加载中...
共找到 24,906 条相关资讯
Operator: Good morning, ladies and gentlemen, and welcome to Vivo's Fourth Quarter and Full Year 2025 Earnings Call. This conference is being recorded, and the replay will be available at the company's website at ri.telefonica.com.br. The presentation will also be available for download. This call is also available in Portuguese. [Operator Instructions] [Foreign Language] I would like to inform you that all attendees will only be listening to the conference during the presentation, and then we will start the Q&A session when further instructions will be provided. Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects, operational and financial projections, and goals are the beliefs and assumptions of Vivo's Executive Board and the current information available to the company. These statements may involve risks and uncertainties as they relate to future events, and therefore, depends on circumstances that may or may not occur. Investors should be aware of events related to the macroeconomic scenario, the industry and other factors that could cause actual results to differ materially from those expressed in the respective forward-looking statements. Present at this conference, we have Mr. Christian Gebara, CEO of the company; Mr. David Melcon, CFO and Investor Relations Officer; and Mr. Jo o Pedro Soares Carneiro, IR Director. Now I'll turn the conference over to Mr. Jo o Pedro Soares Carneiro, Investor Relations Director of Vivo. Mr. Carneiro, you may begin your conference. João Carneiro: Good morning, everyone, and welcome to Vivo's Fourth Quarter and Full Year 2025 Earnings Call. Today, our CEO, Christian Gebara, will start by commenting on Vivo's performance and connectivity and digital services as well as present our main ESG accomplishments for the year. Then David Melcon, our CFO, will walk us through Vivo's controlled cost and CapEx evolution, free cash flow generation, profitability and shareholder distribution during 2025. With that, let me turn the call over to Christian. Christian Gebara: Thank you, Jo o. Good morning, everyone, and thank you for joining us today. I'm pleased to share that Vivo's 2025 performance was remarkable. We grew above inflation in all key lines, driven by solid commercial momentum and our continuous focus on offering the best customer experience in Brazil. Starting with mobile, the postpaid segment was a major highlight. Accesses expanded 6.5% year-over-year, reaching 70.8 million customers, now representing 69% of our mobile base. In fiber, we closed 2025 with 7.8 million homes connected and a footprint that extended to 31 million homes. This advance coupled with our commitment to quality and customer satisfaction reinforced our leadership in the fiber market and allowed us to accelerate fiber mobile convergence. Turning to our financial performance. Total revenues in the fourth quarter rose 7.1%, supported by balanced growth in both mobile and fixed services. Mobile service revenue progressed 7%, while fixed services improved 5.4%, reflecting the sustained contribution of fiber and corporate solutions. EBITDA grew 8.1% versus fourth quarter 2024. Excluding the effects of the concession migration from both years, EBITDA advanced 17.7% year-over-year, reflecting the success of our day-to-day execution. Operating cash flow also showed solid expansion, up 13.4% compared to 2024, representing 26.1% of our revenues. Net income grew at a double-digit rate in 2025, totaling BRL 7.2 billion for the year, while free cash flow increased by 11.4% to BRL 9.2 billion. These strong results enabled us to fulfill our promise of paying shareholders at least 100% of our annual net income. In 2025, we paid out BRL 6.4 billion, reaching a payout ratio of 103.4%. Next, on Slide 4, we illustrate how the transformation of our top line continues to advance, driven by diversified revenue mix and the rising contribution of our new businesses. Total revenues in the quarter reached BRL 15.6 billion, supported mostly by postpaid and FTTH that grew 9% and 9.8%, respectively. Notably, this quarter delivered the strongest growth in our handsets and electronics line in 3 years, up nearly 14% year-over-year, fueled by a broader portfolio, seasonal offers and a robust demand for electronics. Our new businesses also presented another standout year. Revenues increased 27% over the last 12 months and now account for 12.1% of total revenues, an expansion of 1.9 percentage points compared to the previous year. Both B2C and B2B solutions contributed meaningfully to this evolution, reflecting the success of our strategy to diversify our portfolio and scale digital services. Moving to the next slide. We continue to see the solid momentum of our mobile businesses boosted by Vivo's differentiated network quality and customer experience. By the end of 2025, our mobile base reached 103 million accesses, a year-over-year increase of 0.7%. Postpaid, including M2M and Dongles, remain the main growth engine, expanding 6.9% and surpassing 50 million customers for the first time. Adoption of 5G is accelerating rapidly. Our 5G customer base rose to 23.1 million users across 716 cities in Brazil. This pushed our 5G take-up ratio to 27.8%, an improvement of 8.6 percentage points in 1 year. This reflects not only the strength of our network, but also the value customers perceive in transitioning to newer technologies. Postpaid churn continued stable at 1%, while ARPU grew 5.8% year-over-year. Together, these indicators highlight the effectiveness of our retention initiatives as customers adopt higher value plans and demand more data. Overall, these results reinforced the strength of our mobile platform, a combination of superior network quality, disciplined commercial execution and a customer-centric approach that drives continued sustainable growth. On Slide 6, we dive deeper into the strength of our convergent proposition and how it's setting a new benchmark for quality and retention. As our fiber footprint expands, so does our capacity to attract new customers. Over the last year, we passed an additional 1.9 million homes, bringing the total to 31 million, while our take-up ratio improved to 25.2%. FTTH accesses maintained double-digit growth, increasing 12% year-over-year and reaching 7.8 million connections. This performance is once again propelled by Vivo Total, our flagship offer that combines the best mobile and fiber, which expanded 41% compared to last year in terms of subscribers. Today, 62.7% of our entire FTTH base is already converted to postpaid, out of which 43% through Vivo Total, reinforcing customers' clear preference for integrated solutions while also demonstrating the significant upside that we still have to further scale our convergent offer and improve customer loyalty across both postpaid and fiber services. In fact, fiber churn remains on a downward trend, reaching 1.4%, the lowest level in our history. This sustained improvement reflects both the quality of our network and the stickiness of Vivo Total's value proposition. Heading to Slide 7, we show how the evolution of our B2C segment is supported by the growing relevance of services that go beyond connectivity and positively impact our customers' lifetime value. In 2025, total B2C revenues reached BRL 44.8 billion, up 5% year-over-year. This performance reflects not only the solid resilience of our connectivity services, but also the strong momentum of our new businesses that grew 20.7% and now accounts for 3.3% of total revenues. We also saw consistent improvement in revenue per RGU that hit BRL 65.8. This increase is supported by our ongoing efforts to expand customer engagement, drive cross-selling and extract higher value from our existing base. Looking specifically at new businesses, we continue to see solid performance across all lines. Video and music OTTs remains the largest contributor, advancing 18.1% year-over-year. consumer electronics delivered another standout result, growing 36%, while the health and wellness category posted remarkable momentum with revenues rising close to 70% in the year. We are also strengthening the foundation for future expansion. Through Vivo Ventures, we approved an additional BRL 150 million for new investments with a particular focus on AI-driven initiatives, bringing the total investment capacity to BRL 470 million. And through our partnership with Perplexity, we are offering customers complementary 1-year subscription to Perplexity Pro, reinforcing our commitment to delivering differentiated digital experiences. All these developments underscore how Vivo was evolving into a broader digital platform where connectivity remains at the core but is increasingly complemented by diversified ecosystem of services designed to enhance our value proposition and improve monetization. Turning to next slide. We'll provide more details on Vivo's B2B strategy and how the ongoing shift in our revenue mix is quickly gaining traction. In 2025, B2B revenues amounted to BRL 13.5 billion, up 13.7% when compared to 2024. Digital B2B was once again the main growth engine, advancing 29.5% and now representing 8.8% of Vivo's revenues. Connectivity also maintained a healthy performance, rising 5.4% in the same period. Within digital B2B, all products continue to expand at a strong pace. Cloud revenues soared 37.8% followed by IoT and messaging at 25.9%. Digital Solutions at 22% and cybersecurity at 8.4% year-over-year. B2B continues to gain relevance within our revenue mix, increasing its shares by 140 basis points year-over-year. This strong performance in 2025 marked the segment's fastest annual expansion in recent years and reflects the accelerating demand from companies undergoing digital transformation. Altogether, these results underpin Vivo's strategic goal as the trusted partner for companies seeking to modernize their operation, scale cloud and IoT adoption and strengthen their digital capabilities. On Slide 9, we reinforce our sustainability remains a cornerstone of Vivo strategy, supported by solid advances across environmental, social and governance dimensions, which is validated by our strong performance in global rankings. According to Merco's corporate reputation ranking, Vivo placed in the top 10 companies across all sectors and achieved the best position among telcos. We also achieved the fifth best performance in the sector worldwide in S&P Global's Corporate Sustainability Assessment and earned a place on the CDP A-list for the sixth consecutive year. Additionally, we were recognized by Corporate Knights as the most sustainable company in Latin America on the list of the world's 100 most sustainable companies. On the environmental front, we participated in COP 30 as a supporter for the first Planetary Science division, an initiative that brought together leading scientists to advance discussions on climate resilience and the future of life on the planet. Regarding Funda o Telef nica Vivo, which reached over 2 million beneficiaries with BRL 47 million invested in initiatives focused on education, employability and digital inclusion. In governance, we expanded the scope of our Information Security Management certification under ISO 27001, strengthening the protection of data and systems that support our operation. I invite you to check out our 2025 ESG Highlights, which compile the year's key indicators and achievements and outline the strategic priority for our ESG agenda. Now David will give you more color on our financial performance for the quarter ending. Thank you. David Sanchez-Friera: Thank you, Christian, and good morning, everyone. On Slide 10, we provide an update on the evolution of our cost structure and highlight the strong EBITDA performance in the quarter. On the left side, you will see that total costs reached BRL 8.9 billion in the quarter. When excluding the effect from the concession migration, OpEx was flat with a year-over-year evolution of 0.4%. This reflects a balanced combination of commercial momentum and disciplined operational management. Cost of services and goods sold rose 9.7%, mainly driven by the higher contribution of B2B digital solutions, continued demand for music and video over the top as well as the share of handsets and electronics. Operating costs grew 4.4% year-over-year, led by a 6.4% evolution in personnel expenses, reflecting annual salary increase and a higher headcount in strategic areas such as digital tech. Meanwhile, our largest cost line, commercial and infrastructure declined by 2.6% due mainly to some onetime infrastructure expenses registered in the same quarter last year. The results in both years were positively impacted by the effects related to the migration of our fixed voice concession to the authorization model. In the fourth quarter last year, we recognized a reversal of provision for contingencies totaling BRL 386 million. In addition to asset sales amounting to BRL 206 million. In the fourth quarter this year, we recorded BRL 96 million in copper sales and BRL 6 million in real estate sales, adding up to BRL 102 million. Excluding all these effects in both periods, our EBITDA grew 17.7% year-over-year with a margin expansion of 380 basis points, reaching 42.3%, while reported EBITDA was up 8.1% with a margin of 42.9%. Moving to Slide 11, we present the evolution of our operating cash flow for the year. CapEx amounted to BRL 9.3 billion, a modest 1.1% raise year-over-year, while our CapEx to revenues ratio reduced to 15.6%. This reflects lower capital intensity and the continued prioritization of investment with the highest return. As a result, operating cash flow before leases reached BRL 15.6 billion, an increase of 13.4% compared to last year. After leases, operating cash flow rose 17.3%, totaling BRL 10.1 billion with margins expanding to 17%. This strong performance demonstrates our enhanced ability to convert EBITDA into cash, supported by disciplined CapEx allocation and softer lease cost evolution. Going forward, we remain focused on further optimizing our tower-related expenses and improving contract efficiency. The trajectory of our operating cash flow margins underscore the strength of our return profile. On Slide 12, we highlight how our disciplined financial management continues to translate into profitability and strong cash generation. Net income for 2025 reached BRL 6.2 billion, an 11.2% increase versus the previous year. This growth was well balanced throughout the year, reinforcing the consistency of our execution and resilience of our business model. Our net cash flow position also improved, ending the year at BRL 2.3 billion compared with BRL 1.4 billion in 2024. When considering IFRS 16, net debt stands at BRL 13.1 billion, equivalent to just 0.5x EBITDA, underlying the continued strength of our balance sheet. Free cash flow rose 11.4% to BRL 9.2 billion in 2025. This performance reflects both our disciplined CapEx allocation and the healthy fundamentals of our operations. As a result, our free cash flow yield reached 8.6% and free cash flow over revenues came in at a solid 15.4%. These results reaffirm our ability to improve profitability and cash generation while maintaining a very comfortable leverage profile. Lastly, on Slide 13, we highlight our continued commitment to shareholders' remuneration. In 2025, we distributed BRL 6.4 billion to shareholders, an increase of 9.1% compared to the previous year, driven by higher share buybacks and capital reduction. Notably, we once again delivered on our guidance for the period this time with a payout of 103.4% of our net income. Looking ahead to 2026, we have already announced the distribution of BRL 7 billion, including the BRL 4 billion from capital reduction to be paid in July, and the interest on capital of BRL 3 billion declared in 2025 to be paid in April this year. We also declared an additional interest on capital in February this year that will be paid before April 2027. Moreover, our Board of Directors approved a new share buyback program of up to BRL 1 billion to be executed until February 2027. To conclude, we reaffirm our commitment to distributing at least 100% of net income in 2026, maintaining a clear and disciplined capital allocation strategy focused on value creation for shareholders. Thank you. And now, we can move to the Q&A. Operator: [Operator Instructions] Our first question comes from Leonardo Olmos from UBS. Leonardo Olmos: Congrats on the results. My question will be all centered on distributions, a little bit long, but all center on distributions. So if you could first discuss the drivers for the mix in 2026 between buybacks, interest on capital and capital reduction, which -- what makes you pick more of one than another? For example, we noticed a small reduction, potential reduction buybacks, but a huge increase in capital reduction. Could that mean you are thinking about continuing on the path of increasing potentially leverage, changing the capital structure? And still on that topic, and the last part of my question, if you could discuss net income drivers for 2026. As we noted an increase in copper sales, maybe there's upside for consensus estimates. And since you guide dividends on the back of net income, we want to know that. David Sanchez-Friera: Leonardo, thank you for the question. So the first one, we have a commitment for the last 2 years to distribute at least 100% of our net income. So this is something that we have done in the last 2 years, '24 and '25. And we always try to combine between the -- what you mentioned, capital reductions, interest on capital, also dividends and share buyback. If you look at our capital structure, we have more than BRL 60 billion capital. So we obtained 3 years ago authorization from ANATEL to distribute up to BRL 5 billion. This is something we have already done. We have already distributed BRL 3.5 billion. Now we don't need any more approval -- preapproval from ANATEL. So that's why now we have also approved that will be paid in this year for another BRL 4 billion. And the plan for 2026 is to combine and to continue. Today, we have also approved a share buyback program of BRL 1 billion that will give us flexibility to continue taking advantage of interest on capital. This is a situation unique in Brazil, together with also a capital reduction to maximize the value of shareholders. So for next year, we're expecting, of course, to deliver more than 100% of our net income. So regarding capital structure, it's something that we are always exploring potential opportunities. The leverage that we have today in Brazil is very linked to the high interest ratio that we have here in Brazil. And we expect that in the next future, the Selic will reduce. Today, it's at 15%. The market is expecting this to reduce in the next few years. So we could explore opportunities also to generate value and to maximize this opportunity. So I think this is -- this will have a very strong cash flow generation and net income for next year, which was also your second question. We are seeing a very stable. We have been growing almost every quarter, double digit. For the next year, we'll continue growing in EBITDA. We will also benefit from the reduction of the depreciation and amortization. Starting from the second quarter, we have included also on the financial statement. After July 2026, we will fully depreciate some of the legacy assets that we have in our balance sheet. And this will represent an improvement of BRL 300 million of profit before taxes, just coming out of this, plus potential benefit from interest reduction. So we are positive about the evolution of net income. Next year, we will bring additional shareholder remuneration. Operator: Our next question comes from Marcelo Santos from JPMorgan. Marcelo Santos: I want to ask questions about two key topics. The first one is CapEx. So maybe, David, could you please discuss what are the puts and takes for the CapEx outlook in 2026? And the second question will be about competitive environment, how you're seeing it, especially on mobile? And what is the outlook for passing price increases this year? Christian Gebara: Marcelo, I will take the questions. Christian here. So CapEx, we're not giving guidance. But as we said, now been stating in every call, we are working on CapEx optimization, when you consider CapEx over revenues. So as you could see, we came from 16.4% to 15.6% this year. That's a combination of all the work we are doing to be more effective in the deployment of our infrastructure. Added to that, our ability to sell more services with no CapEx. So we already reached more than 12% of revenues coming off services that now require CapEx. So that's why we have this strong evolution in operating cash flow. As we stated here now, we are increasing 13.4% year-over-year. And even when you consider operating cash flow after leases, this growth is even higher, 17.3%. So we will continue to deploy 5G. As I said, we are following our customers and the penetration of 5G is going up. So we are deploying 5G where our customers are. We've been deploying fiber and penetrating more our network. So we also saw the take-up ratio going up in the fiber business. So that's a good sign. Of course, it involves CapEx, but we are also saving in other lines. So the idea is this one, to continue to improve infrastructure keeping our leadership, but being better in the ratio CapEx over revenues. Going to competition. Can I go to the second one, Marcelo? Marcelo Santos: That's very clear. Thank you, Christian. Christian Gebara: So competition. Here, we have different strategy for the different segments. We've been very strong in prepaid. Now it's still slightly negative, but when you compare what we had in last quarter, revenues this quarter is higher than the previous one. And also when you compare the year-over-year evolution, we also have a better performance this quarter than we had in previous ones. We are increasing price according to the type of segments. So we are planning March for postpaid and hybrid. For front book, we are expecting customer base price increase in April for both hybrid and postpaid. FTTH, we had a price increase in January. We have planned a new one for June. And Vivo Total, we are planning 100% customer base price increase in April. So following the inflation ratio, giving more data and more services and also playing convergence. So that's our strategy, and that's why we are positive about the evolution of our revenues going forward. Marcelo Santos: Okay. So the back book is on April, right, for postpaid and hybrid? Is that correct? Just to be sure. Christian Gebara: Yes. Part of it is in April, the majority, and the rest is in August. Operator: Our next question comes from Rogério Araújo from Bank of America. Rogério Araújo: Congrats on the results. I have a couple here. The first one, there was a reduction in the lease expenses. If you could please provide some details on why and also expected trend. This is the first one. Christian Gebara: Please ask the two questions, Rogério. And then we'll answer both of them. What's the second one, please? Rogério, please ask the second question. I don't know if he is still in the line, so I don't know if we'll answer the question or we wait for him to come back. Operator: He shows on the line. Rogério, can you please repeat the second question? Christian Gebara: Okay. So we're going to answer only the first question, okay? David Sanchez-Friera: Okay. So Rogério, thank you for the question. The evolution of the lease depreciation and interest accrual remained consistent with previous periods. Even in both quarter and even the full year, EBITDA after leases has grown even more than EBITDA before leases. And regarding the payments, some volatility persists due to the ongoing renegotiation with the towers company that we do every quarter. And that's why you mentioned the principal and interest payments that we have this quarter amounted to BRL 1.2 billion, which is lower than the previous year, but also lower than the previous quarter that shows we are very optimistic about the potential trend of this line. To give you more light here, the current tenancy ratio that we have in Brazil is 1.4 that we discussed last quarter, which is significantly lower than other comparable countries. So we see a big opportunity to reduce the unitary costs of every tower to share more the towers and to fund the new deployment that we need to do here in Brazil to accelerate our revenues in 5G and also our coverage. So optimistic about the trend that we have started seeing this quarter. But even though we will need to continue renegotiating those contracts and this will be driving the potential acceleration of the reductions. Christian Gebara: I would add, the operating cash flow after leases, no, margin. We went from 14.6% in 2023 to 15.5% in 2024 to 17% in 2025 -- sorry '24, 15.5% in '24, 17% in '25, aligned with what David just said. Also, we are going to capture the growth of our infrastructure. We're going to renegotiate our contracts, and we're going to still generate operating cash flow after leases that has a strong margin, as you could see the evolution over the last 3 or 4 years. I don't know if Rogério to have the second question? Rogério Araújo: Yes, sorry. My line actually was dropped here on, actually. You couldn't hear me on my second one. It's about the prepaid ARPU. It has reverted a negative trend versus the first 9 months of the year, also in line with our main peer in Brazil. So if you could please clarify what do you think were the main drivers for that and what you expect in the upcoming quarters? Christian Gebara: Listen, Rogério. Prepaid has been performing better quarter-over-quarter. Of course, that's also our ability to motivate customers to top up and also to consume the money that they have in the balance. So it's part of our strategic behavior of the company, also being very able to motivate customers to higher average tickets and also the ability for us to monetize the tickets they have top up. On the other hand, we continue very strong in migrating prepaid to hybrid. So it's even quarter-over-quarter that there is a positive evolution. And so we are extremely pleased with the mobile service revenue evolution, 7% over the last quarter, growing 9% in postpaid. That's a combination of bringing new customers, but also migrating pre to hybrid or postpaid. And also the prepaid absolute number of revenues that went from the fourth quarter -- from the third quarter of '25 of 1.364 to 1.394. So -- and churn in the postpaid also in the lowest level. So that's the result of a very well segmented and thoughtful strategy for different segments that we have here in the company. Rogério Araújo: Okay. I may have a follow-up. If you could expect the prepaid ARPU to keep increasing year-over-year in upcoming quarters, if you have any color on that? Christian Gebara: Rogério, what we expect is revenue to continue to grow the way it's growing. We don't expect -- we're not giving guidance per ARPU per segment. Operator: Our next question comes from Phani Kanumuri from HSBC. Phani Kumar Kanumuri: The first question is on the total net adds and the market share in mobile. If we exclude Dongles and M2M, your number of subscribers has been coming down. Any reason for that? And your market share is down like 1 percentage point from last year. So what is -- I mean, what is driving this trend? The second thing is that if you look at your B2B strategy, it has been growing really well. What are the further steps to maintain this growth in Brazil? And how is the penetration coming in the SME segment? Christian Gebara: I don't see mobile market share changing. That's very stable. There are some corrections, maybe in prepaid. Some companies disconnect like later than we do. So we are very confident about our performance in market share, and actually in our performance in revenue growth. And also, we had -- we measure our good performance in ability to increase net adds and fourth quarter 2025 was a record number, 930,000. That's a combination of bringing in more customers, but also reducing postpaid churn from 1.3% in the fourth quarter of 2021 to the 1% that we'll be keeping at this level for the last 4 years. So that's important for us. And mobile ARPU is also going up if you compare it to what we had in the fourth quarter and what we had in the fourth quarter 2025, sorry '24 and '25, there was an improvement of 5.8%. So we are not following like a small variation in market share. Important thing is to keep attracting customers, retaining customers and growing revenues. Regarding B2B, that's a very strong quarter, as I said. We had in the year B2B as, I don't know if you're more interested in the digital service, at BRL 5.3 billion revenues, it's a 29.5% year-over-year increase. It's already know what's digital service, 8.8% of the total revenues from Vivo and is 39.1% of the B2B revenues of Vivo. So it's getting very fundamental for our strategy going forward. Penetration is growing in all segments. SMEs is where we have more challenges to penetrate more the digital services. But at the same time, we are growing a lot connectivity in the segment. We have a variety of products being offered to this segment coming from location like renting -- rental of notebooks up to cyber solutions. So that's part of our strategy. We're growing in all segments with more acceleration in the top. But at the same time, the volume that we have in the SMEs, we are very, very, very happy with the results that we are having also in these segments with a combination of connectivity plus digital services, I described it before. Phani Kumar Kanumuri: Okay, yes. So maybe on the connectivity part, right? So you've grown like 5% year-on-year. So what is driving the growth in the connectivity part? The digital solutions was more understandable, but what is driving this growth in the connectivity part? Christian Gebara: SMEs, but also in advanced data solutions for top to corporate customers, now, to going up in the pyramid. We also have other connectivity solutions up to very dedicated links. So we've been growing in all lines. Now I think we gave some color. Fiber, of course, it's B2C, B2B. But when we said that we are growing 9.8%, that also includes our great performance in SMEs. And when we grow 10.2% of Data, ICT, digital services, it's also including corporate data solutions. So it's in both. Operator: Our next question comes from Maria Clara Infantozzi from Ita BBA. Maria Infantozzi: I have two questions here. The first one, can you please provide us an update on how you perceive the competitive environment in the fiber industry and also refresh us how you see any potential M&A in these industries? And the second one, could you please share your thoughts on how you see profitability expansion going forward? Are there any specific areas of the business in which you see some potential for further efficiencies? And how should we balance future efficiencies with the expansion of B2B? Christian Gebara: Sorry, the second question is related to cost in B2B or cost in general? Maria Infantozzi: Costs in general and how you balance this with the B2B expansion as it has a lower margin? Christian Gebara: Okay. B2B doesn't have a lower margin, but we can address this. Let's go to the first one. So Maria Clara, the market is still very fragmented. If you see the performance of the fiber business in Vivo, we went from 18.8% market share at the end of 2024 to 19.3% market share in the end of 2025. So 0.5% increase in market share. Our net adds for the whole year was 834,000 customers. If you look other competitors, some of the leading ones had very strong negative net adds for the year. So it's still a very competitive environment with too much fragmentation in our opinion. If you compare, for instance, we are the leading company in fiber in Brazil. We have 19.3%. When I see the leading company in Spain has 34% of market share. When I see the leading player in France has like 39%. If I go to Japan, the leading company has 57%. So I think there is room for consolidation. I don't see any rational reason to have so many players competing in same geographies. So we have 31 million home passed. We aim to have more. We see addressable 60 million, but we don't see ourselves reaching this number, but we could reach something more closer to 45 million. We could do that building ourselves or we do have consolidating. Consolidating is still a question mark. We have to find the right target with the right pricing, we have the right network not overlapping too much with ours with the good quality. But I see that clearly, we require more consolidation in this market because it's not -- doesn't seem to be sustainable for most of the players who presented negative net adds over the last year. Regarding costs, I think we've been showing a good, very good number in cost of operations. The evolution was 4.4%. That includes all the personnel growth that we had, like because we want to be more digital in some areas. We want to expand our penetration in some commercial areas. So even increasing 6.4% in personnel, we were able to just increase 4.4% in the cost of operations because we are bringing more efficiency in different areas, especially in our customer care that the app and other initiatives that we are deploying now. Even using AI is helping us to reduce other commercial and customer care costs. So the combination of both that presented this 4.4% that is below, very well below what we presented in revenue growth. In the cost of service and cost of goods sold, both of them are very related to our sale of services. Most of this, like I can give examples of video OTTs that I said before, or goods sold that is related to everything that we've been performing so well that also presented our strong growth in this quarter in handsets and consumer electronics in general. Going forward, we're going to still focus in digitalization. And now with AI, we are very positive of bringing great results in cost efficiency. Sorry, in B2B, you stated. Now B2B, depending on the product, we have very, very positive margins. As I showed, we are growing 5.4% in connectivity. Connectivity B2B represented in the year, BRL 8.2 billion. That has a very good and positive margin. And digital B2B, it depends. We have also gone through markets in some of the services. When we say -- when we sell cloud, yes, the margin is not that high. But when I have managed services over cloud, the margin is much, much better. And the same I can tell about cyber and even IoT. So also very confident on our ability to grow. And all these services, some of them even having lower margin, they are very positive operating cash flow since they don't require CapEx. So again, we should look at the bottom of the results where operating cash flow and free cash flow, operating cash flow after leases or free cash flow, we presented a very strong positive trend. Operator: Our next question comes from Daniel Federle from Bradesco BBI. Daniel Federle: Congrats on the strong results. I just want to hear your thoughts on how important it is for a telco to have a convergence operation at the moment in Brazil. We see, Vivo focusing on the Vivo Total. It seems to be a big success. So how important is this for the whole strategy? And second, if you could just provide a little bit more information about your expectation for AI as a source of savings for costs in the upcoming years. Christian Gebara: Daniel, thank you for your initial comments. I cannot answer for all the other operators because I think we have different strategies. I can answer about convergence for Vivo. Convergence has always been our focus. And if you look at the numbers that we have today, we have 7.8 million FTTH customers, 62.7% are convergent. Out of the 7.8% in Vivo Total, we have 43.2%. So there is still this number between the 43% and the 62% that are convergent but are not in Vivo Total, and we are working to drive them to Vivo Total. Why? Because I think when you are Vivo Total, I think switching cost for customers is even high -- higher sorry, and we also have the ability to have a closer relationship with these customers and monetize even better, selling also the digital service. When you see the number that we presented of the new ventures in B2C, you see our ability to cross-sell not only mobile and fixed, but also the ability to sell video OTTs, to sell health services and also to sell smartphones plus consumer electronics, only to give you some examples. Our churn ratio is also proving that is the right decision. FTTH churn is 1.4%. If I look years ago, it was 1.6%, 1.8%. When I compare the churn rate of fiber customers that are in Vivo Total, it's 1 percentage point lower to those that are independent fiber customers. So for us, it makes a lot of sense. And also even having record addition of new customers in mobile, our churn is also in the lowest level of 1%. So our strategy continue to be the one who can have the customer with more services with people. That's why we'll also be presenting this number that we call services for RGU. So we get a customer, and we try to add all the revenues that we have in B2C, divided by the number of customers of RGU, and we see also a positive trend there. That's convergence, but it's also added to that the ability to sell the new businesses. So that's the strategy that Vivo is following. So I cannot answer for others, but I think for us, that's the right one and the one that we are going to still continue to put all our efforts. And then wanted to complement the Vivo Total, 84% of the sales that we have of fiber in our stores get out of store with 84% in Vivo Total. So it makes a lot of sense. And gross ARPU of Vivo Total in the fourth quarter was BRL 230. So that's also a great measure to follow. And the average in Vivo Total, we have one fiber connection and 1.7 postpaid connection. That also makes sense to see it that way. So it's proving the customer wants to be loyal to Vivo in all the access. AI, we are in the -- we used to have very well deployed AI here before the Gen AI. So WhatsApp was already driven by AI Vivo and was one of very important channel. We had 4 million customers interacting with us per month in WhatsApp using AI. Now with Gen AI, I think the possibilities are even higher. We are using that to optimize internal processes. For instance, when we need to go to a B2B public visitation, there was like this deep complexity to understand what was required by the operator in some of these auctions. We now have AI to understand it much closer to what we have here as inventory, and then we have a response that is much faster and our ability to participate in many more visitation than we used to do before. We're also using AI as copilot to all our call center agents and store agents. And now we are piloting AI agents to answer directly to customers. So that's a very important project that we're going to start having the first results in May this year that we are doing with partners. And also, we are doing many other things in network optimization. So it's a variety of actions that we are taking here to implement AI as core for our business. And again, answering to the second -- the first question that I had before, I think from Maria Clara, in efficiency, we also believe AI will bring a lot of efficiency for us as well. Operator: Our next question comes from Gustavo Farias from UBS. Gustavo Farias: The first one, maybe a double-click on the previous question about M&A. So we've been exploring M&A in fiber, in most of our recent notes. And Vita obviously stands out particularly now without Oi as a shareholder. So my question is, would you consider a large M&A to strengthen your fiber footprint? And the second question, we've seen stronger portability figures for Claro in the fourth quarter, mostly impacting TIM and likely related to new sales. So my question is, how are you perceiving this competition driver in mobile? And if this, by anyhow, changes your commercial strategy? Christian Gebara: Gustavo, thanks for the question. No, it doesn't change our strategy. We have competition, and it's a very competitive marketing -- market, sorry. And I cannot point out a specific player and the evolution of portability due to this player. Now I think that's the market that we face. I think there is a lot of variation of portability month-over-month. What is important that we keep growing net adds, and we keep ARPU going up because also getting more customers with ARPU decreasing is not the strategy that we are following. So if you look, we had 4.4% increase in postpaid net adds if I compare the year-over-year quarter. And also, we have a 5.8% ARPU evolution if I compare again the year-over-year ARPU, keeping churn level at 1%. So we're not going to get into this war if someone is trying to put the service in a lower value or try to use our service to acquire other services in different sectors. No, we shouldn't get to that because we are here, preserving the quality and the experience that we offer to our customers. So a positive evolution of net adds, positive evolution of ARPU and extremely positive evolution of our churn. And again, we're going to face competition of different types. And that's normal. It's a very competitive market, and telecommunications has always been very competitive in Brazil. Going to the question of -- can I go to the other one, M&A? Gustavo Farias: Yes, of course. Christian Gebara: Yes. M&A is what I said, again, Oi's still has a stake at Vita. They are in the process, but they still have a stake. I think the market is very fragmented, as I said before, I think there is room for consolidation. But in our case, it's not the size. None of the players is large enough not to allow us to integrate because, as I said, they have 19.3%. The next one has 8.2%. And I think adding the second, the third, we're still going to be below what we see as market leader in markets like Spain, France, Korea or Japan. It's more of the quality of this network, the quality of the customer base, the overlap with our network and the price. We have the ability to deploy network. And as I said before, much more of the CapEx is related to connecting the customer than passing the fiber. But we don't want to be passing fiber where we see so many players. So that's why we are open for analyzing targets. So far, we haven't been able to get to an agreement or getting to the real interest in any of the targets that we see in the market. So let's wait, Gustavo, but the trend seems positive for consolidation. Operator: The question-and-answer session is over. I would like to hand the floor back to Mr. Christian Gebara for the company final remarks. Please, Mr. Christian, the floor is yours. Christian Gebara: Okay. Thank you, everyone, for participating, and for so many questions. As I stated in the beginning, we're extremely pleased to share such a strong set of results in all dimensions of our company. And again, we are always here at disposal to answer any additional questions that you may have. Thank you so much for your participation. Operator: Vivo's conference is now closed. We thank you for your participation, and wish you a very good day.
