Half Year 2026 Tessenderlo Group NV Earnings Call

August 27, 2026

Speaker #1: Hello, and, welcome everyone to our 2025 annual results webinar. We will start today with a presentation from our CEO, Luke Tuck, and our CFO, Miguel De Potter.

Speaker #1: After that, we will give the sum opportunity to some of our analysts to ask live questions, and after that we have some time for questions that are in our Q&A.

Speaker #1: So if you have any questions, feel free to put them in the Q&A chat box. Thank you, and with this, I hand over to Luke.

Speaker #2: Good morning, good afternoon, and, welcome everybody. to our annual results reporting on the year 2025. Thank you for tuning in. Boy, I must say, you know, it's been a rocky ride lately.

Speaker #2: You know, sometimes I've— I started working when I was 18, so that's a little while ago, and so the way we have today within Europe, you know, sometimes I feel even that we're in South America, where I had the crisis and the '80s and the '90s, one after the other.

Speaker #2: Now we're into our third crisis in Europe. We had, in 2020, we had COVID, then we had 2022 Ukraine, and now we have Iran.

Speaker #2: Each time, quite disruptive, to businesses causing a lot of uncomfort. Having said that, we are always with our feet on the ground, you know, so we don't panic lightly.

Speaker #2: And in light of that, I feel that, as a CEO of our company, that we will be able also to navigate this now Middle East storm.

Speaker #2: Of course, it is affecting us in our company, on different fields, and on different ways. Sometimes it has a positive effect, sometimes it has a negative effect.

Bjorn Theijs: results. We will start with a presentation from our CEO, Luc Tack, and our CFO, Miguel de Potter. After that, we will give some analysts the chance to ask a live question, but for everyone else, if you have a question, please put it in the Q&A box. At the end of the session, we will also try to answer as many questions as possible in the Q&A. With that, I hand over to Luc.

Speaker #1: Results, we will start with a presentation from our CEO, Luke Duck, and our CFO, Miguel Dupotter. After that, we will give some analysts the chance to ask a live question, but for everyone else, if you have a question, please put it in the Q&A box and at the end of the session we will also try to answer as many questions as possible in the Q&A.

Speaker #2: Every effect that we have, we have no idea how long it will last, and what it will be. And therefore, I'm sure some of you people ask questions, and we understand you ask questions.

Speaker #1: So with that, I hand over to Luke.

Speaker #2: But you will also understand that we don't have the crystal ball on how long the Suez Canal is going to be blocked or how long energy is going to be limited, you know, all of that.

Speaker #2: Good morning, good afternoon. Welcome, and thank you all for joining us on this call for our H1 results. As you can imagine, it has been a busy first half-year, and also a turbulent first half-year with all the things happening in the vote, and with respect to the Strait of Hormuz, etc.

Luc Tack: Good morning. Good afternoon. Welcome, and thank you all for joining us on this call on our H1 results. As you can imagine, it has been a busy H1 and also a turbulent H1 with all things happening in the world in respect of the Strait of Hormuz, et cetera. But I must say, I am extremely pleased with how the troops worked, how we, as a company, performed, managing the different hurdles that came on the path during the first six months. I will start by first giving you an overview of some of the key events of this morning. This will then be followed by Miguel, who will highlight you everything on the financials and the financial performance of the company.

Speaker #2: We know as much as you know, which means nothing. But having said that, you know, as a company, what do we focus on then?

Speaker #2: We focus on what we can control. So there's no point in us focusing on stuff we do not control. We must focus on what we can control.

Speaker #2: But I must say I'm extremely pleased with how the troops worked, how we as a company performed, and how we managed the different hurdles that came up during the first six months.

Speaker #2: Yesterday we had a lengthy board meeting, and we debated a lot of all of this, and at the end of the day, you know, and that will also be the guidance that you will be getting from Miguel, etc.

Speaker #2: So, I will start by first giving you an overview of some of the key events of this morning. This will then be followed by Miguel, who will highlight everything on the financials and the financial performance of the company.

Speaker #2: We find that last year, okay, we improved our EBITDA with 22 million, which is nice. Would we like to do that again this year?

Speaker #2: Of course. But today we cannot guide you towards that. We are guiding you more results for this year in line with last year, and then we will guide you further through the year as we see more clarity and as you will see more clarity and as everybody will see more clarity.

Speaker #2: So, first, let me start by repeating that the joint venture with Tessenderlo Group and Darling Ingredients entered into a definitive agreement in December 2025. This partnership aims to create a top-tier collagen-based...

Luc Tack: First, let me start by repeating that the joint venture with the Tessenderlo Group and Darling Ingredients entered into a definitive agreement in December 2025. This partnership aims to create a top-tier collagen-based health, wellness, and nutrition products company poised to capitalize on global collagen markets. In the JV, Tessenderlo will have 15%, and Darling will have the majority of 85%. Of course, we, as Tessenderlo, will be present in the board, and we will further contribute to the success of our gelatin business. The JV will combine Darling Ingredients collagen and gelatin with the branded Rousselot and our PB Leiner activities. We will also bring together our know-how, which will also help us to develop further new products going forward. The transaction is expected to close after having received the pending regulatories.

Speaker #2: But again, you know, in this turbulent world, our company is fit to sail these storms, and to come out of it. Anyway, that's the feeling I have around this.

Speaker #2: Health, wellness, and nutrition products company, poised to capitalize on global collagen markets. And in the joint venture, Tessenderlo will have 15%, and Darling will have the majority with 85%.

Speaker #2: So let me kick off by telling you a little bit what we have been doing, and which have been the key events, key events.

Speaker #2: Of course, we at Tessenderlo will be present on the board, and we will further contribute to the success of our gelatin business. So, the JV will combine Darling Ingredients collagen and gelatin with our branded Rousselot and our PB liner activities.

Speaker #2: So to send a little group assigning JV to combine our collagen and gelatin business with Darling. The picture that you see here was the signature in Houston of the binding agreement.

Speaker #2: And so, of course, now we are going through the regulatory stuff and so we are working with authorities. We are answering questions and we will hope we hope that transaction will close in 2026.

Speaker #2: We will also bring together our know-how, which will also help us to further develop new products going forward. The transaction is expected to close after receiving the pending regulatory approvals. As you might not be surprised, some countries are quicker than others, and so we are still waiting for some approvals.

Speaker #2: But again, that is not in our power. We need to satisfy every authority and give them the time to answer. Of course, I'm sure you can appreciate that since this is a global business, there are many, many countries involved, and some of them have different time horizons.

Luc Tack: As you might not be surprised, some countries are quicker than others, and we are still awaiting some approvals. We cannot tell you as of today when exactly we will accept them because we will get them, that is beyond our control. But we are making progress. Then we had Akiolis, the biomass cogeneration facility to reduce our carbon footprint. The inauguration was in April 2026. This cogeneration plant will be powered by animal by-products. This is truly an innovate installation and marks a major step in our decarbonization strategy, thus reducing fossil fuel energy consumption and producing renewable, call it green energy. We have started up the plant. As always, there are some bugs to be worked out, but we are expecting to scale up further in Q4 of the year as we go forward.

Speaker #2: We cannot tell you as of today when exactly we will accept them, because when we get them is beyond our control, but we are making progress.

Speaker #2: So then we had Accuolis, the biomass cogeneration facility to reduce our carbon footprint. So the inauguration was in April 2026. So this cogeneration plant will be powered by animal byproducts.

Speaker #1: To send a little very open to a new plant in Ohio, I was in the US up to 7 days ago, I have also been traveling.

Speaker #1: I was in Phoenix, I was in Houston, I was at different places. And I'm pleased to say that today we get a market confirmation that the defiance plant is a good investment.

Speaker #2: This is truly an innovative installation and marks a major step in our decarbonization strategy, thus reducing fossil fuel energy consumption and producing renewable, so-called green energy.

Speaker #1: Customers are complimenting us on making that investment, and are also happy that the product is now locally available. I think you should never underestimate the logistics that come into our business.

Speaker #2: So we have started at the plant. As always, there are some bugs to be worked out, but we are expecting to scale up further in the fourth quarter of the year as we go forward.

Speaker #1: And by having a plant, within the market, where people can come and get a product is definitely further supporting our development. Then this is a minor company, a smaller company that we acquired, which is Oesterwalder AG.

Speaker #2: So then we had Mr. Carl Vink, who designed from the board, most of you probably know Mr. Carl Vink, he has really served our board so many years and we have really a sincere gratitude for his dedication and service and value that he gave to the board.

Luc Tack: Then, we had Mr. Karel Vinck, who resigned from the board. Most of you probably know Mr. Karel Vinck. He has really served our board so many years, and we have a sincere gratitude for his dedication and service and value that he gave to the board. In the meantime, we have the pleasure of announcing you or telling you that Mrs. Béatrice Bruey has been co-opted to Mr. Vinck's mandate, and we welcome her as a non-executive director to our board for the remainder of the mandate of Mr. Vinck. Then, going forward, we have the acquisition of the Cinis Fertilizer plant in Sweden. The acquisition was done in May 2026. This is a SOP production plant. We bought it out of the bankruptcy of Cinis Fertilizer, which really was never able to produce on-spec product all the time. We are now working on the plant.

Speaker #1: So what is Oesterwalder doing? Oesterwalder is making powder presses, it's a, you see the technology, because in our company Melotte we do 3D printing, and there you build up a piece layer by layer out of powder.

Speaker #2: So in the meantime, we have the pleasure of announcing to you, or telling you, that Beatrice Bruet has been co-opted to Mr. Vink's mandate, and we welcome her as a non-executive director to our board.

Speaker #1: Here the process is completely the opposite. You take power, powder, I'm sorry, and you put a high press on it, and because of very complicated molds you can get a gear out of it for a car or whatever.

Speaker #2: For the remainder of the mandate of Mr. Vink. Then, going forward, we have the acquisition of the Sinis fertilizer plant in Sweden. The acquisition was completed in May 2026.

Speaker #1: It has been a company in difficulties. It has not been an easy journey so far, and again, I'm not going to bore you too much about it, but we bought a Swiss company, and 6 weeks later we were told that we had, I forget now how much, 40 or 50%, 39% of duties shipping to the US, our biggest market.

Speaker #2: This is an SOP production plant. We bought it out of the bankruptcy of Sinis Fertilizers, which really was never able to produce on-spec product all the time.

Speaker #1: So this was again the perfect storm, because of this like I said, you know, sometimes this makes me feel like when I was in the 80s and the 90s, when I was a lot younger and looking nicer than today.

Speaker #2: We are now working on the plant. We are making changes to it, and we expect to ramp up the plant in Q1 2027.

