Good afternoon, everyone, and welcome to Verallia's Capital Markets Day. I am Alexandra Baubigeat-Boucheron, Head of Investor Relations. We would have loved to see you today in person, but due to the circumstances, we have moved into the virtual world. In today's presentation, we will share Verallia's strategic roadmap for the next three years. We remind participants that some of the comments made today include forward-looking statements which are based on our best estimates. These outcomes may change and are subject to the risks detailed in the disclaimer. Today's presenters will be Michel Giannuzzi, our Chairman and CEO, Nathalie Delbreuve, our CFO, Romain Barral, our Director of Operations, as well as our general managers for Southern and Western Europe, Northern and Eastern Europe, and Latin America. Opening our session today, Michel will present to you our key achievements since our IPO in 2019, our market dynamics, and our strategic priority over the 2022-2024 period. Right after that, Romain Barral will talk about our environmental roadmap with an ambition that has been upgraded. All our general managers will then share key achievements and initiatives through case studies from their regions. Before Michel concludes today's presentation, Nathalie will provide an overview of our financials and outline the new midterm guidance that we have defined within the framework of our strategic plan for the next three years. A Q&A session will end today's presentation. At any time during the presentation, you may send us your questions through the chat using the Ask a Question button on the right-hand lower corner of your screen. Please note that due to current constraints, not all speakers will be able to appear on stage at the same time, so your questions will be taken in the same order as the presentation. Please note that Michel and Nathalie will be on stage during the entire Q&A session. Consequently, we would be grateful if you could send us your questions by sorting them by theme or speaker to ease the Q&A session process. Many thanks for your understanding. I will now let you discover in picture how impressive and beautiful, I must say, our production process is. Take a little sand, lots of recycled glass, a pinch of limestone, and some soda ash. Mix all the ingredients together, heat the mix to 1,500 degrees Celsius. What you get is glass. Verallia produces glass to make bottles and jars in a huge variety of shapes and sizes for the food and beverage industry. We use as much recycled glass as possible, obtained through glass recovery and recycling programs. This crushed recycled glass, known as cullet, allows us to reduce the amount of raw materials we use and the energy required to melt the glass. Glass furnaces operate continuously 24 hours a day, 7 days a week. To melt the mix of raw materials, the furnace must be heated to 1,500 degrees Celsius. The molten glass is fed into narrow canals known as feeders. It falls through an opening at the bottom of the feeder, where it is sheared to form individual uniform measures of glass called gobs. Each gob is delivered to a black mold in the IS machine or forming machine. To promote the natural strength of the glass containers, they then undergo reheating and gradual cooling in an annealing lehr. The containers are given 2 surface treatments during their journey through the layer: on the hot end, which helps maintain their strength, and on the cold end, which helps prevent scratching. To ensure excellent product quality, Verallia uses various sensors and probes to inspect sealing surfaces, dimensions, and wall thickness, and to check for imperfections on each individual container. Making sure that our containers are safe to be filled by food and beverage manufacturers and safe for use by consumers is an essential part of the manufacturing process. Any rejected containers are automatically removed from the production line, recycled as cullet, and used in the manufacture of new glass. The finished jars and bottles are packed in pallets using reusable or recycled industrial materials. Each pallet is covered with plastic wrap to protect the glass containers during storage and shipping. The bottles and jars are now ready to be shipped to our end consumers or to other facilities for decoration. At the end of their useful life, Verallia jars and bottles are reintroduced as cullet. Each recycled bottle produces enough crushed glass to manufacture another new bottle and an endless recycling process in which nothing is lost in terms of quality or quantity. Glass containers are the only packaging material that is 100% infinitely recyclable. Good afternoon, everyone, and thank you very much for joining this Capital Market Day. It is a pleasure for me to be in front of you today, though still virtually, and to present to you the strategic priorities for the next 3 years. Let's start with Verallia ID card. As you can see on this part. We are number 1 in Europe, and Europe represented last year 90% of our sales. We are number 2 in Latin America, which represented last year 10% of our sales, and we are number 3 in the world. On the left-hand side, you can see that we address all end market segments, and they are very diversified and balanced in our portfolio. We operate altogether 32 glass plants with 58 furnaces. We operate also 9 cullet recycling centers and 3 decoration plants. Altogether, we employ 10,000 employees in 11 different countries. We produced last year EUR 16 billion sales. Last but not least, this year's sales will be around EUR 2.6 billion, and our adjusted EBITDA will be around EUR 675 million. Now, during the pandemic last year, we interviewed about 1,500 employees, customers, suppliers, investors, members of our communities to help us define what is our corporate purpose. We came up with this very simple sentence, but very powerful sentence, "Reimagining glass for a sustainable future." This is summarizing our ambition, what we stand for, and it tells very clearly that ESG is clearly at the heart of our purpose and our strategy, as you will see in the coming slides. Of course, this is leveraging our current four values, care for the customer, respect for people, laws, and the environment, empowerment and accountability, and teamwork. Very important is what we believe in. Our credo is the following. We strongly believe in our corporate purpose. This is driving our strategy, the way we do business, and it takes into account our social and environmental responsibility very seriously. We strongly believe in sustainable and profitable growth that benefits to all, our customers, our employees, our shareholders. We strongly believe in our business model, which is lean, agile, decentralized, close to our customers, empowering our teams to best serve our customers. We strongly believe in operational excellence, and value creation is more important and this shapes our strategy and focused strategy. We strongly believe that alignment and coherence of all stakeholders is a key success factor. As a consequence, we invest in this company as a long-term owner, and excess cash is returned to shareholders via dividend increase or share buybacks. Let's look at the key achievements of Verallia since its IPO two years ago. As someone says, "Sales is vanity. Profit is sanity. Cash is reality." Let's look at our company's performance since it has been spun off from the Saint-Gobain Group. Starting with sales, we've enjoyed a 2.6% compounded average growth rate during that period, 2016 to 2020, thanks to a growing glass market, thanks to our leading positions in high-growth segments of the market, and thanks to our value-based pricing strategy. Profitability has increased even further. It has increased 7.6% per annum during the period, thanks to the operating leverage, thanks to the positive price cost spread, and thanks to our own performance action plan. Cash has grown 16.7% per annum during the period. With a very well-invested asset base and strategic CapEx, it has been showing a strong cash growth, which is at the end of the day, a reality. To summarize, this business and this company has been growing a lot, has been generating a lot of cash, and has been very resilient during the pandemic. If you remember, exactly 2 years ago, in October 2019, we provided you with some guidance. The short-term guidance we achieved at the end of 2019 and the midterm guidance for 2022, we are going to achieve this year, 1 year earlier. This is the reason why we have this capital market day today. Except maybe the organic sales growth where the jury is still out in order to understand whether at the end of the year we will be at the objective that we set up 2 years ago. Let's look also what happened to our capital structure during the last 2 years. As you remember, this company was co-owned by Horizon Investment Holding, an affiliate of Apollo Firm, and Bpifrance. Apollo through Horizon Investment Holding has been selling down regularly shares since the IPO, and they still own today 16.3% of the shares of the company. We know that at some point in time, they will fully exit the company. On the opposite, Bpifrance has never bought or sold any shares during that time, and they today enjoy 7.5% of the capital of the company. In the meantime, you have welcomed a new investor, a Brazilian fund, BWSA, that owns 26.6% of our shares and has become as of today the first shareholder of the company. Interestingly, our employees also have become shareholders. Every year since 2016, we've proposed to our employees a share ownership program. The last one, which was launched this year, at the end of the day, enabled the employees to own 3.5% of the shares of the company. We are very proud about it. Last but not least, this year in March and May, we bought shares from the market and from Apollo at the end for EUR 109 million, which about 3% of our capital, and we canceled 1.6 million shares in June. Derived from our corporate purpose, we've announced in January our ESG roadmap, which is aligned with the COP 21 objectives, and which is focusing on three main pillars. The first one is to enhance the circularity of glass packaging. The second one is to significantly reduce our CO2 emissions across our operations. The third one is to provide a safe and inclusive place of work to all our employees. You have a very detailed presentation of this roadmap on our website, and I encourage you to have a look at it. It will provide you with a lot of information. With a special focus being put on the CO2 emissions reduction, I would like to come back to January 2021 ambition. We gave ourselves at the time, the ambition to limit the global warming well below 2 degrees Celsius, which was translated in a target validated by Science Based Targets initiative of CO2 emissions reduction of 27.5% by 2030 versus 2019. I'm talking about Scope 1 and Scope 2 emissions. This target has been clearly cascaded in action plans in 3 main areas. The first lever is to shift the raw material mix. The second lever is to reduce our energy consumption through process improvements, and the third lever is to increase the use of green energy. All three levers enabling us to reduce by about a third of the reduction that was targeted by 2030. It's not enough. The last report on the IPCC this summer shows that we need to do more and faster. I'm very proud today to tell you that we are taking another and a new ambition to limit global warming to only 1.5 degrees Celsius. This new ambition translate in new objectives. We will reduce our CO2 emissions, Scope 1 and Scope 2, by 46% in 2030 compared to 2019. We are going to reduce also our Scope 3 emissions so that they remain below 40% of total emissions of the Verallia Group. More long-term, we aim at becoming a neutral company in terms of CO2 emissions by 2050. We are very dedicated to this new ambition, and as Romain Barral will present to you in a few minutes, we have started already to work on this new target in order to identify how to achieve it, knowing that the first target of well below 2 degree is very well on track, as Romain will explain to you in a minute. Let's move to market dynamics and our strategic priorities. McKinsey & Company made a very interesting survey in many countries in December last year, asking consumers what they thought about sustainability of packaging. Very interestingly, in most of our markets, if not all of our markets in Europe, glass packaging is seen as the most sustainable packaging. This is very encouraging and more interestingly, from this report, you can read that the consumers are even prepared to pay more for a sustainable packaging. Still looking at consumers, another study made last year by the European Container Glass Federation asked the consumers, about 10,000 consumers in Europe, what was their preference in packaging. You can see that again, glass is the preferred packaging material. For 2 reasons, only 2 reasons, health and environment. Health because glass is inert, there's no chemical products leaching into the product, and therefore, there's no impact of glass on health. It's a safe packaging. On the environmental side, consumers know that glass is recyclable and forever recyclable. You can do infinitely recycling glass, and on the top of this, the littering of glass is not as damaging the environment as the packaging materials. Those two strong arguments are playing in favor of glass and are showing on the right-hand side that even though glass is well represented in spirits, in wine, in beer, there is a lot of opportunity for glass to grow the market share in non-alcoholic beverages and in food segments. When you look at the European market in the last few years, you can see that from 2015 to 2020, even though there was a pandemic impact last year reducing the market by 1.5% in volume, this glass packaging market has grown 2.1% per annum on average. This is a steady growth mark of the market, and if you just take into account that it's a 21 million tons market, 2% growth rate represents about 420,000 tons, which means about four new furnaces to be built every year to keep in line with the demand growth. In parallel, when you look at what happened in this market in Europe over the last 15-20 years, the market has been consolidated quite significantly. Where 15, 20 years ago, the top five players in the market had less than 50% of the market share, where today the top five players of the market represent about 70% of the market. This consolidation has brought some more discipline in terms of capacity expansion and, of course, pricing. When you look forward, based on the available information that we have been able to capture, you can see that this market will stay balanced in the coming years, where the growth of the market will barely be satisfied by the existing or announced capacity increases. This is the reason why I'm very pleased to announce to you today that in Europe, we will build a new furnace in Italy by 2024 in order to support our growth and the growth of the market. Let's move to our four strategic priorities. Very little change compared to what we announced two years ago during the IPO, because we don't change a winning strategy. We will keep focusing on the disciplined growth, including strategic investments and acquisitions. We will increase our operational excellence. We will keep investing wisely for a sustainable future, and we will anchor a strong and entrepreneurial culture in the company. All this in order to achieve a profitable, inclusive, and durable growth. If you look at the disciplined growth, this will be based on, first of all, customer experience that we want to keep growing. We will keep deploying our value-based pricing strategy, and we will consider acquisitions or greenfield and brownfield, like the Italian new furnace that I have just been announcing. Regarding the operational excellence, first of all, we will keep improving safety in our company, aiming at zero accidents by targeting unsafe behaviors that are the main sources of accidents. We will keep, of course, benefiting for performance action