Stephan Gick: Good morning, ladies and gentlemen, and welcome to BELIMO's 2025 Results Presentation. My name is Stephan Gick, Head of Investor Relations, and I have here with me Lars van der Haegen, CEO; and Markus Schürch, CFO of BELIMO. We are also pleased to have today online with us, Sarah Bencic, our new Head of Americas. Lars will start the presentation with a business and market review, then Markus will highlight the financials followed by Sarah introducing herself and BELIMO Americas. We will conclude the presentation with the outlook and take questions at the end. With that, I would like to open our presentation and hand over to Lars. The floor is yours. Lars van der Haegen: Thank you, Stephan. So good morning, everybody here at the Hotel Widder. And of course, also everybody who is here remotely. We look forward to the program today, and we conclude here then also with Q&As for everybody, also, of course, those remotely and then a reception with a light lunch, upper wish, as we call it, for those who are here, and I look forward to meeting you and talking to you this morning. Gick mentioned, we have Sarah Bencic online. Today is actually a snowstorm in the U.S. Our factory is closed today. Flights have been canceled to the U.S. those that left today from Switzerland, and -- but we still have a connection, so -- but it might be a weak connection, but yes, we will keep our fingers crossed Sarah's speech later on. 2025 was a great year for BELIMO. I start here also with a follow of our employees. We have celebrated a lot last year, 50 years, BELIMO, and that was also the reason why we thought we have to make it a strong year with great financial results because it wouldn't be fun to celebrate without good numbers. But what's really behind this result is our more than 2,700 colleagues who are working highly engaged following a purpose and a proven business model. And that's really very nice, gives me the motivation every day to -- on BELIMO and to see this company working, and it's just amazing, and therefore, we would like to dive into the details -- the summary of what happened last year in terms of financials. Our growth rate in local currencies was 23%. EBIT grew by 29% and the return on capital employed was 36%. We are proposing a dividend of CHF 10 per share. And the outlook, we expect mid-teens percentage sales growth in local currencies this year. Markus will later on deep dive a bit into this outlook. Some of the other elements will cover throughout our presentation. First, the market dynamics. Of course, a very dynamic year in terms of the data center business, obviously, we have now sales -- had sales of 17% of our total sales in the data center business. We grew slightly less than half of the growth in 2025 that the data center business was representing. From a technical standpoint, there was also more and more, of course, liquid cooling employed, but also liquid cooling at higher temperatures as it is written here, that means temperatures around 40 degrees C for a supply temperature to cool servers. That means that there is less mechanical cooling involved. So there is a so-called free cooling and mechanical cooling combined. And this is actually quite advantageous for the applications BELIMO covers because it requires more valves to handle these systems. Then the overall construction market, the nonresidential construction market was actually slightly down, minus 1% on average globally. But we've seen an uptick in retrofit opportunities, and we'll cover this later on with 2 examples. And then lastly, the overall economic environment of 2025. We had the geopolitical situation, fueled, of course, also by these tariff ideas and concepts and the negotiations now again in discussion over the weekend. And we, of course, don't know what's going to happen over the next months and years, but we know it probably will make -- keep us busy for the next 3 years talking about tariffs, managing tariffs and implementing tariffs, and Markus will actually deep dive a bit into that topic what did it mean for 2025 regarding tariffs at BELIMO. The dynamics and the markets are, of course, related to our strategy -- to our growth strategy. And we are, of course, focused long term. We have a long-term planning, a 10-year horizon on our growth strategy with our 6 initiatives. And our 6 initiatives there actually in our annual report. And remember, always -- Warren Buffet always when asked, why are you so successful. He says, well, we are reading the annual reports. And you don't have to read all our annual report. They are getting so long. But I recommend you to read Page 17. And we talk about our growth strategy there and explain the status of each of the 6 initiatives. We touched upon some of these initiatives on the data centers, in particular, I want to mention what we did last year, we actually increased our organization for data centers. We have a dedicated sales, business development organization with application consultants with product managers fully focused on data centers. We've expanded that. We built a data center application center in Singapore. And we have also designed an application center for our Danbury, Connecticut location that we are building right now, that will be inaugurated in fall. Then we have started last year, in particular, with product developments, particularly for data centers, both on the material side of valves, for instance, more that valve range is completely available in stainless steel, but also in terms of the intelligent component, the sensors and the actuation and metering, the BELIMO energy valve with special implementation of industrial automation protocols to interface and special functionality there from a software standpoint. Now our 6 growth initiatives. They are built on 3 megatrends. Always crucial that the company's success depends mainly on the underlying trends. We have 3 key trends. One is urbanization that is still -- and I checked the number again 70 million people every year we are adding to this world. So 70 million every year, we have more. And the 70 million people, 80% of them, they love to live in cities. So they are clustering in cities. And in the cities, we see that trend also that second-tier cities are developing, of course, in Asia, but also, for instance, in the U.S., cities like Austin, Nashville or Denver are growing. And you have more densities in cities, you build higher, and this requires more HVAC building automation to manage these buildings. Then climate change. That still is the single biggest challenge for us humans in the world. Every problem we have in the world gets worse, with climate change and if we do not mitigate this. And the best way to reduce CO2 is energy efficiency. Energy efficiency is the biggest fuel we have and the best way to reduce CO2. Energy efficiency measures in buildings with BELIMO components, they have 3 main advantages: Firstly, they pay for themselves. Have an example afterwards. They increase the quality of life in terms of indoor air quality, safety, and they make the building owner energy independent. So this is really very powerful, and therefore, a major trend that we are directly supporting with our business model. Then data centers. On the data centers, obviously, we have the data center trend this market segment. We have some related trends. Sarah will present afterwards, the 30 segments of the buildings, how we segment these vertical markets. Their related segments such as energy storage or semiconductors who are also benefiting from the digitalization trend and the electrification trend. And then regarding our product range. So as we integrate in building automation system, we see more decentralized application, decentralized intelligence, edge devices and so on. So it's absolutely basically playing into the BELIMO product range, the digitalization in building automation and industrial automation. And therefore, very crucial for BELIMO our platform of components, and we have launched in November, the first products built on the new digital generation. Maybe you've seen this launch video. That was -- it's a 20-minute launch video. I can recommend it on our website. And the new digital generation platform is a new platform. We have introduced the first platform in 2005, so 20 years ago. At the time, we were integrating damper actuators and Control Valves in a platform and have launched this platform and have been very successful with this. Five years ago, we invested into a new platform that, in addition to Damper Actuators, Control Valves, integrated Sensors and Meters in 1 platform and we brought the modularization level 1 degree further. So we have basically a Lego-type system here, where we have as few components as possible in the platform, and it makes us very flexible. For instance, when we integrate into a automation system, as indicated here on this depiction, we can change 1 component. Today, we have about 10 different interfaces into building automation systems. For instance, the most common used in building technologies BACnet. There is a BACnet based on a physical layer RS-485 on an IP layer and then there's BACnet Secure Connect, special cybersecurity requirements that's also on an IP level. There are 3 different interfaces. They need 3 different kind of hardware modules. And we have with this platform the opportunity to just develop 1 of these modules and put it across the whole range and put it on 20,000 components. So otherwise, if you do not have a platform, you have to make a discrete development for every component with a new PCB, a printed circuit board, and this is where it's not scalable. So this platform really makes us unique. There's no player in the market that has a platform in this area of application where we play. Furthermore, of course, the handling of our products there. It's very consistent in terms of the design. Also, the industrial design, that's important too, as we sell a lot to OEMs or original equipment manufacturers. They put our components on, for instance, an air handling unit, and we have 10 BELIMO products or an air handling unit if the industrial design looks consistent, the overall product looks better. But also, it's the same handling, how you install it, how you configure it, for instance, here with the BELIMO app, there's 1 app. There's the assistant link that's indicated here that allows Bluetooth collection. There's also NFC that's available directly on the component. So you just have a very consistent range for commissioning and, of course, for integrating. So this platform is crucial in order to, of course, supply the world with BELIMO components. We also have to invest in our capacity. So therefore, we are on track with our capacity expansion. We do follow an asset-light model. If you analyze the numbers correctly, you see that our sales per employee per FTE is CHF 445,000 per employee. Our depreciation as a percentage of sales is 2.8% so that shows the asset-light model. Also the trend is positive. So in the past, we were around over 4% of depreciation. And over the years, this came down to now under 3% and also the sales per employee increased over the years. So the trend towards this asset-light model also is positive, but we still need some buildings. So 1 that is -- in Hinwil, just to focus really on our footprint. We have now several warehouses -- external warehouses that we consolidate with the new building, we call it Nexus and that's being inaugurated end of August. And you are actually invited on September 1 for a Financial Analyst Day in Hinwil where you can visit us and we show you the new building, along with other interesting things about BELIMO. Then we inaugurated also BELIMO China, CESIM House LEED Platinum building. This I was already talking about a year ago because we inaugurated in January '25. And then we have some projects in the U.S. that Sarah will talk about. Now having a look at our growth strategy over the years. We have a growth strategy -- long-term growth target. It's always nice to look back and review that growth strategy, how did we do. And obviously, the numbers now are -- have been quite positive, but I would also look back if the numbers wouldn't be that good. We've implemented the first growth strategy in 2016 and had an average CAGR of 8.8% over the 5 years period. And then over the last 5 years, it was a 13.8% CAGR. Over the last 20 years, 10.3% CAGR in growth. So this growth strategy is working. And we actually put in the plan 2016 with the growth strategy that we would make CHF 1 billion in sales in '25, and we made it. So we are quite happy ourselves that we made this number. And we have, of course, also in our growth strategy really focusing on the growth rate long term of 9% to 11%, as communicated previously, an organic growth rate between 9% and 11%. That's the long-term growth rate, obviously, now fueled short term by some of this data center growth, but that's our long-term plan. Then important regarding the profitability, the EBIT our EBIT number. I think this chart is always good to look at because many of you are always asking and maybe later on, what will be your EBIT in 2026, and we don't know. Because you see the EBIT is going up and down that fluctuates over the year, what we see. It improved over the last 20 years from 14% to 20.8%. So that's an average of about 35 basis points. We believe that over the next years to come, we continue to improve in that range of this 30, 35 basis points over the next 5 years in midterm, long term. But of course, every year, these changes, and we have the fluctuation as, of course, indicated from the past. And I think that's a good indicator to look at also what are these fluctuations that we have on that EBIT level. Now also, I would like to point out that our growth strategy works all over the world. So looking at the top 50 countries we are selling in, it really works in more than 80% of the countries we have, the strategies work in terms for, in terms, for instance, with sensor growth, with energy valve growth and so on. The various topics that we have in our strategy work in each of these countries. And so we have really statistical evidence that it works then all over the world, and that's very powerful. Looking at the 3 markets. Markus will, afterwards, deep dive a bit into the numbers. I want to highlight some of the typical projects that we have. So our business is really widespread amongst many buildings. We still have an order size of about CHF 2,000 per order, very small. There's a lot of orders that we are processing every day, and they go into buildings, small buildings, big buildings. And here, 1 example here in EMEA, that's the Hoffmann Group in Munich. That's a new building with about 1,000 products in there. As an example, then the Embarcadero Center in San Francisco. That is a very nice case study that we actually have. There's also a link on this slide brings you to this case study on our website. There's a video. This is a 48-story Waterfront building in San Francisco, 40 years old, and it's owned by BCX. That's the formerly called the Boston properties. That's the largest listed real estate developer in the commercial building space in the U.S., and it's a great success story. They have retrofitted 6 air handling units in these buildings, large air handling units with 6 energy valves. And they are saving $130,000 per year in electricity costs that they use for -- mainly for chillers, for chilling the building, for cooling the building and so you see the investment is about -- the payback is around 6 months. The investment was around $60,000, so the $130,000 saving per year. So it's really 6 months payback. Unbelievable, great case study again. And I recommend you to watch this video that explains in detail how that works. Another project from Asia Pacific in Vietnam, Ho Chi Minh City, the second large international airport there that's being built Phase 1. There are 15,000 BELIMO field devices in that phase that we have been selling and are selling in this construction project. So that also gives you a bit an impression of an airport. There's a lot of HVAC in there and many of these BELIMO components. Here, also fully equipped from Damper Actuators, Valves, but also Sensors and Meters in this Vietnam airport. So if you have a land in Vietnam on the new airport, then think about BELIMO that makes your landing possible. Now I would like to also talk about our Building Tomorrow vision. Last year, in 2025, when we had our celebration activities, part of that was also looking into the future to '25. What will be the trends in our industry? And we conducted workshops all over the world with our customers, with industry experts to define these building trends. And these trends are in this study. We have actually them here outside. You can take a book or you can download it, of course, on the Internet. And it basically talks about technology, society, economy and the environment. And it has 3 trends for each, and then it also shows the implications for the industry. So it's very valuable, I think, in reading this as well. So if you read our Page 17 on the annual report and read this, then you really know where the journey goes for BELIMO. You know more about the business model, and you learn a lot. So I recommend you also to read that Building Tomorrow study. Then let's come to some changes on our Board of Directors. We have, first of all, our Martin Zwyssig, who is actually here today. He will be leaving aboard, unfortunately, after 15 years of service. So he is, as you know, an outstanding CFO and has contributed to BELIMO's growth from the Board level. So thank you, Martin. And we have last year, the AGM has elected his successor with Tom Hallam, the former CFO of Shimadzu. Then we have also another member of the Board who does not stand for reelection, that's Stefan Ranstrand, former CEO of TOMRA. He was also contributing over the last 6 years a lot in -- regarding actually our growth ambitions and was pushing us regarding our strategy in terms of growth and also very -- I thank him for his contributions here too from the Board level. Then we'll have a new member that we propose at the AGM. That's Karina Rigby. Karina has a strong background in engineering, strong knowledge in data centers and she is American. So a strong knowledge about the American market with our largest market and brings that experience, that diversity to the Board. She has been working with Eaton and with Siemens Energy for many years and has a great knowledge also on management and leadership experience. Also, with Karina. We will be 3 women on our Board of Directors. And of course, with Sarah Bencic, will be 3 women also in our executive committee. So we then have 6 women on our top leadership Board and Executive Committee, which is also great. And I remember 10 years ago, there were CEO on the Board and CFO on the Executive Committee, quite happy about that as well. Now let me conclude. Again, coming back to our employees, our colleagues, we've been working also a lot on over the last 18 months on our culture and our values, and we have created habits for each of the value, and we have conducted workshops actually 3-hour workshops 4 times, 3 hours discussion workshops with all our employees because it's very crucial this culture. So in our performance management process, for instance, every employee selects 1 habit and has a plan on what can he or she do with this habit to improve something, to leverage something, to take an opportunity and really work on one of these habits to improve our culture every day. Also great confirmation was this Best Employers Award from the Financial Times, Europe. There were 1,000 companies assessed. We were ranking #7, second in Switzerland, which is a great external confirmation that this cultural work works. So all we can say, good business model, good culture makes a successful company. With this, I conclude for now and would like now to -- I talked about airflows and water flows, and now we have the man who will be talking about the money flow. So I give the floor to our CFO, Markus Schürch. Markus Schürch: Thanks a lot, Lars. And also from my side, a warm welcome. It's a great honor and pleasure to be able here to present the financial results of BELIMO of last year. Lars already mentioned, 2025 was a very successful year for BELIMO. We have executed on our growth strategy and achieved a sales growth of 23.3% in local currency or 18.7% in Swiss francs, further accelerating our growth across all regions. For the first time in our history, we exceeded CHF 1 billion of sales and generated CHF 1.12 billion of turnover. A great achievement, especially in our anniversary year towards the 50th anniversary of BELIMO. With regards to the regional breakdown, the Americas has now contributed about half of the sales, EMEA 38%, and Asia Pacific 13%. If you have a closer look at the composition of this growth rate, we can see that about the majority of the growth, 19.5% is coming from volume and mix contribution. So between pure volume growth, also a lot of higher-value products like the energy valve or higher-value customer segments like the data center contributed to this strong performance. Then we had about 3.6% growth coming from price increases. That's mainly attributed to the region Americas to the U.S. where we had in-year price increases as compensation measure for the imposed tariffs. We'll come to that later on. And then lastly, the FX had a negative impact of 4.5%, leading then to this growth rate of 18.7% in Swiss francs. A bit a closer look into the various regions. This chart shows the development of our 3 regions. And you can see that all regions contributed with double-digit growth towards the overall achievement of BELIMO. First, with EMEA delivered an outstanding result with 12% growth in local currency or 10% in Swiss francs. And that is despite a very challenging market environment and key markets with a decline in construction spend, like, for example, in Germany. So focusing on retrofit or attractive segments within EMEA made this strong results possible. EMEA also benefited from a revitalizing OEM segment, and that included some restocking and supply chain buildup throughout the supply chain. Then Americas showed the strongest performance with a sales growth of 32% in local currency or 25% in Swiss francs, and that's from an already very strong basis in 2024. In there, data center accounted for about half of the absolute growth we had in the Americas, but it also means that our traditional HVAC business also grew in the high teens and showing that we have got a very broad basis of this growth. That is coming from an increasing traction also of the retrofit business and then also other high-growth verticals like high-end manufacturing in the pharmaceutical or semiconductor business and also a general very strong market environment in the Americas. Asia Pacific slightly had a growth of 29% in local currency or 23% in Swiss francs, and that's despite a very challenging market environment in key markets like China. So there, the clear focus on high-growth verticals made these strong results possible. Also, their data center was an important growth driver, including some export business in the OEM business. On this chart, we can see the development of our business -- of our 3 business lines. All business lines also grew double digit. Damper Actuator, our most traditional business line achieved sales growth of 14% in local currency or 10% in Swiss francs. And in there, the strengthening OEM was a key contributor to this overall very strong performance. Then Control Valves showed the strongest performance with a sales growth of 31% in local currency or 26% in Swiss francs. In there, obviously, the data center business was an important contributor or also the move to higher-end applications like the energy valve. Lastly, Sensors and Meters, our youngest business line showed a growth of 25% in local currency and is developing according to our plan. In '25. Sensors and Meters already contributed with 5% towards the overall sales of BELIMO and it's becoming an important business contributor for our company. This graph shows the contribution of the data center business to the overall sales of BELIMO. The data center business accounted for about 17% of the total sales in 2025 and an increasing share over the 2 half years. In the second half year, the contribution from data center was 18%. Overall, the data center business accounted for slightly less than about half of the total absolute growth we had last year. In there, obviously, the main contributor were the investments into the data center infrastructure and the high share of liquid cooling of these new applications. The high sales growth also translated into a strong EBIT performance and EBIT growth. EBIT grew by 29% to a total of CHF 233 million and that is corresponding to an EBIT margin of 20.8%, 159 basis points up from 2024. This increase was possible despite the negative effects, both from tariffs and negative FX development especially in the second half year. Tariff impact were mitigated twofold. So partly by midyear price increases we had in the Americas. And then also by supply chain flow-through, shifting about 40% of these high tariffs we had as of April -- August 1 into this year by the flow-through of the supply chain. Just if we recap a bit what happened on tariffs until April, we had a normal tariff situation like we had years ago. So we have roughly 4% tariffs for everything we import into the U.S. That was increased then in April for 1 day, to over 30% and then was reduced back to 10% plus the standard tariff. So we had then until August tariffs of about 14%. They were increased then on August 1 to 39%, plus the 4%. So we had 43% tariffs until mid-November when they were reduced back to 15% overall without the normal tariff. So that was a flat rate tariffs of 15% until last weekend and now we have got another tariff regime. So now we have got 15% plus 4%, so roughly 19%. And we will see what the future will bring. Certainly it's not the last time we'll talk about tariffs. In '25, we continued our investments into our growth initiatives. So our R&D investments totaled to CHF 76 million. That's up 3.5% from last year and corresponds to 6.7% of total turnover. Our personnel expenses increased by 11.5% to a total of CHF 295 million. Last year, we increased our workforce by 343 full-time equivalents to a total of 2,704 at the end of the year. The regional breakdown is as follows. So 59% of our workforce works in the EMEA, 26% in the Americas and 15% in Asia Pacific. The breakdown by function is 44% work in assembly and logistics; 30% in sales, marketing and distribution; 11% in research and development; and 14% in administrative and general management. This chart shows the performance of the 2 half years. Sales in local currency accelerated between the 2 half years despite a reverse seasonality due to the short December. This shows the strong momentum we have in our business. Material expenses were significantly higher in the second half year. That was impacted, first of all, by the higher tariff, but also by the FX rates that were mainly hitting in the second half year. The other effects were increasing operational expenses in line with the constant buildup of head count throughout the year. Net income increased by 24% to CHF 182 million, the foreign exchange burdened the P&L with CHF 10.4 million compared to a CHF 600,000 gain in the previous year. The strengthening of the Swiss franc against all currency, especially in the second half year was the main reason. Furthermore, we encountered a slightly higher tax rate based on higher profit outside of Switzerland. Our cash flow performance reflects the strong growth of the company. Operational cash flow amounted to CHF 185 million, absorbing a working capital increase of CHF 67 million associated with the strong growth of our company. Free cash flow, excluding the short-term deposits amounted to CHF 99 million reflecting our capacity expansion program just Lars showed that in his presentation. In the reporting period, we had a CapEx of CHF 87 million, and the main investment was obviously the building in Hinwil and the capacity expansion into the Nexus building. Looking at the balance sheet. The balance sheet is very sound. We have an equity ratio of 71% and the net liquidity of CHF 69 million. We had extremely strong capital returns, return on invested capital of 28%, a return on capital employed of 36% and the return on equity of 30%. Based on this strong performance, the Board of Directors proposing a dividend of CHF 10 per ordinary share. This is up 50 Rappen compared to the last year. This proposal corresponds to a payout ratio of roughly 68% and is sustainable, considering the growth ambition of BELIMO and the elevated investment we will face in the coming years. It's a continuation of our dividend policy of a stable and increasing dividend over year. On this chart, we can see the development of the key performance metrics over the last 5 years. All figures show a very strong development. Sales growth increased to 23% and EBIT margin constantly increased to 20.8% in 2025. Capital returns improved and achieved 27.8% measured as return on invested capital and 30.2% as return on equity. Free cash flow is impacted by the investments in growth, both on the working capital level and also on the investments into capacity. Furthermore, we continued our efforts on sustainability and our ESG performance is well on track. Our SBTi targets were approved, and we are on track with our greenhouse gas reduction path. Our Scope 1 and 2 emissions were reduced by 14% compared to our base year of 2022 and our Scope 3 emission by product solds were also reduced by 14%. And we help our customers reducing their greenhouse gas emission and continue our efforts towards their Scope 1 and 2 reduction emissions. Retrofit, as Lars already mentioned there, and showed some of the example, is a very strong example of this investment and this contribution at our customer sites. Furthermore, we also contribute with our -- with the BELIMO Climate Foundation, decarbonizing buildings of nonprofit organization and with that, compensating part of our greenhouse gas emissions. Our efforts are well recognized, and we are rated AAA by MSCI and ecovadis silver for our efforts. Let me conclude on the last year's business. So overall, 2025 was extremely successful for BELIMO. We implemented our growth strategy that paid off, and we could accelerate our sales growth to 23% in local currency. EBIT Margin expanded by 159 basis points, absorbing the negative impact both from tariffs and the FX effects. Capital returns are very high, and the balance sheet is sound. We offer an attractive dividend of CHF 10 per share to our shareholders, reflecting the investments into the future lows. Let me conclude with the calendar. So the Annual General Meeting will be held on March 23. The ex dividend date is March 25, and the dividend payment is scheduled for March 27. We will issue our half year results on July 20. And as Lars already mentioned, we will host an investor event on September 1 in Hinwil. And there you will have the opportunity to join the inauguration of our new building, and you will also get insights into building tomorrow and our new product family. With this, I will hand over to Sarah for a short introduction of herself and then an update on the Americas business. Sarah Bencic: Thank you, Markus. So as you may all have seen I joined BELIMO on October 1, and I've spent the past several months working to build a deep understanding of the organization as well as a robust plan to ensure a smooth transition with support from my predecessor, Jim Furlong; as well as the broader Americas team. And so I'm excited to formally step into my role as Head of BELIMO Americas as well as a member of the Executive Committee next week, taking on leadership of a healthy growing regional business that continues to benefit from the consistent execution of an effective multiyear growth strategy. My experience in several large global manufacturing organization spans leadership roles across multiple functions and industries, including 5 years in the HVAC building automation industry with Honeywell. And I'm looking forward to leveraging the expertise I've gained through these experiences to continue moving our strategic growth plan forward in the Americas and optimizing for growth as we continue to build scale. Similar to the global sales trajectory that Lars walked through, growth in the Americas has accelerated over the past 10 years. During that period, we experienced a 12.7%percent sales CAGR in local currency, but the acceleration grew from 6.2% CAGR in local currency over the first 5 years to 16.6% over the prior 4 years and increasingly to nearly 32% of growth in local currency year-on-year last year. The majority of our growth last year came from our core HVAC verticals, and this growth stemmed from a few different areas, increased momentum in our RetroFIT+ program, the strength of our customer support and training offerings and increased adoption of higher-value solutions as well as our Sensors and Meters business line. The remainder of our growth came from the data center vertical, which was driven both by rapidly increasing capacity and the shift to liquid cooling. And both of these increases were amplified by the approach that we've been taking to owner engagement that I'll walk through in a little bit more detail. As Markus outlined, an additional event which impacted our Americas business was the imposition of increased U.S. tariffs on imported components. And that tariff rate was changed by the U.S. government several times throughout the year, making it extremely difficult to predict the longer-term landing point, still making it challenging to predict that. However, despite the volatility of these changes, we used a more measured approach in our response. Taking a planful, single midyear price increase that was communicated to customers well in advance. And our customers appreciate us taking such a measured and planful response, which allowed us to preserve customer loyalty while still securing price growth to mitigate our tariff exposure. The growth drivers for 2025 are underscored by our general competitive advantages that we lever across the regions, including here within the Americas. We've built trust with our customers through our focus on quality and our reliable short lead times. We are viewed as experts in our market due to our global leadership position and our pure-play focus on field devices. And serving in this role as a trusted expert allows us to build and maintain the long-standing customer relationships that support sustainable growth. What's more is that we're able to leverage these competitive advantages across all of the 30 verticals that we serve. With these verticals spanning public access buildings, like education and health care, production buildings, including high purity manufacturing and data centers, infrastructure buildings, including warehousing and residential buildings, including high-rise residential as well as a variety of verticals that don't fit cleanly into any of these one specific categories. And this breadth of verticals really provides us a wide range of growth opportunities. Returning to our 2025 growth specifically, increased solution adoption and the strength of our customer value offerings played key roles across all of our core HVAC verticals. On the solutions side, our growth was a result of multiyear awareness efforts to drive adoption of more advanced technologies and our full portfolio breadth. Our energy valve is a fantastic example of one of our more advanced and higher-value solutions. And while we did see growth of the energy valve stemming from the data center vertical, we also saw increased energy valve sales coming across our core HVAC markets through our retrofit opportunities. From a breadth of portfolio perspective, we saw increased adoption of our Sensors and Meters business line, resulting from strong multiyear cross-selling efforts. We also kept a strong focus on maintaining a differentiated customer experience. Some examples of this include increasing the team by 20% year-on-year to over 720 FTEs to maintain short lead times and high customer engagement levels while accommodating our growth. In addition, we delivered over 50% more in-person training courses year-over-year to advance customer understanding, build brand and product familiarity and help our customers address the trade skills talent scarcity. As mentioned previously, RetroFIT+ also gained momentum globally and as well as here in Americas across the core verticals. We saw a 30% year-over-year increase in the number of converted projects in the region. One great example of the power of this program is the work that we've done with the Paramount Group. Paramount completed RetroFIT+ buildings and 3 RetroFIT+ projects in 3 key buildings in New York City to start preparing for upcoming local energy reduction regulations. These projects reduced energy consumption across these buildings by over 4 million-kilowatt hours annually, which translated to over USD 1 million of energy cost savings annually. In addition, these projects enabled Paramount leveraging substantial rebates from their local utility to help fund the investment in these projects. And what we're seeing as we get further from some of these initial project completions is it's opening up 2 sets of future opportunities for RetroFIT+. The first is the opportunity to complete additional RetroFIT+ projects in additional buildings at that same portfolio management group owns. And the second is that as the stakeholders that were a part of this powerful project advance their careers and move into new property management groups, they can choose to implement RetroFIT+ projects in these new organizations and creates new opportunities there as well. Within the data center vertical, our owner engagement approach has been key to our growth. The number of stakeholders and the interactions between stakeholders in the data center space is a bit complex. Data center owners and technology providers collect inputs from research organizations and mechanical and electrical consultants. And these data center owners and technology providers or hyperscalers and chip providers then influence and transact with general contracts -- general contractors who influence and transact with mechanical contractors, who influence and transact with a variety of stakeholders shown here in the dark teal that we, as BELIMO transact with directly. Over 5 years ago, we established a dedicated data center organization whose exclusive focus is to engage with these key stakeholders that ultimately influence the entire purchasing process. This team partners directly with data center owners and technology providers to inform decisions on specifications. And in addition, they participate in key research organizations to ensure that we collect insights into future application needs in this rapidly developing industry. This long-term dedicated focus on these key decision-makers has been a critical enabler for our strong adoption of BELIMO solutions and data center applications. As we shift the lens from the retrospective of 2025 to the outlook of 2026 for Americas, the focus does not change. We will continue to execute on our growth strategy. We expect continued double-digit local currency growth in 2026, and our drivers to achieve this growth remain the same. Increased adoption of higher-value solutions and strong customer value offerings like RetroFIT+ in our core HVAC verticals as well as continued capacity growth and deployment of liquid cooling in data centers. We'll need to ensure that we remain focused on maintaining operational excellence and a differentiated customer experience as we continue to scale. So we'll be making strategic investments in both capacity expansion as well as people. We've signed leases for new buildings in Sparks, Nevada as well as Stratford, Connecticut that will nearly triple our operational footprint in the U.S. from a square meters perspective. And we will -- we are planning to increase the team size by 16% to about 840 FTEs to ensure we can maintain short delivery lead times and continue to offer a differentiated customer experience. And with that, I will hand it back to Markus to share our global outlook for next year. Markus Schürch: Okay. Thanks a lot, Sarah. Let me conclude with the overall outlook for BELIMO for next year. So overall, we expect the continuation of the market environment and the positive momentum for BELIMO both in the general HVAC industry, but also specifically in the data center vertical. We expect the strong top line performance with sales growth in the mid-teens. That takes into account the favorable market environment and the strong basis of 2025. Regarding margins, our EBIT margins will remain strong and are expected to be ahead of 20%. Obviously, there are very significant risks and uncertainty. Above all, obviously, the unforeseeable tariffs going forward and also the foreign exchange volatility that can impact both top and bottom line of BELIMO. Our data center business is linked to the investments of -- into data center and the respective CapEx mainly of the hyperscaler. This has both elements, a downside element in case of a slowdown of investment but also an upside element in case of accelerated investment or especially also faster deployments of the infrastructure. Independent of the short-term development of the market, we will continue our investments into our growth strategy. So we'll continue our investments into capacity and also continue our CapEx program and likewise, we'll also build up and increase our investments into our growth initiatives going forward. With this, I conclude the presentation and hand back and open the floor for questions, and we'll hand back to Stephan for the moderation of the question-and-answer session. Stephan Gick: Thank you, Lars, Markus and Sarah for the presentation. Now it's time for Q&A. [Operator Instructions] We will now start with questions in the room. Please first introduce yourself and the institute you're representing. Patrick Laager: Patrick, Berenberg. Three questions. You said you're guiding for 9% to 11% sales growth for the midterm or long term. Now assuming 8% to 9%, but please correct me growth in building applications and your exposure for data center to increase from 17% to, let's say, I don't know, 30% in the next 3 years, 4 years and assuming a normalization of growth in data center, I get -- and this is a very reasonable number, I get 15% growth on average. And you still stick to your 9% to 11% growth? Do you have any indications that potentially growth will slow down significantly in the next 2, 3 years? This would be my first question. Markus Schürch: Yes. For sure. Thank you for the question. It actually -- if you look at the overall model now looking at 10 years, we stay with this 9% to 11% because you have, of course, an acceleration in growth over the next years, but maybe '26, '27, '28, but then, of course, these investments could also decrease then again from this very high level that we are today. We have also to remember that these are extremely high levels that we have today in this investment boom. And therefore, there will be decrease, of course, at one point of that portion of the DC business, that impacts then the number. Therefore, if you look at it, we remodeled this, then it comes down again to between 9% and 11% eventually. Patrick Laager: And then question 2 and 3 combined here. Can you provide any insights about the pricing dynamic. If I remember well, you increased prices by 8% in North America or in the U.S. and you were planning to increase prices by 8% again early this year. The question here is, did you increase prices last month in the U.S.? And what kind of price effect should we model overall for '26? This would be one question. And the last question is about U.S. tariff exposure. You said -- you explained actually in a very detailed way how tariffs have developed last year. Can you share how much was the average of your U.S. tariff exposure last year? And how much would -- you can't really expect this year, but the average for '25 would be very helpful here. Markus Schürch: Okay. So thanks for the questions. So I mean you summarized well, our pricing actions in the Americas. So we increased about 8% midyear. And that they become effective throughout the year. That was the most of this 3.5% price increase what we saw as the contribution on the overall sales. We've increased list price again by about 8% as of January 1, and they will also now gradually be implemented as there. We have got standing orders that are still conducted according to the old prices. And gradually, we'll see now these price increases. Now with regards to the impact of tariffs. So for this year, obviously, it will be in the range of 15% and 19%. So depending on what's going to happen or something completely different in 150 days from now. And then with respect to the last year, so the average number is also in this -- towards this amount as there were a season of 4% and then a season of higher of about 10%, 14% tariffs short period of very high tariffs and then going back to 15%. Tobias Fahrenholz: Tobias Fahrenholz from ODDO BHF. Staying with growth and the sales outlook, how dynamic was your start into the year, so Jan, Feb so far? And what is the rough percentage that you have put in for the data center business? That would be the first part. And the second part then maybe on M&A. Has this become more in focus now? I mean the dividend is only slightly up. Should we read something into it? And which target areas would you look for? Markus Schürch: Okay. So let me start with the business. I mean, we don't obviously share all details, but we had a very good start into the year. And that is also the basis though, is we don't see a change of the market dynamics. Obviously, we don't disclose the details of how the composition of the sales is. That is then information we'll share again with the half year results. Then with regards to M&A, it's an opportunistic topic. We are actively looking into it. And it's always an opportunity. We will see some bolt-on acquisition, especially on the technology side. There's obviously nothing to read in from a dividend policy. This roughly 70% payout ratio that is in line with the investments that we need to do. And we want to finance that based on the operational cash flow, both the working capital and also the capacity increase. Martin Flueckiger: Yes. Martin Flueckiger from Kepler Cheuvreux. I've got 3 questions, and I'll take one at a time. First one is on your elaborations markets regarding product mix. Now I understand the impact was there on the top line growth, but just wondering whether you could clarify or elaborate a little bit on the impact on the EBIT margin in 2025 and what kind of impact or contribution you're expecting for margins in 2026? Markus Schürch: I mean, as mentioned, we have got there a positive contribution from the higher-end application and that also has a positive effect on the EBIT margin and was obviously part of the higher margin that is coming also from higher-end applications. Martin Flueckiger: I understand, but could you give us a little bit of a flavor of how much that was quantitatively? Markus Schürch: No, we don't disclose the details of the buildup of the margin. Martin Flueckiger: Okay. And then the next one is on the tariffs for this year. I realize you were talking about 15% to 19% for BELIMO, but again, in terms of margin or in terms of EBIT impact, what kind of number should we plug into our EBIT models here -- EBIT bridge models? And what kind of -- that 8% you were referring to in terms of pricing, that's for the Americas only, right? Markus Schürch: Yes. And that's for the Americas. Martin Flueckiger: Right. Okay. So just the guidance on the tariffs for 2026 in terms of margin or EBIT. Markus Schürch: Well, I mean, you can assume that this price increase is compensating the effects of the tariffs that will bring us back to a plain level that we had at the beginning of last year. Martin Flueckiger: Okay. And so are you striving for compensation in terms of absolute Swiss franc numbers or in terms of margin? Markus Schürch: In terms of margin. Martin Flueckiger: Okay. And then my final question is on CapEx and net working capital. I realize both have been up as a result of your growth initiatives. Just wondering, in 2026, what should we expect or plug into our models for this year in terms of CapEx? And also, what are you going to do with network capital? Markus Schürch: I mean regarding net working capital, the assumption is that it will remain stable as a percentage of sales. So we'll increase that gradually both on the inventory and also especially on the accounts receivable side. And with regards to CapEx, we expect a similar number like last year, so an elevated CapEx also for 2026. Martin Huesler: Martin Hüsler, Zürcher Kantonalbank. I have a question on retrofit. Obviously, the economy is quite convincing. First question, what share in terms of sales is now retrofit? And do you see the same good dynamic in Europe as in the U.S.A? And generally, do you get now much more projects because you can prove and you have now the visibility that how much, I mean, payback of 6 months, that's amazing. This should result in a high demand, I expect. What do you see there in your -- maybe your project pipeline? Lars van der Haegen: Well, thanks for the question. I mean in general, retrofit new building business represents about 40% to 50% of our sales and retrofit about the rest. And this should accelerate overall. Of course, there are some studies, for instance, in the European Union that says it should be threefold the retrofit rate in order to achieve the climate objectives. And this should accelerate in general. What we do with our initiatives, we call it also business development. It really helps to sell retrofit opportunities for our customers. We are out there supporting our customers to sell these opportunities because it's, of course, also capacity problem in the market, right, because we have still lack of skilled labor. And if this labor is occupied with new buildings, then they do not have time to do the existing buildings and doing the sales in existing buildings. So there's a big potential to increase the sales in retrofit in existing buildings. That's why we have these examples. So we do that. It's actually, I would say, hard work. This is not just a market that grows even though, of course, the financials are so convinced. It's literally 1 to 2 years max payback on most of these opportunities. So everybody, all building owners, most building owners should invest in these opportunities. But we have to promote it, and that's why we have this initiative. Could I answer your question? Martin Huesler: Maybe another question on data center again. You were alluding to, I think, CHF 40 million to CHF 60 million per gigawatt. And I think we already talked about this with the sales numbers. But where do you stand -- stood in '25? And maybe also, what was the share of liquid cooling more or less in '25 and where can you grow to for you in the next couple of years? Lars van der Haegen: Yes. Maybe in share of liquid cooling, there is still -- every data center today, there's always a part air cooled and a part liquid cooled. So still, if you do liquid cooling, you have about 80% of the heat rejected. If you do with liquid cooling, about 20% is air. And because there's not everything can be captured with the liquid cooling. So this is -- the technology will increase this, but we can bring it to 90%, 95% liquid cooling, but there's still a rest that has to be air cooled. The air-cooled portion is also growing that what we see in the numbers with our Damper Actuators growth in data centers actually growing also still significantly and the air cooled comes in addition. So this has, in many areas, only started with water cool systems, liquid cool systems. So there's still a big potential there with this shift. So newly planned buildings, of course, tend to be planned liquid cooled. I would say about 60%, 70%, but there's still -- a lot of those are air cooled because, for instance, colocation, data centers and so there's high flexibility required, they still work with traditional systems as well depending also on the application, right? Then there is also a retrofitting activity there, data centers that have been built or that are in -- that have been planned so far that they are converted to liquid cooling. So that's also an aspect. So that it's kind of the low-hanging fruit in increasing the capacity for this liquid cooling applications. But there's still a lot of potential in that area for growth. Unknown Analyst: [indiscernible]. Can you disclose how much you will spend for your capital -- for your expansion plans in the U.S. and for the group totally? Markus Schürch: I mean in the U.S., it's a twofold capacity expansion program, as Sarah mentioned. So we have leased 2 buildings. So that's for the short-term planning. And then we will also build on a new building for the longer term in the U.S., but that's down the road a couple of years' time. So at the moment, we mainly have investments into the fit-out part. So that's a fraction of the overall CapEx that we now have with our own building in Switzerland. But over the medium term, we'll then also invest into an own building in the U.S. Unknown Analyst: [indiscernible]. I have 2 questions. With regard to your CapEx plans for the U.S. If I'm correct, it's mainly on warehousing. So it's on logistics. Do you plan to also have a local production there? And then with regard to your CapEx plans, you said next year, in absolute numbers, it will be roughly at the same level as '25. When will your current CapEx cycle be completed? Markus Schürch: Okay. So thanks for the question. So looking at the investments into the U.S. is not pure logistics. So it's customizing and logistics. So that's the finalization of the products. And that's not -- that has also an assembly part of it. So just making the last step of the customization of the product. We already do an assembly part in the U.S. About 30% of the assembly work for the U.S. business is done in the U.S., and that will gradually increase also in the future and that's part of the capacity expansion programs in the U.S. So short term, really focusing on customers and logistics, medium-term also shift more local manufacturing or assembly as we do mostly an assembly part in our own building. Now if you look... Unknown Analyst: Sorry to interrupt. Do you have a target for local assembly in the U.S.? So when you have 30% today, are you going to double that? Markus Schürch: I mean it's clear we also follow their strategy of a local production for the local market. And that has 2 aspects. So first of all, shifting our own work into the U.S. to have also a balancing effect both from a natural hedging perspective, but also from a supply chain security. And medium term also have more local supply base to have also there more stability and more resilience in the supply chain. Obviously, that's a multiyear project. But given the sales growth we have now in the U.S., that's clear the plan going forward. And coming to your second question. So the investment plan, what we have so building on the capacity expansion, that's a multiyear program and it will last for probably the next 3 to 5 years. Stephan Gick: Great. If there are no further questions in the room, we now move to questions via phone. Operator, please go ahead. Operator: First question on the phone is from [indiscernible]. Unknown Analyst: Can you hear me? Markus Schürch: Yes. Unknown Analyst: Okay. [indiscernible] from Baader Europe. Just a question on the data center, please. I understand that you emphasized a lot on this because it's a very big market and a growing market. So I was just wondering about the competition how you feel about the competition? Is it rising or not? And will it be enough stake, I mean, for everyone as well. Yes. If you can elaborate a bit more on this, please. And of course, you can give us some number on the addressable market as well it would be good. And the other question was on working capital. I understand that the growing business will, of course, require more and more working capital, but I was just wondering if there are any programs that are planned in terms of digitalization or AI-driven working capital management in order to gain efficiency. If you can help us on that as well, it would be helpful. Lars van der Haegen: Do you want to answer maybe the second one, Markus. The first one wasn't so clear. Maybe it was something regarding competition, but maybe you can repeat it afterwards. Let's answer first the second one, right? Markus Schürch: Yes. Let's go into details of the working capital management. So we assume about 15% of sales in inventory is our key advantage what we have. Lars mentioned and Sarah mentioned, one of our key advantage against the competitor is the very short lead time we can offer and that obviously requires a decent level of stock. Therefore, our goal is to have about 15% of sales on inventory. At the moment, we're slightly ahead of that. That is in line with, obviously, with the strong growth that we had and also the planned changeover of the products towards the new generation. So that will remain a higher level of inventory over the next 2 to 3 years and then the plan is going back to 15%. But we will never have a very small working capital level as this is a key competitive advantage, and we will maintain that. Stephan Gick: I think the first question has been about competitive situation in data centers, right, and whether there could be potential new entrants coming into it. And I think also here, I mean, Sarah already gave the answer with our strong competitive advantage generally, which are also valid for data centers, right? And obviously, we also do joint R&D together with chip manufacturers, but also with data centers, for instance, in cybersecurity. And keep also in mind, I mean, this is a highly innovative area, data centers, right? So here, you need to work together with the technology leader. And I think so these prospects also in this area are really good for us also midterm. Lars van der Haegen: And maybe also to mention that, now of course, as this is booming, so many companies would like to jump on this bandwagon. But it's not so easy to join a boom during the boom. And we have been in this industry since 2 decades that we have supplied Damper Actuators into data centers to these hyperscalers. And so our brand is really well established in this market. And then as Sarah has demonstrated, so we now make sure that we continue to provide very best service to this industry to remain the leader and to expand actually our position that we have also with the economies of scale and then also with our global footprint and a very agile organizations that we are that we can leverage to supply these data centers. As also Sarah has shown, it's sometimes quite complicated each data center project because the supply chain is -- comes from all over the world into one location. And this needs also a lot of agility by supplier by us to provide all these services during this fulfillment phase of delivering components into the final destination. Stephan Gick: Next question, please? Operator: Next question is from Chase Coughlan from Van Lanschot Kempen. Chase Coughlan: I just have 2. Maybe starting off and going back to the data center dynamics. Just based on your '26 guidance and if we assume a bit the rest of the business continues sort of growing at the same rate, it really implies the massive drop off in the growth momentum seen in that data center portion of your business. So I'm just curious if you can help me reconcile what you're expecting there. If I'm reading that right. I think most other players exposed to the same vertical are suggesting that they're seeing accelerating growth there. Sort of any more color on that data center growth expectations would be very helpful. Markus Schürch: Well, let me take this one. So I mean, we -- as I mentioned, we expect a base growth in our HVAC business and then a special growth on data center. As you mentioned there, it depends a bit on what is the investment, but especially also what is then the actual fulfillment of the project. Those are large infrastructure projects. And increasingly demanding becomes the supply of energy of electricity as they are consuming big time electricity. And that is starting to also impact the deployment rate. So it's not only a question of the investment that goes in, but also a question of how quickly this can be executed. And therefore, there's a high upside potential also if that's going to be accelerated on the deployment case and then obviously also there, a higher growth rate is possible on the data center side. Chase Coughlan: Okay. Perfect. Yes. That makes sense. And then maybe my second question, regarding the top line guidance. Do you have any kind of specific expectations around the phasing of that growth in the first half versus second half? Should it decelerate or accelerate throughout the year? Or should we expect somewhat stable? Markus Schürch: We don't expect the changing behavior of the dynamics, and therefore, no specific seasonality of the 2 half years. Stephan Gick: The next question, please. Operator: Next question is from Sebastian Vogel from UBS. Sebastian Vogel: I've got 3 questions. I ask them one by one. The first one is a quick follow-up. So to the guidance for '26, does that sort of mean your underlying growth for the non-DC business is supposed to be around like 9% to 10%, and then you have the remaining 40% to 45% for data center. Is that the right thinking? Markus Schürch: Well, that's about the right thinking exactly. Sebastian Vogel: Great. Second thing is on pricing. I mean, you elaborated a couple of times there. But nonetheless, sort of a group-wide number. If you can help us there, what sort of the net pricing you think will be feasible for you for 2026, adding up or aggregating across all regions? Is there a number that you can share with us? Markus Schürch: Look, we just can give you the general price increases. So we have got -- we've mentioned is 8% in the U.S. The U.S. is roughly 40% of the overall business. So that translates then to something like 3%, 3.5% overall. And then we have the normal price increase in the other region, which is in the range of 1% to 2%. Sebastian Vogel: Got it. And then the last question is with regard to the margin and the FX impact for 2026. Do you have some sort of like number on hand like a 10% change in U.S. dollar is having whatever basis points impact on your margins that you can share there? Markus Schürch: Yes. We can share roughly 10% weakening of the dollar has an impact of about 150 basis points on the margin. That is always assuming that all the other currencies stay stable. And then there's also an important development, how is the euro developing as a lot of the material cost is denominated in euro. So if there's also then a shift and a weakening of the euro in parallel of the dollar, there's also an offsetting effect in there. So it's a maximum effect of about 115 basis points of 10% weakening of the dollar. Stephan Gick: Next question, please. Operator: Next question is from [indiscernible] with [indiscernible] Intelligence. Unknown Analyst: I just have 1 on depreciation. Can you please help us explain what depreciation assumption you are modeling for your 2026 EBIT margin guidance? Is it reasonable to expect that we can see a step-up in depreciation and amortization expenditure as they follow the CapEx trajectory? Markus Schürch: Well, you're correct. Gradually, the depreciation rate will go up with the strong investments. But bear in mind, we are investing into building with a very long depreciation time as well. Therefore, the effect is somewhat lower than from what you would expect from the higher investments on CapEx side. We don't share an exact number for '26. Stephan Gick: Okay. Next question, please. Operator: The next question is from Fabian Piasta from Jefferies. Fabian Piasta: Can you hear me alright? Stephan Gick: Yes. Loud and clear. Fabian Piasta: Great. Okay. So you were elaborating on medium-term horizon or outlook. I understand that is 9% to 11% sales growth and between 30 and 35 bps on margin. Would you be able to define the time horizon for that medium-term growth? Are we looking at 5 years? Are we looking at 10 years? Second question would be on EBIT margin 2026. So in order to get to where consensus is, let's say, 21.5%, that would require 85 basis points year-over-year from the current margin. This looks actually durable. And obviously, markets didn't really like the cautious EBIT guidance. So where do you think are the biggest headwinds apart from tariffs and FX? And the last question maybe on the dynamic and change in data center projects. So what has really changed? I mean I remember first half of 2025 was still very air heavy. I think there's probably going to be some acceleration in liquid cooling in the second half. Do you see a major shift in, let's say, maybe from brownfield to greenfield in 2026 supporting further growth in data centers? Lars van der Haegen: In the first question maybe regarding the horizon there that's really related to our long-term strategy. That's about a 10-year horizon where we are planning our growth rates and development also of our profitability. And this is very important because when we develop new products, new applications, you have an R&D cycle and the product introduction cycle. And that, in total, takes about 7 years to become profitable right, from an idea to profitability can also be longer. And so building up a market, a new product range and on takes a decade or more. That's why we need this long-term strategy and also why we communicate that this is our ambition to have that growth level. And then the second question was then back to '26 that I give back to Markus. Markus Schürch: We look on the margin, we guided on this ahead of 20%. And as you mentioned, I think the uncertainty is extremely high this year. I mean, you've seen the tariff situation can change basically overnight. And most likely, we'll see other tariff regimes in the course of this year. Then also the impact of the FX, that's also very, very broad. The forecast where the dollar is at the end of the year are very widespread. So that's obviously also a very strong impact on top and bottom line. And the third key element is obviously the sales growth of this year. So the higher the sales growth, also the higher the operational leverage, and that also has then an effect on the EBIT margin. So overall, a very high uncertainty. And therefore, also, we are only guiding on this 20% plus. Stephan Gick: I think you had a third question on data center trends, right? Fabian Piasta: Whether you see a shift in projects. Lars van der Haegen: I mean, on data centers, there's, of course, a lot of information around. And I think obviously, there's a lot of investments that have been announced by the hyperscalers that you are likely aware of and that's very transparent that communication to some degree. And then it's also, of course, the colocators that are investing. And then there's also corporate data centers. There's all the hyperscalers, corporate data centers, corporate or government and then you have the colocators. So this is, of course, also if you go into the details, a market of many players. And so many investments are happening. So this -- last year, I think the overall investment was depending on the sources CHF 400 million to CHF 500 billion worldwide, predominantly in the U.S., about CHF 300 billion, some sources go with higher numbers. And then this year, '26, this would higher and then '27 even higher. But then again, Markus pointed out there are many constraining factors to this. Of course, the energy but also the supply chain overall, there are some components from some manufacturers that have lead times until 2030, transformers and things like this. And so that will be -- we'll find out what can be really then applied of all these investments and what the time horizon, how this will play out over the next years. Stephan Gick: Okay. Thank you. Then I think we have one final question online. Cedar. Cedar Ekblom: I have 2 questions. Can you please talk about what you're seeing from a replacement demand perspective in the U.S. in the data center vertical? I know it might be a bit early but this has been discussed as a potential growth kicker going forward. So it would be helpful to hear what you're hearing from your data center customers. And then can you talk a little bit more about your new digital generation of products. You made quite a big point of this in the presentation. So I'd like to understand what's integrated sensors into the digital offering means, how it's helpful to your customer? And then I think you also made the point that your competitors don't do this or that you are on the only player that's sort of providing this sort of harmonized digital platform. And why are your competitors not doing this? What is the barrier to them closing the gap to you? Because it does sound quite material in terms of ease of use and deployment. Lars van der Haegen: Great. These are excellent questions. So on the last one, I could talk for another 2 hours. But maybe the first one regarding data center retrofit. So there is overall with the overall increasing in the efficiency of the overall server applications from the chipset to the overall server application. Mostly, we hear there is an economic life of about 5 years of a server. And then afterwards, it makes sense to replace it simply because of the financials. They would still run longer, depending on what application it is exactly, they might still do 7 years, 8 years, 9 years. But after 5 years, mostly, it makes sense to replace them partially. That doesn't mean that the valves are necessarily replaced or the building -- the HVAC part of the system, but it could be but that's typically the situation. Then regarding the new digital generation. I mean the features overall, it's just why competitors don't do it. It's a big investment. We are the largest -- I mean, second -- or the largest competitor, I have to say, is about half the size of BELIMO in terms of sales with the same field devices and it's probably not profitable to invest in such a platform. And managing a platform is, of course, challenging, but we have decided that part of this long-term growth strategy investing also in Damper Actuators and Control Valves, that's our existing business, investing a lot in there so that we really have a new platform that gives us this, of course, cost advantages as well. But also the flexibility to build products in the future, different products to adapt to the demands from the market. And then this overall user experience. So often when you look at competitors and their product catalogs, it's kind of a mess. It's like very -- just different products. They've sourced them from different -- just not a consistent range. And at BELIMO, we have really consistent range -- consistent look and feel and that makes it unique. And I think it's very powerful, having a platform, looking also at other successful companies. I mean, talking about these hyperscalers, they are typically successful because they manage a platform and can leverage the platform. Could I answer your questions? Otherwise, I recommend also... Cedar Ekblom: Yes. That was helpful. That's good. I just wanted to follow up quickly on the replacement point. Have you heard yet from your hyperscaler customers that they would be reusing the valves? Or is it a case of it would just be simpler to replace the valve at the same time as replacing the servers and the chips? Because I think this is an important point. We know that the service might once be replaced from a sort of economic perspective. But would it be simple to just to reuse the valves? Or do you not have color on that yet, maybe? Is it too early in the process? I understand that. Lars van der Haegen: Yes, thanks. It's a good question. It depends always, it's, of course, also when you go into details of the application, it gets complicated like everywhere. And it depends if you have, for instance, a server that's like 500 kilowatts that it requires for cooling. And then the new server is also 500 kilowatts, then you could replace that without replacing the valve. But if you have then a server that has a higher capacity than you would also require -- need to replace the valve. Then also, it depends on the overall setup. Sometimes it's just more efficient to replace everything, make everything new. And sometimes it's just easier to just replace the server setup. So it really depends on the technology that's there, but also on the preferences of the investors, the engineers what they are doing. But in general, we can say it's certainly a more retrofit intense this market segment of the data centers versus Sarah presented the 30 segments. Typically, our products, they last for more than 20 years. So they are in these buildings for 20, 30 years. And here we have, of course, a much higher rate of retrofit. They're also controlled these applications in a sense, so they are monitored and so for the uptime and the reliability of the application. So it's a more critical application than in some of the other segments. Some other segments, of course, also critical thinking about pharma, semiconductors and so on. But here, we have definitely a higher retrofit rate. Stephan Gick: Great. Then thank you, everybody. This concludes today's presentation. You are now more than welcome to join us for lunch. Thank you for your attention today, and goodbye. Lars van der Haegen: Thank you all.