Luc Tack: We are making changes to it, and we expect to ramp up the plant in Q1 of 2027. This is really a very environmentally friendly way to make mineral fertilizers for sustainable agriculture. This will be sulfate of potash that we will be producing, which is markets that we know since we also produce this in Ham, in Belgium. Then we were able to acquire PB Leiner, the 40% minority stake from our Brazilian joint venture partners. Following this acquisition, we now own 100% of this subsidiary. Of course, this subsidiary will then go into the contemplated JV with Darling Ingredients. Then after the balance sheet, we were not sitting still there. We kept going, and we reached an agreement with the board of FMC to do a capital increase of $400 million into FMC Corporation. FMC Corporation is a really innovator technology company.

Speaker #1: But it's still gives me the same sentiment. So but anyhow, that's behind us now, and so we are learning to know more about the company, where the strengths and the weaknesses are, and that will be a continuing story.

Speaker #2: This is really a very environmentally friendly way to make mineral fertilizers for sustainable agriculture. So this will be sources of potassium that we will be producing which is markets that we know since we also produce this in hum, here in Belgium.

Speaker #1: Then I'm very happy to announce you the acquisition of the Matam labels in the United States and Canada. From Eastman, I must tell you, the Matam has been the origin of our crop protection business by first acquisition, which must be 20 years now.

Speaker #2: Then we were able to acquire PB Liner, the 40% minority stake from our Brazilian joint venture partners. So sorry, so following this acquisition, we now own 100% of this subsidiary. Of course, this subsidiary will then go into the contemplated JV with Darling Ingredients.

Speaker #1: And so we are further strengthening our position there. In the United States and so we are very pleased that we were able to do this acquisition.

Speaker #1: So indeed we did a share repurchase program, also a lot of you guys suggested us to do that, and we believe that these share purchase program is contributing to the share price for our investors on the long term, as if you buy shares at the end of the day, future profits will be divided by less shares.

Speaker #2: So then after the balance sheet, we were not sitting still—we kept going. And so, we reached an agreement with the board of FMC to do a capital increase of $400 million into FMC Corporation.

Speaker #1: So at the end it should support earnings per share going forward. So events after the balance, after balance date, so indeed here we have the acquisition of the Sinis plant.

Speaker #2: So FMC Corporation is a really innovative technology company. They are very strong in AI, and I'm sure when you immediately think "AI," you think about artificial intelligence. Well, I mean AI as in active ingredients.

Speaker #1: So to give you a little bit background on Sinis, Sinis is a company that was launched on the stock exchange in Stockholm. And that was planned to have a very bright future, by taking off sodium sulfate from the multibillion dollar or euro investment of Northvolt in Sweden.

Luc Tack: They are very strong in AI, and I am sure you immediately think AI, you think about artificial intelligence. Well, I mean AI, I mean active ingredients. We are doing this investment because we believe that FMC has a lot of technology, has a lot of molecules in development, but also, moreover, has four molecules which will come to the market in the coming years. I think it is important that we understand that both Crop Protection and fertilizers, the businesses that we are in, contribute for 50% of all agriculture production worldwide. Therefore, it is important to further create new products. FMC can do so, and that is why we are very glad that we can contribute a capital increase, which will further help the company to further develop new molecules. For our company, this is a long-term cornerstone investment.

Speaker #2: And we are doing this investment because we believe that FMC has a lot of technology has a lot of molecules in development but also moreover has four molecules which will come to the market in which will come to the market in the coming years.

Speaker #1: Now some of you probably followed that event there, and you know how that company got into problems. And then consequently also Sinis got into problems.

Speaker #2: I think it is important that we understand that both crop protection and fertilizers, the businesses that we are in, contribute to 50% of all agricultural production worldwide.

Speaker #1: So this is enhancing our potassium which is a core business. I would like to remind everybody that potassium is the second nutrient. So the first nutrient is nitrogen, the second is potassium, and the third one is phosphates.

Speaker #2: And therefore it is important to further create new products FMC can do so and that's why we are very glad that we can contribute a capital increase which will further help the company to further develop new molecules.

Speaker #1: So in potassium, we specialize ourselves, we do not play with the big dogs play, we are more always in specialty. And so that is what we produce that is SOP.

Speaker #2: For our company, this is a long-term cornerstone investment. It's part of our corporate strategy, and we see this as a generational investment for the long term.

Luc Tack: It is a part of our corporate strategy, and we see this as a generational investment for the long term. I will give you one more example why we think also FMC is a good investment. Within Europe, since 2019, we have lost 16 molecules. At the end of the day, the farmers need to farm, and at the end, they end up with an empty toolkit. They need tools to farm. For instance, FMC received approval for Isoflex, and Isoflex is a new herbicide which has been approved by Europe some months ago. This herbicide is important. Why do we like molecules like that and other ones which are in development? When you are having crops and you have herbicides, the herbicides compete for the nutrients in the ground against the crops.

Speaker #1: Most of the potassium in the world used is MOP. And MOP is put straight on the field, and then that's mainly used in areas where there is a lot of rain.

Speaker #2: And I'll give you one more example why we think also FMC is a good investment. Within Europe we have had over since 2019 we have lost 16 molecules.

Speaker #1: And as the rain drops out, the chlorides evaporate and then the potassium goes to the plant. What is SOP? An SOP we put, we pull the chlorides, the chlorides out of the potassium, and so the SOP is meant for dry areas.

Speaker #2: At the end of the day, the farmers need to farm, and at the end, they end up with an empty toolkit. They need tools to farm.

Speaker #2: And, for instance, FMC received approval for Isoflex, and Isoflex is a new herbicide which has been approved by Europe some months ago. And this herbicide is important.

Speaker #1: Because if in dry areas people would be using would be using MOP, at the end of the day the soil would become like concrete because of the chlorides that would remain on top of the soil.

Speaker #2: And why do we like molecules like that, and other ones which are in development? When you are having crops and you have herbicides, the herbicides compete for the nutrients in the ground against the crops.

Speaker #1: So our SOP is a perfect solution for Mediterranean areas, for drip irrigations, etc. Having said that, of course, in the potassium world, SOP is probably maximum 10% of the volumes used worldwide where 90% of the application is MOP.

Speaker #2: In the case of Isoflex, Isoflex is a herbicide which is really meant for grass crops. Grass crops, I'll give you an example: wheat. All grain and most grain crops are—a lot of, not most, but a lot of grain crops are grass crops, for instance, like wheat.

Luc Tack: In the case of Isoflex is a herbicide which is really meant for grass crops. I will give you an example. Wheat, all grain, most grain crops, not most, but a lot of grain crops are grass crops. For instance, like wheat. Well, by applying in the late season, after the season Isoflex, you are really avoiding the growth of wheat so that the grain crop can capture all the nurture and that the yield of the grain crop is so much higher. This is really what European farmers, big farmers in UK, where the product has already been approved and where it is already put on the fields. France, Germany, all these huge, because Europe is a large producer in wheat, will cause opportunity. I am just giving this as one example. It is one of many where we believe in that agriculture, the future of agriculture is technology.

Speaker #1: We have been producing SOP for a very long time, and we are producing SOP in ham on our Mannheim furnaces, our Mannheim furnaces, are working on the basis of sulfur.

Speaker #1: High temperature, and then we get the chlorides out, which then we further valorize partially in our group to produce ferrochloride, partially shipping to our neighbor plant Vainova.

Speaker #2: Well, by applying in the late season, after the season Isoflex, you are really avoiding the growth of wheat, so that the grain crop can capture all the nurture, and the yield of the grain crop is so much higher—so much higher. And this is really what European farmers, big farmers in the UK, where the product has already been approved and where it is already put on the fields, are seeing.

Speaker #1: So this is one way of doing it. Sinis is a different process, Sinis is a process which is the glyceride process, which is a minority technique in the SOP world.

Speaker #2: But France, Germany, all these huge—because Europe is a large producer in wheat—will cause opportunity. I'm just giving this as one example. It's one of many where we believe that in agriculture, the future of agriculture is technology. The future of agriculture also is, like we do with our fertilizers, to grow more with less.

Speaker #1: But where we believe we can create opportunity. In producing more green, because the SOP from the Sinis project will be produced on lower temperature, with green energy, which is available abundant in Sweden.

Luc Tack: The future of agriculture also is like we do with our fertilizers to grow more with less. We have the intention to close the Vilvoorde plant. In July 2026, we announced the intention to close the plant. That intention to close the plant came after an 8-month process where we tried to sell the plant because we wanted the people to have jobs for the future. That is why we tried very hard to find buyers for the plant. I must also say the people within the plant helped us very much to show the plant at their best for buyers. At the end of the day, we did not find a buyer and nobody thought that the plant had a viable future and could be viable going forward.

Luc Tack: The future of agriculture also is like we do with our fertilizers to grow more with less. We have the intention to close the Vilvoorde plant. In July 2026, we announced the intention to close the plant. That intention to close the plant came after an eight-month process where we tried to sell the plant because we wanted the people to have jobs for the future. That is why we tried very hard to find buyers for the plant. I must also say the people within the plant helped us very much to show the plant at their best for buyers. At the end of the day, we did not find a buyer and nobody thought that the plant had a viable future and could be viable going forward.

Speaker #1: And as a byproduct we will have done also salts available for the market for the mainly de-icing market, etc. This is a new venture for our company, we have been following Sinis for years, and we also had been looking, we had been requested to participate and capital increases and what have you last year, etc.

Speaker #2: Then we had the intention to close the facility in Ville for the plant. So, on July 26, we announced the intention to close the plant. That intention to close the plant came after an eight-month process where we tried to sell the plant.

Speaker #1: We thought that was not a good idea that we was that it was better to wait. I think we did smartly, because now we are 100% owner of the plant at a good price, and can now develop this company.

Speaker #2: Because we wanted the people to have jobs for the future, that's why we tried very hard to find buyers for the plant.

Speaker #2: I must also say the people within the plant helped us very much to show the plant at its best for buyers. But at the end of the day, we did not find a buyer, and nobody thought that the plant had a viable future or could be viable going forward.

Speaker #1: Then in strengthening our board, you know, as you know, there we are also we have changed course the last two years, where we have decided that we must bring more industry knowledge into our board.

Speaker #2: So that's then we decided to we went into consultation then with the employee representatives and then we reached a formal agreement to close the plant on August 21st 2026.

Luc Tack: We went into consultation with the employee representatives, and we reached a formal agreement to close the plant on 21 August 2026. The execution of the restructuring process has now started and will be finalized by H1 2027, and we will have production running, if I recall well, till end of October. This restructuring impact is estimated at approximately EUR 31 million, which will be recognized in the EBIT adjusted items in H2 2026. Furthermore, the group is now looking at the future and looking how we can bring this 24-hectare real estate site close to Brussels and Vilvoorde to the market. We are considering different options on how to go to market with this site going forward, and hopefully be able to do a transaction next year. We have T-Power.