plans that is enabling us to reduce our cost by EUR 35 million per annum, and we will deploy and keep deploying our Verallia Industrial Management System, VIMS 2.0. In terms of investments, we will invest in improving the working conditions in our factories, health, safety, and ergonomics. We will invest in the CO2 emissions reductions by improving our processes, and we will invest also in the processes to improve through data analytics and artificial intelligence, our process control. Last but not least, because at the end of the day, people make a difference, we reinforce organization, and we reinforce the purpose and values and accountability in our organization, the speed and agility that we have. We will keep developing learning ability through our root cause analysis methodology, and we will reinforce our talent pool and increase our diversity. As you understood, we are enjoying very supportive market dynamics with a growing demand in the glass packaging environment, with some substitution from plastics, with some premiumization that is benefiting to our company, and with potential market consolidation. We will more importantly, play on our strengths and opportunity. Our own strengths are leadership positions in key markets and geographies, our focus on services and customer experience, our large and wide product portfolio that is enabling us to address the premium and personalized requests of the market with a very diversified customer base. We will use, of course, all the assets that we have in a very flexible way. This is very important and differentiating factor that we have in our company. Unique experience and methodology in performance action plan in order to reduce our cost every year in a significant and methodological way. We will keep investing with smart and sustainable CapEx policy to achieve our ESG roadmap and reduce our CO2 emissions. Last but not least, I will let Olivier Rousseau present to you what we are doing in France to keep improving our operations and keep benefiting for potential further improvements in our industrial performance. If we start with the first point, our leadership positions in our own market and geographies. Our biggest segment is Southern and Western Europe. In this segment, we are clearly number one with 20 plants that are addressing all segments of the market, but the biggest segments of the market in this area are still wine and sparkling wine. Why? Because we are historically present in the three largest wine-producing countries in the world, namely Italy, France, and Spain. We are also benefiting from the very premium customers that we have in these countries, and this is pushing our sales of sparkling wine and spirits to more premium offers that we can deliver to our customers. The second segment, Northern and Eastern Europe, represented last year 22% of our sales. In this segment, we have 7 factories, and we address, of course, still wine, food, beverages, non-alcoholic beverages, and beer is a big part of the segment as well. Last but not least, Latin America represented last year 9% of our sales. Here we are very strong in 2 wine-producing countries, Argentina and Chile, and focusing only on wine in those 2 countries. We are addressing all segments of the market, including the fast-growing beer segments in Brazil. Now, the second part of our strategy is really to leverage our strong initiatives around customer service and customer experience. As you can see, over time, Verallia has moved away from being a commodity supplier to providing more services and experiences to our customers. This is not only the job of our 300 local salespeople, it's the whole organization that is really customer centric. Focusing on direct sales that are representing more than 90% of our sales, we are proposing to our customers added value services and a better experience. This is, of course, measured through Net Promoter Score more and more in our company around very specific times in the customer interaction. Of course, we are also deployed inside our company value-based pricing, making sure that we price our products to the right value that are representing the services and the experience that we provide to the customers. We are also able, with our very large and diversified customer base, to capture the growth of the market and especially the premiumization of the market. As you can see, our large customer base, first of all, on the right-hand side of the chart, is coming from the fact that being historically present in the three largest wine-producing countries in the world, we have a very diversified customer base because this segment of the market, wine and sparkling wine, is barely concentrated. This is the reason why the top 10 customers of Verallia represented last year only 17% of our sales, which is probably half of what they represent for our competitors. The number one customer is only 4% of our sales. Of course, with this very large product portfolio, we are able to serve all customer needs in all the segments, including the premiumization trend that we see growing and growing. Let me explain to you with a very simple business case why our customers are moving to more and more premium products. You see on the left-hand side of this chart the example of a vodka case study. The standard vodka bottle is produced and sold at around EUR 3 per bottle. For this bottle, we sell the glass packaging around EUR 0.25. We estimate that the producer will make EUR 1.1 profit. Moving premium on the right-hand side, our customer is able to sell this bottle probably EUR 17. Even though we've increased the price of the bottle by EUR 1-EUR 1.25, at the end of the day, we estimate the profit that he will make will be EUR 7.2 more than a standard bottle. This explains why all our customers in the spirit segments, but not just spirit, since other segments as well, like wine or beer, are moving premium. Because going premium and packaging is part of the 4 Ps of marketing, enables them to achieve better profits and more higher profits. You can see on the right-hand side, this is confirmed by the growth rates expected in the super premium and premium segments that are much higher than the growth rates that we see in standard and value segments. For this objective, we have developed over time a product range called Selective Line. This is our premium range that represented last year 14% of our turnover. On average, we achieved 12 points of additional margins versus the rest of the range. This very high-end premium range Selective Line is also supported by additional services like decoration in our decoration plants. We also, every year, in many countries, have a competition and award ceremony, asking students to propose to us new designs for our bottles, and we give them awards. Some of these designs are even translated into best hits on the commercial side, and you can see some examples here. For Verallia, the focus on premium look and feel and customer experience is clearly a differentiating factor, even though we are also number 1 in Europe and therefore able to address all segments of the market, including the commodity market. It's not just enough to have the wide product range. You need to be able to serve all the customers with this very wide product range. You know this process is not very flexible. Therefore, we have developed over time some expertise in flexibility in our plants. More important, our organization, which is very local, close to our customers, enables our teams to understand better the customer needs, to understand better the trends of the market, to be able to provide a better service to them, being very close to them, and at the end of the day, to provide a better experience to them. At global level, we leverage, of course, on the procurement side, the international and global categories of purchasing in the raw material side, on the CapEx side, and we are a big CapEx spender, more than EUR 200 million, EUR 250 million of CapEx every year. We also share globally the best practices, the innovation, the R&D efforts, and of course, we have a coordinated approach with our global customers. This is our business model, which is really global. Leveraging globally some strengths, but being very local, close to our customers to provide a better customer experience. A unique differentiating feature of Verallia is probably the performance action plan methodology. Having worked more than 20 years in the automotive sector, I've readapted the lean manufacturing principles of the automotive sector to Verallia and our industry. Conversely to what many companies do when they reduce their cost, they usually have a very strong brainstorming exercise or using consultants to find a way to reduce cost. After two or three years of implementation, it's back to normal, and there is no more cost reduction. This is not at all our approach. Our approach is based on the 7 steps you see on the left-hand side, which is very methodological, very thorough, and which is about identifying all the cost and losses, waste, and losses in the company in order to fill a reservoir of potential reduction of savings of 20% or 30% of costs. From that reservoir, we want to generate every year 2% cost reductions. We are not talking about 1 or 2 or 3 big projects of EUR millions of savings. We are talking about more than 500 initiatives that each of them is about from EUR 30,000 to EUR 500,000. All these initiatives are led at shop floor level by shop floor people. We have more than 250 project leaders. These initiatives are very fast and short cycle. They last usually between 3 months to 9 months. It is very dynamic, which means that 2 times a year, we review in details all the costs of the factory in order to fill the reservoir. As soon as the project is completed, we take a new project to start, and this, at the end of the day, brings more than EUR 35 million of savings. At my level, it's very easy. I've got this scorecard that you can see on the left-hand side, which I review every month, and it's only 2 colors. Green, it means that factory's online, and they are going to achieve their 2% cost reduction. Red, there is a problem, and there are only 2 reasons for the problem. Either they have not found enough ideas to reduce costs, and therefore they have not applied the methodology properly, and therefore we send them a corporate expert to go there and teach them again the methodology. Or they have the ideas, they have the projects, but they have not implemented them on time or quickly enough, and therefore it's a project management issue. Again, we send them somebody to coach them and train them on better project management. Being very rigorous every month doing this routine exercise of reviewing all the initiatives inside the company has enabled us every year to reduce our cost by more than EUR 35 million, which is more than 2% of our cash costs. This will continue, of course, going forward. In terms of CapEx, we have refocused in CapEx, first of all, on the recurring CapEx that are enabling us to maintain a very well invested asset base. As you can see on the left-hand side, over the period from 2016 to 2020, we've been investing between 9.5% and 10% of sales every year. Every year, around 9.5%-10% of our sales have been spent in this company, which means that we have a very solid, modern, well-invested asset base to support our growth and to support our ambition. On the top of this, on the right-hand side, we have committed for the next 10 years to spend around EUR 220 million for the transition away from CO2 to less CO2, in order to reduce our CO2 emissions. This will be spread over the next 10 years. This is exactly in line with our ESG commitment that I've just mentioned a few minutes ago. This will be presented in great details by our VP of Operations, Romain Barral, in the next presentation. Before I move to next presentation, I will invite you to watch this video about our corporate purpose. Good afternoon. I'm Romain Barral, the Vice President of Operations for Verallia, and I will present you our environmental roadmap. As Michel explained to you, it is at the heart of Verallia strategy and purpose. First of all, a quick reminder on the classification of CO2 emissions. We have 3 scopes. The first one, Scope 1, is linked to the CO2 emissions coming from our activities, our factories, in the case of Verallia. Scope 2 emissions are linked with the CO2 emissions linked to the electricity we consume in our factories again. Scope 3 are linked to all the material and elements we buy into our factory, as well as all the action and events which are happening to our product after we sell them and we ship them to our customers. In January this year, we presented our plan for the first time in order to reduce our CO2 emissions. This plan was developed in order to limit global warming well below 2 degrees Celsius and was translated into a target reduction of 27.5% of Scope 1 and 2 emission in 2030 versus 2019. This had been validated by Science Based Targets initiative and was the baseline of our activities this year to reduce CO2. As Michel presented, we worked on three levels to be able to achieve this reduction and all three levels are on track. All action are on track. I will explain you that right now. First of all, a quick word and reminder on circularity, because circularity is really at the heart of Verallia model. That's the big advantage of working with glass, which is recyclable infinitely during its age and utilization. Quick reminder also on vocabulary. Recycled glass is called cullet. You will hear a lot about cullet in my presentation. When we increase by 10 points the level of cullet in our glass, in our furnaces, we are able to get a 5% reduction of the CO2 emissions. Of course, increasing cullet rate is a big element in order to reduce our CO2 emissions. The first level is on raw material mix, and that mainly around increasing usage of cullet. In order to do that, we've been working on several projects, mainly around collection and treatment. You will see several examples presented by typically Marco in Italy and Hug for Germany about the way we've been increasing cullet utilization in our plants. This year already, we are seeing a significant step as we are expecting to finish 2021 with a cullet usage rate of 55%, which is four points more than what we did in 2020. Which is already halfway through our commitment of 59% by 2025. The second lever to achieve our CO2 emission reduction target is to work on the energy we consume. Basically in our furnaces, we utilize energy in two different ways. 80% of the energy we use is consumed in the furnace in order to melt the glass. Okay? In order to reduce this consumption in the furnace, we are working on the technology of the current furnace that we have in our factories to be able to make them more efficient. It's mainly working on the batch itself, like with batch preheater, typically. To change a little bit the mix with increasing electricity with the current technology we have in the furnace. This is what we are testing in 2 of our factories with what we call super-boosted furnaces. In addition, we know also that of course, replacing natural gas by renewable combustible is a way to reduce further our CO2 emission. We have integrated several trials around this possibility. 