Q2 2026 Voltalia SA Earnings Call

September 3, 2026

Speaker #1: Good morning. Please hold the line. The conference will begin shortly. Thank you. Excuse me, this is the conference operator. The conference will begin shortly.

Speaker #1: Please hold the line. Thank you for your patience. Excuse me. This is the conference operator. The conference will begin shortly. Please hold the line.

Speaker #1: Thank you for your patience. Good morning. This is the conference operator. Welcome, and thank you for joining the Voltalia Half Year 2026 Results Presentation.

Operator: Good morning. This is the conference operator. Welcome, and thank you for joining the Voltalia H1 2026 Results Presentation. As a reminder, all participants are in listen only mode. After the presentation, there will be an opportunity to ask questions via conference call by pressing star and one on your telephone. Participants may also ask written questions via webcast. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Robert Klein, Group CEO of Voltalia. Please go ahead, sir.

Speaker #1: As a reminder, all participants are on listen-only mode. After the presentation, there will be an opportunity to ask questions via conference call by pressing star and 1 on your telephone.

Speaker #1: Participants may also ask written questions via webcast. Should anyone need assistance during the conference call, they may signal an operator by pressing star and 0 on their telephone.

Operator 2: Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Robert Klein, Group CEO of Voltalia. Please go ahead, sir.

Speaker #1: At this time, I would like to turn the conference over to Mr. Robert Kline, Group CEO of Voltalia. Please go ahead, sir.

Speaker #2: Thank you. Good morning, everyone, and thank you for joining us today for our 2026 half-year results presentation. Twelve months after the launch of Spring, the first operational results of our transformation are becoming visible.

Robert Klein: Thank you. Good morning, everyone, and thank you for joining us today for our 2026 H1 results presentation. 12 months after the launch of SPRING, the first operational results of our transformation are becoming visible. In this period, we continue to simplify our organization, improve capital allocation discipline, and reduce development costs while maintaining strong operational execution. In addition, most of our disposal processes have been launched. We also benefit from the recognition of historical curtailment compensation in Brazil, representing around EUR 29 million of EBITDA, and we continue also to progress with 438 MW commissioned and nearly 1 GW of PPA signed. As a result, we confirm our 2026 EBITDA objective.

Robert Klein: Thank you. Good morning, everyone, and thank you for joining us today for our 2026 H1 results presentation. 12 months after the launch of SPRING, the first operational results of our transformation are becoming visible. In this period, we continue to simplify our organization, improve capital allocation discipline, and reduce development costs while maintaining strong operational execution. In addition, most of our disposal processes have been launched. We also benefit from the recognition of historical curtailment compensation in Brazil, representing around EUR 29 million of EBITDA, and we continue also to progress with 438 MW commissioned and nearly 1GW of PPA signed. As a result, we confirm our 2026 EBITDA objective.

Speaker #2: In this period, we continue to simplify our organization, improve capital allocation discipline, and reduce development costs while maintaining strong operational execution. In addition, most of our disposal processes have been launched.

Speaker #2: We also benefit from the recognition of historical curtailment compensation in Brazil, representing around €29 million of EBITDA, and we continue also to progress with 438 megawatts commissioned and nearly 1 gigawatt of PPAs signed.

Speaker #2: As a result, we confirm our 2026 EBITDA objective. However, we now expect a net loss for the full year 2026, including the second half, reflecting a more significant-than-anticipated deterioration of items below EBITDA, particularly financial expenses, certain loss-making assets, and transformation costs.

Robert Klein: However, we now expect a net loss for the full year 2026, including the H2, reflecting a more significant than anticipated deterioration of items below EBITDA, particularly financial expenses, certain loss-making assets and transformation costs. Sylvine will provide more details in a few minutes on these factors and their expected impact on our full year results. Despite these challenges, SPRING remains fully relevant and the first benefits of the plan are already visible. I will now take you through the key achievements of the H1 and the initial outcome delivered by the transformation. Let's begin with today's agenda. We will then start with the key highlights from the H1 of the year, including our recent operational and commercial progress. We will then review our 2026 H1 financial results and explain the main factor behind our performance.

Speaker #2: Since then, we'll provide more details in a few minutes on these factors and their expected impact on our full-year results. Despite these challenges, Spring remains fully relevant, and the first benefits of the plan are already visible.

Speaker #2: I will now take you through the key achievements of the first half and the initial outcomes delivered by the transformation. Let's begin with today's agenda. Then, we will start with the key highlights from the first half of the year, including our recent operational and commercial progress.

Speaker #2: We will then review our 2026 half-year financial results and explain the main factor behind our performance. Next, we will provide an update on the execution of Spring, including progress on cost savings, portfolio refocusing, disposals, and operational performance.

Robert Klein: Next, we will provide an update of the execution of SPRING, including progress on cost savings, portfolio refocusing, disposals, and operational performance. Finally, we will look at our outlook for 2027 and beyond. Let's start with the key highlights now. We start then with one of Voltalia's key strengths, the long-term visibility of our energy sales business. We have around EUR 7 billion of secured revenues, with an average remaining PPA life of 16.6 years. In addition, 79% of our revenues are indexed to inflation, which provides further protection. You see that secured revenues decreased from EUR 7.7 billion at the end of 2025 to EUR 7 billion. This mainly reflects the revenue recognized during the H1 and our revised and more prudent assumptions, including curtailment. We also have a geographically balanced 12 GW development pipeline and 3.6 GW in operation or under construction.

Speaker #2: Finally, we will look at our outlook for 2027 and beyond. Let's start with the key highlights now. I will start with one of Voltalia’s key strengths: the long-term visibility of our energy sales business.

Speaker #2: We have around €7 billion of secured revenues with an average remaining PPA life of 16.6 years. In addition, 79% of our revenues are indexed to inflation, which provides further protection.

Speaker #2: You see that secured revenues decreased from €7.7 billion at the end of 2025 to €7 billion. This mainly reflects the revenue recognized during the first half and our revised and more prudent assumptions, including curtailment.

Speaker #2: We also have a geographically balanced 12-gigawatt development pipeline, and 3.6 gigawatts in operation or under construction. Our priority is now to improve the quality and maturity of the pipeline, rather than increasing its size.

Robert Klein: Our priority is now to improve the quality and maturity of the pipeline rather than increasing its size. Together, these elements provide strong visibility and a solid foundation for discipline and profitable growth. Let me now turn to our recent commercial developments. This is our second headline, which is continuing our strength on our commercial activities alongside the refocusing of our portfolio. We continue to convert our development pipeline into long-term contracted growth, as you can see, while applying stricter investment criteria, and it is important. During the H1, we advanced around 1 GW of PPAs, mainly through 860 MW Râ wind project in Egypt and new agreements signed in the UK and in Italy. In Brazil, you have been able to read probably on the press, we made further progress on Pecém, one of our first projects in the data center sector.

Speaker #2: Together, these elements provide strong visibility and a solid foundation for discipline and profitable growth. Let me now turn to our recent commercial developments. This is our second tagline, which is a continuing strength.

Speaker #2: Our strengths in our commercial activities, alongside the refocusing of our portfolio. Then, we continue to convert our development pipeline into long-term contracted growth, as you can see, while applying stricter investment criteria.

Speaker #2: And this is important. During the first half, we advanced around 1 gigawatt of PPAs, mainly through the 860-megawatt RESA wind project in Egypt and new agreements signed in the UK and in Italy.

Speaker #2: In Brazil, you’ve probably read in the press that we made further progress on PESEM, one of our first projects in the data center sector.

Speaker #2: Indeed, after securing 322 megawatts of grid connection capacity in June, the project recently reached another important milestone with its approval under the PESEM export processing zone framework.

Robert Klein: Indeed, after securing 322 MW of grid connection capacity in June, the project reached recently another important milestone with its approval under the Pecém export processing zone framework. What does it mean? It means that this will allow the project to move to another key milestone, which is the tax incentives, and which will make the project even more attractive. Pecém also gives us the opportunity to combine our strong local presence with our energy expertise and explore how Voltalia could support the data center industry as an energy infrastructure partner. Of course, based on this first experience, we may gradually consider similar opportunities in Brazil and potentially in other countries. At the same time, our services businesses continue to grow, with new contracts for Renvolt and additional opportunities for Helexia.

Speaker #2: What does it mean? It means that this will allow the project to move to another key milestone, which is the tax incentives, and which will make the project even more attractive.

Speaker #2: PESEM also gives us the opportunity to combine our strong local presence with our energy expertise, and explore how Voltalia could support the data center industry as an energy infrastructure partner.

Speaker #2: Of course, based on this first experience, we may gradually consider similar opportunities in Brazil and potentially in other countries. At the same time, our services businesses continue to grow.

Speaker #2: With new contracts for Envolt, and additional opportunities for Elexia, this shows that Spring is not about reducing our growth ambitions, but about focusing our resources and investments on the opportunities that create the most value.

Robert Klein: Somehow, this shows that SPRING is not about reducing our growth ambitions, but it is about focusing our resources and investments on the opportunities that create the most value. To capture these opportunities, of course, maintaining access to long-term financing remains a key priority. This third highlight shows our continued ability to attract long-term financing partners. The proposed partnership with IFC, that you know already for up to EUR 120 million, is a good example of that. Beyond the financing itself, it demonstrates the confidence of a leading international institution in Voltalia's strategy and project portfolio. This financing would mainly support large-scale projects in Uzbekistan, Egypt, and Tunisia. Given the size of these opportunities, we also intend to bring in an equity partner at, of course, the appropriate stage. This will help us share the risk, limit our capital exposure, and also maintain a balanced portfolio.

Speaker #2: And to capture these opportunities, of course, maintaining access to long-term financing remains a key priority. Then, on this third highlight, it shows our continued ability to attract long-term financing partners.

Speaker #2: The proposed partnership with the IFC, which you already know about, for up to €120 million is a good example of that. Beyond the financing itself, it demonstrates the confidence of a leading international institution in Voltalia's strategy and project portfolio.

Speaker #2: This financing would mainly support large-scale projects in Uzbekistan, Egypt, and Tunisia. Given the size of these opportunities, we also intend to bring in an equity partner and, of course, at the appropriate stage.

Speaker #2: This will help us share the risk, limit our capital exposure, and also maintain a balanced portfolio. Together, these three highlights that I just commented show that Voltalia combines long-term visibility, strong commercial momentum, and disciplined financing to support measured and sustainable growth.

Robert Klein: Together, these three highlights that I just commented show that Voltalia combines long-term visibility, strong commercial momentum, and disciplined financing to support measured and sustainable growth. Let me now hand over to Sylvine, who will present you the 2026 H1 results and the first evidence of the transformation. Thank you, Sylvine.

Speaker #2: Let me now hand over to Sidwin, who will present you the 2026 half-year results and the first evidence of the transformation. Thank you, Sidwin.

Speaker #3: Thank you, Robert. Good morning, everyone. Let me begin with the headline performance for the first half. Turnover reached €331 million, up 30% at constant exchange rate, while EBITDA rose 35% to €110 million.

Sylvine Bouan: Thank you, Robert. Good morning, everyone. Let me begin with the headline performance for H1. Turnover, which is EUR 331 million, up 30% at constant exchange rate, while EBITDA rises +35% at EUR 110 million. At the same time, the quality of earnings require a balanced reading. The period includes Brazilian past settlement compensation. We will revert to this point soon to give you more detail. First point is we recorded EUR 29 million, which is more than what we budgeted. Initially more than EUR 20 million, while resource availability transformation costs continue to weigh on the performance. Consolidated net loss remain at EUR 40 million, which is flat compared to last year. Important point I would like to highlight is the cash delivery improvement.

Speaker #3: At the same time, the quality of earnings requires a balanced reading. The period includes Brazilian past curtailment compensation. We will revert to this point soon.