Speaker #1: Before, of course, we have always had a very strong board with very good strong board members, but nowadays we are choosing more with people with in our board with in-depth industry knowledge.

Speaker #2: So, the execution of the restructuring process has now started and will be finalized by H1 2027, and we will have production running, if I recall well, until the end of October.

Speaker #1: e. So the first gentleman that came to our board was Sebastian Pons, who is a through agro specialist, so now we are bringing in Madame Beatrice Bruet, who has a very long had career with Gea Group at DAX 40 company, in Germany, and so she's joining us as a non-executive director, and she's been co-opted in the vacancy of Mr. who decided to retire last year.

Speaker #2: So this restructuring impact is estimated at approximately €31 million, which will be recognized in EBIT adjusted items in H2 2026. Furthermore, the group is now looking at the future and considering how we can bring this 24-hectare real estate site close to Brussels and in Ville to the market. We are now considering different options on how to go to market with this site going forward and hopefully will be able to do a transaction next year.

Speaker #1: So therefore there also we are further strengthening our board in the respect of industry knowledge. So this is then taking us to 2025 where I will hand it over to Miguel now to explain you the results 2025.

Speaker #2: Thank you very much, Luc, and good afternoon, good morning, everyone on the call. Happy to be here and to present you our results for 2025.

Speaker #2: So let's go first to our key figures. Our revenues climbed by 4.4%, 7 billion, going forward. In 2025, 10 or EBITDA grew as well by 8.5% to 288 million compared to last year.

Speaker #2: So then we have T-Power. T-Power entered into a six-month tolling agreement. For the 425-megawatt power plant, I must say to you that T-Power has proven again to be a very important asset in the Belgian landscape.

Luc Tack: T-Power entered into a 6-month tolling agreement for the 425-megawatt power plant. I must say to you that T-Power has proven again to be a very important asset in the Belgium landscape, especially this summer. The plant has been running a lot to help provide power for the country, to keep the air conditionings going, to keep things going. Again, we have proven that CCGT plants like T-Power have an important role to play in the future for energy security. Of course, with this transit, what we call a transit tolling agreement of 6 months, this is giving us more time to assess other various available options for the long-term utilization of the T-Power plant as a safe and reliable plant. We are currently assessing that and developing and looking at different options going forward.

Luc Tack: T-Power entered into a six-month tolling agreement for the 425MW power plant. I must say to you that T-Power has proven again to be a very important asset in the Belgium landscape, especially this summer. The plant has been running a lot to help provide power for the country, to keep the air conditionings going, to keep things going. Again, we have proven that CCGT plants like T-Power have an important role to play in the future for energy security. Of course, with this transit, what we call a transit tolling agreement of six months, this is giving us more time to assess other various available options for the long-term utilization of the T-Power plant as a safe and reliable plant. We are currently assessing that and developing and looking at different options going forward.

Speaker #2: You will see that we have a heavy loss for the period of 80 million. Most of it is related to what we call non-really cash items, and impairments that we have taken through the course of the year, and especially in the second half of the year.

Speaker #2: Especially this summer, the plant has been running a lot to help provide power for the country—to keep the air conditionings going, to keep things going.

Speaker #2: So again, we have proven that CGT plants like T-Power have an important role to play in the future for energy security. Of course, with this transit—what we call a "transit tolling agreement"—of six months, this is giving us more time to assess other various available options for the long-term utilization of the T-Power plant.

Speaker #2: But I will come back into that in a moment. Our capex amounted to 135 million, about half of which was maintenance capex and half of which was growth capex.

Speaker #2: We are basically finishing a big wave of growth capex with new plans. You have heard Luc saying that Defiance was fully operational since August.

Speaker #2: And we continue on that trend. The capex guidance for 2026 is in the same range as 2025, all by it could be a little lower than 2025.

Speaker #2: As a safe and reliable part. So, we are currently assessing that and developing and looking at different options going forward. So now, I will pass it to Miguel, who will take us through the H to the financial numbers.

Speaker #2: The cash flows generating from operating activities was still strong, at 225 million, for the year. So if we exclude EVIX differences, the growth in EBITDA and this is for us the prime measurement of our financial strength is about 10%, 11%.

Luc Tack: I will pass it to Miguel, who will take us through to the financial numbers.

Speaker #1: Thank you, Luke, and good morning or good afternoon, everyone, wherever you're located. We're here in Brussels in our office, and I have the pleasure of guiding you through our first half figures.

Miguel de Potter: Thank you, Luc, and good morning, good afternoon, everyone, wherever you are located. We are here in Brussels in our office, and I have the pleasure of guiding you through our H1 figures. Our H1 figures, as you might have read already in the press release this morning, we are revenues that are just short of EUR 1.5 billion and an adjusted EBITDA of just near EUR 177 million. That is an EBITDA margin of close to 12% for the H1 of the year, which is higher than the H1 we had last year. The profit for the period for the first 6 months is nearly EUR 66 million, which is much higher than the negative loss we had for the same period last year. But that negative loss was mainly impacted by non-cash foreign exchange translation for intercompany loans that we had, which was revised slightly positively this year.

Miguel de Potter: Thank you, Luc, and good morning, good afternoon, everyone, wherever you are located. We are here in Brussels in our office, and I have the pleasure of guiding you through our H1 figures. Our H1 figures, as you might have read already in the press release this morning, we are revenues that are just short of EUR 1.5 billion and an adjusted EBITDA of just near EUR 177 million. That is an EBITDA margin of close to 12% for the H1 of the year, which is higher than the H1 we had last year. The profit for the period for the first six months is nearly EUR 66 million, which is much higher than the negative loss we had for the same period last year. But that negative loss was mainly impacted by non-cash foreign exchange translation for intercompany loans that we had, which was revised slightly positively this year.

Speaker #1: Our first-half figures, as you might have read already in the press release this morning, are revenues that are just short of €1.5 billion and an adjusted EBITDA of just near €177 million. That's an EBITDA margin of close to 12% for the first half of the year.

Speaker #2: Going forward. The group revenue per segment in terms of the distribution is relatively stable when you compare 2025 to 2024, our agro division is definitely still the strongest division of the group, and also the most profitable for 2025.

Speaker #1: Which is higher than the first half we had last year. The profit for the period for the first six months is nearly €66 million, which is much higher than the negative loss we had for the same period last year. But that negative loss was mainly impacted by non-cash foreign exchange translation for intercompany loans that we had, which was revised slightly positively this year.

Speaker #2: All the other entities remain relatively similar. When we go into the group EBITDA per segment, excuse me, we see that agro has growth grown its EBITDA for the year, to 117, 118 million.

Speaker #2: That in biovalorization we had a growth as well, but it's maybe a tale of two stories between PV liner and Akiolis, I'll come back to that.

Speaker #2: Unfortunately, industrial solutions was not able to materialize any growth. We've had very challenging times in the construction market, especially in Europe and in France in particular, which is definitely difficult for the growth.

Speaker #1: Our capex for the first half of the year amounts to €43.7 million. That’s lower than last year. It also has to do with some timing effects and postponements, or permitting that we are still waiting to receive for several projects that will be ongoing.

Miguel de Potter: Our CapEx for the H1 of the year amounts to EUR 43.7 million. That is lower than last year. It has also to do with some timing effects and performance or permitting that we are still waiting to receive from several projects that will be ongoing. We expect that this CapEx will be higher in the H2 of the year. The cash flow from operating activities is above EUR 100 million, EUR 103.8 million, and our net financial debt, thanks to some acquisitions that Luc already mentioned, has increased in the H1 of the year. If we go to the revenues per segment, you will see that the balance of the revenues is still mainly very similar to what we had last year with Agro, the largest contributor of all segments, followed by Industrial Solutions and Bio-valorizations.

Speaker #2: And machine and technologies in the first half of the years, you remember that peak canal had a very strong first half of the year, that is translated into these figures.

Speaker #1: We expect that this capex will be higher in the second half of the year. The cash flow from operating activities is above €100 million—at €103.8 million—and our net financial debt, thanks to some acquisitions that Luke already mentioned, has increased in the first half of the year.

Speaker #2: For T-Power, we have a full year of revenues of RWE under the tolling agreement. So when we go into our agro segment, more in detail, and I repeat, our agro segments, these are our curly brands, so Senderlo Curly International for the international business and Inc. for the American business, and we have as well Violo, which is our organic fertilizers.

Speaker #1: If we go to the revenues per segment, you will see that the balance of the revenues is still mainly very similar to what we had last year, with Agro the largest contributor of our segment, followed closely by Industrial Solutions and Biovalorizations.

Speaker #2: Agro segment has a very strong second half of the year, as you can see, even without if you take off the the one-offs like the impact of tiger soil, which has been contributing to the figures for the first time this year, second half revenues growth of 13 or nearly 14% on the top line, and adjusted EBITDA, as I mentioned, of just short of 118 million, which is a double digit margin.

Speaker #1: Machines and Technologies has had a more difficult first half of the year, and I will come back to this. T-Power, with its revenues guaranteed from the tolling agreement, was very stable.

Miguel de Potter: Machines and Technologies has had a more difficult H1 of the year, and I will come back to this. T-Power, with its revenues guaranteed from the tolling agreement, was very stable. When you look at the adjusted EBITDA for segments, you will see that nearly every segment apart from Machines and Technology, i.e. the Picanol Group, has grown in terms of EBITDA and margin in the H1 of the year to, I already mentioned, EUR 176.8 million. If we go segment per segment, the first segment, the Agro segment, which has known a forced increase in EBITDA of 17.3% if you exclude the foreign exchange effect. Obviously, we are selling a lot in US dollars and also in other currencies. That always has an impact in our results one way or the other.

Speaker #1: When you look at the adjusted EBITDA per segment, you will see that nearly every segment, apart from Machines and Technology—that is, the P&L group—has grown in terms of EBITDA and margins in the first half of the year.

Speaker #2: As we like to see in the agro segment. We had to take also some impairments in the agro segment, one impairment was related to some inventory of crop protection products that we have in the US.

Speaker #1: Two, I already mentioned €176.8 million. So, if we go segment by segment, the first segment—the agro segment—which has shown a strong increase in EBITDA of 17.3%. If you exclude the foreign exchange effects—obviously, we are selling a lot in US dollars and also in other currencies—that always has an impact on our results one way or the other.

Speaker #2: Our second segment, biovalorization segment, is we have two companies there, PB Liner, the gelatin and collagen business, as well as Akiolis, which is more our rendering business in Europe.

Speaker #2: You see here actually a tale of two stories. First of all, the rendering has been more positive contributing to the biovalorization segment this year, than the gelatin and the collagen.

