Lectra SA ($LSS)

Good morning to all. Thanks for joining us this morning. So the shareholders' meeting is broadcast live on the Internet, translated into English. We have people online and all our major shareholders. The agenda for the day, I'll introduce the speakers, then we'll have the opening formalities and with Olivier will present the key highlights and results 2025 before question and answers. Sorry for those online. Questions and answers will only be in the room, and then we'll have reading of the statutory auditors' reports, presentation and voting on resolutions and closure of the meeting. Speakers, Celine Abecassis here present, who will address core compensation; Anne Borfiga next to me; Olivier du Chesnay on the other side. Flora Camp, Aurelie Lalanne, Jean-Christophe Pernet, statutory auditors in the front row. Thank you. So I'll hand over to Anne for the opening formalities of the meeting.

Thank you. Good morning. So as you know, we need a bureau that is made up of Daniel Harari, who will chair the meeting as Chairman of the Board; 2 scrutineers, Jerome Viala and Jean-Pernet, Olivier who's agreed to be the second scrutineer. Thank you, Jerome, Jean-Pernet, and I will act as meeting Secretary. So just a brief reminder shown on screen is the schedule around the convening of the shareholders' meeting with the various dates that, I won't go through. Just all formalities were complied with within the legal time frame and all documents pertaining to this meeting are available on Lectra's website or made available to you at the Paris head office. So if we move now to the quorum, we've just recovered the quorum. Over 90% is the quorum. So we can, therefore, begin this meeting, and we can, therefore, deliberate and take valid decisions. I won't go into the details of quorum calculation. We have over 90% of votes that represented essentially votes online and some of you will today as you entered the room. So that's for the formalities we can begin. So the documents are available at the meeting. Everything is fine. We can get underway. We're going to hand over to Daniel in a moment, who will run through the highlights of 2025 and then Olivier, who will discuss the 2025 financial results.

I have a very important mission here is not to fall behind the stage. There's a bit of a trap there. I want to be here next year. So just going back over the highlights for 2025 was full of market events in 2025, a lot of activity on our market. So 3 main highlights mark 2025. First of all, economic and geopolitical uncertainty that followed the April 2 liberation day introduction of tariffs, very difficult to understand. Generally speaking, zero announcements made by President Trump applied as announced. We had to look at the implementation orders once by one. There were major repercussions. For example, the major fashion suppliers in Asia went from positive to plus 5% down to negative 15% real upheavals unable to export at all to the U.S. and then limited decrease of revenue, thanks to recurring revenues and transformation towards SaaS, tight cost management last year, another year of strong free cash flow generation and negative working capital strengthening an already robust financial position. When we look at how our markets evolved, firstly, fashion. The chart top left shows that within a space of 2 months -- of a few months, there was a transfer of countries in which we were manufacturing apparel, strongly in Asia with a drop in China and impacts in other countries. As announcements unfolded, the situation changes and customers shifted their orders from one country to another. This disruption was heightened and our customers were in wait-and-see mode before investing. When we look at the 2026 outlook, we now know a bit more, but clothing retail sales were stable in 2025. But in fact, they increased early '26 in fashion. Luxury is today disrupted by the war in Iran, but overall held up well. Everyone was worried about luxury sales levels. And of course, international policy remains uncertain, driven by the war in Iran, far simpler to read because everyone is talking about it, whereas tariffs, no one was talking about it. So it was more difficult to explain the effects. When we look at the automotive market, perhaps key point. As for fashion, the year 2025 was stable. Everyone was talking about automotive crisis, but production was stable. Sales were stable. What actually happened is that knowing that the automotive sector remains a local market that is we manufacture close to where we sell. The real revolution automotive came from the first place taken in e-vehicles by China, very strong in China. There are 120 EV brands. The government is seeking to reduce that number to 20 over the next 5 years. And the main play, BYD has cut its prices by 30% in China to get others to fold or to consolidate the market with a strong reaction in China, ripples across Asia, also in Europe because Asian manufacturers are coming to Europe, threatening European manufacturers idea of doing the rounds. They were subsidized by the Chinese government. Well, that's no longer the case for a number of years now. And actual Chinese consumers had advantages to buy an EV. It's the case across the world. And put simply, it takes 3 months to design a new BYD, takes 3 years to design a new VW. So they're far better in production, in design, in quality. So today, the Chinese industry is in the lead and has led the European manufacturers to adopt a defensive mode. The U.S. market, there are no sale of Chinese vehicles in the U.S. Turning to furniture, slight growth in the market there. What disrupted the market with tariffs, which are higher on furniture than other markets because there was a lobby in the U.S. to protect the furniture market that has a very considerable level of manufacture in the U.S. And these tariffs are higher than they are today for fashion and for automotive. Second point that impacted generally, you sell -- you change your furniture when you move and real estate market was badly hit, fewer moves, less furniture board, but sales remain stable. No crisis situation on the whole. Today, 3 months is a year. That is to say the situation at the end of March was different to that we saw at the end of December. But overall, what we can say is that retail fashion sales are up significantly in Q1 that automotive sales declined in Q1 across the world and furniture sales are holding up with changes. We're manufacturing more in the U.S., less in China because import costs are higher. All these markets are very disrupted by market shifts and new rules introduced. I'm going to hand over to Olivier for the 2025 results. I'll come back the road map in a few minutes.