20% of the energy we use in our factory is used for non-melting activities, which is all the things which are outside of the furnaces. Basically in order to reduce this consumption, we've been deploying a specific roadmap and monitoring tools in each of our plants to achieve an optimum in the non-melting energy utilization. You will see a great example of that in our plant of Seville presented by Paulo later on. The last pillar of our strategy is increased use of green energy, obviously. First of all, we focus on electricity and we've been able to achieve specific contracts in several of our countries in order to get electricity 100% with zero carbon content. As of today, we already have for 2021, 9 plants which are using, as I speak, 100% green electricity. As I told you before, we also start to work on sourcing of biogas or biofuels. Keeping in mind that it's one thing to source them, but the big and important challenge for us will be the sustainability of those sources of energy. We are working a lot into that regard. Last point, we also started the projects to generate our own electricity through solar panel installation. Paulo will explain to you and give you an update on what he's doing in Spain and Portugal on this, knowing that the first project in Portugal will start at the beginning of next year. Now, as Michel presented you, based on that plan, we are now adjusting our target and we are very proud to now put ourself on the way to limit global warming to only 1.5 degrees Celsius. In order to do that, this mean that the targeted reduction of CO2 will be increased from 27.5% to 46%. Still in 2030 for our Scope 1 and Scope 2 emissions. We also add, for the first time, a Scope 3 emission target, which will be to maintain our Scope 3 below 40% of our total emissions. Based on those, let's say, milestone in 2030, we aim at becoming net zero in term of CO2 emission in 2050 for Scope 1 and 2. Why do we do that? First of all, we do that because we believe our plan, the plan that we presented at the beginning of the year, is going very well. It's very robust, and we are in a very positive dynamic to be able to continue to go beyond this initial target. Furthermore, we know and we've learned this summer that in fact, a plan limiting global warming to well below 2 degree is not enough, and that was pushed by the sixth report of the IPCC, but also by the Fit for 55 strategy of the European Union. We thus have to adjust also our target at Verallia. Before I move to the technology, one key point I want to insist on in terms of methodology. Our plan is very robust today because basically we are leveraging the core of operational excellence at Verallia, which is what Michel explained before. First, Glocal, you will see a lot of examples. I cited already some of them, which are done in the countries, in the factories, which are aiming at reducing CO2 emissions. The other point, we are also leveraging the PAP methodology in order to drive the project, but also to go into that logic of eliminating losses, eliminating waste, and thus reducing our CO2 emissions. Back to how do we do this additional reduction. Basically, our current plan was mainly based on existing and well-known technologies that we were improving to some extent. To be able to go beyond, we will now introduce innovation and new technology, mainly through electrification of the furnaces. Faster replacement of natural gas with alternative energy and starting to develop carbon capture solutions to reduce further our CO2 emissions. The three levers that we have for the plan, we believe they are still the right ones. We'll continue to follow and track our actions according to those three levers. Concerning raw material, I won't speak again about cullet, but there is one important point that you have to keep in mind, which is that we will work also on increasing the collection, especially in the countries where collection is not very important today, which for us would be typically LATAM or Eastern Europe. Tintin will present to you a very new initiative that we are taking in Brazil to increase collection. We'll also work at improving the cullet treatment, we want also to introduce at industrial scale, meaning really with a continuous and long-term plan, alternatives to our carbonated raw materials, typically like limestone, which are releasing CO2 when we melt them. By replacing them with decarbonating material, we are able to reduce further our Scope 1 emissions. Concerning energy consumption, we will focus on the change of technology, which means that introducing a higher level of electrification. We will rely on that on the hybrid furnace, which is a new technology being developed by the consortium of glass makers led by FEVE and which will allow us to reduce CO2 emission by 50%. In addition, as I said several times, we'll work on renewable alternatives to natural gas, including hydrogen, and I will give you some details on that just after. Last item, we'll work also on carbon capture solution, especially carbon capture usage type of solution to reduce further our CO2 emissions. Concerning green energy, we are working on longer term low carbon electricity contracts, we will have to implement that in most of the country where we operate. We'll focus on the renewable combustible, but mainly again, on the sustainability, in order to really have a long-term alternative to natural gas. Back to hydrogen. Hydrogen is on the roadmap of all the industries in order to reduce CO2 emissions. However, we need to understand how this affects our current facilities. In order to do that, we need to be able to do real industrial full scale test. To do that at Verallia, we are working with suppliers to be able to connect a plant with a sustainable source of hydrogen, which in fact it's a coke oven gas, which is able to contain up to 60% of hydrogen, that will allow us to integrate high level of hydrogen into our furnaces in that plant. Based on that, we will be able, over a long period of time, because we aim to have this operation for 5 years, we'll be able to fully test the utilization of hydrogen as a combustible in our plant. We believe this is the best way to prepare ourselves to replace natural gas by hydrogen later on once the infrastructure will be there to propose us hydrogen. Let's talk a bit about Scope 3. Our objective is to maintain our Scope 3 below 40% of our total emission in 2030. As you can see in the top left corner, in 2019, our Scope 3 emission were representing roughly 37% of our total emissions. As you can see on the graph in the bottom left corner, we have three main contributors to those Scope 3 emission. First of all, the good and services we buy into each raw material are a critical element. Okay? By raw material, we mean the raw material we use when we don't use cullet, okay? Basically, we will be able to reduce those Scope 3 emission coming from raw material through two actions. One will be to increase cullet as I already explained. The other one will be to work with our suppliers on their emission in order to be able to reduce our own CO2 Scope 3. The second big item in term of goods and services is around packaging. It's basically through maximizing reuse that we will be able to limit the Scope 3 emissions. You will see a very good example in Iberia presented by Paulo later on. Energy is the second big driver for our Scope 3. Here, we will mainly benefit from the fact that we will reduce the energy losses, as I explained you before, in our factories. That will reduce our Scope 3 linked to energy. The third item is around freight, where today, we have 80% of our freight, which in fact is done with trucks and which is the way of moving material, which is the most emitting in term of CO2. We will work on two direction with our freight provider. First of all, will be to replace the fleet with trucks using renewables, combustible, of course. The second one will be to develop more and more alternative to trucks, typically train, for example. You will see a very good example in Italy presented by Marco later on. Last point, of course, we are now integrating this Scope 3 as a key driver in our sourcing process, and we will work in strong partnership with our main supplier to be able to support them in the reduction of their CO2 emissions, which will benefit to our Scope 3. As a conclusion, I presented you our initial plan, which was to maintain global warming well below 2 degrees, translating into a target of reduction of Scope 1 and 2 emissions for the area of 27.5% by 2030. Thanks to the work done in all the company and the dynamics and momentum we are having on this plan, we are now taking a new ambition, which will be to limit the global warming to only 1.5 degrees Celsius, which will translate in an additional target of 46% reduction versus 2019 of our Scope 1 and 2 CO2 emissions. This is how we are reimagining glass for a sustainable future at Verallia. I will now transition and hand over to Michel, who will present to you the South Western Europe segment. We are back to Southern and Western Europe Segment overview. Very quickly, as you can see on the left-hand side, this is the largest segment of Verallia, represented last year 69% of our sales and 67% of our adjusted EBITDA. You can see that we are, as I mentioned before, present in 4 countries, France, Italy, Spain, and Portugal, with 20 glass plants in this region and a strong focus in this region due to the fact that Spain, France, and Italy are the 3 largest countries producing wine in the world, with strong presence in still wine, sparkling wine, and spirits due to the fact that we have very high-end customers in the spirits industry, especially in France and Italy in this region. We also have, in the region, our own recycling centers, and we have 7 of them that are supplying our plants with cullets. Before I hand over to Olivier Rousseau, that will present to you France, you will see a video that really illustrates our talent in co-designing high-end bottles for our customers, namely Torres Brandy. Good afternoon to all of you. I am Olivier Rousseau, head of the French business of Verallia. I'll discuss some achievements we wanted to highlight regarding France. I'll start with a brief overview of the French market for those of you who are not familiar with it. On the top left corner of the slide, the graph shows the split of the glass market by end market. Verallia France is specifically focused on wine, both still and sparkling, spirits, and jar for the food market. These segments are the most profitable of the French market, and we are particularly strong in the most profitable sub-segment in these end markets. For example, champagne within sparkling wine, premium spirit like cognac within the spirit category. On the other hand, we are underrepresented within the beer market as our industrial footprint is more efficient for high-end craft beer than for mass market products. Moving now to the right corner. As you know, the French domestic consumption of wine has been decreasing over the last years. The growth in the wine segment is mostly coming from export by French producers. Even if, as you can see on the graph, the trend was negatively impacted by the COVID-19 pandemic, the recovery is now there, driven mainly by sales growth in the U.S.A. as well as China. You can see also on the far right graph that the price of French exported wine is significantly higher than for other large countries producing and exporting wine. The French wines, both still and sparkling, are more premium, and this is driving the need for more premium bottles, our strength at Verallia. By the way, the strength for wine is also true for spirit. Let's go to the bottom part of the slide. We expect a very low harvest in 2021 after severe frost during spring in multiple regions of France. Despite a lower harvest, we expect a limited impact in 2022 on wine bottling, as there is a quite high inventory of bulk wine still available, and as bottling is first driven by end consumption. We had similar experience in 2018 after a weak 2017 harvest, and this is why we expect a limited impact next year. We will also compensate with growth from other markets. To summarize, the French market is clearly premium and the growth opportunities are driven by export of high-end products. Our strategy is focused on these premium products. I'll now show you two examples with cognac and rosé wine of what we do to capture growth in profitable segments and how we work with our customers in these segments. Let's start with the cognac market. There is no doubt it's growing, and growth will continue for the coming years in the U.S., Asia and Europe. For the cognac, almost the whole production is exported. We work together with our customers in cognac to help them grow sales of high-end products, thanks to our high-end bottles. Our plants in Cognac and Albi have the expertise to produce these complex, high-quality bottles. There is joint work with our customers on bottle design and bottle decoration, specifically for limited edition, and you can see an example of an Hennessy VSOP bottle on the slide. We also work together on the whole supply chain to get to the best possible service level and just-in-time delivery, and this is key for our customers. What makes us strong is our ability to work across the entire value chain with our customers. Doing so, we are able to leverage the growing demand for high-end spirits across the world. Let's continue with rosé wine. On the top right corner, you can see that rosé wine is a growing segment globally and growing faster than other wine colors, specifically red. The attractiveness of this product is that we serve it with many specialty bottles of flint or extra flint colors, which means white and extra white. These are high-end bottles as rosé wine producers are looking for differentiation and premiumness and as it has become quite recently a very popular product. At the time of Verallia's IPO, I presented what we did with our customer, Gérard Bertrand, with the Cote des Roses bottle. Let me provide you with an update today, two years later. This bottle, the Cote des Roses, was created by a design student during the Verallia Design Awards, a now very popular design contest, the idea to have the bottom of the bottle picturing a rose got our customer really excited. We developed the product in our Chalon-sur-Saône design center, together with the student designer and the customer, industrialized it in our Cognac plant. Let me tell you, it was not an easy job given the complexity of the design. We can now say it's a big commercial success for our customer, as he's selling more than 10 million of these roses across the world and with a good margin. Today, we produce this bottle in different size and leverage our industrial flexibility to do so across four of our factories. The 2nd bottle presented on the bottom right of the page, the Sérac, is a similar success, here too, the very innovative design came from a student during a Verallia Design Awards contest. These 2 examples show how we add value for our customers on high-end, fast-growing segment. We help them with customized bottle getting a premium margin for their products. After talking to you about our market and the way we bring value to our customers, let me move on now to what we are doing about our industrial footprint to improve our competitiveness. As you can see on the top right of the slide, glass imported in France by foreign producers increased regularly over the past years represents close to 40% of the market today. The attractiveness of the French market we just discussed explains this growth, and the only way for us to reverse the trend is to improve our competitiveness. In June 2020, we announced a transformation plan to eliminate excess capacity in France and improve our competitiveness. We removed 150 position and we found an internal solution for about 130 people, thanks to the success of our early retirement and voluntary departure schemes. We had to lay off close to 20 people, all in Cognac, as this is where we decided not to rebuild a furnace. As of today, and as we found jobs for many dismissed employee, only five of them haven't yet found a solution, and I committed publicly to work until 100% of our employees have found a new job. This transformation plan allowed us to implement an organization by autonomous production unit like the one we already implemented in other Verallia countries and which proved successful. For each furnace, this organization followed the glass flows from the furnace to the hot end, the cold end, and last, the palletizer, in order to get all the member of the autonomous production unit working as a team to improve its performance. The transformation plan has been finalized in the first quarter of 2021. Right after, we negotiated a competitiveness plan