Speaker #1: But we end up the year the first half of the year with an EBITDA of 75 million that's an EBITDA margin of 13%. We have seen in our agro division so we have the brand names crop nutrition Tessenderlo Curly International Crop Protection and Violo we have seen higher sales volume across the board and also higher sales price which are actually a result of higher raw material prices that we were luckily enough convincing to pass on through our customers.

Miguel de Potter: We end the H1 of the year with an EBITDA of EUR 75 million. That is an EBITDA margin of 13%. We have seen in our Agro division, so we have the brand names Crop Nutrition, Tessenderlo Kerley International, Crop Protection, and Violleau. We have seen higher sales volume across the board and also higher sales price, which are actually a result of higher raw material prices that we were lucky enough convincing to pass on to our customers. The market circumstances have been better for us, and you have to know and to understand that the Cinis plant that Luc was mentioned, that we acquire in the H1 of this year in Sweden to produce sulfate of potash, has not been contributing to those results yet.

Speaker #2: The gelatin and the collagen within PB Liner has gone through restructuring, we closed our plant in the UK earlier in the year, which was doing bone gelatin, so there you see definitely a drop in revenues with less products being sold.

Speaker #2: We also had an incident in our plant in Argentina, our collagen plant in Argentina, whereby we had to stop production for quite some weeks, and the plant is still not 100% operational, but only I would say 75% operational right now.

Speaker #1: The market circumstances have been better for us, and you have to know and understand that the finished plant that Luke mentioned, which we acquired in the first half of this year in Sweden to produce sulfate of potash, has not been contributing to those results yet. We expect this plant to ramp up in the first quarter of 2027, because when we acquired the plant, as Luke mentioned, the plant was not functional.

Speaker #2: So not fully contributing to the results as we would expect. Just as a reminder, our PB Liner business is definitely, as Luc mentioned, now up for the merger with the Russello business from Darling Ingredients.

Miguel de Potter: We expect this plant to ramp up in Q1 2027, because when we acquired the plant, as Luc mentioned, the plant was not functional, and we are upgrading it to make it fully functional for the year 2027. Do not expect a big contribution from this plant in the H2 of the year. For the biovalorization segment, you see here an EBITDA margin that is higher than what we had last year. We were rightfully successful in restructuring some of the PB Leiner plants. You will remember that we closed our bone gelatin activities in 2027, but we were also negatively impacted by some of the restructuring costs and by also an incident that we had at the end of last year in our plant in Argentina for PB Leiner. Otherwise, the results would have been better.

Speaker #2: Industrial solution segments, we have three brands there, Daica, Kuhlmann, and Moleco. Daica is our pipes and fittings manufacturing. We had, while you will remember, we had a very stable first half of the year, there has been a significant decrease in the second half of the year, especially on the EBITDA, you see the EBITDA in overall is minus 50% compared to the year before.

Speaker #1: And we are upgrading it to make it fully functional for the year 2027. So, do not expect a big contribution from this plant in the second half of the year.

Speaker #1: For the Biovalorization segment, you see here an EBITDA margin that is higher than what we had last year. We were rightfully successful in restructuring some of the PB Liner plants. You remember that we closed our bone gelatine activities in 2027, but we were also negatively impacted by some of the restructuring costs and by an incident that we had at the end of last year in our plant in Argentina for PB Liner. Otherwise, the results would have been better.

Speaker #2: Several reasons for that. The slowdown in the construction sector, mainly in France, but also in other parts of Europe. Have waited negatively on the results.

Speaker #2: Secondly, for Kuhlmann and Moleco, the first half was not great, and it continues like that in the second half, with even further deterioration of the volumes.

Speaker #1: The incident in Argentina is being solved as we speak, and we expect the plant to go back to full production next month. The Axiolis revenues were relatively stable, and we have not received the full insurance proceeds for the incident in Argentina, so these are not recognized in those figures for the first half. We expect those to be recognized in the second half.

Miguel de Potter: The incident in Argentina is being solved as we speak, and we expect the plant to go back to full production next month. The Akiolis revenues were relatively stable. We have not received the full insurance proceeds for the incident in Argentina. These are not recognized in those figures for the H1. We expect those to be recognized in the H2. Industrial solution segment, we have DYKA, Kuhlmann, and moleko™, where you see revenues of just short of EUR 350 million and an EBITDA margin of 10.8%, which is definitely up from last year. Up, first of all, where does it come from? DYKA mainly is the driver between the growth here in the industrial solution segment with higher sales price.

Speaker #2: Mainly. But we were able to maintain our margin in both sectors. Machines and technology segments, peak canal see control Profero and Osterwalder, as well as Melot.

Speaker #2: Our part of this segment, you will remember that we had a very strong first half of the year. The second half is in line with the previous year, so less strong, unfortunately.

Speaker #1: In the Industrial Solutions segment, we have Delta, Kuhlmann, and Moleco, where you see revenues of just short of €350 million and an EBITDA margin of 10.8%, which is definitely up from last year.

Speaker #2: But it's also a tale of several stories here. While the wheel machines are currently suffering from the geopolitical environment and the crisis in textile in general, see control and Profero as well as Osterwalder and Melot have been able to grow outside of the peak canal group, meaning that there are now having much more outside revenues than intercompany revenues while they were just suppliers of the peak canal group, which is not the case anymore.

Speaker #1: Up first of all, where does it come from? Delta mainly is the driver between the growth here in the Industrial Solutions segments, with higher sales price—higher sales price that are also results of higher raw material prices, but meaning that we were successful in passing on those additional prices to our customers.

Miguel de Potter: Higher sales price that are also results of higher raw material prices, but meaning that we were successful in passing on those additional prices to our customers. Obviously, as a worldwide group, we are confronted to geopolitical challenges and the price of sulfur or the price of ethylene, which are definitely big raw materials that we use, are definitely affected by the conflict in the Middle East. For Kuhlmann and moleko™, the revenues remained stable in the H1 of the year. If I look at the machines and technologies, so the Picanol Group in general with Psicontrol, Proferro, but also now Melotte and Osterwalder. Osterwalder, which is our Swiss press company that we acquired last year. We see that here we have a decrease of the revenues and the margin as we had last year.

Speaker #1: Obviously, as a worldwide group, we are confronted with geopolitical challenges, and the price of sulfur or the price of ethylene—which are definitely big raw materials that we use—are definitely affected by the conflict in the Middle East.

Speaker #2: Brings us to our last segment, T-Power, T-Power has done a relatively well in 2025, relatively well because of much more start stops and much more availability, which gets some bonus payments under the tolling contract with RWE.

Speaker #1: For Kuhlmann and Moleco, the revenues remained stable. In the first half of the year, if I look at the machines and technologies—so the P&L group in general with key control for Ferro but also now Melota and Osterwalder, which is our Swiss press company that we acquired last year—we see that here we have a decrease of the revenues and the margin, as we had last year.

Speaker #2: A lot of you will ask we'll have a question, what will happen with T-Power after RWE? Well, unfortunately, we cannot disclose anything so far.

Speaker #2: What we can disclose is that we have several options on the table, none of these options is a binding option so far. And in the current volatile environment, we will only communicate when a binding option has been done.

Speaker #1: It's mainly due to a slowdown in the activities for the weaving machines that are built out of Europe, whereas the weaving machines that are built outside of Europe have known a growth path in the first half of the year and are expected to continue to grow in the second half of the year.

Miguel de Potter: It's mainly due to a slowdown in the activities for the weaving machines that are built out of Europe, whereby the weaving machines that are built outside of Europe have known a growth path in the H1 of the year and expected to continue to grow in the H2 of the year. These are less fancy machines, so the margins are lower on those machines. Both Proferro and Psicontrol have grown in terms of revenue, despite the lack of order from Picanol weaving machines. But they were not able to offset basically the order intake that was less than expected in the H1 of the year for the weaving machines. When we talk about Osterwalder and Melotte, their contributions were immaterial in the H1 of the year, or too small to mention. Our last division, T-Power, or energy division.

Speaker #2: Or has been signed. But we do believe that and we do believe that on the 1st of July, there will be a new contract in place for the future of T-Power.

Speaker #1: These are less fancy machines and so the margins are are lower on on those machines. Both Profero and PControl have grown in terms of revenue despite the lack of order from P&L weaving machines but they were not able to offset basically the the the order intake that was that was less than than expected in the first half of the year for the weaving machines.

Speaker #2: Let me walk you through the adjusted EBIT to profit details as I already mentioned, we took some large impairments and non-cash items in the second half of the year.

Speaker #2: First of all, our Sandalo Curly International SOP plant in Hamm, it's a very vintage plant, as we call it, with still a big legacy on the phosphate when the Sandalo group was still doing phosphate fertilizers.

Speaker #1: When we talk about Osterwalder and Melota, their contribution was immaterial in the first half of the year, or too small to mention. Our last division, T-Power—or Energy division—well, the revenues remained stable, as we were continuing our tooling agreement with other movements that came to an end on the 30th of June 2026. As Luc already mentioned, we had decided to embark on the 1st of July on a short-term tooling agreement in order to assess different options that we have for the future of T-Power, one way or the other.

Speaker #2: This plant needs a lot of maintenance, and our maintenance and the CAPEX has been building up in the book value of the plant, but doesn't really match the value in use of the plant.

Miguel de Potter: Well, the revenues remained stable as we were continuing our tolling agreements with other parties that came to an end on 30 June 2026. As Luc already mentioned, we have decided to embark on 1 July on a short-term tolling agreement in order to assess different options that we have for the future of T-Power, one way or the other. When we do the EBIT and the EBIT-adjusting items analysis, these are way less impressive than the same period last year, where we had big swings in foreign exchange results. Here, we have EUR 15.3 million of EBIT-adjusting items that are relating to mainly three position. One is additional cost incurred for the formation of the joint venture between Darling Ingredients and Tessenderlo on the gelatin and collagen.

Speaker #2: So we were forced to take a 26 million impairment on that particular plant. You will remember as well that when announcing the merger with PB Liner and Russello, the plant of Villevaude was typically excluded from the perimeter of the transaction.

Speaker #1: When we do the EBIT and the EBIT adjusting items analysis, these are way less impressive than the same period last year, where we had big swings in foreign exchange results. Here, we have €15.3 million of EBIT adjusting items that are relating to mainly three positions. One is additional cost incurred for the formation of the joint venture between Darling Ingredients and Tessenderlo on the gelatine and collagen. We had to also derecognize contingent consideration that we should have maybe obtained, should we keep our Brazilian partner on board, but we decided to buy our Brazilian friends out of our plant in A Corrizal. So this is a contingent consideration that we will not receive and that we have taken as an EBIT adjusting item. And then we had some restructuring expenses, additional restructuring expenses, mainly for PB Liner and for P&L in Iper. Our net finance result is mainly marked by a net foreign exchange gain of close to €8 or €9 million, and you will remember we had lost there at the same post last year of more than €50 million.