Thank you, Daniel. Good morning. I'll just run through the 2025 results a few months back. So the method -- look at the top right of this slide, we are beginning this year with recurring and then nonrecurring and then the P&L. The first indicator is the ARR, annual recurring revenues, the performance indicator on our SaaS offers. Early '25, we're at EUR 88.9 million ARR with a growth of 14% across 2025 to reach EUR 101 million. When I look at these 2 numbers using the same exchange rate, it's exchange rate of balance sheet, it's 1.04. But when we report a level of ARR at the actual exchange rate at the end of December '25 is 1.17. That's why ARR at the end of 2025 stood at 97.2, 40% growth with for '26, '27 -- '26, '28, we're targeting 15% growth. So all our offers have found their customers in SaaS for 2025. So that was for ARR. Let's turn now to revenue. So recurring revenues that accounts for 75% of total revenue, the box in the center, we see that recurring revenues up 2% in 2025 versus 2024. Don't be surprised by the size of the columns in terms of method, the size of the '24 column using the average exchange rates of 2024 and for '25, the average exchange rate is 25, there was a lag '24, '25. The dollar weakened '25, but like-for-like, plus 2%. There are 2 parts. On the left, you have recurring contract revenues. Recurring contracts, 3 types in SaaS subscriptions from the ARR orders, the timing between the order intake and the SaaS revenues, SaaS, Software-as-a-Service, that we sell subscription SaaS revenue grew by 14% in 2025. And then we have the software maintenance contracts, software sold with a perpetual license. Most of our new offers are sold SaaS. It's going to reduce over time. You see the decrease is modest single-digit. And last year, you have the revenue maintenance contract. Every time we sell equipment, we have maintenance contract. That was up 2%, slightly weaker than in previous year linked to renegotiations with customers and with the macro situation. Second component on the right, consumables and parts are sold when the customers' plants run 2025 with tariffs, with macroeconomic context, we have a decline in macro, but revenue, consumables and parts only decreased by 40%, resilient in a challenging macro context. At the end of the year, we had that 4% trend, and we've seen no recovery at the end of 2025. I'm now moving to nonrecurring activity. Here, we always start with orders. So these are the orders of new system, new systems, equipment, perpetual software license and training consultant. On the left, you have all the orders of the year. Total orders for the years in 2025 were up minus 17% versus 2024. And the year was different. We started out at plus 2% the year before liberation date and then a decrease in subsequent quarters of the order of 20% per quarter. But the amount we booked in orders stabilized in Q2, Q3, Q4 2025. This 17% decrease isn't similar across regions. On the right, you have the breakdown of the left number by region, the region hardest hit. Asia Pacific, it was down 26% over the previous year, got off to a good start in 2025 was the most affected by the tariff was in 2025, decreased 26%. Americas, slightly down 14%. Europe held up better. America also hit by tariffs because part of our activities done in Mexico at the beginning of the year, tariff war between Mexico and the U.S. And lastly, on the right, you have the rest of the world, North African countries, Turkey, Egypt, there we had different types of movements, Egypt up, Turkey down. Still these orders, the same information, but by sectoral market so fashion, furniture, automotive that Daniel mentioned previously, the most impacted market is the second cartridge, automotive, a big slowdown in investments in '25 versus '24 with a decrease in investments by 30% in our customers. Automotive has 25 clients representing 80% of our revenues. So those clients, once they've decided to stop their CapEx they can stop quite soon. Fashion, our leading market, down 14% last year, impacted by tariffs. We still have -- it's the leading market, but down 14%. Furniture as long as we see no pickup in activity on furniture and real estate will be down by some 30%. Other industries, aeronautical, technical textiles. These are investment cycles are rather different, less exposed to the macro context. Last year, we had up 21%, about EUR 14 million. So from orders, we move to revenues. So the orders are on the left, minus 17% orders between '25, '24, and you find the various types of orders of new systems. You have the software perpetual license equipment, training, consulting, minus 17% of orders, but only minus 12% on the right of revenues. Why? At the end of 2025, we delved into the order. We had less ordering because we delivered more than the order intake. That will impact the Q1 revenues that we reported last night. So recurring activity, nonrecurring activity. If we turn to the P&L. Here, you have the main aggregates of the P&L growth in recurring revenue that accounts for 75% of the total, but decrease nonrecurring. That's a decrease by 2%. Total decrease of total revenue, no decrease in the gross margin. That's to say we've sold better in terms of margin between '24 and '25. Overhead slightly up. We'd increased salaries early in 2025. We offset this increase through cost reduction, but full year '25, we were still up that our recurring EBITDA and EBIT are down with an EBITDA of almost EUR 80 million full year 2025. So a decrease linked to that part of the activity. This slide just summarizes all the items between '24, the result generated in 2024, EBITDA and 2025. Between the first 2 columns, you have a small amount that's EUR 0.3 million is linked to the fact that in '24, we did the acquisition of Launchmetrics 26 days after the 1st of January. We have a scope effect neutralized with 26 days. And you see that between EBITDA '24 and 2025, EUR 91.4 million and EUR 84.4 million, the various effects on EBITDA, either revenue or cost related. You see the first that negatively impacted EBITDA in '25. We had less order intake, less activity on nonrecurring revenue. But you see the revenue recurring contracts, that's the green bar, 11.3% contributed positively. We had growth of 5% revenue recurring contracts and its revenue with a high margin. It contributes strongly to group profitability, and then fixed costs that decided a bit that lowered EBITDA to arrive at EUR 84.4 million EBITDA using the '24 exchange rates, better for us and the never effect in exchange rates because the dollar went to EUR 1.13 to EUR 1.16 full year 2025. A few bits and pieces about the balance sheet. It still is very sound. We have very little debt. The financial debt is less than EUR 100 million. It actually is EUR 86.4 million at 31 December 2025. We look at the cash, EUR 65 million. And so the net debt stands at EUR 21 million. So we are very little leveraged compared to the competition. And then cash flow, and that is, of course, what enabled us to have so little by way of debt. The year 2024 was historic because we had EUR 160 million in cash -- sorry, EUR 71 million. now we have only EUR 75 million -- EUR 55 million -- EUR 57 million. Now it looks like a lot less, but still EUR 57 million is quite significant in '25. And we can see that WCR is negative because we're not consuming any resources at all. And now Daniel will have the floor.

