Hello, good morning. I'm Philippe Renauld.

Welcome all of you for the 2025 annual results presentation. We, Angel Benguigui and myself, will be presenting the 2025 Econocom results today stand around a strategic update, 2025 financial performance, outlook for the forthcoming '26 and years, and a Q&A sessions.

Before leaving the floor to Angel, our CEO, we have a small videos around the achievement of 2025.

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Because the unit of life is a heartbeat and the unit of technology is a bit, and we set out to keep them united because technology without people is only noise. Yet in our hands, it becomes true music for the senses: lived, unique, unrepeatable, soulful, and unforgettable.

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Thank you. Now leaving the floor to Angel Benguigui, our CEO, for the strategic update.

Thank you, Philippe. Thank you to be here with us today.

You had our press release, but we will try to tell you about the main points, in our opinion, of 2025 and for the next years. 2025 was very rich, intense year for Econocom.

I will try to tell you the main achievements, in our opinion, of the year. We keep on going with our strategic plan, transforming the profile model of the company and working more and more around our four strategic verticals: Workplace Solution, Audiovisual Solution, Infrastructure, Networks and Security Solution, and Financing Solution.

We keep on going with growth: 4.3%, of which 2.7% organic is quite correct, in our opinion. It's not exactly what we said, because it's true that first half of the year, we had 6.6%, and we thought that it would be on the second half of the year the same environment, but it was not the same environment.

It was much more tough. We lost in Q3 some trend of growing, in October, November also, but December was a very good month in terms of growth and in terms of profitability.

At the end, we are at 4.3%. We created a new vertical around the audiovisual solutions that we think are integration around this AV solutions in Europe, in our opinion, is a market with a big potential.

With the acquisitions we made around that, we are the number one in Europe with more than €300 million revenue and 750 people working on that, and with the subsidiaries in all the main countries: France, Spain, Germany, the Netherlands, Belgium, UK, Ireland, Italy, and so on. Then, if we go to the next slide, I think that the organic growth focus is the main point of our strategic plan in Econocom.

It was not so easy to push for organic growth, because we were for many years used to acquire many companies. In this plan, organic growth is the main focus, and we kept on going with organic growth, improving and strengthening our sales force.

We increased in 88 sales and agents in '24 and '25 in net. Remember the attrition in the sales force is quite big, mainly in sales.

We increased in 53 agents, and the rest in sales. We will be keep on going with that.

This is what will support our organic growth. We are very focused on profitability.

Econocom was for many years very focused on the revenue, and when I read your comments, I always see that revenue is very important, but, in my opinion, profitability is more important that the revenue. We are trying to push the mindset of profitability in the group, going to value-added integration solutions in the main verticals we cover, and using technology for improving our efficiency and to improve the way we serve our clients.

We signed a partnership with Palantir in the artificial intelligence, and then we are investing in artificial intelligence, and we will keep on going with that because we think that for the next years is mandatory. In the next slide, we keep on shaping the organization for the transformation, more synergies, more collaboration, more alignment, more monitoring of the business, of the performance, of the sales, and with a solid Comex then is consistent and aligned.

We keep on recruiting talents, sales, agents, and managers. Also, of course, and I want to make a point on that, we made a big transformation of the central support functions of the group in 2025.

I think that we improved a lot the quality of all the central support functions on legal, on HR, on talent, on IT, on finance, and we all also onboarded very good new talents, managers, in these functions. Then now, we will go to the figures, and I will let the floor to Philippe.

Thank you, Angel. Thank you very much.

Moving on the 2025 fiscal year results, in terms of revenue, as mentioned by Angel, we had a growth of 4.3% in total, including 2.7% of organic growth. In 2025, we benefited from January of the consolidation of the revenue of bb net, the company we acquired in the refurbishment space in Germany for circa €20 million.

For the audiovisual deals which were acquired in July and August, they contributed for circa €30, 3-0, million of revenue. Throughout the years, have you been able to observe it throughout our quarterly financial communication, we had slower dynamic in the second half of the year despite some encouraging signal in the very end of the year in December.