Speaker #3: To give you more detail, the first point is we've recorded €29 million, which is more than what we budgeted—initially, more than €20 million.

Speaker #3: While resource availability and transformation costs continue to wait on the performance, consolidated net loss remains at €40 million, which is flat compared to last year.

Speaker #3: An important point I'd like to highlight is the cash delivery improvement. Operating cash flow reached €102 million, which is equivalent to a 92% cash conversion.

Sylvine Bouan: Operating cash flow reached EUR 102 million, which is equivalent to 92% of cash conversion, and the closing cash position increased to EUR 343 million, which is a raise from H1 2025 of EUR 108 million. What is the output of this slide is we do have strong operational progress, and we continue to apply a financial discipline to improve cash generation. Let us now move to our business line. We will do a focus and a deep dive per main activity within Voltalia. Let me start with development. Our priority is clearly value through conversion over volume. We have resized the pipeline, Robert mentioned it, to 12 GW with a tighter project selection, clear conversion threshold, and more discipline of capital allocation. Financial effects and consequences are here visible. Point 1, cash cost spend decreased by 33%, reaching EUR 30 million. Prospection fell by 23% to EUR 6 million.

Speaker #3: And the closing cash position increased to €343 million, which is a rise from half of June 25 by €108 million. What is the output of this slide is we do have a strong operational progress and we continue to apply a financial discipline to improve cash generation.

Speaker #3: Let's now move to our business line. We will do a focus and a deep dive per main activity within Voltalia. Let me start with development.

Speaker #3: Our priority is clearly value through conversion over volume. We have resized the pipeline—Robert mentioned it—to 12 gigawatts, with a tighter project selection, clear conversion thresholds, and more discipline in capital allocation.

Speaker #3: Financial effects and consequences are visible here. Point one: cash cost spend decreased by 33%, reaching €30 million. Prospection fell by 23% to €6 million.

Speaker #3: Headcount reaches 293 people, which is more or less 14% less than the prior period. In addition to the project sales made over the first semester, development P&L operating impact is minus €2 million, which is less than by €5 million compared to the prior period.

Sylvine Bouan: Headcount reaches 293 people, which is more or less 14% less than prior period. In addition to the project sales made over the first semester, development P&L operating impact is -EUR 2 million, which is less than by EUR 5 million compared to prior period. These savings are not simply short-term reduction. It reflects the structural lean operating model we are currently implementing. What next? Let us have a look now on Voltalia energy sales. Thanks to new capacity, we mentioned it, South Africa, Uzbekistan, with a bit lower ramp-up than expected, but with now a full operation. We increased slightly the production by 1%, though we are still facing some challenges in Brazil and French Guiana. One of them, curtailment in Brazil slightly decreased. Finally, we recognize the past compensation. As a result, the turnover increased by 29% to EUR 158 million, while EBITDA increased by 32%.

Speaker #3: These savings are not simply a short-term reduction. They reflect the structural linear operating model we are currently implementing. What's next? Let's have a look now at Voltalia's energy sales.

Speaker #3: Thanks to new capacity—we've mentioned it—South Africa, Uzbekistan, with a bit lower ramp-up than expected but now with full operation. We increased slightly the production by 1 percent, though we are still facing some challenges in Brazil and French Guiana.

Speaker #3: One of them, curtailment in Brazil, slightly decreased. And finally, we recognize the past compensation. As a result, the turnover increased by 29% to €158 million, while EBITDA increased by 32%.

Speaker #3: It means we did improve EBITDA margin. Against this, wind resources and availability were weaker compared to the prior period, especially in Brazil and French Guyana. Biomass assets there only restarted in May.

Sylvine Bouan: It means we did improve EBITDA margin. Against this, wind resources and availability were weaker compared to prior periods, especially in Brazil and French Guiana biomass assets only restarted in May. On H2 of this year, the priority are clear. Restore availability, complete the ramp-up of the plants which have been commissioning in the last month, maintain a tight and operating cost control. The recovery levers are identified, and delivery remain our main objective. Let us now have a look and a focus on where we stand with the curtailment. Reduction in volume is a positive signal. You can see it on the chart, but it is too early to consider normalization of Brazilian operating environment. Part of the lower curtailment is mechanically linked to weaker production in Brazil, but we must separate curtailment related to grid effects from resources and availability effects. Now regarding the accounting of the compensation.

Speaker #3: In the second half of this year, the priorities are clear: restore availability, complete the ramp-up of the plants which have been commissioned in the last months, and maintain tight operating cost control.

Speaker #3: The recovery levers are identified, and delivery remains our main objective. Let's now have a look and focus on where we stand with the curtailment.

Speaker #3: Reduction in volume is a positive signal. You can see it on the chart. But it's too early to consider normalization of the Brazilian operating environment.

Speaker #3: Part of the lower curtailment is mechanically linked to weaker production in Brazil, but we must separate curtailment related to grid effect from resource and availability effects.

Speaker #3: Now, regarding the accounting of the compensation, we recognize a revenue and receivables in our books this year because we finally managed to get clear evidence of the amount and agree with the administration about how much we can get as a recovery.

Sylvine Bouan: We recognize the revenue and receivables in our books this year because we finally managed to get clear evidence of amount and agree with the administration about how much we can get as a recovery. It relates to past curtailment, September 2023, November 2025. It definitely supports our H1 figure, but we should not consider that this amount will be recurring in our books. We will, and we are still continuing negotiating for curtailment further November 2025 to get compensation. Indeed, the effect of curtailment is different between EBITDA and net result. Why that?

Speaker #3: It relates to past curtailment—September 23, November 25. It definitely supports our H1 figure. But we should not consider that this amount will be recurring in our books. We will, and we are still, continuing negotiations for curtailment further past November 25 to get compensation.

Speaker #3: Indeed, the effect of curtailment is different between EBITDA and net result. Why is that? We have actually, first of all, recognized some taxes related to this compensation.

Sylvine Bouan: We have actually, first of all, recognized some taxes related to this compensation, and simultaneously, we did book an impairment of some of solar assets in Brazil because we reviewed our midterm assumptions in term of curtailment, and therefore assumed that the prudent approach was to decrease by around EUR 8 million, the value of some solar assets in Brazil. Therefore, the effect of the curtailment compensation is by EUR 19 million on the net income. Let's now move to another business line, Helexia. The growth is driven by dynamic European energy sales activity. Production increased by 12% to 323 GW. Turnover by 8% increased by EUR 32.5 million. Broadly stable for the EBITDA, EUR 21 million. The challenge sits below EBITDA across the portfolio. European energy sales remain resilient, but services is not enough profitable. In Brazil, activity remain unprofitable.

Speaker #3: And simultaneously, we did book an impairment of some of the solar assets in Brazil because we reviewed our mid-term assumptions in terms of curtailment. And therefore, we assumed that a prudent approach was to decrease by around €8 million the value of some solar assets in Brazil.

Speaker #3: Therefore, the effect of the curtailment compensation is by €19 million on the net income. Let's now move to another business line, Elexia. The growth is driven by dynamic European energy sales activity.

Speaker #3: Production increased by 12% to 323 gigawatt-hours, turnover by 8%, increased by €32.5 million. It's broadly stable for the EBITDA, €21 million. The challenge sits below EBITDA.

Speaker #3: Across the portfolio, European energy sales remain resilient, but Services is not profitable enough. In Brazil, activity remains unprofitable. With the average project depth rising to €459 million, the cost of debt increased by 56% to €21.5 million.

Sylvine Bouan: With an average project debt rising EUR 459 million, the cost of debt increased by 56% to EUR 21.5 million. It reflects an environment of local interest rate increase. Bear in mind that in Brazil, inflation indexed financing on assets are not yet for Helexia Brazil producing full capacity, so we do not have yet the revenue generation to absorb and repay the financial cost, which creates a discrepancy. We therefore accelerate, complete the commissioning plan, and support with a restructuring plan to reverse the situation. The objective in Helexia is to continue to grow on the top line, to improve the EBITDA, to assume a cash discipline to get better returns. Let's now move to Renvolt. For the H1, Renvolt increased by 45% to EUR 124 million turnover. EBITDA doubles to EUR 12.5 million.

Speaker #3: It reflects an environment of local interest rate increases. Bear in mind that, in Brazil, inflation index financing on assets is not yet in place for Elexia Brazil producing at full capacity.

Speaker #3: So, we do not have yet the revenue generation to absorb and repay the financial cost, which creates a discrepancy. We therefore accelerate and complete the commissioning plan, and support with a restructure plan to reverse the situation.

Speaker #3: The objective in Elexia is to continue to grow on the top line, to improve the EBITDA, and to assume a cash discipline to get better returns.

Speaker #3: Let's now move to Renvolt. For the first half, Renvolt increased by 45% to €124 million turnover. EBITDA doubled to €12.5 million. EBITDA margin, which is a real success, increased to 10%, which is the target for 2030 and has already been reached.

Sylvine Bouan: EBITDA margin, which is a real success, increased to 10%, which is the target 2030, which is already reached. Growth is supported by both construction and maintenance. We have more than 760 MW under construction for third-party clients, mainly in Europe. We operate more than 1.2 GW under maintenance contract. The backlog stands at approximately EUR 300 million, which is equivalent to 2.3 times last year, 2025 turnover. It provides visibility. At the same time, we are protecting the quality of growth, reducing as much as we can monitor risk and monitoring warranty control. This is essential to convert the backlog in cash and secure our margin. Here, Renvolt is delivering a profitable growth with an increasing recurrence and visibility. To wrap up, all what we've been through are here consolidated within our two segmental reporting energy sales and Renvolt. We do also have the hub.

Speaker #3: Growth is supported by both construction and maintenance. We have more than 750 megawatts under construction for sub-party clients, mainly in Europe. We operate more than 1.2 gigawatts under maintenance contract.

Speaker #3: The backlog stands at approximately €300 million, which is equivalent to 2.3 times last year's 2025 turnover. It provides visibility. At the same time, we are protecting the quality of growth, reducing as much as we can, monitoring risk, and monitoring key controls.

Speaker #3: This is essential to convert the backlog into cash and secure our margin. Here, Renvolt is delivering profitable growth with increasing recurrence and visibility.

Speaker #3: To wrap up, all we've been through is here consolidated within our two segmental reporting: Energy Sales and Renvolt. We also have the hub.

Speaker #3: So you can see here that the group turnover reached €331 million. Energy sales represent 57% of the total; Renvolt, 37%. At the EBITDA level, energy sales contribute €116 million.

Sylvine Bouan: The group turnover reached EUR 331 million. Energy sales represent 57% of the total, Renvolt 37%. At EBITDA level, energy sales contribute to EUR 116 million. All major businesses improved. Operate costs stands at EUR 10.3 million and includes some transformation and M&A related expenses. The group is benefiting from better performance in energy sales, development, and services while underlying Helexia performance still needs to improve. Overall, EBITDA is up by 35%, but the earning bridge does not stop at the EBITDA. Let's have a look on the bottom line. Moving below EBITDA, the H1 net result reflects both the expansion of our asset base and the cost transformation. From EUR 110.3 million EBITDA, we have, in addition, depreciation and provision, which amounts to EUR 89 million.

Speaker #3: All major businesses improved. Corporate costs stand at €10.3 million and include some transformation and M&A-related expenses. The group is benefiting from better performance in energy sales, development, and services, while underlying Elexia performance still needs to improve.

Speaker #3: Overall, EBITDA is up by 35%. The earnings bridge does not stop at the EBITDA, so let's have a look at the bottom line. Moving below EBITDA, the first-half net result reflects both the expansion of our asset base and the cost transformation.

Speaker #3: From €110.3 million EBITDA, we have in addition depreciation and provisions, which amount to €89 million. This includes a full year effect of recently commissioned assets, as for amortization, and approximately €10 million of impairment.