Stephan Gick: Good morning, ladies and gentlemen, and welcome to BELIMO's 2025 Results Presentation. My name is Stephan Gick, Head of Investor Relations, and I have here with me Lars van der Haegen, CEO; and Markus Schürch, CFO of BELIMO. We are also pleased to have today online with us, Sarah Bencic, our new Head of Americas. Lars will start the presentation with a business and market review, then Markus will highlight the financials followed by Sarah introducing herself and BELIMO Americas. We will conclude the presentation with the outlook and take questions at the end. With that, I would like to open our presentation and hand over to Lars. The floor is yours. Lars van der Haegen: Thank you, Stephan. So good morning, everybody here at the Hotel Widder. And of course, also everybody who is here remotely. We look forward to the program today, and we conclude here then also with Q&As for everybody, also, of course, those remotely and then a reception with a light lunch, upper wish, as we call it, for those who are here, and I look forward to meeting you and talking to you this morning. Gick mentioned, we have Sarah Bencic online. Today is actually a snowstorm in the U.S. Our factory is closed today. Flights have been canceled to the U.S. those that left today from Switzerland, and -- but we still have a connection, so -- but it might be a weak connection, but yes, we will keep our fingers crossed Sarah's speech later on. 2025 was a great year for BELIMO. I start here also with a follow of our employees. We have celebrated a lot last year, 50 years, BELIMO, and that was also the reason why we thought we have to make it a strong year with great financial results because it wouldn't be fun to celebrate without good numbers. But what's really behind this result is our more than 2,700 colleagues who are working highly engaged following a purpose and a proven business model. And that's really very nice, gives me the motivation every day to -- on BELIMO and to see this company working, and it's just amazing, and therefore, we would like to dive into the details -- the summary of what happened last year in terms of financials. Our growth rate in local currencies was 23%. EBIT grew by 29% and the return on capital employed was 36%. We are proposing a dividend of CHF 10 per share. And the outlook, we expect mid-teens percentage sales growth in local currencies this year. Markus will later on deep dive a bit into this outlook. Some of the other elements will cover throughout our presentation. First, the market dynamics. Of course, a very dynamic year in terms of the data center business, obviously, we have now sales -- had sales of 17% of our total sales in the data center business. We grew slightly less than half of the growth in 2025 that the data center business was representing. From a technical standpoint, there was also more and more, of course, liquid cooling employed, but also liquid cooling at higher temperatures as it is written here, that means temperatures around 40 degrees C for a supply temperature to cool servers. That means that there is less mechanical cooling involved. So there is a so-called free cooling and mechanical cooling combined. And this is actually quite advantageous for the applications BELIMO covers because it requires more valves to handle these systems. Then the overall construction market, the nonresidential construction market was actually slightly down, minus 1% on average globally. But we've seen an uptick in retrofit opportunities, and we'll cover this later on with 2 examples. And then lastly, the overall economic environment of 2025. We had the geopolitical situation, fueled, of course, also by these tariff ideas and concepts and the negotiations now again in discussion over the weekend. And we, of course, don't know what's going to happen over the next months and years, but we know it probably will make -- keep us busy for the next 3 years talking about tariffs, managing tariffs and implementing tariffs, and Markus will actually deep dive a bit into that topic what did it mean for 2025 regarding tariffs at BELIMO. The dynamics and the markets are, of course, related to our strategy -- to our growth strategy. And we are, of course, focused long term. We have a long-term planning, a 10-year horizon on our growth strategy with our 6 initiatives. And our 6 initiatives there actually in our annual report. And remember, always -- Warren Buffet always when asked, why are you so successful. He says, well, we are reading the annual reports. And you don't have to read all our annual report. They are getting so long. But I recommend you to read Page 17. And we talk about our growth strategy there and explain the status of each of the 6 initiatives. We touched upon some of these initiatives on the data centers, in particular, I want to mention what we did last year, we actually increased our organization for data centers. We have a dedicated sales, business development organization with application consultants with product managers fully focused on data centers. We've expanded that. We built a data center application center in Singapore. And we have also designed an application center for our Danbury, Connecticut location that we are building right now, that will be inaugurated in fall. Then we have started last year, in particular, with product developments, particularly for data centers, both on the material side of valves, for instance, more that valve range is completely available in stainless steel, but also in terms of the intelligent component, the sensors and the actuation and metering, the BELIMO energy valve with special implementation of industrial automation protocols to interface and special functionality there from a software standpoint. Now our 6 growth initiatives. They are built on 3 megatrends. Always crucial that the company's success depends mainly on the underlying trends. We have 3 key trends. One is urbanization that is still -- and I checked the number again 70 million people every year we are adding to this world. So 70 million every year, we have more. And the 70 million people, 80% of them, they love to live in cities. So they are clustering in cities. And in the cities, we see that trend also that second-tier cities are developing, of course, in Asia, but also, for instance, in the U.S., cities like Austin, Nashville or Denver are growing. And you have more densities in cities, you build higher, and this requires more HVAC building automation to manage these buildings. Then climate change. That still is the single biggest challenge for us humans in the world. Every problem we have in the world gets worse, with climate change and if we do not mitigate this. And the best way to reduce CO2 is energy efficiency. Energy efficiency is the biggest fuel we have and the best way to reduce CO2. Energy efficiency measures in buildings with BELIMO components, they have 3 main advantages: Firstly, they pay for themselves. Have an example afterwards. They increase the quality of life in terms of indoor air quality, safety, and they make the building owner energy independent. So this is really very powerful, and therefore, a major trend that we are directly supporting with our business model. Then data centers. On the data centers, obviously, we have the data center trend this market segment. We have some related trends. Sarah will present afterwards, the 30 segments of the buildings, how we segment these vertical markets. Their related segments such as energy storage or semiconductors who are also benefiting from the digitalization trend and the electrification trend. And then regarding our product range. So as we integrate in building automation system, we see more decentralized application, decentralized intelligence, edge devices and so on. So it's absolutely basically playing into the BELIMO product range, the digitalization in building automation and industrial automation. And therefore, very crucial for BELIMO our platform of components, and we have launched in November, the first products built on the new digital generation. Maybe you've seen this launch video. That was -- it's a 20-minute launch video. I can recommend it on our website. And the new digital generation platform is a new platform. We have introduced the first platform in 2005, so 20 years ago. At the time, we were integrating damper actuators and Control Valves in a platform and have launched this platform and have been very successful with this. Five years ago, we invested into a new platform that, in addition to Damper Actuators, Control Valves, integrated Sensors and Meters in 1 platform and we brought the modularization level 1 degree further. So we have basically a Lego-type system here, where we have as few components as possible in the platform, and it makes us very flexible. For instance, when we integrate into a automation system, as indicated here on this depiction, we can change 1 component. Today, we have about 10 different interfaces into building automation systems. For instance, the most common used in building technologies BACnet. There is a BACnet based on a physical layer RS-485 on an IP layer and then there's BACnet Secure Connect, special cybersecurity requirements that's also on an IP level. There are 3 different interfaces. They need 3 different kind of hardware modules. And we have with this platform the opportunity to just develop 1 of these modules and put it across the whole range and put it on 20,000 components. So otherwise, if you do not have a platform, you have to make a discrete development for every component with a new PCB, a printed circuit board, and this is where it's not scalable. So this platform really makes us unique. There's no player in the market that has a platform in this area of application where we play. Furthermore, of course, the handling of our products there. It's very consistent in terms of the design. Also, the industrial design, that's important too, as we sell a lot to OEMs or original equipment manufacturers. They put our components on, for instance, an air handling unit, and we have 10 BELIMO products or an air handling unit if the industrial design looks consistent, the overall product looks better. But also, it's the same handling, how you install it, how you configure it, for instance, here with the BELIMO app, there's 1 app. There's the assistant link that's indicated here that allows Bluetooth collection. There's also NFC that's available directly on the component. So you just have a very consistent range for commissioning and, of course, for integrating. So this platform is crucial in order to, of course, supply the world with BELIMO components. We also have to invest in our capacity. So therefore, we are on track with our capacity expansion. We do follow an asset-light model. If you analyze the numbers correctly, you see that our sales per employee per FTE is CHF 445,000 per employee. Our depreciation as a percentage of sales is 2.8% so that shows the asset-light model. Also the trend is positive. So in the past, we were around over 4% of depreciation. And over the years, this came down to now under 3% and also the sales per employee increased over the years. So the trend towards this asset-light model also is positive, but we still need some buildings. So 1 that is -- in Hinwil, just to focus really on our footprint. We have now several warehouses -- external warehouses that we consolidate with the new building, we call it Nexus and that's being inaugurated end of August. And you are actually invited on September 1 for a Financial Analyst Day in Hinwil where you can visit us and we show you the new building, along with other interesting things about BELIMO. Then we inaugurated also BELIMO China, CESIM House LEED Platinum building. This I was already talking about a year ago because we inaugurated in January '25. And then we have some projects in the U.S. that Sarah will talk about. Now having a look at our growth strategy over the years. We have a growth strategy -- long-term growth target. It's always nice to look back and review that growth strategy, how did we do. And obviously, the numbers now are -- have been quite positive, but I would also look back if the numbers wouldn't be that good. We've implemented the first growth strategy in 2016 and had an average CAGR of 8.8% over the 5 years period. And then over the last 5 years, it was a 13.8% CAGR. Over the last 20 years, 10.3% CAGR in growth. So this growth strategy is working. And we actually put in the plan 2016 with the growth strategy that we would make CHF 1 billion in sales in '25, and we made it. So we are quite happy ourselves that we made this number. And we have, of course, also in our growth strategy really focusing on the growth rate long term of 9% to 11%, as communicated previously, an organic growth rate between 9% and 11%. That's the long-term growth rate, obviously, now fueled short term by some of this data center growth, but that's our long-term plan. Then important regarding the profitability, the EBIT our EBIT number. I think this chart is always good to look at because many of you are always asking and maybe later on, what will be your EBIT in 2026, and we don't know. Because you see the EBIT is going up and down that fluctuates over the year, what we see. It improved over the last 20 years from 14% to 20.8%. So that's an average of about 35 basis points. We believe that over the next years to come, we continue to improve in that range of this 30, 35 basis points over the next 5 years in midterm, long term. But of course, every year, these changes, and we have the fluctuation as, of course, indicated from the past. And I think that's a good indicator to look at also what are these fluctuations that we have on that EBIT level. Now also, I would like to point out that our growth strategy works all over the world. So looking at the top 50 countries we are selling in, it really works in more than 80% of the countries we have, the strategies work in terms for, in terms, for instance, with sensor growth, with energy valve growth and so on. The various topics that we have in our strategy work in each of these countries. And so we have really statistical evidence that it works then all over the world, and that's very powerful. Looking at the 3 markets. Markus will, afterwards, deep dive a bit into the numbers. I want to highlight some of the typical projects that we have. So our business is really widespread amongst many buildings. We still have an order size of about CHF 2,000 per order, very small. There's a lot of orders that we are processing every day, and they go into buildings, small buildings, big buildings. And here, 1 example here in EMEA, that's the Hoffmann Group in Munich. That's a new building with about 1,000 products in there. As an example, then the Embarcadero Center in San Francisco. That is a very nice case study that we actually have. There's also a link on this slide brings you to this case study on our website. There's a video. This is a 48-story Waterfront building in San Francisco, 40 years old, and it's owned by BCX. That's the formerly called the Boston properties. That's the largest listed real estate developer in the commercial building space in the U.S., and it's a great success story. They have retrofitted 6 air handling units in these buildings, large air handling units with 6 energy valves. And they are saving $130,000 per year in electricity costs that they use for -- mainly for chillers, for chilling the building, for cooling the building and so you see the investment is about -- the payback is around 6 months. The investment was around $60,000, so the $130,000 saving per year. So it's really 6 months payback. Unbelievable, great case study again. And I recommend you to watch this video that explains in detail how that works. Another project from Asia Pacific in Vietnam, Ho Chi Minh City, the second large international airport there that's being built Phase 1. There are 15,000 BELIMO field devices in that phase that we have been selling and are selling in this construction project. So that also gives you a bit an impression of an airport. There's a lot of HVAC in there and many of these BELIMO components. Here, also fully equipped from Damper Actuators, Valves, but also Sensors and Meters in this Vietnam airport. So if you have a land in Vietnam on the new airport, then think about BELIMO that makes your landing possible. Now I would like to also talk about our Building Tomorrow vision. Last year, in 2025, when we had our celebration activities, part of that was also looking into the future to '25. What will be the trends in our industry? And we conducted workshops all over the world with our customers, with industry experts to define these building trends. And these trends are in this study. We have actually them here outside. You can take a book or you can download it, of course, on the Internet. And it basically talks about technology, society, economy and the environment. And it has 3 trends for each, and then it also shows the implications for the industry. So it's very valuable, I think, in reading this as well. So if you read our Page 17 on the annual report and read this, then you really know where the journey goes for BELIMO. You know more about the business model, and you learn a lot. So I recommend you also to read that Building Tomorrow study. Then let's come to some changes on our Board of Directors. We have, first of all, our Martin Zwyssig, who is actually here today. He will be leaving aboard, unfortunately, after 15 years of service. So he is, as you know, an outstanding CFO and has contributed to BELIMO's growth from the Board level. So thank you, Martin. And we have last year, the AGM has elected his successor with Tom Hallam, the former CFO of Shimadzu. Then we have also another member of the Board who does not stand for reelection, that's Stefan Ranstrand, former CEO of TOMRA. He was also contributing over the last 6 years a lot in -- regarding actually our growth ambitions and was pushing us regarding our strategy in terms of growth and also very -- I thank him for his contributions here too from the Board level. Then we'll have a new member that we propose at the AGM. That's Karina Rigby. Karina has a strong background in engineering, strong knowledge in data centers and she is American. So a strong knowledge about the American market with our largest market and brings that experience, that diversity to the Board. She has been working with Eaton and with Siemens Energy for many years and has a great knowledge also on management and leadership experience. Also, with Karina. We will be 3 women on our Board of Directors. And of course, with Sarah Bencic, will be 3 women also in our executive committee. So we then have 6 women on our top leadership Board and Executive Committee, which is also great. And I remember 10 years ago, there were CEO on the Board and CFO on the Executive Committee, quite happy about that as well. Now let me conclude. Again, coming back to our employees, our colleagues, we've been working also a lot on over the last 18 months on our culture and our values, and we have created habits for each of the value, and we have conducted workshops actually 3-hour workshops 4 times, 3 hours discussion workshops with all our employees because it's very crucial this culture. So in our performance management process, for instance, every employee selects 1 habit and has a plan on what can he or she do with this habit to improve something, to leverage something, to take an opportunity and really work on one of these habits to improve our culture every day. Also great confirmation was this Best Employers Award from the Financial Times, Europe. There were 1,000 companies assessed. We were ranking #7, second in Switzerland, which is a great external confirmation that this cultural work works. So all we can say, good business model, good culture makes a successful company. With this, I conclude for now and would like now to -- I talked about airflows and water flows, and now we have the man who will be talking about the money flow. So I give the floor to our CFO, Markus Schürch. Markus Schürch: Thanks a lot, Lars. And also from my side, a warm welcome. It's a great honor and pleasure to be able here to present the financial results of BELIMO of last year. Lars already mentioned, 2025 was a very successful year for BELIMO. We have executed on our growth strategy and achieved a sales growth of 23.3% in local currency or 18.7% in Swiss francs, further accelerating our growth across all regions. For the first time in our history, we exceeded CHF 1 billion of sales and generated CHF 1.12 billion of turnover. A great achievement, especially in our anniversary year towards the 50th anniversary of BELIMO. With regards to the regional breakdown, the Americas has now contributed about half of the sales, EMEA 38%, and Asia Pacific 13%. If you have a closer look at the composition of this growth rate, we can see that about the majority of the growth, 19.5% is coming from volume and mix contribution. So between pure volume growth, also a lot of higher-value products like the energy valve or higher-value customer segments like the data center contributed to this strong performance. Then we had about 3.6% growth coming from price increases. That's mainly attributed to the region Americas to the U.S. where we had in-year price increases as compensation measure for the imposed tariffs. We'll come to that later on. And then lastly, the FX had a negative impact of 4.5%, leading then to this growth rate of 18.7% in Swiss francs. A bit a closer look into the various regions. This chart shows the development of our 3 regions. And you can see that all regions contributed with double-digit growth towards the overall achievement of BELIMO. First, with EMEA delivered an outstanding result with 12% growth in local currency or 10% in Swiss francs. And that is despite a very challenging market environment and key markets with a decline in construction spend, like, for example, in Germany. So focusing on retrofit or attractive segments within EMEA made this strong results possible. EMEA also benefited from a revitalizing OEM segment, and that included some restocking and supply chain buildup throughout the supply chain. Then Americas showed the strongest performance with a sales growth of 32% in local currency or 25% in Swiss francs, and that's from an already very strong basis in 2024. In there, data center accounted for about half of the absolute growth we had in the Americas, but it also means that our traditional HVAC business also grew in the high teens and showing that we have got a very broad basis of this growth. That is coming from an increasing traction also of the retrofit business and then also other high-growth verticals like high-end manufacturing in the pharmaceutical or semiconductor business and also a general very strong market environment in the Americas. Asia Pacific slightly had a growth of 29% in local currency or 23% in Swiss francs, and that's despite a very challenging market environment in key markets like China. So there, the clear focus on high-growth verticals made these strong results possible. Also, their data center was an important growth driver, including some export business in the OEM business. On this chart, we can see the development of our business -- of our 3 business lines. All business lines also grew double digit. Damper Actuator, our most traditional business line achieved sales growth of 14% in local currency or 10% in Swiss francs. And in there, the strengthening OEM was a key contributor to this overall very strong performance. Then Control Valves showed the strongest performance with a sales growth of 31% in local currency or 26% in Swiss francs. In there, obviously, the data center business was an important contributor or also the move to higher-end applications like the energy valve. Lastly, Sensors and Meters, our youngest business line showed a growth of 25% in local currency and is developing according to our plan. In '25. Sensors and Meters already contributed with 5% towards the overall sales of BELIMO and it's becoming an important business contributor for our company. This graph shows the contribution of the data center business to the overall sales of BELIMO. The data center business accounted for about 17% of the total sales in 2025 and an increasing share over the 2 half years. In the second half year, the contribution from data center was 18%. Overall, the data center business accounted for slightly less than about half of the total absolute growth we had last year. In there, obviously, the main contributor were the investments into the data center infrastructure and the high share of liquid cooling of these new applications. The high sales growth also translated into a strong EBIT performance and EBIT growth. EBIT grew by 29% to a total of CHF 233 million and that is corresponding to an EBIT margin of 20.8%, 159 basis points up from 2024. This increase was possible despite the negative effects, both from tariffs and negative FX development especially in the second half year. Tariff impact were mitigated twofold. So partly by midyear price increases we had in the Americas. And then also by supply chain flow-through, shifting about 40% of these high tariffs we had as of April -- August 1 into this year by the flow-through of the supply chain. Just if we recap a bit what happened on tariffs until April, we had a normal tariff situation like we had years ago. So we have roughly 4% tariffs for everything we import into the U.S. That was increased then in April for 1 day, to over 30% and then was reduced back to 10% plus the standard tariff. So we had then until August tariffs of about 14%. They were increased then on August 1 to 39%, plus the 4%. So we had 43% tariffs until mid-November when they were reduced back to 15% overall without the normal tariff. So that was a flat rate tariffs of 15% until last weekend and now we have got another tariff regime. So now we have got 15% plus 4%, so roughly 19%. And we will see what the future will bring. Certainly it's not the last time we'll talk about tariffs. In '25, we continued our investments into our growth initiatives. So our R&D investments totaled to CHF 76 million. That's up 3.5% from last year and corresponds to 6.7% of total turnover. Our personnel expenses increased by 11.5% to a total of CHF 295 million. Last year, we increased our workforce by 343 full-time equivalents to a total of 2,704 at the end of the year. The regional breakdown is as follows. So 59% of our workforce works in the EMEA, 26% in the Americas and 15% in Asia Pacific. The breakdown by function is 44% work in assembly and logistics; 30% in sales, marketing and distribution; 11% in research and development; and 14% in administrative and general management. This chart shows the performance of the 2 half years. Sales in local currency accelerated between the 2 half years despite a reverse seasonality due to the short December. This shows the strong momentum we have in our business. Material expenses were significantly higher in the second half year. That was impacted, first of all, by the higher tariff, but also by the FX rates that were mainly hitting in the second half year. The other effects were increasing operational expenses in line with the constant buildup of head count throughout the year. Net income increased by 24% to CHF 182 million, the foreign exchange burdened the P&L with CHF 10.4 million compared to a CHF 600,000 gain in the previous year. The strengthening of the Swiss franc against all currency, especially in the second half year was the main reason. Furthermore, we encountered a slightly higher tax rate based on higher profit outside of Switzerland. Our cash flow performance reflects the strong growth of the company. Operational cash flow amounted to CHF 185 million, absorbing a working capital increase of CHF 67 million associated with the strong growth of our company. Free cash flow, excluding the short-term deposits amounted to CHF 99 million reflecting our capacity expansion program just Lars showed that in his presentation. In the reporting period, we had a CapEx of CHF 87 million, and the main investment was obviously the building in Hinwil and the capacity expansion into the Nexus building. Looking at the balance sheet. The balance sheet is very sound. We have an equity ratio of 71% and the net liquidity of CHF 69 million. We had extremely strong capital returns, return on invested capital of 28%, a return on capital employed of 36% and the return on equity of 30%. Based on this strong performance, the Board of Directors proposing a dividend of CHF 10 per ordinary share. This is up 50 Rappen compared to the last year. This proposal corresponds to a payout ratio of roughly 68% and is sustainable, considering the growth ambition of BELIMO and the elevated investment we will face in the coming years. It's a continuation of our dividend policy of a stable and increasing dividend over year. On this chart, we can see the development of the key performance metrics over the last 5 years. All figures show a very strong development. Sales growth increased to 23% and EBIT margin constantly increased to 20.8% in 2025. Capital returns improved and achieved 27.8% measured as return on invested capital and 30.2% as return on equity. Free cash flow is impacted by the investments in growth, both on the working capital level and also on the investments into capacity. Furthermore, we continued our efforts on sustainability and our ESG performance is well on track. Our SBTi targets were approved, and we are on track with our greenhouse gas reduction path. Our Scope 1 and 2 emissions were reduced by 14% compared to our base year of 2022 and our Scope 3 emission by product solds were also reduced by 14%. And we help our customers reducing their greenhouse gas emission and continue our efforts towards their Scope 1 and 2 reduction emissions. Retrofit, as Lars already mentioned there, and showed some of the example, is a very strong example of this investment and this contribution at our customer sites. Furthermore, we also contribute with our -- with the BELIMO Climate Foundation, decarbonizing buildings of nonprofit organization and with that, compensating part of our greenhouse gas emissions. Our efforts are well recognized, and we are rated AAA by MSCI and ecovadis silver for our efforts. Let me conclude on the last year's business. So overall, 2025 was extremely successful for BELIMO. We implemented our growth strategy that paid off, and we could accelerate our sales growth to 23% in local currency. EBIT Margin expanded by 159 basis points, absorbing the negative impact both from tariffs and the FX effects. Capital returns are very high, and the balance sheet is sound. We offer an attractive dividend of CHF 10 per share to our shareholders, reflecting the investments into the future lows. Let me conclude with the calendar. So the Annual General Meeting will be held on March 23. The ex dividend date is March 25, and the dividend payment is scheduled for March 27. We will issue our half year results on July 20. And as Lars already mentioned, we will host an investor event on September 1 in Hinwil. And there you will have the opportunity to join the inauguration of our new building, and you will also get insights into building tomorrow and our new product family. With this, I will hand over to Sarah for a short introduction of herself and then an update on the Americas business. Sarah Bencic: Thank you, Markus. So as you may all have seen I joined BELIMO on October 1, and I've spent the past several months working to build a deep understanding of the organization as well as a robust plan to ensure a smooth transition with support from my predecessor, Jim Furlong; as well as the broader Americas team. And so I'm excited to formally step into my role as Head of BELIMO Americas as well as a member of the Executive Committee next week, taking on leadership of a healthy growing regional business that continues to benefit from the consistent execution of an effective multiyear growth strategy. My experience in several large global manufacturing organization spans leadership roles across multiple functions and industries, including 5 years in the HVAC building automation industry with Honeywell. And I'm looking forward to leveraging the expertise I've gained through these experiences to continue moving our strategic growth plan forward in the Americas and optimizing for growth as we continue to build scale. Similar to the global sales trajectory that Lars walked through, growth in the Americas has accelerated over the past 10 years. During that period, we experienced a 12.7%percent sales CAGR in local currency, but the acceleration grew from 6.2% CAGR in local currency over the first 5 years to 16.6% over the prior 4 years and increasingly to nearly 32% of growth in local currency year-on-year last year. The majority of our growth last year came from our core HVAC verticals, and this growth stemmed from a few different areas, increased momentum in our RetroFIT+ program, the strength of our customer support and training offerings and increased adoption of higher-value solutions as well as our Sensors and Meters business line. The remainder of our growth came from the data center vertical, which was driven both by rapidly increasing capacity and the shift to liquid cooling. And both of these increases were amplified by the approach that we've been taking to owner engagement that I'll walk through in a little bit more detail. As Markus outlined, an additional event which impacted our Americas business was the imposition of increased U.S. tariffs on imported components. And that tariff rate was changed by the U.S. government several times throughout the year, making it extremely difficult to predict the longer-term landing point, still making it challenging to predict that. However, despite the volatility of these changes, we used a more measured approach in our response. Taking a planful, single midyear price increase that was communicated to customers well in advance. And our customers appreciate us taking such a measured and planful response, which allowed us to preserve customer loyalty while still securing price growth to mitigate our tariff exposure. The growth drivers for 2025 are underscored by our general competitive advantages that we lever across the regions, including here within the Americas. We've built trust with our customers through our focus on quality and our reliable short lead times. We are viewed as experts in our market due to our global leadership position and our pure-play focus on field devices. And serving in this role as a trusted expert allows us to build and maintain the long-standing customer relationships that support sustainable growth. What's more is that we're able to leverage these competitive advantages across all of the 30 verticals that we serve. With these verticals spanning public access buildings, like education and health care, production buildings, including high purity manufacturing and data centers, infrastructure buildings, including warehousing and residential buildings, including high-rise residential as well as a variety of verticals that don't fit cleanly into any of these one specific categories. And this breadth of verticals really provides us a wide range of growth opportunities. Returning to our 2025 growth specifically, increased solution adoption and the strength of our customer value offerings played key roles across all of our core HVAC verticals. On the solutions side, our growth was a result of multiyear awareness efforts to drive adoption of more advanced technologies and our full portfolio breadth. Our energy valve is a fantastic example of one of our more advanced and higher-value solutions. And while we did see growth of the energy valve stemming from the data center vertical, we also saw increased energy valve sales coming across our core HVAC markets through our retrofit opportunities. From a breadth of portfolio perspective, we saw increased adoption of our Sensors and Meters business line, resulting from strong multiyear cross-selling efforts. We also kept a strong focus on maintaining a differentiated customer experience. Some examples of this include increasing the team by 20% year-on-year to over 720 FTEs to maintain short lead times and high customer engagement levels while accommodating our growth. In addition, we delivered over 50% more in-person training courses year-over-year to advance customer understanding, build brand and product familiarity and help our customers address the trade skills talent scarcity. As mentioned previously, RetroFIT+ also gained momentum globally and as well as here in Americas across the core verticals. We saw a 30% year-over-year increase in the number of converted projects in the region. One great example of the power of this program is the work that we've done with the Paramount Group. Paramount completed RetroFIT+ buildings and 3 RetroFIT+ projects in 3 key buildings in New York City to start preparing for upcoming local energy reduction regulations. These projects reduced energy consumption across these buildings by over 4 million-kilowatt hours annually, which translated to over USD 1 million of energy cost savings annually. In addition, these projects enabled Paramount leveraging substantial rebates from their local utility to help fund the investment in these projects. And what we're seeing as we get further from some of these initial project completions is it's opening up 2 sets of future opportunities for RetroFIT+. The first is the opportunity to complete additional RetroFIT+ projects in additional buildings at that same portfolio management group owns. And the second is that as the stakeholders that were a part of this powerful project advance their careers and move into new property management groups, they can choose to implement RetroFIT+ projects in these new organizations and creates new opportunities there as well. Within the data center vertical, our owner engagement approach has been key to our growth. The number of stakeholders and the interactions between stakeholders in the data center space is a bit complex. Data center owners and technology providers collect inputs from research organizations and mechanical and electrical consultants. And these data center owners and technology providers or hyperscalers and chip providers then influence and transact with general contracts -- general contractors who influence and transact with mechanical contractors, who influence and transact with a variety of stakeholders shown here in the dark teal that we, as BELIMO transact with directly. Over 5 years ago, we established a dedicated data center organization whose exclusive focus is to engage with these key stakeholders that ultimately influence the entire purchasing process. This team partners directly with data center owners and technology providers to inform decisions on specifications. And in addition, they participate in key research organizations to ensure that we collect insights into future application needs in this rapidly developing industry. This long-term dedicated focus on these key decision-makers has been a critical enabler for our strong adoption of BELIMO solutions and data center applications. As we shift the lens from the retrospective of 2025 to the outlook of 2026 for Americas, the focus does not change. We will continue to execute on our growth strategy. We expect continued double-digit local currency growth in 2026, and our drivers to achieve this growth remain the same. Increased adoption of higher-value solutions and strong customer value offerings like RetroFIT+ in our core HVAC verticals as well as continued capacity growth and deployment of liquid cooling in data centers. We'll need to ensure that we remain focused on maintaining operational excellence and a differentiated customer experience as we continue to scale. So we'll be making strategic investments in both capacity expansion as well as people. We've signed leases for new buildings in Sparks, Nevada as well as Stratford, Connecticut that will nearly triple our operational footprint in the U.S. from a square meters perspective. And we will -- we are planning to increase the team size by 16% to about 840 FTEs to ensure we can maintain short delivery lead times and continue to offer a differentiated customer experience. And with that, I will hand it back to Markus to share our global outlook for next year. Markus Schürch: Okay. Thanks a lot, Sarah. Let me conclude with the overall outlook for BELIMO for next year. So overall, we expect the continuation of the market environment and the positive momentum for BELIMO both in the general HVAC industry, but also specifically in the data center vertical. We expect the strong top line performance with sales growth in the mid-teens. That takes into account the favorable market environment and the strong basis of 2025. Regarding margins, our EBIT margins will remain strong and are expected to be ahead of 20%. Obviously, there are very significant risks and uncertainty. Above all, obviously, the unforeseeable tariffs going forward and also the foreign exchange volatility that can impact both top and bottom line of BELIMO. Our data center business is linked to the investments of -- into data center and the respective CapEx mainly of the hyperscaler. This has both elements, a downside element in case of a slowdown of investment but also an upside element in case of accelerated investment or especially also faster deployments of the infrastructure. Independent of the short-term development of the market, we will continue our investments into our growth strategy. So we'll continue our investments into capacity and also continue our CapEx program and likewise, we'll also build up and increase our investments into our growth initiatives going forward. With this, I conclude the presentation and hand back and open the floor for questions, and we'll hand back to Stephan for the moderation of the question-and-answer session. Stephan Gick: Thank you, Lars, Markus and Sarah for the presentation. Now it's time for Q&A. [Operator Instructions] We will now start with questions in the room. Please first introduce yourself and the institute you're representing. Patrick Laager: Patrick, Berenberg. Three questions. You said you're guiding for 9% to 11% sales growth for the midterm or long term. Now assuming 8% to 9%, but please correct me growth in building applications and your exposure for data center to increase from 17% to, let's say, I don't know, 30% in the next 3 years, 4 years and assuming a normalization of growth in data center, I get -- and this is a very reasonable number, I get 15% growth on average. And you still stick to your 9% to 11% growth? Do you have any indications that potentially growth will slow down significantly in the next 2, 3 years? This would be my first question. Markus Schürch: Yes. For sure. Thank you for the question. It actually -- if you look at the overall model now looking at 10 years, we stay with this 9% to 11% because you have, of course, an acceleration in growth over the next years, but maybe '26, '27, '28, but then, of course, these investments could also decrease then again from this very high level that we are today. We have also to remember that these are extremely high levels that we have today in this investment boom. And therefore, there will be decrease, of course, at one point of that portion of the DC business, that impacts then the number. Therefore, if you look at it, we remodeled this, then it comes down again to between 9% and 11% eventually. Patrick Laager: And then question 2 and 3 combined here. Can you provide any insights about the pricing dynamic. If I remember well, you increased prices by 8% in North America or in the U.S. and you were planning to increase prices by 8% again early this year. The question here is, did you increase prices last month in the U.S.? And what kind of price effect should we model overall for '26? This would be one question. And the last question is about U.S. tariff exposure. You said -- you explained actually in a very detailed way how tariffs have developed last year. Can you share how much was the average of your U.S. tariff exposure last year? And how much would -- you can't really expect this year, but the average for '25 would be very helpful here. Markus Schürch: Okay. So thanks for the questions. So I mean you summarized well, our pricing actions in the Americas. So we increased about 8% midyear. And that they become effective throughout the year. That was the most of this 3.5% price increase what we saw as the contribution on the overall sales. We've increased list price again by about 8% as of January 1, and they will also now gradually be implemented as there. We have got standing orders that are still conducted according to the old prices. And gradually, we'll see now these price increases. Now with regards to the impact of tariffs. So for this year, obviously, it will be in the range of 15% and 19%. So depending on what's going to happen or something completely different in 150 days from now. And then with respect to the last year, so the average number is also in this -- towards this amount as there were a season of 4% and then a season of higher of about 10%, 14% tariffs short period of very high tariffs and then going back to 15%. Tobias Fahrenholz: Tobias Fahrenholz from ODDO BHF. Staying with growth and the sales outlook, how dynamic was your start into the year, so Jan, Feb so far? And what is the rough percentage that you have put in for the data center business? That would be the first part. And the second part then maybe on M&A. Has this become more in focus now? I mean the dividend is only slightly up. Should we read something into it? And which target areas would you look for? Markus Schürch: Okay. So let me start with the business. I mean, we don't obviously share all details, but we had a very good start into the year. And that is also the basis though, is we don't see a change of the market dynamics. Obviously, we don't disclose the details of how the composition of the sales is. That is then information we'll share again with the half year results. Then with regards to M&A, it's an opportunistic topic. We are actively looking into it. And it's always an opportunity. We will see some bolt-on acquisition, especially on the technology side. There's obviously nothing to read in from a dividend policy. This roughly 70% payout ratio that is in line with the investments that we need to do. And we want to finance that based on the operational cash flow, both the working capital and also the capacity increase. Martin Flueckiger: Yes. Martin Flueckiger from Kepler Cheuvreux. I've got 3 questions, and I'll take one at a time. First one is on your elaborations markets regarding product mix. Now I understand the impact was there on the top line growth, but just wondering whether you could clarify or elaborate a little bit on the impact on the EBIT margin in 2025 and what kind of impact or contribution you're expecting for margins in 2026? Markus Schürch: I mean, as mentioned, we have got there a positive contribution from the higher-end application and that also has a positive effect on the EBIT margin and was obviously part of the higher margin that is coming also from higher-end applications. Martin Flueckiger: I understand, but could you give us a little bit of a flavor of how much that was quantitatively? Markus Schürch: No, we don't disclose the details of the buildup of the margin. Martin Flueckiger: Okay. And then the next one is on the tariffs for this year. I realize you were talking about 15% to 19% for BELIMO, but again, in terms of margin or in terms of EBIT impact, what kind of number should we plug into our EBIT models here -- EBIT bridge models? And what kind of -- that 8% you were referring to in terms of pricing, that's for the Americas only, right? Markus Schürch: Yes. And that's for the Americas. Martin Flueckiger: Right. Okay. So just the guidance on the tariffs for 2026 in terms of margin or EBIT. Markus Schürch: Well, I mean, you can assume that this price increase is compensating the effects of the tariffs that will bring us back to a plain level that we had at the beginning of last year. Martin Flueckiger: Okay. And so are you striving for compensation in terms of absolute Swiss franc numbers or in terms of margin? Markus Schürch: In terms of margin. Martin Flueckiger: Okay. And then my final question is on CapEx and net working capital. I realize both have been up as a result of your growth initiatives. Just wondering, in 2026, what should we expect or plug into our models for this year in terms of CapEx? And also, what are you going to do with network capital? Markus Schürch: I mean regarding net working capital, the assumption is that it will remain stable as a percentage of sales. So we'll increase that gradually both on the inventory and also especially on the accounts receivable side. And with regards to CapEx, we expect a similar number like last year, so an elevated CapEx also for 2026. Martin Huesler: Martin Hüsler, Zürcher Kantonalbank. I have a question on retrofit. Obviously, the economy is quite convincing. First question, what share in terms of sales is now retrofit? And do you see the same good dynamic in Europe as in the U.S.A? And generally, do you get now much more projects because you can prove and you have now the visibility that how much, I mean, payback of 6 months, that's amazing. This should result in a high demand, I expect. What do you see there in your -- maybe your project pipeline? Lars van der Haegen: Well, thanks for the question. I mean in general, retrofit new building business represents about 40% to 50% of our sales and retrofit about the rest. And this should accelerate overall. Of course, there are some studies, for instance, in the European Union that says it should be threefold the retrofit rate in order to achieve the climate objectives. And this should accelerate in general. What we do with our initiatives, we call it also business development. It really helps to sell retrofit opportunities for our customers. We are out there supporting our customers to sell these opportunities because it's, of course, also capacity problem in the market, right, because we have still lack of skilled labor. And if this labor is occupied with new buildings, then they do not have time to do the existing buildings and doing the sales in existing buildings. So there's a big potential to increase the sales in retrofit in existing buildings. That's why we have these examples. So we do that. It's actually, I would say, hard work. This is not just a market that grows even though, of course, the financials are so convinced. It's literally 1 to 2 years max payback on most of these opportunities. So everybody, all building owners, most building owners should invest in these opportunities. But we have to promote it, and that's why we have this initiative. Could I answer your question? Martin Huesler: Maybe another question on data center again. You were alluding to, I think, CHF 40 million to CHF 60 million per gigawatt. And I think we already talked about this with the sales numbers. But where do you stand -- stood in '25? And maybe also, what was the share of liquid cooling more or less in '25 and where can you grow to for you in the next couple of years? Lars van der Haegen: Yes. Maybe in share of liquid cooling, there is still -- every data center today, there's always a part air cooled and a part liquid cooled. So still, if you do liquid cooling, you have about 80% of the heat rejected. If you do with liquid cooling, about 20% is air. And because there's not everything can be captured with the liquid cooling. So this is -- the technology will increase this, but we can bring it to 90%, 95% liquid cooling, but there's still a rest that has to be air cooled. The air-cooled portion is also growing that what we see in the numbers with our Damper Actuators growth in data centers actually growing also still significantly and the air cooled comes in addition. So this has, in many areas, only started with water cool systems, liquid cool systems. So there's still a big potential there with this shift. So newly planned buildings, of course, tend to be planned liquid cooled. I would say about 60%, 70%, but there's still -- a lot of those are air cooled because, for instance, colocation, data centers and so there's high flexibility required, they still work with traditional systems as well depending also on the application, right? Then there is also a retrofitting activity there, data centers that have been built or that are in -- that have been planned so far that they are converted to liquid cooling. So that's also an aspect. So that it's kind of the low-hanging fruit in increasing the capacity for this liquid cooling applications. But there's still a lot of potential in that area for growth. Unknown Analyst: [indiscernible]. Can you disclose how much you will spend for your capital -- for your expansion plans in the U.S. and for the group totally? Markus Schürch: I mean in the U.S., it's a twofold capacity expansion program, as Sarah mentioned. So we have leased 2 buildings. So that's for the short-term planning. And then we will also build on a new building for the longer term in the U.S., but that's down the road a couple of years' time. So at the moment, we mainly have investments into the fit-out part. So that's a fraction of the overall CapEx that we now have with our own building in Switzerland. But over the medium term, we'll then also invest into an own building in the U.S. Unknown Analyst: [indiscernible]. I have 2 questions. With regard to your CapEx plans for the U.S. If I'm correct, it's mainly on warehousing. So it's on logistics. Do you plan to also have a local production there? And then with regard to your CapEx plans, you said next year, in absolute numbers, it will be roughly at the same level as '25. When will your current CapEx cycle be completed? Markus Schürch: Okay. So thanks for the question. So looking at the investments into the U.S. is not pure logistics. So it's customizing and logistics. So that's the finalization of the products. And that's not -- that has also an assembly part of it. So just making the last step of the customization of the product. We already do an assembly part in the U.S. About 30% of the assembly work for the U.S. business is done in the U.S., and that will gradually increase also in the future and that's part of the capacity expansion programs in the U.S. So short term, really focusing on customers and logistics, medium-term also shift more local manufacturing or assembly as we do mostly an assembly part in our own building. Now if you look... Unknown Analyst: Sorry to interrupt. Do you have a target for local assembly in the U.S.? So when you have 30% today, are you going to double that? Markus Schürch: I mean it's clear we also follow their strategy of a local production for the local market. And that has 2 aspects. So first of all, shifting our own work into the U.S. to have also a balancing effect both from a natural hedging perspective, but also from a supply chain security. And medium term also have more local supply base to have also there more stability and more resilience in the supply chain. Obviously, that's a multiyear project. But given the sales growth we have now in the U.S., that's clear the plan going forward. And coming to your second question. So the investment plan, what we have so building on the capacity expansion, that's a multiyear program and it will last for probably the next 3 to 5 years. Stephan Gick: Great. If there are no further questions in the room, we now move to questions via phone. Operator, please go ahead. Operator: First question on the phone is from [indiscernible]. Unknown Analyst: Can you hear me? Markus Schürch: Yes. Unknown Analyst: Okay. [indiscernible] from Baader Europe. Just a question on the data center, please. I understand that you emphasized a lot on this because it's a very big market and a growing market. So I was just wondering about the competition how you feel about the competition? Is it rising or not? And will it be enough stake, I mean, for everyone as well. Yes. If you can elaborate a bit more on this, please. And of course, you can give us some number on the addressable market as well it would be good. And the other question was on working capital. I understand that the growing business will, of course, require more and more working capital, but I was just wondering if there are any programs that are planned in terms of digitalization or AI-driven working capital management in order to gain efficiency. If you can help us on that as well, it would be helpful. Lars van der Haegen: Do you want to answer maybe the second one, Markus. The first one wasn't so clear. Maybe it was something regarding competition, but maybe you can repeat it afterwards. Let's answer first the second one, right? Markus Schürch: Yes. Let's go into details of the working capital management. So we assume about 15% of sales in inventory is our key advantage what we have. Lars mentioned and Sarah mentioned, one of our key advantage against the competitor is the very short lead time we can offer and that obviously requires a decent level of stock. Therefore, our goal is to have about 15% of sales on inventory. At the moment, we're slightly ahead of that. That is in line with, obviously, with the strong growth that we had and also the planned changeover of the products towards the new generation. So that will remain a higher level of inventory over the next 2 to 3 years and then the plan is going back to 15%. But we will never have a very small working capital level as this is a key competitive advantage, and we will maintain that. Stephan Gick: I think the first question has been about competitive situation in data centers, right, and whether there could be potential new entrants coming into it. And I think also here, I mean, Sarah already gave the answer with our strong competitive advantage generally, which are also valid for data centers, right? And obviously, we also do joint R&D together with chip manufacturers, but also with data centers, for instance, in cybersecurity. And keep also in mind, I mean, this is a highly innovative area, data centers, right? So here, you need to work together with the technology leader. And I think so these prospects also in this area are really good for us also midterm. Lars van der Haegen: And maybe also to mention that, now of course, as this is booming, so many companies would like to jump on this bandwagon. But it's not so easy to join a boom during the boom. And we have been in this industry since 2 decades that we have supplied Damper Actuators into data centers to these hyperscalers. And so our brand is really well established in this market. And then as Sarah has demonstrated, so we now make sure that we continue to provide very best service to this industry to remain the leader and to expand actually our position that we have also with the economies of scale and then also with our global footprint and a very agile organizations that we are that we can leverage to supply these data centers. As also Sarah has shown, it's sometimes quite complicated each data center project because the supply chain is -- comes from all over the world into one location. And this needs also a lot of agility by supplier by us to provide all these services during this fulfillment phase of delivering components into the final destination. Stephan Gick: Next question, please? Operator: Next question is from Chase Coughlan from Van Lanschot Kempen. Chase Coughlan: I just have 2. Maybe starting off and going back to the data center dynamics. Just based on your '26 guidance and if we assume a bit the rest of the business continues sort of growing at the same rate, it really implies the massive drop off in the growth momentum seen in that data center portion of your business. So I'm just curious if you can help me reconcile what you're expecting there. If I'm reading that right. I think most other players exposed to the same vertical are suggesting that they're seeing accelerating growth there. Sort of any more color on that data center growth expectations would be very helpful. Markus Schürch: Well, let me take this one. So I mean, we -- as I mentioned, we expect a base growth in our HVAC business and then a special growth on data center. As you mentioned there, it depends a bit on what is the investment, but especially also what is then the actual fulfillment of the project. Those are large infrastructure projects. And increasingly demanding becomes the supply of energy of electricity as they are consuming big time electricity. And that is starting to also impact the deployment rate. So it's not only a question of the investment that goes in, but also a question of how quickly this can be executed. And therefore, there's a high upside potential also if that's going to be accelerated on the deployment case and then obviously also there, a higher growth rate is possible on the data center side. Chase Coughlan: Okay. Perfect. Yes. That makes sense. And then maybe my second question, regarding the top line guidance. Do you have any kind of specific expectations around the phasing of that growth in the first half versus second half? Should it decelerate or accelerate throughout the year? Or should we expect somewhat stable? Markus Schürch: We don't expect the changing behavior of the dynamics, and therefore, no specific seasonality of the 2 half years. Stephan Gick: The next question, please. Operator: Next question is from Sebastian Vogel from UBS. Sebastian Vogel: I've got 3 questions. I ask them one by one. The first one is a quick follow-up. So to the guidance for '26, does that sort of mean your underlying growth for the non-DC business is supposed to be around like 9% to 10%, and then you have the remaining 40% to 45% for data center. Is that the right thinking? Markus Schürch: Well, that's about the right thinking exactly. Sebastian Vogel: Great. Second thing is on pricing. I mean, you elaborated a couple of times there. But nonetheless, sort of a group-wide number. If you can help us there, what sort of the net pricing you think will be feasible for you for 2026, adding up or aggregating across all regions? Is there a number that you can share with us? Markus Schürch: Look, we just can give you the general price increases. So we have got -- we've mentioned is 8% in the U.S. The U.S. is roughly 40% of the overall business. So that translates then to something like 3%, 3.5% overall. And then we have the normal price increase in the other region, which is in the range of 1% to 2%. Sebastian Vogel: Got it. And then the last question is with regard to the margin and the FX impact for 2026. Do you have some sort of like number on hand like a 10% change in U.S. dollar is having whatever basis points impact on your margins that you can share there? Markus Schürch: Yes. We can share roughly 10% weakening of the dollar has an impact of about 150 basis points on the margin. That is always assuming that all the other currencies stay stable. And then there's also an important development, how is the euro developing as a lot of the material cost is denominated in euro. So if there's also then a shift and a weakening of the euro in parallel of the dollar, there's also an offsetting effect in there. So it's a maximum effect of about 115 basis points of 10% weakening of the dollar. Stephan Gick: Next question, please. Operator: Next question is from [indiscernible] with [indiscernible] Intelligence. Unknown Analyst: I just have 1 on depreciation. Can you please help us explain what depreciation assumption you are modeling for your 2026 EBIT margin guidance? Is it reasonable to expect that we can see a step-up in depreciation and amortization expenditure as they follow the CapEx trajectory? Markus Schürch: Well, you're correct. Gradually, the depreciation rate will go up with the strong investments. But bear in mind, we are investing into building with a very long depreciation time as well. Therefore, the effect is somewhat lower than from what you would expect from the higher investments on CapEx side. We don't share an exact number for '26. Stephan Gick: Okay. Next question, please. Operator: The next question is from Fabian Piasta from Jefferies. Fabian Piasta: Can you hear me alright? Stephan Gick: Yes. Loud and clear. Fabian Piasta: Great. Okay. So you were elaborating on medium-term horizon or outlook. I understand that is 9% to 11% sales growth and between 30 and 35 bps on margin. Would you be able to define the time horizon for that medium-term growth? Are we looking at 5 years? Are we looking at 10 years? Second question would be on EBIT margin 2026. So in order to get to where consensus is, let's say, 21.5%, that would require 85 basis points year-over-year from the current margin. This looks actually durable. And obviously, markets didn't really like the cautious EBIT guidance. So where do you think are the biggest headwinds apart from tariffs and FX? And the last question maybe on the dynamic and change in data center projects. So what has really changed? I mean I remember first half of 2025 was still very air heavy. I think there's probably going to be some acceleration in liquid cooling in the second half. Do you see a major shift in, let's say, maybe from brownfield to greenfield in 2026 supporting further growth in data centers? Lars van der Haegen: In the first question maybe regarding the horizon there that's really related to our long-term strategy. That's about a 10-year horizon where we are planning our growth rates and development also of our profitability. And this is very important because when we develop new products, new applications, you have an R&D cycle and the product introduction cycle. And that, in total, takes about 7 years to become profitable right, from an idea to profitability can also be longer. And so building up a market, a new product range and on takes a decade or more. That's why we need this long-term strategy and also why we communicate that this is our ambition to have that growth level. And then the second question was then back to '26 that I give back to Markus. Markus Schürch: We look on the margin, we guided on this ahead of 20%. And as you mentioned, I think the uncertainty is extremely high this year. I mean, you've seen the tariff situation can change basically overnight. And most likely, we'll see other tariff regimes in the course of this year. Then also the impact of the FX, that's also very, very broad. The forecast where the dollar is at the end of the year are very widespread. So that's obviously also a very strong impact on top and bottom line. And the third key element is obviously the sales growth of this year. So the higher the sales growth, also the higher the operational leverage, and that also has then an effect on the EBIT margin. So overall, a very high uncertainty. And therefore, also, we are only guiding on this 20% plus. Stephan Gick: I think you had a third question on data center trends, right? Fabian Piasta: Whether you see a shift in projects. Lars van der Haegen: I mean, on data centers, there's, of course, a lot of information around. And I think obviously, there's a lot of investments that have been announced by the hyperscalers that you are likely aware of and that's very transparent that communication to some degree. And then it's also, of course, the colocators that are investing. And then there's also corporate data centers. There's all the hyperscalers, corporate data centers, corporate or government and then you have the colocators. So this is, of course, also if you go into the details, a market of many players. And so many investments are happening. So this -- last year, I think the overall investment was depending on the sources CHF 400 million to CHF 500 billion worldwide, predominantly in the U.S., about CHF 300 billion, some sources go with higher numbers. And then this year, '26, this would higher and then '27 even higher. But then again, Markus pointed out there are many constraining factors to this. Of course, the energy but also the supply chain overall, there are some components from some manufacturers that have lead times until 2030, transformers and things like this. And so that will be -- we'll find out what can be really then applied of all these investments and what the time horizon, how this will play out over the next years. Stephan Gick: Okay. Thank you. Then I think we have one final question online. Cedar. Cedar Ekblom: I have 2 questions. Can you please talk about what you're seeing from a replacement demand perspective in the U.S. in the data center vertical? I know it might be a bit early but this has been discussed as a potential growth kicker going forward. So it would be helpful to hear what you're hearing from your data center customers. And then can you talk a little bit more about your new digital generation of products. You made quite a big point of this in the presentation. So I'd like to understand what's integrated sensors into the digital offering means, how it's helpful to your customer? And then I think you also made the point that your competitors don't do this or that you are on the only player that's sort of providing this sort of harmonized digital platform. And why are your competitors not doing this? What is the barrier to them closing the gap to you? Because it does sound quite material in terms of ease of use and deployment. Lars van der Haegen: Great. These are excellent questions. So on the last one, I could talk for another 2 hours. But maybe the first one regarding data center retrofit. So there is overall with the overall increasing in the efficiency of the overall server applications from the chipset to the overall server application. Mostly, we hear there is an economic life of about 5 years of a server. And then afterwards, it makes sense to replace it simply because of the financials. They would still run longer, depending on what application it is exactly, they might still do 7 years, 8 years, 9 years. But after 5 years, mostly, it makes sense to replace them partially. That doesn't mean that the valves are necessarily replaced or the building -- the HVAC part of the system, but it could be but that's typically the situation. Then regarding the new digital generation. I mean the features overall, it's just why competitors don't do it. It's a big investment. We are the largest -- I mean, second -- or the largest competitor, I have to say, is about half the size of BELIMO in terms of sales with the same field devices and it's probably not profitable to invest in such a platform. And managing a platform is, of course, challenging, but we have decided that part of this long-term growth strategy investing also in Damper Actuators and Control Valves, that's our existing business, investing a lot in there so that we really have a new platform that gives us this, of course, cost advantages as well. But also the flexibility to build products in the future, different products to adapt to the demands from the market. And then this overall user experience. So often when you look at competitors and their product catalogs, it's kind of a mess. It's like very -- just different products. They've sourced them from different -- just not a consistent range. And at BELIMO, we have really consistent range -- consistent look and feel and that makes it unique. And I think it's very powerful, having a platform, looking also at other successful companies. I mean, talking about these hyperscalers, they are typically successful because they manage a platform and can leverage the platform. Could I answer your questions? Otherwise, I recommend also... Cedar Ekblom: Yes. That was helpful. That's good. I just wanted to follow up quickly on the replacement point. Have you heard yet from your hyperscaler customers that they would be reusing the valves? Or is it a case of it would just be simpler to replace the valve at the same time as replacing the servers and the chips? Because I think this is an important point. We know that the service might once be replaced from a sort of economic perspective. But would it be simple to just to reuse the valves? Or do you not have color on that yet, maybe? Is it too early in the process? I understand that. Lars van der Haegen: Yes, thanks. It's a good question. It depends always, it's, of course, also when you go into details of the application, it gets complicated like everywhere. And it depends if you have, for instance, a server that's like 500 kilowatts that it requires for cooling. And then the new server is also 500 kilowatts, then you could replace that without replacing the valve. But if you have then a server that has a higher capacity than you would also require -- need to replace the valve. Then also, it depends on the overall setup. Sometimes it's just more efficient to replace everything, make everything new. And sometimes it's just easier to just replace the server setup. So it really depends on the technology that's there, but also on the preferences of the investors, the engineers what they are doing. But in general, we can say it's certainly a more retrofit intense this market segment of the data centers versus Sarah presented the 30 segments. Typically, our products, they last for more than 20 years. So they are in these buildings for 20, 30 years. And here we have, of course, a much higher rate of retrofit. They're also controlled these applications in a sense, so they are monitored and so for the uptime and the reliability of the application. So it's a more critical application than in some of the other segments. Some other segments, of course, also critical thinking about pharma, semiconductors and so on. But here, we have definitely a higher retrofit rate. Stephan Gick: Great. Then thank you, everybody. This concludes today's presentation. You are now more than welcome to join us for lunch. Thank you for your attention today, and goodbye. Lars van der Haegen: Thank you all.