All right. Thank you, Olivier. Let's go to the strategic road map of the 3 preceding years. You may remember that in 2023, we suggested that we should monitor this on an annual -- year-by-year on an annual basis. But if you go back to the story so far in the 50 years of Lectra, we had 4 different strategies. The present one is Lectra 4.0. That's the fourth strategy that was launched in 2017 with 3-year plans, and we have implemented and monitored that plan. And so we had reports at the AGM, but of course, throughout the year at Board meetings. So if you look at the period 2023 to 2025, right up there on the screen, you can see that there were 3 objectives: number one, we wanted to take full advantage of the new scope of the company to gain in growth. We had bought back Gerber, who was our main competitors in 2024. And we generated synergies, not just in terms of efficiency, but costs in absolute terms because we're looking at EUR 12 million to EUR 18 million in cost savings by bringing the 2 companies together. If you look at the profits of both companies, plus EUR 18 million. In fact, we got at EUR 40 million additional savings in 2025. So we have a plus or minus. Why? Because we certainly took advantage of the synergy, but we didn't generate much more in terms of revenue in view of what Olivier said. So in terms of profitability, we were shielded. But unfortunately, there was not much growth by way of revenue. Then we want to increase the share of SaaS in total revenues. You may remember what Olivier told you, this is something we worked hard on, and we developed quite nicely. But then the third part of the strategy was to take external growth opportunities. There were 2 significant acquisitions, TextileGenesis, and they engage in traceability and then Launchmetrics. That's what Olivier mentioned earlier on this is marketing on the fashion industry. On the fashion market. Now -- if you look at the situation 3 years down the road, our market position is unrivaled. We have a leadership position on all markets. Our offer is robust, relevant in line with the market expectations. Most SaaS offers were launched anywhere between 2018 and 2022, and they all were well received by the markets. We have dozens, if not hundreds of customers using them on a daily basis. It's only just beginning. We doubled our size with Gerber, but also Launchmetrics. We have a global footprint and the revenue is well balanced around territories and our image as a technological company has been boosted. We got lots of awards for innovation, but we were also recognized by our clients as being very relevant to meet their concerns. Now then in terms of revenue, we have 75% of recurring revenue. We have a security ratio, 75%. What's that? That's an indicator we set up a few years ago. It looks at the percentage of overheads as a ratio to recurring revenue. So you work out the gross margin, and that covers 96% of overheads. So no matter what happens, and we can see this in Q1, even if we're not doing as good as we would like, we still are coming out ahead and across the breakeven is reached sometime in mid-January. Very few companies are in this fortunate position not to be poised to lose money. Net debt is very low, EUR 21 billion and free cash flow high at EUR 57 million again. Now going back to the strategic road map that was announced in February, this new 3-year period. So we are stepping up the plane. I mean, this is the extension well, with some adjustments, but still, we're basically gearing up the plan. So right now, we are using 4 key technologies, artificial intelligence, and for the past few years, generative AI, agentic AI for some time now are 2 major technologies. You have the Internet of Things and all our software is connected to our expert centers, and so we can monitor what our customers are doing. We have the cloud, 100% of our apps are in the cloud and big data because we're talking about billions of data being processed with what is known as fuzzy data, data that is not structured. If you look at, let's say, all sites where clothes are sold, we have a general idea. We don't know exactly what goes on, but we can piece things together using artificial intelligence. So based on these fuzzy data, we can come up with much more specific results. Anyway, Lectra has been using this for a number of years. Since 2015, indeed even before we announced 4.0, all pillars of Lectra were built using that technology. And historically, we've been always controlling mechanics, electronics and software development. And we said that the next 3 years would be marked by 2 structural changes. Number one, we have the development of 4.0. And of course, artificial intelligence went a lot faster than expected because there were major announcements back in February. Anthropic, as you know, is one of the giants of artificial intelligence. They came up with Claude 4.6 and in the world of software, when you say a minor development, you think it's not much. But here, in fact, 4.5 was doing more or less the same thing, but it was not doing it well, whereas 4.6 does it well, beautifully, in fact. And the big difference is that it used to be you could develop 20% to 30% of our software code with the help of AI. And now when that new version came out, it was like we went to 90% of the software can be generated without any mistake. So this was a paradigm shift, and we had planned this, but we expected. We didn't expect this till end 2028. So we believe this is -- will be an opportunity for Lectra. But we use, of course, these new technologies, especially as we develop our software. in a very intensive way, but we're agnostic in terms of publishers. We can use any kind of agentic AI, any kind of generative AI to develop our software. And in fact, we are independent of cloud suppliers. So we are not -- we will not find ourselves in the situations where our hands are tied with Microsoft or Amazon or the likes. So this is a new deal, a new paradigm, and we were -- well, we were prepared for this, but this is happening faster than expected. And the second item on the right-hand side, we -- back then, we thought that -- well, there was constant uncertainty in global markets, geopolitical concerns. Back then at the analyst conference back in February and in all the meetings we had afterwards, but does this mean that we will be selling less by way of equipment? Or will there be -- will we reach a low point? And I said, if there's no war, we will hit rock bottom. And 2 weeks later, there was a war. And so of course, a lot of disruptions. And this is complex because our #1 enemy is uncertainty when our customers are uncertain, they wait and see. And the second enemy is access to cash. And when -- well, of course, when times are hard, people hang on to their cash to provide some sustainability. They said, no matter what, I can't invest because I have to have enough cash to go around. I don't want to have to close down, or lay off 30% or 40% of my staff. And these events occurred just a few days after our announcement, and this will, of course, inform everything that we do. Now, if you look at our offer, this is the way it is structured. We have 5 software platforms, one on creation. So we still have our legacy software or historic software, but we'll have a new platform, which will provide the next generation. We have one platform for manufacturers called Valia, one for market. So this has 3 offers, Launchmetrics, Neteven and Retviews, and this will be combined into a single platform. We have one traceability platform. So we start from the cotton field or from the cow and we -- you go back to the -- well, we trace back the history of the cotton or the leather, just like the blockchain for virtual currencies, and that will guarantee the authenticity of the cotton or the leather. So we have about 200 major accounts. 60 of them have gone for that traceability. We got 48 contracts for traceability. Our competition only got 12. And this is growing exponentially because this business model is proportional to the volume of traffic on the platform. There's more volume because people put more and more products and more and more collections. So this is a virtuous cycle, a few figures. We have EUR 4 billion worth of products that went through the platform in 2025, 25,000 companies throughout the supply chain from the very raw materials, cotton, leather or whatnot, all the way to the final product in the store. So it's end-to-end, the whole chain, the whole value chain. And our customers have decided to do what they do using TextileGenesis to demonstrate the virtuous dimension of their sales. It's very important in the fashion industry and products declared to be made of cotton around the world is amount for 3x the total volume of available cotton. So this is green washing and like cashmere, the figure is even worse. I mean, when you buy something said to be cashmere, there's a chances intended that it's fake, that it's not cashmere. So traceability really does lend credibility to the claims. And we have another platform called Kubix Link, which works a bit like Wikipedia. The strength of that is that, it doesn't require a full structure to make it work. We can adjust it on a daily basis. It's very flexible, whereas most of the software in product life cycle management needs to have settings. And if you want to change anything, you have to change everything. Now we have much more flexibility. And as you know, the fashion industry is highly flexible. It goes quickly. If you set things in stone for 3 or 4 years, it won't -- this will not do. So some of that software that we brought about brought a lot of traction on the market was very successful. But of course, now we have to translate this into sales because, of course, these products have shown what they can do. If you look at the key items now regarding our position in the bottom right corner, you can see that recurring revenue was more than doubled actually multiplied by 2.5 between 2016 and 2025. So in a matter of 10 years on all 3 road maps. So this is pretty impressive. Of course, it does include the acquisition of Gerber, but not just that. There was a lot of hard work that went along. With this, we moved on to EUR 97.2 million of ARR at end 2025. As Olivier was saying, we would -- well, it would have been more than EUR 100 million were it not for the currency effect. But end of March, we were there anyway. So we generate more than EUR 100 million in SaaS well, even if it's only 20% of revenue, the margin is much higher and much more promising for the future. Now, if you look at, amongst other strength, we have a presence in 100 countries with a prestigious customer base, mostly very large accounts, 80% of major automotive customers are electro customers and more than half only buy from us. And this has been the case for many years. In terms of customer success, we're very close to our customers. We support them. We help them not just use our solutions, but to make