Sylvine Bouan: This includes the full year effect of recently commissioned assets for amortization and approximately EUR 10 million of impairment, and regular guarantee provision linked to our regular activity of Renvolt. It also includes other operating items such as SPRING and Helexia restructuring costs. Financial results stands at -EUR 48.6 million. Increase is driven by higher average debt, higher cost of average debt which rose overall from 6.14% to 6.3%, which is partially explained by our South Africa and Brazil scheme of inflation index related to also revenues indexed. Taxes and other items represent -EUR 11.9 million, mainly reflecting the Brazilian tax. This leads to a consolidated net result of -39 and -EUR 43 million of net loss group share. What we can here conclude is that we do really have operational improvement, but challenges remain within the restructuring, the cash discipline, and the financial recovery.

Speaker #3: And regular guarantee provision linked to our regular activity of Renvolt. It also includes other operating items, such as Spring and Elexia restructuring costs. Financial results stand at minus €48.6 million.

Speaker #3: Increase is driven by higher average debt, higher cost of average debt, which was overall from 6.14% to 6.3%, which is partially explained by our South Africa and Brazil scheme of inflation index, related to also revenues indexed.

Speaker #3: Taxes and other items represent minus €11.9 million, mainly reflecting the Brazilian tax. This leads to a consolidated net result of minus €39 million and minus €43 million of net loss, group share.

Speaker #3: What we can here conclude is that we do really have operational improvement, but challenges remain within the restructuring, cash discipline, and financial recovery.

Speaker #3: Let me now walk you through the financial balance sheet and structure of Voltalia. Our balance sheet is designed around the long-term, contracted nature of the asset base.

Sylvine Bouan: Let me now walk you through the financial balance sheet and structure of Voltalia. Our balance sheet is designed around long-term contracted nature of the asset base. Approximately 79% of the fixed assets are operating project. Development assets represent the next source of earning growth. Gross debt is predominantly project related. EUR 1.7 billion of project debt finance is the main part compared to EUR 945 million of corporate debt and EUR 70 million of shareholder loan. On interest rate exposure, 75% of the debt is fixed hedge or inflation index, leaving only 25% as variable. Most important, the project debt has an average maturity of 12.6 years versus 16.6 years of remaining PPA life. This positive duration gap provides structural protection and visibility. The average all-in cost is 6.3%, while the net leverage stands at 68%, so de-leveraging remains a central priority for us.

Speaker #3: Approximately 79% of the fixed assets are operating projects. Development assets represent the next source of earnings growth. Growth debt is predominantly project related: €1.7 billion of project debt finance is the main part, compared to €945 million of corporate debt and €70 million of shareholder loan.

Speaker #3: On interest rate exposure, 75% of the debt is fixed, hedged, or inflation-indexed, leaving only 25% as variable. Most importantly, the project debt has an average maturity of 12.6 years versus 16.6 years of remaining PPA life.

Speaker #3: This positive duration gap provides structural protection and visibility. The average holding cost is 6.3%, while net leverage stands at 68%. So deleveraging remains a central priority for us.

Speaker #3: To sum up, long-dated contracted revenues support the financing model, but the capital discipline is now definitely to reduce the leverage. Let's now have a look at the cash generation.

Sylvine Bouan: To sum up, a long dated contracted revenue support the financing model, but the capital discipline is now definitely to reduce the leverage. Let's now have a look to the cash generation. From 25 June to 26 June, we improved the cash position by EUR 108 million. Walking you through from December to June, what happened? We started with a EUR 314 million cash, which have been improved thanks to operating cash flow by EUR 102 million. While we did spend some CapEx, total CapEx actually both for development and for our plans of 139, and get a net amount of additional financing of EUR 49 million. At the end of the period, our cash position improved to reach EUR 343 million of cash. This is another key example of the financial translation of the action plan we are now undertaking.

Speaker #3: From June 25 to June 26, we improved the cash position by €108 million. Walking you through from December to June, what happened? So, we started with a €314 million cash balance, which has been improved thanks to operating cash flow by €102 million.

Speaker #3: While we did spend some capex—total capex actually—both for development and for our plans of €139 million, we also got a net amount of additional financing of €49 million.

Speaker #3: At the end of the period, our cash position improved to reach €343 million of cash. This is not a key example of the financial translation of the action plan we are now undertaking.

Speaker #3: So let's now have a look, looking forward to the remaining part of 2026. We are confirming our EBITDA 2026 objectives of €210 to €230 million.

Sylvine Bouan: Let's now have a look looking forward on the remaining part of 2026. We are confirming our EBITDA 2026 objective from 210 to EUR 230 million. The H1 provides a base of approximately EUR 109 million from development and energy sales, EUR 13 million from Renvolt, and minus EUR 11 million from other activity together with corporate costs. We do expect from the H2 of the year the following contributions. Development and energy sales are expecting to contribute for the 105 to EUR 120 million, supported by recently commissioned assets and improved availability plan on H2. Renvolt expect to contribute within 5 to EUR 15 million through backlog conversion, as I mentioned it to you priorly, additional maintenance contract as well. Other activity and corporate costs are expected to be in a range of minus EUR 10 million.

Speaker #3: The first half provides a base of approximately €109 million from Development and Energy Sales, €13 million from Renvolt, and minus €11 million from other activity together with corporate cost.

Speaker #3: We do expect, from the second half of the year, the following contribution: Development and energy sales are expecting to contribute, for now, a further €105 to €120 million.

Speaker #3: Supported by recently commissioned assets and an improved availability plan in the second half, Renvolt expects to contribute within five to fifteen million euros through backlog conversion, as I mentioned to you previously.

Speaker #3: Additional maintenance contract as well. Other activity and corporate costs are expected to be in a range of minus €10 million. The principal sensitivities remain resources and curtailment, as well as the transaction timing of the M&A spring planning we are now working on.

Sylvine Bouan: The principal sensitivity remain resources and curtailment, as well as the transaction timing of the M&A stream planning we are now working on. Therefore, the EBITDA target is supported by some key operating and identified levers. I will now address the items below EBITDA. We indeed revised the net result outlook for 2026. We expect a full year net loss, including in the H2, despite maintaining the EBITDA targets. Therefore, the change is driven by three factors below EBITDA. First, some loss-making activities, particularly Helexia Brazil. We continue to carry on high financial cost while the commissioning and the full speed performance is not yet delivered and delay, and therefore waits on the net result. Second, the corporate debt remains temporarily higher while the SPRING disposal program is implementing, with a final target to reduce the net debt to EBITDA ratio.

Speaker #3: Therefore, the EBITDA target is supported by some key operating and identified levers. I will now address the items below EBITDA. We have indeed revised the net result outlook for 2026.

Speaker #3: We expect a full-year net loss, including in the second half, despite maintaining the EBITDA target. Therefore, the change is driven by three factors below EBITDA.

Speaker #3: First, some loss-making activities, particularly electric Brazil. We continue to carry on high financial costs while the commissioning and the full speed performance are not yet delivered, and the delay therefore weighs on the net result.

Speaker #3: Second, the corporate debt remains temporarily higher while the spring disposal program is being implemented, with the final target to reduce the net debt to EBITDA ratio.

Speaker #3: And third, we consider some impairment to reflect an overall prudent approach, as we have to have a leaner and more performant company within the next months.

Sylvine Bouan: Third, we consider some impairment to reflect an overall prudent approach that we have to have a leaner and more performance company within the next months. This is a realistic reset, not a change in our ambition and not questioning the operational improvements we've already achieved and I shared with you this morning. Let me close by summarizing the objectives for the full year 2026. Our 2026 operational and EBITDA objectives remain unchanged. We continue to target approximately 3.6 GW in operation and construction, including around 3 GW in operation. We also confirm a group EBITDA of 210 to EUR 230 million, including 190 to 210 million from energy sales. At the same time, we are clear that the full year net result is now expected to be negative.

Speaker #3: This is a realistic reset—not a change in our ambition, and not a questioning of the operational improvements we've already achieved and that I shared with you this morning.

Speaker #3: Let me close by summarizing the objectives for the full year '26. Our '26 operational and EBITDA objectives remain unchanged. We continue to target approximately 3.6 gigawatts in operation and construction, including around 3 gigawatts in operation.

Speaker #3: We also confirm a group EBITDA of €210 to €230 million, including €190 to €210 million from energy sales. At the same time, we are clear that the full-year net result is now expected to be negative.

Speaker #3: Our response, our action plan, is execution discipline: to continue to improve in all operational KPIs and complete the ramp-up of recent assets, conversion of backlog, reducing structural costs, and delivering the planned disposal.

Sylvine Bouan: Our response, our action plan is execution discipline to continue to improve in all operational KPI and complete the ramp-up of recent assets. Conversion of backlog, reducing structural costs. Delivery the plan disposal. These actions are central to SPRING, to our objectives to restore a sustainable profitability, stronger cash generation, and progressive deleveraging. The overall message is we are confident in the operating fundamentals, combined with financial realism and firm execution discipline. I will now leave the floor back to Robert for the SPRING execution plan.

Speaker #3: These actions are central to our objectives to restore sustainable profitability, stronger cash generation, and progressive deleveraging. The overall message is: we are confident in the operating fundamentals, combined with financial realism and a firm execution discipline.

Speaker #3: I will now hand the floor back to Robert for the Spring execution plan.

Speaker #2: Thank you very much, Sylvie. Let me now give an update on Spring. One year after its launch, Spring is now fully in execution, and most actions are on track.

Robert Klein: Let me now give an update on SPRING. One year after its launch, SPRING is now fully in execution and most actions are on track. We are moving from implementation to visible operational and financial effects, as you have been able to see with Sylvine. We are starting to see the first recurring benefits through simplification, workforce optimization, and stronger cost discipline. At the same time, we are reinforcing financial discipline with closer cash monitoring, more selective CapEx, stricter portfolio decisions, and clear focus, especially on deleveraging. These benefits will build progressively as SPRING moves towards completion by H1 2027. Our objective goes beyond SPRING. We are building the Voltalia of tomorrow, a more profitable and focused company, easier to understand, with a clearer business model and positioning.

Speaker #2: We are moving from implementation to visible operational and financial effects, as you have been able to see with Sylvie. We are starting to see the first recurring benefits through simplification, workforce optimization, and stronger cost discipline.

Speaker #2: And at the same time, we are reinforcing financial discipline with closer cash monitoring, more selective capex, stricter portfolio decisions, and a clear focus—especially on deleveraging.

Speaker #2: And these benefits will build progressively as Spring moves towards completion by the first half of 2027. But our objective goes beyond Spring. We are building the Voltalia of tomorrow.

Speaker #2: A more profitable and focused company, easier to understand, with a clearer business model and positioning. Now, let me take you through concrete progress and achievements across each spring or sprint that you can see in the slide.

Robert Klein: Now let me take you through concrete progress achievement across each SPRING work stream that you can see in the slide. On portfolio refocusing, we continue to concentrate on our core geographies. Five country exits were identified last year, with two additional exits targeted by year-end. On workforce optimization, around 160 positions have already been addressed, representing approximately 80% of our targeted reduction program. More specifically, in France, this affects around 100 positions, including 80 related to the completion of the social plan, what we call the PSE in French. In Brazil, around 40 positions, and for each Portugal and the United Kingdom, around 10 positions. On cost efficiency, we have already delivered EUR 16 million of recurring savings versus H1 2025, including EUR 12 million from development and prospecting activities alone.

Speaker #2: On portfolio refocusing, we continue to concentrate on our core geographies. Five country exits were identified last year, with two additional exits targeted by year-end.

