Welcome to the Iliad 2026 First Q uarter Results Presentation. Today's conference will be hosted by Thomas Reynaud, Chief Executive Officer, and Thomas Kienzi, Chief Financial Officer. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing hashtag five on their telephone keypad. I will hand the conference over to the speakers. Please go ahead. Good afternoon, everyone. Thank you for joining us today. I'm Thomas Reynaud, and I'm here in Paris with Thomas Kienzi, our Group CFO, but also with Nicolas Thomas, CEO of Free in France. We have the chance also to have in Milan, Benedetto Levi, the CEO of Iliad Italia, and in Warsaw, Ken Campbell, the CEO of Play. Thank you for being here with us. It's a nice way to take a step back and to look at the beginning of the year for Q1. I'd like to start with a very simple message. Q1 was a good quarter for Iliad in the same vein of the last few quarters. First, we remain the number one telecom operator in Europe in terms of growth with a 3.1% growth rate. To be the leader among the large European telecom operator is quite an achievement when you look at the level of competition and also the level of maturity. The second reason why it's been a good quarter for us is that we have added subscribers in each country and in each segment, and this is clearly the result of a long-term strategy in terms of innovation and in terms of investment. We had also good momentum in terms of convergence, in terms of churn rate, and in terms of ARPU growth in all our geographies. I think that the reason why we can say that Q1 was a very positive quarter for Iliad is the fact that we took many initiatives. Let me start with France. In France, we launched Free Max, which is a new mobile offer, a very generous one, fully in line with the DNA of Free of Iliad. We made the demonstration that even 14 years after the launch of Free Mobile, we can move the needle. We can keep on revolutionizing the French telecom market with this unlimited data usage, not only in France but in 35 countries for EUR 29.99. Let me turn to Poland. Poland is our second market, and our operations continue to deliver a strong operating performance. Usage revenue grew by 6.3% in Q1. This is clearly a re-acceleration of the business compared to the last two quarters. We had also very positive evolution in terms of increase of our fiber footprint, thanks to some organic rollout. On top of that, thanks to the closing of the Vectra transaction, we bought some fiber and cable asset from Vectra, which enable us to expand our footprint by 700,000 homes passed, and that's super important. The economic performance was also strong in the Polish market. In Italy, for the 32nd consecutive quarters, Iliad Italia was number one during Q1. This is an amazing performance which demonstrate the consistency of our team. We are also multiplying the commercial initiatives, and we managed to post a growth of 11% for Q1. We're also accelerating on our new business, cloud data center and computing power. That's important. We won some very important contract with the EU Commission, also with the ECB, where we will be the cloud service provider for the project of digital data, and also in France for the Health Data Hub that manage the health data of French citizens. It's moving in the right direction. At the same time, we announced yesterday a coalition of 28 players around our project, IOWN. It's a common project in order to bid for public procurement from the EU Commission for the implementation of a huge gigafactory located in France. It makes a lot of sense in light of our data center business with OpCore, that is also moving in the right direction, and also in light of our cloud business, Scaleway. To conclude, we had a good start of the year. Of course, we must remain cautious because the geopolitical and the international environment is complex. Like any player, we will see some concrete impact in terms of energy prices, even if we are really well hedged at 100% almost for 2026. And at 50% for 2027. We also see the tensions in terms of procurement on some memory RAM item. We have to manage the situation. The cost of the memory is starting to increase a lot. All in all, a very good Q1. For 2026, we have three priorities. We need to keep that growth profile. We need to keep on taking plenty of initiatives. Yes, we want to play a central role in the European consolidation. Thank you, Thomas. Good afternoon, everyone. This is Thomas Kienzi. As Thomas said, after a great 2025 year, we delivered another strong set of results during this quarter, driven by sustained revenue growth and a strong cash flow generation. Starting with revenue. Q1 revenue reached EUR 2.61 billion, which represent a 2.9% on a reported basis and a 3.3% growth on an organic basis. Once again, the group is the number one in terms of growth in Europe within the major European telecom operators. These growths were driven by service revenue, which increased by 2.7% over the quarter. In line with the previous quarter, the group was focused during the beginning of the year on maintaining a good balance between volume and value on all our markets. Breaking down the performance by country. France grew at 1.2% with service revenues up 0.4%. Service revenues were impacted by one-off asset disposal, impacting our wholesale revenues from the month of February and by decreasing interconnection revenues. Revenues billed to subscribers, which is a metric we track and which matters, grew by 1.6%, which is a good performance. Once again, we are the only operator in France with an organic growth in terms of service revenue over the quarter. Performance in Italy continued to be strong with an 11.2% revenue growth, driven by continued market net add leadership. Poland continued also to a very strong performance, with revenue up by 3.1% in euro and up by 3.9% in local currency. When it comes to EBITDA, Q1 EBITDA grew by 1.2% and reached EUR 942 million over the quarter. This modest growth reflects a strong growth in Italy and Poland, offsetting a 6% decline of our EBITDA in France. The 6% decline in EBITDA in France is linked to a phasing effect