Conversation: Theodora XU: Good morning, ladies and gentlemen. Thank you for being with us today. Today is about 3 words: acceleration, profitability and value creation. And everything we'll discuss this morning will connect back to these 3 priorities. I'm Theodora Xu, Head of Investor Relations for Tikehau Capital, and I'm delighted to be hosting today's full year results and strategic update. So today, you'll hear from our 2 co-founders, Antoine Flamarion and Mathieu Chabran; our Deputy CEOs, Henri Marcoux, Thomas Friedberger and Maxime Laurent-Bellue; and our Group CFO, Vincent Picot. So a little bit of housekeeping element on the flow of this session. So we'll first start with a look on Tikehau Capital key achievements for 2025 and then open the floor for a first session of Q&A dedicated to our annual results. We'll then take a short break to allow everybody to refresh, to grab coffee before moving into our strategic update. Then you'll hear first from Thomas, who will share his perspectives on opportunities shaping the next decade. Then we'll have Maxime hosting a fireside chat with our co-founders, discussing accelerating profitability across asset management. Then we'll have our co-founders and Henri provide insights on our evolving approach to balance sheet allocation before taking us through the harvesting phase Tikehau Capital is now entering and providing more details on profitability drivers and value creation framework. We'll then host a second session of Q&A dedicated to our strategic update. With that, it's my pleasure to welcome to the stage, Mathieu Chabran, Co-Founder, for opening remarks. Mathieu Chabran: Thank you. Thank you, Theo. Welcome. Welcome, everyone, here in London, and welcome for all the people who dialed in on the webinar or the webcast. I hope that you can hear us okay. You got all the documents and that you will be enjoying this presentation with us. So very happy to be back in London, not only for our 2025 full year earnings, but also for this new Capital Market Day, as we call it, and very excited with -- on behalf of all the team to host you at Tikehau and give you a little bit of the forward-looking, which is really what we would like to focus on today. But first, let's start with our '25 earnings that were released this morning. I like to call it a record year because the numbers stand. But before we get into the numbers, I would like to tell you and witness how strongly the franchise has evolved over the past few years and the acceleration, as Theo was rightly saying that we benefited from in 2025. It's been a record year on the deployment despite if you look back and think about what 2025 was as a year and as markets to operate in, that was a record year on the deployment. On the realization, we come back to that on exiting some of our portfolio companies and distributing back to LPs and as well as the fundraising, the gross and net inflows, we'll get back to that. We told you in 2022 that the focus was to develop, grow the profitability of the asset management. Remember that when we went public 9 years ago, we were barely doing EUR 5 million of EBIT. It's close to EUR 150 million this year. And you will see that this growth and expansion in asset management profitability is here to stand and we'll give you some guidance where we think we can go. And then finally, on the portfolio, you've got these 2 engines at Tikehau, right, the asset management, the principal, our balance sheet, we saw some strong contribution, albeit this year impacted by some ForEx, and we'll come back to that. So as I was saying, record in deployment, realization inflows. On the deployment, it's EUR 7.6 billion that we put at work at Tikehau, which is an increase of 35% compared to 2024. On the realization, on the exit, we like to say at Tikehau that you have to give back so that people keep giving. And you keep hearing about investors not getting money back. What we tried to do last year is to demonstrate that, yes, you can exit some portfolio company, give back to your investors so that, that keeps fueling the next cycle of growth. And that was twice what we did in 2024. On the capital formation, it's EUR 10.5 billion of gross inflows, and that's the fourth consecutive year of a record year in fundraising. It's EUR 8 billion in net inflows. And what we are very encouraged by is that the whole investments we made in the platform over the past few years globally, remember, we went public, we had 5 offices. When we saw you in 2022 for the Capital Market Day, we had 7 offices. It's now 17 offices we've got across the world. And from Asia, including Japan, Middle East, across Europe today, North America, even South America now, we've got all these new customer base that are fueling the fundraising at Tikehau. So 80% last year came from new customer base, new geographies outside of our domestic market, taking our overall AUM to EUR 52.8 billion. So as I was saying, we've been focusing on larger transactions with a more global portfolio, not only in Europe, domestic market, but in Asia, in North America. And that has enabled us to raise additionally more than EUR 1 billion, EUR 1.2 billion of co-investments on some of those larger transactions. You'll have some examples later on that you may have picked up over the past year, but that has been a strong driver. On the capital formation, as I was saying, a few elements. In Asia and Middle East, it's EUR 1 billion that was contributed. We hit the EUR 1 billion of inventories of clients in Korea that we had opened 6 years ago. And just I'll give you an example that we kind of like just last year, out of the EUR 10.5 billion gross inflow we had, 4 investors -- 4 new investors actually accounted for 20% of our fundraising, and they were all new relationships of ours, bigger commitments. I mean, they came from some very complicated to penetrate markets. I'm thinking about Japan, thinking about Germany. I'm thinking about the U.S. I'm thinking about Middle East, GCC, Abu Dhabi. This is a strong illustration that the investment we made in the platform is now paying off, and we're harvesting all this investment that we had made. And so as I was saying, giving back capital to RPs EUR 4.1 billion that we returned to our LP last year. And just as a data point because people have been talking a lot about private equity last year, and I'm sure we'll have plenty of questions about private credit as well, and we're looking forward to addressing them. But it's a 2.6x that we returned to our investors on the realized transaction. So where does that leave us on the financial? I mean, we issued this morning all the numbers in the details, we'll come back. But if I look at the first pillar of our business, our asset management business, it's an 8% growth of our revenues, converting into 18% growth on the -- at the EBIT level. We grew by 12% our core FRE, this fee-related earnings. And for the first time, as we told you a few years ago, we passed the 40% core FRE margin, and you may have picked up, and we will come back to that, that we're giving an improved guidance on this very important profitability element. On the second pillar, on the portfolio, it's a 19% growth in our realized revenue for the balance sheet, our investment portfolios and a 33% revenue growth if we exclude once again these currency effects that Vincent will be detailing. So finally, it's EUR 136 million net income that we are reporting for 2025, which is 51% growth if you exclude this currency effect. And so we will be -- we propose EUR 0.80 dividend that we'll be voting at the next AGM. So that's for the key element. There will be plenty of details on the session. Once again, thank you very much. We look forward to an interactive session. Thank you, and I will hand over to Henri for more details. Henri Marcoux: Good morning, everyone. Thanks, Mathieu, for this introduction. So let's jump into our asset management flywheel. Maybe we'll start with deployment. As you have seen, deployment has clearly stepped up during the year '26. We've reached EUR 7.6 billion of deployment. So that's an additional EUR 2 billion, 35% compared to the year '24. Starting with private equity maybe, with a EUR 2 billion compared to EUR 600 million the year before. Clearly, we've accelerated deployment, notably on aerospace and defense, cybersecurity, decarbonation in Spain, Belgium, Germany and in U.S. through our flagship strategy, but as well through our co-investment vehicle. Real assets represented EUR 1.4 billion of investments compared to EUR 1 billion during the year '24. Here again, discipline has remained paramount. We continue to focus on high-quality, well-located assets, notably to be noticed during the year '24, big residential portfolio units in France as well as a big investment, first investment in real estate in the U.S. and notably several additional investments in the Netherlands. As far as credit is concerned, so that's clearly a stable deployment versus '24. We are standing at EUR 4 billion, very well diversified allocation through Spain, Italy, Netherlands, Belgium, U.K., very strong momentum as well on our CLO issuance business. And so we are ending the year with more than EUR 7.6 billion of dry powder end of '25 to be ready to capture new investment during the year '26. We've been talking about executing larger transaction. That's a very key important point that we wanted to mention today. So out of this EUR 7.6 billion of deployment during the year, we had EUR 1.2 billion that were deployed through dedicated co-investment vehicle. That has been the case on the private equity business, such as the Egis transaction we've been commenting for a few months. EYSA in Spain, that has been the case for as well ScioTeq aerospace and defense deal in Belgium. That has been the case as well for real assets through this residential deal. That has been the case as well for private debt, where we had several deals where we have welcomed co-investor. So that's clearly a new feature here, creating adjacencies, creating new funds alongside our flagship and welcoming co-investors. What does that mean? That means that through this creation of new vehicle, we are bringing into the platform additional fee paying. So management fees that are going to fuel our fee-related earnings and additional performance fees, which will depend on the exits, of course, but which will fuel as well our asset management EBIT. So looking at what happened in '25 over those co-investments, that's roughly more than EUR 1.2 billion of additional co-investment, bringing more than EUR 150 million of asset management EBIT for the coming year. Realization, clearly here, once again, a strong increase. It's almost double figure as what was exited in '24, so reaching EUR 4 billion of exits. Here, again, private equity has been increasing significantly. That's EUR 1 billion of exits for 5 positions that were exiting during the year, reaching 2.6x of multiple. So clearly in line with our fund expectation. As far as real estate is concerned, we remain stable, EUR 500 million of exits. Multiple on real estate achieved has been 1.6x. That's at asset level, unlevered and those exits are mainly residential and light industrial. As far as private credit is concerned here, clearly, very strong increase. Realization have reached a record that's almost EUR 2.7 billion. As far as direct lending and corporate lending are concerned, those are repayments. The average MOIC reached has been 1.4. As far as our specials business is concerned here, we've been exiting several positions as well at our initiative, achieving a gross MOIC of 1.6x. I want to insist on that because clearly, in '25, I think that the global macro environment as far as exit is concerned, has been challenging. In that context, we've been able to deliver EUR 4 billion of exits. So we are sending back money to our LP. we are increasing the DPI, which is key. We are increasing the performance and all the average gross MOIC that have been realized on all of our exits are clearly either in line or above our fund expectation. Fundraising. So here again, we've been mentioning EUR 10.5 billion of gross inflows, record year. As far as net inflows is concerned, that's EUR 8 billion of net inflows, so a 13% increase during the year. Looking at this fundraising a little bit more in detail. You can see that as far as private equity is concerned, we've reached EUR 2 billion. I'll come back on that. Notably, those inflows have been driven by the cybersecurity final close, regenerative agriculture as well. Our specialist fund being decarbonization fund #2, aerospace and defense fund #2 have been benefiting obviously from strong inflows in the current environment. As far as real estate is concerned here, it's a performance of EUR 1.3 billion of net inflows, focusing on value-add and Core and Core+. This is including the previous transaction I was mentioning, notably residential in France, the one in the Netherlands as well. Strong contribution from credit, EUR 4.4 billion, stable versus last year. As we just announced a few days ago, we've been closing our credit secondary fund #2, $1 billion, which is almost double the size versus previous vintage. As far as direct lending, vintage #6 is concerned, which is still open as we speak, we are close to EUR 5 billion. And here, we have secured the 2 largest individual LP commitments in our history from Germany and in U.S. Demand as far as direct lending is concerned, remained quite strong. So as you can see over here, diversified strategy, larger tickets, co-investment, client conviction, bringing us into this record EUR 8 billion for the year '25. So just a snapshot here on where we stand on our flagship. So I was mentioning special opportunity fund number -- vintage # 3, EUR 1.2 billion, which is almost the double versus the previous vintage. Credit secondary, $1 billion. As far as private equity is concerned, regenerative agriculture, vintage #1, EUR 600 million; cybersecurity fourth vintage, almost doubling the size versus the previous vintage. As far as '26 is concerned, lots of ongoing fundraising as we speak. Obviously, direct lending #6 still open as we speak and benefiting from strong inflows. This year will be as well a strong year as far as private equity is concerned, we are still open during all the year, Aerospace and defense fund #2 and decarbonization fund #2. So you have here on the screen the evolution of our AUM during the year. So it started at end December '24 at EUR 49 billion, ending at EUR 52.8 billion. Different movements of the year have been impacted by the inflows I was mentioning, EUR 8 billion and the distribution standing at EUR 4.1 billion. You have on the right side of the page, the diversified and complementary asset class, the split by business unit. Client base, as far as client base is concerned, one important feature, Mathieu was mentioning the number of offices we are operating, namely 17 offices as we speak. Important to notice that as far as inflows are concerned, that's more than 80% of net new money that has been raised from international clients. You have here the biggest contributors for the year '25 being U.S. investors, U.K., Spain, Germany. To be noticed during the year '25, strong contribution from Asia, namely from Korea and Japan. Korea has gone over the EUR 2 billion mark for the year '25. Contribution as well from Israel, where we are approaching the EUR 2 billion mark as far as the LP commitments are concerned. So those are the most represented nationalities in '25. On the right part of the page, you do have actually the split, which means that international clients have increased from 44% '24 to 46%. So that's a 13% increase, representing EUR 24 billion at end of '25. Private market is an important feature. We've been focusing significantly over the past year over the strong growth, era of growth. That has been the case as well for '25. That's 25% of third-party inflows that were raised through private clients. That's actually notably all the initiatives we've been launching on private debt, private credit, unit-linked products have now reached more than EUR 1.5 billion at end of December. As far as AUM are concerned, that means private customer clients are now representing more than 34% of our AUM. That's actually more than EUR 18 billion. Two dedicated initiatives that have been launched during the year '25, one on private credit, namely TEPC, European private credit, semi-liquid fund, focusing on midsized European company. And second important initiative that was launched during the summer, which is a unit-linked dedicated to defense, security, aerospace. This unit linked is currently distributed through partnership that we're having with big insurance company. We are currently sending over EUR 200 million for this product, which -- where the distribution has started end of '25, focusing on our aerospace and defense practice and notably the track record that we are benefiting on that practice, aerospace and defense practice that was launched back in 2018. Last point on sustainability. A few years ago, we had set a target on AUM dedicated to climate and biodiversity. Our target was to achieve at least EUR 5 billion of AUM dedicated to that practice. End of '25, we are standing at EUR 5.8 billion, notably thanks to our decarbonization practice, Fund #2. So that means continued sustainability integration across the several pillars that we are benefiting through the WL platform. I will now leave the floor to Vincent for the financial review. Thanks. Vincent Picot: Thank you, Henri. So I'll start the financial highlights with our fee-paying AUM and the revenue generation in terms of revenues. So first, fee paying AUM grew by 6% compared to 2024. It was driven by net money on our private equity practice, capital markets and also by a very dynamic fundraising and deployment activity for direct lending and CLO business. In addition, it's worth mentioning that future fee-paying AUM grew by 24%, and it was supported by solid net money in direct lending strategies. We charge management fees on invested capital. So together, fee-paying AUM and future fee-paying AUM increased by 8% year-on-year. So that's a sign of securing future management fee generation. Also and the impact it has on management fees is that management fees increased by 8%, reaching EUR 358 million. That's an acceleration that we have noticed specifically in H2. Average revenue margin stood at 88 bps, which remains resilient. And worth noting that we record a clear performance-related earnings level of EUR 22 million, which is a record. On the following slide, a few data points on performance-related earnings. So at end 2025, AUM eligible to carried interest grew by 10% to EUR 24.8 billion. In addition, at end September 2025, we had EUR 220 million of annualized performance-related revenues, which are actually accrued at fund level and such level is based on the current performance at portfolio level. This amount is not crystallized yet. It is not yet accounted for in our P&L, and it will be recognized as funds approach maturity. In terms of asset management profitability and as Mathieu mentioned, we grew our asset management EBIT by 18% year-over-year, reaching for the first time EUR 150 million. This growth reflects specifically the increase in the core fee-related earnings with a notable acceleration in H2. This is mostly due to an increase in management fees in this period. Overall, Core fee-related earnings increased to 41% in terms of margin, exceeding so for the first time, the 40%, and it reached exactly 46% in H2. Overall and looking now at the cost base, we remained very disciplined because the operating cost base only grew by a mere 3% year-over-year. So that's a testament of an efficient resource allocation. Moving now to our investment portfolio. So at end 2025, the total fair value reached EUR 4.4 billion, very -- and still very granular with a bit more than 300 investments. Approximately EUR 3 billion of this amount is invested in our own management strategies. So it ensures an alignment of interest with our client investors. The remainder of this amount, EUR 1.3 billion is invested in our direct investment ecosystem. As you can see on the right-hand side, we've got a pretty well diversified portfolio in terms of asset classes. Now looking at the flows and what happened over the year, investments reached EUR 1.3 billion, of which EUR 951 million of capital calls in our own strategies, CLO, credit secondaries, private equity strategies mostly, but we also invested EUR 370 million in our ecosystem, and it was mostly driven last year by our investment in Schroders. 2025, so we carried out close to EUR 800 million of exits. Returns of capital were from various asset classes, CLOs, special opportunities, but also decarbonization and aerospace strategies that Henri mentioned when talking about distributions to our LPs. Market effects, minus EUR 18 million, reflecting mixed effects, positive fair value changes for our Schroders stake, also positive regulations in some of our private equity strategies, mostly aerospace and defense and also decarbonization, but it was offset by negative market effects in some very specific credit and real estate situations. And finally, currency effects amounted to minus EUR 161 million, and it's mostly linked to the sterling euro exchange rate. Slide 20 -- next slide. So in terms of portfolio revenues. So in 2025, portfolio revenues reached EUR 166 million. That compares to EUR 207 million in 2024. But as mentioned also by Mathieu, realized revenues actually grew very significantly by 19% year-over-year, reaching EUR 239 million. So that's worth highlighting. It's composed primarily of coupon, dividend and distribution from our whole spectrum of credit strategies, listed REITs and also ecosystem investments. As regards unrealized revenue of minus EUR 73 million, we've got a P&L impact of foreign exchange for minus EUR 52 million, mostly linked to the euro-sterling exchange rate. And as I explained in the slide earlier, also around minus EUR 20 million of unrealized negative changes in fair value. So excluding currency effects, our portfolio revenues grew by 33% year-over-year. If I have to wrap up our 2025 financial performance, strong performance in our asset management platform, as explained on the asset management EBIT growth. It was offset to some extent by currency effects and also by unrealized fair value changes on our investment portfolio. Looking now in a bit more detail, nonrecurring items and other of EUR 13 million. It's mostly linked to positive ForEx impacts on our U.S. financings. Tax expenses, EUR 51 million in 2025, in line with our net result before tax and a tax rate of around 25%. So overall, our net result group share amounts to EUR 136 million. And if we exclude main currency effects, our net result grew by 51% year-over-year. In terms of balance sheet metrics, our model is strong, supported by means of EUR 3.1 billion of shareholders' equity group share and also by short-term financial resources of EUR 1.2 billion. As regard our financial debt, which stood at EUR 1.9 billion, it encompasses a EUR 500 million new bond issue, a renewed and upsized RCF line of EUR 1.15 billion. And at end of December 2025, we had drawn EUR 150 million of our revolving credit facility. And as of today, we have fully reimbursed our RCF. In terms of -- so based on this -- so building on what I disclosed and building on our 2025 performance, we're also pleased to formulate a new 2026 vision that is disclosed on the screen. We will be laser focused on reaching an AUM of at least EUR 60 billion by end 2026, reaching FRE between EUR 175 million and EUR 225 million and the net result group share between EUR 420 million and EUR 520 million, excluding ForEx effects. Worth noting that approximately EUR 180 million of net result comes from the full disposal of our stake in Schroders that happened earlier this year. And also, we also disclosed a return on equity between 13% and 16%. So all those metrics show improvement compared to 2025 and are above market expectations. 2026 has to be seen as a step in our journey towards a long-term profitable growth that will be disclosed and presented just after. And we will be providing, of course, more details on our targets later this morning. Thank you very much for your attention. I will let Antoine for the concluding remarks. Theodora XU: Thank you, gentlemen, for this very thorough presentation. We'll now open the floor to questions. [Operator Instructions] And we will address in priority questions from the room, obviously, and also take questions from the webcast. So one question from Sharath Kumar from Deutsche Bank. Sharath Ramanathan: Very impressive presentation. So congratulations. I have 2 questions, if that is okay. So first one is while I totally understand your investment story, but I think it will be much simpler with an asset-light business, although I kind of understand where you're coming from in terms of your balance sheet, funding your strategies. But ultimately, I think it is very hard to deny that this has been hugely dilutive to your valuation. So has there been discussions to eye off the investment activity outside the listed entity so that it can improve your valuation? So that is the first one. And I want to come back to the usual topic on your share price valuation, low free float. A couple of years ago is when you disclosed your 2026 targets, at least on the asset management side, you have been mostly on track, while on the investment activity side, is there, I think consensus is widely divergent from your targets. Just been a very painful wait for the sector to rerate and you have not been alone in that. So -- but when it comes to increasing the free float, what is the latest update that you can give you? I know it's been a chicken and egg situation for the valuation to increase or the free float to increase, but what is the latest update that we can? Antoine Flamarion: Thank you for your question. That's a usual relevant question we had on balance sheet and asset light. As you all know, we started the firm just as an investment company in 2004. In 2007, we launched the asset management. So our asset management is 19 years old. We are celebrating next year our 20-year anniversary for the asset management. So we decided from day 1 that having a balance sheet will help fuel grow the asset management. And as we discuss a little bit later during our strategic update, we'll be more precise into that. But the truth is that we've been using the balance sheet to seed sponsor new initiative. Without the balance sheet, it would have been impossible to launch CLO in 2012, direct lending in 2009, decarb in 2018, aerospace and defense in 2020. Needless to say that nobody will even answer our phone. So we used the balance sheet to seed sponsor that. As a result, we have this balance sheet, a EUR 5 billion balance sheet and now a EUR 53 billion AUM business. We are clearly unhappy with the valuation. The sum of the part is miles away of what we should be. So clearly, we don't get the credit of having both the balance sheet and the asset management. For all of you who are very familiar, you just saw the latest M&A transaction announced, which is the Coller purchase for EUR 3.2 billion. Coller is making EUR 145 million of EBIT, let's say. So we just announced EUR 150 million. So that tells you more or less the valuation we should get on the asset management. And on top of that, we've got EUR 3.1 billion of equity. So we've been growing the firm using the balance sheet to seed sponsor, launch new initiative. As we enter now a new chapter, and we'll discuss that during the strategic update, we are committing less amounts to our funds. We don't really need now to seed sponsor with large amount of money. And as you see for the first year in 2015, the commitment we had in our fund declined. So we started the year with EUR 1.6 billion of commitment in our fund. At the end of the year, it's EUR 1.3 billion. So that's telling you that we don't really need as much capital as we needed before. So moving forward, we'll have really the 2 businesses, the principal investing, which will still remain invested in our funds. Skin in the game is critical for us. And we have the asset management business, which is now profitable. When we leased the firm, if you remember, we are making EUR 4 million EBIT, so no profitability at all. In 9 years, we grew from EUR 4 million to EUR 150 million. As you saw on the 2026 guidance and vision, we are targeting between EUR 175 million and EUR 225 million of FRE. So now asset management is profitable. The balance sheet, we think, is really back on track to be profitable. Vincent mentioned, for instance, Schroders, we will detail that, but Schroders has been a 64% IRR and a EUR 240 million net income. So that's why we are highly confident on the 2026 net income. So it's a very long answer to your question. People have very clear view on asset-light versus non-asset-light. Blackstone is really asset light. KKR is not asset-light. KKR is not compounding at a strong pace, the balance sheet. And at the end of the day, for the shareholder, I think what matters the most is the net income and to increase the net income, having the 2 engine, the balance sheet and the asset management will probably lead into more net income, more dividend and share price appreciation at the end. Theodora XU: Thank you. Two more questions in the room from Arnaud Palliez from CIC. Arnaud Palliez: Two questions related to currency impact. The first one is, can you give us the breakdown of your AUM by currency in order to forecast what could be currency impact on these assets? Then do you intend to put in place any hedging policy? I think all your debt is in euro. So do you intend also on the liability side to have a diversification by currencies? And the last one is regarding the net profit guidance for 2026. Is it at constant currency? Or do you make any assumption at this level? Vincent Picot: Okay. Thank you for your question. So as regards assets under management and the part of the share in foreign currency, so it's about 10% and mostly in U.S. dollars. We're exposed to the U.S. dollars around and through our U.S. CLO and private debt strategies mostly. As regard to your question around hedging, so we've got a hybrid approach at Tikehau. Like other actors in the sector, we have decided to put in place a natural hedging with financing in dollars. So it's $180 million private placement put in place in 2022. And we also put in place some forward contracts on some sterling on our sterling exposure to some extent. So we've got this hybrid approach using these options at our hand. And regarding your last question around our 2026 guidance in terms of net results, which we mentioned is between EUR 420 million to EUR 550 million. We mentioned very specifically that it's excluding foreign impacts. So basically at constant currency December 2025. Antoine Flamarion: And what we'll do moving forward when it comes to currency, when we have been issuing bonds, we've been initially only raising money denominated in euro. A few years ago, 3 years ago, we raised for the first time a USPP, dollar-denominated. So moving forward, we will probably match our non-European currency exposure, matching with the right liabilities, so probably issuing more USPP rather than euro if we need. We consider that it's probably the best way to hedge having a proper asset and liability match. It costs less money. It's much more efficient. And this hedging currency are always complex because you can hedge the amount of money you invest. So let's say you invest $100 million, GBP 100 million, you hedge that. But if you end up making 3x multiple having just the nominal hedge, your capital gain is not hedged. So we think that moving forward, we're going to issue more in other currency, if I may say. Theodora XU: One question from Nicolas Vaysselier from Exane BNP. Nicolas Vaysselier: The first one is on Schroders. I mean, you have a big windfall coming your way. That's a great problem to have, right? I'd like to know how you think about reallocating those proceeds between reinvestments or potentially payout to shareholders through share buybacks, exceptional dividends? Second question on your 2026 new FRE guidance. I'd like you to help us understand a bit how we bridge from where we are in '25 to get to the bottom end or even the top end of this guidance. So I'm wondering if you bake in some lumpier items like catch-up fees that you're expecting for this year, expecting some recovery at Sofidy in the subscription fees because they are meaningfully accretive to the margin. And what you expect in terms of evolution of the cost base next year? And then finally, my third question, you mentioned some negative mark-to-market effects on the credit portfolio. We've seen some of your peers actually suffering quite a bit. So I'm interested in any comments about your credit portfolio, balance sheet exposure, how it's performing and on the equity CLOs notably. Antoine Flamarion: Thank you for your question. Maybe I take the first 2 one. On reallocation or reinvestment, as mentioned before, we still have EUR 1.3 billion of commitment into our funds. So first of all, for instance, the Schroders proceeds is close to EUR 600 million. As Vincent mentioned, we are going to -- we reimburse already our RCF, which was EUR 150 million drawn. So that means that we have excess cash on the balance sheet. We're going to probably use that for our capital call, EUR 1.3 billion. Also it's over the next few years. So it takes time. We're going to continue to invest the balance sheet alongside our strategies. So we have commitment in our funds, but the balance sheet is now doing 2 things, co-investing within our strategy. So I suspect we're going to probably deploy more money into aerospace and defense, where we are clearly ahead of the curve. Same thing for decarb. And we start seeing more and more credit opportunities as the cycle is becoming more complex. You probably read a few days ago that we closed our secondary -- second vintage of private debt above EUR 1 billion, so twice the previous vintage. We are the only firm having such track record when it comes to secondary private debt. So I suspect that we're going to allocate the balance sheet more into secondary private credit. Maybe I start on the -- your question on 2026, and I will let Henri comment. So we have 4 metrics in our 2026. One is our return on equity between 13% and 16%, which is mid-teen double digit, as mentioned before. We are fairly convinced that we should reach between EUR 420 million and EUR 520 million of net income for 2026. Part of that is obviously the Schroders disposal. And as disclosed in the market, we decided to sell in the market our stake rather than waiting the end of the offer, which could happen in Q4, but could happen maybe in Q1 2027. You never know. So we are fairly convinced that we're going to reach this level of net income and as a consequence, this return on equity. Your question specifically on catch-up fees and FRE we have several vintage of private equity currently raised, namely AAP2, which is aerospace and defense and decarb 2. There is potentially a very large amount of catch-up fees as stated in the bylaws. So within this range of EUR 175 million to EUR 225 million, there is some amount of catch-up fees, and we are fairly convinced of -- when we look at our pipeline right now coming from LP, there is a very strong demand, obviously, for aerospace and defense, and there is still many European appetite for decarb. Henri Marcoux: Yes. Maybe in summary on that, there are many 3 drivers on that. First of all, you may have seen that future fee paying have been increasing significantly end of '25. So all these future fee paying will obviously be transformed into fee-paying when we will be deploying these funds. So this is the first driver for our evolution of fee-related earnings in '26. Second one is a mix effect. Obviously, as just described on the pipeline within our funds, we are now on the road investing and fundraising on our 2 big platform PE funds, namely decarbonization Fund #2, aerospace and defense Fund #2. Yes, there will be catch-up fees. But namely out of the -- maybe excluding even the catch-up fees, there's a mix effect with these 2 private equity funds and the track record we have benefiting on these 2 area. And maybe the third driver to increase effectively the FRE in '26 is obviously cost control. We started to be more -- to take carefully more of the issue around cost already back in '25, and we will be keeping in that area for '26. Mathieu Chabran: No, I just want to address the third question on private credit. I mean, I wish we had 2 hours to discuss private credit since so many things have been written over the past few weeks or a few months. But more specifically, we happen to have our CLO business within private credit. So just to answer specifically on the U.S. side beyond the ForEx that Vincent elaborated on, obviously, last year was a volatile year. And as you know, the CLOs or some arbitrage vehicle with some liabilities issued and that can be reset. And so what we had last year was effectively on this specific part, some kind of a lag between the end of September, end of December valuation at the asset side and the reset on the refinancing. So we're expecting to catch up on this side when we reprice and reset the CLO. Now more specifically on the private credit, I think there are as Antoine said, that's a big opportunity for secondary private debt, but we've never been as bullish on the opportunities to keep deploying with the same underwriting discipline when it comes to direct lending. The issue we've been facing, there are 2 comments. One is cyclical. The other is structural. On the cyclical aspect, what we've experienced partly in the U.S. is this massive growth and fundraise on credit where many managers and not being judgmental whatsoever have started to have to deploy resilient raise. And as you know, when some of our competitors raise $50 billion a quarter, it takes some time to keep the same discipline underwriting. We're still, I think -- and our partner, Cecile is in the room, I think we have 5% to 7% selection rate on our private credit deployment. So that has been driven effectively a lot of talk around the direct lending. The other thing that in the U.S., the bulk of all the noise you've been hearing was coming from the U.S. You've got the mid-market direct lending, which is on average, 6 to 7x now level. In Europe, it's more like 5 to 5.5. Our portfolio is 4.4. So as always, with credit, because the only thing you're getting is par, it's how do you underwrite and how do you structure going in. So it's a much more defensive portfolio that we've been having, and we just closed the sixth vintage of our strategy. We started in 2007. So it's a 19 years track record when, as I'm sure you know, 92% of the private credit managers were launched post GFC. So I think that here, it's important to -- I mean, we have our share of situation of negative watch where we're working. A lot of the cyclical aspect is effectively all the credits that were originated in 2021, the 0 interest rate environment, the Central Bank very accommodating policy and when people -- you had a base rate at 0 and spreads at 300, obviously, fast forward 5 years and you got a base rate at 4 or 5 and the spreads may be at 4 or 5, obviously, your cost of refinancing is much higher, and then you have to effectively recapitalize part of them. Now the silver lining, as Antoine alluded to, is that we're entering the golden age of the secondary private credit, and we are best positioned to tackle that. Theodora XU: Well, thank you so much. I'm sorry, I'm conscious of time. We'll address more questions later on during the second Q&A session. So let's take a short break. We'll resume in 10 minutes. Thank you very much. [Break] Theodora XU: Welcome back, everyone. So before moving into the strategic update, we would like to take a few moments to step back and revisit who we are and how we have built our platform. So we're going to show you a short video that retraces our journey, highlighting the evolution of our platform and the areas of expertise that position us as a differentiated asset management. Let's watch. [Presentation] Theodora XU: We hope you enjoy this video that really captures our journey. So today is not only about looking back, it's about what our platform is capable of delivering. We would like you to leave today's session with 3 key messages. First, we're exiting our build-out phase in asset management to move into a harvesting phase with accelerating profitability. Second, we're entering a new phase characterized by a greater strategic allocation of our balance sheet. It has been used since IPO as a great growth enabler. And now looking ahead, it will be used as a more strategic allocator. Finally, as Antoine mentioned a bit earlier, those 2 distinct and complementary growth engines will offer significant optionality for us to close the valuation gap and also maximize value creation for our shareholders. Aligned with our '26-'29 road map, we'll be focused on delivering the following objectives. First, deliver cumulative net inflows of over EUR 34 billion, representing a 22% growth compared to the EUR 28 billion we have raised over the last fundraising cycle. This is first one. And the second one is that we aim to generate core fee-related earnings margin of between 45% and 50% by 2029 compared to 41% achieved in '25. On top of those objectives, we have formulated 2 commitments. Those are to maintain our investment-grade rating and continue to distribute over 80% of our asset management EBIT to our shareholders. So now let's start with the first section of this new chapter. And please join me in welcoming on stage Thomas Friedberger to share his perspective on opportunities shaping the next decade. Thomas Friedberger: Thank you. Theodora XU: So Thomas, first question for you, and thank you for being here with us today. What would you characterize -- how, sorry, would you characterize the evolution of global markets today? And what do you see as the most impactful trend shaping the industry today? Thomas Friedberger: Thank you, Teo. So if we look at the size of the private markets, they were estimated at $26 trillion in 2022. They are expected to grow at $61 trillion in 2032. Those are not small numbers. It's approximately 50% of the current global GDP. And if you want to compare that to other markets, let's say, you have a global market cap today in listed equities of $140 trillion. So this number of $61 trillion expected in a couple of years is not small at all. It means that the private markets are converging with liquid markets and the convergence doesn't stop there. Let me take the example of private credit. Private credit has converged in size with the high-yield corporate bond market and with the leveraged loan market, both in the U.S. and in Europe. That's done already. As a consequence, the fixed income markets are more and more integrated with private credit spreading to investment grade to asset-backed lending. And this will offer a full range of new options to issuers going forward. We also think that, by the way, having a strong expertise in liquid credit through our capital market strategies is a strong advantage in that perspective of convergence. I would also say that in a complex world where uncertainty, volatility, dispersion are increasing, where asset allocators need to deploy large amounts of capital on the back of a strong growth in savings, the one-stop shop model is appealing. Why? Because platforms benefit from clear processes, from clear risk management methodologies, compliance, conflict of interest management, better client servicing, better reporting capabilities. Platforms also are able to source larger transactions, allowing co-investors to deploy large amounts of capital quickly. And they also can afford the multi-local approach, which we think is absolutely essential in the generation of performance. So the message here is that the convergence between public markets and private markets creates value. It creates value for companies and issuers. The increase in size -- in deal size in private equity and private debt provide more options for companies issuing debt. They can allow company to be taken private, for example, or to remain private for longer. It also creates value for LPs. We said that it's allowing asset allocators, large asset allocators to deploy large amounts of capital in private markets. It also gives access to private markets for private investors, which is kind of new. And also, it will bring the best practice of liquid markets to the private markets in terms of conflict of interest management, reporting and risk management. So all of that is positive. Theodora XU: Thank you, Thomas, for those very interesting insights. We've seen increasing sophistication, sorry, in private markets. What investor behavior shifts are most material? And what capabilities must managers build to truly differentiate and capture growth? Thomas Friedberger: So if I start with the institutional world, we noticed a sharp increase in demand for co-investments, for SMAs, for bespoke solutions. And that requires from us robust origination capabilities. I mean, capability to originate locally but at scale, which is the challenge. Also solid fund structuring and tailor-made solution to address all the specific demand from all over the world and also robust processes in terms of allocation, valuations, reporting. So that's on the institutional side. And so hence, the importance of the strength of the platform. If I now go to the democratization of private assets, so addressing private investors, it requires from us global distribution channels, so the necessity to talk to a large number of distributors or global distributors all around the world and also digitalization to deliver data-driven client experience and reporting, which we are addressing partially through our Opale platform. Theodora XU: So as we look to the future now, what structural themes do you see defining the next decade? And where do you see the most compelling opportunities emerging? Thomas Friedberger: So complex question to answer in a couple of minutes, but I'll try to do my best. We -- so there will be growth in 2026, 2027. But we think we have the conviction that this growth is going to be led by investments more than consumption. So CapEx-led growth, meaning that growth will be probably more concentrated on the sectors that are the priorities of the government. So the famous 4 Ds of McKinsey, Decarbonation, Defense, Digitalization, Deglobalization. We think that the growth will be concentrated with the companies able to enable this to happen. So the sellers of picks and shovels of the resilience, if you will. So aerospace and defense, energy transition, cybersecurity are among those sectors, and that's the reason why we are focusing on them. But let me also consider deglobalization. There is a need in Europe to create European champions also at the SME level. And that is addressed through direct lending because private equity players use 3x more direct lending than capital markets or leverage loans to finance those transactions. And so we think there is a strong opportunity also in European direct lending to build those European champions. Number two, we think that the economic value creation is in the world is switching from efficiency to resilience and resilience has a cost. The cost of producing closer to the consumer, the cost of getting insurance against climate risk, against cyber risk; the cost of operating with higher equity buffers and less debt to cope with COVID-like situations; the cost of having more robust supply chains. So we expect lower growth in the world with high growth concentrated on the sectors I mentioned. It will also probably change the way to invest in private equity. Companies are becoming more asset heavy than before. Even in the tech sector, you look at some companies now own data centers. They were asset-light before their own data centers. Some of them are now building their own electricity production capabilities to feed those data centers. So it will be more asset heavy and probably that the way to invest in private equity will switch towards more what Warren Buffett was doing, which is invest in more asset-heavy sectors, looking more at return on invested capital. And it will not be easy because the best CapEx are done by the best management teams, but you can expect a lot of misallocation of capital also when there is a lot of CapEx in the sector. So probably less reliance on multiple expansion and the investors will need to use less leverage. And if you look at what we've been doing for the last 15 years at Tikehau, it's exactly that. We've invested in sectors that are more asset heavy, aerospace and defense, for example, with less leverage than the average. Third theme is we are entering into a war economy, which doesn't mean hopefully that we will go to war, but which means that all economic agents are put at the service of the priorities of a given government. And that means probably accommodative monetary policies going forward, starting probably in May in the U.S., but also massive fiscal expansion, which means probably lower short-term interest rates and higher long-term interest rates, so steeper yield curve, which is good for banks, which drives the strong conviction that we've been having at Tikehau for years, saying that we prefer credit risk to duration risk. And so from that perspective, we think that direct lending, which is 100% floating rate is very well adapted to this environment, but also, for example, short duration credit in our credit capital markets activities. And last but not least, we think there is a strong opportunity in Europe because Europe is accumulating accommodative monetary policy, massive fiscal expansion in Germany, which will have consequences all over Europe, lower valuations compared to the U.S., lower levels of leverage in the corporate world and the end of the deleveraging of Southern European banks, which probably provides appetite to finance the economy from those banks, not only in Southern Europe, but in the whole of Europe. So a very benign investment environment despite all the European bashing that we see. And so with the condition of being disciplined, there is a very strong opportunity in Europe, where we deploy 80% of our AUMs right now. Theodora XU: Very insightful. Thank you, Thomas. Last question. In that context, what are the implications for our different asset classes if we go through each of our strategies? And what aspects of our value proposition best position us to capture these opportunities? Thomas Friedberger: So of course, I mean, it will be all about performance. Performance will drive fundraising. So performance will be key. And for that, we will continue to rely on, one, local sourcing, which is absolutely essential to the generation of performance, but also in terms of risk management, addressing tricky situations locally. Strong corporate culture of alignment of interest and as such, strong investment discipline, which we think we have by DNA and also partnerships to benefit from superior expertise and avoid crowded areas, partnership with corporates, partnership with partners in regions where we are less developed with why not other asset managers. So that's the create, don't compete angle of what we do. Now in terms of opportunities, there are a lot. I will regroup them in 3 categories: growth, value and niches. So in terms of growth, as I said, in private equity, the solution providers through the sovereignty, through the resilience will continue to experience strong growth in a world that will grow at a slower pace. So Aerospace & Defense and decarbonation are 2 strong convictions, and we are really confident there that by allocating our capital well, we can generate a lot of value for investors. In liquid strategies, we are very excited by anything related to the building of European sovereignty, which is a theme which is connected to what I just said on private equity. And on European direct lending, of course, this opportunity to build European champions in the credit space that is growing and is going also more towards larger cap financing with the condition, of course, to have the right allocation geographically and by sector is also a strong growth opportunity. Now value, value being benefiting from low valuations, but also liquidity gaps. We think that here, real estate is the obvious candidate, both in equity and financing, very strong opportunity in real estate with depressed valuations and volumes that are starting to pick up. Private debt secondary is also addressing this opportunity, buying LP interest or GP and LP interest at a discount, being selective is a strong opportunity. Special situations, which we define as financing good companies or good assets with a bad capital structure, so having a problem at a certain moment of their development. There is a lot of things to do in Europe. And with regards to niches, I would mention financial subordinated bonds. Those 3 yield curves will continue to favor banks. It's very European-centric opportunity, but we have a very strong expertise there in capital markets. Asia credit is also something that we want to be involved in. We launched a fund recently, and we think it will be a high-growth area in the coming decades. Theodora XU: Okay. Very interesting discussion. Thank you, Thomas, for your time. Well, to explore these themes further, we'll now be joined on stage by our 2 co-founders and Maxime Laurent-Bellue, our Deputy CEO, for a fireside chat on accelerating growth across asset management. Thank you, Thomas. Maxime Laurent-Bellue: Good morning, everyone. Thanks for being here today. It's a real pleasure for me to have this chat with our 2 co-founders gathered in the same place, which is not every day. Today, we will talk about the firm. We'll talk about the industry. We'll talk about the perspective. I want to talk -- I want to start with Antoine maybe -- and I know -- CEO said that we would not do too much history, and we'd rather look forward, but just a quick question to start. It's been a 20 years-plus entrepreneurial journey, which was quite incredible. And I must say I took part of -- a decent part of it, probably around 19 years today and I've seen the firm changing, improving, growing from the startup I joined in '07 to global asset management and investment company with 17 offices globally. So obviously, a lot has happened, and Antoine, in your own words, I'd like to understand what are the sort of key strengths or the key defining features that have been shaping or positioning? Antoine Flamarion: Thank you, Max. Let's try to capture the secret sauce. The truth is that as all of you know there is no secret sauce, it is a lot of conviction, ambition entrepreneurship, innovation and may be I start with that, we are entrepreneurs, as Max said, as Teo said, the plan is to look forward for the next 20 years. But the truth is that we started, as you know, with EUR 4 million as real entrepreneurs. And the journey has been colorful, complex. There is not a single day when you have (sic) [ haven't ] something new coming up, someone resigning, someone you're trying to hire, a deal going not in the right direction, a financing not in place at the right time, a historical shareholder willing to sell shares. So that's what's happening all the time. But because we are entrepreneurs, and I think a lot of people at the firm became entrepreneurs, maybe some in a different manner. But everybody is putting a lot of energy to make sure we keep the drive, we keep the energy and we innovate all the time. Financial industry is boring. As I keep saying, we used to have banks, insurance company. Now one of the largest European financial institution is probably Revolut, if you look at least on the valuation, $75 billion. Now the banks are trading up, and you've got several banks above $100 billion market cap. But this is what's happening. Revolut was nowhere, now it's $75 billion. Everybody wants to make sure that they put their funds on the Revolut platform. As Thomas mentioned, we create our own digital platform called Opale. It's been a record year last year. So we sell Tikehau funds and other GP on the platform. It's a greenfield. We've started with 0. Hopefully, in a few years, it's going to be several billions. And we started that again from scratch. So part of the secret sauce has been innovation. And you can innovate in this boring industry either on the way you raise money or the way you invest. We discussed earlier, Mathieu mentioned secondary private credit. We've been the first firm to launch secondary private credit in 2020 in the U.S. Secondary private equity was everywhere, but secondary private credit was really new. Now we raised our second vintage. We are accelerating on this front. And we've been doing that all the time. When we launched direct lending in 2009 in Europe, it was popular and well known in the U.S., but nobody was doing that in Europe. Defense is a very good example. And I think there were a question online we did not answer earlier about the deal flow when it comes to Aerospace & Defense. It's multibillions coming, and we launched that in 2020. So I think part of the journey, and I don't know if it's the success or not, but we've been innovating all the time. We're going to keep innovating. And you can innovate, as I said, on the asset or the liability side. When you partner with corporation, nobody in the industry has been partnering with corporation. When it comes to Aerospace & Defense, you know our partners, Airbus, Dassault, Thales, Safran, they put money, they sit on some of the committee. They help us analyze some of the company. And as a result, since 2020, we own 35 companies in the sector. We exited already 3 of them, reaching on average 2.7x multiple. You partner with these guys, you're probably ahead of the curve. When you launch decarb with Total and we launched already the second generation, again, you partner with Total that gives you an edge of understanding the sector, the trend. Does it make sense to look at hydrogen? Yes, no. Battery storage? Yes, no. And we've been doing that all the time. Max has been part of the team, who a few years ago, start investing and financing data center. We've done that a while ago. We sold one in the Netherlands in December. Because we are born in France, everybody know Mistral, the French AI company. We've been the one financing their data center. And I think it's been all the time for more than 20 years. So we're going to continue to innovate. Hopefully, that will generate more businesses. We will create more partnership with financial institution, with corporation. And it's a very long answer because as I said, there is no secret sauce. We are entrepreneur. We innovate. We keep the same pace. As some of you know, we put a lot of energy, we being the 715 employees are putting a lot of energy to make sure we make things happening. And that's going to be the same thing. But if you look now for the next 20 years, now we have 17 offices, a very strong platform, a very talented pool of people, and we see a big acceleration coming. Maxime Laurent-Bellue: And so it's interesting because innovation and partnerships have been at the foundation of our journey and sort of interconnected together. Should we expect obviously more innovation and more partnership? Antoine Flamarion: Yes. I think it's we've been -- I don't know if it's good, but we always find, Thomas mentioned, niche, a very specific thing because when we launched Decarb, it was a niche in Europe, frankly. When we launched Aerospace & Defense, now it's super popular, but it was not even a niche. It was -- nobody wanted to touch that. And I think we are looking all the time at what's happening in the financial service industry, and we look at traditional asset manager, Schroders is a good example. We look at alternative asset manager. We look at insurance company. We look at digital company. And you could expect more innovation, more partnership because that's how we build the firm. And I think now the partnership we can achieve are probably much bigger in terms of size than what we've done before. Maxime Laurent-Bellue: Thanks, Antoine. Mathieu, I'd like to move on the more the industry. In the same period of time, obviously, the industry has transformed rapidly tremendously. Thomas touched on the growth of the market, how the market and participants have been increasingly sophisticated, more players coming in, more competition, I guess, more strategies. So it's in constant movement. I'm not even mentioning the backdrop, which is obviously quite complex right now with geopolitics, tax and so on and so on. But how do we prepare for the next growth phase of the firm in that context? And how do we define our approach in this fast-moving environment and fast-transforming industry? It is a long question, sorry? Mathieu Chabran: It's a great question. First of all, congratulations for coping 19 years with us. I must say I did not realize, but that certainly illustrates that it's an entrepreneurial and it's a people business journey. But I mean, think about where we started and what -- when you joined us in 2007, what the -- I don't even think that alternative asset management was defined as a term. We barely talked about private credit that really was born on the ashes of the GFC, I mean, certainly in Europe. We were still very much in the GPLP world. I mean, if you look at the -- we were born in Europe, as Antoine said, not to mention France. And the market was extremely defined. It was the GPLP, you were doing mid-market European buyout. We were barely talking about private credit, as I said. You had some real estate managers for sure, but even real estate was not really perceived as, I think, an alternative asset class. That was probably certainly in Europe, the most advanced and most developed asset class that was -- that people could address and not to mention infrastructure, et cetera. Fast forward 2026, the name of the game every day, you read in the press, you see in the media are these juggernaut platforms. I mean, I can name them because they've been modeled in our development, the Blackstones, the Apollos, the KKRs managing more than $1 trillion. I mean we like to use this anecdote with Antoine. When we started in 2004, TKO with EUR 4 million of assets under management, Blackstone was managing $40 billion. And he was sitting at Goldman Sachs. I was at Merrill Lynch over there, and we were like, well, $40 billion. Fast forward today, it's $1.5 trillion, $1.6 trillion, the getting or something, and it's only starting. So this transformation of the industry which has accelerated over the past 5 years, it's complicated to date that. But you see that there is this massive transformation of increased savings on the one hand, private savings, bank, insurance, regulation, which is now very different in Europe than it is in the U.S., interest rate structure in some part of the world, I can think of Japan, I can think of others. And this globalization phase, which all of a sudden enter a deglobalization phase because maybe there is this cyclical moment with the U.S., where you're constantly on the edge. It's like being on a rugby playfield, right, and waiting for the information and seeing where the ball is going to be coming from, where we're going to have to play defense, to play attack. And that has been extremely exciting as far as I am concerned, we are concerned. And we've only been able to do that because we were lean, agile, that obviously, our team, our people were fully embarked in this dynamic. And that's why we're so -- I am certainly, I guess, we are, Antoine and I, are so excited about what's ahead because I can tell you that when people ask us what have you done differently? Well, maybe starting with $50 billion and not $4 billion with 17 offices and not just sitting in our seller in Paris. So we're at this crossroad now where we can tackle an industry that has been, as we said, changing dramatically, which I must say, has been somehow dominated by American brands, platform franchise, which once again, I respect greatly, but the world is in a different place now. And I think you cannot have some limitation on goods with tariffs. You cannot have some limitation on people movement with immigration and not have at some point some limitation on the most liquid assets, which is capital. And what we're seeing right now, which is rightly the point that Thomas made about sovereignty and the real defining investment that needs to happen right now, there will be a massive opportunity for platform like us. We've been seeing all along that you have to be multi-local, which means that when you're addressing Europe, and we're all seeing in London today, but I can see in the room, many people coming from different places. And we all know that doing business in Madrid, in Milan, in Frankfurt, in Paris, in London, it's different. The culture is different. The rural -- I mean, the legal environment is different. The networks are different. And we've been making this investment for the past 20 years. When we're talking about harvesting, that's what we are referring to, that TKO today is deeply rooted in every single market to be able to size, to execute, to monitor, to -- sometimes to restructure this situation. And that's what investors or certainly the 80% of the investors we've been referring to that we are now trusting us, that's what they are looking for. I'll give you an anecdote. When we started talking to Korean investors 7 years ago, -- and you spent a lot of time there. We all spent a lot of time there. I remember 7 years ago that some of them in our direct lending, for example, strategy, they were asking specifically to carve out Spain and Italy because back then, we were coming out of the euro crisis, the peaks, the whatever. Over the past 12 months, all the capital we raised in the region has been for private equity investment in Madrid and in Milan because it's moving so fast. And what those people are expecting from us is to be the local guide with the skin in the game, not just selling them the product of the months, but effectively promoting some investment strategy where there are some strong conviction at heart, but with capital aligned to them. And so here, again, a long answer, but I've never been as excited because the platform we have to tackle this new chapter in the market where effectively there is a dominance like in many other sectors by some of our U.S. friends, there is this, I guess, once in a lifetime for us opportunity to be this next-gen native European alternative asset managers, which has grown organically across asset classes with capital fully aligned. We might discuss later on M&A or something, but not trying to build artificially a one-size-fits-all platform, but to have a real bespoke and hopefully relevant, performing, as Thomas said, offering for those investors. So long answer, but I think we're best -- that's why we wanted to have this discussion with you now because I think the platform now is mature. It's mature to be harvesting these opportunities. Maxime Laurent-Bellue: Thanks, Mathieu. Shorter question now for Antoine maybe. We've -- I think we've sort of outlined a bit of the road map for the next few years earlier today. I want to be very specific, Antoine, on what would you -- and if you could elaborate on our key priorities. We mentioned scale. We've mentioned profitability. I'm sure underwriting is one of them as well. But could you give us your vision on that? Antoine Flamarion: Thanks, Max. Maybe I will start using what Mathieu described as harvesting. We've been investing for the last 20 years, building the platform. And we consider that the platform, which is multi-local, 17 countries, strong local investment team is fairly unique, meaning that we can source a lot of local opportunities. And when it comes to private assets, you're not buying assets behind your Bloomberg. You need to be local. So we started doing, I don't know, a lot of residential, for instance, in Portugal, in Spain, in Germany. And as you know, real estate market is very difficult, now we start seeing really big guys, almost all the sovereign wealth fund coming, knocking at the door to say, we want to co-invest with you in your residential expertise. And I think that's exactly the illustration of harvesting. We invest in the platform. We can source fairly unique assets with a very strong risk-reward profile. And that's about now the time to make sure we do -- we deliver a larger transaction. We keep the same investment discipline. And at the end of the day, it's not about growing the AUM. The most important thing is making sure you deliver performance for your LP, for your investor and as a consequence for the balance sheet and your shareholder. And I think now for this chapter, we're going to be focusing on more profitability at the fund level, at the firm level because we've been investing for 20 years. So now the operating leverage is much higher. We reached EUR 150 million of EBIT 19 years after launching the asset management. The asset management has been launched in 2007. After 19 years, now we reached EUR 150 million, and it's exponential. So I think now it's about time to harvest to make sure we increase the profitability. We need to be very selective in a very changing world. The example of Mathieu is clearly what's happening. 