the most of these solutions to optimize profitability, efficiency. We seem to be a leader in terms of innovation, but we have a unique offer in line with customer expectations, and we are at the forefront of sustainability. CSR has always been a part of our DNA as it were. We are in the top 10 of companies in terms of sustainability. We got several awards. Now we find ourselves in a position where we were able to establish that we are indeed at the forefront of this matter, which was a source of concern, has been for many years now for better, for worse. This will take second place because everybody is more concerned about the economic situation. But nonetheless, we have a good position in terms of sustainability. Though, we want to step things up. We have 3 years before we reach our cruising speed. And by 2028, we think we will have completed all this. So by 2028, we have more specifically 3 objectives. Number one, we want to turn Valia into the spearhead of manufacture. We want to scale up the SaaS business. And then we want to boost operational excellence. So of course, acquisitions can help, but the companies we acquired had their own habits, their information systems, their processes. And so we have arrived at the point where we need to have a more homogeneous system to have best practices and make sure that our information systems are simpler and more fluid. If you look at the outlook for the next 3 years, annual growth of ARR, as we announced in February, we are expecting growth to stand at about 15%, which means that recurring contracts should grow by about 5% to 8%. Q1 was only 4%, so slightly below that, but Q1 was, of course, impacted by the fact that in 2025, not only did we have fewer orders, but also contracts were renegotiated or some customers actually went bankrupt. Normally, usually, our cancellation rate is about 6%, 3% because of companies closing down, or because they decide to rescind their contracts. Last time, it was not 6%, but 8%. Anyway, we felt that when there was the tariff crisis, we were expecting to lose as much as 20%. In fact, not, we only lost an additional 2% in terms of attrition in terms of lost revenue. And in fact, we didn't deliver any new equipment in Q1. But as new equipment comes in, this should bring about new contracts as well. So the position now should put us in -- should protect our position. And with new items coming online, we are confident in the guidelines. So all other things being equal, I mean, that is if the level of equipment and consumables remains identical give or take inflation, we're looking at EBITDA margin growing by 121 to 180 basis points. And if you look at the cyclical and the structural aspect, the structural aspect, we find that cyclical is that equipment level was low. But structurally, we find that our costs are down. And in fact, we're looking at more than 180 basis points EBITDA margin. So I mean, we're waiting for equipment sales to go up, but the rest of the plan is going according to plan. And so we can confirm the objectives that were stated in February. Now then, in the press release we published last night, there were 3 items we wanted to highlight. Number one, a highly unstable environment of Q1. Now of course, we published a statement on 11 February, and we found that as of 12 February, people started panicking and there were no new orders between 15 February and 15 March. The world came grinding to a halt. Everybody was afraid of the consequences of the war in Iran. But then the quarter ended well because there were quite a few orders that came in. No, it was too late to deliver them in Q1. So we found ourselves in a position where the order book, the backlog of deliverables is quite significant as of 31 March. And that means that Q2 will be a lot better than Q1 because the order book has EUR 25 million in equipment, of which 80% are deliverable in Q2, so EUR 20 million. And last year, the whole revenue for the year was EUR 22 million. So we can see that just about all that revenue on equipment is right there. Well, of course, there could be a surprise in Q1. We had the late delivery of orders, but then deliveries because of the closing of almost boats have got to go through other routes. And of course, the other major disruptions could disrupt the situation. But of course, the situation is pretty comfortable. Regarding the war in Iran, we believe that, of course, it will have a major macroeconomic impact. It will have consequences on inflation, on growth in various countries. And indeed, this will reshuffle the position in macro -- in geopolitical terms, what with Russia, China and the U.S. changing -- shifting positions. But for us, this shouldn't have much consequence. Worried about the fear factor, obviously, when things calm, the fear recedes, but tariffs had a major impact. To illustrate that, if you're an Indian customer, our customers work either for Europe, for the U.S. or the Asian market, rarely the 3 at once, you're an Indian customer, you're working for the India. India is our second largest market of outsourcing on fashion. So April 2, you're a friend of the U.S. and you're going to have the lowest tariffs in the world. And so you're really king of the world, you begin to reinvest, you hire people, everything is fine and rosy, then you become the U.S. enemy because you're buying all from the Russians and you go from 80 -- it was 10% tariffs. You go from 10% tariffs up to 60% tariffs and no way of absorbing the additional 50%. What do you do? Do I shut down? Do I lay off half my people? I've got cash to last 3 months. I'll sit on it. I need the 3 months, so it doesn't push you to buy equipment. And since the start of the year, before even the U.S. Court of Justice rejected the tariffs put in place, India had moved to 18%. It's become acceptable to buy Russian oil until you buy Venezuelan or U.S. India has moved from the most favored nation to the least favored nation to the most favored nation. All that, of course, has an impact on us. Tariffs in China moved from 20% December 31, '24 to 40% decisions taken by Biden in -- during his term of office, March 31, 2025. And then Trump expressed the differential versus the 40%. And it went up to plus 145% compared to when you've got 200% tariffs, you can't import. That's for sure. And the imports of China stopped. And then there were discussions and agreement was reached at plus 30% following the great logic of announcements that don't say the reality, 30% plus December 31, not March 31, they're raising the decisions taken by the Biden administration compared to what they were the previous Trump plus 30 -- the 30% were just 10% all in all, the discussion directly with the Chinese Prime Minister in October 2025 tariff cuts, 20%. In the end of the day, only country where tariffs didn't increase was China. Everyone took away that China was the trade enemy of the U.S. with a sharp hike in tariffs. Our clients who export to the U.S., 20% to 40% to 200% in tariffs back to 40%. We're not in a stable situation. That's why the year was highly disrupted. Since the U.S. Court decision, we find the previous plus 10%. 10% is absorbable. You increase prices by 1/3, pass 1/3. You assume 1/3, it's absorbable. We've arrived at a situation today if it isn't challenged in the coming months that ends the first period and opens up a period of stability. People have understood the situation, have got used to it. It's led to shifts in countries as we saw. China has lost a lot of market share for the U.S., Vietnam gained. It was a yoyo effect in India, all that's going to stabilize, and we expect to return to a normal situation. It was the case in Q1. We're not sure it's going to continue because the world is unstable. Third key factor is acceleration, thanks to agentic AI. So when we put out our February results, the first thing that happened that certain shareholders found them bad. So the share price dropped 5%. that's of the case where you have a quick look at the results. Then we went an hour a couple of hours later. It was plus 5% in the share price. Shareholders who knows were buying, because said, right, the numbers are good. And then we lost 33% because of the SaaS situation, a fact that the markets called SaaSpocalypse. A number of analysts declared that never be software, that software was done, no future for SaaS. And thanks to AI, that would all disappear. It's a bit of a short cut. We're far from that happening, firstly, because this assessment was done without discernment depending on the situation, it varies. If we use market data and we run AI agents, of course, we can obtain results. If we don't have the data, we can't do any trend of Lectra. We own all our data, including all those that transform our customer data, that is we own the IP to improve our software platforms and the construction of AI agents. No customer can do it alone, only has access to its own data, not other market data. It's only useful if you can compare and leverage market data. We're well established with our customers, with the software embedded in their process take computer-aided design. Our first business, a customer who want to replace our CAD software by another, would cost him 10x what he pays every year. Why? Because all the data are inherent to the software, all the process, it costs far more to change than to stay. In the worst year in our history, we lost 1% of our customers our CAD installed base. So we see that we're really adhere to the customer process. There's this stickiness ditto for Kubix and PLM when a customer changes after 10 years, but he doesn't change. Valia was profoundly rooted in our customer processes. Today, we don't feel threatened by this situation. On the contrary, we believe it's a great opportunity because for 40 years now, we've been in AI. We used all types of AI over the 40-year period and the revolution of agentic AI. We've been going flat out for 2 years with full throttle for 2 years. It's a great opportunity. We're ready. We're going to be able to leverage everything we're doing. Our customers can't do it alone for anything that is really complicated. For simple stuff, yes, but not on the level of what we produce. And people ask me, will our customers do it, but it's not the right -- will they do it profitably? They'll do it, but the first test, it cost them 10x, 100x what we invoice, who wants to spend 10x more to do it yourself. It's an illusion. And when we look at our peers, they have access to less data, they're less integrated, a lower starting point. So once we put in place all the AI tools, what's going to happen is that we're going to increase the distance versus our peers. It's not going to shrink that lead. So we see this as a major opportunity. It's what that created the drop of all software of Lectra in February. We think it's a misread of the situation, and we'll hope we'll recognize it gradually as we deliver the numbers going forward. And thank you, and we're ready to take your questions.