with our union. The deal is simple. As long as the industrial performance improves for the French factory, we guarantee CapEx to rebuild furnaces and we guarantee spending power for our employees. We organized a referendum on this competitiveness plan. It was approved by a majority of our employees. Thanks to this agreement, we will improve productivity and the financial performance of the French business. Today, the country generates an EBITDA margin above 20%, and we are working to bridge the gap France has with other European countries. Moving to the next slide. I will now conclude my comments with a focus on our employee shareholding ownership program, a part of our strategy for an inclusive place to work. Since 2016, we organized six offers to encourage our employees to become shareholders of the company. The 2021 offer was a great success. Today employees own 3.5% of Verallia's share capital. In France, participation in the 2021 program was 75%, a similar level to what happened in prior years, and higher than for other countries. In France, the employees who decided to invest their profit sharing of the last 6 years, an average of EUR 22,000, have an investment worth more than EUR 100,000 today. A pretty successful plan illustrating employee support to the group strategy. We will continue to encourage employee shareholding ownership, and we aim to reach 5% by 2025. To wrap up, let me summarize the key messages. We have seen that France is an attractive market with growth opportunities driven by export. In this market, we are working closely with our customers to add value across the whole value chain, and we are focused on the premium segment. We are also working hard on our industrial competitiveness to improve our financial performance. Last, our employees voted in favor of our competitiveness plan. Before I hand over to Marco, you will see a video about premium co-design concerning the current Italian flagship, the Prosecco. New York case Vera Wang. Prosecco premium. Partner Verallia packaging in vitro. Verallia Selective Line. Silver metallized opaco Saga Décor. Modern innovative. Good afternoon, everyone. My name is Marco Ravasi. I am the General Manager for Verallia Italia. I really like the video you have just seen because it's putting together the two key factor for Italian style and life, which are design and food and beverage. I will talk to you about some achievement made by my team during the last year. I will talk also a bit about Prosecco, that is one of the main growing segment in glass packaging in Italy. Before, just few word about the Italian glass packaging business. I would say that this is a market that is very resilient because last year we had just a drop of 4.3% in the critical period that you well know. It's very dynamic, too, because if I take some segment to make you some example, in beer, the growth of the last 3 year was around 10% in term of per capita consumption. In water, we are the 2nd player worldwide after France and the 3rd consumer worldwide after Mexico and Thailand. Oil also is a very important segment where we are the 2nd producer after Spain. In average, we have an harvest around 300,000 tons. Tomato sauce is a very important segment. I think that 1 liter each 4 produced of tomato sauce is made in Italy. I left as last one wine, because in several year, we are the worldwide leader in term of wine production. In 2021, the last harvest, we expect to produce 19% of total worldwide wine production. We are the third consumer in absolute term after U.S.A., that is the leader, and France. Very close to France. In sparkling, and to be closer to Prosecco world, we are also the leader worldwide. That's thanks to Prosecco. If you look the graph in the top left, you see great number in term of CAGR. There was a growth in the last 10 year that was in average 13%. In average, one bottle each five is consumed in Italy in the domestic market, when a big part of it is in export activity. Big consumer are in U.K. You see the average export price in the middle of the slide is around EUR 3, so it's very close to beer. The growth was gaining share to beer. In U.S.A., it's well-developed in the big town when all the countryside is still to be developed. There is really a great future, a great expectation for the coming year. We have also a newcomer that is Prosecco rosé. Our customer, following the trend in still wine, have developed this new product. We just launched in October during the pandemic period. We have good expectation for the end of this year with a rolling of 80 million pieces, 13% of the total Prosecco sales. Why I'm talking to you about Prosecco? Because Verallia Italia is the leader in term of production. Four bottle each 10 are produced by Verallia Italia. This is a segment where added value is also present. Why we are so strong in this segment? We have proximity with our customer, because we have a full range, very complex product available for them. The quality is well-recognized. These are, as I said, in export activity, are bottle-shipped 1,000 kilometer far. In term of pressure, is very important to have good quality of bottle. The takeaway for this slide, we are well present and leader in a segment that is the fastest growing in Italy with added value. Let's move on another case history, is flexibility and service in a period where you well know the criticality for our customer to make forecast and a correct one. In the last 4 year, if you look the graph in the top right, we have realized several activity. We have specialized our plant, we have externalized some SKU, some family of product, and we have reorganized our warehouses, closing some and open some other very close to our customer. Also, internally, we merged the customer service with the planning department to be able to give a quick answer to them. We have a new arrive. It's a new furnace, as you well know, in Villa Poma, that started just this year. On total, we were able to increase by 20% the job changes, the flexibility, and at the same time, very good for working capital and cash flow, we have reduced our stock by 24%. The cost of our warehouses, because having lower stock, we closed some of them. The most important factor in this slide is the graph in the bottom right. You see that our capacity to delivery in full in time for our customer is at 98%, so it's a very best-in-class level. Also during the COVID period in Q3 2020, the minimal level was 94%. Very good number. The takeaway here, in a critical context that is still not ended, our customer know very well that we are a very flexible company, we can support them. Now let's move to what I call a commercial greenfield. This is a commercial project. What does it mean, distribution? Distribution, in Italy, the big glass producer will sell to the big million customer, and they delegate all the small customer to distributor. It means something around 70,000 customer in all the Italian perimeter. Well, here is where you can have really added value. You can sell personalized bottle to small customer where you could sell the single pallet. Our idea here is to grow. We make a pilot test in 2017 in Tuscany, but it's a quite complex area in term of wine production, just to understand what was the need for this small customer. Now we have deployed, we started this year, and our expectation is in 3 year time to become one of the 5 leader at national level, covering all the perimeter with around 30 agent. The takeaway for this slide is we want to improve our mix of product and family, having added value and better margin, thanks to a completely new distribution sales network. Now let's move to PAP and environmental impact reduction, as already mentioned by Michel and by Romain. This is about logistics, we are talking about Scope 3. We have developed and working in the upstream and downstream supply chain. In the upstream, we work it because normally we bring the sand for our plant from the northwest of Italy to the northeast. We move all this transport from truck to train, having a significant reduction of CO2 emission, 1,500 ton per year. Thanks to that, we won an award from the National Logistic Association. On the downstream level, we are continue making synergy with our main customer. We take the example of Campari with one of the biggest. We also continue to change and to improve the CO2 from the liquid natural gas utilization. We have also saturated the loop, just bringing back a final product with the same train that was bringing sand on the other side, and also moving to train some shipment from north of Italy to south of Italy. The takeaway here, we can have PAP in logistic, improving your cost footprint and also reducing the CO2 emission. Finally, I want to close with a very important project, very innovative one in our Verallia Italia. Well, it's only people making the difference. Well, we have two plants, one close to the other, where in one we make the treatment of cullet to recover and to close the recycle flow of glass. Very close, another plant where we put back in the furnace the cullet, and we produce bottle and jars. Well, two young groups of engineers, they were studying some productivity improvement, but we did a lot more because you see the mountain in the middle of the slide. This mountain was the waste from the treatment facility, but we were not able to recover for quality reasons. That's a very fine glass sand. Well, this team working together found a way to treat in a completely new way, so that's a knowledge for Verallia. To recover, you see that we already hit half of the mountain in the following picture. Big result from the economic point of view, EUR 850k reduction, but also CO2 emissions, as I said, sustainability, 1,000 tons per year CO2 reduction. On top of that, I'd like to mention that we improve also yield by 2.5% and claim by 11%. That's a very innovative, important project. We take away that industrial cost footprint reduction and environmental benefit that can work really together. Before I hand over to Paulo Pinto, I leave you to see a very nice video showing a new partnership we have built in Spain, with the customer Mahou San Miguel. The principle behind is a way to reduce and working together the CO2 emissions and the energy impact. Thank you very much. Thanks, Marco. Good afternoon, everyone. My name is Paulo Pinto. I'm the General Manager for Iberia, Spain, and Portugal, and it's a pleasure to share with you some key realizations that we do in the region, starting from this one that you have saw in the video, which is one of a kind partnership that we have done with one of our customers, Mahou San Miguel. To make it simple, we take advantage of the energy that we generate. We transform it into steam, and we send it to the brewery to replace the natural gas. The results, you have saw it already in the video. They are 60% reduction in customer CO2 emission, which is almost 5,000 tons of CO2 per year. For Verallia is a 40% reduction in the temperature of the glass melting process. This is an example of a customer partnership to reduce CO2 emissions together. Another example of a PAP is pallets. In Portugal and for export, we are obliged to treat the pallets with the phytosanitary treatment. Each time we have to buy new pallets with a cost of EUR 9.2 per unit. Finally, we have achieved an agreement with our supplier to treat the recovered pallets, which allow us to lower this price from EUR 9.2 to EUR 4.5, which is a saving of EUR 4.7 per pallet, which is equivalent to EUR 200,000 per year. Also a reduction of new pallet needs, and 1,400 pine trees saved with equivalent to 5 tons of CO2 absorption. It's a combination of CO2 emission reduction and a PAP saving. Another example, it's on Seville. On the benchmark, we see that on the non-melting energy, we have room to improve. We identify the opportunity in the water circuit, which is a very high electrical consumption. We put in place a project management with some actions, and the objective was to reduce from almost 14 kilowatts per ton to 8 kilowatts per ton. We have already achieved more than this, and only in the first 5 months of the year, we have achieved a EUR 75,000 of savings, which is a 10% reduction in water consumption in the very dry region as it is the south of Spain. Electricity and water consumption reduction combined with a PAP saving. Another project that we have in Iberia is the photovoltaic installation. We have just started this year with the installation of the photovoltaic panels in our plant in Portugal. We aim to be, in 2024, all 7 sites with photovoltaic panels. This means that in 2025, all our electricity will be green. 18% will be self-generated by the photovoltaic panels, and the other 82% will be green-certified electricity. Leveraging the sun in Iberia to drive lower CO2 emissions. Some projects that we have also. On design, every year we do a contest, which is not only in Iberia, it's in all Verallia, in which we invite students from different universities to create some new designs. At the end, we award the best realizations. Taking advantage of the digitalization, as we cannot be in the physical fairs during the lockdown, we have made 2 digital ones. 1 on wine and spirits, the other 1 on olive oil exhibition, the 2 of them were very participated. To maintain the contact with the customers and also with our employees, we have also made some contacts on Facebook on the photo contests. Digitalization to improve customer experience. We are not a B2B company, but we try to engage end consumers to the virtues of the glass, like the circular economy, the recycle, the reuse, the preservation of taste and flavor. We use some influencers and some digital tools like YouTube, Instagram, and TikTok to reach these consumers and to influence. Promote glass benefits to end consumers is the aim of these campaigns. On circular economy, this is a good example. On the north of Spain, on the Basque Country, cider is a very popular drink. Every year, 12 million liters of Basque cider are consumed, and 90% of them are packed in reusable glass bottles. There's a distributor who collect the bottles, wash the bottles, and put them again in the market. This is a very good example of a local market using the same bottle and a good example of circular economy. Contributing to the circular economy by supporting reuse where it makes sense, like this case. Now, before I hand to Dirk and Hugues, you will see a video illustrating a long partnership with a customer, namely Brio-Reil German. With Verallia from Bad Wurzach, we have a decades-long trusted partnership and lived regionality. As a family business, we place great value on continuity, on a friendly atmosphere, and this has worked very well for a very long time to the satisfaction of both parties. We expect that the next decades will also be characterized by this trusted and very successful partnership for both parties. All the best. Good afternoon. I'm Dirk Bissel, and I will succeed Hugues as the head of the Northern and Eastern Europe region. I'm a mechanical engineer, and I have made my career in the automotive industry, the steel and the energy industry in various management routes. I've joined Verallia since the 1st of October, so I'm rather new to the company, and I'm excited and looking forward to this new mission. Let me briefly introduce our region to you with some key figures. We have reached, in 2020, a revenue of EUR 554 million and an adjusted EBITDA of EUR 127 million, which equals an EBITDA margin of 23%. Our region has provided 22% of Verallia's total sales and 20% of the total EBITDA of the group. Concerning our footprint, we cover a rather large territory of various European markets. We are represented with four plants in Germany. We run two glass mills in Russia, one in the Ukraine, and a specialized plant in Poland to provide high-end decoration for a large range of premium products. Furthermore, we operate two glass recycling centers in a joint venture with a specialist for glass recycling processes. The joint venture is a key source for a sustainable supply chain of