In terms of geography, the growth was mainly driven by the Southern Europe countries, namely Spain and Italy, as well as strong dynamics in Germany. In terms of profitability, we had a stable 4% operational margin in the context of strong reorganization and transformation of the group, as mentioned by Angel, with the shaping of a new vertical in the audiovisual space as well as certain number of reinforcements from the frontline with the increase of the sales force and agents as well as improvement of the overall organization, setting the foundation for future growth.

In the leasing business, we had a total growth of 4.7%, including 3.1% organic. As the refurbishment business is in the leasing operation as it is the very end of the cycle of the product with this recycling.

In terms of margin, we have strong improvement of the margin, raising to 4 5.3%, benefiting from strong operational improvement and operational leverage thanks to the dynamic of the revenue. In the product and solution business, we returned to positive development of revenue.

As we had some negative momentum in the first half of the year, and we were able to recoup growth with 2.9% organic and 5.3% total. It is in this segment that the audiovisual businesses acquired were accounted for.

In terms of operational margin, we had slight erosions due to the impact of the market. The market was quite challenging with a competitive tense in a certain number of countries, slowdown in France, as you may know, due to uncertainty.

Nevertheless, the business was able to deliver a grow margin of €34 million in 2025. Finally, on the service businesses, the growth is limited to 1.1% with a total revenue of €526 million and stable operational margin due to the number and volume of contract which were renewed during the 2025 year.

We had slight erosion, and we have good hope to restore margin on the long run of those long-term revenues and long-term contract benefiting from G-curve. In total, looking at the full P&L, we had a growth trajectory underpinned by our strategy with a 4.7% development, percent growth, operational margin growing to €118 million, operating profit impacted by continued exceptional in conjunction of the transformation of the group.

It's fair to say that we had a certain number of people that came in and came out of the group as well as certain number of elements which needed to be written off. A strong growth of the net profit, as you can see, it improved by nearly 50%, moving from €37 million up to €53 million.

In terms of net profit, as we had in the first semester the impact of write-off on the discontinued operation of Saaswedo of €10 million that we had to complement by an additional €27 million in the second semester, which were finally complemented by the losses on Saaswedo for an additional €10 million. We are quite good hope to be in a position to de-invest this operation, which is the last remaining software edition businesses within the group and the last remaining non-core business within the group in the forthcoming weeks or months.

In total, the net profit of the group for 2025 is standing at €6.4 million. Following those operations, the group was able to deliver quite a positive cash flows with €142 million of cash flows, benefiting from the operational cash flows as well as improvement of the working capital requirement by €86 million, which is a combination of slight increase in factoring as well as structural improvement of the working capital requirement.

In terms of M&A, we invested for the future of the group with the acquisition of bb net and the audiovisual deals for a net amount of €41 million. The losses as well as the reduction of cash flows of Saaswedo impacted negatively our cash flow statement, hence making that we stand in total at a limited leverage of €36 million at the end of the year.

Looking at the structure of our leverage, as of December 31st, 2025, we had the benefit of a significant treasury of more than €500 million, some short-term debt, namely commercial papers for €10 million, bonds, the 2022 Schuldschein as well as the 2025 Schuldschein for a total of €369 million, and other corporate financing for 174. In total, our net financial debt stand at €36 million, benefiting from factoring at €318 million as of December '25, to be compared with 263 as of December '24.

In terms of ESG achievement, as ESG is very important, both for the company in light of its family roots as well as the commitment we had toward all our stakeholder, our clients, our people, the environment, our teams. We had significant development toward our clients with a significant increase of the hardware product under maintenance thanks to the acquisition of bb net as well as organic development.

We approved our SBTi targets with the SBTi environment, and now we are rating at 76 out of 100 in terms of EcoVadis rating compared to 74 last year. We were able to reduce our gender pay gap and increase the number of disabled people working within our organization.

Now, I'm leaving the floor to Angel for the outlooks.

Okay. On the next slide, as main takeaways for 2025, we can say that we keep on going with quite solid organic growth thanks to the strengthening of the sales force and sales and agents.