Do we have questions in the room? No questions? It's very crystal clear, Daniel. I will give you the microphone, yes. Just wait for a moment.

Jean-Pierre Tabarts. I seem to be understanding in the subtext here that the single platform around Kubix Link, textile genesis, launch metrics, perhaps also gives us the impression that we're entering a period where we're consolidating everything we bought left, right and center. I mean, there's no judgment in what I'm saying here. Is that what we should be hearing?

Yes, that's what you should be -- we're entering a period of consolidation and also integration that is stronger. But there's one thing that isn't right. We have 5 platforms and not one. And that deliberate choice was made because notably in fashion. We have 5 different platforms because a creator doesn't think like somebody in design talks about the concept of color isn't the same for someone who produces or who sells. So in fact, to have a single platform is going to lead to semantics that is recognized by no one, and it would have prevented teams from taking our solutions thinking they couldn't speak the language. So we did the independent platforms that speak the language of users, but also a database that takes those data, makes them uniform. It was a very wise choice versus a single platform because AI allows us to accelerate this integration and this unique language to have very elaborate dictionary, something we were doing without this advanced Agentic AI, we can accelerate a lot. It gives us a strength, because when you're in a team that defines the product, say, in a luxury company, you don't think about the 5 -- we're going to be using those products. And you're not speaking -- so we translate that into the person who use it. Obviously, it's infinitely more efficient than having a common language that no one recognizes 5 platforms with AI, that's going to integrate. That integration is going to accelerate. In terms of the business, it's precisely that we have 3 solutions that have reached an advanced degree of maturity in terms of volume and profitability. We're setting ourselves a target. It's the 40% rule as it's known. We want the growth rate should innovate, plus the margin, the EBITDA should be more than 40%. In other words, growth is 15%, EBITDA is 25%. And our goal at the end of '25 because we're on the right track. At the very least, launch metric, textile Genesis and Kubix should be in that logic over 40%, and we have mature offers where today, we're reaching critical mass. So we have a critical mass effect linking that the margin increases. It outstrips ARR. And year after year, we generate more revenues. Just returning to launch metrics, which represents about half our SaaS revenue. When we started discussions with launch metrics, they're about 12% ARR growth, but they had negative EBITDA of 23%. Today, launch metrics in 2025 delivered EBITDA of over 25%. You see the road we've covered over the past 2 years in terms of profitability. Today, we know if growth is 10%, the increase in overheads will be about 5%, and the rest will accrue directly to EBITDA. So today, we're at offers that have reached the size Ditto for TextileGenesis. TextileGenesis never lost money. It was a start-up when we acquired it, it was EUR 1 million rapid growth, big sling, strong profitability because we've achieved critical mass. Today, we're very comfortable with the fact that these offers will bring in increasingly. And we're entering this period of consolidation that is, in fact, the second objective that we've set ourselves. It's this objective on SaaS to consolidate and to demonstrate the value. Now the first objective to make Valia at the high point of the cutting room. Valia is a platform that starts from consumer orders and capable of defining the production plan and notably the cutting plan, all the intermediate stage because there are great many of customers today, 8, 10, sometimes software packages between the order intake and the cutting plan that don't necessarily talk to one. Valia automates it all, has hundreds of agents taking decisions at every level as the decision-makers in companies. And we enter orders and we obtain an optimized production plan. That production plan can factor in the equipment in place with our customers, be they Lectra or non-Lectra equipment. So we can optimize based on what is utilized. So for that, we put in place virtual of the fabric, their physical behavior that they shrink with humidity, loads of physical characteristics that I'll spare you that are very important for optimize the garment, how the fabric reacts to when it's worn and then all the processes, the cutting machines that are modeled. We have virtual doubles of the cutting machines. The plan will optimize everything. And if you say, for example, I want to look at a subcontractor, the best subcontractor have a cutting line with new orders that I'm going to shift to another plant, another country, the plan is readapted real time to say that in that country, these are the parameters that need to be used, this what it changes. So it's a very powerful tool. The big difference is we were selling equipment and software. But here in production, we're selling equipment connected to a platform, the platform fully monitors the equipment. That is the customer can intervene certain cases, I want to decide, but he can also let the platform operate alone. The platform will fully manage the cutting machine, adapt all the parameters, the change in fabric, type of production, et cetera. So those elements are the 2 strong, we're going to ramp up in these 2 areas. It was a bit long.

So this -- obviously, you've talking a bit about launch metrics. I haven't gone through your release. Could you give us some news on launch metrics in Q1? I recall 9% growth in 2025 not far from your targets. Could you talk to us about the churn, how things are happening? Are you happy, disappointed, surprised?

Well, from memory, we achieved 2% growth Q1. Annualized, that's 8%, lower than the 9%, but it's in line. We're very happy. We're very pleased with Launchmetrics. Firstly, it's the management team of operations that's the strongest across Lectra. We have a very mature team in terms of technology. The transformation of Agentic AI will boost the operations of Launchmetrics stronger than our other decisions. Today, we're both very optimistic and very confident. Same level of churn as a year ago. On average, we're at 7% churn, the average churn in Q1. We haven't given all the details, but average churn is at 8% in Q1. We had an additional 1% churn. That's due to the situation, but nothing alarming. And for Launchmetrics, we were closer to 5%. It's about the same proportion. We don't want to publish the figures every quarter. Otherwise, people will constantly compare with -- overall, it's normal. If it was abnormal positively or negative, we would say it, but we're in a fully normal situation in Q1. Very often, there's a reaction because in the SaaS proocalypse, people were saying, well, isn't launch metrics under threat. People -- someone could replicate systems doing the same thing. So we've been following for several dozens of years, at least very intensively for some over 1 million voices, influencers, online media, vogue, printed media, et cetera. We have the full history of all the publications of the -- in hundreds of millions, even billions of data in a database that's proprietary. Somebody want to do the same thing would have to reconstitute that database. Not only would it be hugely expensive, but it's impossible. So we're very protected contrary to what might seem at first sight. That's -- so today, Launchmetrics is a productivity tool for marketing teams. When you take, for example, all the luxury that are all clients of Launchmetrics with a big budget between EUR 0.5 million and EUR 5 million per year. We're talking big numbers. None has dropped its level of subscription, and we end up with situations where their budgets are very often in the hundreds of millions, at least that we -- thanks to us, they save 20%, 30% in their market budget. It's the tool that brings the best productivity and it's may be counternatural, but it's the case. I'm very confident for the future. As I said, we've got a great team and the advent of Agentic AI will be very favorable for Launchmetrics.

Do we have any further questions from the audience? Any questions at all? Well, if such is not the case, we can move on to the next part of the proceedings, and that is the formalities. We start off with the report of the auditors. So Flora and Jean-Christophe will come up to the lector and read out their report.

