Thank you. Good morning, ladies and gentlemen.

Welcome to Ayvens Q2 2026 results conference call. As said, I'm hosting this call with Patrick Sommelet, our CFO.

First I will present the highlights of Q2, then Patrick will comment on our detailed financial results. We'll then take your questions.

Let's go directly to slide 5 on the highlights of the financial performance. Q2 2026 has been a solid quarter for Ayvens, with the continuation of prior-quarter trends, notably concerning the normalization of the gross UCS results.

We remained disciplined in executing our road map. We generated over the quarter €112 million of synergies, in line with the full-year guidance of €440 million.

In parallel, our focus on basing our profitability on robust margins and cost efficiency has helped us navigate this moving environment. First, margins stood at a strong level at 609 basis points of earning assets, the highest level since the creation of Ayvens.

This increase in margins has helped compensate for the normalization of the gross used car sales result, which has been on a similar trend since Q3 2025. In Q2 2026, the gross UCS stood at €326 per unit compared to €1,234 in Q2 2025 and €470 in Q1 2026.

In net UCS, the decrease was exacerbated by higher depreciation adjustments at -€50 million versus -€38 million in Q2 2025. This has translated into net UCS at -€62 per unit compared to €970 in Q2 2025.

Higher margins and lower costs resulted in reducing the underlying cost-income ratio to 50.3%, 7.4 percentage points below its Q2 2025 level. Bottom line, net income group share stood at €248 million, a decrease of 8.7% compared to Q2 last year.

On the back of these solid results, coupled with the capital build-up of the prior quarters, I'm pleased to announce the distribution of €700 million to our shareholders, which comes in addition to our distribution policy of a 50% payout ratio. This new exceptional distribution brings our CET1 ratio to 12.6%, in line with our cruising level, and illustrates our strong commitment towards value creation.

ROTE stood at 13.4% in Q2 2026, it was broadly stable year on year, supported by the exceptional distributions operating in Q2, goes to Q3 2025 and Q2 2026. Overall, this financial performance confirms that Ayvens is well positioned to reach its Power Up 2026 financial targets, and let's now turn to the next slide on our H1 2026 results.

Let me just highlight the key points for this first half of the year. First, in the backdrop of ongoing UCS results normalization and an uncertain geopolitical environment with the war in the Middle East, our profit before tax has been stable in H1 '26 compared to H1 2025.

Most of the decrease in the net UCS results was offset by the €100 million increase in margin and the €88 million decrease in total operating expenses. ROTE for H1 '26 was at 14.1%, supported by the decrease in the tangible equity at end of the semester due to the new distribution to shareholders.

Earning per share grew 8.9% compared to H1 2025. The increase was further enhanced by the cancellation of the shares bought back last year.

Let's now turn to slide 7 on fleet and earning assets. Fleet numbers continued to trend lower during the quarter.

Funded fleet decreased by 82,000 units compared to Q2 '25, 19,000 units versus Q1 2026. We've continued to reduce our fleet in the non-profitable channels, notably in the UK.

Nevertheless, order intake is showing good momentum, which is expected to materialize in the fleet in the coming quarters. Earning assets stood at €52.6 billion, broadly flat compared to same quarter last year and Q1 '26.

On the right-hand side, deliveries per powertrain for passenger cars and light commercial vehicles showed notably continued increase in BEV penetration at 31% compared to 27% one year earlier and 29% in Q1 '26, in line with market evolution. Conversely, ICE penetration was down 8 points at 26% versus 34% one year ago.

I now hand over to Patrick to present you the details of the Q2 2026 financial results.

Thank you, Philippe, and good morning, ladies and gentlemen. Let me start with the evolution of our gross operating income on the left-hand side.

At €754 million, it is down 11.8% compared to Q2 '25, with higher margins partially compensating for lower net used car sales results. Margins grew by 7% from €712 million in Q2 '25 to 700--to €762 million this quarter.

This reflects a continued improvement in the leasing margin and in the service margin to a lesser extent. Net UCS results decreased to -€8 million compared to +€143 million in Q2 '25, on which I will comment in a few minutes.

Moving to the next slide on margins. Total margins stood at €762 million, which is up €50 million versus Q2 '25.

This includes -€38 million of non-recurring items consisting of hyperinflation in Turkey, as the gap between CPI and the auto price index in the country has remained elevated. Turning to underlying margins, they stood at €800 million versus €731 million last year.

This is the highest level since the creation of Ayvens in million euros. In basis points, they were at 609 basis points this quarter versus 550 in Q2 '25, continuing the increasing trend since 4Q '25.

This improvement is driven by our continued strategic actions to focus on profitability and asset-risk management. Underlying margin in euros increased by €69 million, or 69 million, or 9.5% versus Q2 '25 despite the slight decrease in earning assets.

Looking at the margin breakdown, leasing margin continues to be strong, reflecting higher leasing revenues and lower interest charge across all funding sources. Services margin also increased, though--all by to a lower extent compared to Q2 '25.