and the consequence of some technical factors for the most part. First of all, we had an unfavorable basis of comparison for two reasons. We still had a contribution at EBITDA level from OpCore last year in Q1. As you know, we sold OpCore in Q1 2025. Secondly, we had an accounting cut-off effect on handset costs in Q1 last year that we didn't have this year. These two factors combined explain two-thirds of the EBITDA decline in France. The rest of the decline is coming mostly from a seasonality effect, such as the IFER tax in France, as that is 100% booked in Q1. If we look forward, the EBITDA in France will be flat on a full year basis. Looking at other geography, Italy performed well with an EBITDA which increased by 25%, mostly driven by scale benefits and lower MoCom cost. Poland also had a very significant improvement of its EBITDA, which rose 8.9%, reflecting mainly cost efficiency and a good volume and value growth. Moving on to CapEx. Our capital discipline was a key driver of the economic performance last year, and it remains the case in Q1. Our total CapEx, excluding spectrum, reached EUR 351 million in Q1, down 80% year-on-year. This decline reflects the advanced stage of our investment cycle in fiber and 5G, particularly in France and Poland, but also some timing effect. To be fully transparent, we don't expect to have CapEx down by that order of magnitude on a full year basis. The decrease in Q1 was mostly explained by seasonality effect. In terms of operating free cash flow generation, the Q1 posted a very strong performance with an operating free cash flow, which almost reached EUR 600 million, up 18% compared to last year, with all the three countries contributing to the EBITDA growth. France OCF was up 11.5%. Italy OCF more than doubled, with mobile operation growing at 53% and fiber OCF being break-even for the first time. Poland grew at 10.4%. This strong operating cash flow generation reflects the mix of our sustained profitable growth momentum and a good discipline on our investment. Now let's look at the equity free cash flows, the cash available for shareholders and strategic investments. In Q1, the group generated EUR 416 million of equity free cash flow, up on a net recurring basis by EUR 200 million. Almost two times more than last year on a recurring basis. This EUR 200 million increase in equity free cash flow was driven, first of all, by the strong growth of our operating free cash flow, but it was also driven by a lower spectrum payment in Q1 compared to last year, because last year we had a spectrum payment related to 2% and we didn't have these expenses, this investment this year. Thanks to this strong level of cash flow generation, we are unable to confirm our annual guidance, which is a growing recurring equity free cash flow for the full year. Looking now at our balance sheet, our financial position continued to strengthen. Thanks to our strong equity free cash flow generation, our net debt decreased from EUR 9.4 billion at the end of 2025 to EUR 8.96 billion at the end of Q1. Our net debt leverage ratio improved from 2.3x EBITDA to 2x EBITDA, which is the lowest level in terms of leverage for the group since 2019. Our liquidity position remains very solid, with EUR 1.8 billion in cash at the end of Q1 and EUR 2.5 billion in undrawn credit lines, which basically give us a liquidity profile that enable us to cover all our debt maturities until 2028. At Iliad Holding level, we follow the same trend with a leverage ratio that was reduced by 0.1x EBITDA to 3.1x, the lowest since the company was taken private, and a very good liquidity position with no significant maturities until 2028. This concludes my presentation, and we can now open the floor for questions. Ladies and gentleman if you wish to ask a question, please dial hashtag five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial hashtag six on your telephone keypad. The next question comes from Mollie Witcombe from Goldman Sachs. Please go ahead. Hi. Good afternoon. Thank you for taking my questions. I have a couple, please. Firstly, would you be able to give us some color in terms of what you're seeing in the competitive environment in France and the impact that you've seen from the launch of the new offer with unlimited roaming, I think, this quarter? Same question for Italy in terms of incremental competitive environment. My second question, is this on your Tele2 investment? The stock's obviously done really well, but we've seen an announced management change. Do you anticipate a change in strategy or your relationship with them as a result? How are you thinking about the investment case value creation for Iliad within that context? Thank you. Sorry, your last question was? My last question was on Tele2, just about the stock's done well, but we've seen an announced management change. I'm wondering how you're thinking about your strategy, if there's going to be a change in relationship as a result, and how you're thinking about the investment case and value creation within this context. Okay. I will answer on Tele2. A really short answer because this is an Iliad conference call. There has been a smooth transition. It was on the succession plan, and I have no more comment to say on Tele2, but I'm pretty sure that you can ask all the question you want to the current CEO, Jean-Marc Harion, or to the coming CEO, Nicolas Jaeger. Thanks. On French market. Yes. Hello, Nicolas Thomas, I'm the CEO of Free. On France, the market remains competitive, but not deteriorating. There is a key focus for each player, which is convergence. As a matter of fact, our convergence rate is still growing. Our financial performance improved in Q1 when compared to last year. The volumes in absolute are not that significant. We launched, in fact, as you say, end of March, our new mobile offer, Free Max. We had a very strong start, a start which is better than expected. The trend is not abating, so it's clearly positive, this launch. This new offer will also, in fact, enable existing subscribers to upgrade, and we will keep growing, keep gaining market shares in the quarters and years to