Speaker #2: On workforce optimization, around 160 positions have already been addressed, representing approximately 80% of our targeted reduction program. More specifically, in France, this affects around 100 positions, including 80 related to the completion of the social plan—what we call the PSE in French.

Speaker #2: In Brazil, around 40 positions, and for each—Portugal and the United Kingdom—around 10 positions. On cost efficiency, we have already delivered €16 million of recurring savings versus the first half of 2025.

Speaker #2: And that includes €12 million from development and prospecting activities alone. I will come back to illustrate that we are on track with our plan in the second focus.

Robert Klein: I will come back to illustrate that we are on track with our plan in the second focus on the next slide. About disposals, a very important one. Most of the processes have now been launched, and discussions are progressing with multiple counterparties. While we cannot, and you will understand, we cannot disclose further details at this stage, we remain fully aligned with our objective of EUR 300 million to EUR 350 million for H1 2027. Clearly, at the same time, we are ready to be flexible on timing when needed to maximize value rather than compromise on price. Finally, on performance improvements, we are moving from identification to delivery, with early evidence already visible in the operational performance of some of our assets, as well as Renvolt, which doubled its EBITDA to reach EUR 2 million.

Speaker #2: On the next slide, about disposals—this is a very important one. Most of the processes have now been launched, and discussions are progressing with multiple counterparties. While we cannot—and you will understand we cannot—disclose further details at this stage, we remain fully aligned with our objective of €300 million to €350 million for the first half of 2027.

Speaker #2: But, clearly, at the same time, we are ready to be flexible on timing when needed to maximize value, rather than compromise on price. Finally, on performance improvements.

Speaker #2: We are moving from identification to delivery, with early evidence already visible in the operational performance of some of our assets. As well as Involved, which doubled its EBITDA in the first half to reach €2 million.

Speaker #2: Overall, we are making good progress on Spring, with concrete milestones across all areas of the plan. Then, one of the first focuses is the portfolio refocusing.

Robert Klein: Overall, we are making good progress on SPRING with concrete milestones across all areas of the plan. One of the first focuses, the portfolio refocusing. Our priority is no longer to maximize the size of the pipeline. You know that already. It is to focus on the projects with the highest probability of conversion and strongest value creation potential. As part of SPRING, we have totally reviewed our development portfolio and introduced a clearer maturity framework. This approach allows us to allocate capital more selectively, and as a matter of fact, improve expected returns and reduce execution risk. It also helps us better serve a broader range of stakeholders, from utilities and governments through PPAs to corporate companies through what we call the CPPA, corporate PPA, including data centers.

Speaker #2: Our priority is no longer to maximize the size of the pipeline—you know that already. It is to focus on the projects with the highest probability of conversion and the strongest value creation potential.

Speaker #2: As part of spring, we have totally reviewed our development portfolio and introduced a clearer maturity framework. This approach allows us to allocate capital more selectively and, as a matter of fact, improve expected returns and also reduce execution risk.

Speaker #2: It also helps us better serve a broader range of offtakers, from utilities and governments through PPAs, to corporate companies through what we call the CPPA, or corporate PPA, including data centers.

Speaker #2: At the same time, hybrid projects combining renewable generation and storage are taking a growing share of our pipeline, reflecting the increasing demand for flexible energy solutions.

Robert Klein: At the same time, hybrid projects combining renewable generation and storage are taking a growing share of our pipeline, reflecting the increasing demand for flexible energy solutions. Going forward, we will of course continue to present this development funnel, providing a clear view of our project maturity, conversion potential, and future growth opportunities. Next point, regarding the savings. We are ahead of plan. Let's take a moment to explain where we stand. In H1 2026, we delivered EUR 60 million of recurring savings compared with H1 2025. This is around 60% more than transformation costs of the same period, which was EUR 10 million. It is also important to remember that transformation costs are temporary while those savings are recurring and will continue to improve our cost base going forward.

Speaker #2: Going forward, we will, of course, continue to present this development funnel, providing a clear view of our project maturity, conversion potential, and future growth opportunities.

Speaker #2: Next, points regarding the savings. We are ahead of plan. Let me take a moment to explain where we stand. In the first half of 2026, we delivered €60 million of recurring savings compared with H1 2025.

Speaker #2: This is around 60% more than the transformation cost of the same period, which was €16.10 million. It is also important to remember that transformation costs are temporary.

Speaker #2: While those savings are recurring and will continue to improve our cost base going forward. Now, to compare our performance with our original target, we need, of course, to use the same baseline: 2024.

Robert Klein: Now, to compare our performance with our original target, we need, of course, to use the same baseline, 2024. On this basis, we have already achieved 21 million of savings for six months, on the base of six months, EUR 18 million from development and prospecting, and EUR 3 million from structural costs. I can say that overall, we are generating savings faster than expected, and this gives us, of course, confidence in our ambition of reaching the EUR 45 million of average annual recurring savings between 2026 and 2030. I remind you, 35 million from development and prospecting and 10 million from structural costs. Moving now to our last focus, performance. Let me highlight an important point regarding our 2030 Energy sales EBITDA margin target to go from 70% to 72%. The improvement will come from two complimentary sources.

Speaker #2: On this basis, we have already achieved then 21 million of savings for six months. On the base of six months. 18 million euros from development and prospecting and 3 million euros from structural cost.

Speaker #2: And I can say that, overall, we are generating savings faster than expected, and this gives us, of course, confidence in our ambition of reaching the €45 million of average annual recurring savings between 2026 and 2030.

Speaker #2: I remind you: €35 million from development and prospecting, and €10 million from structural cost. And moving now to our last focus, performance. Let me highlight an important point regarding our 2030 energy sales EBITDA margin target.

Speaker #2: To go from 70% to 72%, the improvement will come from two complementary sources. First, our existing operating portfolio, where we are working on production and availability, revenue recovery, cash generation, and cost efficiency.

Robert Klein: First, our existing operating portfolio, where we are working on production and availability, revenue recovery, cash generation, and cost efficiency. Second, new power plants entering into operation with structurally higher margins. On our existing fleet, these actions are already delivering results, and it will be improved month after month. For example, we have reduced the operation and maintenance, as well as asset management costs in Greece and in Brazil, as well as solar insurance costs on some of our assets. All together, those initiatives already represent around EUR 2.7 million of annual savings. We are only at the beginnings. As we progressively roll out those initiatives across our geographies, it's obvious that the impact will continue to grow over time. Moving now to our medium-term outlook. The targets, of course, are supported by four key drivers: the contracted visibility, the asset performance, SPRING savings, and financial discipline.

Speaker #2: Second, new power plants are entering into operation with structurally higher margins. Then, on our existing fleet, these actions are already delivering results and this will be improved.

Speaker #2: Month after month. For example, we have reduced operation and maintenance costs, as well as asset management costs, and in Brazil, we have also seen a decrease in solar insurance costs for some of our assets.

Speaker #2: All together and already those initiatives already represent around 2.7 million euros of annual savings. And we are only at the beginning. As we are progressively roll we progressively roll out those initiative across our geographies it's obvious that the impact will continue to grow over time.

Speaker #2: Moving now to our medium-term outlook. The targets, of course, are supported by four key drivers: contracted visibility, asset performance, spring savings, and financial discipline.

Speaker #2: 2026 is a first step towards, as Sylvain mentioned, stronger performance in 2027 and towards, of course, our 2030 margin and leverage objectives. Our focus remains the same: building a more profitable, cash-disciplined, resilient growth model with development and IPP at the core.

Robert Klein: 2026 is the first step towards, as Sylvine mentioned, stronger performance in 2027 and towards, of course, our 2030 margin and leverage objectives. Our focus remains the same, building a more profitable, cash discipline, resilient growth model with development and IPP at the core. We are concrete now. Let's come to our 2027 and 2030 objectives. First, our 2027 operating and EBITDA objectives remain unchanged. We continue to target around 4.2 GW in operation and construction, including 3.7 GW in operation. We also confirm our EBITDA target of EUR 300 million to EUR 325 million, including EUR 270 million to EUR 300 million coming from the energy sales. Looking further ahead, our 2030 objectives also remain unchanged, around 5 GW in operation and construction, 70% to 72%, as I mentioned earlier, of energy sales EBITDA margin improvements, and a 9% to 11% improvement for Renvolt margin.

Robert Klein: 2026 is the first step towards, as Sylvine mentioned, stronger performance in 2027 and towards, of course, our 2030 margin and leverage objectives. Our focus remains the same, building a more profitable, cash discipline, resilient growth model with development and IPP at the core. We are concrete now. Let's come to our 2027 and 2030 objectives. First, our 2027 operating and EBITDA objectives remain unchanged. We continue to target around 4.2 GW in operation and construction, including 3.7 GW in operation. We also confirm our EBITDA target of EUR 300 to 325 million, including EUR 270 million to EUR 300 million coming from the energy sales. Looking further ahead, our 2030 objectives also remain unchanged, around 5 GW in operation and construction, 70% to 72%, as I mentioned earlier, of energy sales EBITDA margin improvements, and a 9% to 11% improvement for Renvolt margin.

Speaker #2: We are concrete now. Let's come to our 2027 and 2030 objectives. First, our 2027 open rating and EBITDA objectives remain unchanged. We continue to target around 4.2 gigawatts in operation and construction, including 3.7 gigawatts in operation.

Speaker #2: We also confirm our EBITDA target of €300 million to €325 million, including €270 million to €300 million coming from energy sales. Looking further ahead, our 2030 objectives also remain unchanged.

Speaker #2: Around 5 gigawatts in operation and construction; 70 to 70, as I mentioned earlier, of energy sales. EBITDA margin improvements, and a 9% to 11% improvement for Renvolt margin.

Speaker #2: And net, for the deleveraging, net debt to EBITDA of 7.5 to 8 times. These targets, of course, are supported by strengthening and building stronger asset performance, and, of course, our disposal program, which is so important for progressive deleveraging.

Robert Klein: And net for the deleveraging, net debt to EBITDA, of 7.5 to 8 times. These targets, of course, are supported by SPRING with building stronger asset performance and, of course, our disposal program, so important for progressive deleveraging. However, as I mentioned earlier, on disposals, we want to maximize value rather than compromise on price, and this may result in some transactions taking more time than initially planned. For this reason, and given the uncertainty on the timing of disposals, we are suspending, and only suspending, our positive net result objective for 2027, as well as a related, of course, dividend objective for 2028. This is only a prudent decision. It does not change our direction or our operating on our EBITDA ambitions. Let me now conclude with our key priorities for execution. This is the final slide. Let me conclude with four clear messages.

Speaker #2: However, as I mentioned earlier, on disposals we want to maximize value rather than compromise on price, and this may result in some transactions taking more time than initially planned.

Speaker #2: For this reason, and given the uncertainty on the timing of disposals, we are suspending—and only suspending—our positive net result objective for 2027.

Speaker #2: As well as the related, of course, dividend objective for 2028. This is only a prudent decision—it does not change our direction or our operating or our EBITDA ambitions.

Speaker #2: Let me now conclude with our key priorities for execution. And this is the final slide. Let me conclude with four clear messages. First, one year into Spring, the transformation is delivering operational, tangible results.

Robert Klein: First, one year into SPRING, the transformation is delivering operational tangible results. A lower cost base, a simpler organization, stronger operational performance supported by a better governance. Second, we are refocusing our business model. Development is becoming more selective. We are improving the performance of our assets, and we are more disciplined in our capital allocation. Third, financial discipline remains at the center of our execution. Of course, we continue to secure project financing, strengthen liquidity, and develop strategic funding options, as you've been able to see with the proposed partnership with IFC. As you've been able to see today, despite improving operational performance, we now expect a net loss in 2026. This is obviously not satisfactory. It reflects the pressures below EBITDA and shows that our transformation is not yet complete. However, this does not change the direction of SPRING.