Good morning, everyone. Rest assured, we will not read out the entire reports, but we will give you the main findings. My name is Aurelie Lalanne, and I'm associate partner at KPMG. And we have Flora Camp, who is with PwC and Jean-Christophe Pernet, who is with Ernst & Young. Right. The first report is on the annual accounts of the Lectra SA. So we want to see whether there were any significant anomalies in the financial statements. Our opinion is a certification without qualification. And this year, we do have an observation, which is related to a new accounting rule -- sorry, -- you have to move out. We cannot read the screen from where you -- if you stand in front of it. We do apologize, yes. So our opinion on the statements is certification without qualification with a technical observation on the change in the accounting rules and methods, which was fully taken on board by Lectra. All in all, on the key items of the audits on both the company's financial statements or the consolidated statements, we -- the audit -- well, the key audit items are listed. Just the only key item in the report is the recognition of revenues from exported equipment and pilot software at the time of closing. And so we detail the procedures we applied to arrive at these numbers. and we do say that the statements do reflect this accurately. Regarding specific checks and we conducted these checks to ensure that information provided in the annual report and the governance report, the information is accurate. And there again, there is -- there are no comments on that. And so that's the report on the parent company's financial statement.

If you now look at the consolidated financial statements, likewise, this report proposes to provide reasonable assurance on the absence of material misstatements in the consolidated financial statements. So this is a certification without qualification and without observation and very much like the report on the parent company's financial statements. We justify our assessments with 3 audit items. The first thing is the recognition of revenues from exported equipment and pilot software, but we also have 2 other items which were already there in the previous year, measurement of goodwill and evaluation of commitments to purchase minority interest. Regarding specific checks, we have no comments on the information provided in the annual management discussion. And likewise, we find that there's compliance with the ESEF presentation requirements for the consolidated financial statements. We can look at the full report. We list out -- we detailed the procedures that was used in the audit. And there's, of course, more details in the appendices. Thank you.

All right. Well, on the special report on related party agreements, I'll be brief because, in fact, there are no new related party agreements, neither were there any in the previous year. So there's nothing to mention this, and I'll ask Flora to present the final report on sustainability.

Thank you Well, the report on the certification of sustainability -- of the sustainability information. That was part 2 of the annual report. Well, we went out to check and assess all the information provided in the previous report. We have a 3-part conclusion, and you have it up there on the screen, shall try and be brief. The first one is on the process of what is known as double materiality. So it is a company to analyze its own risks, opportunities and impact in terms of sustainability, and that is updated on an annual basis. And so for this year, we had the effects of artificial intelligence. And so the entire process was carefully reviewed, and we can confirm that this is consistent with regulations. The second thing is the company is supposed to provide data on 350 items on sustainability. We went through all this. And again, we can confirm that there is full compliance with the regulation. And indeed, we draw the readers' attention to the methodology and information provided on the carbon footprint, and we find that there's a significant improvement compared with last year. And then finally, a third item, third theme, which is compliance with the taxonomy, but this has little effect on the company. But again, everything published by the company on this is very much in line with regulations.

Well, thank you. Thank you, and we would like to thank KPMG and Pricewaterhouse because I believe this was your final and the last report here after 25 -- 24 years of laurel services. So many thanks to you both.

Right then, on a personal note, I would like to thank Flora and Aurelie, because they were not always easy to deal with. They challenged us a lot, but they conducted duties very effectively. Whenever there were issues, we were able to address them effectively. So we found this as a very constructive dialogue, and we never had any criticism over the past 24 years. And it's good to say that we were able to spend 24 happy years. But rest assured, there were issues and -- but they were very well addressed with good humor and professionalism.

Right then. Well, this takes us to the final part, and that is the resolutions. We have a few more than last year. I won't get into the detail of everything, but there are 15 to do with the ordinary shareholders' meetings. You have the financial statements, the compensation package for the year 2025, 2026. And then there are 5 resolutions for the extraordinary meeting for which a 2/3 majority is required. And that is mostly to do with operations on the company's capital. So -- we'll move on to the first part of the votes. We have 2 people from Societe Generale, the bank. And this will be a vote by show of hands. And so we'll go through the resolutions one after the other. But the final results of that vote, having recorded the votes in the audience will be published, of course, in the coming days on our website, if you go to the AGM. And then a replay of this very meeting will be available on the website as well. We -- this is a final position. We cannot take in new voters. The actual quorum is 90.6% of all votes. We have 417 shareholders, those here in the audience and those who have already voted. So we can get started. Resolution #1 is the approval of the parent company financial statements, and you have the profit was EUR 19,727,446. And the cost excluded from this charges deductible is EUR 132 -- EUR 132,000, sorry. Any votes against, any abstentions? And so enjoy the votes. I mean, we had the votes in the room, but we have more than 99% in favor. All right. Then Resolution #2, and that is the approval of the consolidated financial statements for the fiscal year ended 31 December 2025. Net income group share stood at 25 -- more than 25 million, almost EUR 26 million. So again, by show of hands, anybody against? Any abstentions? And so that again, in view of the votes received, we have this resolution passed with more than 99% of the votes. Resolution #3 is the discharge of directors. And so it is for you to vote to give a full discharge to the directors. No votes against, no abstentions. And so again, we -- here, we have only 97% of the votes in favor. This is appropriation of earnings for the fiscal year ended 31 December 2025. The dividend distributable. So we're talking about EUR 0.35 per share, and that will be paid out on the 6th of May. So that again, any votes against that? Any abstentions? And so here, we have, again, upwards of 99% in favor. Well, that was the financial statements. And now the compensation package, and I will ask the Chair of the Compensation Committee, Celine Abecassis to give us her presentation.

Good morning, everyone. So this is Resolution #5. You may remember that we have to look at the compensation package for directors ex post factors. So for the year 2025. So it is for you to sign on to the compensation, not just the CEO, but for the year 2025 and the CEO and the directors.

And you have all the details in the report on governance on Sections 2.2 and 2.3. You have the full details. So you can look at this. But having said all that, any votes against, please raise your hands if you disapprove. Any abstentions? All right. I see no raised hands. So many thanks to Celine. We have a vote in favor to the tune of 97%.

And the next resolution is also to do with the compensation for 2025. And here, you have details of the compensation package of Daniel Harari, our CEO. There's a fixed part of the compensation package and a variable part, and that is in line with the last year's policy.

So you have the details fixed variable, the compensation as director and benefits in kind. And so you find that, again, the -- we lined up the variable criteria with those of last year. All right. Can you vote on that? This is the compensation package for the CEO. Any votes against? And any abstentions? Again, in view of the votes already received, we have this resolution securing more than 97% of those. Thank you.

Now it will be for Helene to come on stage. And so Helene Poirier has been a director for 4 years. She was very much involved in the work of the Strategy Committee, the Audit Committee and of course, the Sustainability Committee, which she chairs. In terms of sustainability, I think we've made giant steps over the past 4 years. And so the Board unanimously recommended that her term should be renewed for 4 years. You can -- now people know who you are.