cullet. Hugues will come back to this strategic setup for our region. Concerning the product range, I would like to highlight the remarkable range of markets and customers which we serve with various glass products. We supply to the non-alcoholic beverage market, for example, mineral water bottles, while we support major players in the food industry with various types of jars. No surprise is a huge range of beer producers in our region, while we still manufacture significant volumes for spirit and wine. The latter is maybe less known for North and East Europe. This diversified market in our product range gives us several opportunities to answer to the needs of a broad range of clients. Customer service and growth opportunities. Let me give you two examples to demonstrate how we put clients into the center of our strategy. First, our one-stop shop operations in Poland and in the Ukraine is a very good example how we meet the expectation of our clients through a unique service offer. We provide premium finishing and decoration in Poland for bottles manufactured in the Ukraine. Such product offer reduces the lead time for the customer and makes the order process simple and straight. Like this, it is easy for our customers to do business with us. Secondly, beyond the simplified service, thanks to our one-stop shop, we have recently invested into the decoration plant in Poland in order to benefit from the premium trend in the spirit industry. We are able to produce a large range of decorations nowadays based on highly automated equipment industrialized in 2020 in Poland. Like this, we will improve our efficiency and support the expected strong market growth shown in the little table on the right-hand side of the chart. Hugues will continue to present to you several cases demonstrating how we turn customer needs and market trends into sustainable growth in our region. Thank you, Dirk. Good afternoon. Well, let's go back to Germany and let me show you another way for Verallia to create value, this time in the wine segment. Wine is important in Germany. In fact, we have one plant dedicated to wine right in the middle of the wine region. As a leader of this segment, we have offered extra value with lightweight bottles. It is our ECOVA product range. The same quality, less material consumed, less energy consumed, less cost, and of course, less CO2 emissions. Since 2015, that is about 40,000 tons of CO2 saved. Now, two things to remember. It is a very significant effect we are talking about here. The chart on the right shows that we have saved already 10% of weight since 2015. We will still decrease 4% in the next three years. The second point, it is not only middle value wine. There are also high price wine in Germany, such as the Mosel Valley for the wine connoisseur, and we were recently contacted by the Grand Cru Association with one simple mission, make the bottle lighter and keep it just as attractive as before. Another example of sustainability and value, Verallia Deutschland is very active on the returnable, also called reuse market. It's a strong and promising market for Verallia. Before I go into what Verallia is doing on this market, I must give you a little background. First, the returnable packaging market is historical, well-established, with very high level of shares in segments such as beer and mineral water in Germany. It's a part of the past, but it's also a part of the future. The customer demand, because of awareness for sustainability, and the federal regulation are asking for a higher share of this returnable packaging. Of course, glass is the best material for reusable packaging. It's healthy, it is durable, it is chemically inert. For the glass industry, the returnable market offers a large potential in two ways. First, it allows to compete with other packaging materials in segment where glass one way does not. Second, every product, every segment, every customer who moves to a returnable packaging needs to create a large amount, what you call a pool of bottles, to fill the logistic chain. It's all these products that go into the filling line, the distribution network, to collect the empties, the cleaning process, and back to the filling. That's exactly what Verallia does. We help the customer upfront from the very start of their new project before the production of these new pools. We have identified for that 4 trends that are leading to more creation of these new pools of returnable bottles. The first trend is retro. You see this bottle on the bottom left with a traditional ceramic closing. That's a very old style closing, but that we put on new products. We make new bottles that look old. The second trend is just the opposite. We make old bottles look new. It's iconic bottles who need to be replaced with new bottles of the same shape, but a slightly modernized design. There are also trends like standardization. 4 very large breweries in Germany have decided to replace their individual bottles with one unique standard model shared in common, pools to be produced. Then we have new segment, like, for instance, with the work we are doing right now on yogurt in returnable jars. One point to finish is to stress how large can be the needs. If you see the bottle on the bottom right, it's a fruit juice bottle in glass. A very long partnership between the juice producers and the glass makers. Our plant is about to record a video to celebrate the production of the billionth bottle, and the production goes on. After that, the recycling. As every company in the group Verallia, we set ambitious targets of cullet in our products. To achieve that, we develop sustainable access to these cullets. What we already did, a joint venture with Remondis, leader of glass recycling in Germany. We secure 50% of our needs through this joint venture, and we grow together according to a plan already defined. What we are doing now, while you can see this chart below, the increase has already been 10% and it keeps going. Especially, and I will present it in a minute, we are increasing the capacity in our plant of the joint venture in the south region. What we're going to do for the future, next capacity increase in the north is under study, and a very interesting idea is how could we close the loop of the full circular economy of the cullet by involving our customers directly in partnership with us. Now, besides the collection, we need to increase our usage. The limitation of the cullet is often the quality achieved, not because of glass that can be recycled forever, but because of contamination in the collection. If you see what will be a traditional line on the chart, for every 100 tons collected, 13 tons are lost through the process of cleaning and preparing the cullets. Our answer to that, we're building an innovating line with two separate streams, one for what we call the gravel cullet of bigger size, and one for a smaller size we transform in glass sand. It allows to maximize the quality, it allows to increase the quantity, and it allows to reduce the waste. You can see the numbers below, 50% more quantity, 50% less waste. You can see through this example that we have found many ways to innovate and to improve, to create sustainable value. We do it upstream, we do in downstream with our customer and with our suppliers because we are in a circular economy. Before I hand over to Quintin, you will see a nice video showing the collaborative work that has been done in Argentina with a local client, Trivento, to develop a brand new bottle of Malbec, the iconic Argentinian wine. Good afternoon. The video was a very good introduction for Latin America. My name is Quintin Testa, head of Verallia in LATAM. Let's start with the overview of our businesses. At the end of 2020, we have EUR 337 million sales with EUR 80 million adjusted EBITDA that represent 34% of ratio of margin. LATAM's is contributing for 10% of Verallia worldwide sales and 13% for adjusted EBITDA. We operate in Brazil, Chile, and Argentina with 5 manufacturing plants, 6 furnaces, with circa of 655 kilotons sold in 2020 with a headquarter in São Paulo, Brazil. We are present in all the end market, but mainly with wine and beer, with global and local customers. As you could see, Verallia in LATAM has a solid and profitable footprint. As you know, the LATAM region is always exposed to some local constraints, like in Brazil, with up and downs in GDP, Argentina with a strong fluctuation on exchange rates, and also in Chile with social stress on top of the global crisis like the COVID one. Despite that, Verallia LATAM is growing in volumes year after year, reaching the point that we are sold out since 2020, despite the capacity increases that we did in 2019. At the same time, we are delivering the committed EBITDA above 30%, with a significant 37% CAGR EBITDA growth from 2015 to 2020 without the impact of Forex. All that is thanks to the application of our business fundamentals. First of all, with a strong and experienced local team, always supported by the group, operating in the right end markets. With a strong presence with local and global customers, keeping very strong intimacy to have a healthy commercial spread. The last but not the least, operating with excellence in terms of quality, safety, efficiency, and deliveries. The last but not the least, delivering all the time the productivity action plan above 3% of cash costs year after year. LATAM region is reaching excellence in almost all the aspect of the business criterias, despite the very challenging local environment. Our market, please have a look of the right top graph, is about 3.1 million tons. Briefly, 1/3 is wine, 1/3 is beer, 14% is spirits and others. Each country has different dynamics. For instance, in the case of Argentina and Chile, wine market growth is driven by sustained export and local consumption despite a difficult macroeconomic situation. Just to illustrate that, in terms of wine in Argentina has growth, the per capita consumption in the last 2 years, almost 3%, gaining market from beer. In the case of Chile, is growing 6% in between 2021 to 2024, thanks to export not only to Asia, but also to North America. The case of Brazil is also very dynamic. Beer and wine are the largest contributor to the market growth. Beer end market is following the trend of one way and localization trends. Localization meaning that beers that were produced outside Brazil now are produced and bottled in Brazil, is the case of Corona. In the case of wine, we are increasing in Brazil the consumption per capita almost 28% in the last 2 years. As a conclusion, we focus on wine end market in Argentina and Chile with a strong leadership position, offering quality, innovation, and delivery. In Brazil, for all the segments, with a strong focus on the fast-growing beer and wine end markets. Let me introduce 3 business cases on which we are very proud of. As you know, in the industry, to create the conditions to work safely is fundamental, and in our business is not different. A safe place to work is our priority in LATAM. As you can see in the left-side graph, the accidents and the rate of frequency per million hours worked. You can see a very nice improvement and almost achieving perfection, meaning 12 months with no accidents. This improvement is thanks to implementation of our safety roadmap, eradicating safety-risky conditions. In the last three years, we have eradicated more than 30,000 different risks identified by our collaborators. Training and implementing all the rules and the standard from Verallia Group. Zero accidents is achievable, and we have reached this level in LATAM. The second example is also about diversity. As our purpose say, reimagining the glass for a sustainable future, Verallia LATAM created a program called Diversus to have an environment that offers opportunities to all people. We perfectly understand that our gender diversity index in LATAM needs to be improved. This is why Diversus will support to create an inclusive workplace to work. Our strategy is to act in 3 pillars. First of all, education, diagnosis, and processes. We started with actions in 2020, working on the career paths, career accelerations. In example, we have implemented a program called training, on which we are hiring new talents focalized on women. Hiring also specialized and external support to identify position that can be offered to people with disabilities. Providing awareness to all of us with lectures and sharing experience. The last but not the least, looking for our internal processes to adjust things that we do daily. We know that there is a long way to go, but we started. Diversity is more than a word, it is an attitude. The last but not the least, very linked also with the circular economy, is the external cullet utilization. Considering that this cullet collection is important for us, we explore the way to increase this collection. Just to brief you on the picture in Brazil. 75% of the glass goes to the landfill. This is why our main focus is to work in collection of cullet, working with beer distributors, with some customer using the logistic chain, implemented some reversed logistic to get back this glass to our facilities. The second is also the implementation of the program called One Thousand Collection Boxes. We target to cullet from this program by 2025 almost 24,000 tons of cullet. The last but not the least is support environmental education with authorities. As you could see, we focuses on increasing the cullet collection as it is the current bottleneck in our region. The last but not the least is about the strategic investment in Brazil. As already announced, we are in the middle of the brownfield project, adding a second furnace in Jacutinga, Minas Gerais, that will provide 120 kilotons capacity addition, mainly for beer and market. Mainly also for one-way. This investment will count for almost EUR 60 million. Let me inform you today that this project is running as per the plan, meaning that we will start production in December 2022. Also, I have the pleasure today to announce a new capacity increase in Brazil for 120 kilotons capacity addition to grow across the wine and spirit and markets for green and spirits for the south of Brazil, with an investment of approximately EUR 80 million, starting production in December 2023. As you could see, we are investing on the fastest-growing segment of the dynamic Brazilian market. As a matter of conclusion, LATAM is a region performing well despite the local conditions. We sustain our results, thanks the discipline implementation of the strategy. We are ready to grow, thanks the strategic investment already announced. Many thanks for your attention. You will now discover the last video concerning the booming Brazil and the successful building of our plant in Jacutinga in 2019. You will see how efficient the team has been, which only bodes well the further investment. Thanks a lot for your attention until now. You are more than 100 connected. I have already received questions, but please do not hesitate to keep on sending them until the Q&A session starts. It is now time for a short break, and we will resume with Nathalie, who will walk you through the financial part before Michel concludes. Let's meet back online in 5 minutes. Good afternoon, everyone. I am Nathalie Delbreuve, the group CFO. I will lead you through the financial performance of Verallia before presenting to you our new midterm guidance. Let me start my presentation with some historical figures. The story of Verallia is one of sustained growth and improved profitability. You can see on this page on the left the net sales of Verallia from 2016 to 2020, reaching EUR 2.5 billion at the end of 2020. This is a story of sustained organic sales growth, plus 7.4% per annum over the period, and this despite the COVID period. On the right, you have adjusted EBITDA growing steadily over the years, plus 7.6% per annum over the period, and EBITDA margin reaching 24.7% at the end of 2020 for EUR 626 million. This performance comes from three key financial improvement drivers. The first one is