Speaker #2: We therefore have also impaired a big portions of the machinery and assets on the plant in Villevaude, which is which has been up for sale since the announcement of the transaction.

Speaker #2: And then we did some other adjustments in our environmental provisions, and here and there some smaller impairment losses. These amounts to 78 million in total.

Miguel de Potter: We had to also derecognize a contingent consideration that we should have maybe obtained should we keep our Brazilian partner on board, but we decided to buy our Brazilian friends out of our plant in Acorizal. So this is a contingent consideration that we will not receive and that we have taken in EBITDA-adjusting items. Then we had some additional restructuring expenses, mainly for PB Leiner and for Picanol in Ieper. Our net finance results is mainly marked by a net foreign exchange gain of close to EUR 9 million. You will remember we had a loss there at the same post last year of more than EUR 50 million. Our net result, as I already mentioned, amounts to close to EUR 66 million. So what have we done with everything we have gained in the beginning of this year, the EUR 176.8 million EBITDA?

Speaker #2: 59 million of nearly 60 million are finance costs, finance costs that are related to mainly Interco loans, intercompany loans, between Europe and the US.

Speaker #2: That we have to take on the mark to market basis each time we publish our balance sheet. We started with an euro dollar rate of 1.03, and we ended up the year at 1.17.5.

Speaker #2: So mainly the largest portion of this finance cost, 54.4 million, is related to that. And the rest are cash expenses. If we want to do the bridge of the net financial debt, 288 million of EBITDA, what did we mainly do with that?

Speaker #1: And our net result, as I already mentioned, amounts to close to $66 million. So, what have we done with everything we have gained in the beginning of this year? The $176.8 million EBITDA, we basically invested in several acquisitions. We mentioned the SOP production plant in Sweden. We mentioned the acquisition of non-controlling interest from the Brazilian partner in our plant in A. Corrizal in Mato Grosso, in Brazil. We also did acquisition of some shares of FMC, and we invested in some growth capex. All in total, these acquisitions and the growth capex that will bring additional revenues amount to $72 million, close to $72 million. And on top of that, we have also paid a dividend this year in June for $44 million.

Speaker #2: Well, 135 million of CAPEX, half of which growth CAPEX, half of which stay in business CAPEX. So that's a big portion. We spend also 21 million in two acquisitions, one Osterwalder AG and the second one of the Meetam Eastman contracts.

Miguel de Potter: We basically invested in several acquisitions. We mentioned the SOP production plant in Sweden. We mentioned the acquisition of non-controlling interest from the Brazilian partner in our plant in Acorizal, in Mato Grosso in Brazil. We also did acquisition of some shares of 17C, and we invested in some growth CapEx. All in total, these acquisitions and the growth CapEx that will bring additional revenues amount to close to $72 million. On top of that, we have also paid a dividend this year in June for $44 million. That brings me to our outlook, and as already mentioned, yes, the world is volatile. It's changing on a daily basis, especially when you work actively on the sulfur, fertilizers, ethylene market for the PVC and the PVC market in general, also for the textile industry and the weaving machines.

Speaker #2: And we distributed about 82 million euros in shareholders value through dividends or through share buyback. All right, look, and Luke already anticipated our outlook.

Speaker #2: It is in the current market environment for us very, very difficult to come with a very precise outlook. Do we prefer to play it safe by saying we will be in line?

Speaker #2: Remember that as from the 1st of July, the very strong tolling agreement we have with RWE will not be in place anymore. So being in line with six months of wheel load T-Power, and we never know what will happen with the Strait of Ormuz with the front in Ukraine.

Speaker #1: That brings me to our outlook. And as already mentioned, yes, the world is volatile—it's changing on a daily basis, especially when you work actively on the sulfur fertilizers, ethylene market for the PVC, and the PVC market in general, also for the textile industry and the weaving machines. But based on what we know so far, we are pleased to say that we want to upgrade a little bit our outlook going forward, where we expect to have an adjusted EBITDA higher by between 5% to 15% than the one we had last year, which was for the full year €288 million.

Miguel de Potter: Based on what we know so far, we are pleased to say that we want to upgrade a little bit our outlook going forward, where we expect to have an adjusted EBITDA higher between 5% to 15% than the one we had last year, which was, for the full year, EUR 288 million, as you remember. Then our financial calendar. Before I open the floor to your questions, is we get back online for our webinar next year in March, on 25 March. Before going to the Q&A, I will hand over the word to Luc.

Speaker #2: We believe that saying that or full year outlook will be in line with the current figures is already good for us. PB Liner is fully incorporated in the 2026 outlook, where we don't know when we're going to be able to close the transaction exactly with starting ingredients please note that the transaction might also give a capital gain on the merger at some point with Darling on the basis of PB Liner.

Speaker #1: As you remember then our financial calendar it's before I open the floor to to your questions is we get back online for our webinar next next year in March on March the 25th but before going to the Q&A I will hand over the word to Luke so I would like to give as a as a final comment to the outstanding presentation from Miguel is that we are a company with long-term relationships most of our biggest customers have been with us 10 years 20 years when then you have a difficult environment and when some journalists were calling us back in March April what are you going to do straight off the news there's no more sulfur there's no more this there's no more that there's no more the other I'm so pleased that we were able to work with our customers in a way that we did not take advantage from our customers that we were also able to keep them servicing and keeping them in business while us not losing a lot of money because that's always I must say it's dancing on a rope it's a difficult situation the raw materials go up 10 percent next day 20 percent 30 percent etc and you need to and and you need to manage that and that is something that I feel that I will always bear fruit in the future as well we have long-term relationships with many of our customers quite a lot of them are family owned I know the families very well they know our families we we have these long-term relationships and for us it's always about the customers how can we delight a customer how can we service the customer and that's also how you must see this because I know that some of you are hoping for higher EBITDA for the first six months could you have could we have achieved that maybe but you destroy you would have destroyed many many relationships then there is also a huge gratitude to everybody who works within the Tessenderlo Group and all the different companies without the hard commitment the hard work and the driven our collaborators being driven working like a team we were able to service the customers and I'm also very thankful together with my whole ex-com team to everybody within our company that we were able to deliver these results.

Speaker #2: And then we would like to bring you to another topic, we have and you have seen that we have 158 million of cash on our balance sheet.

Luc Tack: I would like to give as a final comment to the outstanding presentation from Miguel, is that we are a company with long-term relationships. Most of our biggest customers have been with us 10 years, 20 years. Then you have a difficult environment, and then some journalists were calling us back in March, April. "Oh, what are you going to do? State of confusion. There's no more sulfur. There's no more this, there's no more that, there's no more this, the other." I am so pleased that we were able to work with our customers in a way that we did not take advantage from our customers, that we were also able to keep them servicing and keeping them in business while also not losing a lot of money. Because that's always, I must say, it's dancing on a rope. It's a difficult situation.

Speaker #2: Sitting as of the 31st of December. So it has been the intention of the group, together with the board, to do and bring a new division or business units to life.

Speaker #2: The details are still being worked out as we speak, but more an investment vehicle whereby instead of depositing or cash at the bank at a relatively stable rate, we believe it is better to utilize it to do some smaller investments not only acquisitive M&As for 100% as you know to Sandalo, but we would be inclined and open to smaller tickets investments maybe some in to the extent small that can be very liquid and others where we would take a minority position in some larger companies whereby we would limit ourselves not to the full management of the company, but to board position maybe within those strategic companies.

Luc Tack: The raw materials go up 10%, next day, 20%, 30%, et cetera, and you need to manage that. That is something that I feel that will always bear fruit in the future as well. We have long-term relationships with many of our customers. Quite a lot of them are family-owned. I know the families very well. They know our families. We have these long-term relationships, and for us, it's always about the customers. How can we delight the customer? How can we service the customer? That's also how you must see this, because I know that some of you are hoping for higher EBITDA for the first six months. Could we have achieved that? Maybe, but you would have destroyed many relationships. Then there is also a huge gratitude to everybody who works within the Tessenderlo Group and all the different companies.

Speaker #2: Then we have our financial calendar. The annual report is going to be published on April the 1st. That's next week. The annual general meeting of shareholders is May the 12th and our half-year figures will be published at the end of August on the 22nd.

Speaker #2: Luke and I think Björn, we're going to take some questions now from the audience.

Speaker #1: That's correct. Let me quickly check out our gifts. Some analysts the possibility I will put them live and then they can ask their questions.

Speaker #1: I will start with Christian Fates as the first one. I'll bring you on the screen. So if you can unmute yourself, Christian, you can ask your questions.

Luc Tack: Without the hard commitment, the hard work, and all our collaborators being driven, working like a team, we were able to service the customers. I am also very thankful, together with my whole ExCom team, to everybody within our company that we were able to deliver these results. I think with that, we can now open the floor for questions.

Speaker #2: Yes, hi, thanks. And good afternoon and yeah, all the best for these difficult times. I mean, you guys need to manage real businesses, which is look at your shares.

Speaker #2: So a couple of questions, please. First of all, how do you see the development and availability of sulfur impacting your SOP business? Because I believe something like 40% of sulfur, global sulfur volumes are passing the Strait of Hormuz.

Speaker #1: I think with that, we can now open the floor for questions.

Speaker #2: Yes to start with we will put Wim Hofstad from KBC we will pick you on screen on screen yes Wim if you can unmute yourself you can ask your questions

Miguel de Potter: Yes. To start with, we will put Wim Hoste from KBC. We will put you on screen.

Bjorn Theijs: Yes. To start with, we will put Wim Hoste from KBC. We will put you on screen.

Luc Tack: Thanks.

Miguel de Potter: On screen. Yes, Wim, if you can unmute yourself, you can ask your questions.

Bjorn Theijs: On screen. Yes, Wim, if you can unmute yourself, you can ask your questions.

Speaker #2: So how do you deal with that? And maybe in combination with that also higher energy costs for your Mannheim process. That would be my first question.

Speaker #3: Good afternoon, thanks for allowing me to ask a few questions. I have five, actually, if that's okay. The first one would be on the situation in the agrobusiness, specifically with regards to raw material sourcing—MOP, sulfur. Can you maybe discuss the overall availability for you? And then specifically on MOP, is there any chance that volumes from Russia or Belarus will become available? Any thoughts on that? So that's the first question I pose here.

Wim Hoste: Good afternoon. Thanks for allowing me to ask a few questions. I have five actually, if that's okay. The first one would be on the situation in the agro business and specifically with regards to raw material sourcing, MOP, sulfur. Can you maybe discuss the overall availability for you and then specifically on MOP? Is there any chance that volumes from Russia, Belarus will become available? Any thoughts on that? So that's the first question I pose here.