Speaker #2: A lower cost base, a simpler organization, and stronger operational performance, supported by better governance. Second, we are refocusing our business model. Development is becoming more selective, we are improving the performance of our assets, and we are more disciplined in our capital allocation.

Speaker #2: Third, financial discipline remains at the center of our execution. Of course, we continue to secure project financing, strengthen liquidity, and develop strategic funding options, as you've been able to see with the proposed partnership with IFC.

Speaker #2: Despite improving, as you've been able to see today, despite improving operational performance, we now expect a net loss in 2026. This is obviously not satisfactory.

Speaker #2: It reflects the pressures below EBITDA and shows that our transformation is not yet complete. However, this does not change the direction of spring. On the contrary, it reinforces the need to continue and accelerate the transformation, particularly on cash generation, disposals, and therefore deleveraging.

Robert Klein: On the contrary, it reinforces the need to continue and accelerate the transformation, particularly on cash generation, disposals, and therefore de-leveraging. This brings me to my final message, our priority is to turn SPRING progress into sustainable value creation. This means delivering our 2026 priorities, executing our disposal program, and of course, progressively de-leveraging the company. Of course, we remain prudent on the pace of the transition, but our ambition remains clear, to make Voltalia a top performer with profitability, discipline, and execution as our key priorities. Thank you very much for having been there for this presentation and listening to us. We are now ready to take your question.

Speaker #2: And this brings me to my final message—our priorities to turn spring progress into sustainable value creation. This means delivering on our 2026 priorities, executing our disposal program, and, of course, progressively deleveraging the company.

Speaker #2: Of course, we remain prudent on the pace of the transition, but our ambition remains clear: to make Voltalia a top performer, with profitability, discipline, and execution as our key priorities.

Speaker #2: Thank you very much for being here for this presentation and listening to us. We are now ready to take your questions.

Speaker #1: Thank you, sir. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question via conference call may press star followed by one on their touch-tone telephone.

Operator 2: Thank you, sir. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question via conference call may press star and 1 on their touch-tone telephone. To remove your question, press star and 2. Please note that you may also ask written questions via webcast. The first question is from Arthur Sitbon of Morgan Stanley.

Operator: Thank you, sir. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question via conference call may press star and 1 on their touch-tone telephone. To remove your question, press star and 2. Please note that you may also ask written questions via webcast. The first question is from Arthur Sitbon of Morgan Stanley.

Speaker #1: To remove your question, press star and two. Please note that you may also ask written questions via webcast. The first question is from Artur Sitbon of Morgan Stanley.

Speaker #3: Yes. Hello thank you for taking my my questions. I have to. The the first one is I was wondering you you mentioned a few reasons but I was wondering what is the main driver really of the of the cut on on net income expectations for 2026 because that cut is I understand at least 40 million euro and it happened just in in a month basically from end of July when you did the the trading statement to now.

Arthur Sitbon: Yes. Hello, thank you for taking my questions. I have two. The first one is, you mentioned a few reasons, but I was wondering what is the main driver really of the cut on net income expectations for 2026? Because that cut is, I understand, at least EUR 40 million, and it happened just in a month, basically from end of July when you did the trading statement to now. Is it that some sale processes are going less well than expected and maybe before you assume some capital gains linked to that, and now you assume some impairments? Because I struggle to see how the higher debt could be so meaningful to lead to more than EUR 40 million of negative impact. That's the first part of the question on the guidance. The second one is on 2027. What is exactly leading to the suspension of the target?

Speaker #3: Is it that some sale processes are going less well than expected and maybe before you assumed some capital gains linked to that and now you assume some some impairments because I I struggled to see how the the higher debt could be so meaningful to lead to to more than 40 million euro of of of negative of negative impact.

Speaker #3: That's the first part of the question on the guidance. The second one is on 2027. What is exactly leading to the suspension of the target? Because the timeline of your disposal plan doesn't seem to have changed, so is it also linked to expectations of impairments versus capital gains on disposals?

Arthur Sitbon: Because the timeline of your disposal plan doesn't seem to have changed. Is it also linked to expectations of impairment versus capital gains on disposals? The second question on a totally different topic, on the Pecém data center project, I was wondering if you could provide a bit more detail on what will be Voltalia's role exactly. Will you basically just build the power plants and sell the electricity via PPA, or is there also the monetization of some powered land, some grid connection that could take place and lead to development gains? Thank you very much.

Speaker #3: And the second question, on a totally different topic: on the PESM data center project, I was wondering if you could provide a bit more detail on what will be Voltalia's role exactly.

Speaker #3: Will you basically just build the power plants and sell the electricity via PPA, or is there also the monetization of some powered land, some grid connection, that could take place and lead to development gain?

Speaker #3: Thank you very much.

Speaker #2: Okay. Will you sit in for the first two questions, and then we'll take the third one?

Robert Klein: Okay. We listen for the first two questions, and then we'll take the third one. Sylvine?

Speaker #3: Yep. Thank you, Artur, for your question. So, first of all, coming back to the results being negative in 2026, and the main reason why.

Sylvine Bouan: Yep. Thank you, Arthur, for your question. First of all, coming back to the results to be negative in 2026 and the main reason why. What I was trying and explaining is that it's structure one is structurally in Voltalia net result negative due to the seasonality effect, point one. Point two, indeed, we have a negative impact which is linked to non-profitable activity. I mentioned in the presentation, for instance, Helexia Brazil is definitely negatively weighting on our net results. The point and the reason why, and you will say why it was not anticipated. The fact is that in Brazil, you do have a delay, Helexia Brazil, in the delivery of the commissioning of the plants, which therefore do not generate as much as we plan expected operating cash flow, and therefore it has an impact on our P&L.

Speaker #3: What I was trying to explain is that, structurally, Voltalia's net result is negative in Q2 due to the seasonality effect. That's the first point.

Speaker #3: Point two: indeed, we have a negative impact which is linked to non-profitable activity. I mentioned in the presentation, for instance, Elixia Brazil is definitely negatively weighing on our net result.

Speaker #3: The point and the reason why—and you will say why it was not anticipated—the fact is that in Brazil you do have a delay, Elixia Brazil, in the delivery of the commissioning of the plants, which therefore do not generate as much as we planned, expected operating cash flow, and therefore it has an impact on our P&L.

Speaker #3: So the second question is: in this case, why did you not mention, and why didn't you share, that point earlier within the year? The reason is the following.

Sylvine Bouan: The second question is in this case, why you did not mention and why you did not share that point earlier within the year. The reason is the following. At the time of the Q2 publication in July, the information available in the progress of the disposal plan still supported the assumption of sufficient contribution for 2026. This is the main reason why in July we did not mention. To answer question, the main driver is non-profitable activity due to delay in commissioning, which is part of it. Second of all, the reason why we mention it now, it is because of the combined impact of all the expectation and the targets, especially in term of disposal plan, which make us confident, sure that we had to indicate not a positive result for 2026. Then second point is why do we suspend 2027 net result?

Speaker #3: At the time of the Q2 publication in July, the information available on the progress of the disposal plan still supported the assumptions of sufficient contribution for 2026.

Speaker #3: So, this is the main reason why in July we did not mention it. So, to answer the question: is the main driver, it's non-profitable activity due to the delay in commissioning, which is part of it.

Speaker #3: Second of all, the reason why we mention it now is because of the combined impact of all the expectations and the targeted actions, especially in terms of the disposal plan, which makes us confident to indicate a not positive result for 2026.

Speaker #3: The second point is why do we suspend the 2027 net result. The fact is, as you mentioned, we do have a disposal program—the spring disposal program—which is expected to provide us with total cash in of €300 to €350 million.

Sylvine Bouan: The fact is, as you mentioned, we do have a disposal program, the SPRING disposal program, which is expected to provide us of a total cash in of EUR 300 to EUR 350 million. We actually did launch a lot of actions, projects, which are now underway. They are either in phase 1 or even recent received from NBO and are processing now the data opening data room and are expecting by the end of the year some binding offer. What we want to do is to select and to take the best project, I would say, of disposal, which creates the more value for the company and which are the better for the company restructuring plan. Having said that, it means that, and everyone knows that M&A is quite difficult to predict.

Speaker #3: We actually did launch a lot of actions projects which are now underway. They are either in phase one, or we even recently received some NBO and are processing now the data, opening the data room, and are expecting by the end of the year some binding offer.

Speaker #3: What we want to do is to select and take the best project, I would say, of disposal, which creates the most value for the company and which is better for the company's restructuring plans.

Speaker #3: Having said that it means that and we everyone knows that M&A is quite un difficult to predict we consider that instead of telling you now an amount and then in six months to say we have a positive impact because of this transaction and then a negative impact with another transaction there are two big volatility linked to the M&A programs that we prefer to suspend and to inform you once we deliver each of the disposal program.

Sylvine Bouan: We consider that instead of telling you now an amount and then in six months to say we have a positive impact because of this transaction and then a negative impact with another transaction, there are two big volatility linked to the M&A program that we prefer to suspend and to inform you once we deliver each of the disposal program. This is the main reason why instead of giving some indication which may change, we prefer to say, okay, let us freeze, and once we have more visibility, we share with you. That was for question one and two, and as for the last one, I hand over to Roby.

Speaker #3: So this is the main reason why, instead of giving some indication which may change, we prefer to say, 'Okay, let's freeze, and once we have more visibility, we share with you.'

Speaker #3: So that was for questions one and two, and as for the last one, I hand over to Robi.

Speaker #2: Yes. Thank you for the question. Indeed this is what you you mentioned in PESM. We've been working for for a long time to the to the other with other competitors in in this location which is a very good very good location in Brazil for data center because that is possibility to take advantage of the arrival of fiber optic cables especially in PESM.

Robert Klein: Yes, thank you for the question. Indeed, this is what you mentioned, Bessan. We have been working for a long time together with other competitors in this location, which is a very good location in Brazil for data center because there is a possibility to take advantage of the arrival of fiber optic cables, especially in Pecém or close to Pecém. Our role is developing the project, securing the connection, securing the land, the permitting, et cetera, in order to monetize indeed, this project. Not only we want to be an energy infrastructure partner, also supply the energy thanks to the pipeline we have in Brazil, especially with wind projects which are ready to build.

Speaker #2: Or close to PESM, and our role is developing the project: securing the connection, securing the land, the permitting, etc., in order to monetize indeed this project. But not only—we want to be an energy infrastructure partner, also supplying the energy thanks to the pipeline we have in Brazil, especially with wind projects which are ready to build.

Speaker #2: Then basically, it's both recognizing the development activities we've been doing so far in that very specific place, and negotiating and signing corporate PPAs with those data centers that will require a lot of energy in order to be able to run.

Robert Klein: Then basically it is both monetizing the development activities we have been doing so far in that very specific place, negotiating and signing corporate PPAs with those data centers that will require a lot of energy in order to be able to run. In Brazil, it has been now reconducting a tax incentive program, and we just had the outcome that we are eligible to this tax incentive program that will allow us to show a very competitive project towards co-locators or hyperscalers, et cetera.

Speaker #2: And in Brazil it's been now reconducting an incentive tax incentive program and we we just had the the output the outcome that we are eligible to this tax incentive program that will allow us to show a very competitive projects towards collocators or hyperscalers etc.

Arthur Sitbon: Just to follow up, and to be entirely clear on that one, you will be linked to the Pecém data center project. You will be generating EBITDA linked to the sale of electricity via PPA at some point when the data center comes online. But you will also generate EBITDA coming from the sale of a site or just from a PPA?

Speaker #1: So just to follow up, to be entirely clear on that one, you will be linked to the PESM data center project. You will be generating EBITDA linked to the sale of electricity via a PPA at some point when the data center comes online.

Speaker #1: But you will also generate EBITDA coming from the sale of a site, or just from a PPA?