sustained volume growth. Our market is expected to grow out of 2020 at a rate at least equal to the past 5 years. That is +2.1%. The volume growth is supported by increasing customer concerns about packaging sustainability and glass is gaining shares, as Michel has presented to you. We have the additional contribution of new furnace openings. Second, positive price-cost spread. We have a continuous, very strict policy of preserving a positive price-cost spread across all our segments. Our prices benefit from value-based pricing initiatives, and we have a continued purchasing and hedging policy that I will present to you later. Third, very important, operational excellence deployment that Michel presented to you extensively. We continue to focus on this pillar with a target from our performance action plan to reduce at least by 2% our cash production costs every year. This is a key pillar of our adjusted EBITDA growth and to continue. Now let's look in more details at the period 2018 to 2020 and the first semester 2021. You can read here the bridges of our adjusted EBITDA on the top for the full year from 2018 to 2020, and on the bottom for the first half of 2021 compared to 2020. From left to the right, we have first the activity pillar, that is the result of the organic growth that I commented to you further, and that has been strong over that period. You have here a negative number that is due to the important destocking that has been necessary to address that growth, and we do not expect that destocking to go beyond 2021. The second pillar is the spread. Positive price mix cost spread as explained. Here our prices increased more than cost inflation. You can see delivering significant high number to the EBITDA. The third pillar is the net PAP, so operational excellence, delivering more than EUR 35 million per year in average, even in 2020 when we had the COVID impact. This is even EUR 21 million in the first half 2021, so more than 2% production cash cost reduction. The last two pillars, other and mainly exchange rate, negative as we have exposure to Latin American currency mainly. You can see that these adverse effects are more than offset by the organic adjusted EBITDA performance. All in all, we reach at the end of June an EBITDA margin of 26%. This is why we say our IPO guidance on adjusted EBITDA margin, that is to go above 25%, is achieved one year in advance. Now in the next two slides, let me focus on our cost structure and the policy on hedging and purchasing to limit the volatility of this cost. First we have a disciplined and dynamic risk hedging policy on energy, CO2 and exchange rates. We have for energy and CO2, a hedging horizon of three years. We progressively hedge during the year N in order to reach in October of the year N for energy, 100% of the target of the year N plus one, 50% for the year N plus two, and 25% for the year N plus three. For CO2, very similar but with higher percentages for N plus two, 75%, and N plus three, 50%, as the volatility is even higher. For the Phase 4, we have EUR 55 million already carbon quotas purchases, in order to address these needs. Exchange rates, very limited transactional foreign exchange risks for Verallia as we have very local business, but still a strict hedging policy of 100% of our firm commitments. Now here you can see the cost breakdown of our cost structure. With three main categories that are around 20%, production labor, raw materials, and energy. In the breakdown of the raw materials, you can see that external cullet share is now exceeding the total of the other raw material volumes, and this really reflects our commitment to ESG and our target to increase the share of cullet in our raw material. For energy, I already commented to you the hedging policy that we have. For the other purchases, we will favor long-term partnerships, mainly for minerals and chemical. We will have multi-year supply for CapEx and a more opportunistic purchase approach for molds and equipments with low-cost countries. Our procurement process is very efficient with a metric organization and professional purchasers. Very important, our practices are responsible for purchasing, and they are now deployed in all the countries covering CSR risks and for CO2 Scope 3 aspects as well. All that in order to gain visibility and to contain the volatility of our cost base. Here, let me lead you from adjusted EBITDA down to net income. You have here the years 2018, 2019, and 2020, and on the right, the first half year 2021 compared to 2020. You can see the adjusted EBITDA and the lines below leading to net income. In the depreciation and amortization line, that is about EUR 280 million per year, you have around EUR 60 million that is linked to the customer relationship recorded in 2015 at the Saint-Gobain spinoff. This is amortized over 12 years, thus the EUR 60 million. In the adjustments to EBITDA that you have the full breakdown below, you can see that the amount is reducing year-over-year with a very low amount in H1 2021. In 2020, restructuring costs mainly relate to the transformation plan in France, and in the years before you will find costs related to the IPO that of course we do not have anymore. Financial income and expenses have been reducing strongly as well, were impacted by IPO refinancing costs, and now we enjoy, as I will show you, low in financing costs for our debt. Income tax, we have an effective tax rate of around 27%. That has gone down, as it was 30% in 2019. We benefit from specific measures, for example, in Italy, in patent box in 2020. As you can see, a steady improvement in net income and our EPS, excluding the PPA impact that I commented to you, is superior to EUR 2 in 2020. Let's talk about cash. As Michel Giannuzzi puts it, cash is reality. The key drivers for the cash flow generation at Verallia, and it is very strong, as I will illustrate. We have 3 drivers as well. Adjusted EBITDA, strong adjusted EBITDA, as I just commented, so high level and improving. Smart CapEx, overall 10% of sales invested every year with recurring CapEx maintained at 8% of sales and targeted strategic investments. Additional capacity in growing markets and specific investments to reduce our CO2 emissions in line with our ESG roadmap. The cash conversion is around 60%. That is a very comfortable level. After that, a very disciplined working capital management, supply chain actions to optimize inventory level and the quality, and tight overdue management, also supported by a large customer base that is mitigating the risk. This leads to very strong cash flow generation, as you can read on this slide. You have here operating cash flow and free cash flow for the years 2019 and 2020. Operating cash flow has been above EUR 400 million, reaching EUR 442.1 million in 2020. You can see, after operating cash flow, other operating impact, mainly including IFRS 16 for EUR 80 million, and the adjustments to the EBITDA that have a cash impact. For example, the COVID costs in 2020. Interest paid and other financing costs have been reducing significantly, as explained for the P&L. The cash tax has been EUR 60 million and is now with an effective tax rate of 27% ongoing. A high conversion of operating cash flow into free cash flow. Verallia benefits from a robust balance sheet. You can read on the left a simplified balance sheet structure at the end of June 2021. We have a high-quality tangible assets base representing around 40% of the total assets, steady investment, average CapEx around 9.8% of sales for the past 5 years, and a new furnace being currently built in our Jacutinga plant in Brazil, with the start of production end of 2022. Our capital structure post-IPO is enhanced. We have an equity of EUR 595.4 million, and you can see that it was EUR 50 million in 2018. The net gearing is 2.2 times in 2020. Our ROCE after tax is above 20%. Here in the calculation, we exclude the goodwill and asset step-ups from the 2015 Saint-Gobain spin-off. The ROCE has been regularly increasing with a mix of rising adjusted EBITDA, that we've seen, and capital employed very well under control. Our business model is supported by high-quality asset base and robust balance sheet. We've been continuously deleveraging the company since the IPO. You can see on the left the net debt levels and the leverage. That is now, at the end of June, below 2 at 1.9 times. This after EUR 109 million of share buybacks in the first half of 2021. We have a high comfortable liquidity level, close to EUR 50 million. As a consequence, you can see on the right, we have enjoyed multiple credit rating upgrades since April 2019. We are currently BB+ stable with S&P and Ba2 stable with Moody's. We believe our trajectory is towards further credit rating upgrades. We have been working as well on the diversification of funding and the lengthening of our debt maturities. You can see on the right the detail of sources of our funding, and very proud of the first line, that is our first inaugural sustainability-linked bond that we issued in May for EUR 500 million, and that has pushed the maturity of this EUR 500 million to May 2028. This bond is also fully aligned with our ESG roadmap and strategy, as the 2 KPIs are CO2 emission reduction and external fuel usage. That are 2 key pillars of our strategy in ESG. Lengthening of debt maturity and all that with a high competitive cost of financing that is kept below 2%, all including. What are the key financial takeaways? First of all, we have a proven financial performance since the IPO. Positive organic growth despite the pandemic, and IPO midterm targets met 1 year in advance. Second, our business model is straightforward and relying primarily upon self-help initiatives. Positive spread, strict discipline, and PAP, reduction of more than 2% of our production cash cost basis every year. Both very well under control. Third, sustained cash flow generation, as I illustrated to you, cash conversion is very strong. All of that with financing our ambitious ESG plan and also pursuing the deleveraging of the group. Fourth, solid and efficient balance sheet, as you have seen. Low leverage, diversified financing sourcing, and rating upgrades, and also a high ROCE. Last but not least, we have, and we believe the environment is supportive for this new midterm guidance for 2024 that I will now share with you. The demand environment is supportive. Our pillars are delivering and especially our self-help measures. Now our new midterm financial guidance from 2022 to 2024. Organic sales growth, we believe a CAGR +4% to +6%, half from volume and half from price mix, and with the assumption that the inflation will be moderate after 2022. Adjusted EBITDA margin reaching 28%-30% in 2024, and here, based on spread and net PAP continuously delivering. Cumulative free cash flow that should reach circa EUR 900 million over the three years, and this including, as explained, recurring strategy and strategic CapEx around 10% of sales, our CO2-related CapEx, and three new furnaces by 2024, two in Latin America, as explained to you by Quintin, and one in Italy. Earnings per share, excluding PPA, should reach circa EUR 3 in 2024. Shareholder return policy, dividend per share growth superior to 10% per annum, and accretive share buybacks. Thank you all for your attention. Now let me hand over to Michel for the conclusion after this intense afternoon. Thank you very much, Nathalie. It's time to conclude. You've seen during today's presentation our winning strategy for profitable, inclusive, and durable growth. It is based on the 4 pillars, pursue disciplined growth, including strategic investments, this will contribute to a 4%-6% per annum of access growth. We'll keep increasing operational excellence, improving our margin, EBITDA margin to 28%-30% by 2024. Third, we will invest wisely for a sustainable future, the cumulative cash flow, free cash flow expected during the period will be EUR 900 million over the next 3 years. Fourth, because everything is based on our people, we keep anchoring a strong entrepreneurial culture, we'll deliver earnings per share around EUR 3 per share by 2024, excluding PPA, our dividend per share will grow more than 10% per annum. Thank you very much for your attention. Let's reimagine glass for a sustainable future together. Now we'll take your questions. We have the first question for Romain from Paco. Could you please explain if the 9 plants that work 100% with zero emission includes also the melting process? How do you do it? Okay. Maybe I will re-clarify a little bit that point. Those nine plants are in fact having a specific contract to get green electricity. It's only the electrical part of the energy we consume in those plants, which is carbon-free. As a reminder, the electricity today in our plants represents between 15% and 20% of the overall energy we consume. A portion of it is used in the melting energy, a portion of it is used in the non-melting, but overall, this green or carbon-free power is only for electricity, so roughly 15%-20% of those plants. Thank you, Romain. Another question. How Fit for 55 could impact in volumes given the import tariff to glass from outside Europe? First of all, we don't have all the details around some of the elements of Fit for 55, and in particular, the Carbon Border Adjustment Mechanism, which if it's implemented and if it's implemented in a fair way, in fact should have limited impact on the import because that will allow us in Europe to play on a level ground when it comes to CO2 cost. Thank you. Last questions for you, Romain. What steps can you take to secure more cullet supply? I am considering that many players are trying to secure more cullet. Other than just paying more for cullet, can Verallia differentiate by vertical integration or similar here? In fact, as I explained in the presentation, and you've seen already some examples, there are two ways for us to continue to increase the cullet that we can use in our plant. The first one is to work with current cullet suppliers and to work on the long term, so through long-term agreements or joint venture as we have did in Germany with Remondis. That the first item. The second one, especially on the low cullet country, is that yes, we will start to work more on the collection, being actively and directly involved into the collection, in the working with people who are collecting, but also local administration to be able to do that. You've seen a first example in the presentation on Brazil by Quintin. It was the last question for Romain. Question for Olivier, what are you expecting from the competitive agreement and where are you today on that? The transformation plan is behind us and we had a majority of our employees agreeing to our competitiveness agreement. The heavy lifting is behind us, and today we are clearly focused on improving our industrial performance in order to improve our competitiveness and our financial performance. The goal for me, very simple, is that I want France to reach the level of other Verallia countries in Europe. That's what we are after. Thank you, Olivier. A question for Marco. Can you explain the competitive landscape and if there is any acquisition opportunity in Italy? The particularity of Italy is that it's very fragmented market. You have to keep in mind that is the only case in Europe where you have really 10 player, 10 glass producer. In any way, we have also to say that is also quite good growing market because from 2014 to 2019, till the COVID, it was a CAGR of 3.5%. It was bringing to a lack of glass, but that's still an issue anyway and is the reason because in the future landscape in the coming here, there are 3 new installation expected to be made by 3 different player in the plant. At the moment is also growing the import because import roughly is around 20% in the plant. The fact that everyone is looking to put capacity because the market is very dynamic, fragmented, but very dynamic, is also the answer to unfortunately the second point because we are looking around about possibility to make acquisition, but the situation is quite good