Speaker #2: And my second would be in general, in any situation and if you could tell us a little bit if any positions are cashed in 2026 and potentially 2027.

Speaker #2: Thanks very much.

Speaker #3: Very good, Christian. Thank you very much for your question. Yes, so for shortage, sulfur shortage has been around for quite a while, to be honest, especially the kind of sulfur we need.

Speaker #3: But luckily enough, we have some several types of contracts. With various sulfur suppliers, long-term, we don't buy a lot of spot sulfur. And we get guarantee of supply for our facilities around the world.

Speaker #1: Can you give me all your questions and we will answer them all in one go?

Luc Tack: You give all your questions, then we will answer them all in one go?

Speaker #3: Sure, that's fine. Also, the second one would be on T-Power. Can you maybe elaborate on what kind of options you are looking at? Is that also looking at longer-term tolling agreements again, and any thoughts on a second plant project—is that still on the table or possible? Then the third question is on Pecanol. Can you maybe elaborate a little bit more on the difficult market conditions? Is it due to competitive pressures from Japanese, who may be enjoying the weaker yen to compete fiercely, or are there other things like high interest rates or other elements that are playing a role? Then, the fourth question would be on capital allocation. You did a big move with FMC—can you maybe help us understand how you're looking at capital allocation now? Share buybacks versus other opportunities: what are the kind of priorities or criteria for putting your money to work? And then, the fifth and last question would be on Vinnova. Can you maybe elaborate on any exposure you might have to Vinnova, and if it is supply agreements, sourcing, whatever? And tell us what is baked into your guidance with regards to the Vinnova scenario. Those are the questions. Thank you.

Wim Hoste: Okay. Sure. That is fine also. Second one would be on T-Power. Can you maybe elaborate on what kind of options you are looking at? Is that also looking at longer-term tolling agreements again? Any thoughts on a second plant project, is that still on the table or possible? Then the third question is on Picanol. Can you maybe elaborate a little bit more on the difficult market conditions? Is it due to competitive pressures from Japanese, which are maybe enjoying the weak yen to compete fiercely? Or are there other things, high interest rates or other elements that are playing a role? Then the fourth question would be on capital allocation. You did a big move with FMC. Can you maybe help us understand how you are looking at capital allocation now, share buybacks versus other opportunities?

Speaker #3: There are some plans that we have in the US that are directly connected to a refinery. And they get sulfur actually piped through the directly to the plant.

Speaker #3: So it is an issue the price is definitely an issue, but the availability for us for the moment is less an issue. Well, we don't know how long the crisis will last.

Speaker #3: I was reading this morning that some vessels were still sailing through Ormuz, maybe they will reopen it by next week. And that would be one crisis less.

Speaker #3: But indeed, we're monitoring the situation actively. The energy cost and the energy situation in general for the group, we have several hedges positions. For the coming three years, be it on gas or be it on electricity, all hedges and all companies and all plans have different hedging mechanisms because of the various geographies.

Wim Hoste: What are the kind of priorities or criteria for putting your money at work? Then fifth and last question would be on Vynova. Can you maybe elaborate on any exposure you might have to Vynova and either supply agreements, sourcing, whatever, and tell us what is baked into your guidance with regards to a Vynova scenario? Those are the questions. Thank you.

Speaker #3: We don't hedge the same way in the US as we do in Europe. And we don't hedge the same way in France as we do in Germany or Belgium for that instance.

Speaker #3: But I would say that more than half of our portfolio today is currently hedged for 2026. And about 40% is hedged through 2027.

Luc Tack: All right. That is a tall order. Raw materials, indeed. Supplies have been challenged. Of course, with the current situation with Russia and Belarus, we are not expecting any of these products to flow to Europe anytime soon. Once there is peace, maybe then things can change around. In the meantime, we will keep sourcing from further away. Indeed, this has caused pressures on pricing, and it has also caused pressure on the availability, especially in respect of the sulfur. I will at the same time take your last question, the Vynova, because that is related to our SOP production. As you may know, some of our HCl, which is a by-product, has been used by Vynova to go into PVC.

Speaker #2: Okay. Great. Thank you.

Speaker #1: So please, Chris. To add some flavor to that, to be sure, so we do have the bank is of course monthly determined by the index.

Speaker #3: We are a victim of the index increases or we benefit if indexes are going down. And respect of the energy costs, indeed energy is an important factor in the chemical industry and since you are a chemical industry expert, I think it is important to say that we as chemical plant do not use gas as raw material.

Speaker #3: Other fertilizer companies on the nitrogen gas is their raw material. They take the gas, they make the hydrogen from the hydrogen, they make the ammonia from the ammonia, they go on to the UAN or to the urea, right?

Luc Tack: Vynova has again asked for an extension because they believe they can still get a buyer, and so we will have to see how that process works out. But of course, this has been going on for 9 months, and if no buyer or investor would be found for Vynova, we have worked out different scenarios on how to manage that. Then in respect of T-Power, I think that your question on a second plant. Well, indeed, we still have a permit to build a new gas power plant. Of course, such a large investment is only viable if there is a correct CRM compensation capacity remuneration mechanism, if there is a good compensation for that. This does not seem to be the case in the near future. So we do not expect anything there in the near future, but the option is still there.

Speaker #3: So that is for them a completely different picture than ours. Having said that, of course, your questions on hum and on the Mannheim, which visitors visit when you came for our capital markets day, we were grateful that you were there.

Speaker #3: Helps you always understand it better. It is a plant where we also have exoterm processes, meaning when we make our sulfuric acid, we have steam that is coming available, which is producing electricity.

Speaker #3: So we also have some hedge there for the consumption for the consumption on our side. What is though more concerning for our ham plant is that we are connected through a pipes system to Vainova.

Speaker #3: And Vainova is taking HEL from our plants, from our Mannheim. We pipe it to Vainova. Where they then put it into VCM, which is then going into the plastics.

Speaker #3: You may be aware or you may not be aware, but currently Vainova is under a daughter company of ICIG in Germany. Currently under court protection.

Luc Tack: If the government were to decide that more capacity is needed because this capacity has proven, again, the CCGT capacities are proven, again, to be very valuable, especially in heatwaves or in all kind of cold situations. So we have that option. For T-Power, we have really different options that we are looking out, and we need to understand a little bit better. We need to do more homework on it. Of course, we will report to you as quick as we can when we know more. Then in respect of Picanol Group, indeed, the first 6 months were somewhat weaker. The Japanese yen at 185 is, of course, not helping us in the competition. Having said that, the outlook for the H2 is better. Our order intake has improved for the H2 of the year.

Speaker #3: And so that could influence our business in a way that if they cannot take our HEL, that might have an impact on us. We understand that the management is hard working at Vainova to find solutions.

Speaker #3: But still, we want to highlight a little bit that we not only to the Middle East difficulties, we are also having this difficulties of chemical companies which are interconnected with us, sailing difficult times and making losses.

Speaker #3: I'm just sharing public information here. But the losses at Vainova since 2023 have been higher. And so that for sure has an impact. So I think you will understand a little bit what has been happening to us.

Speaker #3: The impairment, why do we need to take an impairment? We need to take an impairment because our earnings do not support our capital employed into the business.

Luc Tack: But for most and more important, I follow very closely the pipeline of product developments that we are developing, is going to be launching new products early next year. I am confident that we will be able to create further value for our so many valued customers worldwide. Then in respect of the capital allocation.

Speaker #3: So we do have a problem there. And respect of competitiveness of the business. Now, our colleague in the XCOM, Sandra Huiler, who is our chief transformation officer, has also been there at the plant.

Speaker #3: We are engaging in constructive constructions also with the unions on what we need to do to increase the competitiveness of our plant in hum.

Miguel de Potter: Yes, in respect of the capital allocation, we are aiming at creating value for obviously all the shareholders. Currently, we have decided that it is better for us to invest capital in a minority stake, let's say, from a listed company like FMC Corporation. We have not restarted our buyback program, but we might do so in the coming months, depending on how we are evolving. But the group is currently evolving from a group of 100% controlled and owned company to a group where we going to add, I would say, another investment arm, a long-term investment arm, where we will have minority stakes in companies like FMC Corporation or like the joint venture we are currently creating with Darling Ingredients.

Speaker #3: The plant can for sure have a good future, but having to take such an impairment is, in my mind, I see it as a kind of punishment because at the end of the day, your return is not high enough to support your capital employed.

Speaker #3: And definitely, there is a high degree of urgency there to improve the situation going forward. And there we definitely need to call on our unions to make sure that we as a team work together and not against each other to achieve more productivity going forward.

Speaker #3: It is important to say that our Mannheim process is more labor intensive than general chemical plants, which run on reactors and pumps. Like we do on our liquid fertilizers here, it's more bulldozers, it's more movement, it's more it's more people.

Miguel de Potter: This is definitely a goal of diversification of the group, creating value and unlocking value by having major stakes in listed entities worldwide is definitely something we like to do. The capital allocation will not go at the expense of our CapEx program, be it maintenance CapEx program of growth CapEx program. Earlier this year, in the H1 of this year, you have seen we have spent less CapEx than the previous years. But the previous years, we had also some huge plants that were in construction, like the one in Ohio, the one in Geleen, the Netherlands, and other projects like that. This year, we do not have those very large projects, but rest assured we are working on several other projects, but it is time-consuming and awaiting permits and licenses to start construction.

Speaker #3: And I have always been an investor in Belgium. Me personally, and I have always been fighting for every job in Belgium. But of course, it always takes two to tango.

Speaker #3: And we need the support of everybody. I must say sometimes it has been difficult to bring across that sense of urgency. It looks like now we are in a better momentum.

Speaker #3: And therefore, we hope that that impairment will be a one-off and will not reoccur in the future. Because it has to be said, the business will still need a lot of investments in hum.

Speaker #3: Miguel highlighted there that some of the buildings are old and antiquated, etc. So we will need to further invest there. And so these are tough times.

Luc Tack: I think Miguel is summarizing this very well. It is not one or the other. We do all, right. We buy companies, or we do M&A transactions. We acquired Tiger-Sul. We bought the Metam business from Eastman, and we bought the Cinis asset in Sweden. So when we can acquire stuff which makes sense, we do so. Then, of course, organic growth wherever we can. We invest in our plants and see what we can do. And then thirdly, as we already highlighted last year, these cornerstone investments in businesses that we understand and that we believe can create value are also a capital allocation. Because that was your question on the capital allocation. Also, keeping into mind that these cornerstone investments are listed investments, and as such, are also creating financial flexibility if it were to be needed. Thank you.

Speaker #3: Having said that, we make the best SOP in the world. I want to highlight that. We make the best. And we are also recognized as such in the market.