7 years ago, people will tell you, please, no Spain, no Italy. And now people will tell you, you're doing too much France. We want to do really Italy and Spain. And it's changing all the time. When it comes to real estate, people have been obsessed by buying retail real estate, office real estate. Needless to say, what the office market looks like now. So we need to continue to adapt. So I will say to answer and summarize what I say, scale, operating leverage, profitability, investment discipline and keep the same ambition, and that's the plan. Maxime Laurent-Bellue: What about M&A, Mathieu? -- we are -- as we discussed, we are well capitalized. So we are a potential buyer for not anything, but for many objects. The industry has been consolidating recently. How do you -- do you think we'll be active? And how do we assess the right match essentially? Mathieu Chabran: Yes. That goes back to what we were saying. I mean there is this imperative of scale right now, be in terms of footprint, size, assets and strategies, platform. And whilst there will always be the great and perfect investors very focused either locally or by industry. Clearly, the trend that we've been seeing over the past few years is accelerating and we'll be -- I think we'll be even more impacted by the cost of doing business, from a regulation standpoint, from a -- as I said, the footprint you need to have. And we are very well positioned. I mean, it's going back to some of the question we had earlier on about the balance sheet. The balance sheet has been a huge enabler for the asset management business, as Antoine addressed. It's always been as entrepreneur, you're never overcapitalized. It's quite often very the opposite. And so having this opportunity to be able to buy, seed, merge, sponsor, we've become the partner of choice for many bankers, some of you in the room, and I'd like to call on you to give you some evidence. But I mean, I think today, we've got 85 names in our spreadsheet in the pipeline of situation that we are looking at, small single strategy, single country platform all the way to some of the large platform that traded recently. And we have become partners of choice because of this balance sheet. I mean if people just want to sell, cash in and move on, that's not the type of things we're looking at. But people say, okay, now we need to have a stronger partner that can seed anchor the next phase of fundraising, the next fund to be fully aligned in the mindset and the culture and see the cross synergy we can have in the distribution, then the discussion becomes highly interested. Obviously, the -- I mean, the starting point is that there needs to be -- I think the first and foremost is the cultural fit. I think it goes past the financial merits. And now that we are 5, 7 years into some structuring M&A., I think that some of them will demonstrate that the cultural fit was not there, and there could be some issue there. So I will always put culture first. Then it has to be about the complementarity, obviously, because there will be little merit for us to be doubling up on some strategies where we are already a market leader in a market or in a strategy. And then it has to be financially accretive, right? The last thing we want to become is an asset aggregator because that comes back to the discussion we are making about -- we are having about the -- our earnings. It has to be a profitable growth. And so that -- when you put all that as a filter, it leaves from 100, it gets you maybe 10 situations, right? And from 10 situation, there's maybe only 3 you want to do and maybe one that will conclude. But we believe that M&A will keep -- as a general comment, M&A will keep developing, certainly in Europe, where some platforms are subscales, partly for some investors. We also discussed the fact that many asset owners, they are reducing the number of relationships that they're working with, but they are increasing the amount of capital they are allocating to. And that's something that we can benefit from now that we are at scale. And the other thing, I don't think we commented on this KPI and Vincent tell me if I'm off beat here, but I think we're still at 2/3 of our investors, LPs are invested into more than 2 strategies. So they will be into credit and private equity, into infrastructure and real estate. And that's something this cross-selling and the upscaling that you can have with your LP, that's where you can make obviously a big difference. So it's about being very selective. Maxime Laurent-Bellue: And on that, Mathieu, I was actually thinking probably even more selective than in any of our strategy, right? Because you certainly don't want to misunderwrite an investment in credit, in PE, real estate, but you, for sure, don't want to misunderwrite an M&A opportunity, right? Because... Mathieu Chabran: 100%. 100%, it's -- it's a people business. You have not seen us entering into transformative M&A that with all due respect from our investment bankers friends in the room, what I call sometimes the bankers idea, which is on paper, on XL, it's always perfect. It always works on XL. And then you've got this people business component that needs to be factoring. But as the industry mature, as some people get into some succession challenges, as some platform may be struggling to raise the next fund, those discussions are becoming very interesting. Antoine Flamarion: Maybe I'm adding a comment on M&A. All the transactions you've seen in the sector, all the comments are about how many times what's the multiple on FRE, okay? BlackRock is buying HPS on whatever, 17x. Collier has been purchased on 17x and so on and so on. Our view is that we should be focusing on the underlying fund and not the FRE multiple at the management company at the GP. Because at the end of the day, the value of an asset management business is the underlying performance. And I think people have been a little bit distracted in the last 15 years. So people have been buying a lot. As you noticed, we bought nothing. And we are in a position whereby we will be the one consolidating. But as long as we make sure that we are buying a very strong team, the same DNA and culture and very strong performances at the fund level because if you start having good performances, the value of your business is probably close to 0. So we're going to remain disciplined. We look at a lot of situation. And thanks to the balance sheet and our shareholder base, we can -- if we want, if it makes sense, be acquisitive. But no doubt that we're going to be very, very cautious. And we see -- we start seeing more and more opportunities coming. And as the cycle change, which is the case, for instance, in private credit in the U.S., there are more and more people knocking at the door. So we are really well positioned if we want, if it makes sense. Mathieu Chabran: And an extension to your question, Max, is it doesn't just have to be an M&A deal. It can be all these partnerships where we've been, as Antoine pointed out, I think, pretty good at with some corporates, with some financial partners, with some asset managers. I think that, that's going to be increasing. And when we were detailing the fact that moving forward, you have this asset management pillar, this balance sheet pillar on the asset management level, we become a partner of choice for those partnerships, partly with more traditional insurance companies, I can think of, with some other asset owners who are looking for some ways to deploy more into certain strategies. And that's also a step forward where our track record of having this partnership will certainly resonate well with this at this time in the cycle. Maxime Laurent-Bellue: Thanks. I'm conscious of time. So maybe before wrapping up, 2 questions, 2 final questions on each. Maybe starting with Mathieu. What would you say -- what would you like to preserve the most? Or what would you like to never change within the firm regardless of where we go, how we grow? Mathieu Chabran: Yes. Well, Put this little movie there. And obviously, we're in a particular seat on [indiscernible] because it was the 2 of us and now it's 700-plus people, we are working with. It was in a small office in Paris, and now we're on the road all the time, meeting with all our teams and colleagues and partners locally. I think it's close to 50 nationality we've got across the platform now. And this -- I no longer want to use the word DNA, but I think this culture, the singularity that we tried to develop over the years and still maintain that makes effectively hopefully, a small difference between similar platforms is certainly what we need to be focusing on. And when I look at the breadth, the expertise, the wealth of the people working around us, I mean, that makes a huge difference. Because at the end of the day, as Antoine said, what we do is not rocket science. But for as long as you are fully aligned, that you are fully embarked in terms of the people that are working to, then you can make effectively a difference in good and bad times. And you will know very, very well, you personally and many of our people that sometimes sitting at an investment committee, sometimes we don't even have to talk looking at each other, people because having been through all these cycles together and that might be the benefit of now time and experience, it makes a huge difference in the way you're approaching what is at core, as Antoine said, the investment, the risk underwriting, the fact not to be forced to doing something or -- I mean, each time we did something wrong was when we got to live into the former. And for as long as we can resist that because the people, we've been in the locker room together. We've been on the pitch together. We had the fight, the win, the losses sometimes, but we came back, that's what we need to preserve for sure. Maxime Laurent-Bellue: Is it difficult... Mathieu Chabran: For sure. For sure, I said. Maxime Laurent-Bellue: Is it difficult something to combine ambition, growth with maintaining entrepreneurial spirit, nimbleness? Mathieu Chabran: Just to share maybe with the audience, I mean, where I'm really, really happy is that today, our team, our senior leadership team, our partners, they're spread across all our offices from Singapore to New York, obviously, here in London. And that is something that has also been a key differentiating aspect where you need to obviously hire locally, but you need to maintain this backbone, this what is the culture of Tikehau and hopefully, the discipline too. Maxime Laurent-Bellue: Antoine, you opened, you closed. Any key message, any key commitment maybe for our partner, shareholders, investors? Antoine Flamarion: Talking about commitment, we've been committed to this business with our 715 people. We are very committed. We remain entrepreneurs. Mathieu mentioned DNA. It's still the same company with the same drive, the same energy, a more global platform, a longer track record because when you start, you have not a real track record. Now we can claim that in several strategies, we have a strong track record, a solid track record. The world is becoming more and more complex, and we mentioned sovereignty, technological changes, geopolitics, politics. It's going to continue to be like that. So we're going to keep diversifying our business from a geographical point of view, from a sector point of view. We need to adapt the firm. I mentioned Revolut, our own platform, Opale. We launched several initiatives called either Retina or Lagoon, which is our own AI tools. So we need to adapt all the time because we are not really AI or tech native. So we had to spend time. We hire younger people specialized in this area. So it's going to be the same. We still have a lot of appetite. We are not going to do stupid things. We discussed briefly M&A. We've got very strong conviction globally. We could be -- and I don't want to be arrogant, but we could be discussing U.S. asset management for 2 hours is there. We spend a lot of time there. I'm not telling you that we are announcing in the next 10 minutes something in the U.S., but we are looking at all of our options. We've got these 2 very solid businesses, the balance sheet with permanent capital that everybody is looking at. 10 years ago, you talked to some people in the GP industry, they said, we're going to enter permanent capital. And we said we have a EUR 5 billion balance sheet. And we've got this now profitable asset manager. So we're going to have the 2 businesses, making sure they are both highly profitable. And we're going to keep doing the same thing with the same drive, same energy with a very strong group of talented people internally and a very -- and I finish here, a very unique set of partners, corporate partners, financial partners. We did not really discuss today. But as you know, some of the largest families around the globe are invested with us from the U.S., from Greece, from France, from Italy, from Netherlands. And that's also part of our cloud. So more or less the same. with a little bit of new innovation coming. Maxime Laurent-Bellue: 23 seconds over time, I think that's fine. Thank you so much. Antoine Flamarion: Thanks Max. Theodora XU: Thank you very much, gentlemen, for this very interesting insight. Before delving into our final sections, beyond strategy and expertise, what truly defines us is the way we operate. Our entrepreneurial spirit is not confined to our offices. It shapes how we think, how we collaborate and how we challenge ourselves. So we'd like now to share a short video that captures this spirit in action. [Presentation] Antoine Flamarion: We just do cycling, FRE, net income, that's the real Tikehau. It's a cycling and sport company. Henri Marcoux: Just got down from my bicycle. Good morning again. Yes. So we'll be finalizing this presentation, starting maybe a quick introduction in terms of compounding effect and velocity focus. We wanted to remind you a few data points. First one, there was a question earlier this morning on our balance sheet, asset-light. We wanted to remind you a little bit the way we've been using our balance sheet, how have we been operating over the last years. Here, a quick snapshot once again on our investment portfolio. A few take away. First one, a significant increase of our investment portfolio went up from EUR 1.6 billion back in 2017 to EUR 4.4 billion as we speak. Second takeaway, the way we've been rebalancing this investment portfolio. Earlier back in 2017, it was allocated 33% through our strategies. It has gone up roughly to 80% in '23. End of '25, the allocation to our own strategy stands at 69%. And that's actually a direction we want to keep on going, which means actually having lower intensive allocation to our investment strategies. So what have we been doing with our balance sheet? A few examples have been given this morning. But obviously, investment in our own strategy, we've been mentioning that. We put our own capital at work. We invest alongside our LP, alongside our partner that enables us to effectively have a compounding third-party fundraising, accelerate international expansion. On the other way, investment in all our ecosystem, as we've been doing in the past, to forge partnership, complement our expertise and structure co-investment. We'll be coming back on the 2 first pillar. So first one, Tikehau Capital strategies. EUR 4.3 billion have been committed in our own strategy. As you can see, credit has represented most of this allocation up until now, 48% out of that 18% in our CLO platform, which, by the way, has enabled us to launch effectively 24 European and U.S. CLO since we started the business. Alongside that, launch as well vintage and new flagship and adjacencies. Another 17% of allocation has been done through real estate and a significant part of our allocation of this EUR 4.3 billion has been carried out in private equity, roughly 36%. And all the initiatives that we've been talking about up until this morning, decarbonization cyber security, aerospace and defense, all these initiatives that were launched back in 2018 have been done, thanks to the allocation initially made by the balance sheet. One important point. We've been talking about this kind of third-party fundraising compounder. You can see here, each time from 2018 to 2021, that we were putting EUR 1 from the balance sheet, we had a kind of a multiple of by 7 of third-party inflows. Since '22, so during the last -- latest fundraising cycle from '22 to 25, this multiple has increased to 13. Several aspects to that. First, it's true that once the flagship are becoming bigger, once vintage are more advanced, for example, which is the case on vintage on direct lending, the multiple is higher. So clearly, we've been demonstrating that this fundraising companying effect was very efficient. Other key priorities already that was announced this morning as well as co-investment the use of the balance sheet is a key asset for effectively in this co-investment opportunity. We are using the balance sheet to warehouse partially some of these co-investments. That was the case back in '22 on this first private debt secondary initiative, more than EUR 500 million. It has been the case last year on several co-investment deals in real estate, in private equity, in private debt. We mentioned the deal in Spain, EYSA. So here, clearly, you can see that this warehousing capacity and use of the benefit is clearly playing a strong role in our business model. Now switching to ecosystem and direct investment. I won't come back -- won't belong on that, EUR 1.4 billion. But once again, here, it's a kind of full ecosystem, which clearly this full network is expanding deal flow. It is deepening expertise, and it is clearly enhancing market intelligence. So we are partnering here with 56 GP, 60 LP interest and it's providing a huge diversity around investment type, geography coverage or sector coverage. Antoine, do you want to provide a comment on that as far as our GP relationships are concerned? Antoine Flamarion: One thing we -- thank you, Henri. One thing we try to do is build relationships around the globe and long-term relationship across asset classes, geographies, sector. And we've been using this balance sheet in what we call ecosystem to generate opportunities. It could be co-investment opportunities when it comes to private equity, to private debt, to real estate. It could be financing, and you've got 2 examples here. We co-invested 5x with J.C. Flowers doing financial services all around the globe. So for instance, when they invested into BTG Pactual a while ago, when the bank was private in Brazil, we co-invested with them alongside GIC. More recently, we invested with them in Jefferson Capital. We just conducted an IPO. And for us, it's 2x realization, but the multiple is close to 8x now after the IPO. And so we generate within our ecosystem long-term relationship with families, with financial institution with very strong GP. And that's part also of what I described earlier as the cloud. Tikehau is not only 17 countries, 715 people. It's several families, several really big and smart investors. And I think when I keep doing that, that will generate more opportunities and also that's avoid you to do mistakes. When you partner with some of the smartest investor in the financial service sector, it could be Flowers, but we've done things with Stone Point, which is the other big investor in the financial industry in the U.S. Then you're a little bit smarter, if you look at a leasing company, at a private equity company, at an insurance company and so on and so on. And that really illustrates the DNA of Tikehau. It's not only one firm, one culture, one P&L., it's a cloud of partners all around the globe, which enable you to find smarter opportunities, avoid mistake and accelerate when it times to accelerate. Henri Marcoux: And what's the takeaway you're going to tell me? So here, we've provided a few data points, both from listed ecosystem investments. Realized proceeds now are amounting above EUR 1.5 billion, net MOIC 1.4x, that's a 13.2% net IRR. And as far as exited investment -- co-investments are concerned, that's more than EUR 270 million of realized profit and 2.3x net MOIC. So once again, here, you're demonstrating quite demonstration of what we've been achieving over the last cycles have clearly demonstrated strong returns within our business model. Do you want to provide a comment or we can... Antoine Flamarion: Yes. No. We had the opportunity to discuss a little bit earlier our investment in Schroder. But as you know, we've been using our balance sheet to invest in the financial services. Back in 2012, we bought Salvepar from Societe Generale. In 2017, we were the second largest shareholder of Eurazeo with a 9.5%. So we are always screening the entire financial services industry. When it comes to Schroder, which is probably -- which was the best name in the city of London with a very unique business, size, very strong track record. The company has been under some pressure and as a consequence, valuation was very bad. So we decided to do 2 things: one, to become a relevant shareholder falling more than 5.4% of Schroder, but also building a relationship with them, trying to be able to create products, increase our distribution channel and we are still discussing with them on opportunities. And suddenly, a U.S. investor came almost 2 years after we made the initial investment, decided to launch a takeover. And that's, for us, is generated close to EUR 240 million of P&L, a very strong return. And we use the balance sheet to really do 2 things: deliver good investment and generate business. And that's part -- that illustrates perfectly what we've been doing for 22 years. Henri Marcoux: So now moving forward and looking at the next 4 years, the next chapter, what are going to be our allocation policy to -- as far as balance sheet is concerned. We are now exiting this phase where, as we mentioned, balance sheet was a growth enabler. We are entering into this next phase where our balance sheet will be strategic allocator. Our priority will be now probably to deploy less, rotate faster, target higher velocity and more value-add opportunities. So what -- no change here. Balance sheet allocation will be gearing forward Tikehau Capital strategies and ecosystem. As far as Tikehau Capital strategies are concerned, obviously, we will keep on going and we will have still strong skin in the game alongside our partners, but a focus will be reinforced on value-add strategies in PE, in real estate and in credit, with expected returns over 15%. And as I mentioned previously as well, greater flexibility, notably on co-investment. On ecosystem, similar pattern, strategic transaction, focus on high-performing investment and ancillary business. Three main objectives, very clear: improved portfolio velocity, generate increasing profitability and grow shareholder return. I mentioned lower capital intensity into the funds. If you have a look at the 2 previous cycles from 2018 to 2021, average yearly allocation in the funds was roughly 450 million a year. Since last cycle from '22 to 25, it was roughly 450 million, but including co-investment, the allocation will still be -- keep on going within co-investment and secured capital fund. But once again, lower capital intensity expected on this new cycle coming. We mentioned profitability and this next phase with a strong objective. Clearly, 3 main pillars will be enhancing our profitability them for the coming years. First one, operating leverage, and I'll be giving you in a minute the details of that. Performance-related earnings will be the second pillar on which we will be relying and investment portfolio. Operating leverage, we are exiting this cycle '22-'25, where we have reached EUR 28 billion. We are now targeting more than EUR 35 billion for this next chapter in the coming years. So clearly, here, more selectively adding -- we will be more selective in adding adjacencies and target new initiatives. We will be more focused clearly on scaling existing strategies. How are we going to achieve that? Once again, by deepening institutional relationship, high-growth region such as APAC, Middle East, North America, and we will also broaden our distribution, like was mentioned before by Antoine and Mathieu, notably to capture more private wealth demand. What will be the growth driver? You have them here, but clearly, all of them will be clearly used and all the structure that was developed over the last 20 years, the 17 offices and the setup in place will be clear in this new target to once again achieve more than EUR 35 billion -- EUR 34 billion of fundraising for this new cycle. Operating leverage once again here, I think that we have demonstrated that over the latest 2 fundraising cycle, operating leverage has already taken place. So Asset Management EBIT moving from EUR 4 million to EUR 114 million at the time of the latest Capital Market Day back in '22. Since then, reaching EUR 150 million, as we have described this morning. So that's a 52% CAGR since IPO. And once again, this sustainable growth has been supported by mix improvement and scale efficiencies. In that context, new chapter will be focused on reinforcement of this operating leverage, and we will be harvesting in this new phase. We are now targeting both between 45% and 50% of core FRE margin by the year 2029. Second pillar of this new phase of profitability of this new phase of development will be performance-related earnings. We've been repeating that for many years, strong value embedded within the underlying value, the underlying funds, shareholder allocation, more than 54% of allocation of this carried interest to the balance sheet, significant profitability driver. We've seen that during the year '25, by the way, it was the highest year in terms of performance-related earnings, EUR 22 million. So we mentioned this morning, this EUR 220 million of unrealized performance-related earnings. That's the picture -- how the picture looks like at end of September '25. So that's the underlying carried interest, which are being valued at fund level. We are expecting more than EUR 160 million to be maturing before the year '29. So we are here providing you a kind of a data point where we think the timing of this EUR 220 million where we think it will be realized. By the way, that does not include any additional value creation that can be created between '25 and the next coming 4 years, which will potentially create additional carried interest. Third pillar of this new chapter. We mentioned operating leverage. We mentioned performance-related earnings. Third one will be investment portfolio. And here, we wanted to provide you a data point. Sorry to be a bit technical on that. But in terms of how do we recognize within our P&L, the return of the fund. So up until now, all of our funds in which the balance sheet was invested have obviously been realizing capital gains. They have been disclosed underlying stake and cash has been returned to the balance sheet. However, we want to assess that up until the DPI is below 1, it does not create any P&L impact at our balance sheet level. So up until now, we have effectively some cash flow, but no P&L impact. As we are exiting the G-curve (sic) [ J-curve ] of most of our flagship and as we will be entering over -- DPI over 1, we are expecting significant P&L effect from our balance sheet and thus the new -- the kind of new forward looking that we are providing today as far as net result profitability is concerned. I was mentioning this G-curve (sic) [ J-curve ] effect once again here, 2 key decisions, 2 new allocations that are being discussed today. First, allocation in new investments which are allowing higher velocity. And second one, exiting J-curve for existing investments. These 2 elements will clearly drive this third pillar of the investment portfolio. Important data point as well on investment portfolio. Since the IPO, 2 clear cycle, 2018, 2021, '22, '25, these 2 cycles have so far returned -- have generated more than EUR 1.6 billion of capital return to the balance sheet. The next cycle that we are facing from '26 to '29, we are expecting an increasing return of capital for the balance sheet roughly above EUR 2 billion for the next 4 years. So which means that all the investments, once again, the investment portfolio that we have been describing together a few minutes ago, will generate more than EUR 4 billion of return of capital for the balance sheet. But how we're going to use this EUR 4 billion and we had the question earlier today, new investment within our fund, balance sheet optimization and shareholder return. Talking about shareholder return here, providing you a few data points, our historical dividend distribution history since IPO. We are reiterating today our guidance, which is effectively a strong commitment to distribute more than 80% of our Asset Management EBIT per year. And meanwhile, we are providing you this new guidance on Asset Management EBIT for '26 and as well for -- up until '29, notably reaching this 55% to -- 45% to 50% core FRE margin. So I hope that all this point, once again, are illustrating this next phase of development, once again, based on these 3 pillars clearly identified and described together. Antoine, Mathieu, maybe I will let you the floor for any conclusion remarks, if any, or otherwise, we can open Q&A. Antoine Flamarion: Thank you, Henri. Just commenting on the last slide on the dividend. As you noticed, we've been 2x since the IPO paying exceptional dividend. If we continue to deliver strongly on the balance sheet return, we'll probably have excess capital because as Henri described, we need to put less money into our asset management funds. So we could expect probably in the next cycle to make sure that we improve the return for shareholders. Shall we take some questions? Yes. Theodora XU: Let's take some questions. So several questions from the room. Question from RBC. Unknown Analyst: [indiscernible], RBC Capital Markets. The first one on fee-related earnings margin development. Can you share more color on what sort of cost discipline assumption underpin margin expansion as you continue to scale? Second is on secondaries. Perhaps you could expand on what is your longer-term ambition for these funds? And how competitive do you expect the secondary space to be over the next few years as your listed peers -- well, some of your listed peers are actively pushing to accelerate growth there. And then lastly, on AI and specifically, if you observed any material impact on your cybersecurity mandates? Also interested to know how you distinguish between AI winners and AI losers within your investment process? Antoine Flamarion: Thank you for your question. Maybe I take the first one on operational margin. I think we have a slide on basis points per management fees per asset class, if you can show that. As everybody know, there is a strong pressure from management fees in the traditional asset manager, which get totally disrupted by the ETF business. When it comes to private assets, we continue to preserve the management fees, if I may say. And if we can get the slide, you will get a sense. But overall, our management fees remain a little bit stable, declined a little bit, but we have our private equity increasing in terms of size. And as you will see on the slide, the private equity management fees is improving. We're at [ EUR 177 million ]. So 1.77 percentage management fee last year. We are above 1.85% management fees. So when it comes to revenues, we think that revenue will increase because of the private equity is increasing at TKO in terms of size and businesses. When we look at credit, there is some -- it's not pressure, but our average management fee is declining because we are issuing more CLOs and CLOs, the management fees is lower than the direct lending of the secondary private debt. But overall, we managed to keep the same management fees. As Henri pointed, we have more performance fees. We noticed that in 2005, with a 5.4 basis points. So when it comes to revenue, to answer your question, revenues will continue to increase. We are fairly convinced of that. Henri mentioned it, we start managing the cost. The first phase was really the growth phase. We open offices. We hire people. Now we are becoming much more cost conscious. So that means that operating expense will probably be managed in a better way. And as a result, that will lead to an increase in the margin of our Asset Management business. Mathieu Chabran: Yes, I'm happy to take the one on the secondaries. So when we decided to launch the private credit secondaries, which is what we are focusing on right now, that was in the context of our opening in North America in New York. And when we discuss with our partners, with Cecile here who's leading our direct lending practice, we say, okay, I mean, what would be the differentiating angle for us to be another direct lender in the U.S., which is already highly populated market, and that was 7 years ago. That was even before what's going on right now. And we came to the conclusion that after this very solid and robust cycle of primary allocation to private credit over the past 10, 15 years, similar to what had happened to private equities and the development of secondaries private equity, there will be a natural opportunity to provide liquidity to some LPs allocated to the asset class, we would be willing to rebalance their portfolios. And we thought that we were best positioned to do that because we were not a secondary solution provider like many of our competitors can be and that's their positioning. But we were credit investors at heart. And so we could demonstrate the merits of doing the underwriting, using our balance sheet as Henri just told you, and that's how we launched this practice. And what was perceived in 2020, like a very cyclical opportunity that was right in the middle of COVID, people were throwing away their financial assets became very quickly a structural strategy. And today, as some of our competitors and some more established names started to develop there in a matter of 4 years, it has become an asset class on its own. As Antoine said, we just closed our second vintage. So we now have more track record than some of our competitors to demonstrate the merits of the strategy. We've been allocating a lot of our own balance sheet. We've been using the balance sheet. The example that Henri was saying earlier, I can elaborate on that. Our first fund was shy of $500 million. And then came an opportunity to buy a portfolio, actually a single asset, but a portfolio from a Taiwanese insurance company was getting out of a Goldman Sachs mezzanine fund, a very large $15 billion trend, which we're already an LP with. And we knew the credit and we knew that in order to do that, we could not do that with the fund. Or by the time we would go and pitch our LPs, "Oh, are you interested with this co-invest?" The opportunity would be gone. So that's where the balance sheet is the most differentiating asset. And that's why today, we're trying to once again convince you that it's not a burden. It's our most valuable assets, enabled us to underwrite that, get these assets at some very attractive financial terms. And then once you have secured this opportunity, bring on some LPs, including some Hong Kong-based insurance companies, European insurance companies and turn this balance sheet capital into third-party fee-paying asset management. And so today, as we close the second vintage at $1 billion in our capital, we are convinced, as I said earlier, that not only it's a natural evolution when you're in the private market to find some liquidity and add on top of that, the little noise that we've been having for the past few weeks, we would expect this to increase. And today, when you look at all the competitive landscape of our friends, all the managers, it's probably $20 billion that has been raised by way of funds or SMAs and the opportunity set in front that is $100 billion. And those are public private pension funds, insurance companies, family offices, who are rebalancing the portfolio. And we like the situation where the supply demand is totally unbalanced because that's where you become a little bit of a price setter. And as a consequence, I mean, today, we saw public numbers where we're disclosing our fundraising, the close to $2 billion that we have deployed there have been both at $0.84, $0.85 a dollar which on an average, 3, 3.5 years remaining portfolio, you're creating a 500 basis point pickup for this illiquidity. If you remember, in secondary private equity during COVID, when interest rates were at 0, the secondary market was trading at a premium to NAV, because that's when people were like, if I can deploy overnight some capital instead of having -- we had some negative interest rates, if you remember, having some cash at the bank was costing me some money. So obviously, in some more defensive downside protected credit investment that we can underwrite in a bottom up, we like the risk reward and that we can generate effectively some mid-teens return. That's the return that we've been generating so far, which ticks exactly the type of return on equity we're going to have for the balance sheet. Henri Marcoux: You had a question on AI and impact on our cybersecurity business. Difficult for me to comment on. I'm a bit puzzled to say the list on AI winners and AI losers. I've seen some companies that are dealing with food premises and so on being AI losers and suddenly having decreasing value. So trying to understand that. I will not provide further comments. All I can tell is that our cybersecurity business, we are currently operating the fourth vintage. We had strong demand from investors and the size of fund #4 has roughly doubled. And by the way, meanwhile, something is currently happening over the last years, notably since '22, which is clearly called sovereignty. And I think that there's a clear here, a new environment, new paradigm where people are realizing that it's key. And I can tell you that within our portfolio, we are the biggest venture cybersecurity business with this fund in Europe. We are a shareholder of a company called ChapsVision. It's a global data treatment. All its systems are being used by the European government. Some may call it the European Palantir, but clearly, this company is growing significantly. We are a shareholder of Memority, which is a company providing data access to local information system locally or at distance. And I can tell you what we are seeing is strong business growth in all this company because major -- many companies in Europe are trying to replace and to be less dependent from the U.S. on all these sectors. Theodora XU: [ Isabel ] from Autonomous. Unknown Analyst: [ Isabel ] from Autonomous Research. So I have 2, please. My first question within the context that I understood from the full year '25 results session that you expect FRE operating expenses to be broadly flat year-on-year. So first of all, correct me if I misunderstood there. But given this, we are seeing a number of your global peers move aggressively into Europe, both institutional fundraising and on the private wealth side, including lots of hiring of dedicated sales teams to push distribution. So how are you thinking about reconciling the need for operating cost control against maintaining or expanding your competitive positioning and market share? And then my second question is on PRE. Thank you for the color on when you think it's going to mature. On the EUR 160 million that you expect to mature before 2029, should we expect that to be more back-end loaded towards 2029? Or could we see a substantial share come through this year, please? I appreciate that might be hard to predict, but maybe if you could set out some parameters, do we need a certain fund to do very well or a couple of disposals should trigger that first recognition? Mathieu Chabran: So -- go ahead... Henri Marcoux: You know that performance-related earnings. I don't have an Excel spreadsheet with every month for the -- it will obviously depend on from value creation and exits. So obviously, internally, we are -- we have all of our underlying EUR 600 million position that we are hosting on PE private debt. We are working on some kind of forecast, but difficult effectively to provide you data, strong data sets, either by year or by quarter by quarter. Antoine Flamarion: But maybe what we can say is that the figure you saw here, the EUR 220 million, it was the same figure 2 years ago, if you recollect. And we had in between for the 2 years, EUR 40 million. So we'll receive EUR 40 million, EUR 22 million this year and a little bit less in 2023. So we still have the same EUR 220 million. So that means that our AUM base is growing. Our eligible AUM base to carry interest is growing. As you know, we try to be conservative on that because you cannot really predict PRE. What we can say is that we are building more and more private equity exposure, which will generate probably more carried interest than traditional real estate or credit. When Henri and Vincent highlighted 2.6x multiple on exit on private equity is generating more carried. So I think we are very optimistic, very difficult to predict because it depends on the market, on your asset where you're going to exit. But we are fairly confident that, one, it's growing, and it's highly diversified because secondary private debt is another example where we're going to get carried interest as well. So that means that we are diversifying our pool of carried interest, difficult to predict, but it's improving, and we are very confident on that. Henri Marcoux: And if I make co-investment carried interest are obviously quicker than fund carried interest. Antoine Flamarion: And maybe if you go back to your first question on -- regarding retail, one of the firm motto is create, don't compete. 30% of the money we manage is coming from retail investors directly or indirectly. So we've been pioneer in France with unit-linked product. We launched with our partner, Intesa 4 years ago, a very big program. We've done the same thing with our partner in Abu Dhabi, First Abu Dhabi Bank. We just signed something with the largest bank in Singapore. So my comment is that we still have 30% of AUM coming from retail investor. I mentioned large family offices that are investing directly with us. So do we need -- to go back to your question, do we need to build a giant sales force to tackle the retail? We are not convinced, and that's not what we're going to do. We see our peer group in the U.S. hiring hundreds of people to cover IFAs, banks and so on. We are fairly convinced that we can keep growing there without adding gigantic cost, number one. Number two, we'll try to be more digital. So we create our own platform, Opale, which is already fully operational. It's not gigantic. But in 2025, we raised EUR 260 million through this channel, and it's a greenfield. So we don't think we need to add a lot of resources. Our competition is doing the other way around, and they have larger brands than us, the U.S. guys, not the European guys. But we are fairly convinced that it will not destroy the profitability of the asset management. Mathieu Chabran: Maybe to preempt a follow-on question, which is all this retail focus by many, we've been fairly constant and public on that. We thought that there might have been a bit of misselling in trying to address this market with open-ended evergreen structure. And I'm not only reacting to the headlines over the past few days, but there's been -- I don't want to name anybody, but there's been some things on the real estate happening, how can you have some daily liquidity when you're owning 25 building a city of London, how do you want to offer the liquidity to your clients? On the private equity, the same thing and some of the Boost funds have grown exponentially because obviously, you had a very good brand, a good track record. And some people may have said, and it's not about the managers, sometimes the distribution saying, "Oh, you can buy this private equity or have a debt fund, it's like buying European equity usage". Well, it's not the same thing when it comes to liquidity. And our conviction is that you rarely die of your assets, but very often of your liabilities. And that's a risk that is now in the market that don't want to be overreacting to some news flow. But part of what we show you, we have out of the EUR 52.8 billion, we've got EUR 200 million in an open-ended structure with a targeted return of 7% to 8%, when the other people are showing a low teens because of the leverage, [indiscernible]. So we are looking at the technology. We want to make sure that we can address and tackle the opportunity, but there will never be -- that we will never compromise with the asset liability matching that we believe is what we owe to our customers. Antoine Flamarion: And there are some products whereby you don't really need a specific sales force. So we have -- we launched one unit-linked product with our French partner, Societe Generale. It's a unit-linked product dedicated to aerospace and defense. And for the first 2 months, it's been EUR 1 million per day more or less. And it's not our sales force. It's really the sales force of the bank. So we don't need to add extra people to market that. Theodora XU: Question from Nicolas Payen from Kepler. Nicolas Payen: Nicolas Payen from Kepler Cheuvreux. First one on net inflows. Just wondering, what kind of environment assumption have you baked in, in your in your planning when you set up your net inflow targets? And also, if you could give us a bit of color regarding the kind of asset class mix you're expecting regarding net inflows until 2029. That's the first question. Then the second one will be on balance sheet investment returns. Thank you very much for your comments regarding the acceleration on the G-curve (sic) [ J-curve ]. Just wondering what kind of return shall we expect on the -- in the balance sheet? If I remember well, last time, you mentioned something like 10% to 15% return on balance sheet investments. So wondering if that still holds. Antoine Flamarion: So maybe when -- I start with net inflows. As Mathieu, when he started, highlighted its fourth year in a row record year when it comes to fundraising. If you look at the net new money, the EUR 8 billion we get or the EUR 10.5 million gross, it's now really coming from all around the world and still 50% is going into private credit. But within private credit, it's highly diversified between secondary private debt, direct lending, CLO and so on. So my point here is that we try to diversify as much as possible. As business owner, you want to build a very diversified business. So now that the platform is fully operating, we're going to expect net inflows coming from all around the globe. For the first time, we had a reinsurance company invested EUR 500 million with us in 2025. 12 months ago, we never came across this investor. We had a German reinsurer company investing EUR 350 million with us in 2025, first time. Large Japanese insurance company invested EUR 200 million in 2025 in a direct lend fund. So to illustrate that, the net inflows will come from all around the globe. We will probably benefit from the geopolitic at some point. So I'll give you one of our favorite topic Canadian pension fund, which are by far the largest, probably similar to the super annuities in Australia. They used to put all their money with the large U.S. GPs. Now they want to find European and Asian GP. So going back to your question, the net inflows will really come broadly from all the geographies, number one. When you look at institutional investor and retail, we commented a little bit earlier, but we keep build the infrastructure, the technology to attract retail investor. It will also come on specific asset classes. So as everybody know, real estate has been very difficult for a lot of people around the globe. We've been very acquisitive in 2024 and 2025. So we start reinvesting in real estate because we see very good opportunities. So I suspect we're going to be the one benefiting from this shift back to real estate. We are not commenting and giving the exact breakdown of the 2029 in terms of asset classes breakdown. So that would be my question -- sorry, my answer on net inflows, maybe, Mathieu? Mathieu Chabran: There's one -- it's an anecdote, but I kind of like it. Q2 '25, so a year ago, we raised more in Latin America than we raised in France. And for me, it was an interesting anecdote because I've never been there. Antoine has never been there. We've got our colleagues covering Peru, Chile, Mexico from Madrid. And by working this market over the past 2 years, now we're starting harvesting at a time with some -- our domestic market. So that's where this complementary comes. And this harvesting concept we've been reinforcing all morning, it's really about that, that we made the investments because our CapEx, our OpEx, and now you're starting to have the investment payback. Antoine Flamarion: Maybe your second question on balance sheet return. Our goal is to make sure we continue to deliver mid-teen returns. We've been a little bit trapped into J-curve, as Henri described. So the way we are allocating the balance sheet moving forward is probably in a much more cautious manner. We have still the same target. And by the way, we build the firm being good investor at building the balance sheet. I like saying that, but we started Tikehau as an investment company in 2004. And it's only 3 years after that we launched the asset management. And the asset management has been able to grow from EUR 4 million EBIT to EUR 150 million of EBIT because we've been seeding the strategy and investing. And we are investor before being asset manager, and I think we're going to be very disciplined and probably much more disciplined than when we were before. I'm not saying that we are not disciplined. But now it's really the time of harvesting and the investment committee managing the balance sheet called the Capital Allocation Committee is becoming much more difficult, for instance, when internal teams are knocking at the door to say, yes, we have a new strategy. We want to -- we want -- sorry, to launch a new fund dedicating to cycling and we are targeting 7%, but the likelihood we take the piece of paper, and it's going directly in the shredder is 100%. So when it comes to balance sheet, investment and balance sheet return, we're going to stick to the same mid-teen return, which is going to be a mix of stuff because asset classes are different, but that's what we target. There's -- sorry go ahead. Mathieu Chabran: Last point is going back to your first question. There's no dependence on one market -- sorry, on one geography or one asset owner type for a fundraising. Now it's really broaden. And the same thing you may have picked up this morning in the detailed report we issued. Last year, our real estate fundraising on our open-end trends and our CMS fundraising was actually very modest to say the least, which historically have been very strong engine of growth. So obviously, those are open-ended, but you should expect a significant pick up there, too. Antoine Flamarion: He wanted to say engine. Theodora XU: Questions from Julian, ODDO BHF. Julian Dobrovolschi: I have 2. Perhaps the first one is on the core FRE guidance that you gave. Just wondering if you could speak about the drivers for reaching the upper end of the range, so that will be the 50% kind of think about the building blocks. So what would be the step up from 45% to 50%? And the other one is, if you could also say something about the potential gaps that you've identified in the operation model, so perhaps strategies, niches and that you'd like to develop or I think using Antoine's words, innovate, as you enter in this new growth cycle. Henri Marcoux: On the core FRE margin, I provided earlier the 3 main drivers. Obviously, we have the mixed effect driving the core FRE margin. We have, in terms of revenue, the pace of co-investment as well as an important feature. The more we are able to structure co-investment with additional revenue will be as well impacting that. And then you have on the other way around, obviously, all the cost initiatives. And here, we will be most -- we'll be more cautious, notably on extending any geography or extending any services. So difficult to assess in terms of timing, but we are clearly seeing something like 50% could be achieved depending on the pace on deployment on these 3 drivers. Antoine Flamarion: And probably, it will depend, as you know, on the business mix. So if we have more private equity coming, obviously, the operating margin is improving and the plan is really to keep growing at a faster pace our private equity. If you think about it, at the IPO time, we had no private equity, a part of balance sheet investment. Now we are getting close to $10 million of private equity. So in a difficult market because nobody has been waiting for us, private equity is suffering a lot, but the margin will be depending also on the pace of our private equity expansion. Henri Marcoux: But if I may add on private equity, I think you mentioned it, but I think we are the only one to have such differentiating factors, notably this partnering with industrial. We are relying on these 2 vein transition -- energy transition, decarbonization on one hand, aerospace and defense on the other hand. And on both strategies, we've been partnering with the biggest knowledgeable people in the industry, and that provides a key differentiating factor. Antoine Flamarion: Going back to your question on innovation, we really built the firm innovating, and it's been asset class. It just was Henri described, people doing private equity have been generalist. We decided to be specialized just because we said that we're not going to be another LBO shop. So we decided to be vertical. We are studying various vertical right now. So you're going to see us innovating. We want to make sure while we innovate, we are doing stuff we understand. So we don't expect to be active in cryptocurrency or we're in a stick to what we are good at. Its sourcing good opportunities that we understand. We have a lot of idea and we keep having a lot of idea. What changed probably is that we want to make sure that when we launch a new strategy, it needs to be really scalable. In the past, we thought that we had great ideas. So for instance, my colleague will kill me, but we launched something called Tikehau Green Assets, which was an amazing idea, an amazing team, and we have EUR 130 million into the fund. And I must say that EUR 130 million is totally subscale. So we want to make sure that while we innovate, it needs to be really scalable, above EUR 1 billion for sure and potentially make sure it's multibillion. Mathieu Chabran: You should see, I guess, some extension or, let's say, adjacencies. So when launching, let's say, CLO, CLO is a very scalable, but commoditized product. When we launched in the U.S. 4 years ago, we had been operating in London since 2015. The CLO pool in the U.S. because of the nature of -- and the structure of the market is running twice as fast, and we're scaling. We're now pricing our CLO #8 in 4 years when we had 15 in London. When we launched direct lending in Asia, that's because we think that we're getting to the point with the right partnership, the right shareholders the right investors to effectively have these adjacencies of a first fund, a first move that then we'll be able to scale. As Antoine said, our very first direct lending fund in 2007, so it's almost 20 years now, it was EUR 125 million. The last vintage, #6 that we just closed a couple of weeks ago is passed EUR 5 billion. So you get effectively -- all that is feeding of the operating leverage and the operating margin that we were talking about. You should see us expanding in real estate in North America. We've got a 20 billion real estate platform in Europe. We're managing public REIT, private REITs, commingled funds, open-ended funds. There is an opportunity right now that the natural extension into real estate bid debt or equity is made, I wouldn't say, at marginal cost, but it made at a phase in our development that the drop-through is also feeding your bottom line. So that's where you would see some -- you will see some natural expansion of the platform. Theodora XU: Maybe I'm conscious of time. One last question from this gentleman from [indiscernible]. Unknown Analyst: I have 2, if I may. First one is share price, very strong execution, very strong everything, but the share price does not reflect it. So how far is this management team willing to execute its tools in order that the market recognizes its intrinsic value because I think the market is not nearly recognizing the net asset value of its balance sheet. And the second is strategies for risk mitigation for the first of the French government of taxing and everything. So what ideas when we see all competitors, sometimes they have other jurisdictions to make their tax not go higher and higher. So thank you very much, and thank you for the strong execution. Antoine Flamarion: Thank you for your question. Share price, needless to say, not only because as we are the largest shareholder because we still control the employees still control 54% of the firm, we get very frustrated as some of our shareholders. So I think to cope with that, a few things. One, we need to make sure we keep executing and it's painful because you execute and your share price is not moving. So if you look at the slide I like on the EBIT, you started when you lease the asset management was EUR 4 million EBIT. Now it's EUR 150 million. Let's forget everything, okay? I'm launching a new company. I give you a business plan, and I'm telling you that 9 years from now, I'm going to reach EUR 150 million of EBIT, everybody will tell, okay, this guy smoke something because you cannot move from 0 to EUR 150 million of EBIT. So we're going to keep delivering on the profitability of the asset management. And I think it's really accelerating, so that's number one. Number two, the balance sheet, and that's why on purpose, I put this slide, we have really 2 businesses, which are very different. We use the balance sheet to launch the asset management to see to accelerate. But we are fairly convinced that the sum of the 2 balance sheets, the sum of the parts, if I may say, is probably twice at least where we trade now at EUR 16. So we're going to try to keep delivering. But also at some point, if we are not able to move the share price, and it's not only, I think, hopefully, us, the sector, it's also mid-market stock market in Europe is a little bit broken. So at some point, it will come back, and we start seeing a lot of U.S. investors coming to buy European shares, not only doing takeover as Nuveen on Schroder, but we start more U.S. guys coming. So hopefully, it will change the market because we need the market to change. But I must say that if we are not able to change the stock price just doing a regular job and probably increasing the payout for the shareholder, we may took more, I don't know, structural changes. And we already simplified the structure when we listed, as everybody remember, we had a [indiscernible] structure. We simplified the group. So now we are clearly saying that we have 2 businesses. And I'm not telling you that we are going to split the company in 2 companies. But we want to make sure if you are listed that the stock price and the stock performance is working because when you travel the world, everybody is looking at your stock price, you pitch a Korean investor for your direct lending. The first thing he's doing is Google, stock price, flat a little bit down. What these guys are telling me to deliver a lot of performances at their fund level. But -- so we are all on top of that. We are spending a fair amount of time. Now as the asset management is more profitable, I think it's going to be much more easy for us to change that. Mathieu Chabran: There is plenty of structural optionality. I guess that's part of the message we wanted to convey today. I mean we've always been a long-term greedy in making sure we can demonstrate and execute because when you start from 0, 5, you have to show over a cycle, a few cycles that you're delivering, which I'm convinced we are doing. And the rest should follow. If it does not follow, there are some structural optionality. Henri Marcoux: Now your question on France is a key question. We're going to face election... Unknown Analyst: [Foreign Language] Henri Marcoux: In a few months, we are -- I mean, we are dealing with it. And -- but difficult to comment, but we are dealing with it. Antoine Flamarion: And that's why, I think I mentioned it 2 times already, but we make sure we build a very diversified business in terms of asset classes, geographies, both on the asset and the liability side. So we want to make sure we raise money all around the globe, and we want to make sure we invest more or less everywhere in Europe, but also Mathieu mentioned North America, we start doing more and more real estate because real estate is a mess. So we took advantage of that being contrarian. And at the end of the day, we're going to build a global diversified business. And it's changing all the time. The perspective, we discussed Spain and Italy, 10 years ago, when we opened -- so this year -- sorry, in 2025, it was the 10-year anniversary of our Italian opening in Milan, okay? People at the Board of Tikehau told us 10 years ago, "you're opening in Milan. Are you crazy?" And now everybody is going to Milan. So that's why, once again, create, don't compete. We have very strong conviction. France remain France. It's one of the largest countries in Europe when you look at economic footprint, innovation. And so we're going to continue to do stuff in France, but maybe the way we allocate is going to be more diversified. Theodora XU: Well, thank you so much, everybody. Thank you to the speakers, to the audience today for your engagement. We can continue our discussions in a more informal manner with a light cocktail. A big thank you to the IR team that works in the shadow. And thank you very much, and we look forward to build this next chapter together. Thank you.