Speaker #2: From both. This is what I said: monetizing then all the development activities to sell the projects, and be, hopefully, profitable with EBITDA generation. And also EBITDA generation through the PPAs once the data center will start operation, and we will start also generating electricity on both.

Robert Klein: From both. This is what I said, monetizing all the development activities to sell the projects and being hopefully profitable with an EBITDA generation. Also EBITDA generation through the PPAs once the data center will start operation and we will start also generating electricity on both. This is our expectations.

Speaker #2: This is our expectations.

Speaker #1: Okay. Thank you very much.

Arthur Sitbon: Okay. Thank you very much.

Speaker #2: This is the aim of the project at the end.

Robert Klein: This is the aim of the project at the end.

Operator 2: As a reminder, if you wish to register for a question, please press star and one on your touchtone telephone.

Operator: As a reminder, if you wish to register for a question, please press star and one on your touchtone telephone.

Speaker #4: As a reminder, if you wish to register for a question, please press star and one on your touchtone telephone.

Speaker #2: And.

Robert Klein: Thank you.

Speaker #4: The next question is from Philip Alpacian of Adobe HF.

Operator 2: The next question is from Philip Aubertin of ODDO BHF.

Operator: The next question is from Philip Aubertin of ODDO BHF.

Speaker #5: Yes, good morning to all of you. I hope you are hearing me well. I have several questions. One is a follow-up concerning the Arthur questions.

Philip Aubertin: Yes. Good morning to all of you. Hope you are hearing me well. I have several. One is a follow-up concerning the Arthur Sitbon questions on Pecém. How are you treating this deal? Because it is a little bit particular. Are you including it in the divestments, meaning including the EUR 300 to EUR 350 million you are expecting, or is it considered as operating, meaning EBITDA for the PPA? I could understand that, but the land disposal would be treated as non-recurring as a business which is including as divestment or not? That is my first question. The second question is concerning the curtailment. You were mentioning at some point, a target of EUR 36 million some months ago. Where we are currently, what is your last estimation of the impact on the full year basis? Two other questions are mainly linked to the losses.

Speaker #5: On PESM, how are you treating this deal? Because it's a little bit particular. Are you including it in the divestments—meaning including the €300–350 million you're expecting—or is it considered as operating? I mean, EBITDA for the PPA, I could understand that, but the land disposal would be treated as non-recurring. As a business, is it included in a divestment or not?

Speaker #5: That's my first question. The second question is concerning the curtailments. You mentioned at some point a target of 36 million some months ago.

Speaker #5: Where we are currently, what is your latest estimation of the impact on a full-year basis? And two other questions are mainly linked to the losses.

Speaker #5: Could you just help us figure out what the landing point is going to be? You mentioned that financial charges are going to be higher, linked to what you said concerning the level of debt and Brazil.

Philip Aubertin: Could you just help us to figure out what is going to be the landing point? Because you mentioned that financial charges are going to be higher, linked to what you mentioned concerning the level of debt in Brazil. Could you just help us to have a rough figure, which could be the Q2, I would say, impact of that? Also concerning the net losses, do we have to take almost the double of H1 for the full year? Last point is concerning the 2026 guidance in terms of EBITDA. The EUR 29 million are included. What is today your estimate of this compensation level on a full year basis as you are still working on that? Do we consider that the EUR 29 million is already achieved, meaning we may have more than that? Just to have an idea about where we have to land. Many thanks.

Speaker #5: Could you just help us to have a a rough figure what could be the the Q2 I would say impact of that and also concerning the net losses are are we do we have to to take almost the double of H1 for the full year and last point is concerning the guidance 26 in terms of ABDA the 29 million are included what is today your estimates of this compensation level in a full year basis as you are still working on that do we consider that the 29 is already achieved the mean and we may have more than that just in order to have an idea about where we have to land.

Speaker #5: Many thanks.

Speaker #2: Okay. We'll take the first one, and we'll take the other ones. No, the answer is no to your first one. Actually, we consider PESM as business as usual.

Robert Klein: Okay, we take the first one, and then we take the other ones. No, the answer is no to your first one. Actually, we consider Pecém as a business as usual. As we are developing projects, it could be energy projects and now it could be data center projects as an infrastructure energy partner. It is not included in the EUR 300 to EUR 350 million divestments as you asked me. Let us say consider as if we were selling a ready-to-build solar or wind project, like it is part of our business model every year. Sylvine?

Speaker #2: You know, as we are developing projects, it could be energy projects, and now it could be data center projects. As an infrastructure energy partner...

Speaker #2: Then it's not included in the 300 to 350 million euros divestments as you you asked me. Then it's let's say consider as if we were selling a ready to build we we it's part of our business model every year.

Speaker #3: Yes. So, Philip asked for your questions. As for the curtailment, I believe the amount you mentioned is the one that was budgeted—curtailment at 26, without any kind of compensation.

Sylvine Bouan: Yes. So Philippe, as for your questions, as for the curtailment, I believe the amount you mentioned is the one which was budgeted curtailment 2026 without any kind of compensation. This is what we are trying to reflect, that we notice and we can recognize that there is a step-by-step year-on-year, a slight decrease in percentage of the curtailment, 1 point for this period compared to the prior period. So we assume that this amount will continue to decrease. We have no, as per target in term of curtailment for 2026 and what we budgeted, we are in line, and we have no deviation for 2026. One point is that it weighs a little bit more, compared to our budget, because we build the budget with a seven reais exchange rate, while we are now a bit more than six reais per euro.

Speaker #3: So, what we do—and this is what we are trying to reflect—is that we notice and we can recognize that there is, step by step, year on year, a slight decrease in the percentage of the curtailment, 1 point, for this period compared to the prior period.

Speaker #3: So we assume that this decrease— and we have no specific targets in terms of curtailment for 2026— and what we budgeted is in line, and we have no deviation for 2026.

Speaker #3: One point is that it weights a little bit more compared to our budget, because we built a budget with a 7 reais exchange rate, while we are now a bit more than 6 reais per euro.

Speaker #3: So, it weighs a little bit in our group contributions. For financial cost—cost of financing—we expect not a significant increase for the second half. I would say the percentage which I presented, 6.3%, will maybe be slightly increased, but not very significantly.

Sylvine Bouan: It weighs a little bit in our group contributions. Financial cost of financing, we expect not a significant increase for the H2. I would say the percentage, which is I presented 6.3%, will be maybe a slight increase, but not very significantly. This is going to be narrowed on H2 compared to H1. In term of net loss, indeed we have a group loss of -40 at the end of H1. We do have two things to consider here. The first one is our run activity, and the second part is the net result impact of the divestment plan. As for our running activity, as I was explaining what weighs on our P&L, it is this non-profitable activity, and we indeed do not expect to go further that the loss of the one that we had for the first semester.

Speaker #3: So this is going to be a mirror on H2 compared to H1. In terms of net loss, indeed, we have a group loss of minus 40 at the end of H1.

Speaker #3: We do have two things to consider here. The first one is our run activity, and the second part is the net result impact of the disbursement plan.

Speaker #3: So, as for our running activity, as I was explaining, what weighs on our P&L is this non-profitable activity, and we indeed do not expect to go further than the loss of the first—the one that we had for the first semester.

Speaker #3: Having said that, I put a caveat out. I know it's not comfortable, but I'm sharing with you also what is the day-to-day life within Voltalia—saying we have a big program of disbursements. We have some potential significant profits from this program, some of which are not profit but can be loss depending on when they will happen, and this creates the volatility I mentioned.

Sylvine Bouan: Having said that, I put a caveat. I know it is not comfortable, but I am sharing you also what is the day-to-day life within Voltalia, saying we have a big program of divestments. We have some potential significant profits from this program. Some of them which are not profit but can be loss, depending when they will happen, and this creates the volatility I mentioned. I just put this note, which is important. Then, the last question, I think was the 29. We do not expect any further compensation related to this period or any future period for this year. We are still firmly having discussions, but not anything to be booked within the year.

Speaker #3: So I just put this note, which is important. And then the last question, I think, was the 29th. So we do not expect any further compensation related to this period or any future period for this year.

Speaker #3: We are still strongly having discussions, but nothing is to be booked within the year.

Speaker #5: Many thanks Edwin. Very clear.

Philip Aubertin: Many thanks, Sylvine. Very clear.

Speaker #3: Thank you.

Sylvine Bouan: Thank you.

Speaker #1: Once again, please press star and one on your telephone during the conference call to ask questions, while written questions may be submitted via the webcast. The next question is from Juan Rodriguez of Kepler.

Operator 2: Once again, please press star and 1 on your telephone from the conference call for questions, while written questions may be made via webcast. The next question is from Juan Rodriguez of Kepler.

Operator: Once again, please press star and 1 on your telephone from the conference call for questions, while written questions may be made via webcast. The next question is from Juan Rodriguez of Kepler.

Speaker #5: Hi. Thank you. Good morning. Thank you for taking our questions. I have two follow-ups from my side, if I may.

Juan Camilo Rodriguez: Hi. Thank you. Good morning. Thank you for taking our questions. I have two follow-ups from my side, if I may. The first one is on the disposal program that you signal and the ongoing discussions for it. I want to better understand why the difference in the timing that you've seen, what you initially expected a year ago. It's mainly on the asset review on your side and the impairment charges that you've been having on some assets. It's mainly on investor interest and the expected valuation that you're going to get. I want to better understand this timing change. The second one is on the 2027 EBITDA guidance that is confirmed. Are you including any curtailment compensation for this guidance as you are including for 2026? What are your curtailment assumptions given that 2026 curtailment is slightly above what you expected?

Speaker #5: The first one is on it's on the disposal program that that you signal and the and the ongoing discussions for it. I want to better understand why is the difference in the timing that you've seen what you initially expected a year ago is mainly on the asset review on your side and the impairment charges that you've been having on assets is mainly on investor interest and the expected valuation that you're going to get I want to to better understand this this disbursements timing change and the second one is is on the guidance that is confirmed.

Juan Camilo Rodriguez: The second one is on the 2027 EBITDA guidance that is confirmed. Are you including any curtailment compensation for this guidance as you are including for 2026? What are your curtailment assumptions given that 2026 curtailment is slightly above what you expected? The third one is, are any disposals effects included on EBITDA, or is it going to be mainly below EBITDA in 2027? Thank you.

Speaker #5: I want to ask: are you including any corrective compensation for this guidance, as you are including for 2026? The second question is, what are your curtailment assumptions, given that 2026 curtailment is slightly above what you expected?

Speaker #5: And the third one is: are any disposal effects included in EBITDA, or is it going to be mainly below EBITDA in 2027? Thank you.

Juan Camilo Rodriguez: The third one is, are any disposals effects included on EBITDA, or is it going to be mainly below EBITDA in 2027? Thank you.

Speaker #2: Yes. Thank you Juan. I will take the the first one maybe you can take the second one. Then basically it's what it's what regarding our disposal plan it's roughly what you said and it's a pretty diverse actually the reasons.

Robert Klein: Thank you, Juan. I will take the first one, maybe you can take the second one. In this case regarding our disposal plan, it's roughly what you said, and it's pretty diverse actually, the reasons of taking more time. Sometimes it's because the process takes more time because it's a bit more complex than we were expecting. On the other cases, basically, we prefer to take more time in order to be able to maximize the price. This is what I said during the presentation, and that's the reason why we could have an offset of planning in term of asset disposal program.

Speaker #2: Of taking more time sometimes it's because the process takes more time because it's a bit a bit more complex that we were expecting. On the other cases basically we prefer to take more time in order to be able to maximize the price then it's it's this is what I said during the presentation and that's that's the reason why we could have another set of of planning in term of asset disposal program.

Speaker #3: Second question—one was about the assumptions for 2027 EBITDA. So, we did not book any potential compensation in our 2027 targets in respect of curtailment.