Speaker #3: So but the turmoil that we went through, you should not forget that we were sourcing for 50 years everything from Belorussia and Russia. Now we are getting it from much further away.

Speaker #3: We're getting it in Saskatchewan, putting it on unit trains, from Saskatchewan to Vancouver. In Vancouver, it goes in big vessels through the Panama Canal.

Speaker #3: It's coming to Antwerp. I do not need to tell you how much extra logistical cost that brings with it. So I'm just trying to inform the market and all of you very directly on the situation and what to expect.

Speaker #3: And also why we are kind of hesitant and getting firmer outlooks with all what's going on. Thank you.

Wim Hoste: Okay. Understood. Thank you very much for the extensive answers.

Speaker #1: Okay, great. Thanks very much. All the best and particularly also all the best to Miguel with his leadership.

Miguel de Potter: Thank you, Wim.

Luc Tack: Thank you, Wim. So now we can go to the Q&A box. There are many questions. I will have a look and select some of them. Question from Christian Faitz: Can you please elucidate your strategy behind taking a 20% stake in FMC, and what is the timeline in terms of approvals for this?

Speaker #3: Thank you.

Speaker #2: Thank you, Christian. Let me put the next one. So our next one, I will Wim Hoster from KBC. I'll wait. Let me put you on the screen.

Speaker #2: Bring on screen. Here we go. Wim, if you unmute yourself, you can ask your question.

Speaker #4: Yes, good afternoon. I have a couple of questions. I would like to ask them one by one. So continuing on agro, how is your pricing power and volumes developing at the moment?

Miguel de Potter: Well, let me first go to the easy part of the question, which is the timeline for approvals. We expect that we will get all the regulatory approvals somewhere around the end of September or in October. We know that we are not mastering the process in several jurisdictions, but we have already approval from some jurisdictions. That's positive. The process is ongoing, and we do not expect it to go much longer than October. It should be finished by then. What is the rationale for taking a 20% stake in FMC? As Luc was saying, it's a business we understand, and it's a business of active ingredient that we believe we understand. You have to know that today our Crop Protection business is a relatively successful business of all the molecules that are off patent.

Speaker #4: We hear that, yeah, there's quite some shortage here. You mentioned that sulfur indexes go up, but how fast can you translate that into your own selling prices?

Speaker #4: And yeah, how are volumes doing? Yeah, both for ADS and SOP. Can you comment on that, please?

Speaker #3: Well, so what we are doing, of course, we are follow closely following all over the raw material costs, which are indeed going up, right?

So now we can go to the Q&A box. There are many questions; I will have a look and select some of them. Uh, question from Christian Faith: Can you please elucidate your strategy behind taking a 20% stake in FMC, and what is the timeline in terms of approvals for this? Oh, uh, let me first go to the easy part of the question, which is the timeline for approvals. Uh, we expect that we will get all the regulatory approvals somewhere around the end of September or in October. Uh, obviously, we know that we are not mastering the process in several jurisdictions, but we have already received approval from some jurisdictions, so that's positive. But the process is ongoing and we don't expect it to go much longer than October, so it should be finished by then. What is the rationale for taking a 20% stake in FMC? Well, as Luc was saying, it's a business we understand.

Speaker #3: And we are passing on pricing increases accordingly. So in that respect, the margin is there. And we are working with customers. And I think that needs to be said that both on supplier side and on the customer side, with the exception of our MOP sourcing from Russia and Belorussia, which has changed, but for all our other suppliers that we have, and customers, we have very long relationships.

Miguel de Potter: Within FMC, we are entering into the world of patented molecules, and we believe that in doing our homework, in contemplating FMC, that FMC has a nice product portfolio going forward. It's not a secret because they are publicly listed, and they report on this, but they will release five new molecules in the coming five years, which is a very good portfolio. We believed also that FMC was attractively priced recently because of more balance sheet issue, and by contributing to a capital increase of EUR 400 million, FMC will be able to reduce its indebtedness by EUR 1 billion over the short term.

And it's a business of active ingredients that we believe we understand. You have to know that today our crop protection business is a relatively successful business, of all the molecules that are off-patent. We then see we are entering into the world of bio-molecules, and we believe that in doing our homework and—

Speaker #3: And through these very long relationships, quite often 20 years and longer, we have been working with each other and everybody understands the indexes. Everybody see what's happening.

In contemplating FMC, SMC has a nice product portfolio going forward. Uh, it's not a secret because they are publicly listed and they report on this, but they will release five new molecules in the coming five years.

Speaker #3: And everybody understands we need to adapt accordingly. So on that front, we are okay. We are also since we are in these long-term relationships, not there to take advantage and say play the customer.

Miguel de Potter: We believe that we enter the company at a turnaround that might take some time, and we are ready to be patient and to help the company through this turnaround to go back to a more creditworthiness company and create value there for us, but not only as a shareholder of FMC, but also to create value from things we can learn from them for our own ag divisions.

Speaker #3: That's not what we do either. So we value these long-term relationships and we want to have these relationships in the good and in the bad times.

Speaker #3: And so things are going as they should be going we think.

Speaker #4: Okay, thank you. Next question would be on the, yeah, capital allocation. Your share buyback program is, yeah, has terminated end of December. You mentioned the division that you will build regarding investments.

Luc Tack: I think, if I may finalize on that question, is in the world, there are five leading technology companies in developing new active ingredients. They are called Corteva, Bayer, BASF, Syngenta, and FMC. They are really the leaders in the world in the creation of new molecules. With 750 people and an agronomist, almost 1,000 people working on development of new products to create a good future is a long-term investment. To develop a new molecule, it takes 10 or 15 years. I think, therefore, it is good to have a cornerstone investor for a company so that the company has the time to develop them going forward. The other companies I talked to you about, no one has such a strong cornerstone investor with having 20%. They are all free float, except for Syngenta, which is Chinese-owned.

Uh, which is a very good portfolio. We believed also that FMC was attractively priced recently because of more balance sheet issues. And by, uh, contributing to a capital increase of €400 million, FMC will be able to reduce its debt and regain its independence by €1 billion over the short term. Uh, so we believe that we will, we enter the company for the turnaround, which might take some time, and we are ready to, uh, be patient and to help the company through this turnaround to go back to a more creditworthy company and create value there for us. But, um, not only as a shareholder of FMC, but also to create value from things we can learn from them for our own divisions.

Speaker #4: So what are the priorities for capital allocation going into the future? Is it possibility to restart buybacks or will you fully focus on building out that investment branch?

So, I think, um, if I may, um, finalize on that question, it is,

Speaker #4: Can you maybe comment a bit on that?

Speaker #3: Well, I'll be happy to comment on that. At the end of the day, it's all going to depend on the opportunity and on the value creation.

Speaker #3: You as shareholders, you rightly expect us to maximize earnings per share, right? And it's what you need to deliver that. And we will always react into a way that will help us to create that value.

Um, in the world, there are five leading technology companies in developing new active ingredients. They are called Corteva, they are Bayer, BASF, Syngenta, and FMC. They are really the leaders in the world in the creation of new molecules.

Speaker #3: So going forward, we have decided to do this investor thing. I must say that is something that I was explained and told to me some 20 years ago.

Um, with 700 and 750 people and then agronomist, almost a thousand people working on the development of new products to create to create a good future is a long-term investment to develop a new molecule, it takes 10 or 15 years. And I think therefore, it is good to have a Cornerstone investor for a company. So that the company has the time, uh, to develop them, um, uh, going uh, going forward.

Speaker #3: 20 years ago, I bought a company Artilat from Brederode. From Mr. Pierre van der Merch at the CEO at the time. And he explained to me at the time how he was using his shares that he was buying in big multinational companies, which were always liquid, as a little bit as his bank account.

Luc Tack: But this is really, we believe, a good step for our company, otherwise we would not have done it.

Miguel de Potter: And to add on to FMC, we are a long-term investor in FMC, because I see some questions about it in the chat box. And obviously, we have got a lot of investors, professionals on the call that are following the stock. We are not looking at FMC just based on a stock price. We are there for a really long term with FMC. So if the stock price does not evolve in the direction we like in the coming years, in the short term or medium term even, we are not afraid of that. We are there really for the long term, and we believe that in the long term, the results will-

Speaker #3: Where he said, if I see a big opportunity, to invest into private equity, I sell shares and I invest in private equity. And then whether a private equity fund is coming to him, I have cash coming in and I buy again shares.

The other companies I talked to you about—no one has such a strong cornerstone investor with having 20%. They are all free float except for Syngenta, which is Chinese owned. Yeah. So, but this is really, uh, we believe, um, a good step for our company; otherwise, we would not have done it. And to add on to FMC: we are a long-term investor in FMC, uh, because I see some, some, some, some cash questions about it in the chat box and—

Speaker #3: So we have said that going forward, we prudently should use our balance sheet a little bit more going forward. But always having in mind liquidity.

Speaker #3: And the difference is, if you do an M&A transaction, you buy something and you have no liquidity anymore. You spent the money and you have to work within it.

Luc Tack: Will be there and there will be cash generation.

Miguel de Potter: Yep. Correct.

And obviously, we've got a lot of investors, professionals on the call, that are following the stock. We are not looking at FMC just based on a stock price. We are there for the really long term with FMC, so if the stock price does not evolve in the direction we like in the coming years, in the short term or medium term even, we are not afraid of that. We are really there for the long term, and we believe that in the long term, the results will be there and there will be cash generation.

Speaker #3: It can go wrong or you may need money for something else, but the money is locked into it. Here, what we are trying to do is we're trying to build in more flexibility and our balance sheet, where then through this position that we take, we are able to increase or to lower according to opportunities that may arise in our core businesses that we can all of a sudden buy something this like we were buying this Sinis thing.

Bjorn Theijs: Yeah. Maybe a short follow-up question on that as well is, how confident are you that their financial situation is stable now without requiring additional asset divestment or dilutive equity transactions, given that roughly 22% of the float remains short and the stock trades near $11?

Luc Tack: Well, I think we need to make a distinction between the stock price and the cash situation of the company. Those who will read well into the company will see that a lot of the debt, the bond financing, has a maturity in 2049, 2052, and 2053. They are long-term bonds. So we believe that by then, the new molecules will already have delivered results and will be able then to service the debt when due. For sure, and to manage expectations with all of you on the call, we are not all of a sudden expecting a boom next year on FMC and that all of a sudden things are going to explode there. This is going to take time. But like we said, that's why we will have the patience, but we believe that that will deliver results over time.

Speaker #3: This was not a strategy and look, we need to buy, we need to buy that. We said we liked the technology, we follow it.

Speaker #3: And then all of a sudden, if you need the cash, then you put some shares. Pay for it and move on. So it is creating more optionality for our company to create more income.

Speaker #3: I think that's how you should understand it.