for all the player because the market is good, we have to wait probably another time. We are looking around, but this is not the right moment to make acquisition in Italy. This is the reason why, Italian teams have proposed to invest in a brownfield project that will start in 2024. Since we cannot find decent acquisitions, we'll grow organically faster when this project will enable us to capture the growth of the market. Thank you. Paulo, can you give us more examples on what you are doing to promote glass towards end customers? Okay. As I have present, you have in the slide 64. What we do is through our glass national association in Portugal and in Spain, and with the help of FEVE, Friends of Glass, is to use the platform like YouTube, Instagram and TikTok and using influencer to engage end consumers to the qualities of glass. In the right side of the slide, for instance, you have a popular band that have made a song highlighting the qualities of the glass and using bottles as instruments. This is one of the things that we do in the region to promote the glass and to reach the end consumers. Thank you very much. The next questions will be for Northern and Eastern Europe, actually. Thank you. A question regarding returnable glass bottles. When a high volume returnable glass bottle system is put in place on a dedicated product, say for mineral water, for example, is Verallia selected as exclusive producer, or can customers source standardized products from different glass producers? If exclusive, how is the glass producers selected? Well, in fact, we have different models. It really depends on the customer, it depends on the situation, and we're flexible to the segment we need to serve. If you remember the slide on the returnable, there was 1 little picture about 2 bottles in the retro mode. This is typical of an example where we are the exclusive producer of a bottle that goes to several customer in the beer market. Okay. Then you go a little bit to the right of this slide, you find the four breweries that redesign a pool of bottle, and not only a pool, a family of bottle. In this case, we will be one of the supplier among others. What is important, or the key to success, is to be early in the process, in the cooperation, the collaboration with the customer in the design of these new articles. Thank you very much, Hugues. I have a question for Quintin, actually. Quintin, why is EBITDA margin in LATAM way above the rest of the group? Good question. That's right. Despite the local situation and specificities of our region, I believe the implementation of the strategy is done with a very disciplined manner. First of all, we have a very strong and dedicated team, supported by the global activities also. We are well-aligned with the market, working with local customers, but also with global customers with a huge intimacy to try to keep always a very positive spread. The last but not the least, our operations are achieving the level of excellence. First of all, working on quality, working on safety, improving the efficiency, the service rate. The last point, a very important one, is we are reducing our cash cost through the productivity action plan 3% year-on-year. Thank you, Quintin. I'm sorry, but I'm receiving other questions live. I have another question on Northern and Eastern Europe. What is achievable in Northern and Eastern Europe in terms of margin, given the less attractive mix, i.e., less wine, et cetera? Because, actually it's a question from Fraser, who was asking also if we could give color on the target margins per region implied by the guidance. It's another question. Okay. In fact, in Northern Europe, there is very interesting segment. It may not be driven always by the nicest designs that we see in other regions such as France, but there is also a differentiation on performance through the functions. Very industrial customer, they want very high performance, and they're very selective on the performance of their supplier. That's also a differentiation, and that's also a value driver. We also know that the diversity of segment is interesting. Wine is one. Sparkling, I was going to say sect, sorry. Sparkling is another segment. There is a lot of pockets of value in the region, and we are driving a strategy on each of the segments that we want to develop. Thanks, Hugues. Regarding the margin by region, I think, Michel, you can answer that one. We don't give specific targets by region. As you can see from the segments reporting, Northeast Europe is also a region that has probably a lot of potential for further improvements to close the gap with, for example, South and West Europe and the rest of the group. Most of the improvements will come, as Nathalie Delbreuve explained, one pillar will be the growth and very selective growth in the most value-added segments, as Hugues Denissel has just said. The second pillar will be a positive spread. Again, in this segment, especially in the countries where the currency can change a lot, like Ukraine or Russia, we always aim at providing a positive spread year on year. The third pillar, which is applicable to all divisions, is clearly the PAP. Here again, we have great opportunities in this region to improve the performance of our plants and to reduce our cash cost with the performance action plans. The strategy is not very different from the rest of the group. There's probably a bit more upside in this region than, of course, in Latin America, which is already the star, if you want, in our company in terms of performance on all matters. Well, thank you very much to Hugues, Dirk, and Quintin. I think now we will move on to the group and the financial questions for Michel and Nathalie. If I may start with the questions around pricing. When you're talking about 4%-6% annual growth, is management not concerned that it will have to give it back or to give back some of the large price increases needed in 2022? I.e., what gives you confidence that prices can be kept at that level? Well, we are not so much focusing on price. We are focusing on spread, which is, I think, very important. Spread is the difference between price increase and cost increase. Our goal, clearly explained by Natalie, is to every year achieve a positive spread. I remind you that this year, in many countries in Europe, the prices have been reduced, but we've been able to reduce our prices less than the deflation of cost that we've seen in Europe. Altogether, if you remember this year in the first semester when we announced and presented our results to you, we were talking about a flat price in average in Europe with some countries or some product segments, little increase, others little decrease, overall flat. What is important is not really the price increase or price decrease. What is important is the difference between pricing and cost. Going forward, we know very well that today is a really hot topic, if I can say so, in terms of energy cost inflation. We're going to have to go for very high price increases in the coming days, weeks, and months with our customers. If you look at the forward prices of electricity or gas, for example, you see that there is a huge hump next year in 2022, prices start to go down again in 2023. That means that, of course, if we have a decrease of prices of energy in 2023 and 2024, we will reduce our prices in order to give back to the customers the deflation of cost that we will see in that year. Ending up, of course, what we want and what we need to achieve is always end up with a positive spread. Price is, for us, less an issue than spread. What we want is in the 3 pillars that Nathalie has explained to you that will make our business model work and deliver the results that we've been delivering, we need to have a positive spread, whether the price is positive or price is negative, which means we decrease prices. Thank you, Michel. A question from Jamie. "Hi, Team Verallia, can you please break out pricing assumptions by region in this guidance? Thanks. Same thing. Basically, you know very well, it has not changed this year. We have basically 2 big regions. We have Europe, 90% of our sales, and we then separate from Latin America, which is 10% of our sales. Latin America, the prices are very specific to the countries. Countries like Argentina, which are in hyperinflation. We had 45% inflation last year in Argentina, and we increased our prices in Argentina more than 45% in order, again, to end up with a positive spread. Inflation is a bit less in Chile and in Brazil, but these countries, in any case, are used to negotiate prices several times a year as and when needed. Europe is a bit different. I remind you that in Europe, usually prices are fixed once a year, negotiated once a year, very often starting January 1st to December. We negotiate those prices based, of course, on the inflation that we see or that we measure at the time of the negotiation. This is why, for us, it's very important that when we enter a negotiation, which is starting now, basically in October. In October, we hedge most of the costs of the following year, especially energy costs. If we don't hedge raw material prices, we at least have long-term agreements which provide us some visibility on our cost base. This is the starting point for us to understand what kind of price increase we need to get in order to end up with a positive spread. We will not disclose country by country or segment by segment because this is, of course, a very sensitive topic. For sure, if you remember, in terms of price increase, we mentioned that at the end of July, that we were looking in 2022 to price increases, mid-single-digit increase. That was the end of July. You've seen the energy costs increasing a lot during summer. Beginning of September, a month ago, we were talking more high-single-digit. As of today, if I were to tell you what kind of price increase we need to get to end up with a positive spread, we are talking clearly about a double-digit price increase. It's going to be unprecedented, at least in the recent years or in the last 10 years. We've never seen such price increases, but this is the kind of price increase our salespeople will have to go and negotiate with our customers in order to end up with a positive spread. Thank you, Michel. I think you answered to most of the questions regarding pricing. Any guidance on 2022 EBITDA margin linked to the selling price increases that you will have to pass in this year? It's clear that we have, like the rest of the industry, a tough challenge to get our price increases go through the approval of our customers. For sure, it's going to be an interesting time in the coming weeks and months for our salespeople. We are, as we speak, preparing our budgets for next year. The assumption we are taking is that we end up with positive spread. Positive means just zero. We don't need a lot more than zero, but just zero. We will provide, once we've completed our budget process by the end of the year, we'll provide to all of you guidance for 2022 EBITDA margin and EBITDA, probably when we announce our full-year results at the end of February next year. Thank you, Michel. I think we will now go to questions regarding capacity. What about capacity addition of Sibelco in Belgium, U.K., and Şişecam in Hungary? Surely these volumes will impact the balance of supply. Yes and no. Certainly not in the short term because those two projects will probably not come to the market before the end of the 3 years horizon that we presented to you today. These additional capacities, if and when they come, are probably not going to impact the market before 2025. That's why it was not included in our capacity increase, knowing that in the meantime, the market keep growing. By 2025, the market will need more capacity anyway just to support its growth. At this point in time, it's not impacting our 2024 objectives. Thank you. Regarding operating performance, could you highlight the expected average capacity utilization of the group in 2021 versus 2016? Also, the average age of furnace now and in 2016. Well, capacity usage is a very, I would say, not commonly defined measure. Every company is defining their capacity use differently. It's not really, I think, very relevant to speak about it. One thing for sure, and I think I mentioned it at the time of the IPO 2 years ago, when I joined 4 years ago, we had some factories that could produce more if we were able to debottleneck some specific areas. We've been investing in those factories from 2017 to 2020 to debottleneck in a methodical way, those areas in order to, with very small investments, with very marginal investments, to increase our capacity. Not only we, of course, are improving our yield and our efficiency in our plants, which means that we are able to produce more with the same plants and the same capacity, but on the top of this, during the period 2016 to end of 2019, before the pandemic, we've also invested in debottlenecking some areas in many plants we had in Europe. Regarding the second question on the furnace, you know very well that we repair, we rebuild every year 6 to 7 furnaces. Which is a very regular rhythm or pace of reconstruction, which means that we have no pent-up investments to come. We have a regular and ongoing refurbishment program. That means that on average, the average lifespan of a furnace being 12 years, it means on average, I would say our 58 furnaces on average are 6 years or 6 and a half years old. Every year, you have one furnace which is 12 years old, then we destroy and rebuild. The same year, you have a new furnace with 1 year or less than 1 year aging. On average, we are very stable, and you've seen it in our, for example, CapEx expenditures. We've been investing always at 9.8% on average the last 5 years of our sales in our factories, just to, of course, keep our assets at the best state of the art, if you want, and modern state, and efficient state, most efficient state as possible. This has been ongoing, so there is no real change in the last few years, and we don't expect any change going forward. What will change is if you add new furnaces, the new furnaces will slightly reduce the average age. One furnace out of 58 will not change dramatically the average age. Thank you, Michel. Last question on prices, sorry, that just arrived, and it's Francesco, so I'm asking it. If you have a better cost base than the industry, do you expect lower price increase than peers to reach zero price gap, or you expect peers to have a negative gap? Well, that's a tough question. At the end of the day, your question is about aging, indirectly. The cost base, the cost structure of this industry is about the same for everyone. Of course, you have some slight labor cost differences between countries, okay? France being more expensive than, for example, Italy or Spain, the cost structure of the industry is pretty much the same everywhere. The aging that we have is not aimed at speculating. Some years we have a positive impact due to aging, some years we have a negative impact of aging. Last year was a negative impact of aging because we aged 2020 in October 29, before the pandemic, at much higher energy costs than what we saw last year. We are forgetting aging when we talk to our salespeople. Aging is nothing to do with salespeople, it's purely financial. Our salespeople have to justify every year their price increases or sometimes price decreases based on external indexes, external cost drivers that our customers can measure, can validate. In that case, we are aiming at passing the inflation that we see in the market. I will not comment about our competitors. I don't know what they will do and what is their strategy. For us, it's very clear, we are going to ask our customers to get the price increase that is basically a pass-through of our cost increase. At the same way, I repeat, this year, many customers had the price decrease because energy prices have decreased last year. Thank you, Michel. A question regarding share buyback. How much of cash will you spend on share buyback? Is there any limitations about