Sylvine Bouan: Second question, Juan, was about the assumption for 2027 EBITDA. We did not book any potential compensation in our 2027 target in respect of curtailment in our plan. The third question, which is about disposal, indeed, most of them will impact below EBITDA because it is not a sale of assets, but it is mainly sale of activity business lines, so it is going to be below EBITDA.

Speaker #3: For in our plan. And the second, the third question, which is about disposal—indeed, most of them will impact below EBITDA, because it's not a sale of assets, but it's mainly a sale of activity, business lines, or so. It's going to be below EBITDA.

Juan Camilo Rodriguez: And a follow-up, if I may. What are your curtailment assumptions on your budget?

Juan Camilo Rodriguez: A follow-up, if I may. What are your curtailment assumptions on your budget?

Speaker #5: And, if I may follow up, what are your curtailment assumptions on your budget?

Speaker #3: Yes. Sorry for I forgot that one. I apologize. For the for budget budget for the budget 2020 sorry for the budget 2027 the amount is estimated to be 20.

Sylvine Bouan: Yes, sorry. I forgot that one. I apologize.

Juan Camilo Rodriguez: Thank you.

Sylvine Bouan: For the budget 2027, the amount is estimated to be EUR 20. Just to give you an overview, this amount is below the one of 2026, but is actually in line with what we anticipated when we built our PMC. Because then after, we expect 20 to decrease again a little bit. When now we review our curtailment assumption, you've heard I explained that we book an impairment of EUR 8 million on some solar assets in Brazil because we reviewed mid, long-term assumptions for curtailment. So we assume that in a normalized environment where we will still have some curtailment, at least for the discrepancy between offer and demand, we do rely on the 5% to 10% curtailment. Just to give a clear indication about short-term, long-term vision.

Speaker #3: Just just to to give you an overview this amount is below the one of 2026 but is actually in line with what we anticipated and when we build our P&T because then after we expect 20 to decrease again a little bit and when now we reviewed our curtailment assumption you've you've heard I explained that we book an impairment of 8 million on some solar assets in Brazil because we reviewed mid long term assumptions for curtailments.

Speaker #3: So, we assume that in a normalized environment—where we will still have some curtailment, at least for the discrepancy between offer and demand—we do rely on a 5 to 10% curtailment.

Speaker #3: Just to give a clear indication about our short-term and long-term vision.

Speaker #5: Quite clear. Thank you very much.

Juan Camilo Rodriguez: Quite clear. Thank you very much.

Operator 2: There are no more questions registered on the conference call at this time. Back to you for any written questions.

Operator: There are no more questions registered on the conference call at this time. Back to you for any written questions.

Speaker #1: There are no more questions registered on the conference call at this time. Back to you for any written questions.

Speaker #3: Let's move now to the question from the platform. Let me read it now. So, there are several questions related to disbursements, so I will maybe select several—one of them.

Sylvine Bouan: Let's move now to the question from the platform. Let me read it now. There are several questions related to divestment. I will maybe select several one of one. This one is, could you update us about the divestment plan as you confirm the 300, 350 target and about the planning?

Speaker #3: Could you update us about the disbursement plan? As you confirm the 300–350 target, and about the planning.

Speaker #2: This is what we said earlier with the question we had. Basically, we have already launched most of the process for the asset disposal program.

Robert Klein: Then this is what we said earlier with the question we had. Basically, we have launched already most of the process for the asset disposal program. Then, we have received some deals. We are negotiating with the counterparties. The data room are being opened or are going to be opened in some cases. That's the reason why we expect closing those deals on the H1 2027. Unfortunately, we cannot at this stage, and you will understand for the best of the price of the processes, we cannot disclose precisely what are the operation in progress. But a big team is dealing with that, and we have done quite a lot of progress.

Speaker #2: Then we have received some NBOs. We are negotiating with the counterparties. The data rooms are being opened or are going to be opened in some cases.

Speaker #2: And that's the reason why we expect closing those deals on the first half of 2027. Unfortunately we cannot at this stage and you will understand for the best of of of the price of the of the processes we cannot disclose precisely what are the the operation in progress.

Speaker #2: But I mean a big team is is dealing with that and we have been quite a lot of progress but there is a a matter of timing as I answered to Juan just earlier where basically we may take some more time some for some of some of the transactions in order to get the best price.

Robert Klein: But that is a matter of timing, as I answered to Juan just earlier, where basically we may take some more time for some of the transactions in order to get the best price, as is usual in an M&A process.

Robert Klein: That is a matter of timing, as I answered to Juan just earlier, where basically we may take some more time for some of the transactions in order to get the best price, as is usual in an M&A process.

Speaker #2: As is usual, you know, in an M&A process.

Speaker #3: I have a question from CIC, from Emmanuel. One question related to keeping going on the disbursement plan. The question is about Alexia. You highlighted Alexia's performance.

Sylvine Bouan: I have a question from Emmanuel. One question related to keep going on divestment plan. The question about Helexia. You highlighted Helexia performance, which is weaker than expected, particularly in Brazil and in services. Could this be a candidate for divestment under the SPRING plan?

Speaker #3: Which is weaker than expected, particularly in Brazil and in services. Could this be a candidate for disbursement under the spring plan?

Speaker #2: Well, as I mentioned before, we cannot at that stage disclose the transactions. Then basically you have to make up your own mind about what are the candidates that we are thinking about.

Robert Klein: Well, as I mentioned before, we cannot at that stage disclose the transactions. But basically, you have to do your own mind about what are the candidates that we are thinking about. But indeed, we are looking at all the options and including, of course, Helexia. But as Sylvine mentioned during the presentation, it's a matter of the performance of Helexia, which is not in line with our expectation in 2000. On the H1 2026 is really related about the offset from the financing and the generation of revenues, the high cost of financing and some delays on the commissioning of the plants.

Speaker #2: But indeed we are looking at all the options and including of course Alexia but as as Sigrid mentioned during the presentation it's a matter of the the performance of Alexia which is not in line with our expectation in 2000 on the on the first half and 2026 is really related about the offset from the financing and the generation of of revenues the high cost of financing and some delays on on the on the commissioning of the plans.

Speaker #3: Additional question from CIC, Emmanuel Chevalier. In your target of €100 to €120 million EBITDA for NAD spares in the second half of the year, have you made any further assumptions regarding compensation related to curtailment in Brazil?

Sylvine Bouan: Additional question from Emmanuel Chevalier. In your target of EUR 100 to 120 million EBITDA for energy sales in the H2 of the year, have you made any further assumptions regarding compensation related to curtailment in Brazil? Same question applies to 2027 targets.

Speaker #3: And the same question applies to the 2027 target. Yes. Actually, I think we have covered it, but better to repeat: so indeed, we do not expect any additional compensation in the second half of this year.

Sylvine Bouan: Yeah.

Sylvine Bouan: Yeah. Actually, I think, we covered it, but better to repeat. So indeed, we do not expect any additional compensation in the H2 of this year, and we did not build our 2027 target with any compensation of curtailment. We have included a EUR 20 million of curtailment cost, but no curtailment compensation in 2027.

Speaker #3: And we did not build our 2027 targets with any compensation for curtailment. We have included €20 million of curtailment cost, but no curtailment compensation in 2027.

Speaker #2: In addition, and this was saying that it's not because we have not considered any further compensation in '26, '27, and later on, that we are giving up.

Robert Klein: In addition, it is worth saying that it is not because we have not considered any compensation, further compensation in 2026, 2027, and later on that we are giving up. We are still together with associations, fighting in order to be able to recover at least part of the losses due to the curtailment. Still actively participating to the negotiation with the government in order to recover it.

Speaker #2: We are still together with associations, fighting in order to be able to recover at least part of the losses due to the curtailment. Then still actively participating in the negotiation with the government in order to recover it.

Speaker #3: And I can see a final question from CIC related to leverage without significant disbursement. What is the projected financial leverage at the end of the year?

Sylvine Bouan: I can see a final question from CFA related to leverage. Without significant divestment, what is the projected financial leverage at the end of the year?

Speaker #3: So the the targeted leverage for Voltalia we said it since we we launched spring. We we have to be leveraged and we will be leveraged through the disposal program.

Sylvine Bouan: The targeted leverage for Voltalia, we have said it since we launched SPRING. We have to deleverage, and we will deleverage through the disposal program. To improve the net debt to EBITDA ratio, we are improving operation, and I hope I convince you by showing how operating cash flow improved for the period, and we continue working on that. Point one. But the main driver is definitely the disposal program. This really, again, and I know that to plan, and this is also our goal to have the best view what will happen in 2026, what will happen in 2027, but between 2026 and 2027, thanks to this disposal plan, it will also decrease the leverage of the group.

Speaker #3: So, to improve the net debt to EBITDA ratio, we are improving operations, and I hope I convinced you by showing how operating cash flow improved for the period. We continue working on that.

Speaker #3: Point one. But the main driver is definitely the disposal program. So this really, again—and I know that to plan, and this is also our goal—to have the best view of what will happen in '26, what will happen in '27. But, between '26 and '27, thanks to this disposal plan, it will also decrease the leverage of the group.

Sylvine Bouan: Additional to the question of CFA related to development and IPP and specifically IPP activity, a question from Nicolas Royot. The EBITDA contribution of IPP related to H2 seems conservative given the higher contribution of recent assets, seasonality, and recovery expected of availability. Did you expect higher curtailment? Or do you expect also restructuring costs and impairment expected in H2?

Speaker #3: In addition to the question from CIC related to disbursement and IPP, and specifically IPP activity, there is a question from Nicolas Ruyo. The EBITDA contribution of IPP related to H2 seems conservative, given the higher contribution of recent assets.

Speaker #3: Seasonality and recovery expected of availability. Did you expect higher curtailment, and do you also expect restructuring costs and impairment expected in H2?

Speaker #2: No. Actually you cannot consider that we are going necessarily to double the the the EBITDA on the first half is considering the 29 million euros which will not happen again on the second second half and we have considered the seasonality effect on the second half to reflect let's say a higher normalized EBITDA.

Robert Klein: Actually, you cannot consider that we are going necessarily to double the EBITDA on the first half is considering the EUR 29 million, which will not happen again on the second half. And we have considered the seasonality effect on the second half to reflect, let's say, a higher normalized EBITDA. It means without further curtailment compensation. We are not considering any degradation on the curtailment on the second, and we are not necessarily even prudent regarding, we are realistic regarding the generation of electricity on the second half, and therefore the generation of EBITDA.

Speaker #2: It means without further curtailment compensation. We are not considering any degradation on the curtailment on the second, and we are not necessarily very prudent regarding—I mean, we are realistic regarding the generation of electricity in the second half and, therefore, the generation of EBITDA.

Speaker #3: Let's move to a question related to disbursement. Thomas Sutter asks about the disposal plan under Spring. Are you planning to sell assets by region, or will you try to sell everything in a small number of transactions—one or two portfolios of assets to one or two buyers?

Sylvine Bouan: Let's move to a question related to divestment. Thomas Fitterer asks about the disposal plan at the SPRING. Are you planning to sell assets by region, or will you try to sell everything in a small number of transactions, one or two portfolio of assets to one or two buyers? Also, are your discussion mainly with financial buyer or utilities? Thank you.

Speaker #3: Also, are your discussions mainly with financial buyers or utilities? Thank you.

Speaker #2: Well, it's a last question, actually, and regarding—considering the large disposal program that we have, I mean most of what you said is forecasted.