Conversation: Theodora XU: Good morning, ladies and gentlemen. Thank you for being with us today. Today is about 3 words: acceleration, profitability and value creation. And everything we'll discuss this morning will connect back to these 3 priorities. I'm Theodora Xu, Head of Investor Relations for Tikehau Capital, and I'm delighted to be hosting today's full year results and strategic update. So today, you'll hear from our 2 co-founders, Antoine Flamarion and Mathieu Chabran; our Deputy CEOs, Henri Marcoux, Thomas Friedberger and Maxime Laurent-Bellue; and our Group CFO, Vincent Picot. So a little bit of housekeeping element on the flow of this session. So we'll first start with a look on Tikehau Capital key achievements for 2025 and then open the floor for a first session of Q&A dedicated to our annual results. We'll then take a short break to allow everybody to refresh, to grab coffee before moving into our strategic update. Then you'll hear first from Thomas, who will share his perspectives on opportunities shaping the next decade. Then we'll have Maxime hosting a fireside chat with our co-founders, discussing accelerating profitability across asset management. Then we'll have our co-founders and Henri provide insights on our evolving approach to balance sheet allocation before taking us through the harvesting phase Tikehau Capital is now entering and providing more details on profitability drivers and value creation framework. We'll then host a second session of Q&A dedicated to our strategic update. With that, it's my pleasure to welcome to the stage, Mathieu Chabran, Co-Founder, for opening remarks. Mathieu Chabran: Thank you. Thank you, Theo. Welcome. Welcome, everyone, here in London, and welcome for all the people who dialed in on the webinar or the webcast. I hope that you can hear us okay. You got all the documents and that you will be enjoying this presentation with us. So very happy to be back in London, not only for our 2025 full year earnings, but also for this new Capital Market Day, as we call it, and very excited with -- on behalf of all the team to host you at Tikehau and give you a little bit of the forward-looking, which is really what we would like to focus on today. But first, let's start with our '25 earnings that were released this morning. I like to call it a record year because the numbers stand. But before we get into the numbers, I would like to tell you and witness how strongly the franchise has evolved over the past few years and the acceleration, as Theo was rightly saying that we benefited from in 2025. It's been a record year on the deployment despite if you look back and think about what 2025 was as a year and as markets to operate in, that was a record year on the deployment. On the realization, we come back to that on exiting some of our portfolio companies and distributing back to LPs and as well as the fundraising, the gross and net inflows, we'll get back to that. We told you in 2022 that the focus was to develop, grow the profitability of the asset management. Remember that when we went public 9 years ago, we were barely doing EUR 5 million of EBIT. It's close to EUR 150 million this year. And you will see that this growth and expansion in asset management profitability is here to stand and we'll give you some guidance where we think we can go. And then finally, on the portfolio, you've got these 2 engines at Tikehau, right, the asset management, the principal, our balance sheet, we saw some strong contribution, albeit this year impacted by some ForEx, and we'll come back to that. So as I was saying, record in deployment, realization inflows. On the deployment, it's EUR 7.6 billion that we put at work at Tikehau, which is an increase of 35% compared to 2024. On the realization, on the exit, we like to say at Tikehau that you have to give back so that people keep giving. And you keep hearing about investors not getting money back. What we tried to do last year is to demonstrate that, yes, you can exit some portfolio company, give back to your investors so that, that keeps fueling the next cycle of growth. And that was twice what we did in 2024. On the capital formation, it's EUR 10.5 billion of gross inflows, and that's the fourth consecutive year of a record year in fundraising. It's EUR 8 billion in net inflows. And what we are very encouraged by is that the whole investments we made in the platform over the past few years globally, remember, we went public, we had 5 offices. When we saw you in 2022 for the Capital Market Day, we had 7 offices. It's now 17 offices we've got across the world. And from Asia, including Japan, Middle East, across Europe today, North America, even South America now, we've got all these new customer base that are fueling the fundraising at Tikehau. So 80% last year came from new customer base, new geographies outside of our domestic market, taking our overall AUM to EUR 52.8 billion. So as I was saying, we've been focusing on larger transactions with a more global portfolio, not only in Europe, domestic market, but in Asia, in North America. And that has enabled us to raise additionally more than EUR 1 billion, EUR 1.2 billion of co-investments on some of those larger transactions. You'll have some examples later on that you may have picked up over the past year, but that has been a strong driver. On the capital formation, as I was saying, a few elements. In Asia and Middle East, it's EUR 1 billion that was contributed. We hit the EUR 1 billion of inventories of clients in Korea that we had opened 6 years ago. And just I'll give you an example that we kind of like just last year, out of the EUR 10.5 billion gross inflow we had, 4 investors -- 4 new investors actually accounted for 20% of our fundraising, and they were all new relationships of ours, bigger commitments. I mean, they came from some very complicated to penetrate markets. I'm thinking about Japan, thinking about Germany. I'm thinking about the U.S. I'm thinking about Middle East, GCC, Abu Dhabi. This is a strong illustration that the investment we made in the platform is now paying off, and we're harvesting all this investment that we had made. And so as I was saying, giving back capital to RPs EUR 4.1 billion that we returned to our LP last year. And just as a data point because people have been talking a lot about private equity last year, and I'm sure we'll have plenty of questions about private credit as well, and we're looking forward to addressing them. But it's a 2.6x that we returned to our investors on the realized transaction. So where does that leave us on the financial? I mean, we issued this morning all the numbers in the details, we'll come back. But if I look at the first pillar of our business, our asset management business, it's an 8% growth of our revenues, converting into 18% growth on the -- at the EBIT level. We grew by 12% our core FRE, this fee-related earnings. And for the first time, as we told you a few years ago, we passed the 40% core FRE margin, and you may have picked up, and we will come back to that, that we're giving an improved guidance on this very important profitability element. On the second pillar, on the portfolio, it's a 19% growth in our realized revenue for the balance sheet, our investment portfolios and a 33% revenue growth if we exclude once again these currency effects that Vincent will be detailing. So finally, it's EUR 136 million net income that we are reporting for 2025, which is 51% growth if you exclude this currency effect. And so we will be -- we propose EUR 0.80 dividend that we'll be voting at the next AGM. So that's for the key element. There will be plenty of details on the session. Once again, thank you very much. We look forward to an interactive session. Thank you, and I will hand over to Henri for more details. Henri Marcoux: Good morning, everyone. Thanks, Mathieu, for this introduction. So let's jump into our asset management flywheel. Maybe we'll start with deployment. As you have seen, deployment has clearly stepped up during the year '26. We've reached EUR 7.6 billion of deployment. So that's an additional EUR 2 billion, 35% compared to the year '24. Starting with private equity maybe, with a EUR 2 billion compared to EUR 600 million the year before. Clearly, we've accelerated deployment, notably on aerospace and defense, cybersecurity, decarbonation in Spain, Belgium, Germany and in U.S. through our flagship strategy, but as well through our co-investment vehicle. Real assets represented EUR 1.4 billion of investments compared to EUR 1 billion during the year '24. Here again, discipline has remained paramount. We continue to focus on high-quality, well-located assets, notably to be noticed during the year '24, big residential portfolio units in France as well as a big investment, first investment in real estate in the U.S. and notably several additional investments in the Netherlands. As far as credit is concerned, so that's clearly a stable deployment versus '24. We are standing at EUR 4 billion, very well diversified allocation through Spain, Italy, Netherlands, Belgium, U.K., very strong momentum as well on our CLO issuance business. And so we are ending the year with more than EUR 7.6 billion of dry powder end of '25 to be ready to capture new investment during the year '26. We've been talking about executing larger transaction. That's a very key important point that we wanted to mention today. So out of this EUR 7.6 billion of deployment during the year, we had EUR 1.2 billion that were deployed through dedicated co-investment vehicle. That has been the case on the private equity business, such as the Egis transaction we've been commenting for a few months. EYSA in Spain, that has been the case for as well ScioTeq aerospace and defense deal in Belgium. That has been the case as well for real assets through this residential deal. That has been the case as well for private debt, where we had several deals where we have welcomed co-investor. So that's clearly a new feature here, creating adjacencies, creating new funds alongside our flagship and welcoming co-investors. What does that mean? That means that through this creation of new vehicle, we are bringing into the platform additional fee paying. So management fees that are going to fuel our fee-related earnings and additional performance fees, which will depend on the exits, of course, but which will fuel as well our asset management EBIT. So looking at what happened in '25 over those co-investments, that's roughly more than EUR 1.2 billion of additional co-investment, bringing more than EUR 150 million of asset management EBIT for the coming year. Realization, clearly here, once again, a strong increase. It's almost double figure as what was exited in '24, so reaching EUR 4 billion of exits. Here, again, private equity has been increasing significantly. That's EUR 1 billion of exits for 5 positions that were exiting during the year, reaching 2.6x of multiple. So clearly in line with our fund expectation. As far as real estate is concerned, we remain stable, EUR 500 million of exits. Multiple on real estate achieved has been 1.6x. That's at asset level, unlevered and those exits are mainly residential and light industrial. As far as private credit is concerned here, clearly, very strong increase. Realization have reached a record that's almost EUR 2.7 billion. As far as direct lending and corporate lending are concerned, those are repayments. The average MOIC reached has been 1.4. As far as our specials business is concerned here, we've been exiting several positions as well at our initiative, achieving a gross MOIC of 1.6x. I want to insist on that because clearly, in '25, I think that the global macro environment as far as exit is concerned, has been challenging. In that context, we've been able to deliver EUR 4 billion of exits. So we are sending back money to our LP. we are increasing the DPI, which is key. We are increasing the performance and all the average gross MOIC that have been realized on all of our exits are clearly either in line or above our fund expectation. Fundraising. So here again, we've been mentioning EUR 10.5 billion of gross inflows, record year. As far as net inflows is concerned, that's EUR 8 billion of net inflows, so a 13% increase during the year. Looking at this fundraising a little bit more in detail. You can see that as far as private equity is concerned, we've reached EUR 2 billion. I'll come back on that. Notably, those inflows have been driven by the cybersecurity final close, regenerative agriculture as well. Our specialist fund being decarbonization fund #2, aerospace and defense fund #2 have been benefiting obviously from strong inflows in the current environment. As far as real estate is concerned here, it's a performance of EUR 1.3 billion of net inflows, focusing on value-add and Core and Core+. This is including the previous transaction I was mentioning, notably residential in France, the one in the Netherlands as well. Strong contribution from credit, EUR 4.4 billion, stable versus last year. As we just announced a few days ago, we've been closing our credit secondary fund #2, $1 billion, which is almost double the size versus previous vintage. As far as direct lending, vintage #6 is concerned, which is still open as we speak, we are close to EUR 5 billion. And here, we have secured the 2 largest individual LP commitments in our history from Germany and in U.S. Demand as far as direct lending is concerned, remained quite strong. So as you can see over here, diversified strategy, larger tickets, co-investment, client conviction, bringing us into this record EUR 8 billion for the year '25. So just a snapshot here on where we stand on our flagship. So I was mentioning special opportunity fund number -- vintage # 3, EUR 1.2 billion, which is almost the double versus the previous vintage. Credit secondary, $1 billion. As far as private equity is concerned, regenerative agriculture, vintage #1, EUR 600 million; cybersecurity fourth vintage, almost doubling the size versus the previous vintage. As far as '26 is concerned, lots of ongoing fundraising as we speak. Obviously, direct lending #6 still open as we speak and benefiting from strong inflows. This year will be as well a strong year as far as private equity is concerned, we are still open during all the year, Aerospace and defense fund #2 and decarbonization fund #2. So you have here on the screen the evolution of our AUM during the year. So it started at end December '24 at EUR 49 billion, ending at EUR 52.8 billion. Different movements of the year have been impacted by the inflows I was mentioning, EUR 8 billion and the distribution standing at EUR 4.1 billion. You have on the right side of the page, the diversified and complementary asset class, the split by business unit. Client base, as far as client base is concerned, one important feature, Mathieu was mentioning the number of offices we are operating, namely 17 offices as we speak. Important to notice that as far as inflows are concerned, that's more than 80% of net new money that has been raised from international clients. You have here the biggest contributors for the year '25 being U.S. investors, U.K., Spain, Germany. To be noticed during the year '25, strong contribution from Asia, namely from Korea and Japan. Korea has gone over the EUR 2 billion mark for the year '25. Contribution as well from Israel, where we are approaching the EUR 2 billion mark as far as the LP commitments are concerned. So those are the most represented nationalities in '25. On the right part of the page, you do have actually the split, which means that international clients have increased from 44% '24 to 46%. So that's a 13% increase, representing EUR 24 billion at end of '25. Private market is an important feature. We've been focusing significantly over the past year over the strong growth, era of growth. That has been the case as well for '25. That's 25% of third-party inflows that were raised through private clients. That's actually notably all the initiatives we've been launching on private debt, private credit, unit-linked products have now reached more than EUR 1.5 billion at end of December. As far as AUM are concerned, that means private customer clients are now representing more than 34% of our AUM. That's actually more than EUR 18 billion. Two dedicated initiatives that have been launched during the year '25, one on private credit, namely TEPC, European private credit, semi-liquid fund, focusing on midsized European company. And second important initiative that was launched during the summer, which is a unit-linked dedicated to defense, security, aerospace. This unit linked is currently distributed through partnership that we're having with big insurance company. We are currently sending over EUR 200 million for this product, which -- where the distribution has started end of '25, focusing on our aerospace and defense practice and notably the track record that we are benefiting on that practice, aerospace and defense practice that was launched back in 2018. Last point on sustainability. A few years ago, we had set a target on AUM dedicated to climate and biodiversity. Our target was to achieve at least EUR 5 billion of AUM dedicated to that practice. End of '25, we are standing at EUR 5.8 billion, notably thanks to our decarbonization practice, Fund #2. So that means continued sustainability integration across the several pillars that we are benefiting through the WL platform. I will now leave the floor to Vincent for the financial review. Thanks. Vincent Picot: Thank you, Henri. So I'll start the financial highlights with our fee-paying AUM and the revenue generation in terms of revenues. So first, fee paying AUM grew by 6% compared to 2024. It was driven by net money on our private equity practice, capital markets and also by a very dynamic fundraising and deployment activity for direct lending and CLO business. In addition, it's worth mentioning that future fee-paying AUM grew by 24%, and it was supported by solid net money in direct lending strategies. We charge management fees on invested capital. So together, fee-paying AUM and future fee-paying AUM increased by 8% year-on-year. So that's a sign of securing future management fee generation. Also and the impact it has on management fees is that management fees increased by 8%, reaching EUR 358 million. That's an acceleration that we have noticed specifically in H2. Average revenue margin stood at 88 bps, which remains resilient. And worth noting that we record a clear performance-related earnings level of EUR 22 million, which is a record. On the following slide, a few data points on performance-related earnings. So at end 2025, AUM eligible to carried interest grew by 10% to EUR 24.8 billion. In addition, at end September 2025, we had EUR 220 million of annualized performance-related revenues, which are actually accrued at fund level and such level is based on the current performance at portfolio level. This amount is not crystallized yet. It is not yet accounted for in our P&L, and it will be recognized as funds approach maturity. In terms of asset management profitability and as Mathieu mentioned, we grew our asset management EBIT by 18% year-over-year, reaching for the first time EUR 150 million. This growth reflects specifically the increase in the core fee-related earnings with a notable acceleration in H2. This is mostly due to an increase in management fees in this period. Overall, Core fee-related earnings increased to 41% in terms of margin, exceeding so for the first time, the 40%, and it reached exactly 46% in H2. Overall and looking now at the cost base, we remained very disciplined because the operating cost base only grew by a mere 3% year-over-year. So that's a testament of an efficient resource allocation. Moving now to our investment portfolio. So at end 2025, the total fair value reached EUR 4.4 billion, very -- and still very granular with a bit more than 300 investments. Approximately EUR 3 billion of this amount is invested in our own management strategies. So it ensures an alignment of interest with our client investors. The remainder of this amount, EUR 1.3 billion is invested in our direct investment ecosystem. As you can see on the right-hand side, we've got a pretty well diversified portfolio in terms of asset classes. Now looking at the flows and what happened over the year, investments reached EUR 1.3 billion, of which EUR 951 million of capital calls in our own strategies, CLO, credit secondaries, private equity strategies mostly, but we also invested EUR 370 million in our ecosystem, and it was mostly driven last year by our investment in Schroders. 2025, so we carried out close to EUR 800 million of exits. Returns of capital were from various asset classes, CLOs, special opportunities, but also decarbonization and aerospace strategies that Henri mentioned when talking about distributions to our LPs. Market effects, minus EUR 18 million, reflecting mixed effects, positive fair value changes for our Schroders stake, also positive regulations in some of our private equity strategies, mostly aerospace and defense and also decarbonization, but it was offset by negative market effects in some very specific credit and real estate situations. And finally, currency effects amounted to minus EUR 161 million, and it's mostly linked to the sterling euro exchange rate. Slide 20 -- next slide. So in terms of portfolio revenues. So in 2025, portfolio revenues reached EUR 166 million. That compares to EUR 207 million in 2024. But as mentioned also by Mathieu, realized revenues actually grew very significantly by 19% year-over-year, reaching EUR 239 million. So that's worth highlighting. It's composed primarily of coupon, dividend and distribution from our whole spectrum of credit strategies, listed REITs and also ecosystem investments. As regards unrealized revenue of minus EUR 73 million, we've got a P&L impact of foreign exchange for minus EUR 52 million, mostly linked to the euro-sterling exchange rate. And as I explained in the slide earlier, also around minus EUR 20 million of unrealized negative changes in fair value. So excluding currency effects, our portfolio revenues grew by 33% year-over-year. If I have to wrap up our 2025 financial performance, strong performance in our asset management platform, as explained on the asset management EBIT growth. It was offset to some extent by currency effects and also by unrealized fair value changes on our investment portfolio. Looking now in a bit more detail, nonrecurring items and other of EUR 13 million. It's mostly linked to positive ForEx impacts on our U.S. financings. Tax expenses, EUR 51 million in 2025, in line with our net result before tax and a tax rate of around 25%. So overall, our net result group share amounts to EUR 136 million. And if we exclude main currency effects, our net result grew by 51% year-over-year. In terms of balance sheet metrics, our model is strong, supported by means of EUR 3.1 billion of shareholders' equity group share and also by short-term financial resources of EUR 1.2 billion. As regard our financial debt, which stood at EUR 1.9 billion, it encompasses a EUR 500 million new bond issue, a renewed and upsized RCF line of EUR 1.15 billion. And at end of December 2025, we had drawn EUR 150 million of our revolving credit facility. And as of today, we have fully reimbursed our RCF. In terms of -- so based on this -- so building on what I disclosed and building on our 2025 performance, we're also pleased to formulate a new 2026 vision that is disclosed on the screen. We will be laser focused on reaching an AUM of at least EUR 60 billion by end 2026, reaching FRE between EUR 175 million and EUR 225 million and the net result group share between EUR 420 million and EUR 520 million, excluding ForEx effects. Worth noting that approximately EUR 180 million of net result comes from the full disposal of our stake in Schroders that happened earlier this year. And also, we also disclosed a return on equity between 13% and 16%. So all those metrics show improvement compared to 2025 and are above market expectations. 2026 has to be seen as a step in our journey towards a long-term profitable growth that will be disclosed and presented just after. And we will be providing, of course, more details on our targets later this morning. Thank you very much for your attention. I will let Antoine for the concluding remarks. Theodora XU: Thank you, gentlemen, for this very thorough presentation. We'll now open the floor to questions. [Operator Instructions] And we will address in priority questions from the room, obviously, and also take questions from the webcast. So one question from Sharath Kumar from Deutsche Bank. Sharath Ramanathan: Very impressive presentation. So congratulations. I have 2 questions, if that is okay. So first one is while I totally understand your investment story, but I think it will be much simpler with an asset-light business, although I kind of understand where you're coming from in terms of your balance sheet, funding your strategies. But ultimately, I think it is very hard to deny that this has been hugely dilutive to your valuation. So has there been discussions to eye off the investment activity outside the listed entity so that it can improve your valuation? So that is the first one. And I want to come back to the usual topic on your share price valuation, low free float. A couple of years ago is when you disclosed your 2026 targets, at least on the asset management side, you have been mostly on track, while on the investment activity side, is there, I think consensus is widely divergent from your targets. Just been a very painful wait for the sector to rerate and you have not been alone in that. So -- but when it comes to increasing the free float, what is the latest update that you can give you? I know it's been a chicken and egg situation for the valuation to increase or the free float to increase, but what is the latest update that we can? Antoine Flamarion: Thank you for your question. That's a usual relevant question we had on balance sheet and asset light. As you all know, we started the firm just as an investment company in 2004. In 2007, we launched the asset management. So our asset management is 19 years old. We are celebrating next year our 20-year anniversary for the asset management. So we decided from day 1 that having a balance sheet will help fuel grow the asset management. And as we discuss a little bit later during our strategic update, we'll be more precise into that. But the truth is that we've been using the balance sheet to seed sponsor new initiative. Without the balance sheet, it would have been impossible to launch CLO in 2012, direct lending in 2009, decarb in 2018, aerospace and defense in 2020. Needless to say that nobody will even answer our phone. So we used the balance sheet to seed sponsor that. As a result, we have this balance sheet, a EUR 5 billion balance sheet and now a EUR 53 billion AUM business. We are clearly unhappy with the valuation. The sum of the part is miles away of what we should be. So clearly, we don't get the credit of having both the balance sheet and the asset management. For all of you who are very familiar, you just saw the latest M&A transaction announced, which is the Coller purchase for EUR 3.2 billion. Coller is making EUR 145 million of EBIT, let's say. So we just announced EUR 150 million. So that tells you more or less the valuation we should get on the asset management. And on top of that, we've got EUR 3.1 billion of equity. So we've been growing the firm using the balance sheet to seed sponsor, launch new initiative. As we enter now a new chapter, and we'll discuss that during the strategic update, we are committing less amounts to our funds. We don't really need now to seed sponsor with large amount of money. And as you see for the first year in 2015, the commitment we had in our fund declined. So we started the year with EUR 1.6 billion of commitment in our fund. At the end of the year, it's EUR 1.3 billion. So that's telling you that we don't really need as much capital as we needed before. So moving forward, we'll have really the 2 businesses, the principal investing, which will still remain invested in our funds. Skin in the game is critical for us. And we have the asset management business, which is now profitable. When we leased the firm, if you remember, we are making EUR 4 million EBIT, so no profitability at all. In 9 years, we grew from EUR 4 million to EUR 150 million. As you saw on the 2026 guidance and vision, we are targeting between EUR 175 million and EUR 225 million of FRE. So now asset management is profitable. The balance sheet, we think, is really back on track to be profitable. Vincent mentioned, for instance, Schroders, we will detail that, but Schroders has been a 64% IRR and a EUR 240 million net income. So that's why we are highly confident on the 2026 net income. So it's a very long answer to your question. People have very clear view on asset-light versus non-asset-light. Blackstone is really asset light. KKR is not asset-light. KKR is not compounding at a strong pace, the balance sheet. And at the end of the day, for the shareholder, I think what matters the most is the net income and to increase the net income, having the 2 engine, the balance sheet and the asset management will probably lead into more net income, more dividend and share price appreciation at the end. Theodora XU: Thank you. Two more questions in the room from Arnaud Palliez from CIC. Arnaud Palliez: Two questions related to currency impact. The first one is, can you give us the breakdown of your AUM by currency in order to forecast what could be currency impact on these assets? Then do you intend to put in place any hedging policy? I think all your debt is in euro. So do you intend also on the liability side to have a diversification by currencies? And the last one is regarding the net profit guidance for 2026. Is it at constant currency? Or do you make any assumption at this level? Vincent Picot: Okay. Thank you for your question. So as regards assets under management and the part of the share in foreign currency, so it's about 10% and mostly in U.S. dollars. We're exposed to the U.S. dollars around and through our U.S. CLO and private debt strategies mostly. As regard to your question around hedging, so we've got a hybrid approach at Tikehau. Like other actors in the sector, we have decided to put in place a natural hedging with financing in dollars. So it's $180 million private placement put in place in 2022. And we also put in place some forward contracts on some sterling on our sterling exposure to some extent. So we've got this hybrid approach using these options at our hand. And regarding your last question around our 2026 guidance in terms of net results, which we mentioned is between EUR 420 million to EUR 550 million. We mentioned very specifically that it's excluding foreign impacts. So basically at constant currency December 2025. Antoine Flamarion: And what we'll do moving forward when it comes to currency, when we have been issuing bonds, we've been initially only raising money denominated in euro. A few years ago, 3 years ago, we raised for the first time a USPP, dollar-denominated. So moving forward, we will probably match our non-European currency exposure, matching with the right liabilities, so probably issuing more USPP rather than euro if we need. We consider that it's probably the best way to hedge having a proper asset and liability match. It costs less money. It's much more efficient. And this hedging currency are always complex because you can hedge the amount of money you invest. So let's say you invest $100 million, GBP 100 million, you hedge that. But if you end up making 3x multiple having just the nominal hedge, your capital gain is not hedged. So we think that moving forward, we're going to issue more in other currency, if I may say. Theodora XU: One question from Nicolas Vaysselier from Exane BNP. Nicolas Vaysselier: The first one is on Schroders. I mean, you have a big windfall coming your way. That's a great problem to have, right? I'd like to know how you think about reallocating those proceeds between reinvestments or potentially payout to shareholders through share buybacks, exceptional dividends? Second question on your 2026 new FRE guidance. I'd like you to help us understand a bit how we bridge from where we are in '25 to get to the bottom end or even the top end of this guidance. So I'm wondering if you bake in some lumpier items like catch-up fees that you're expecting for this year, expecting some recovery at Sofidy in the subscription fees because they are meaningfully accretive to the margin. And what you expect in terms of evolution of the cost base next year? And then finally, my third question, you mentioned some negative mark-to-market effects on the credit portfolio. We've seen some of your peers actually suffering quite a bit. So I'm interested in any comments about your credit portfolio, balance sheet exposure, how it's performing and on the equity CLOs notably. Antoine Flamarion: Thank you for your question. Maybe I take the first 2 one. On reallocation or reinvestment, as mentioned before, we still have EUR 1.3 billion of commitment into our funds. So first of all, for instance, the Schroders proceeds is close to EUR 600 million. As Vincent mentioned, we are going to -- we reimburse already our RCF, which was EUR 150 million drawn. So that means that we have excess cash on the balance sheet. We're going to probably use that for our capital call, EUR 1.3 billion. Also it's over the next few years. So it takes time. We're going to continue to invest the balance sheet alongside our strategies. So we have commitment in our funds, but the balance sheet is now doing 2 things, co-investing within our strategy. So I suspect we're going to probably deploy more money into aerospace and defense, where we are clearly ahead of the curve. Same thing for decarb. And we start seeing more and more credit opportunities as the cycle is becoming more complex. You probably read a few days ago that we closed our secondary -- second vintage of private debt above EUR 1 billion, so twice the previous vintage. We are the only firm having such track record when it comes to secondary private debt. So I suspect that we're going to allocate the balance sheet more into secondary private credit. Maybe I start on the -- your question on 2026, and I will let Henri comment. So we have 4 metrics in our 2026. One is our return on equity between 13% and 16%, which is mid-teen double digit, as mentioned before. We are fairly convinced that we should reach between EUR 420 million and EUR 520 million of net income for 2026. Part of that is obviously the Schroders disposal. And as disclosed in the market, we decided to sell in the market our stake rather than waiting the end of the offer, which could happen in Q4, but could happen maybe in Q1 2027. You never know. So we are fairly convinced that we're going to reach this level of net income and as a consequence, this return on equity. Your question specifically on catch-up fees and FRE we have several vintage of private equity currently raised, namely AAP2, which is aerospace and defense and decarb 2. There is potentially a very large amount of catch-up fees as stated in the bylaws. So within this range of EUR 175 million to EUR 225 million, there is some amount of catch-up fees, and we are fairly convinced of -- when we look at our pipeline right now coming from LP, there is a very strong demand, obviously, for aerospace and defense, and there is still many European appetite for decarb. Henri Marcoux: Yes. Maybe in summary on that, there are many 3 drivers on that. First of all, you may have seen that future fee paying have been increasing significantly end of '25. So all these future fee paying will obviously be transformed into fee-paying when we will be deploying these funds. So this is the first driver for our evolution of fee-related earnings in '26. Second one is a mix effect. Obviously, as just described on the pipeline within our funds, we are now on the road investing and fundraising on our 2 big platform PE funds, namely decarbonization Fund #2, aerospace and defense Fund #2. Yes, there will be catch-up fees. But namely out of the -- maybe excluding even the catch-up fees, there's a mix effect with these 2 private equity funds and the track record we have benefiting on these 2 area. And maybe the third driver to increase effectively the FRE in '26 is obviously cost control. We started to be more -- to take carefully more of the issue around cost already back in '25, and we will be keeping in that area for '26. Mathieu Chabran: No, I just want to address the third question on private credit. I mean, I wish we had 2 hours to discuss private credit since so many things have been written over the past few weeks or a few months. But more specifically, we happen to have our CLO business within private credit. So just to answer specifically on the U.S. side beyond the ForEx that Vincent elaborated on, obviously, last year was a volatile year. And as you know, the CLOs or some arbitrage vehicle with some liabilities issued and that can be reset. And so what we had last year was effectively on this specific part, some kind of a lag between the end of September, end of December valuation at the asset side and the reset on the refinancing. So we're expecting to catch up on this side when we reprice and reset the CLO. Now more specifically on the private credit, I think there are as Antoine said, that's a big opportunity for secondary private debt, but we've never been as bullish on the opportunities to keep deploying with the same underwriting discipline when it comes to direct lending. The issue we've been facing, there are 2 comments. One is cyclical. The other is structural. On the cyclical aspect, what we've experienced partly in the U.S. is this massive growth and fundraise on credit where many managers and not being judgmental whatsoever have started to have to deploy resilient raise. And as you know, when some of our competitors raise $50 billion a quarter, it takes some time to keep the same discipline underwriting. We're still, I think -- and our partner, Cecile is in the room, I think we have 5% to 7% selection rate on our private credit deployment. So that has been driven effectively a lot of talk around the direct lending. The other thing that in the U.S., the bulk of all the noise you've been hearing was coming from the U.S. You've got the mid-market direct lending, which is on average, 6 to 7x now level. In Europe, it's more like 5 to 5.5. Our portfolio is 4.4. So as always, with credit, because the only thing you're getting is par, it's how do you underwrite and how do you structure going in. So it's a much more defensive portfolio that we've been having, and we just closed the sixth vintage of our strategy. We started in 2007. So it's a 19 years track record when, as I'm sure you know, 92% of the private credit managers were launched post GFC. So I think that here, it's important to -- I mean, we have our share of situation of negative watch where we're working. A lot of the cyclical aspect is effectively all the credits that were originated in 2021, the 0 interest rate environment, the Central Bank very accommodating policy and when people -- you had a base rate at 0 and spreads at 300, obviously, fast forward 5 years and you got a base rate at 4 or 5 and the spreads may be at 4 or 5, obviously, your cost of refinancing is much higher, and then you have to effectively recapitalize part of them. Now the silver lining, as Antoine alluded to, is that we're entering the golden age of the secondary private credit, and we are best positioned to tackle that. Theodora XU: Well, thank you so much. I'm sorry, I'm conscious of time. We'll address more questions later on during the second Q&A session. So let's take a short break. We'll resume in 10 minutes. Thank you very much. [Break] Theodora XU: Welcome back, everyone. So before moving into the strategic update, we would like to take a few moments to step back and revisit who we are and how we have built our platform. So we're going to show you a short video that retraces our journey, highlighting the evolution of our platform and the areas of expertise that position us as a differentiated asset management. Let's watch. [Presentation] Theodora XU: We hope you enjoy this video that really captures our journey. So today is not only about looking back, it's about what our platform is capable of delivering. We would like you to leave today's session with 3 key messages. First, we're exiting our build-out phase in asset management to move into a harvesting phase with accelerating profitability. Second, we're entering a new phase characterized by a greater strategic allocation of our balance sheet. It has been used since IPO as a great growth enabler. And now looking ahead, it will be used as a more strategic allocator. Finally, as Antoine mentioned a bit earlier, those 2 distinct and complementary growth engines will offer significant optionality for us to close the valuation gap and also maximize value creation for our shareholders. Aligned with our '26-'29 road map, we'll be focused on delivering the following objectives. First, deliver cumulative net inflows of over EUR 34 billion, representing a 22% growth compared to the EUR 28 billion we have raised over the last fundraising cycle. This is first one. And the second one is that we aim to generate core fee-related earnings margin of between 45% and 50% by 2029 compared to 41% achieved in '25. On top of those objectives, we have formulated 2 commitments. Those are to maintain our investment-grade rating and continue to distribute over 80% of our asset management EBIT to our shareholders. So now let's start with the first section of this new chapter. And please join me in welcoming on stage Thomas Friedberger to share his perspective on opportunities shaping the next decade. Thomas Friedberger: Thank you. Theodora XU: So Thomas, first question for you, and thank you for being here with us today. What would you characterize -- how, sorry, would you characterize the evolution of global markets today? And what do you see as the most impactful trend shaping the industry today? Thomas Friedberger: Thank you, Teo. So if we look at the size of the private markets, they were estimated at $26 trillion in 2022. They are expected to grow at $61 trillion in 2032. Those are not small numbers. It's approximately 50% of the current global GDP. And if you want to compare that to other markets, let's say, you have a global market cap today in listed equities of $140 trillion. So this number of $61 trillion expected in a couple of years is not small at all. It means that the private markets are converging with liquid markets and the convergence doesn't stop there. Let me take the example of private credit. Private credit has converged in size with the high-yield corporate bond market and with the leveraged loan market, both in the U.S. and in Europe. That's done already. As a consequence, the fixed income markets are more and more integrated with private credit spreading to investment grade to asset-backed lending. And this will offer a full range of new options to issuers going forward. We also think that, by the way, having a strong expertise in liquid credit through our capital market strategies is a strong advantage in that perspective of convergence. I would also say that in a complex world where uncertainty, volatility, dispersion are increasing, where asset allocators need to deploy large amounts of capital on the back of a strong growth in savings, the one-stop shop model is appealing. Why? Because platforms benefit from clear processes, from clear risk management methodologies, compliance, conflict of interest management, better client servicing, better reporting capabilities. Platforms also are able to source larger transactions, allowing co-investors to deploy large amounts of capital quickly. And they also can afford the multi-local approach, which we think is absolutely essential in the generation of performance. So the message here is that the convergence between public markets and private markets creates value. It creates value for companies and issuers. The increase in size -- in deal size in private equity and private debt provide more options for companies issuing debt. They can allow company to be taken private, for example, or to remain private for longer. It also creates value for LPs. We said that it's allowing asset allocators, large asset allocators to deploy large amounts of capital in private markets. It also gives access to private markets for private investors, which is kind of new. And also, it will bring the best practice of liquid markets to the private markets in terms of conflict of interest management, reporting and risk management. So all of that is positive. Theodora XU: Thank you, Thomas, for those very interesting insights. We've seen increasing sophistication, sorry, in private markets. What investor behavior shifts are most material? And what capabilities must managers build to truly differentiate and capture growth? Thomas Friedberger: So if I start with the institutional world, we noticed a sharp increase in demand for co-investments, for SMAs, for bespoke solutions. And that requires from us robust origination capabilities. I mean, capability to originate locally but at scale, which is the challenge. Also solid fund structuring and tailor-made solution to address all the specific demand from all over the world and also robust processes in terms of allocation, valuations, reporting. So that's on the institutional side. And so hence, the importance of the strength of the platform. If I now go to the democratization of private assets, so addressing private investors, it requires from us global distribution channels, so the necessity to talk to a large number of distributors or global distributors all around the world and also digitalization to deliver data-driven client experience and reporting, which we are addressing partially through our Opale platform. Theodora XU: So as we look to the future now, what structural themes do you see defining the next decade? And where do you see the most compelling opportunities emerging? Thomas Friedberger: So complex question to answer in a couple of minutes, but I'll try to do my best. We -- so there will be growth in 2026, 2027. But we think we have the conviction that this growth is going to be led by investments more than consumption. So CapEx-led growth, meaning that growth will be probably more concentrated on the sectors that are the priorities of the government. So the famous 4 Ds of McKinsey, Decarbonation, Defense, Digitalization, Deglobalization. We think that the growth will be concentrated with the companies able to enable this to happen. So the sellers of picks and shovels of the resilience, if you will. So aerospace and defense, energy transition, cybersecurity are among those sectors, and that's the reason why we are focusing on them. But let me also consider deglobalization. There is a need in Europe to create European champions also at the SME level. And that is addressed through direct lending because private equity players use 3x more direct lending than capital markets or leverage loans to finance those transactions. And so we think there is a strong opportunity also in European direct lending to build those European champions. Number two, we think that the economic value creation is in the world is switching from efficiency to resilience and resilience has a cost. The cost of producing closer to the consumer, the cost of getting insurance against climate risk, against cyber risk; the cost of operating with higher equity buffers and less debt to cope with COVID-like situations; the cost of having more robust supply chains. So we expect lower growth in the world with high growth concentrated on the sectors I mentioned. It will also probably change the way to invest in private equity. Companies are becoming more asset heavy than before. Even in the tech sector, you look at some companies now own data centers. They were asset-light before their own data centers. Some of them are now building their own electricity production capabilities to feed those data centers. So it will be more asset heavy and probably that the way to invest in private equity will switch towards more what Warren Buffett was doing, which is invest in more asset-heavy sectors, looking more at return on invested capital. And it will not be easy because the best CapEx are done by the best management teams, but you can expect a lot of misallocation of capital also when there is a lot of CapEx in the sector. So probably less reliance on multiple expansion and the investors will need to use less leverage. And if you look at what we've been doing for the last 15 years at Tikehau, it's exactly that. We've invested in sectors that are more asset heavy, aerospace and defense, for example, with less leverage than the average. Third theme is we are entering into a war economy, which doesn't mean hopefully that we will go to war, but which means that all economic agents are put at the service of the priorities of a given government. And that means probably accommodative monetary policies going forward, starting probably in May in the U.S., but also massive fiscal expansion, which means probably lower short-term interest rates and higher long-term interest rates, so steeper yield curve, which is good for banks, which drives the strong conviction that we've been having at Tikehau for years, saying that we prefer credit risk to duration risk. And so from that perspective, we think that direct lending, which is 100% floating rate is very well adapted to this environment, but also, for example, short duration credit in our credit capital markets activities. And last but not least, we think there is a strong opportunity in Europe because Europe is accumulating accommodative monetary policy, massive fiscal expansion in Germany, which will have consequences all over Europe, lower valuations compared to the U.S., lower levels of leverage in the corporate world and the end of the deleveraging of Southern European banks, which probably provides appetite to finance the economy from those banks, not only in Southern Europe, but in the whole of Europe. So a very benign investment environment despite all the European bashing that we see. And so with the condition of being disciplined, there is a very strong opportunity in Europe, where we deploy 80% of our AUMs right now. Theodora XU: Very insightful. Thank you, Thomas. Last question. In that context, what are the implications for our different asset classes if we go through each of our strategies? And what aspects of our value proposition best position us to capture these opportunities? Thomas Friedberger: So of course, I mean, it will be all about performance. Performance will drive fundraising. So performance will be key. And for that, we will continue to rely on, one, local sourcing, which is absolutely essential to the generation of performance, but also in terms of risk management, addressing tricky situations locally. Strong corporate culture of alignment of interest and as such, strong investment discipline, which we think we have by DNA and also partnerships to benefit from superior expertise and avoid crowded areas, partnership with corporates, partnership with partners in regions where we are less developed with why not other asset managers. So that's the create, don't compete angle of what we do. Now in terms of opportunities, there are a lot. I will regroup them in 3 categories: growth, value and niches. So in terms of growth, as I said, in private equity, the solution providers through the sovereignty, through the resilience will continue to experience strong growth in a world that will grow at a slower pace. So Aerospace & Defense and decarbonation are 2 strong convictions, and we are really confident there that by allocating our capital well, we can generate a lot of value for investors. In liquid strategies, we are very excited by anything related to the building of European sovereignty, which is a theme which is connected to what I just said on private equity. And on European direct lending, of course, this opportunity to build European champions in the credit space that is growing and is going also more towards larger cap financing with the condition, of course, to have the right allocation geographically and by sector is also a strong growth opportunity. Now value, value being benefiting from low valuations, but also liquidity gaps. We think that here, real estate is the obvious candidate, both in equity and financing, very strong opportunity in real estate with depressed valuations and volumes that are starting to pick up. Private debt secondary is also addressing this opportunity, buying LP interest or GP and LP interest at a discount, being selective is a strong opportunity. Special situations, which we define as financing good companies or good assets with a bad capital structure, so having a problem at a certain moment of their development. There is a lot of things to do in Europe. And with regards to niches, I would mention financial subordinated bonds. Those 3 yield curves will continue to favor banks. It's very European-centric opportunity, but we have a very strong expertise there in capital markets. Asia credit is also something that we want to be involved in. We launched a fund recently, and we think it will be a high-growth area in the coming decades. Theodora XU: Okay. Very interesting discussion. Thank you, Thomas, for your time. Well, to explore these themes further, we'll now be joined on stage by our 2 co-founders and Maxime Laurent-Bellue, our Deputy CEO, for a fireside chat on accelerating growth across asset management. Thank you, Thomas. Maxime Laurent-Bellue: Good morning, everyone. Thanks for being here today. It's a real pleasure for me to have this chat with our 2 co-founders gathered in the same place, which is not every day. Today, we will talk about the firm. We'll talk about the industry. We'll talk about the perspective. I want to talk -- I want to start with Antoine maybe -- and I know -- CEO said that we would not do too much history, and we'd rather look forward, but just a quick question to start. It's been a 20 years-plus entrepreneurial journey, which was quite incredible. And I must say I took part of -- a decent part of it, probably around 19 years today and I've seen the firm changing, improving, growing from the startup I joined in '07 to global asset management and investment company with 17 offices globally. So obviously, a lot has happened, and Antoine, in your own words, I'd like to understand what are the sort of key strengths or the key defining features that have been shaping or positioning? Antoine Flamarion: Thank you, Max. Let's try to capture the secret sauce. The truth is that as all of you know there is no secret sauce, it is a lot of conviction, ambition entrepreneurship, innovation and may be I start with that, we are entrepreneurs, as Max said, as Teo said, the plan is to look forward for the next 20 years. But the truth is that we started, as you know, with EUR 4 million as real entrepreneurs. And the journey has been colorful, complex. There is not a single day when you have (sic) [ haven't ] something new coming up, someone resigning, someone you're trying to hire, a deal going not in the right direction, a financing not in place at the right time, a historical shareholder willing to sell shares. So that's what's happening all the time. But because we are entrepreneurs, and I think a lot of people at the firm became entrepreneurs, maybe some in a different manner. But everybody is putting a lot of energy to make sure we keep the drive, we keep the energy and we innovate all the time. Financial industry is boring. As I keep saying, we used to have banks, insurance company. Now one of the largest European financial institution is probably Revolut, if you look at least on the valuation, $75 billion. Now the banks are trading up, and you've got several banks above $100 billion market cap. But this is what's happening. Revolut was nowhere, now it's $75 billion. Everybody wants to make sure that they put their funds on the Revolut platform. As Thomas mentioned, we create our own digital platform called Opale. It's been a record year last year. So we sell Tikehau funds and other GP on the platform. It's a greenfield. We've started with 0. Hopefully, in a few years, it's going to be several billions. And we started that again from scratch. So part of the secret sauce has been innovation. And you can innovate in this boring industry either on the way you raise money or the way you invest. We discussed earlier, Mathieu mentioned secondary private credit. We've been the first firm to launch secondary private credit in 2020 in the U.S. Secondary private equity was everywhere, but secondary private credit was really new. Now we raised our second vintage. We are accelerating on this front. And we've been doing that all the time. When we launched direct lending in 2009 in Europe, it was popular and well known in the U.S., but nobody was doing that in Europe. Defense is a very good example. And I think there were a question online we did not answer earlier about the deal flow when it comes to Aerospace & Defense. It's multibillions coming, and we launched that in 2020. So I think part of the journey, and I don't know if it's the success or not, but we've been innovating all the time. We're going to keep innovating. And you can innovate, as I said, on the asset or the liability side. When you partner with corporation, nobody in the industry has been partnering with corporation. When it comes to Aerospace & Defense, you know our partners, Airbus, Dassault, Thales, Safran, they put money, they sit on some of the committee. They help us analyze some of the company. And as a result, since 2020, we own 35 companies in the sector. We exited already 3 of them, reaching on average 2.7x multiple. You partner with these guys, you're probably ahead of the curve. When you launch decarb with Total and we launched already the second generation, again, you partner with Total that gives you an edge of understanding the sector, the trend. Does it make sense to look at hydrogen? Yes, no. Battery storage? Yes, no. And we've been doing that all the time. Max has been part of the team, who a few years ago, start investing and financing data center. We've done that a while ago. We sold one in the Netherlands in December. Because we are born in France, everybody know Mistral, the French AI company. We've been the one financing their data center. And I think it's been all the time for more than 20 years. So we're going to continue to innovate. Hopefully, that will generate more businesses. We will create more partnership with financial institution, with corporation. And it's a very long answer because as I said, there is no secret sauce. We are entrepreneur. We innovate. We keep the same pace. As some of you know, we put a lot of energy, we being the 715 employees are putting a lot of energy to make sure we make things happening. And that's going to be the same thing. But if you look now for the next 20 years, now we have 17 offices, a very strong platform, a very talented pool of people, and we see a big acceleration coming. Maxime Laurent-Bellue: And so it's interesting because innovation and partnerships have been at the foundation of our journey and sort of interconnected together. Should we expect obviously more innovation and more partnership? Antoine Flamarion: Yes. I think it's we've been -- I don't know if it's good, but we always find, Thomas mentioned, niche, a very specific thing because when we launched Decarb, it was a niche in Europe, frankly. When we launched Aerospace & Defense, now it's super popular, but it was not even a niche. It was -- nobody wanted to touch that. And I think we are looking all the time at what's happening in the financial service industry, and we look at traditional asset manager, Schroders is a good example. We look at alternative asset manager. We look at insurance company. We look at digital company. And you could expect more innovation, more partnership because that's how we build the firm. And I think now the partnership we can achieve are probably much bigger in terms of size than what we've done before. Maxime Laurent-Bellue: Thanks, Antoine. Mathieu, I'd like to move on the more the industry. In the same period of time, obviously, the industry has transformed rapidly tremendously. Thomas touched on the growth of the market, how the market and participants have been increasingly sophisticated, more players coming in, more competition, I guess, more strategies. So it's in constant movement. I'm not even mentioning the backdrop, which is obviously quite complex right now with geopolitics, tax and so on and so on. But how do we prepare for the next growth phase of the firm in that context? And how do we define our approach in this fast-moving environment and fast-transforming industry? It is a long question, sorry? Mathieu Chabran: It's a great question. First of all, congratulations for coping 19 years with us. I must say I did not realize, but that certainly illustrates that it's an entrepreneurial and it's a people business journey. But I mean, think about where we started and what -- when you joined us in 2007, what the -- I don't even think that alternative asset management was defined as a term. We barely talked about private credit that really was born on the ashes of the GFC, I mean, certainly in Europe. We were still very much in the GPLP world. I mean, if you look at the -- we were born in Europe, as Antoine said, not to mention France. And the market was extremely defined. It was the GPLP, you were doing mid-market European buyout. We were barely talking about private credit, as I said. You had some real estate managers for sure, but even real estate was not really perceived as, I think, an alternative asset class. That was probably certainly in Europe, the most advanced and most developed asset class that was -- that people could address and not to mention infrastructure, et cetera. Fast forward 2026, the name of the game every day, you read in the press, you see in the media are these juggernaut platforms. I mean, I can name them because they've been modeled in our development, the Blackstones, the Apollos, the KKRs managing more than $1 trillion. I mean we like to use this anecdote with Antoine. When we started in 2004, TKO with EUR 4 million of assets under management, Blackstone was managing $40 billion. And he was sitting at Goldman Sachs. I was at Merrill Lynch over there, and we were like, well, $40 billion. Fast forward today, it's $1.5 trillion, $1.6 trillion, the getting or something, and it's only starting. So this transformation of the industry which has accelerated over the past 5 years, it's complicated to date that. But you see that there is this massive transformation of increased savings on the one hand, private savings, bank, insurance, regulation, which is now very different in Europe than it is in the U.S., interest rate structure in some part of the world, I can think of Japan, I can think of others. And this globalization phase, which all of a sudden enter a deglobalization phase because maybe there is this cyclical moment with the U.S., where you're constantly on the edge. It's like being on a rugby playfield, right, and waiting for the information and seeing where the ball is going to be coming from, where we're going to have to play defense, to play attack. And that has been extremely exciting as far as I am concerned, we are concerned. And we've only been able to do that because we were lean, agile, that obviously, our team, our people were fully embarked in this dynamic. And that's why we're so -- I am certainly, I guess, we are, Antoine and I, are so excited about what's ahead because I can tell you that when people ask us what have you done differently? Well, maybe starting with $50 billion and not $4 billion with 17 offices and not just sitting in our seller in Paris. So we're at this crossroad now where we can tackle an industry that has been, as we said, changing dramatically, which I must say, has been somehow dominated by American brands, platform franchise, which once again, I respect greatly, but the world is in a different place now. And I think you cannot have some limitation on goods with tariffs. You cannot have some limitation on people movement with immigration and not have at some point some limitation on the most liquid assets, which is capital. And what we're seeing right now, which is rightly the point that Thomas made about sovereignty and the real defining investment that needs to happen right now, there will be a massive opportunity for platform like us. We've been seeing all along that you have to be multi-local, which means that when you're addressing Europe, and we're all seeing in London today, but I can see in the room, many people coming from different places. And we all know that doing business in Madrid, in Milan, in Frankfurt, in Paris, in London, it's different. The culture is different. The rural -- I mean, the legal environment is different. The networks are different. And we've been making this investment for the past 20 years. When we're talking about harvesting, that's what we are referring to, that TKO today is deeply rooted in every single market to be able to size, to execute, to monitor, to -- sometimes to restructure this situation. And that's what investors or certainly the 80% of the investors we've been referring to that we are now trusting us, that's what they are looking for. I'll give you an anecdote. When we started talking to Korean investors 7 years ago, -- and you spent a lot of time there. We all spent a lot of time there. I remember 7 years ago that some of them in our direct lending, for example, strategy, they were asking specifically to carve out Spain and Italy because back then, we were coming out of the euro crisis, the peaks, the whatever. Over the past 12 months, all the capital we raised in the region has been for private equity investment in Madrid and in Milan because it's moving so fast. And what those people are expecting from us is to be the local guide with the skin in the game, not just selling them the product of the months, but effectively promoting some investment strategy where there are some strong conviction at heart, but with capital aligned to them. And so here, again, a long answer, but I've never been as excited because the platform we have to tackle this new chapter in the market where effectively there is a dominance like in many other sectors by some of our U.S. friends, there is this, I guess, once in a lifetime for us opportunity to be this next-gen native European alternative asset managers, which has grown organically across asset classes with capital fully aligned. We might discuss later on M&A or something, but not trying to build artificially a one-size-fits-all platform, but to have a real bespoke and hopefully relevant, performing, as Thomas said, offering for those investors. So long answer, but I think we're best -- that's why we wanted to have this discussion with you now because I think the platform now is mature. It's mature to be harvesting these opportunities. Maxime Laurent-Bellue: Thanks, Mathieu. Shorter question now for Antoine maybe. We've -- I think we've sort of outlined a bit of the road map for the next few years earlier today. I want to be very specific, Antoine, on what would you -- and if you could elaborate on our key priorities. We mentioned scale. We've mentioned profitability. I'm sure underwriting is one of them as well. But could you give us your vision on that? Antoine Flamarion: Thanks, Max. Maybe I will start using what Mathieu described as harvesting. We've been investing for the last 20 years, building the platform. And we consider that the platform, which is multi-local, 17 countries, strong local investment team is fairly unique, meaning that we can source a lot of local opportunities. And when it comes to private assets, you're not buying assets behind your Bloomberg. You need to be local. So we started doing, I don't know, a lot of residential, for instance, in Portugal, in Spain, in Germany. And as you know, real estate market is very difficult, now we start seeing really big guys, almost all the sovereign wealth fund coming, knocking at the door to say, we want to co-invest with you in your residential expertise. And I think that's exactly the illustration of harvesting. We invest in the platform. We can source fairly unique assets with a very strong risk-reward profile. And that's about now the time to make sure we do -- we deliver a larger transaction. We keep the same investment discipline. And at the end of the day, it's not about growing the AUM. The most important thing is making sure you deliver performance for your LP, for your investor and as a consequence for the balance sheet and your shareholder. And I think now for this chapter, we're going to be focusing on more profitability at the fund level, at the firm level because we've been investing for 20 years. So now the operating leverage is much higher. We reached EUR 150 million of EBIT 19 years after launching the asset management. The asset management has been launched in 2007. After 19 years, now we reached EUR 150 million, and it's exponential. So I think now it's about time to harvest to make sure we increase the profitability. We need to be very selective in a very changing world. The example of Mathieu is clearly what's happening. 