the share you can purchase from Apollo? Can you buy more shares from Apollo in order to make their exit smoother? Regarding, first of all, Apollo shares, you've seen that 2 times this year, we participated to the ABB of Apollo by buying back 2 times shares from Apollo. This was, I think, very smart from 2 points of view. First of all, because it didn't impact the liquidity, it didn't reduce the liquidity of the market, we bought directly from Apollo. No impact on the liquidity, which I think is important. As you indicated in your question, it has also reduced the overhang, associated to this divestitures of Apollo shares. Going forward. Depending, of course, on the prices. We are not going to commit to anything today, because our share buyback policy will be opportunistic, very clearly. We have the cash. If we find at some point in time that there is an opportunity to create value for all shareholders by buying back shares, we will do it. Of course, if Apollo sells some blocks going forward, we will consider, as we did it this year, buying back some shares without having an impact again on the liquidity. We'll be very opportunistic in terms of share buyback policy. We have the means and resources to do so when it makes sense, and we will decide with the board when to do so. Regarding the amount of money that we are dedicating or we will dedicate to share buybacks, it will really depends on whether we have strategic projects, whether we make acquisitions, what the level of debt will be going forward. We don't want it to go too low. At the same time, again, we'll stay very flexible, agile and opportunistic when deciding about share buybacks. Thank you, Michel. Going back to hedging. How do you manage the energy costs? Which impact on the P&L for 2022 and beyond from inflation, and what are your hedged level? So Nathalie. Yeah. Yes. Nathalie, it's for you. It's for me. As I share with you, energy costs represent around 20% of our cost base. Page 87, you have the detail of our hedging policy, and it is a discipline policy. As Michel explained, we are not speculating. The target is to average the evolution and the peaks of the prices on the market and to give us visibility before we have to start price negotiations with our customers. Our hedging policy is with a three-year horizon. It means that we started hedging our energy needs for 2022 in 2019, and then steadily we increased up our hedging to reach 100% of 85% of our needs now in October. Again, I cannot share with you the details of this hedging. Thank you, Nathalie. Could you please explain the sensitivity of 2022 EBITDA margin as a function of natural gas prices? What happens to your guidance if gas remains elevated in 2022? I think we are talking about midterm guidance, yeah. Right. I think we are back to the comment on hedging that I just explained. I just explained that we today have ended up the hedging for 2022 as per our strict policy. Our midterm guidance is including this situation already. Thank you. Regarding EBITDA margin, any idea of the path of improvement towards your 28%-30% adjusted EBITDA margin target? Right. I think let's go back to the strategy and to our financial performance pillars that we explained. The first one being sustained volume growth in the market that will support our performance. The second one is a positive price cost mix spread, which Michel Giannuzzi explained lately also. The third one is very important, is our operational excellence. Performance action plan that is delivering around EUR 35 million per annum. That is already close to 1 point. Really this is the delivery of these 3 pillars that will help us reach this level of margin. Thanks, Nathalie. Now if we go to CapEx, have many questions on CapEx. Can you share more details on the 3 planned new furnaces, phasing of construction and ramp up location? How many additional volumes will they bring? Did you want to close down furnaces throughout this 2022, 2024 plan? Maybe we can stop there because I have others. Okay. Let's start with the capacity and impact on CapEx. We explained that we plan to have 3 furnaces opening in this guidance, until 2024. The first one we announced already earlier this year is the Jacutinga 2 plant in Brazil that is going to start producing end of 2022 and then an additional one that should start end of 2023 in Brazil as well and one in Italy for mid or second half of 2024. This is the additional capacity, and each of these furnaces should produce around 120,000 tons per annum. This will help us address the organic growth that we see on the market and so sustain our guidance on the sales. Thank you very much, Nathalie. Another question. Second part of the question. Sorry. The answer is no, we are not planning to shut down. Oh, sorry. Yes, excuse me. We are not planning to shut down any additional furnace. Any additional furnace. You know that the only area that could be concerned, potentially by not reconstructing furnace is France. At this stage, we have no reason to believe that the competitiveness plan that has been agreed with our employees in France will not be executed as per the commitment that we have taken and as per the commitment that our employees have taken. Therefore, we should rebuild our furnaces in France. The question, it's very clear we are not planning any furnace shutdown in the coming years. Thank you. Will any of the new furnaces be able to utilize new technology? Maybe I will take this one. In the roadmap that Romain Barral has presented to you, we have internal innovations that are very interesting. They are included in this plan, okay. They will help us achieve our 27.5% CO2 reductions as per the communication we made in January. When we talk about really breakthrough innovations like hydrogen, like carbon capture, like many other things that are still in the air right now, and in the process of being developed right now, we have not any of those included in this plan for the next few years. The reason is because the technology is not ready yet. If it happens, and we hope it will happen, and this is what gives us hope, that it will happen before 2030, and therefore, this is why we've increased our ambition for 2030, because we believe that in the second part of the decade, after 2025, we will have these new technologies available for us in order to accelerate the decarbonation of our company. The best example is the hybrid furnace that we are currently developing with a consortium of glass makers in Europe, which is the hybrid furnace of the future in Europe, which will aim at switching or swapping the ratio of gas and electricity from 80% gas, 20% electricity today, to 80% electricity, green electricity, 20% gas tomorrow. By doing so, we reduce by 50%, by half, the emissions of the furnace, the CO2 emissions of the furnace. This was not included in the first plan that we presented in January. It's now included, to some extent, beyond 2026 in our plan for the new ambition that we have, which is to be at 1.5 degrees Celsius temperature increase. Not more. Sorry. Thanks, Michel. A very related question. Are the new emission targets in place further CapEx? Again, beyond 2026, or beyond 2024, sorry. Because for the next few years, no, these are the things that we plan. These important CapEx, and especially when it's talking about new processes, new innovations, if you want, in the process, this is something you don't decide today for tomorrow. You have at least 2 or 3 years visibility on what you do. It will not impact the next 3 years. Thank you. No additional CapEx beyond the one we gave you as a guidance, which is basically around 10% of CapEx for the next three years. Around 10% of CapEx the next three years. All included, including the strategy CapEx, which means including the three furnaces that Nathalie has just mentioned. Thank you. If we move to CO2 emissions, in order to help us quantify the impact of rising CO2 prices, can you disclose the yearly expenses for CO2 contracts every year in EUR, or at least your net short position at group level? At what path your allocated CO2 contracts will decline in the coming years? Considering your CO2 savings trajectory, do you expect overall CO2 costs to grow in the future? Last question, sorry, which policy for CO2 quotes for Phase 4 and the cost for the company, such as provisions and stuff like that? All right. I'll try to answer everything, but if you see I miss a point, please come back to it, Alexandra. First, we have on CO2, and I explained as well, a hedging policy. I cannot give you, and I will not give you details on our CO2 amounts in EUR and CO2 hedging impact. I can just remind the hedging policy that is also very strict and exactly like for energy, no speculation. Hedging step by step with a 3-year horizon, in order to be hedged at around October or at the end of this year for 100% of the year to come, 75% for the year after, and 50% for the year, so the 3rd year. We are rolling that every year. What I can tell you is that we have approximately 500,000 tons CO2 deficit every year. As per today, we don't have actually the final definitive figure for this year deficit, as Europe is quite late in the process. Yes, it is, the way it works in Europe is that you take the benchmark and then the quota allocations are decreasing every year to challenge the sector, so around 1% per year. As we have shared, we are also working on decreasing significantly our CO2 emissions on a faster pace. We are anyway working also on the number of CO2 that we emit. Maybe to complement the answer. As you know, we are short today, and we have to buy today a bit less than 500,000 tons of CO2 quota on the market. As Nathalie said, it's been already anticipated. Going forward, even with the new Fit for 55, I would say expected impact on the CO2 quota and the tightening of the CO2 market, the ambition that we have taken to reduce by 46% our emissions by 2030 should put us in a position where we will not have to buy a lot more quota than what we are buying currently. It should be more or less within the same area. Probably a little bit better because depending on the timing of our savings implementation, we can be a little bit better or a little bit late. Altogether, it's not very different from the shortfall of about 500,000 Q of CO2 quota that we are today. Thank you, Michel. I have a question regarding PAP. Performance action plan. What are the key drivers of a 2% per annum decrease in production costs? That seems like a very aggressive target. Well, I will take this one because that's the same question I heard during the IPO two years ago. More or less day by day, two years ago. Right. At that time, we have been already 2 years in the company. I was showing the good trajectory of PAP reductions we had made in 2017, 2018, and it was part of 2019. The question was the same. Say, "Well, how are you going to do it in the next 3 years?" The answer is, I explained, go back to my presentation. It's not a one-off project. It's not a few million EUR projects. It's an ongoing methodology and an ongoing work of all the teams to go after the costs 2 times a year in very great details, to identify waste and losses, to define projects, to implement projects, and very fast, as soon as the project is finished and completed and we have the savings, we move to another project. I'm sorry to say that I've seen that for 20 years in the automotive, and it worked for many years. I'm not committing for 20 years, but certainly for the next few years. Okay. Thank you. Now regarding competition. In which region or market is there more risk that the competition authorities could step in because of the oligopolistic nature of the industry? Is the risk medium or low? Well, when we do our risk map, let's be clear that we report, and it's part of our annual report. The risk map, clearly, this is a risk that we have clearly in mind. This is a very competitive market. Even if in some regions the consolidation has led to few players, this industry is very strict at complying with the competitive laws. Certainly at Verallia, we've implemented and we are doing every year training to all our employees about those laws, like any other laws, by the way, like the other laws that we have to comply with. We take every possible measure to make sure that we obey by the law, and the fact that it's a concentrated market is making this topic even more, I would say, accurate or important for any player. We have this risk in mind. We are taking all possible measures to make this risk as little as possible. Thank you, Michel. This is the last question or set of questions regarding M&A. Could you discuss M&A ambitions, regions which the group could target without having concentration issues with the authorities? Would the group become more vertical, either into raw materials, closures, alternative substrates? Two questions. Regarding the geographies, of course, there are a few countries where when you only have three producers, it's hard to believe that you can go to two. Those countries, by definition, will not be the opportunities for further acquisitions. On the other side, you have many countries where you still have a lot of players and still opportunities, like Italy. Marco spoke about 10 players in Italy. In Central Europe, you have quite a few players still. We are very keen on, of course, studying any potential opportunity. Regarding the vertical integration, this is more a make or buy decision. Basically, if we are vertically integrated, either uphill or downhill, in other words, with our raw materials, we are already partially doing it with cullet because we have already integrated the cullet treatment activities for half of the cullet we use today is being treated in our own plants. We are already partially integrated upward with the cullet treatment plants. We don't see really opportunity to keep, I would say, a vertical integration upward, but it's really a make or buy decision. We don't know. Today, we don't see it's not obvious. Down the supply chain is the same. We are very business oriented. We are very pragmatic. We have no reason, if I can say so, on that as such. Another good example is what Marco presented to you. We are currently being integrated, or we are currently integrating some distribution activities in Italy. Because we believe we can better serve directly our customers with more added-value products and services by controlling some of the distribution, and therefore, we invest in the distribution. It's really depending on the countries and the business cases. We have no real firm commitment. The third question is diversification. So far, we have not seen any diversification. We are a glass producer. We provide services around glass, like decoration, like bottling activities. We have small bottling activities for very high-end wines in France. Not such a big activity, but it's a service that we render to our customers. We could expand these kind of services that are linked to our business. Going very far away from our business needs to make sense from a business point of view and also from a value creation point of view. Why not? If we have some good opportunities to do it, we'll look at them. As we speak today, we have nothing concrete to speak about. Okay. Thank you very much, Nathalie and Michel. I think I'm done with my questions. Thank you very much. Okay. Well, thank you very much, Alexandra. Thank you very much all of you for listening to our investors presentation today. I know it's been a long three hours presentation. Thank you for your supporting Verallia and following what we are doing. You clearly see that we have a very strong ambition in terms of implementing a winning strategy that is both profitable and inclusive. Last but not least, sustainability is really at the heart of everything we do. Today, for us, is an important day since we commit today on working towards 1.5 degrees C global warming target, which, of course, for us, is giving a lot of sense given our purpose, which is reimagining glass for a sustainable future. Thank you very much, all of you, and have a good day.