selling opportunities contributed to around 25% of total new gains, validating the strategic fit between contract catering and multi-services and leveraging the regional approach closer to customer. Our commercial momentum is stronger than what is visible in first half revenue because of higher share of recent wins that are large contracts with longer implementation phases, supporting our medium-term confidence in further revenue growth. This is illustrated in particular by contracts such as the catering and cleaning of 113 middle schools in the Yvelines, a French district, or the headquarters of a major bank in the Paris area. This explains the lag in the impact on revenue growth and their contribution. Moving to the next section on the updated outlook for the fiscal year 2025-2026. This update is a reset of near-term expectations based on the visibility we have today. It does not change our strategic priorities, which remain profitable growth, disciplined investment, cash generation and de-leveraging. In the second half, organic revenue growth should remain broadly stable and lower than initially expected with the new large contract wins to start generating revenue after the summer break. We expect the group-adjusted EBITDA margin to remain stable compared to the second half of last year while reflecting ongoing inflationary pressures. We also expect a temporary lower cash contribution from working capital driven by revenue trends and potential delays in receivable collections, particularly in the context of e-invoicing reform in France to start in September. Consequently, for fiscal year 2025-2026, we now expect organic revenue growth between 1%-2%. Adjusted EBITDA margin, excluding the exceptional item in Italy, to be around 3% for the fiscal year. Leverage ratio to be around 3.5 x at September 2026, still comfortably below the 4.5 covenant. Overall, the guidance adjustment reflects a reset of near-term expectation while maintaining investments for further growth and profitability focused trajectory. The group remains confident in medium-term profitable growth and de-leveraging considering the order backlog, the quality of the pipeline, and the investment policy to support further growth and efficiency. As a complement, the supporting cash flow assumptions are as follows: CapEx around 3% of revenue and non-recurring cash below EUR 10 million, both unchanged. A more cautious change in operating working capital assumption, as just mentioned, revised down to between neutra l to a contribution of EUR 20 million, considering the impact of a new revenue outlook on securitization, as well as some risk on the timely collection of receivable with a new French invoicing reform to come into force in September. CapEx remains temporarily elevated as we are investing in central kitchen, IT transformation, and growth infrastructure. We'll maintain our investment policy, including opportunistic tactical acquisition when relevant to support future growth. To conclude, the investment case rests on sound financial foundation, a diversified activity portfolio, a streamlined contract base, positive business momentum, and resilient end markets. Elior benefits as well from a stable family-based governance with a long-term approach, as well as from a strong operational execution driven by stable management teams. The turnaround achieved since 2023 has created a much stronger foundation for the next phase. The fiscal year 2025-2026 adjustment is a near-term phasing issue, not a reversal of a strategy. We'll continue to execute with discipline, invest selectively, and build profitable growth over the medium term. Thank you for your attention, and I'm now ready to answer your questions. The next question comes from Leo Carrington from Citi. Please go ahead. Good morning. Thank you for taking my question, Didier. Good morning, Leo. Could I ask first for more details on Italy and the Italy rail contract. Can you just provide a few more details to the extent that you can on this? Why this pricing dispute has arisen now rather than earlier on, since the contract was won in 2022? How has this provision been calculated, and what is the risk that there is additional impact in H2, maybe further disputes or further provisioning needed? Separately, on the timing effect of the delayed contracts in France, with organic growth guidance for the year down 2 percentage points, is this decrease in guidance effectively all relating to these delayed contracts in France, or is there some other factor that we should be aware of as well? Thank you. Thanks, Leo. Regarding the Italian contract, as a matter of fact, we were close to neutral profitability around last summer, when there was a significant increase in some costs that were driven in particular by a salary increase on our customer side, that have been extended to our contract. This is quite recent. We have started some negotiation but understood at some point that we would have to go through more dispute process, so which is now on the way. Regarding the provision that we took, considering that we don't have the full visibility on the timing of the resolution of this dispute, we took a prudent approach to provision the total amount of expected losses under the current economic condition till the end of the contract in April 2027. This item is exceptional in nature and does not reflect the underlying trend of contract catering portfolio. I would say, including in Italy, with a recent rationalization of a contract portfolio there and a positive commercial momentum, especially in the private sector. With this provision, which again covers the period till the end of a contract at the end of April 2027, we are not expecting any additional impact at EBITDA level in H2. We are, let's say, looking at the profitability of a group excluding this item, considering the expected delay to get the resolution of a dispute. Regarding your second question about the organic growth. Compared to H1, we are actually expecting a lower contribution from volumes as clients are becoming more cautious considering the overall inflationary context, limiting the demand for additional or exceptional services in contract catering and facility services. Price revision should continue to contribute to a similar level as in the first semester, considering that most price revisions have already taken place at the beginning of a fiscal year for the education market in particular, or at the beginning of a calendar year for other markets and multi-services activity. Net development should progressively converge towards a more balanced contribution to revenue growth, with new openings to start ramping up in H2. The improvement in the contract retention that we saw already at the end of March 2026, I would say as expected. Okay. Thank you. May I just ask a follow-up on the Italy contract? I don't think I've quite understood the implications for H2. In the guidance statement, there's a comment that you estimate a profitability figure similar to last year, excluding the impact of the pricing disputes. To me, this reads as if there is still some risk in H2 associated with this contract. Am I reading that the right way? No. The objective with the EUR 25 million provision that was recorded in H1 is definitively to cover the expected loss regarding the execution of this contract till the end of the contract, which is end of April 2027. What we wanted to indicate by mentioning excluding exceptional item regarding the revised guidance at around 3% in terms of EBITDA margin is to exclude the amount of a provision that was already recorded in H1. Okay. Understood. Thank you very much, Didier. You're welcome. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. We will wait a few seconds to give you time to participate. There are no more questions at this time, so I hand the conference back to the speakers for any closing remarks. Thank you, everyone, for your attention and for your continued interest in Elior Group. I also want to thank our clients, partners, and shareholders for their trust. Most importantly, I want to thank our teams whose dedication and service mindsets are the foundation of Elior's resilience. We remain confident in the group's solid foundations and our ability to build profitable growth over the midterm. Thank you. Goodbye.