come. It's very encouraging. This was for B2C. If I answer on B2B is growing very nicely. The pipeline is pretty active for Free Pro. In fact, with Free Pro, we launched a new mobile offers for large companies. Also for Scaleway, which is gaining, as Thomas said previously, new important contracts. Benedetto, on the state of the Italian market? Yes. On Italy, it's very simple. Each of our three main competitors have today 5G offers priced at EUR 4.99 per month. As a reminder, our cheapest 5G offer is at EUR 9.99, so basically twice the price. The market remains very competitive and actually irrational. Thank you, Benedetto. Can I just follow up on that last bit there? Obviously, some of your competitors have been saying that there's been signs of rationalization within Italy. Are you saying that's not at all what you're seeing? Not at all. Not at all. If you look at the level of the win-back activity. Sorry, please, go ahead, Benedetto. No. EUR 4.99 doesn't look rationalization to me. No. Okay. Thank you very much. The next question comes from Laura Homsy from MFS. Please go ahead. Hi there. Thanks for taking my question. Just a couple. Just on EBITDA in France, you mentioned that for the full year you expect this to be flat year-on-year. Should we expect some margin weakness, given I'm assuming top line should still grow? If you could provide a little bit more color around sort of the margin evolution you expect there. Yeah. We said flat. I think if you look at the growth in France, currently France is growing at 1.2%. Basically we expect more or less a stable margin in France on a full year basis. We expect a good level of growth in terms of operating free cash flow in France, which is ultimately the metric we track and which matters the most. Understood. Secondly, just with regards to the process, I don't know whether you can comment much on SFR. There were some headlines around sort of tower usage, ownership, et cetera, or contracts that could potentially cause some issues with regards to the negotiations. Can you provide any thoughts around that? Listen, what we can say on the consolidation right now, is that discussions are still going on. They are being conducted in a very constructive mindset. Let me be clear, the outcome remains really uncertain about the potential closing of the consolidation. Why that? Because this transaction is more complex than the most complex transaction imaginable, due to the fact that you have to do a breakup of the SFR in three pieces. When it comes to tower costs, it's part of the equation, and we will not make any comments on that specific topic as long as we have not closed the transaction. Understood. Very clear. Sorry if I can squeeze in one more just on CapEx. You mentioned the trend with regards to 18% decline in Q1 should not really be extrapolated. Can you maybe give some idea of what kind of decline versus 2025 we should expect for the full year? We have not given any guidance. We expect our CapEx to be down. You can say probably mid-single digit. Mid-single. Okay, understood. Thank you so much. As a reminder, if you wish to ask a question please dial pound key five on your telephone keypad. The next question comes from Emmet Kelly from MIZ. Please go ahead. Yes. Good afternoon, everybody. Thanks for taking my questions. The first question is similar to my question last quarter. It's on the AI gigafactory for Europe and the press release that you just put out. I'm just wondering, could you give us a little bit more detail on potential capital commitments that you might make into that vehicle? Maybe there's a lot of partners in there as well, so could you say a few words on potential, what the equity ownership of that vehicle might look like? Secondly, on the consolidation process, there's been a lot of commentary in the French press about the employee base of Altice France. You've obviously given us a breakdown of what the assets might look like in the event of consolidation being approved. Can you maybe just say a few words, I realize it's very sensitive, on the potential carve-up of the employee base at Altice France as well? Thank you. Thank you, Emmet, for your question. Yes, we will give you all the details in due time if that transaction close, which is still uncertain. As long as we have not signed the transaction with the three other parties, we will not make any comment. On the social aspect of the transaction, we are a very responsible player. We are the number two employer of the country in the telecom sector. We will act accordingly. Regarding IOWN. IOWN is an answer to the invitation from the EU Commission to a bid in order to locate between three and five gigafactories in the 27 countries. It was super important to have a consortium with the maximum number of players and only one consortium for France in order to make sure that there will be a gigafactory in France. Keep in mind that today you have less than 5% of computing power dedicated to AI located in Europe. This is a huge opportunity, and it was the vision of Xavier Niel 5 years ago, and this is the reason why we launch Scaleway and OpCore with the view that our economy and with the rise of AI, computing power will be more and more important. Our investment is the same that we announced last year. It could be an envelope of around EUR 4 billion over the next seven, eight years between what we're going to invest through OpCore, our 50/50% JV with InfraVia, and what we're going to invest in Scaleway. No change for Iliad in terms of the CapEx envelope with the announcement of this consortium that was already integrated in our numbers. Keep in mind that this consortium was created during the summer of 2025. As a reminder, if you wish to ask a question please dial hashtag five on your telephone keypad. There are no more questions on the call. Thank you for your participation. I hand the conference back to the speakers for any closing remarks. Thank you for your attention. Q1 was a good quarter. We hope that Q2 will have the same kind of momentum. We give you rendezvous at the end of August in order to review the first half of 2026. Thank you so much.