Right. Well, we know the renewal of Helene's term is up for vote. Any votes against any abstentions? I see none. And again, adding to the votes already received, we have more than 98% of votes in favor. And now new faces on the Board, and we have -- I'll ask Daniel.

Where we have Christophe Gegout who will ask him to kindly come on stage. And Christophe -- if you vote in favor, he will be an independent director on the Board. And the process, the selection process for independent directors is spelled out in the report. We have a management committee, which provides a short list of possible candidates. Then there are interviews. We get views from directors, and that's how we decided to appoint Christophe as a director.

Yes. Well, thank you. And now it is for me to turn to shareholders. I acted as an Independent Director for a listed company of the SBM 320. Before that, I was a Director of NOM, which is a company involved in Renewables and Soitec, which is a company involved in microelectronics. I also have executive positions of the CEA, Commissariat a l'energie atomique and it has, of course, a technology lab where similar issues are discussed. I spent my professional life in sitting on Boards and also working as an adviser to investors abroad. Well, if the -- well, thank you for -- well, in France, maybe you can explain what the CEA means. Well, this is -- yes, it's the second largest research organization right after Feinhofer in Germany. And it stands for Commissariat a l'energie atomique, Atomic Energy Commission that was created by General de Gu. The initial idea was to develop nuclear energy in France, but many other areas of research, basic research, biology, all sorts. And this, of course, has many connections to manufacturing industry in France, but we also have partners outside France. Thank you.

All right. So we need to vote and see whether Christophe Gegout will be indeed accepted as director. Any votes against, any abstentions? I see none. And so if you add this to the votes already received, we have upwards of 99% in favor of Christophe Gegout joining the Board as a Director.

A newcomer also joining the Board very soon. Here, we're currently announcing the arrival of Fiorangelo Salvatorelli. Fiorangelo, who is a member of the Alantra fund, been following Lectra for 3 years, Alantra being the #1 investor at Lectra, #1 investor above my holding very -- thank you, Daniel.

Ladies and gentlemen, my name is Fiorangelo Salvatorelli. I'm an engineer and an experience at Oxford University at INSEAD, professional experience that started at McKinsey and company, London, Milan and Madrid and many years of investment in technology. Today, I represent Alantra, a shareholder of Lectra. We believe that Lectra is one of the best companies in France for digital transformation and contributing to the growth of AI and transformation to Industry 4.0. We believe that the photograph that the possibility of Lectra the reorganization of production, we're very pleased to take part in the growth of the company.

Thank you, Fiorangelo. Let me say that Fiorangelo is appointed in his personal capacity. It's not Alantra that will be represented, but Fiorangelo. Thank you.

So we're now going to vote. Who is voting against this appointment of Fiorangelo? Who abstains? Thank you. So given the votes that we've already booked, the resolutions adopted with over 99% well done, and welcome. I'm going to invite Celine to join us once again for continued remuneration.

This is ex-ante. We're now going to look at the compensation for 26 ex-ante, the total package for directors' comp we suggest to increase from EUR 480,000 to EUR 570,000 justified by 3 factors: the number of directors that's increasing the number of meetings, 2 reasons and committees and committees. That's right. Number of directors, number of meetings and number of committees.

Thank you, Celine. So we're going to vote. Please raise your hand, those who vote against and those who are abstaining. Thank you. So given the votes that we've previously resolutions adopted with over 99%.

Moving to Resolution 11. So continuing with the question of ex-ante compensation, we're now going to review the compensation of Mr. Daniel Harari, Chairman and CEO for FY '26. principles remained unchanged since 2017. Total compensation of EUR 840,000 based on objective, 50% fixed, 50% variable compensation. And on the following slide, we have more information. So for the variable part, variable, we've simplified the equation. As you can see on screen, we have 3 main metrics: 2 strategic, 1 sustainability for strategy, SaaS ARR growth aligned with the road map, EBITDA before recurring items and sustainability criteria, 3 indicators, nonfinancial ratings, team engagement rate and the climate transition plan, you can see on screen, the weighting of 40%, 40%, 20% respectively, a few changes over last year, particularly the SaaS ARR dimension.

Thank you, Celine. So we're now going to vote on this compensation 2026 of Daniel Harari. Please raise your hand if you vote against. Or if you abstain. Thank you. Given votes previously received, resolutions adopted with about 98% of the vote. Thank you.

We now move to -- and thank you for your trust and confidence at Daniel. I'll try and have a variable this time. I haven't really succeeded as you've seen this year. That's one everyone expects of us. So I'll try and ensure that the variable is achieved.

Final resolution on compensation, compensation of the directors. Ex-ante for 2026, as we said earlier, total package was approved to be increased to EUR 570,000. The cap on individual compensation is maintained. And shown here are the details, fixed and variable components for each position and the detail for each of the committees with very little change over last year.

So we're now going to vote on this resolution. Please raise your hand if you vote against or if you abstain.

Thank you. So given previously booked votes, resolutions adopted over 99%. Thank you. So perhaps just a comment, which is that given the importance assumed by AI as of the Board meeting after this meeting, we're going to set up an AI committee chaired by Karine Calvet in the room, if you'd like to stand up and look at the camera, and we're going to make sure that we use everything that is available to us since this profound transformation affecting the whole world to be ahead of most of the companies and best practice in terms of AI.

Thank you. And Resolution #13, I'm going to hand over for appointment of Grant Thornton as statutory auditor.

So we have our 2 historic auditors come to the limit of 24 years. They can't be extended. Last year, we decided to appoint a first auditor who introduced himself earlier. We also plan to appoint a second auditor already selected last year, but taking up his duties today because the year 2025, we wanted to have a link between the outgoing and incoming auditors. And this year, Grant Thornton will intervene as second statutory auditor next EY. I'll let you introduce yourself.

Good morning Charlotte Espinet I'm partner within Grant Thornton. Briefly, Grant Thornton, we're an audit and consultant group multidiscipline based in France with just under 3,000 employees, but across 150 countries, and we support a great many groups listed or not, including many in an international setting. So we're delighted to start this mandate of co-statutory auditors with the Lectra teams and with EY that joined the Board of Auditors last year for this seamless transition.

Thank you, Charlotte. So we also note that we're kind of staggering the terms of office, 6-year terms, one that started in '25, second term with Grant Thornton that's beginning in '26, and we're going to vote now. Thank you. Please raise your hand if you vote against the appointment of Grant Thornton. And those who abstain. Given the previously received votes, it's always incredible. I don't know why auditors always have record scores. So this time, a bit like last year with the resolution approved with over 99.99%. So your level pegging with EY's result last year. Thank you. So moving to Resolution 14. And here, we have to appoint our auditors in charge of certifying sustainability information. And we're appointing -- we propose the appointment of EY as statutory auditors responsible for certifying sustainability information. Jean-Christophe, would you like to say a word? No. So there are going to be a staggered term of office because sustainability mandate starts in '26 6-year term of vote. And so thank you. Please raise your hand if you vote against the appointment of EY on sustainability. And those who abstain? Given previously received vote resolutions approved with over 99% of the vote, well done. We now final resolution on the ordinary shareholders' meeting, authorization to be granted to the Board to trade in the company's shares at delegation of authority given by the meeting to the Board to authorize the Board to implement a share buyback scheme for 18 months with a limit of 10% of the capital. It's a traditional resolution means the company can have the necessary flexibility to manage its own shares in the interest of the company and that of its shareholders authorization, of course, to buy its own treasury stock authorized by in-force regulation. And in particular, the list can be very long for the market, improving the liquidity of the share. Share option plans, the use of shares for M&A and if need be, the cancellation of shares in the authorized limit. The list isn't exhausted, but we've cited the main operation, maximum purchase price, EUR 40 per share for a maximum amount of EUR 50 million.