We keep on going with our strategic plan going to solutions around our four main verticals, and we made possible net debt reduction at the end of the year. Our main objectives for 2026 will be to keep on going with organic growth, we don't want to depend on external growth because acquisitions are not so easy.

Prices are challenging, and because we want to be prudent from the debt point of view. Very focused on organic growth.

We will keep on going with the group transformation, and when we say transformation is around our four verticals, the offering around our four verticals, the synergies, the cross-selling, the alignment in strategy between all the countries. The third, we will be focusing on cash flow generation.

Cash flow generation will be our obsession for 2026. In terms of guidance, the only thing that I can tell you is that because of these reasons, we have to change from the quantity point of view the main points of our strategic plan in terms of figures.

We keep on thinking that our strategic plan from the qualitative point of view is very strong, very good, and we will keep on going with that. It will be the base for the transformation of the group, very focused and improving the operational efficiency and our profitability.

In terms of revenue, we prefer to be prudent because the market is not good. The market in distribution, you know that is very challenging.

It was challenging in 2025. Last months of '25 were better, but this year we are seeing that all the prices are going up strongly.

There are many uncertainties in terms of the market of the distribution. In terms of services, as you all know, there is a challenge about improving the investments in artificial intelligence in order to be able to deliver the services to our clients in a more efficient way and to be competitive with the main competitors in the market.

We focus on growth between 2% and 3% for '26, for '27, and for '28. Now, we are at your disposal for any question you may have.

A question about your target for 2% to 3% organic growth. Is that organic or including acquisitions?

Including acquisitions, but really we don't bet on many acquisitions. It will be very tactical, medium-sized companies, and we don't foresee really many acquisitions for '26, and we'll see for '27.

We count on the organic. When we say 2%, 3%, it's more on the organic, but globally we can say that 2%, 3% is our target for global and total growth, but it will be mainly organic because we don't look for acquisitions to be done.

You've stressed that you want to keep a strong balance sheet to maintain full strategic flexibility. I'm a bit puzzled because, on the one hand, you indicate that you'll have, well, a low, but positive, organic revenue growth, and then your margin should go up.

You will not spend a lot of money on acquisitions, if I hear you. Why is it so important to have such a strong balance sheet?

What kind of strategic flexibility are you referring to then?

I think that we were very focused on growth, and now we want to be focused on profitability. Personally, since I became CEO of the company, I will try to focus on profitability more than growth in terms of revenue.

If we can be with a €3 billion, around €3 billion company, more diversified, because we are more and more diversified. France now is just 42% of the business of the group, while three years ago it was 65%, diversified in the main countries of Europe, diversified in four verticals, and with organic growth, correct organic growth, I would like that the company could be more efficient in terms of profitability.

We will be focusing on cash flow generation and profitability. We put in place already a plan for reducing expenses, what we call internally smart savings, because we will keep on going with all the investments on the sales side.

We will be keep on going with investments in artificial intelligence, on Salesforce, on good managers, but we will try to reduce expenses on a smart way. We will intensify the training of the sales.

We will intensify the analysis of the performance of all the sales force of the group, more than 500 people, in order to improve our operational efficiency and to be more profitable. Now, we are at 4%.

Two years ago, we were at 4.3%. Of course, the revenue was lower, okay?

Last year, we were at 4%, but we want to become at 4 4.1% and 4.3% for '27, '28. We will be focusing on profitability improvement.

Of course, when we will be able to make some good acquisitions, we will do it, and it would be more than that. We are not telling 2%, 3% thinking that we will be doing that with acquisitions.

It will be mainly organic. We focus on profitability.

That is clear. My final question is about the impact of rising component prices, because you hear lots of stories about rising memory prices and other costs.

Does that help your leasing business in the sense that customers are willing to use their equipment for a longer time, and also your refurbishment business where you maybe be able to refurbish things and resell them to new customers?

Our refurbishment business, you know that we have two quite good subsidiaries in France and in Germany, are part of what we called vertical of financing solutions. Why?

Because leasing nowadays is more and more thanks to CSR guidelines related to this refurbishment. We are developing offers around all the life cycle of the equipments, meaning that many clients ask us for leasing with the commitment of keeping at the end of the contracts a certain percentage of these equipments to be refurbished in our subsidiaries of refurbishment and then to be re-leased.