7 years ago, people will tell you, please, no Spain, no Italy. And now people will tell you, you're doing too much France. We want to do really Italy and Spain. And it's changing all the time. When it comes to real estate, people have been obsessed by buying retail real estate, office real estate. Needless to say, what the office market looks like now. So we need to continue to adapt. So I will say to answer and summarize what I say, scale, operating leverage, profitability, investment discipline and keep the same ambition, and that's the plan. Maxime Laurent-Bellue: What about M&A, Mathieu? -- we are -- as we discussed, we are well capitalized. So we are a potential buyer for not anything, but for many objects. The industry has been consolidating recently. How do you -- do you think we'll be active? And how do we assess the right match essentially? Mathieu Chabran: Yes. That goes back to what we were saying. I mean there is this imperative of scale right now, be in terms of footprint, size, assets and strategies, platform. And whilst there will always be the great and perfect investors very focused either locally or by industry. Clearly, the trend that we've been seeing over the past few years is accelerating and we'll be -- I think we'll be even more impacted by the cost of doing business, from a regulation standpoint, from a -- as I said, the footprint you need to have. And we are very well positioned. I mean, it's going back to some of the question we had earlier on about the balance sheet. The balance sheet has been a huge enabler for the asset management business, as Antoine addressed. It's always been as entrepreneur, you're never overcapitalized. It's quite often very the opposite. And so having this opportunity to be able to buy, seed, merge, sponsor, we've become the partner of choice for many bankers, some of you in the room, and I'd like to call on you to give you some evidence. But I mean, I think today, we've got 85 names in our spreadsheet in the pipeline of situation that we are looking at, small single strategy, single country platform all the way to some of the large platform that traded recently. And we have become partners of choice because of this balance sheet. I mean if people just want to sell, cash in and move on, that's not the type of things we're looking at. But people say, okay, now we need to have a stronger partner that can seed anchor the next phase of fundraising, the next fund to be fully aligned in the mindset and the culture and see the cross synergy we can have in the distribution, then the discussion becomes highly interested. Obviously, the -- I mean, the starting point is that there needs to be -- I think the first and foremost is the cultural fit. I think it goes past the financial merits. And now that we are 5, 7 years into some structuring M&A., I think that some of them will demonstrate that the cultural fit was not there, and there could be some issue there. So I will always put culture first. Then it has to be about the complementarity, obviously, because there will be little merit for us to be doubling up on some strategies where we are already a market leader in a market or in a strategy. And then it has to be financially accretive, right? The last thing we want to become is an asset aggregator because that comes back to the discussion we are making about -- we are having about the -- our earnings. It has to be a profitable growth. And so that -- when you put all that as a filter, it leaves from 100, it gets you maybe 10 situations, right? And from 10 situation, there's maybe only 3 you want to do and maybe one that will conclude. But we believe that M&A will keep -- as a general comment, M&A will keep developing, certainly in Europe, where some platforms are subscales, partly for some investors. We also discussed the fact that many asset owners, they are reducing the number of relationships that they're working with, but they are increasing the amount of capital they are allocating to. And that's something that we can benefit from now that we are at scale. And the other thing, I don't think we commented on this KPI and Vincent tell me if I'm off beat here, but I think we're still at 2/3 of our investors, LPs are invested into more than 2 strategies. So they will be into credit and private equity, into infrastructure and real estate. And that's something this cross-selling and the upscaling that you can have with your LP, that's where you can make obviously a big difference. So it's about being very selective. Maxime Laurent-Bellue: And on that, Mathieu, I was actually thinking probably even more selective than in any of our strategy, right? Because you certainly don't want to misunderwrite an investment in credit, in PE, real estate, but you, for sure, don't want to misunderwrite an M&A opportunity, right? Because... Mathieu Chabran: 100%. 100%, it's -- it's a people business. You have not seen us entering into transformative M&A that with all due respect from our investment bankers friends in the room, what I call sometimes the bankers idea, which is on paper, on XL, it's always perfect. It always works on XL. And then you've got this people business component that needs to be factoring. But as the industry mature, as some people get into some succession challenges, as some platform may be struggling to raise the next fund, those discussions are becoming very interesting. Antoine Flamarion: Maybe I'm adding a comment on M&A. All the transactions you've seen in the sector, all the comments are about how many times what's the multiple on FRE, okay? BlackRock is buying HPS on whatever, 17x. Collier has been purchased on 17x and so on and so on. Our view is that we should be focusing on the underlying fund and not the FRE multiple at the management company at the GP. Because at the end of the day, the value of an asset management business is the underlying performance. And I think people have been a little bit distracted in the last 15 years. So people have been buying a lot. As you noticed, we bought nothing. And we are in a position whereby we will be the one consolidating. But as long as we make sure that we are buying a very strong team, the same DNA and culture and very strong performances at the fund level because if you start having good performances, the value of your business is probably close to 0. So we're going to remain disciplined. We look at a lot of situation. And thanks to the balance sheet and our shareholder base, we can -- if we want, if it makes sense, be acquisitive. But no doubt that we're going to be very, very cautious. And we see -- we start seeing more and more opportunities coming. And as the cycle change, which is the case, for instance, in private credit in the U.S., there are more and more people knocking at the door. So we are really well positioned if we want, if it makes sense. Mathieu Chabran: And an extension to your question, Max, is it doesn't just have to be an M&A deal. It can be all these partnerships where we've been, as Antoine pointed out, I think, pretty good at with some corporates, with some financial partners, with some asset managers. I think that, that's going to be increasing. And when we were detailing the fact that moving forward, you have this asset management pillar, this balance sheet pillar on the asset management level, we become a partner of choice for those partnerships, partly with more traditional insurance companies, I can think of, with some other asset owners who are looking for some ways to deploy more into certain strategies. And that's also a step forward where our track record of having this partnership will certainly resonate well with this at this time in the cycle. Maxime Laurent-Bellue: Thanks. I'm conscious of time. So maybe before wrapping up, 2 questions, 2 final questions on each. Maybe starting with Mathieu. What would you say -- what would you like to preserve the most? Or what would you like to never change within the firm regardless of where we go, how we grow? Mathieu Chabran: Yes. Well, Put this little movie there. And obviously, we're in a particular seat on [indiscernible] because it was the 2 of us and now it's 700-plus people, we are working with. It was in a small office in Paris, and now we're on the road all the time, meeting with all our teams and colleagues and partners locally. I think it's close to 50 nationality we've got across the platform now. And this -- I no longer want to use the word DNA, but I think this culture, the singularity that we tried to develop over the years and still maintain that makes effectively hopefully, a small difference between similar platforms is certainly what we need to be focusing on. And when I look at the breadth, the expertise, the wealth of the people working around us, I mean, that makes a huge difference. Because at the end of the day, as Antoine said, what we do is not rocket science. But for as long as you are fully aligned, that you are fully embarked in terms of the people that are working to, then you can make effectively a difference in good and bad times. And you will know very, very well, you personally and many of our people that sometimes sitting at an investment committee, sometimes we don't even have to talk looking at each other, people because having been through all these cycles together and that might be the benefit of now time and experience, it makes a huge difference in the way you're approaching what is at core, as Antoine said, the investment, the risk underwriting, the fact not to be forced to doing something or -- I mean, each time we did something wrong was when we got to live into the former. And for as long as we can resist that because the people, we've been in the locker room together. We've been on the pitch together. We had the fight, the win, the losses sometimes, but we came back, that's what we need to preserve for sure. Maxime Laurent-Bellue: Is it difficult... Mathieu Chabran: For sure. For sure, I said. Maxime Laurent-Bellue: Is it difficult something to combine ambition, growth with maintaining entrepreneurial spirit, nimbleness? Mathieu Chabran: Just to share maybe with the audience, I mean, where I'm really, really happy is that today, our team, our senior leadership team, our partners, they're spread across all our offices from Singapore to New York, obviously, here in London. And that is something that has also been a key differentiating aspect where you need to obviously hire locally, but you need to maintain this backbone, this what is the culture of Tikehau and hopefully, the discipline too. Maxime Laurent-Bellue: Antoine, you opened, you closed. Any key message, any key commitment maybe for our partner, shareholders, investors? Antoine Flamarion: Talking about commitment, we've been committed to this business with our 715 people. We are very committed. We remain entrepreneurs. Mathieu mentioned DNA. It's still the same company with the same drive, the same energy, a more global platform, a longer track record because when you start, you have not a real track record. Now we can claim that in several strategies, we have a strong track record, a solid track record. The world is becoming more and more complex, and we mentioned sovereignty, technological changes, geopolitics, politics. It's going to continue to be like that. So we're going to keep diversifying our business from a geographical point of view, from a sector point of view. We need to adapt the firm. I mentioned Revolut, our own platform, Opale. We launched several initiatives called either Retina or Lagoon, which is our own AI tools. So we need to adapt all the time because we are not really AI or tech native. So we had to spend time. We hire younger people specialized in this area. So it's going to be the same. We still have a lot of appetite. We are not going to do stupid things. We discussed briefly M&A. We've got very strong conviction globally. We could be -- and I don't want to be arrogant, but we could be discussing U.S. asset management for 2 hours is there. We spend a lot of time there. I'm not telling you that we are announcing in the next 10 minutes something in the U.S., but we are looking at all of our options. We've got these 2 very solid businesses, the balance sheet with permanent capital that everybody is looking at. 10 years ago, you talked to some people in the GP industry, they said, we're going to enter permanent capital. And we said we have a EUR 5 billion balance sheet. And we've got this now profitable asset manager. So we're going to have the 2 businesses, making sure they are both highly profitable. And we're going to keep doing the same thing with the same drive, same energy with a very strong group of talented people internally and a very -- and I finish here, a very unique set of partners, corporate partners, financial partners. We did not really discuss today. But as you know, some of the largest families around the globe are invested with us from the U.S., from Greece, from France, from Italy, from Netherlands. And that's also part of our cloud. So more or less the same. with a little bit of new innovation coming. Maxime Laurent-Bellue: 23 seconds over time, I think that's fine. Thank you so much. Antoine Flamarion: Thanks Max. Theodora XU: Thank you very much, gentlemen, for this very interesting insight. Before delving into our final sections, beyond strategy and expertise, what truly defines us is the way we operate. Our entrepreneurial spirit is not confined to our offices. It shapes how we think, how we collaborate and how we challenge ourselves. So we'd like now to share a short video that captures this spirit in action. [Presentation] Antoine Flamarion: We just do cycling, FRE, net income, that's the real Tikehau. It's a cycling and sport company. Henri Marcoux: Just got down from my bicycle. Good morning again. Yes. So we'll be finalizing this presentation, starting maybe a quick introduction in terms of compounding effect and velocity focus. We wanted to remind you a few data points. First one, there was a question earlier this morning on our balance sheet, asset-light. We wanted to remind you a little bit the way we've been using our balance sheet, how have we been operating over the last years. Here, a quick snapshot once again on our investment portfolio. A few take away. First one, a significant increase of our investment portfolio went up from EUR 1.6 billion back in 2017 to EUR 4.4 billion as we speak. Second takeaway, the way we've been rebalancing this investment portfolio. Earlier back in 2017, it was allocated 33% through our strategies. It has gone up roughly to 80% in '23. End of '25, the allocation to our own strategy stands at 69%. And that's actually a direction we want to keep on going, which means actually having lower intensive allocation to our investment strategies. So what have we been doing with our balance sheet? A few examples have been given this morning. But obviously, investment in our own strategy, we've been mentioning that. We put our own capital at work. We invest alongside our LP, alongside our partner that enables us to effectively have a compounding third-party fundraising, accelerate international expansion. On the other way, investment in all our ecosystem, as we've been doing in the past, to forge partnership, complement our expertise and structure co-investment. We'll be coming back on the 2 first pillar. So first one, Tikehau Capital strategies. EUR 4.3 billion have been committed in our own strategy. As you can see, credit has represented most of this allocation up until now, 48% out of that 18% in our CLO platform, which, by the way, has enabled us to launch effectively 24 European and U.S. CLO since we started the business. Alongside that, launch as well vintage and new flagship and adjacencies. Another 17% of allocation has been done through real estate and a significant part of our allocation of this EUR 4.3 billion has been carried out in private equity, roughly 36%. And all the initiatives that we've been talking about up until this morning, decarbonization cyber security, aerospace and defense, all these initiatives that were launched back in 2018 have been done, thanks to the allocation initially made by the balance sheet. One important point. We've been talking about this kind of third-party fundraising compounder. You can see here, each time from 2018 to 2021, that we were putting EUR 1 from the balance sheet, we had a kind of a multiple of by 7 of third-party inflows. Since '22, so during the last -- latest fundraising cycle from '22 to 25, this multiple has increased to 13. Several aspects to that. First, it's true that once the flagship are becoming bigger, once vintage are more advanced, for example, which is the case on vintage on direct lending, the multiple is higher. So clearly, we've been demonstrating that this fundraising companying effect was very efficient. Other key priorities already that was announced this morning as well as co-investment the use of the balance sheet is a key asset for effectively in this co-investment opportunity. We are using the balance sheet to warehouse partially some of these co-investments. That was the case back in '22 on this first private debt secondary initiative, more than EUR 500 million. It has been the case last year on several co-investment deals in real estate, in private equity, in private debt. We mentioned the deal in Spain, EYSA. So here, clearly, you can see that this warehousing capacity and use of the benefit is clearly playing a strong role in our business model. Now switching to ecosystem and direct investment. I won't come back -- won't belong on that, EUR 1.4 billion. But once again, here, it's a kind of full ecosystem, which clearly this full network is expanding deal flow. It is deepening expertise, and it is clearly enhancing market intelligence. So we are partnering here with 56 GP, 60 LP interest and it's providing a huge diversity around investment type, geography coverage or sector coverage. Antoine, do you want to provide a comment on that as far as our GP relationships are concerned? Antoine Flamarion: One thing we -- thank you, Henri. One thing we try to do is build relationships around the globe and long-term relationship across asset classes, geographies, sector. And we've been using this balance sheet in what we call ecosystem to generate opportunities. It could be co-investment opportunities when it comes to private equity, to private debt, to real estate. It could be financing, and you've got 2 examples here. We co-invested 5x with J.C. Flowers doing financial services all around the globe. So for instance, when they invested into BTG Pactual a while ago, when the bank was private in Brazil, we co-invested with them alongside GIC. More recently, we invested with them in Jefferson Capital. We just conducted an IPO. And for us, it's 2x realization, but the multiple is close to 8x now after the IPO. And so we generate within our ecosystem long-term relationship with families, with financial institution with very strong GP. And that's part also of what I described earlier as the cloud. Tikehau is not only 17 countries, 715 people. It's several families, several really big and smart investors. And I think when I keep doing that, that will generate more opportunities and also that's avoid you to do mistakes. When you partner with some of the smartest investor in the financial service sector, it could be Flowers, but we've done things with Stone Point, which is the other big investor in the financial industry in the U.S. Then you're a little bit smarter, if you look at a leasing company, at a private equity company, at an insurance company and so on and so on. And that really illustrates the DNA of Tikehau. It's not only one firm, one culture, one P&L., it's a cloud of partners all around the globe, which enable you to find smarter opportunities, avoid mistake and accelerate when it times to accelerate. Henri Marcoux: And what's the takeaway you're going to tell me? So here, we've provided a few data points, both from listed ecosystem investments. Realized proceeds now are amounting above EUR 1.5 billion, net MOIC 1.4x, that's a 13.2% net IRR. And as far as exited investment -- co-investments are concerned, that's more than EUR 270 million of realized profit and 2.3x net MOIC. So once again, here, you're demonstrating quite demonstration of what we've been achieving over the last cycles have clearly demonstrated strong returns within our business model. Do you want to provide a comment or we can... Antoine Flamarion: Yes. No. We had the opportunity to discuss a little bit earlier our investment in Schroder. But as you know, we've been using our balance sheet to invest in the financial services. Back in 2012, we bought Salvepar from Societe Generale. In 2017, we were the second largest shareholder of Eurazeo with a 9.5%. So we are always screening the entire financial services industry. When it comes to Schroder, which is probably -- which was the best name in the city of London with a very unique business, size, very strong track record. The company has been under some pressure and as a consequence, valuation was very bad. So we decided to do 2 things: one, to become a relevant shareholder falling more than 5.4% of Schroder, but also building a relationship with them, trying to be able to create products, increase our distribution channel and we are still discussing with them on opportunities. And suddenly, a U.S. investor came almost 2 years after we made the initial investment, decided to launch a takeover. And that's, for us, is generated close to EUR 240 million of P&L, a very strong return. And we use the balance sheet to really do 2 things: deliver good investment and generate business. And that's part -- that illustrates perfectly what we've been doing for 22 years. Henri Marcoux: So now moving forward and looking at the next 4 years, the next chapter, what are going to be our allocation policy to -- as far as balance sheet is concerned. We are now exiting this phase where, as we mentioned, balance sheet was a growth enabler. We are entering into this next phase where our balance sheet will be strategic allocator. Our priority will be now probably to deploy less, rotate faster, target higher velocity and more value-add opportunities. So what -- no change here. Balance sheet allocation will be gearing forward Tikehau Capital strategies and ecosystem. As far as Tikehau Capital strategies are concerned, obviously, we will keep on going and we will have still strong skin in the game alongside our partners, but a focus will be reinforced on value-add strategies in PE, in real estate and in credit, with expected returns over 15%. And as I mentioned previously as well, greater flexibility, notably on co-investment. On ecosystem, similar pattern, strategic transaction, focus on high-performing investment and ancillary business. Three main objectives, very clear: improved portfolio velocity, generate increasing profitability and grow shareholder return. I mentioned lower capital intensity into the funds. If you have a look at the 2 previous cycles from 2018 to 2021, average yearly allocation in the funds was roughly 450 million a year. Since last cycle from '22 to 25, it was roughly 450 million, but including co-investment, the allocation will still be -- keep on going within co-investment and secured capital fund. But once again, lower capital intensity expected on this new cycle coming. We mentioned profitability and this next phase with a strong objective. Clearly, 3 main pillars will be enhancing our profitability them for the coming years. First one, operating leverage, and I'll be giving you in a minute the details of that. Performance-related earnings will be the second pillar on which we will be relying and investment portfolio. Operating leverage, we are exiting this cycle '22-'25, where we have reached EUR 28 billion. We are now targeting more than EUR 35 billion for this next chapter in the coming years. So clearly, here, more selectively adding -- we will be more selective in adding adjacencies and target new initiatives. We will be more focused clearly on scaling existing strategies. How are we going to achieve that? Once again, by deepening institutional relationship, high-growth region such as APAC, Middle East, North America, and we will also broaden our distribution, like was mentioned before by Antoine and Mathieu, notably to capture more private wealth demand. What will be the growth driver? You have them here, but clearly, all of them will be clearly used and all the structure that was developed over the last 20 years, the 17 offices and the setup in place will be clear in this new target to once again achieve more than EUR 35 billion -- EUR 34 billion of fundraising for this new cycle. Operating leverage once again here, I think that we have demonstrated that over the latest 2 fundraising cycle, operating leverage has already taken place. So Asset Management EBIT moving from EUR 4 million to EUR 114 million at the time of the latest Capital Market Day back in '22. Since then, reaching EUR 150 million, as we have described this morning. So that's a 52% CAGR since IPO. And once again, this sustainable growth has been supported by mix improvement and scale efficiencies. In that context, new chapter will be focused on reinforcement of this operating leverage, and we will be harvesting in this new phase. We are now targeting both between 45% and 50% of core FRE margin by the year 2029. Second pillar of this new phase of profitability of this new phase of development will be performance-related earnings. We've been repeating that for many years, strong value embedded within the underlying value, the underlying funds, shareholder allocation, more than 54% of allocation of this carried interest to the balance sheet, significant profitability driver. We've seen that during the year '25, by the way, it was the highest year in terms of performance-related earnings, EUR 22 million. So we mentioned this morning, this EUR 220 million of unrealized performance-related earnings. That's the picture -- how the picture looks like at end of September '25. So that's the underlying carried interest, which are being valued at fund level. We are expecting more than EUR 160 million to be maturing before the year '29. So we are here providing you a kind of a data point where we think the timing of this EUR 220 million where we think it will be realized. By the way, that does not include any additional value creation that can be created between '25 and the next coming 4 years, which will potentially create additional carried interest. Third pillar of this new chapter. We mentioned operating leverage. We mentioned performance-related earnings. Third one will be investment portfolio. And here, we wanted to provide you a data point. Sorry to be a bit technical on that. But in terms of how do we recognize within our P&L, the return of the fund. So up until now, all of our funds in which the balance sheet was invested have obviously been realizing capital gains. They have been disclosed underlying stake and cash has been returned to the balance sheet. However, we want to assess that up until the DPI is below 1, it does not create any P&L impact at our balance sheet level. So up until now, we have effectively some cash flow, but no P&L impact. As we are exiting the G-curve (sic) [ J-curve ] of most of our flagship and as we will be entering over -- DPI over 1, we are expecting significant P&L effect from our balance sheet and thus the new -- the kind of new forward looking that we are providing today as far as net result profitability is concerned. I was mentioning this G-curve (sic) [ J-curve ] effect once again here, 2 key decisions, 2 new allocations that are being discussed today. First, allocation in new investments which are allowing higher velocity. And second one, exiting J-curve for existing investments. These 2 elements will clearly drive this third pillar of the investment portfolio. Important data point as well on investment portfolio. Since the IPO, 2 clear cycle, 2018, 2021, '22, '25, these 2 cycles have so far returned -- have generated more than EUR 1.6 billion of capital return to the balance sheet. The next cycle that we are facing from '26 to '29, we are expecting an increasing return of capital for the balance sheet roughly above EUR 2 billion for the next 4 years. So which means that all the investments, once again, the investment portfolio that we have been describing together a few minutes ago, will generate more than EUR 4 billion of return of capital for the balance sheet. But how we're going to use this EUR 4 billion and we had the question earlier today, new investment within our fund, balance sheet optimization and shareholder return. Talking about shareholder return here, providing you a few data points, our historical dividend distribution history since IPO. We are reiterating today our guidance, which is effectively a strong commitment to distribute more than 80% of our Asset Management EBIT per year. And meanwhile, we are providing you this new guidance on Asset Management EBIT for '26 and as well for -- up until '29, notably reaching this 55% to -- 45% to 50% core FRE margin. So I hope that all this point, once again, are illustrating this next phase of development, once again, based on these 3 pillars clearly identified and described together. Antoine, Mathieu, maybe I will let you the floor for any conclusion remarks, if any, or otherwise, we can open Q&A. Antoine Flamarion: Thank you, Henri. Just commenting on the last slide on the dividend. As you noticed, we've been 2x since the IPO paying exceptional dividend. If we continue to deliver strongly on the balance sheet return, we'll probably have excess capital because as Henri described, we need to put less money into our asset management funds. So we could expect probably in the next cycle to make sure that we improve the return for shareholders. Shall we take some questions? Yes. Theodora XU: Let's take some questions. So several questions from the room. Question from RBC. Unknown Analyst: [indiscernible], RBC Capital Markets. The first one on fee-related earnings margin development. Can you share more color on what sort of cost discipline assumption underpin margin expansion as you continue to scale? Second is on secondaries. Perhaps you could expand on what is your longer-term ambition for these funds? And how competitive do you expect the secondary space to be over the next few years as your listed peers -- well, some of your listed peers are actively pushing to accelerate growth there. And then lastly, on AI and specifically, if you observed any material impact on your cybersecurity mandates? Also interested to know how you distinguish between AI winners and AI losers within your investment process? Antoine Flamarion: Thank you for your question. Maybe I take the first one on operational margin. I think we have a slide on basis points per management fees per asset class, if you can show that. As everybody know, there is a strong pressure from management fees in the traditional asset manager, which get totally disrupted by the ETF business. When it comes to private assets, we continue to preserve the management fees, if I may say. And if we can get the slide, you will get a sense. But overall, our management fees remain a little bit stable, declined a little bit, but we have our private equity increasing in terms of size. And as you will see on the slide, the private equity management fees is improving. We're at [ EUR 177 million ]. So 1.77 percentage management fee last year. We are above 1.85% management fees. So when it comes to revenues, we think that revenue will increase because of the private equity is increasing at TKO in terms of size and businesses. When we look at credit, there is some -- it's not pressure, but our average management fee is declining because we are issuing more CLOs and CLOs, the management fees is lower than the direct lending of the secondary private debt. But overall, we managed to keep the same management fees. As Henri pointed, we have more performance fees. We noticed that in 2005, with a 5.4 basis points. So when it comes to revenue, to answer your question, revenues will continue to increase. We are fairly convinced of that. Henri mentioned it, we start managing the cost. The first phase was really the growth phase. We open offices. We hire people. Now we are becoming much more cost conscious. So that means that operating expense will probably be managed in a better way. And as a result, that will lead to an increase in the margin of our Asset Management business. Mathieu Chabran: Yes, I'm happy to take the one on the secondaries. So when we decided to launch the private credit secondaries, which is what we are focusing on right now, that was in the context of our opening in North America in New York. And when we discuss with our partners, with Cecile here who's leading our direct lending practice, we say, okay, I mean, what would be the differentiating angle for us to be another direct lender in the U.S., which is already highly populated market, and that was 7 years ago. That was even before what's going on right now. And we came to the conclusion that after this very solid and robust cycle of primary allocation to private credit over the past 10, 15 years, similar to what had happened to private equities and the development of secondaries private equity, there will be a natural opportunity to provide liquidity to some LPs allocated to the asset class, we would be willing to rebalance their portfolios. And we thought that we were best positioned to do that because we were not a secondary solution provider like many of our competitors can be and that's their positioning. But we were credit investors at heart. And so we could demonstrate the merits of doing the underwriting, using our balance sheet as Henri just told you, and that's how we launched this practice. And what was perceived in 2020, like a very cyclical opportunity that was right in the middle of COVID, people were throwing away their financial assets became very quickly a structural strategy. And today, as some of our competitors and some more established names started to develop there in a matter of 4 years, it has become an asset class on its own. As Antoine said, we just closed our second vintage. So we now have more track record than some of our competitors to demonstrate the merits of the strategy. We've been allocating a lot of our own balance sheet. We've been using the balance sheet. The example that Henri was saying earlier, I can elaborate on that. Our first fund was shy of $500 million. And then came an opportunity to buy a portfolio, actually a single asset, but a portfolio from a Taiwanese insurance company was getting out of a Goldman Sachs mezzanine fund, a very large $15 billion trend, which we're already an LP with. And we knew the credit and we knew that in order to do that, we could not do that with the fund. Or by the time we would go and pitch our LPs, "Oh, are you interested with this co-invest?" The opportunity would be gone. So that's where the balance sheet is the most differentiating asset. And that's why today, we're trying to once again convince you that it's not a burden. It's our most valuable assets, enabled us to underwrite that, get these assets at some very attractive financial terms. And then once you have secured this opportunity, bring on some LPs, including some Hong Kong-based insurance companies, European insurance companies and turn this balance sheet capital into third-party fee-paying asset management. And so today, as we close the second vintage at $1 billion in our capital, we are convinced, as I said earlier, that not only it's a natural evolution when you're in the private market to find some liquidity and add on top of that, the little noise that we've been having for the past few weeks, we would expect this to increase. And today, when you look at all the competitive landscape of our friends, all the managers, it's probably $20 billion that has been raised by way of funds or SMAs and the opportunity set in front that is $100 billion. And those are public private pension funds, insurance companies, family offices, who are rebalancing the portfolio. And we like the situation where the supply demand is totally unbalanced because that's where you become a little bit of a price setter. And as a consequence, I mean, today, we saw public numbers where we're disclosing our fundraising, the close to $2 billion that we have deployed there have been both at $0.84, $0.85 a dollar which on an average, 3, 3.5 years remaining portfolio, you're creating a 500 basis point pickup for this illiquidity. If you remember, in secondary private equity during COVID, when interest rates were at 0, the secondary market was trading at a premium to NAV, because that's when people were like, if I can deploy overnight some capital instead of having -- we had some negative interest rates, if you remember, having some cash at the bank was costing me some money. So obviously, in some more defensive downside protected credit investment that we can underwrite in a bottom up, we like the risk reward and that we can generate effectively some mid-teens return. That's the return that we've been generating so far, which ticks exactly the type of return on equity we're going to have for the balance sheet. Henri Marcoux: You had a question on AI and impact on our cybersecurity business. Difficult for me to comment on. I'm a bit puzzled to say the list on AI winners and AI losers. I've seen some companies that are dealing with food premises and so on being AI losers and suddenly having decreasing value. So trying to understand that. I will not provide further comments. All I can tell is that our cybersecurity business, we are currently operating the fourth vintage. We had strong demand from investors and the size of fund #4 has roughly doubled. And by the way, meanwhile, something is currently happening over the last years, notably since '22, which is clearly called sovereignty. And I think that there's a clear here, a new environment, new paradigm where people are realizing that it's key. And I can tell you that within our portfolio, we are the biggest venture cybersecurity business with this fund in Europe. We are a shareholder of a company called ChapsVision. It's a global data treatment. All its systems are being used by the European government. Some may call it the European Palantir, but clearly, this company is growing significantly. We are a shareholder of Memority, which is a company providing data access to local information system locally or at distance. And I can tell you what we are seeing is strong business growth in all this company because major -- many companies in Europe are trying to replace and to be less dependent from the U.S. on all these sectors. Theodora XU: [ Isabel ] from Autonomous. Unknown Analyst: [ Isabel ] from Autonomous Research. So I have 2, please. My first question within the context that I understood from the full year '25 results session that you expect FRE operating expenses to be broadly flat year-on-year. So first of all, correct me if I misunderstood there. But given this, we are seeing a number of your global peers move aggressively into Europe, both institutional fundraising and on the private wealth side, including lots of hiring of dedicated sales teams to push distribution. So how are you thinking about reconciling the need for operating cost control against maintaining or expanding your competitive positioning and market share? And then my second question is on PRE. Thank you for the color on when you think it's going to mature. On the EUR 160 million that you expect to mature before 2029, should we expect that to be more back-end loaded towards 2029? Or could we see a substantial share come through this year, please? I appreciate that might be hard to predict, but maybe if you could set out some parameters, do we need a certain fund to do very well or a couple of disposals should trigger that first recognition? Mathieu Chabran: So -- go ahead... Henri Marcoux: You know that performance-related earnings. I don't have an Excel spreadsheet with every month for the -- it will obviously depend on from value creation and exits. So obviously, internally, we are -- we have all of our underlying EUR 600 million position that we are hosting on PE private debt. We are working on some kind of forecast, but difficult effectively to provide you data, strong data sets, either by year or by quarter by quarter. Antoine Flamarion: But maybe what we can say is that the figure you saw here, the EUR 220 million, it was the same figure 2 years ago, if you recollect. And we had in between for the 2 years, EUR 40 million. So we'll receive EUR 40 million, EUR 22 million this year and a little bit less in 2023. So we still have the same EUR 220 million. So that means that our AUM base is growing. Our eligible AUM base to carry interest is growing. As you know, we try to be conservative on that because you cannot really predict PRE. What we can say is that we are building more and more private equity exposure, which will generate probably more carried interest than traditional real estate or credit. When Henri and Vincent highlighted 2.6x multiple on exit on private equity is generating more carried. So I think we are very optimistic, very difficult to predict because it depends on the market, on your asset where you're going to exit. But we are fairly confident that, one, it's growing, and it's highly diversified because secondary private debt is another example where we're going to get carried interest as well. So that means that we are diversifying our pool of carried interest, difficult to predict, but it's improving, and we are very confident on that. Henri Marcoux: And if I make co-investment carried interest are obviously quicker than fund carried interest. Antoine Flamarion: And maybe if you go back to your first question on -- regarding retail, one of the firm motto is create, don't compete. 30% of the money we manage is coming from retail investors directly or indirectly. So we've been pioneer in France with unit-linked product. We launched with our partner, Intesa 4 years ago, a very big program. We've done the same thing with our partner in Abu Dhabi, First Abu Dhabi Bank. We just signed something with the largest bank in Singapore. So my comment is that we still have 30% of AUM coming from retail investor. I mentioned large family offices that are investing directly with us. So do we need -- to go back to your question, do we need to build a giant sales force to tackle the retail? We are not convinced, and that's not what we're going to do. We see our peer group in the U.S. hiring hundreds of people to cover IFAs, banks and so on. We are fairly convinced that we can keep growing there without adding gigantic cost, number one. Number two, we'll try to be more digital. So we create our own platform, Opale, which is already fully operational. It's not gigantic. But in 2025, we raised EUR 260 million through this channel, and it's a greenfield. So we don't think we need to add a lot of resources. Our competition is doing the other way around, and they have larger brands than us, the U.S. guys, not the European guys. But we are fairly convinced that it will not destroy the profitability of the asset management. Mathieu Chabran: Maybe to preempt a follow-on question, which is all this retail focus by many, we've been fairly constant and public on that. We thought that there might have been a bit of misselling in trying to address this market with open-ended evergreen structure. And I'm not only reacting to the headlines over the past few days, but there's been -- I don't want to name anybody, but there's been some things on the real estate happening, how can you have some daily liquidity when you're owning 25 building a city of London, how do you want to offer the liquidity to your clients? On the private equity, the same thing and some of the Boost funds have grown exponentially because obviously, you had a very good brand, a good track record. And some people may have said, and it's not about the managers, sometimes the distribution saying, "Oh, you can buy this private equity or have a debt fund, it's like buying European equity usage". Well, it's not the same thing when it comes to liquidity. And our conviction is that you rarely die of your assets, but very often of your liabilities. And that's a risk that is now in the market that don't want to be overreacting to some news flow. But part of what we show you, we have out of the EUR 52.8 billion, we've got EUR 200 million in an open-ended structure with a targeted return of 7% to 8%, when the other people are showing a low teens because of the leverage, [indiscernible]. So we are looking at the technology. We want to make sure that we can address and tackle the opportunity, but there will never be -- that we will never compromise with the asset liability matching that we believe is what we owe to our customers. Antoine Flamarion: And there are some products whereby you don't really need a specific sales force. So we have -- we launched one unit-linked product with our French partner, Societe Generale. It's a unit-linked product dedicated to aerospace and defense. And for the first 2 months, it's been EUR 1 million per day more or less. And it's not our sales force. It's really the sales force of the bank. So we don't need to add extra people to market that. Theodora XU: Question from Nicolas Payen from Kepler. Nicolas Payen: Nicolas Payen from Kepler Cheuvreux. First one on net inflows. Just wondering, what kind of environment assumption have you baked in, in your in your planning when you set up your net inflow targets? And also, if you could give us a bit of color regarding the kind of asset class mix you're expecting regarding net inflows until 2029. That's the first question. Then the second one will be on balance sheet investment returns. Thank you very much for your comments regarding the acceleration on the G-curve (sic) [ J-curve ]. Just wondering what kind of return shall we expect on the -- in the balance sheet? If I remember well, last time, you mentioned something like 10% to 15% return on balance sheet investments. So wondering if that still holds. Antoine Flamarion: So maybe when -- I start with net inflows. As Mathieu, when he started, highlighted its fourth year in a row record year when it comes to fundraising. If you look at the net new money, the EUR 8 billion we get or the EUR 10.5 million gross, it's now really coming from all around the world and still 50% is going into private credit. But within private credit, it's highly diversified between secondary private debt, direct lending, CLO and so on. So my point here is that we try to diversify as much as possible. As business owner, you want to build a very diversified business. So now that the platform is fully operating, we're going to expect net inflows coming from all around the globe. For the first time, we had a reinsurance company invested EUR 500 million with us in 2025. 12 months ago, we never came across this investor. We had a German reinsurer company investing EUR 350 million with us in 2025, first time. Large Japanese insurance company invested EUR 200 million in 2025 in a direct lend fund. So to illustrate that, the net inflows will come from all around the globe. We will probably benefit from the geopolitic at some point. So I'll give you one of our favorite topic Canadian pension fund, which are by far the largest, probably similar to the super annuities in Australia. They used to put all their money with the large U.S. GPs. Now they want to find European and Asian GP. So going back to your question, the net inflows will really come broadly from all the geographies, number one. When you look at institutional investor and retail, we commented a little bit earlier, but we keep build the infrastructure, the technology to attract retail investor. It will also come on specific asset classes. So as everybody know, real estate has been very difficult for a lot of people around the globe. We've been very acquisitive in 2024 and 2025. So we start reinvesting in real estate because we see very good opportunities. So I suspect we're going to be the one benefiting from this shift back to real estate. We are not commenting and giving the exact breakdown of the 2029 in terms of asset classes breakdown. So that would be my question -- sorry, my answer on net inflows, maybe, Mathieu? Mathieu Chabran: There's one -- it's an anecdote, but I kind of like it. Q2 '25, so a year ago, we raised more in Latin America than we raised in France. And for me, it was an interesting anecdote because I've never been there. Antoine has never been there. We've got our colleagues covering Peru, Chile, Mexico from Madrid. And by working this market over the past 2 years, now we're starting harvesting at a time with some -- our domestic market. So that's where this complementary comes. And this harvesting concept we've been reinforcing all morning, it's really about that, that we made the investments because our CapEx, our OpEx, and now you're starting to have the investment payback. Antoine Flamarion: Maybe your second question on balance sheet return. Our goal is to make sure we continue to deliver mid-teen returns. We've been a little bit trapped into J-curve, as Henri described. So the way we are allocating the balance sheet moving forward is probably in a much more cautious manner. We have still the same target. And by the way, we build the firm being good investor at building the balance sheet. I like saying that, but we started Tikehau as an investment company in 2004. And it's only 3 years after that we launched the asset management. And the asset management has been able to grow from EUR 4 million EBIT to EUR 150 million of EBIT because we've been seeding the strategy and investing. And we are investor before being asset manager, and I think we're going to be very disciplined and probably much more disciplined than when we were before. I'm not saying that we are not disciplined. But now it's really the time of harvesting and the investment committee managing the balance sheet called the Capital Allocation Committee is becoming much more difficult, for instance, when internal teams are knocking at the door to say, yes, we have a new strategy. We want to -- we want -- sorry, to launch a new fund dedicating to cycling and we are targeting 7%, but the likelihood we take the piece of paper, and it's going directly in the shredder is 100%. So when it comes to balance sheet, investment and balance sheet return, we're going to stick to the same mid-teen return, which is going to be a mix of stuff because asset classes are different, but that's what we target. There's -- sorry go ahead. Mathieu Chabran: Last point is going back to your first question. There's no dependence on one market -- sorry, on one geography or one asset owner type for a fundraising. Now it's really broaden. And the same thing you may have picked up this morning in the detailed report we issued. Last year, our real estate fundraising on our open-end trends and our CMS fundraising was actually very modest to say the least, which historically have been very strong engine of growth. So obviously, those are open-ended, but you should expect a significant pick up there, too. Antoine Flamarion: He wanted to say engine. Theodora XU: Questions from Julian, ODDO BHF. Julian Dobrovolschi: I have 2. Perhaps the first one is on the core FRE guidance that you gave. Just wondering if you could speak about the drivers for reaching the upper end of the range, so that will be the 50% kind of think about the building blocks. So what would be the step up from 45% to 50%? And the other one is, if you could also say something about the potential gaps that you've identified in the operation model, so perhaps strategies, niches and that you'd like to develop or I think using Antoine's words, innovate, as you enter in this new growth cycle. Henri Marcoux: On the core FRE margin, I provided earlier the 3 main drivers. Obviously, we have the mixed effect driving the core FRE margin. We have, in terms of revenue, the pace of co-investment as well as an important feature. The more we are able to structure co-investment with additional revenue will be as well impacting that. And then you have on the other way around, obviously, all the cost initiatives. And here, we will be most -- we'll be more cautious, notably on extending any geography or extending any services. So difficult to assess in terms of timing, but we are clearly seeing something like 50% could be achieved depending on the pace on deployment on these 3 drivers. Antoine Flamarion: And probably, it will depend, as you know, on the business mix. So if we have more private equity coming, obviously, the operating margin is improving and the plan is really to keep growing at a faster pace our private equity. If you think about it, at the IPO time, we had no private equity, a part of balance sheet investment. Now we are getting close to $10 million of private equity. So in a difficult market because nobody has been waiting for us, private equity is suffering a lot, but the margin will be depending also on the pace of our private equity expansion. Henri Marcoux: But if I may add on private equity, I think you mentioned it, but I think we are the only one to have such differentiating factors, notably this partnering with industrial. We are relying on these 2 vein transition -- energy transition, decarbonization on one hand, aerospace and defense on the other hand. And on both strategies, we've been partnering with the biggest knowledgeable people in the industry, and that provides a key differentiating factor. Antoine Flamarion: Going back to your question on innovation, we really built the firm innovating, and it's been asset class. It just was Henri described, people doing private equity have been generalist. We decided to be specialized just because we said that we're not going to be another LBO shop. So we decided to be vertical. We are studying various vertical right now. So you're going to see us innovating. We want to make sure while we innovate, we are doing stuff we understand. So we don't expect to be active in cryptocurrency or we're in a stick to what we are good at. Its sourcing good opportunities that we understand. We have a lot of idea and we keep having a lot of idea. What changed probably is that we want to make sure that when we launch a new strategy, it needs to be really scalable. In the past, we thought that we had great ideas. So for instance, my colleague will kill me, but we launched something called Tikehau Green Assets, which was an amazing idea, an amazing team, and we have EUR 130 million into the fund. And I must say that EUR 130 million is totally subscale. So we want to make sure that while we innovate, it needs to be really scalable, above EUR 1 billion for sure and potentially make sure it's multibillion. Mathieu Chabran: You should see, I guess, some extension or, let's say, adjacencies. So when launching, let's say, CLO, CLO is a very scalable, but commoditized product. When we launched in the U.S. 4 years ago, we had been operating in London since 2015. The CLO pool in the U.S. because of the nature of -- and the structure of the market is running twice as fast, and we're scaling. We're now pricing our CLO #8 in 4 years when we had 15 in London. When we launched direct lending in Asia, that's because we think that we're getting to the point with the right partnership, the right shareholders the right investors to effectively have these adjacencies of a first fund, a first move that then we'll be able to scale. As Antoine said, our very first direct lending fund in 2007, so it's almost 20 years now, it was EUR 125 million. The last vintage, #6 that we just closed a couple of weeks ago is passed EUR 5 billion. So you get effectively -- all that is feeding of the operating leverage and the operating margin that we were talking about. You should see us expanding in real estate in North America. We've got a 20 billion real estate platform in Europe. We're managing public REIT, private REITs, commingled funds, open-ended funds. There is an opportunity right now that the natural extension into real estate bid debt or equity is made, I wouldn't say, at marginal cost, but it made at a phase in our development that the drop-through is also feeding your bottom line. So that's where you would see some -- you will see some natural expansion of the platform. Theodora XU: Maybe I'm conscious of time. One last question from this gentleman from [indiscernible]. Unknown Analyst: I have 2, if I may. First one is share price, very strong execution, very strong everything, but the share price does not reflect it. So how far is this management team willing to execute its tools in order that the market recognizes its intrinsic value because I think the market is not nearly recognizing the net asset value of its balance sheet. And the second is strategies for risk mitigation for the first of the French government of taxing and everything. So what ideas when we see all competitors, sometimes they have other jurisdictions to make their tax not go higher and higher. So thank you very much, and thank you for the strong execution. Antoine Flamarion: Thank you for your question. Share price, needless to say, not only because as we are the largest shareholder because we still control the employees still control 54% of the firm, we get very frustrated as some of our shareholders. So I think to cope with that, a few things. One, we need to make sure we keep executing and it's painful because you execute and your share price is not moving. So if you look at the slide I like on the EBIT, you started when you lease the asset management was EUR 4 million EBIT. Now it's EUR 150 million. Let's forget everything, okay? I'm launching a new company. I give you a business plan, and I'm telling you that 9 years from now, I'm going to reach EUR 150 million of EBIT, everybody will tell, okay, this guy smoke something because you cannot move from 0 to EUR 150 million of EBIT. So we're going to keep delivering on the profitability of the asset management. And I think it's really accelerating, so that's number one. Number two, the balance sheet, and that's why on purpose, I put this slide, we have really 2 businesses, which are very different. We use the balance sheet to launch the asset management to see to accelerate. But we are fairly convinced that the sum of the 2 balance sheets, the sum of the parts, if I may say, is probably twice at least where we trade now at EUR 16. So we're going to try to keep delivering. But also at some point, if we are not able to move the share price, and it's not only, I think, hopefully, us, the sector, it's also mid-market stock market in Europe is a little bit broken. So at some point, it will come back, and we start seeing a lot of U.S. investors coming to buy European shares, not only doing takeover as Nuveen on Schroder, but we start more U.S. guys coming. So hopefully, it will change the market because we need the market to change. But I must say that if we are not able to change the stock price just doing a regular job and probably increasing the payout for the shareholder, we may took more, I don't know, structural changes. And we already simplified the structure when we listed, as everybody remember, we had a [indiscernible] structure. We simplified the group. So now we are clearly saying that we have 2 businesses. And I'm not telling you that we are going to split the company in 2 companies. But we want to make sure if you are listed that the stock price and the stock performance is working because when you travel the world, everybody is looking at your stock price, you pitch a Korean investor for your direct lending. The first thing he's doing is Google, stock price, flat a little bit down. What these guys are telling me to deliver a lot of performances at their fund level. But -- so we are all on top of that. We are spending a fair amount of time. Now as the asset management is more profitable, I think it's going to be much more easy for us to change that. Mathieu Chabran: There is plenty of structural optionality. I guess that's part of the message we wanted to convey today. I mean we've always been a long-term greedy in making sure we can demonstrate and execute because when you start from 0, 5, you have to show over a cycle, a few cycles that you're delivering, which I'm convinced we are doing. And the rest should follow. If it does not follow, there are some structural optionality. Henri Marcoux: Now your question on France is a key question. We're going to face election... Unknown Analyst: [Foreign Language] Henri Marcoux: In a few months, we are -- I mean, we are dealing with it. And -- but difficult to comment, but we are dealing with it. Antoine Flamarion: And that's why, I think I mentioned it 2 times already, but we make sure we build a very diversified business in terms of asset classes, geographies, both on the asset and the liability side. So we want to make sure we raise money all around the globe, and we want to make sure we invest more or less everywhere in Europe, but also Mathieu mentioned North America, we start doing more and more real estate because real estate is a mess. So we took advantage of that being contrarian. And at the end of the day, we're going to build a global diversified business. And it's changing all the time. The perspective, we discussed Spain and Italy, 10 years ago, when we opened -- so this year -- sorry, in 2025, it was the 10-year anniversary of our Italian opening in Milan, okay? People at the Board of Tikehau told us 10 years ago, "you're opening in Milan. Are you crazy?" And now everybody is going to Milan. So that's why, once again, create, don't compete. We have very strong conviction. France remain France. It's one of the largest countries in Europe when you look at economic footprint, innovation. And so we're going to continue to do stuff in France, but maybe the way we allocate is going to be more diversified. Theodora XU: Well, thank you so much, everybody. Thank you to the speakers, to the audience today for your engagement. We can continue our discussions in a more informal manner with a light cocktail. A big thank you to the IR team that works in the shadow. And thank you very much, and we look forward to build this next chapter together. Thank you.