Yes, just some A few points about that. So the Board or the meeting delegates to the Board, which will subsequently delegate the authorization to operate. And based on in-force regulation, we'll select a bank that will act fully, and we give it a mandate with intervention, but the company isn't actually involved in managing those intervention. We'll put out a press release as soon as we implement those -- this share buyback plan because, of course, we want to let the share price stabilize after yesterday's announcements before using the share buyback so that the share price returns to a balanced situation irrespective intervention. Our plan is to intervene in some 10 days, intervene systematically in buying shares under conditions that will be set out more specifically in our release.

Thank you, Daniel. So we're now going to vote on this resolution. Please raise your hand if you vote against this authorization granted to the Board to trade in the company's shares. Thank you. Abstentions? So given the votes previously received, resolutions adopted over 99% of the vote. Just a clarification here says Daniel, the mandate that we'll give to the bank to interview is 100% consistent with the French Securities Exchange mat, and we'll notify it to the AMF before it comes into force, even if it's not mandatory, it's a good practice. We're fully in line with market practice. And just to add a word, transparency occurs every month or so because we'll put out a release on operations that occur as part of the share buyback plan release every month available on our website, give the AMF and report very transparently to everyone.

Perhaps just the underlying philosophy here. I think it's an important point, probably the most important resolution of the shareholders' meeting. Our intention isn't to support the share price. People think that when we buy shares that it's the share price, maximum 25% of daily trading on the market, the Euronext market. We have about 1/4 of transactions that go by the market, 3/4 of block trading. With this, we can have a block trade, but we don't -- we can't afford to buy everything. It's not going to change the market. It won't change the balance significantly. And of course, it protects us very small trading volume one day. It's really something tactical short term that we are already doing with the liquidity contract. The most important point is that the Board in fact, having discussed and listened to its major shareholders considers that at the current share price, the company is very much unlisted, and it's a good opportunity to -- that would be accretive for remaining shareholders and have more earnings per share. So it's really a way of affirming our position on the fact that we believe in the mid, long term of the company and a valuation that today does not reflect its true value. So, Nathalie, who's Lead Director with a microphone, please and turn to the camera.

Yes, just to say that this is a possibility that we have today. It's an option that we'll have. We haven't yet determined the period of intervention. If I could just add that, nothing has been determined at this stage, and this will be done very soon.

So it's leeway given to the Board, not an obligation, of course, but we want to demonstrate that the Board believes in -- strongly in the value of the company.

Thank you very much. So we're now going to vote to -- we haven't voted. We have. We have. We voted followed by comments. We can revote, if you like. So moving to resolutions of the extraordinary meeting, majority -- 2/3 majority for the resolution to be adopted, 16th resolution. So you're asked to authorize the Board to grant stock option or stock purchase plan benefiting certain employees or corporate office, total number of shares limited to 2,100,000 shares throughout the duration of resolution for a period of 38 months that represent a maximum amount 6% of the capital of the share capital and per year, 2% of the share capital, the capital increase. If all these options are allocated and exercise as they're based on performance, that can be lost. We want them to be all allocated. That would good time to come, there'd be a capital increase of EUR 2 million at par value, EUR 2.1 million. So conditions vesting with presence, minimum lockup period of 3 years before exercising the vesting right and the exercise price without a discount set by the Board in accordance with applicable legal provisions, duration of the authorization set at 38 months. And if you're agreeable, if you have nothing to add, Daniel, let's vote on it. Please raise your hand if you vote against. And if you wish to abstain, well, that thank you. Given the votes previously received and those in the room, resolutions adopted over 92% of the votes.

So on a resolution on stock options, probably the highest vote percentage that we've ever had. My thanks to those who vote in favor. It's very important for the team and to galvanize everyone.

So on the 17th resolution, there's a little box there that appears. We're going to also explain to you why we recommend that you vote against the delegation given to the Board to carry out a share capital increase reserve for employees. So you have the characteristics shown on screen and a cap of EUR 100,000. Your Board recommends voting against this resolution. It's presented really to meet a legal requirement. Well, basically, we open a stock option plan. That was the previous resolution adopted. So legally, we must also authorize or grant authority to the Board to carry out share capital increase for employees. So why does the Board refuse or at least recommends voting against is that we're no longer in a Lectra remuneration policy based on performance-based conditions, not at all in a value creation approach with this type of -- we vote -- we recommend that you vote against this resolution. We're going to have a rather different vote. That's to say those who want to follow the Board's recommendation, I would ask you not to raise your hand. And then I'll ask you to raise your hand those who want to vote in favor of the resolution. And so no abstentions either. So -- right. And so in view of the votes, so this resolution is rejected. Only 24% of the votes in favor. All right. We move on to Resolution 18. And this -- it is to authorize the Board of Directors to reduce the share capital by canceling shares as part of the share buyback program. So this could happen within 10% of the full capital stock. The authorization is for 24 months. Who is against that? And who is -- who abstains? So many things. So in view of the votes already registered, this resolution is carried with 99% of votes. And then #19, this is a technical resolution to adjust the articles or the bylaws to new updated regulations. So this is basically ensuring that we -- by the legal provisions relating to the record date. So this is just a matter of being to comply with new regulations. So if there's anybody against, please vote now. Any abstentions? Many thanks. And so in view of the votes already received, of course, that resolution has carried with more than 99% of the vote. And finally, it's a power resolution powers to carry legal formalities there again. This is just a vote to enable us to do what you asked us to do. And so please raise your hands if there are any votes against or any abstentions? Well, many thanks again, that last resolution has -- was able to carry more than 99% of the vote. We -- this completes the votes, but this is now a timetable of the next events. So we will -- in a year's time, we'll come together on 29 April at the shareholders' meeting, and that will not be here. But in our new premises.

Yes, we are, as you know, revamping the ground floor right now at Lectra. So that's why we're meeting here instead. But as of next year, we will be back in our own building to welcome you.

All right. Many thanks to all of you, and many thanks for your patience. There were as many as 20 resolutions. We would like to congratulate all the new appointees. And does Daniel wish to say anything?

Well, yes, I'd like to thank all the shareholders that have come here. I would like to thank them for voting because, of course, when you have a high percentage of positive vote, well, that speaks for itself. I mean we always have very high rates in favor. And so these are challenging times and 2025 was already challenging. So having your support is really essential for us. So many thanks for your presence, for your trust. And let's hope and pray that next year, we have better figures to show for. [Statements in English on this transcript were spoken by an interpreter present on the live call.]