The increase in service margins results is the result of the ramp-up in synergies and higher margins on repair, maintenance, and tires across the group. If I move to the next slide on UCS, we see that you--the net UCS results are driven by negative prospective depreciation.

I will start with the total UCS results, whose evolution is represented on the right-hand side, as you can see, the normalization trend of our gross UCS results continued in Q2 2026. The net UCS results shown as the full line on the graph decreased to -€8 million compared to positive €143 million in Q2 2025.

This is the result of a significant decrease in the gross UCS results from €181 million in Q2 '25 to €42 this quarter. Since the start of the conflict in the Middle East and the related surge in oil prices, we observed diverging trends across powertrains.

Total cost of ownership advantage of BEV versus ICE is strengthening, which is driving used cars demand upward for BEV. As a result, our results on BEV is improving sharply month after month and is becoming less negative.

At the same time, demand on ICE, which remains predominant in our mix of cars sold, is softening, and so or--so is our gross UCS results. This mix effect is hence driving our gross results per unit downward at €326 per unit compared--to be compared with €470 in Q1 and €1,234 in Q2 '25.

Turning now to depreciation adjustment, they amounted to -€50 million versus -€38 in Q2 '25. Last year, in H2 '25, we changed our price scenario to account for a deterioration in BEV prices, notably in the UK market.

Since, we have been booking each quarter new negative prospective depreciation accordingly. In Q2 2026, in light of the current moving environment, we have also slightly adjusted downward our forward-looking price scenario, resulting in -€41 million new prospective depreciation versus -€21 recorded in Q--in Q1 '26.

Other moving parts are detailed on slide 17 in the appendix. Let's turn to the next page on operating expenses.

Total operating expenses are trending down in--in continuation of prior quarters, showing a decrease of €37 million compared to Q2 '25. Cost to achieve amounted to €7 million compared to €26 in Q2 '25.

As indicated at the beginning of the year, we project CTA to be below €30 million for full-year '26. Excluding CTA, underlying costs stood at €403 million in Q2 2026, a decrease of 4.3% or €18 million year on year.

This improvement reflects our continued cost discipline and increased cost synergies. Combined with higher margins, these lower operating expenses resulted in strong positive jaws with the underlying cost-income--the cost-income ratio at 50.3%, an improvement of 7.3 percentage points compared to Q2 '25.

For H1 '26, our cost-income stood at 52.1%, on track with our cost-income target guidance for around 52 for the full-year '26. Let's move to the next page for the reminder of the rest of the income statement, first with cost of risk, which stood at 12 basis points, a lower level compared to previous quarter.

It was driven by a reversal of a provision on specific credit file and lower credit risk across countries. Profit before tax is down 12% versus Q2 '25 at €340 million as a result of the decrease in the net UCS results, which was partially offset by our higher margins and lower operating expenses.

It also includes a €11 million gain on the sale of our 49% equity interest in LeasePlan Emirates that was completed last June. Net income group share stood at €248 million, a decrease of 8.7% versus Q2 '25.

Return on tangible equity stood at 13.4% for the quarter. H1 '26 return on tangible equity is higher at 14.1% as it don't take into consideration the level of tangible equity at the end of March '26.

Please now turn to the next slide on RWA and capital. RWA stood at €53.2 billion, an increase of €0.6 billion compared to Q1 '26.

The increase in credit RWA mainly reflects both higher volumes of delivered vehicles awaiting contract commencement and the aging of the running fleet resulting from lower fleet numbers, both of which have a heavier RWA weighting. The graph on the right-hand side details the 86 basis points of CET1 capital that Ayvens has generated between--between on H1 '26.

This capital build-up results from, first, a strong organic capital generation of 69 basis points on the first quarter--on the first half of '26, reflecting our good level of profitability; second, and as you can see, the credit-risk RWA optimization communicated in Q1 '26 generated a 44 basis point increase; and finally, the credit-risk RWA increase this quarter, which I just mentioned, is representing an impact of -37 basis points. On that basis, the board of directors authorized a total distribution of €700 million representing 137 basis points of CET1 ratio, bringing--bringing it down to 12.6%, closer to our target.

Now Philippe will conclude the presentation with the next slide. Yeah.

Thank you, Patrick. Summary, we are on track to achieve our financial targets for the year.

We are now ready to move on to our next phase of development. As indicated last February, we'll hold the Capital Market Day on the 21st of September.

It will be held in London in Canary Wharf, and I look forward to meeting you there and presenting our strategic and financial road map for the years to come. This concludes our presentation.

Thank you for listening. We are now ready to take your questions.

Hello, gentlemen, and congratulations for the very good results. Two questions for me to start with.

The first one on the margins above 600 basis. Is it something that we could call a new norm, and was there any kind of one-off that were a bit boosting it?

First question. The second question is on the cost reduction.