Operator: Good morning, ladies and gentlemen, and welcome to the Emera Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] This call is being recorded on Monday, February 23, 2026. I would now like to turn the conference call over to Dave Bezanson. Please go ahead. David Bezanson: Thank you, Jenny, and thank you all for joining us this morning for Emera's Fourth Quarter 2025 Conference Call and Live Webcast. Emera's fourth quarter earnings release was distributed this morning via Newswire and the financial statements, management's discussion and analysis and the presentation being referenced on this call are available on our website at emera.com. Joining me for this morning's call are Scott Balfour, Emera's President and Chief Executive Officer; Jared Green, Emera's Chief Financial Officer; and other members of Emera's management team. Before we begin, I'd like to advise you that this morning's discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slide. Today's discussion and presentation will also include references to non-GAAP financial measures. You should refer to the appendix for reconciliations of historical non-GAAP measures to the closest GAAP financial measure. Unless otherwise specified, all financial information referenced is in Canadian dollars. And now I will turn the call over to Scott. Scott Balfour: Thank you, Dave, and good morning, everyone. Before I begin, I want to introduce Jared Green. Today is Jared's first earnings call as CFO since joining us in December. We're excited about the value his expertise and leadership will bring going forward. Jared, welcome to Emera and your first earnings call. Emera is entering 2026 with strong momentum, building on record performance in 2025. Our 2025 results are evidence of both the strength of our strategy and the quality of our portfolio. Our team safely deployed a record $3.6 billion in capital investment, resulting in approximately 8% rate base growth over 2024. In addition, we delivered significant adjusted earnings growth, achieving more than $1 billion in annual adjusted net income for the first time in Emera's history. This performance is the outcome of disciplined customer-focused operational management and execution of our capital plan with investments centered on safely delivering the energy needs of our customers. As we enter 2026, we're confident in our ability to continue to deliver sustainable value for customers and shareholders alike. This morning, we reported annual adjusted earnings per share of $3.49, representing an increase of $0.55 or 19% over 2024. This performance significantly exceeds the upper end of our stated annual EPS -- adjusted EPS growth target of 5% to 7%. We also delivered a 19% increase to operating cash flow, further underscoring the strength of our financial results. By almost every measure, 2025 was our strongest year in the company's history. This exceptional performance positions us to continue making the critical investments required to strengthen our systems and ensure the safe, reliable delivery of energy that our customers depend on every day. Looking back in 2025, our continued financial and operational success highlights the effectiveness of our strategy, the quality of our premium portfolio of regulated utilities and the unwavering commitment of our highly skilled teams. I am deeply proud of our people and of what we continue to achieve together. Much of our success in 2025 can be attributed to strong performance at Tampa Electric. Emera Energy's record first quarter was also a contributor to our performance due to cold weather in the Northeast, which drove higher pricing and market volatility and where market conditions were strong again in the fourth quarter. In both instances, the team did an excellent job of responding to these favorable market conditions. We've made meaningful progress on disciplined operating and management cost management. By sharply -- by staying sharply focused on efficiency, we are helping offset upward pressure on customer bills while continuing to invest where it matters. Technology is a key enabler of this work. At Nova Scotia Power, more modern technologies, including AI tools are being deployed across a number of customer-facing and operational functions from the contact center to generation. This will make it easier for customers to do business with us while improving reliability through earlier detection of equipment issues, fewer unplanned outages and a safer, more efficient system. At Peoples Gas, we're similarly applying AI-enabled technology to improve crew dispatch efficiency, strengthen damage prevention and location practices and reduce outage risk. We're also optimizing upstream pipeline capacity through off-system sales with benefits flowing directly back to customers through a lower purchased gas adjustment. At Tampa Electric, drone and AI technology are being deployed to support inspections at solar sites. This approach reduces manual effort and inspection time, enhances safety and helps optimize asset performance. The result is a more efficient, cost-effective inspection process. In 2025, our operating companies safely deployed $3.6 billion of capital, representing the largest annual investment in Emera's history. These essential investments advance our reliability and resiliency initiatives and support the safe, reliable delivery of energy our customers expect. Importantly, we continue to carefully pace these investments, aligning project timing and execution to balance system needs with affordability impacts helping to ease rate pressure for customers while positioning our systems for long-term value. At Tampa Electric, the team installed an additional 150 megawatts of solar generation in 2025, bringing their total installed solar in service to 1,505 megawatts. These solar investments continue to reduce exposure to volatile fuel costs and deliver real savings for customers. The Tampa Electric team also made meaningful progress on grid resilience, undergrounding 77 miles of overhead distribution circuits in 2025 as part of its Storm Hardening Program. With more than 54% of the system now underground, the grid is better protected from severe weather and supporting improved reliability. 2025 also marked an important milestone for Tampa Electric with the opening of its new state-of-the-art energy control center. This facility brings teams together in a modern, centralized environment that strengthens day-to-day coordination and operational performance and which importantly is much more resilient to the impacts of severe weather, ensuring critical operational and system controls can be maintained. As part of its grid modernization and reliability improvement initiatives, Tampa Electric is also near complete in the deployment of a private LTE network, a progressive and industry-leading means to strengthen system-wide communications, enabling real-time connectivity to increasingly modern system devices to better support critical grid and field operations. At Peoples Gas, the 2025 capital program was supported by a steady residential and commercial growth, requiring continued reliability and distribution expansion investment across the state. Florida is still leading the nation in residential and commercial customer growth rates and signings for future residential business were strong in 2025 as builders and developers remain optimistic about the long-term growth outlook in the state. I'd also like to highlight that Peoples Gas was ranked #1 in the nation in J.D. Power's 2025 residential customer satisfaction study, a distinction that reflects the team's unwavering focus on customers and service excellence. We are extremely proud of this achievement and of the people who made it possible. At Nova Scotia Power, the team brought 250-megawatt 4-hour battery storage facilities into service, delivering immediate customer value by supporting the system during peak demand, including 2 cold snaps already this winter. A third battery facility is on track to come online this summer. The company also executed more than $200 million in the first year of its $1.3 billion 5-year Reliability Plan, consistent with the capital profile supported by all customer representatives as part of Nova Scotia Power's general rate application. In 2026, we plan to execute a record $4 billion of capital across our regulated utilities, part of our 5-year, $20 billion capital plan, supporting the 7% to 8% rate base growth outlined on our Q3 call. This plan is centered on essential investments that strengthen resiliency and reliability while meeting customers' evolving needs. More than half of our 5-year program is directed towards transmission, distribution and gas infrastructure expansion, enabling customer growth while enhancing system resilience through storm hardening, vegetation management and grid modernization. Notably, our capital plan does not reflect any data center-driven growth. While we do not have any data center signings to announce today, we remain actively engaged in discussions and are optimistic about future opportunities. From a regulatory perspective, 2025 delivered steady and constructive progress. We achieved a favorable rate case outcome at Peoples Gas. And in the fourth quarter, the Florida Commission approved an USD 88 million rate base adjustment for Tampa Electric for 2026, consistent with the company's 2024 rate case decision. These outcomes provide important regulatory clarity and reinforce our confidence in deploying the capital needed to support Florida's growth, strengthen system reliability and continue delivering stable long-term value for customers and shareholders. Supported by this strong growth environment and regulatory framework and through a disciplined focus on cost effectiveness and operational excellence, Tampa Electric continues to maintain customer rates that are below the national average. In Nova Scotia, the general rate application continues to progress. The hearing concluded in mid-January, and we are awaiting a final decision from the Nova Scotia Energy Board. This GRA supports critical reliability and infrastructure investments needed to serve homes, businesses and communities across the province while also carefully considering and balancing affordability pressures for customers. The consensus solution brought forward by Nova Scotia Power, which limits the average rate increases to an average of 2% per year across all customer classes over the 2026 to 2027 period is the result of extensive collaboration with all customer representatives and a shared focus on enabling essential investment while minimizing customer impacts. All parties agreed this application strikes the right balance. The consensus filing also reflects a proposal to securitize approximately $700 million of Nova Scotia Power's retiring thermal assets, providing significant customer savings. Together, the GRA and securitization demonstrate Nova Scotia Power's disciplined, thoughtful approach to managing affordability for customers. In keeping with the independent regulatory process in Nova Scotia, the Energy Board will now review the full record and set customer rates. We believe the evidentiary record is very strong, and we expect the decision will be rendered in the next month or 2. If approved as filed, the settlement provides Nova Scotia Power with a clear path to returning to its approved ROE band in 2026 and 2027. And finally, at New Mexico Gas, the sales process is proceeding. The hearing concluded in mid-November, and we're currently awaiting the hearing examiner's recommendation. We continue to expect a positive decision and a closing of the sale transaction in the first half of 2026. I'm also pleased to note that we're extending our average adjusted EPS growth target of 5% to 7% through 2030, while continuing to anchor the outlook to our 2024 results. Extending our growth rate out to 2030 shows our commitment to driving shareholder value over the long term and our confidence in the growth we continue to see in our company. Given that 2025 represented a step change for Emera's earnings with a 19% increase over 2024, we believe maintaining 2024 as the base year remains the most appropriate measure for the long-term growth of our company. With Tampa Electric now representing approximately 59% of our total operating company earnings, new rates in that business drive meaningful increases in our consolidated earnings as we experienced in 2025, but that we would not expect to replicate every year. By moving to a 5-year growth target from our previous 3-year outlook, we are providing greater long-term visibility into our adjusted earnings trajectory that is more closely aligned with our projected rate base growth of 7% to 8% through 2030. This longer horizon better reflects the multiyear nature of our capital planning and regulatory cycles and aligns our disclosure with evolving practices across the North American utility sector where the 5-year forecast periods are increasingly standard. Before handing the call over to Jared, I want to take a moment to acknowledge Peter Gregg, who will soon conclude his tenure as President and CEO of Nova Scotia Power and take on the new role of EVP of Strategy and Policy at Emera. On behalf of the entire team, I want to thank Peter for his leadership, integrity and commitment to serving customers in the province. And we extend a warm welcome to Vivek Sood, who will join us next week as the new President and CEO of Nova Scotia Power. And with that, I'll turn the call over to Jared to discuss our financial results. Jared Green: Thank you, Scott, and thank you all for joining us this morning. I am glad to be here with you for my very first Emera's earning call. So turning over to our financial highlights. This morning, we reported full year 2025 adjusted earnings of $1.45 billion and adjusted earnings per share of $3.49 compared to $849 million and $2.94 per share in 2024. This reflects a 19% or $0.55 increase in adjusted earnings per share over 2024. In addition, we reported fourth quarter adjusted earnings of $167 million and adjusted earnings per share of $0.55 compared to $246 million and $0.84 in the fourth quarter of 2024. Let me spend a few minutes walking through the key drivers of our full year results. Starting with Tampa Electric, we saw a strong performance in 2025, driven by new rates and continued customer growth. That said, some of this benefit was offset by higher O&M, increased depreciation, interest expense and income tax of the growing business. Emera Energy also had a very strong year. Results were supported by favorable market conditions, and the team did an excellent job of capitalizing on those opportunities. At our gas utilities, earnings at New Mexico Gas increased, reflecting the first full year of new rates in the business. Earnings at Peoples Gas were flat year-over-year. So across the segment, results were partially offset by higher O&M and increased depreciation at both of the growing utilities. At our Canadian electric utilities, earnings were lower compared to last year. This was primarily due to higher O&M and depreciation driving lower earnings at Nova Scotia Power as well as the sale of our equity interest in the Labrador Island Link in early 2024. These impacts were partially offset by stronger residential and commercial sales, along with modestly favorable weather in Nova Scotia. Corporate costs were largely in line with 2024. We did see higher interest expense as a result of increased corporate debt outstanding, although this was partially offset by lower interest rates. During the year, a higher share count reduced adjusted earnings by $0.13. And finally, foreign exchange had a meaningful impact on the year. A weaker Canadian dollar in 2025 benefited earnings from our U.S. utilities. Looking ahead to 2026, based on our current hedge adjusted position, we expect that every $0.01 change in the Canadian U.S. dollar foreign exchange rate will have an approximate $0.02 impact on our adjusted earnings per share. Now turning over to the drivers of our fourth quarter results. Many of the factors were consistent with what we discussed for the full year, but there are a few items worth calling out specifically for the quarter. Starting with our Canadian -- our Canadian electric utilities, contributions were lower year-over-year. This was largely driven by higher O&M costs as well as a tax recovery that was recognized at Nova Scotia Power in the fourth quarter of last year. That tax item had a meaningful impact to the utilities adjusted earnings. At the corporate level, costs were higher than the fourth quarter of last year. This is primarily because Q4 2024 benefited from the recognition of a deferred tax asset that did not repeat itself to the same extent in 2025. Corporate results also reflected higher operating expenses and modestly higher interest expense year-over-year. For our gas and other electric utilities, Peoples Gas delivered a strong quarter with earnings up 11%, supported by higher off-system sales. This performance was more than offset by softer results at New Mexico Gas, driven by higher labor and benefit costs as well as lower earnings at BLPC. At Tampa Electric, quarter-over-quarter earnings were essentially flat. Higher O&M, increased depreciation and less favorable weather were largely offset by the benefit of new rates compared to the fourth quarter of last year. And finally, foreign exchange had a modest impact on the quarter. A slightly stronger Canadian dollar compared to Q4 2024 resulted in a modest reduction to adjusted earnings. Our robust earnings growth drove a 19% or $386 million year-over-year increase in operating cash flow after normalizing for fuel and storm deferrals. This momentum translated into strong key credit metrics, including a 130 basis point improvement in the Moody's CFO preworking capital to debt. This improvement reflects significant and meaningful progress towards target metrics. And pro forma the announced New Mexico gas sale, we would have exceeded Moody's 12% threshold. Additionally, our strong financial results contributed to an improved payout ratio of 83% in 2025. This puts us on track to reach our 80% goal by 2027. Before I hand it over to Scott for closing remarks, I want to briefly touch on 2026. With roughly USD 2 billion of the TECO acquisition-related call dates and maturities approaching midyear, we do expect to return to the hybrid and bond markets over the next few months. Debt market conditions remain constructive as we enter 2026, supporting our plan to refinance our June bond maturities. As we continue the process of refinancing the hybrids, which we started in Q4 2025, we'd like to highlight additional capacity in our capital structure for hybrids over and above the USD 1.2 billion issued in 2016. And now I'll hand things back to Scott for his closing remarks. Scott Balfour: Thank you, Jared. As we reflect on 2025, I'm proud of the strong execution and discipline our teams demonstrated across the organization. That performance has created meaningful momentum as we enter 2026, supported by a clear strategy, a strong balance sheet trajectory and a portfolio of high-quality regulated assets. Looking ahead, our focus remains on executing our $20 billion capital plan, completing the New Mexico Gas transaction and continuing to work constructively with stakeholders, particularly in Nova Scotia to reliably deliver the energy our customers expect. This year also marks the 10th anniversary of our TECO acquisition, and it's notable that we have now invested more capital in our Florida utilities than the entirety of the original purchase price, a milestone that underscores how that transaction transformed Emera and created long-term value for customers and shareholders alike. With a solid foundation in place and strong visibility into our growth outlook, we are well positioned to continue delivering sustainable value for customers and shareholders in 2026 and beyond. With that, I'll be happy to answer your questions. Operator: [Operator Instructions] And your first question is from Maurice Choy from RBC Capital Markets. Maurice Choy: Just wanted to start with a question about the extension of growth rates. So obviously, you are doing this for EPS all the way through to the end of the decade. And I wonder whether or not you could indulge us in what your outlook is for the dividend? Obviously, you've got 1% to 2% through to 2027. Is that also something that you think the Board may consider extending? Or put differently, what do you see the payout ratio being at the end of the decade. Jared Green: Maurice, as far as the dividend, we do like the 1% to 2% dividend growth that the organization is working within. We like seeing the trajectory of the payout ratio starting to decrease. If we were to look back a couple of years, we would have had a target of looking kind of 70%, 75% as a good payout ratio for the organization. We still have that belief. And as we do progress towards kind of that level, I think that you'll see that moving along. Maurice Choy: And if you could just finish off with a question on the data center discussion that you had in your prepared remarks. Given your optimism of future data center opportunities arriving, what are some of the early stakeholder engagements that you're doing right now and also perhaps power generation requisitions that you think you might do in the very near term to facilitate some of this power load coming on? Scott Balfour: Yes. Thanks for the question, Maurice. I'd say that Tampa Electric is involved in a number of discussions with potential data center developers and operators is in advanced system planning work with a number of them and continues to be optimistic that we're going to see some element of that kind of large load activity within its service territory. As it relates to generation, the current plans are similar to what we've shared before. We continue to invest in solar in the 150 megawatts to 200 megawatts a year range. As I said, we put in place 150 megawatts in '26 and expect another 170 megawatts in '27 -- sorry, I got myself advanced the year, 150 megawatts in '25 and another 170 megawatts in '26. And as you know, we are in the queue for 2 H-class machines from GE that would continue to provide generation support for the growing generation needs in Tampa Electric service territory, potentially including data center-driven load. So those would be the sort of the key aspects. And as I say, we're hoping that we'll see some of those things firm up as this year progresses. Maurice Choy: Just as a quick follow-up. I think in your prepared remarks, you mentioned that the CapEx plan that you have in front of you doesn't materially include much by way of data center investments. When we think about this extension of 5% to 7% EPS growth, would you say that the data center growth when it does come, is incremental to this 5% to 7% EPS growth target? Or has it all been baked in already? Scott Balfour: Well, no, I would not -- and it's not baked in already as to -- I mean, from our perspective, one of the biggest advantages and opportunities we see with large load additions into the Tampa service territory is the impact that it can have on broader customer affordability, helping to reduce rate pressure for other customers. And yes, depending on how this activity unfolds, it could drive the need for incremental investment in order to support those needs over time. And yes, that could contribute positively to earnings over time. But we have not assumed any of that within our current rate base forecast or within our continued 5% to 7% EPS guidance. And as I say, we see the primary benefits of attracting that kind of customer load is reducing rate pressure for customers. Maurice Choy: And my congrats and welcome to Jared and also to Vivek and Peter for the upcoming transition. Operator: Your next question is from Rob Hope from Scotiabank. Robert Hope: Just regarding the extension of the EPS outlook out to 2030, how should we think about the growth range in the context of Tampa Electric returns and rate filings? Which could move you to the top end of the range? And what could move you to the bottom end of the range, especially given the fact that you do have a step-up in earnings when you do have new rates at Tampa? Scott Balfour: Yes, Rob, thanks for the question. I think nothing new here in terms of the profile. I think for Tampa Electric, similar to most utilities, certainly those within our portfolio, generally, when new rates are secured as part of a regulatory application, often, we're able to earn in the upper half of the band if we're prudent in terms of our capital allocation and execution and the management of costs. And then as we get closer to the need for rates, typically every 2 to 3 years, depending on the capital investment profile, then, of course, the ROE profile starts to reduce. And we might see in the lower half of the range in the year of regulatory filing to secure new rates, which is really an indicator that the business requires those new rates to support the continued investment of capital. So that's the profile we expect with Tampa Electric. And of course, the other big driver is weather. And if we have favorable weather, then that can contribute positively. If we have less favorable weather, of course, that can drive ROE profiles lower a little bit. And generally, we've been pretty fortunate over the last few years, but you saw a bit of that impact in the fourth quarter, of course, with less favorable weather impacting results in a couple of our operations. Robert Hope: The 2026 outlook has Nova Scotia Power earning at the lower end of the band, even with the partial year of new rates. If the regulatory or political situation in Nova Scotia worsens. Could we see you materially cut capital and reallocate those funds to Florida, which the market views as more favorable? Scott Balfour: Yes, I'll pass it over to Peter in a second. But yes, there's always -- if there isn't regulatory support or the capital investment profile that's been put forward, then, of course, that capital won't be able to be invested. And so that could have an impact. But we continue to believe the evidentiary record and the capital profile that's been put forward and supported by all customers represents the right balance between the investments needed and the impact on affordability. But maybe I'll pass it over to Peter to take it from there. Peter Gregg: Thanks, Scott. Rob. Yes, I'd just underline our confidence in what we put before the regulator and our reliance on the independent regulatory process as well. It's important to remember that we did work with all of the customer representatives to put together a consensus agreement. So we've got support from all of the customer representatives. As Scott said, we think the evidentiary record is strong. So we do have confidence that we'll get a good decision from our regulator. Operator: Your next question is from Mark Jarvi from CIBC Capital Markets. Mark Jarvi: Just sticking with Nova Scotia, just there was some pushback around some of the terms of securitization. Just wondering where those conversations are, anything you've provided and sort of feedback to the government and when we might get clarity on that? Peter Gregg: Mark, it's Peter. So we continue to work with the province and are committed to continuing to work with the province to demonstrate the benefits to our customers through the proposed securitization. I guess all I can say is continue to address questions that come in from that, but confident that what we put forward is in the best interest of customers and look forward to what the Energy Board has to say on that as well. Mark Jarvi: Can you remind us again in terms of what cash has been provided and when the next sort of payments were expected? Scott Balfour: Sorry, not sure I follow your question, Rob (sic) [ Mark ] one more time. Mark Jarvi: No. I just can't remember, was all the securitization paid upfront? Or was there installments and when sort of what the next planned installment if there was? Scott Balfour: So there's been 2 securitizations that have been completed. So there was $117 million and then another $500 million that was done both relating to unrecovered fuel costs, the FAM. The proposed securitization as part of the general rate application is an additional $700 million that relates to the retiring thermal assets, the coal plants that are required to be retired by 2030 under provincial and federal legislation. Mark Jarvi: And then just going back to the EPS guidance. Anything else you guys can share in terms of any key assumptions, whether it's expected ATM usage or Jared, you brought up the refinancing in 2026 in terms of how much more you issue this year at the holdco and the rates you assume there? Jared Green: So I don't know if there's a whole lot of difference in color to give you on the financing plan on that side. Obviously, we do have the shelf prospectus is outstanding for the ATM, and we would be looking to utilize that throughout the year. Also remind on there that we do have the DRIP program. So we'd be accessing the equity through both of those mechanisms. As far as the upcoming financings, so June 15 is the date that we're coming up to that anniversary date. And so just the ability to get out a little bit ahead of that. And as we noted, we do have some incremental capacity as Emera has grown since the original size. And so being able to utilize that just in the hybrid market is something that it has obviously good credit components on it. And we are seeing, as I said before, a strong market in that side. So we're seeing the spreads and the cost there is something that we are liking. But going back, the overall financing plan for the $20 billion program over the 5-year period is very similar to what we have been saying over this last year. Mark Jarvi: And then you made a comment, Jared, about you would have been above the Moody's threshold. Can you just kind of outline where that would have been? Jared Green: So that would be with the pro forma of the closing of the New Mexico Gas. So we see the Moody's metric with the adjustments through there. We're at about 11.6% is what we ended the year at. And then we do see on an annualized basis, there's probably about 50 basis points of credit related to the closing of the New Mexico Gas. So that's where we would see that. Operator: Your next question is from Ben Pham from BMO Capital Markets. Benjamin Pham: A couple of questions on the New Mexico transaction. Can you give a context on the timing? Again, I know you had initially pushed it out from late last year to early this year because of the hearing change. And I'm curious what's driving the recent timing delay, if I can put it like that? And then also, is this decision then linked to the pending Blackstone application as well that hearings in early February? Scott Balfour: Yes. Ben, so as I mentioned, the hearing is complete. We believe the hearing went well. And now we're just awaiting the decision or the recommendation from the hearing examiner, which could be any day now. And then following that, the commission would meet and if the commission then approves the transaction, we could close almost immediately right after that. So we don't really have a good line of sight as to the exact timing of the hearing examiner decision. But as I said, it could literally be any day now. And no, we don't believe that there's any sort of knock-on impacts or connection of timing of this to the TXNM transaction with Blackstone. Benjamin Pham: And maybe going back a second on the NSPI at the sub-security situation last year weighed on your earnings to some extent. So where are you with that now in terms of remediation and any potential costs this year? Is that some of that built in the ROE expectation for NSPI for 2026? Jared Green: Sorry, Ben, could you repeat that again? I didn't think I caught the front end of that. Benjamin Pham: Yes, absolutely. You had the cybersecurity incident at NSPI impacted your earnings in that franchise. And my question is, is that the -- what's the remediation of that now? Is it pretty much all rectified? Is there impact to 2026 -- related to that at all? Peter Gregg: I missed that. We still remain confident that insurance will cover the costs -- largely cover the cost of this incident. We did expense the amounts in 2025, as you've seen in our financials. We're making really good progress. One of the biggest impacts we saw was the impact to the -- what we call the head-end system that connects the meters, AMI meters to our billing engine. We've made very good progress on that. We've got over 85% of our meters now communicating with our billing system and we'll have 100% of those meters communicating by the end of next month. So we continue to make very good progress. I don't expect to see any significant impact on 2026. Operator: Your next question is from John Mould from TD Cowen. John Mould: Just wanted to get a little more color on your coal assets. And I appreciate -- sorry, in Nova Scotia, and I appreciate you don't have responsibility for system operation anymore, but I'm just trying to get a sense of their importance to provincial reliability and how you're thinking about their actual operations through 2030 in the context of the phaseout timeline and maybe some color on the importance they've had for reliability in some of the recent periods of high demand and stormy weather. I think that would be helpful. Peter Gregg: Sure. John, it's Peter. I'll take a crack at that. So we do continue to make plans to have those coal assets shut down by 2030 as required. But we've seen electrification growth, and they do continue to contribute to reliability. The independent electricity system operator here in Nova Scotia has recently -- they just got the environmental assessment approved last week for 2 sites to put in some fast-acting gas generation. That's a really important step in terms of replacement energy and capacity for us to shut down those coal plants. We have had to make some tweaks to our plans. If you look at the most recent GRA, we've asked for the ability to spend up to $18 million to invest in our Lingan 2 generating assets because it continues to contribute meaningfully to reliability, especially during cold snaps. So that's $18 million to sort of keep it around until that 2030 phase out. So managing the system while new resources come online, but knowing that we have a legislative requirement to shut down the coal by 2030. Scott Balfour: And the only thing I'd add to that, John, is what Peter spoke about is all part of a plan, executing an approach to achieving the 2030 goals that was announced by the province and supported by the utility that in order to close those coal plants, really 4 key components to be able to make that happen and achieve -- both the provincial and the federal legislation. Two of those things, the responsibility of Nova Scotia Power, which is the addition of 150 megawatts of batteries. And as mentioned, 2/3 of that is now in service. The other 1/3 will go in service this year. And then the other part that is Nova Scotia Power's responsibility is the tie line, the transmission line interconnection between Nova Scotia and New Brunswick. The independent system operator is managing the procurement of the additional renewable resources, wind resources and the gas generation that Peter mentioned. It's the combination of those 4 things that enables the achievement of those 2030 goals. And as I said, the portion that Nova Scotia Power is responsible for is in progress and well on hand and certainly no risk to be able to deliver on its commitments to achieve that 2030 goal. John Mould: And then I'd just like to ask about potential new markets. You're on the list of eligible transmission bidders in Ontario's competitive transmission procurement. You do have underwater line development experience. Province is also running this PULSE Panel on its local distribution utilities. I'm just wondering if you could give us a sense of your appetite more broadly to deploy capital beyond your current markets and how Ontario might fit into that? Scott Balfour: Yes. So we're certainly paying attention to opportunities in that market. And yes, the decision by the Province to look to procure transmission interconnection between Darlington and the Port Lands of Toronto, downtown Toronto by way of underwater high-voltage DC cable is definitely something that we know something about. Of course, having built and now operating the 2 longest subsea cables in North America and doing that, I think everyone would agree quite successfully. So that's certainly an opportunity we're paying attention to, and we'll await the procurement process that the Province decides upon and what's going on with the LDC market in Ontario, we pay attention to as well and looking forward to seeing what opportunities might get created in Ontario. But in the meantime, our focus continues principally to be on the execution of the organic growth that we've got in the portfolio, that $20 billion that I mentioned that continues to drive strong EPS growth guidance based upon that extension of that 3-year guidance to 5 years as we talked about. Operator: Your next question is from Elias Jossen from JPMorgan. Elias Jossen: Maybe just thinking about the overall generation mix shift down in Tampa. Can you guys just frame, one, how the discussions are evolving with regards to generation type? I know you have a lot of different options there. And then maybe secondly, just more broadly, what the outlook is for renewables in the state long term, recognizing that you continue to deploy a good mix shift of renewables annually. Scott Balfour: Yes. Thanks for the question. So for Tampa Electric, pretty similar to other utilities in the state, natural gas is a really important part of the generation mix there. Over 70% of Tampa Electric's generation is natural gas. And as mentioned, we're looking at adding more of that in order to meet the growing needs and the growth in Tampa Electric service territory. But we also do continue to invest in solar and would expect to continue to do that for the next few years. Obviously, the impact of the One Big Beautiful Bill and the tax credits create some uncertainty in the long term. But certainly, over the profile of our capital investment -- 5-year capital investment forecast that's provided. You'll note there continues to be meaningful solar investment in Florida because we can continue to demonstrate that it saves customers money. And doing that on an economic basis continues to be an important part of how we meet the generation needs of customers in Tampa. So for the time being, continued investment in solar and some additional gas generation capacity that would be the primary generation sources for us in Tampa. The one remaining coal unit that we have is used very, very rarely, and the team is looking at what its retirement options might be in the near term. Elias Jossen: And then maybe sticking with Tampa, I know there's been a lot of discussion about data center opportunities, but we've seen others in the state structure sort of large-load tariffs. Is there any color you can provide about the nature of the discussions you're having, whether that's regarding size of the opportunities or just overall structure, again, given the sort of the other contracting we've seen in the state? Scott Balfour: Yes. So thank you for the question. And yes, one of our -- one of the other large investor-owned utilities in the state, as you know, had a large-load tariff supported through its settlement -- approved settlement of a recent rate case. And without surprise, the kind of conversations that we're having, the approach that we've taken to large-load tariff is completely aligned to that, which is really ensuring that these new large loads, data center-driven large loads fully pay for the cost, the incremental cost that is required to serve them and contribute some portion to the broader system in order to, as I mentioned before, help reduce the rate pressure on the socialized system on other customers. So that's very much aligned with our approach. And I'm sorry, I've now forgotten the second part of your question. Size, yes. Really, what we've been articulating over the last year or so is we've got the capacity to serve in 300-ish megawatts in the near term and the ability to grow that modestly over the years ahead. So we're not talking about the kind of massive multi-gigawatt type opportunities that some are discussing, but very incrementally helpful to all stakeholders to the extent that we're able to attract some of this large load into the Tampa service territory and the team is very focused on ensuring it's positioned to be able to meet that need. Operator: [Operator Instructions] And your next question is from Patrick Kenny from National Bank. Patrick Kenny: I guess just on Emera Energy with the performance in '25 here exceeding even the previously revised guidance. Just wondering what you're expecting to change or, I guess, normalize here over the near term in terms of market dynamics? Or should we be thinking about 2026 as having a similar upside potential? Judy Steele: It's Judy. Yes. So we've kind of provided the guidance that we think 2026 will be in line with 2025's results. We're still not changing what we consider our normal guidance. Clearly, the weather in the last -- especially over the winter and then the first quarter of last year has been a little abnormal, which has been good for us, but we keep the general guidance the same at 15% to 30%. And when we see conditions that tell us that we should update people for a little bit of a change, we'll do that -- deal with it that way. So again, I will reiterate though that we do think that 2026 will be closer in line to 2025. Patrick Kenny: And then I guess just stepping back and looking at the $20 billion capital plan, can you just remind us maybe where you might have certain flexibilities in terms of pushing certain projects out if cost inflation or FX rates move against you along the way? I'm just wondering how much flex you might have to be able to manage any affordability pressures that might pop up if need be? Scott Balfour: Yes. Let me start, and then Jared can add on. I think, Patrick, generally, our thinking and approach traditionally has been that 7% to 8% rate base growth guidance is kind of the right place to be and to the extent that we see inflationary pressures on projects start to drive costs up or as you mentioned, foreign exchange impacts or tariffs or whatever the case may be, then generally, yes, we would be reprofiling a little bit because we do want to make sure that we're not putting too much pressure on rates for customers. So I would not be expecting that we'd be sort of seeing those pressures drive our 7% to 8% guidance higher, but rather really just creating more durability, sort of a longer profile to continue to see that kind of rate base growth. But maybe Jared can give a little more color. Jared Green: No. Just adding on, Scott, for that. From a financial perspective, probably very similar to what we have seen in the $20 billion side. The scope of what goes within that utilities do have some ability to adjust that through time. But with, as Scott noted, customer affordability being a key factor in there, safety, reliability, customer growth are all legs to the stool that come into factor when you're looking at these investment plans. So we see -- we have pretty good comfort in that $20 billion forecast. And as Scott said, programs that might get pushed out a little add more to the durability of that growth program. Final color, I'll just put on that is we do feel quite confident in the durability of this 7% to 8% growth range into rate base. It's one where again you can factor in all 3 legs to that stool of customer affordability, safe, reliable and the sustainability that goes within it. So we do see a lot of good longevity to that growth as well. Patrick Kenny: And I know it's a relatively small investment for NSPI, but maybe just on the New Brunswick, intertie -- would you have an update there on where things are at from an engineering or construction standpoint and how things are progressing towards the 2028 in-service date? Peter Gregg: Yes. Patrick, it's Peter. As you know, we got approval for that in the fall. We've been doing land preparation forestry work through the winter. So doing the tree clearing. We expect to be doing foundation pours in the spring. So everything well on track for that '28 in-service date. Operator: Thank you. There are no further questions at this time. Please proceed. David Bezanson: Thank you all for your interest today. That wraps the call. Have a great day. Operator: Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect your lines.
Nevada Attorney General Aaron Ford says President Donald Trump overstepped his authority when it came to tariffs. He says he was not surprised by the Supreme Court's ruling.
The US is experiencing near-historic underperformance relative to the rest of the world so far this year. The US S&P 500 (SPY) is basically unchanged YTD following today's declines, whereas the rest of the world (ACWX) is closing in on a double-digit gain.
UK businesses are facing uncertainty and higher costs as Donald Trump's new global tariff hike is set to take effect from Tuesday.
The Supreme Court struck down Trump's tariffs, but we expect the Office of the US Trade Representative to pivot to a plan B. Tensions have been rising, but we don't expect these developments to derail global stock markets or end the business cycle.
Nassim Taleb, author of “The Black Swan” and distinguished scientist at Universa Investments, warns that markets are underpricing structural risks while overestimating the durability of recent AI leaders. Speaking with Bloomberg's Natalia Kniazhevich, Taleb also weighs in on US tariff policy and the market impact of increasing tensions between Iran and the US.
There's plenty of money on the sidelines that could move into stocks Investors keep on building their cash war chest. Assets in money market funds currently stand at $7.7 trillion—which equals roughly one-tenth of the size of the entire U.S. stock market—down just slightly from their all-time high of $7.
US stocks fell in the wake of tariff tumult that saw the Supreme Court cancel a key part of President Trump's tariff policy — only for him to vow new levies over the weekend — stoking fresh trade jitters as investors dumped companies seen as potential AI losers.
Section 122 Tariffs: Presidents can implement tariffs under Section 122, like the ones Trump imposed in the wake of the court's ruling, “to deal with large and serious United States balance-of-payments deficits,” or to stop the U.S. dollar from plummeting in foreign exchange markets. The tariffs are capped at 15% and cannot be in effect for more than 150 days, meaning they're more limited than the IEEPA tariffs.
After a turbulent start to 2025 that included a roughly 20% drawdown in two months, followed by an aggressive rally of around 45% off the April low, investors heading deeper into 2026 are dealing with a market that has reminded everyone just how fast conditions can shift.
Gibbens Capital Management CIO Mark Gibbens breaks down where he sees opportunity in a volatile market, from AI and tech to banks and small caps—and why this pullback may be creating long‑term winners. 00:00 Introduction 00:08 Tariffs & Market Outlook 01:05 Buying the Dip Strategy 01:27 Tech Rotation Shift 02:38 Current Buying Opportunities 03:54 Nvidia Earnings Impact 04:35 AI Race Leaders 05:23 JPMorgan & Financials 06:35 Shopify Opportunity 07:34 Gold vs.
The Substack post envisions an economy in 2028 in which AI has triggered mass layoffs and disrupted large-cap stocks like DoorDash and Uber.
Jason Oxman, president and CEO of the Information Technology Industry Council, says the tech industry needs certainty around tariffs in order to invest in AI. Oxman discusses the current tariff landscape with Caroline Hyde and Ed Ludlow on “Bloomberg Tech.
US stock benchmarks retrace to start the week as tariff uncertainty reigns. Indexes remain at inflexion points and will face key tests this week.
ETF Action Founding Partner Mike Akins joins CNBC's Dom Chu on ‘Halftime Report' to discuss the new dichotomy in the world of ETF investing, and which side is poised to emerge as the winner.