Robert Klein: Well, it's a large question actually. Regarding considering the large disposal problem that we have, most of what you said is forecasted. Actually, we prefer, of course, to reduce the number of transactions because it's less work to be done in order to conduct all those processes. But in some cases, for instance, the exit of a country, of course, we prefer to sell the platform rather than selling assets by assets. Obviously, it could create more value at the same time, less work, and then less cost in order to be able to conclude those transactions. Really it depends case by case, according to the objects and according to the market, according to the appetite of the market, that we have several configurations here. You ask the potential buyers also, they are diverse.

Speaker #2: Actually, we prefer, of course, to reduce the number of transactions because it's less work to be done in order to conduct all those processes.

Speaker #2: But in some cases, for instance from the executor country, of course, we prefer to sell the platform rather than selling assets by assets. Obviously, it could create more value, at the same time less work, and then less cost in order to be able to conclude those transactions.

Speaker #2: Then really, it depends case by case, according to the objects and according to the market, according to the appetite of the market. Then we have several configurations here.

Robert Klein: Really it depends case by case, according to the objects and according to the market, according to the appetite of the market, that we have several configurations here. You ask the potential buyers also, they are diverse. It could be fund, it could be platforms, could be utilities, and depending, of course, of the disposal we are talking about.

Speaker #2: And and and you ask the the the potential buyers also it's they are diverse. This could be fund. It could be platform. It could be utilities.

Robert Klein: It could be fund, it could be platforms, could be utilities, and depending, of course, of the disposal we are talking about.

Speaker #2: I mean, and depending, of course, on the disposal we are talking about.

Speaker #3: I can see that I didn't ask the final part of the question of Nicolas Ruyo. Are you accounting for restructuring costs and impairment expected in H2 2026 additionally?

Sylvine Bouan: I can see that I didn't ask the final part of the question of Nicolas Royot. Are you accounting for restructuring cost and impairment expected in H2 2026 additionally?

Speaker #3: So aside from our disposal program no we do not expect significant impairment expected in H2. In the way that what we were saying before if we have to impair some assets within a sell process we will reflect it in our books depending on the the value creation.

Sylvine Bouan: Aside from our disposal program, no, we do not expect significant impairment expected in H2 in the way that what we were saying before. If we have to impair some assets within a sale process, we will reflect it in our books, depending on the value creation. But apart from that part, there are no major impairment expected.

Speaker #3: But apart from that part, there are no major impairments expected. We also have a question related to the market conditions regarding raising debt.

Sylvine Bouan: We have also a question related to the market condition related to raising debt. What is the market currently? Is it difficult, bearing in mind that in parallel with upcoming financing with the IFC gives you more flexibility?

Speaker #3: What is the market currently? Is it difficult, bearing in mind that, in parallel, the upcoming financing with the IFC gives you more flexibility? So I would say the overall environment for any company in the market is facing an increase in interest rates.

Sylvine Bouan: Well, I would say, the overall environment for any company in the market is facing increase of interest rates. As we do in Voltalia, and we are infrastructure company with a balanced structure with an amount of debt, which is therefore important and which is drawing the attention. What I would like to remind, and this is something we try to message, to convey to you, is that we do have within our debt, I would say two types of debt, because we have, on one hand, the project debt, which is the 62% of our debt, which is the one linked to our PPA long-term revenues. We negotiate at the beginning before the construction, then we fix, we hedge, or we index the interest, and then the life is moving on, I would say, of that debt.

Speaker #3: As we do at Voltalia, we are an infrastructure company with a balance sheet structure that includes a significant amount of debt, which is therefore important.

Speaker #3: And which is drawing the attention. What I'd like to remind and this is something we try to message to convey to you is that we do have within our debts I would say two types of debts because we have on one hand the project debts which is the one and it's 62 percent of our debt which is the one linked to our PPA long term revenues we negotiate at the beginning before the construction.

Speaker #3: Then we fixed—we had, or we indexed, the interest and then life is moving on, I would say, for that debt.

Speaker #3: So this is really something which is frozen at the moment we contract. And on the other hand, we have the rest of the debt, which is supporting financing our development and activity.

Sylvine Bouan: This is really something which is frozen at the moment we contract. On the other hand, we have the rest of the debt, which is supporting financing our development and activity. For sure, we are now controlling and indeed optimizing the cash flow generation of our operations to reduce the net debt to EBITDA ratio because the higher net debt to EBITDA ratio I have, the less favorable, I would say, condition I can capture. We do have some debt indeed. We are negotiating. We have some loans which are expiring, extending. We are having always some negotiations. Things are going, but indeed, you are right, the environment makes it at a higher cost than it used to be in 2 to 3 years. Finally, for the IFC, to make it clear, the IFC is really one of the milestone of SPRING.

Speaker #3: So for sure we are now controlling and and indeed optimizing the cash flow generation of our operations to reduce the net debt to EBITDA ratio because the higher net debt to EBITDA ratio I have the less favorable I would say condition I can I can capture.

Speaker #3: So, we do have some debts, indeed. We are negotiating. We have some loans which are expiring, extending. We are always having some negotiations.

Speaker #3: Things are going, but indeed you're right—the environment makes it at a higher cost than it used to be two to three years ago.

Speaker #3: And finally, for the IFC—so to make it clear, the IFC is really one of the milestones of spring. So, the IFC project is a partnership with the International Finance Corporation to co-invest in equity in some emerging countries, as Robert mentioned.

Sylvine Bouan: The IFC project is a partnership with the International Finance Corporation to co-invest in equity in some emerging countries that Robert mentioned to support and to share risk and reward, I would say, and to do bigger projects in sometimes some countries, which could weigh too much in our balance sheet. We diversify actually with a partner, a long-term partner, and this is really what we want to develop and to continue to do in SPRING. So it is a co-partnering in investing in our equity for our energy saved activity, solar and desk activity. The last question I can see from All Invest, Claire Meilland, regarding the depreciation. You mentioned depreciations following the impact of curtailment in certain assets. Does it mean we should expect structural depreciations going forward? The answer is no. Now I will explain why.

Speaker #3: To support and to share risk and rewards, I would say, and to do bigger projects in, sometimes, some countries which could weigh too much on our balance sheet.

Speaker #3: So, it diversifies actually with a co-partner, a long-term partner, and this is really what we want to develop and to continue to do in spring.

Speaker #3: So, it's a co-partnering in investing in our equity for our energy sales activity, solar and debt activity. And the last question I can see is from All Invest, Claire Meillon.

Speaker #3: Regarding the depreciation, you mentioned depreciations following the impact of curtailment in certain assets. Does it mean we should expect structural depreciations going forward?

Speaker #3: So, the answer is no. Now, I will explain why. What we've done is, we said, okay, now we have finally negotiated, reached the agreement, and hopefully collected compensation, more than we expected.

Sylvine Bouan: What we have done, we said, okay, now we have finally negotiated, reached the agreement and hopefully collected compensation more than we expected. But we need also on a regular basis to review whether our assumptions in terms of curtailment were too much optimistic compared to how it is moving on or too much prudent. We have run a full review of our Brazilian assets. We did some technical impairment discounted cash flow forecast, and we end up with some impact for this solar plant. Why? Because, if you remember, we mentioned it, maybe it was one year ago, the curtailment does not affect the same way a wind plant, a solar plant, and so on. So solar were more affected, and this is the reason why that by working as a scenario, we feel it is more prudent to adjust the value of this asset.

Speaker #3: But we also need, on a regular basis, to review whether our assumptions in terms of curtailment were too optimistic compared to how it's moving on, or too free.

Speaker #3: We've run a full review of our Brazilian assets. Full. We did some technical impairment, discounted cash flow forecast, and we ended up with some impact for this solar trend.

Speaker #3: Why? Because, if you remember, we mentioned it—maybe it was one year ago—the curtailment does not affect a wind plant, a solar plant, and so on, in the same way.

Speaker #3: So solar were more affected and this is the reason why that by doing working on the scenario we feel it's more prudent to adjust the value of this asset hopefully I cannot predict the the future but hopefully with information we have in mind with the mid term I would say five years time five to ten percent curtailment I would say in a more regular environment and stable environment so we are not saying there will be no more curtailment we are saying there will be but at a lower path and maybe some disbalance unbalance sorry between offer and demand we expect the five to ten and reflecting this in our discounted cash flow end up with one impairment that we booked in June.

Sylvine Bouan: Hopefully, I cannot predict the future, but hopefully, with the information we have in mind with the midterm, I would say five years' time, 5% to 10% curtailment, I would say in a more regular and stable environment. So we are not saying there will be no more curtailment. We are saying there will be, but at a lower cost and maybe some disbalance, unbalance, sorry, between offer and demand. We expect the 5% to 10%. Reflecting this in our discounted cash flow end up with one impairment that we booked in Q4.

Speaker #3: And just to complete, when we say five to ten, it's because also there could be some curtain, which could be different if it's a solar plant or a wind plant. According to the moments, those assets could generate energy.

Robert Klein: Just to complete, we say 5% to 10%, it is because also there could be some curtailment which could be different if it is a solar plant or a wind plant according to the moment those assets could generate energy.

Speaker #3: Thank you, everybody. I think we can move to the conclusion, Robert. Well, you can say Robi as well; people call me Robi or Robert.

Sylvine Bouan: Thank you, everybody. I think we can move to the conclusion. Robert.

Robert Klein: Well, you can say Roby as well. People call me Roby or Robert. It is the same. First of all, I would like to thank you for attending that presentation. Thank you so much for those questions. As you have seen, I am not going to repeat my further conclusion, but hopefully we have been able to show you that the transformation actions are ongoing and we start to see and to measure some of the effects, even if there are still some way and some actions to be done. The teams also, it is important to talk about the team. They are more and more confident about the path we are going towards. They understand every time more about not only the needs that they have understood already some time ago when we started the transformation project. But now while they see some of the results, they feel, of course, every time more confidence.

Speaker #3: It's the same. First of all, I'd like to thank you for attending that presentation. Thank you so much for those questions. As you've seen, transform members—I'm going to repeat my further conclusion—but hopefully we've been able to show you that the transformation actions are ongoing and we are starting to see and measure some of the effects, even if there are still some ways to go and some actions to be done.

Speaker #3: It's also important to talk about the teams. They are more and more confident about the path we are going towards.

Speaker #3: They end up understanding more and more each time, not only about the needs they had already identified some time ago when you started the transformation project.

Speaker #3: But now they see why they see some of the results; they feel, of course, every time, more confidence. Of course, everyone—and we are the first—disappointed about the perspective of expectation of negative net results.

Robert Klein: But now while they see some of the results, they feel, of course, every time more confidence. Of course, everyone, and we are the first disappointed about the perspective of expectation of negative net results, but it does not affect the fact that we believe on the effects on the improvement of the operational performance, very soon on the financial performance. There are, yes, some possible offsets regarding asset disposal that we mentioned earlier. But what I would say is that we are on the right track, and I hope we have been able to show that to you. Thank you very much.

Robert Klein: Of course, everyone, and we are the first disappointed about the perspective of expectation of negative net results, but it does not affect the fact that we believe on the effects on the improvement of the operational performance, very soon on the financial performance. There are, yes, some possible offsets regarding asset disposal that we mentioned earlier. But what I would say is that we are on the right track, and I hope we have been able to show that to you. Thank you very much.

Speaker #3: But it does not affect the fact that we still believe in the effects and in the improvement of the operational performance, and very soon, in the financial performance.

Speaker #3: There are, yes, some possible offsets regarding asset disposal that we mentioned earlier. But what I would say is we are on the right track, and I hope we've been able to show that to you.

Speaker #3: Thank you very much. Thank you. Thank you. Ladies and gentlemen thank you for joining. The conference is now over and you may disconnect your telephones and your devices.

Sylvine Bouan: Thank you.

[Analyst]: Thank you.

[Analyst 2]: Thank you.

Operator 2: Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones and your devices.

Operator: Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones and your devices.

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Q2 2026 Voltalia SA Earnings Call

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