Speaker #4: Okay, clear. And two more questions. The first one is on the outlook for pick and all. Given the fluctuations of the yen and rising interest rates, how are order books or what's the outlook for the pick and all business, the weaving machines business?

Situation is stable now without requiring additional asset divestment or dilutive Equity transactions. Given that roughly 22% of the float remains short and the stock trades near 11 dollars. Right? Well, I think we need to make a distinction between the stock price and the cash situation of the company, those who will read well, into the company will see that, a lot of the depth, the bond financing has a maturity and 2049 2052 and 2053 and they are long-term bonds. So we, uh, are believe, we believe that by then, the new molecules already have delivered results and will, um, will, uh, uh, will be able then to service the depth, when due. So, for sure. And to manage the expectations with all of you on the call, we are not all of a sudden expecting a boom next year.

Speaker #3: Well, I must tell you, I have also been traveling. I was in India. I was in different places. So of course, we do feel today, again, the certainty which has arisen the last four weeks.

On fnc. And that all of a sudden, things are going to explode. There, this is going to take time, okay? But uh, like, like we said, that's why we will have, we will have the patience but we believe, um, that, uh, uh, that will deliver results, uh, over time.

Bjorn Theijs: Thank you. I'm checking the questions. I see a lot of the questions we answered during the call already, so maybe one final question. From which segments do you expect recovery or the performance in H2, given that the T-Power segment, we announced that due to the tolling agreement we expect?

Speaker #3: So I must say, what is encouraging in the textile business is that the milk capacity is running quite well. So when you look with our customers, they are running quite well.

Speaker #3: What we are seeing is that machines are getting older. And I think there will also need to be replacement of machines going forward. Of course, CAPEX funds require stability and financial stability and of course, wars are not helping to that.

Miguel de Potter: Yes, that's a good question, but it's a little bit in general. Overall, we see that biovalorization after the restructuring that we have implemented over the last few years into biovalorization should benefit for the entire division. The Agro division has been strong in H1, and we believe that H2 might be also a reflection of that. Machines and technologies, as Luc mentioned, the order intake for H2 for Picanol Group is better than expected. It's a little bit a mix, and we see that with DYKA and the PVC and industrial solutions has done better in H1. We believe that it will continue in H2. So it's a little bit of a mix.

Speaker #3: I must say that I'm despite the short time work that we are experiencing in IPR, where we unfortunately had to lay off some colleagues last week to align the production capacity more with the demand.

Um, May I'm checking the questions. I see a lot of the questions we answered during the call already. So maybe 1 1 final question. Um, from which segments, do you expect recovery or or the performance in H2, given that the T power segment? We announced that uh, due to the uh, tolling agreement? We expect, yes, that's a good question, but it's a little bit in general overall. Uh, we see that by the restructuring, that we have implemented over the last few years into bio should benefit for the entire, uh division. The aggro division has been strong in the first half of the year and we believe that the second half of the Year might be also a reflection of that, uh, machines and Technologies. As Luke mentioned, the order intake for the second half of the year for Pico this better.

Speaker #3: We still have how you call it, if I may say, if I may shift temple days, we still have days of.

Speaker #2: Technical unemployment.

Speaker #3: Yep. So we are still doing that. I can tell you that technology-wise, our leadership is still there. And it is not just me saying it.

Luc Tack: I think our guidance is clear, between 5% and 15% from where we are today towards the end of the year.

Than expected, so it's a little bit of a mix. And we see that with data, and the PIC Industrial Solutions has done better in the first half of the year. We believe that it will continue in the second half of the year. So, it's a little bit of a mix.

I think I will guide them that this is clear between 5% and 15%. Uh,

Bjorn Theijs: Okay. Thank you. I think we covered most of the questions that I see. Do you want to have any closing words?

Where we are today, and where we will be towards the end of the year.

Speaker #3: It's even the Chinese saying it in that five-year plan where they are putting in the five-year plan that they should producers of machines should chase the pick and all technology.

Luc Tack: No, really, thank you for your interest in our company, and thank you for listening to our call. Be assured that all of us here at the company are motivated. We are supported by 7,000 colleagues who give the best of themselves every day, and we will try to keep doing that, keep servicing our customers, giving good service, making top-quality products at a fair price. Thank you.

Speaker #3: So there we are technology-wise, we are good. And so then it is purpose to go through these difficult storms that we are facing.

Speaker #4: Okay. And then a final question from me would be on T-Power. I recall from the past that utilization was very low. So can you maybe without discussing really the options on the table or potentially on the table, can you comment on what the current utilization rates of the plant is in 25, for example?

Miguel de Potter: Thank you very much for listening. Have a nice day.

Okay, thank you. I I I think we covered most of the questions that I see. Do you want to have any closing words or no? I, I really, um, thank you for, for your interest and, and our company and and thank you for for listening to our call be assured that all of us here at the company are are motivated. We are supported by 7,000 colleagues who have who give the best of themselves every day and we will uh try to keep doing that. Keep servicing our customers giving good service making top quality products at a fair price.

Luc Tack: Bye.

Thank you. Thank you very much for listening. Have a nice day. Bye.

Speaker #3: Well, when no, we cannot do that, but I can help you in another way, I believe. We believe that the future of gas power plants is not in the running hours.

Speaker #3: The future is in the flexibility. We are going through a change in climate and not in climate, I mean in the power generation, which is I would like to remind everybody when the sun is shining, it's free of charge.

Speaker #3: And nobody pays for the sun shining and nobody pays for the wind blowing. So when the windmills are running, when the solar panels are producing a lot of power, then T-Power is not running.

Speaker #3: But what do you do? What do you do if there is no wind and there is no sun? And this for a prolonged year, like they say in Germany, the Dunkelfleute.

Speaker #3: So what do you do then? But then you need the gas plants, right? And you may need them a few hours per day. You may need them at peaks and evening, etc.

Speaker #3: Our power plant is very flexible to be able to help to help in all these situations. So this is a little bit what we what we can tell you about T-Power.

Speaker #4: Okay.

Speaker #2: I see we have seven minutes left, so I will put on Frank Claassen. Just put you on screen here. Here you go, Frank. If you will unmute, you can ask your questions.

Speaker #4: Yes. Good afternoon. I've got two questions left. First of all, on DICA, the PVC prices have also risen because of the crisis recently. Could you elaborate how you're dealing with that and what impact could be on DICA?

Speaker #4: That's first. And then secondly, the CAPEX, well, flat in 26, which means still half of that is growth CAPEX. What are the main growth projects where you spent your growth CAPEX on in 26?

Speaker #4: Thank you.

Speaker #3: All right. I'll take the first one. Miguel, can take the second one. So on DICA, indeed. So polymer prices are going up. We're using PVC polypropylene and polyethylene.

Speaker #3: As such, we are also adapting our sales prices as we have to. But for me, the biggest problem that we have in Europe is that every politician also in Holland and everywhere is talking about the housing shortage.

Speaker #3: And how we should address that. To me, that is a huge opportunity for our unleash the construction market. And I think that's really what we need.

Speaker #3: There is a shortage of in every country of 100,000 of housing, yet the release of building permits is still coming down. Figure that one out.

Speaker #3: Big shortage and building permits going down. So there, of course, there is a big appeal towards governments by the way, unleashing permits and unleashing grounds has no budgetary problems, right?

Speaker #3: Doesn't cost the government any money. Just make a decision. Let's free up space. Let's free up permitting. Let's make sure that permitting do not take six or eight years to be granted.

Speaker #3: With endless appeal, periods, etc. So that we can get the economy moving. And then to me, that is the most important that we need.

Speaker #2: Yes. And the PVC price have been quite low for quite some years. Right now. And so seeing the PVC price increasing, it's not a shock.

Speaker #2: It is something that we had foreseen. There is an overcapacity of PVC in Europe in general. We talk about the situation with Vinnova earlier.

Speaker #2: And so yes, they're gradually increase, but okay, we're also hedging our PVC supply for DICA. So we don't need to pass on those higher prices to the customers yet.

Speaker #2: Of course, nobody knows how long the situation will last. To come back to your CAPEX question, yes, the CAPEX guidance is relatively flat, if not lower in 26.

Speaker #2: The main growth project we still have ongoing is the expansion of our ferrochloride capacity in Kuhlmann. With everything that entails, higher voltage, transmission lines, etc.

Speaker #2: And the second largest project we have is the gasification plant in Saint-Logis for Aqueolis, where we convert biogas into electricity. Basically, these are the two main growth projects.

Speaker #2: And then we have got plenty of small bottlenecking projects around the world that will make most of the growth initiative for 26.

Speaker #4: Okay. Thank you.

Speaker #2: Okay. Thank you, Frank. If I look at the Q&A box, I think a lot of questions have been covered in the meantime. Maybe we take time for one or two questions.

Speaker #2: So the first one, does the dividend payment from the available share premium mean that there will be no Belgian dividends withholding tax applied?

Speaker #3: Well, it's a very good question. And actually, since the morning, I think a lot of persons have texted us to ask that question. The answer is not no.

Speaker #3: There will not be any dividend, any withholding tax to be paid. It will depend at the exact date of the dividend payment. But for the portion that is coming out of the share premium, it is in Belgium indeed free of withholding tax.

Speaker #3: A portion will still come from the provisions for which a very small amount normally of withholding tax will be paid. What we can say already is that about 70% of the 75 cents will be coming from share premiums and 30% from provisions.

Speaker #3: So a withholding tax is expected on only 30% of the 75 cents.

Speaker #4: I think this good news for the whole private shareholder. Because the net dividend will be higher and so that's I think always good for people that bought shares in our company that the net dividend is higher.

Speaker #2: And some people have asked me the question, what does it entails for foreign shareholders with double tax treaty, etc. I don't have the answer yet, but we will look into that.

Speaker #2: All right. Then maybe one final question. If you're expanding the ferric chloride capacity in Kuhlmann Europe, why if volumes are lowering?

Speaker #3: Well, volumes are lowering because we made a strategic choice to keep our margins at a certain level and not to go into a big fight with competition.

Speaker #3: The volumes are lowering mainly Germany and in Belgium only so far. Which is good. And we kept our margin in the larger French market and UK to some extent.

Speaker #3: This was a decision because we didn't know when the full expansion and the bottlenecking of the plant will be 100% ready. Big portion of it will be ready in the coming months this year.

Speaker #3: So there we will maybe adjust our pricing policy and our volume distribution policy going forward.

Speaker #2: All right. Well, thank you all for dialing in today. Be sure we will do our own most best to run the company as good as we can.

Speaker #2: And this will be a long-term perspective so that we are doing a good job on the long term. And not getting carried away with the wand van de dag of the craziness of the day.

Speaker #2: So thank you all for joining us.

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Half Year 2026 Tessenderlo Group NV Earnings Call

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