Could you give us a bit more information or where did you find let's say the pockets of reduction? You mentioned in the previous call that synergies were a bit over, now it's more the general cost that you needed to adjust.

Do you see still headroom to improve there? Thank you very much.

Thank you, Geoffroy, for your two questions. On the margins, I think we should have in mind that what is important for the company is to base our profitability not on UCS, but to base the profitability of the company on margins and OPEX reduction.

Margin can vary, as you can see, between quarters, but it's important to have robust margins. There is continuous work in terms of selection of channels, customers for the leasing margin, but also continuous work on the service margin to work on the cost.

It's important, because in the service margin, you need to have in mind that you got many times more costs in the service margin than in the OPEX. That's a real point of attention, and it's all the more important that in the context of electrification, if we want to keep our margin at a good level, we need to work hard on these costs that are included in the service margin.

Can be some variations quarter on quarters, but to your question, there was no special one-off in Q2, and we continue with our policy to drive these margin to be robust. On the cost reduction, I think so we still have significant synergies I was mentioning at the beginning of the call.

On the quarter, the synergies are at €111--€112 million, which is absolutely consistent with the €440 million that we're going to deliver for 2026. I think what is important for the company is to work on all components and to drive the culture that management in each country is delivering value when it brings solutions to decrease costs, which is maybe a culture that is a bit different from the past.

We're in an industry in which in the 2010 decade, I would say what was important was to grow very fast the top line and to grow the OPEX a bit less than the top line, and we've moved in an industry in which there will be less growth and that what we see globally for this, and in which the focus on cost is higher. To be more specific, we try to push harder on the support functions.

In the improvement, you've got significant reduction of cost in IT, in HR, in finance, in the support functions more than in the operational functions. That is something that we will come back on during the CMD in September.

Thank you very much.

Yes, good morning, gentlemen. Thanks for taking my question.

I have two. The first one is on the prospective depreciation on the running fleet that you booked in the second quarter of 2026.

My understanding is that most of that is related to the UK fleet, my question is how prudent were you in the fleet reval exercise on that fleet, and should we see some carryover of that going forward? My second question is that so during 2022 and 2023, you had more contract extensions, which translates into less cars sold in '26 and likely 2027.

Would you have any ballpark assumption in terms of how many cars are you going to sell in the next couple of years due to that? Thank you.

Thank you for the two questions. On the first one, you're right to say that there is an impact of the UK on the PDs as part of the effect, and that's related to the PDs that we took last year and that continues to have an impact this year.

The second part is we've maintained our global scenario of price for the coming years, but we've made it slightly more conservative on all energies on the back of the external macroeconomics and the very volatile environment. The scenario is very consistent with what we had before, slightly more conservative.

These are the two reasons for the PDs that we see on Q2 2026. On the used car sales volume, I think your comment is probably due to your question that you've seen that in Q2 our sales volume on UCS are a bit lower compared to what it was in the previous quarters, and it's related to what you've mentioned, and I think this quarterly volume is quite representative of what we should have in the coming quarters, because it's true that four years ago, the number of cars put on the road were lower than the years before.

Thank you very much.

Hi, thank you for taking my questions. Actually, I would have a question on volumes and then on capital returns.

I would like to ask on the volumes if you could tell us a bit about the segments where you're actually seeing growth, perhaps by geography and by customer segmentation. Then on capital return, two things.

Number one, are you still committed to 50% of full-year EPS paid in dividend in Q4 and announced in Q4? Then, still on capital returns, today you're giving us exceptional capital returns to bring back your CET1 closer to 12%, but you were at 13.9% in the prior quarter, and in Q3 2025, you gave us also €700 million after CET1 being at 13.5%.

I just wanted to know how long shareholders should wait or expect to wait in the future for you to build excess capital and then to distribute to shareholders. Thank you.

Okay. Thank you, Nicolas, for these two questions.

On the first one, the geographies in which we see commercial activity that is more favorable are mainly the south part of Europe, mainly Spain and Italy, in which order intake has rebounded more significantly compared to the other countries versus last year, which is both an effect of the market and both an effect that, if you take Spain, for example, one year ago, we were in the migration phase, and we had some internal issues that were not making the development of the business very favorable. It's both a market-driven rebound on orders and a question related more specifically to Ayvens.

On your questions on segments or type of customers, the big IKA, international key accounts, are not a segment that is going to grow a lot in the coming years. It's more on the smaller-size fleet that we will find growth, but we will come back to that during the CMD in September.

As to your question on capital return, the cruising level that we've indicated for CET1 is 12.5%. That's what we've indicated in the last quarters, and that's what we feel comfortable.

Our payout ratio is a 50%, and for the rest, I think please allow me to refer to the next CMD to explain what we are going to do in the future.

Thank you.

Okay. Thank you.

Thank for your attention and your questions. As always, our investor relations team is ready to answer any further questions you might have, do not hesitate to contact them.

Again, thank you. Goodbye.