This is why refurbishment is important and part of the financing solutions. I'm not sure if I answered completely your question.

Maybe there was something more?

I was wondering if the higher cost of buying new equipment is helping you to extend the life of existing equipment and the lease portfolio and the refurbishment. If these are a better position for that than compared to...

I don't know. What I'm seeing is that I know very few people that knows what will happen.

Many big providers, many big companies, they are telling you, 'When Windows 11 will come, we will explode in terms of selling of PCs.' We made for Econocom the analysis, and we are in Windows with Microsoft a lot for our own use, and we are almost 9,000 people, and we had to change 500 PCs.

Now, last year, some big providers were telling, 'No, H2 would be very good.' It was not the case.

Now, they are telling us prices will go up because all the chips will go to infrastructure, artificial intelligence, and so on. There will not be chips for the PCs, and then the prices will go up.

The impact will be good or not? Theoretically, the impact would have to be good on leasing, theoretically.

Theoretically, it would have to be bad on distribution, but I really don't know. I can't tell.

I will not be the one who will be thinking that I know a lot more than many others. I don't know, really.

What I know is as we are a very diversified company. If it's good on distribution, it will be not so good on TMF, it's okay.

If it's good for TMF and for distribution, it's okay. This is reason why we choose the profile model that is what it is, is very diversified in terms of solutions and diversified in terms of countries, knowing that all countries where we work are very solid countries.

That's clear. Thank you.

Thank you.

Yes, sorry, I was on mute. Good morning, everyone, and thanks for taking my question.

First question is on the free cash flow for 2026. Any kind of soft guidance you could give us on the working capital evolution?

You did quite some improvement last year. You said slight increase in factoring.

If you could comment a little bit on your expectation there. You also say that free cash flow would be your obsession for 2026.

Then second point, coming back on a bit on the earlier question. I saw you halving the dividend on the premium repurchase.

I don't remember the technical name. Why is that?

Because you're not doing much M&A, you say, you're talking about strategic flexibility. Why is it so important to further improve the free cash flow?

That I completely understand. Also why was it needed to cut the dividend?

Thank you.

Maybe, Philippe, you can answer the first part, I will answer the second.

Okay. Thank you, Angel.

On the first part, as I mentioned, in the objective of Econocom for '26 and the following year is really to improve the cash flow generation of the operation. It's come back to the first point mentioned by Angel, which is focus on margin.

The company for long term has been focused on revenue development, revenue growth. Now, we want to move the company toward a profit culture, and this profit is, at the end of the day, demonstrated by cash flow generation.

This is very important. This cash flow generation come from the margin.

It come from the various element after the margin, namely the CapEx, namely the working capital requirement improvement. As we are using working capital requirement to do our own business throughout the years, sometime in the distribution business, sometime in the leasing business, whereby we first make the acquisition of the asset before being refinanced so that we can serve in a more promptly manner our clients.

We want to improve this throughout the years and be in a position to monitor in a better manner the cash flow and improve the generation of cash of the business throughout the years. The objective is to reduce the factor because it has some impact also on the financial performance and operational performance of the group.

We want to retain full flexibility to seize whatever opportunity can be seized by the company in the forthcoming years.

On the second part, the dividend, why we decided to reduce the dividend, okay, I think that you noticed that our net result is not very good this year, because we were forced to make a big provision impairment on the last subsidiary that we had in discontinued activities, Saaswedo, software-as-a-service platform that we bought many years ago and that was not well managed and that we had two cyberattacks last year, and that we returned, and we are selling this company. We signed an exclusivity contract for selling that.

Then, even if it's non-cash issue and it's just a write-off, we think that it's prudent to cut the dividend related last year. Last year, it was 10 cents, this year is 5 cents.

It goes also in the sense of preserve the cash flow for the year.

Thanks. Could you describe a bit the payout policy or the dividend policy that you have?

I would have thought it was more related to the net debt and the adjusted earnings than the net profit, because as you say yourself, it's non-cash.

That the debt at the end of the year is not the average debt of the year. Because if you look at the financial expenses of the year and you make a calculation, a simple calculation, you will see the average debt is higher.

We are focused on improving the cash flow and reducing the average debt all over the year. We are prudent.

I think that Jean-Louis Bouchard, directly and indirectly, has 89 million euro shares. After the board yesterday, the company has 162 million shares.

There are 55% controlled directly by Jean-Louis Bouchard, and 45% in the market. We think that is a good management for the company and for the shareholders to be prudent and on reducing the dividends for the shareholders.

That's all.

Okay. Thanks very much.

Yes, okay. Thank you.

Simon Vlaminck, Degroof Petercam. Just one of my questions was answered on the dividend, actually.

Do you seem to indicate that this one is going to be a one-off and next year we go back then to a normal dividend payout? Because the shareholders have not been rewarded that much, I have the feeling, especially if you see the stock going down.

Just can you confirm if we see a normal year next year without write-downs, there's not a lot to write down anymore, I have the feeling, that the dividend will come back?

I can't give you a guideline on the dividends that will be paid next year. That is a decision between the hands of the board of the company, and it will depend on the results of the year.

I can't tell you about what will happen next year in terms of dividends.

Then on Saaswedo, it was quite a big write-off, of course, but you seem to be close in selling or divesting that activity. Can you give an indication on what the book value is today still in the books?

Indeed, as mentioned, since the beginning of 2025, we're working hard to dispose this company, which is the last non-core activity within the Econocom group. It is a Software-as-a-Service platform for e-procurement.

There been a certain number of discussion. We are now in exclusive discussion.

The book value of this company is right now standing at €10 million following the various write-down of the goodwills, and we have good hope to conclude the discussion on those basis with the party we are discussing with.

Sorry, you said €10 million positive?

Yeah. Yeah.

Very good. Thank you.

Then maybe just to understand, how are you looking at the share price development these days in terms of multiples that you see? I see that you are also kind of putting the acquisitions policy a bit on hold and going to be very selective.

Has that something to do also with where your stock is trading these days versus where the sector is trading? Do you intend to do something about it in the sense of being more open, doing more roadshows, and be more visible for the investor community?

Really, I have to tell you that I don't understand how the value of the stock is evolving. Maybe, probably, because you are specialists, you will know better than me.

I see millions of shares in the market, 45% of free float, nobody selling and nobody is buying. I can't tell you what will happen with that.

I know that the markets are not very interested in European small caps. Maybe the market now is looking for the big American technology companies and companies that are involved in defense and so on, and I can't tell you about the evolution of the share.

I don't know, really, I don't know.

Yeah. A bit of frustration, I feel.

Is a share buyback, because we've seen a lot of share buybacks in 2024 and the years before. Last year, it was already a bit muted.

Your balance sheet, again, is quite strong. Acquisitions seem to be a little bit less of a priority.

Can this come back? How are you looking at that part?

We want to preserve the cash flow, but of course if the stock is going down, we will come back. If not, we will stay as it is.

There is no special objective on that. Because also you can see there is no volume in the transactions.

Even if you want to buy, you will not be having a lot of shares.

Yep, okay. Depends a little bit on if there's anybody in the market.

I kind of agree if you would be buying it, it would be very helpful for the stock price, I guess, and a sign of confidence and on believing in the future.

Because, yeah,

there's no acquisition that you could do at these low prices, I guess.

We bought a lot, huh? We already bought a lot, huh?

Exactly. No, no, no, I know you bought back 25% of the company in the last 5 years, I think, which is a good thing, and the market is not rewarding.

I think the highest price that was paid in the last 3 years was close to €4. We're now at 1.5 or close to it.

Just curious how you looked at it. It seems to be that you seem to be waiting that it still can go lower.

I just see what you say. You were at 2.20 or 2.30 or 2.10, and now you are coming to 1.90.

This is what I see. I don't know more than you about.

Thank you.

Just to tell you, thank you very much for your interest, for being sharing this time with us, and see you next time. Thank you very much.

Thank you very much.