Valeo SE (FR) Earnings Call Transcript & Summary

Ladies and gentlemen, welcome to this Valeo's Annual General Meeting. It is a great pleasure for me to welcome you to this meeting where we'll be presenting our strategy, our perspectives and of course, our resolutions. This meeting is convened by the Board of Directors, following the publication of -- on the one hand, of the meeting in the Bulletin des Annonces Légales Obligatoires on April 3, 2024. And on the other hand, the notice of the meeting and the same bulletin and in the legal announcement journal [indiscernible] May 1, 2024. Our meeting is broadcast live on the company's website. And as every year, it is the subject of a video recording that will be available on the Assembly Meeting page of our website I am presiding over this year's assembly in my capacity as Chairman of the Executive Board. And my side, we have Christophe Perillat, CEO; Edouard de Pirey, CFO; Eric Antoine Fredette, General Secretary and General Counsel. The members of the Board of Directors are seated in the first row of the room. The statutory auditors are also present. And I'd like to also point out that we have a few journalists with us today. I suggest that we now turn to the composition of the bureau for the General Assembly. I'd like to remind you that the 2 members of the assembly with the greatest number of votes and who have accepted the functions are the tellers. According to Valeo's list, the 2 shareholders with the highest number of votes in their name or by proxy, who have except -- indicated that they agreed to act as tellers are BNP Paribas Asset Management represented by [indiscernible] and Sitam with Belgium from the Dassault Group, represented by [indiscernible] and I'd like to thank them both for having accepted that responsibility. The Bureau is less constituted, and I appoint -- I suggest we appoint Mr. Eric Antoine Fredette, the Secretary of Assembly, and I'm going to give him the floor to indicate the provisional quorum of the assembly and explain the agenda to you. --

Thank you, Antoine. Thank you, Mr. Chair. Société Générale, the centralizing institution responsible for organizing the meeting informs the members of the Bureau of the status of the provisional quorum. Shareholders present, represented or having voted by mail represent 165,444 members of 241,731. The office is validated. The Shareholders' Meeting comprising more than 1/4 of shares with the voting rights, is, therefore, duly constituted and may validly deliberate whether on an ordinary or extraordinary basis. Your assembly has been convened for the purpose of deciding on the agenda, which appears on the screen and which can also be found in the notice for the meeting. I propose to not read it out. The documents for the assembly are made available. And I'd also like to remind you that these documents are available on the website of the company. I declare that all of the documents have been communicated and made available to shareholders according to requirements by law. And it is my honor to be the Chair of this since the beginning of January 1, and I am going to start by the situation of the company. Last year, I said that I considered that one of my missions would be to preserve the tremendous assets that is represented by the solidity of our governance. As such, I have been working on improving the effectiveness of our Board of administrators through open, transparent, respectful and frank dialogue between directors and management. To do so, the diversity of different pass, the international opening and the various other types of diversity are essential. We would like to suggest the nomination of 2 directors with different profiles, experiences and skills. One is [indiscernible] who is Spanish and if she is elected, would bring us her expertise in finance, capital markets, mergers and acquisitions that she has gained over many years. She also is very familiar with the energy sector, which is so important to us. We also have [indiscernible] who is Swiss and who, if selected, would bring us very solid experience, particularly in the automobile sector and as well as in new technologies and that experience has been acquired through an international career within various major international groups in Europe and the United States. These people would succeed Mr. Thierry Moulonguet, President of the Committee of Audit and Risk; and Ulrike Steinhorst, who is responsible for corporate social responsibility and is a former Chair of the Strategic Committee and who does not wish to renew his term. I would like to thank those people on my own behalf and on behalf of all of us for their very precious contributions to the work with the council, for their professionalism and for their rigor. Thank you very much.

In the new composition of the Board, the chairmanship of the Audit and Risk Committee would be given to Véronique Weill. While Alexandre Dayon would replace Véronique Weill as a Chair of the Committee for Remunerations and the Committee for Governance Nominations and Corporate Social Responsibility. His experience would enable him to do that. During this assembly, you will also be requested to renew the term for the fund, strategic fund for shares. The strategic fund for shares continue to be represented on the Board by Julie Avrane. The Board would like to give her responsibility for corporate social responsibility issues, along with Ulrike Steinhorst. Another very important change within the context of the modification of the status, which we approved in 2023. So in regards to the staff shareholders, we would like to nominate [ Eric Schuler ] as a representative of those. He has been working for Valeo for 25 years and has been working with the Board in the past because he was a staff representative in the past, and we would like to welcome him to the Board. This nomination would bring the number of staff representative directors to 3. This additional representative within the Board is the result of the important -- the very strong shareholder policy. And at the end of 2003, this was represented by 4.36% of the capital and 53.4% of our staff are shareholders within the group. And we believe that it's very important that our employees be part of among the shareholders, and we are going to continue developing that aspect. And finally, this year, we evaluated the functioning of the Board through an independent outside consultant. And I'm very happy to announce that those consultants judge that our function was very satisfactory. The functioning were particularly underlined and they also -- this noted that there were constructive debates and a good level of expression among the members. The detail of the results of that assessment is included in the universal registration document on 2023 on Pages 145 to 146. One of the concerns of the Board is to make sure that within strategy, as within operations, the group responds favorably to the demands of the shareholders. There's staff, clients and generally the society and with our CSR. That's why we define our Cap 50 plan, particularly in regards to the reduction of CO2 emissions. And every year, since we defined that plan in 2021, we have moved towards our goals. Christophe Perillat and Véronique Weill will be telling you more in detail about that during their presentations. Since our last general assembly, the Board has attached particular attention to the new regulations of the CSR directive, which has made stricter, the reporting rules for sustainable development. There are 2 points to illustrate that. One is that an auditor for sustainable development was certified, and following a report from the committee for audit and risk, we have decided to propose [ Mazara ]. The collaboration between specialized committees are in charge of CSR subjects, given the expertise of the Audit and Risk Committee on the process of reporting and financial control, the Board has decided to give them the responsibility for questions regarding the elaboration and verification of information, in terms of sustainable development. The work between these 2 committees is essential to meeting our objectives, and that's why we have made sure that there are mutual interventions between these 2 communities and we've also named a new CSR manager, Julie Avrane as a member of the Committee for Audit and Risk. Finally, to follow up on what we presented last year. The Director General will be telling you about our climate strategy in just a few minutes. Concerning strategy. Your Board works closely with the group to define strategy. The environment is very complex, and there are technological changes that are occurring very quickly. There are also emerging new actors, including Chinese, and we want to make sure that Valeo adapts to the new organization and the new challenges in the automobile industry, in order to improve our competitiveness and our financial performance. In 2023, the group continued to benefit from its position and acceleration on the markets, particularly when it comes to driver assistance systems, the software-defined vehicle electrification, in order to meet our move-up goals through record levels of orders for representing EUR 34.9 billion. Valeo has also confirmed their strategic trajectory and financial perspective for 2024 and 2025, with the definition of new goals for 2025, which are coherent in regards to the hypothesis of conservative, reasonable automobile production projections. And Christophe Perillat will be talking about that more in detail. The context also requires us to keep a very close eye on profitability and cash flow generation, and we are very careful of that. This also requires your company to adapt next organization in order to become even more agile and profitable. The fusion between -- the merger between the powertrain systems and thermal systems, was carried out on April 22, 2024, and is part of that adaptation. Christophe Perillat will be talking about that. Your Board also makes sure that the restructuring is done in respect to applicable regulations, but also in respect for social dialogue, which we believe is very important. And finally in 2023, your Board decided -- given the group's results to propose a dividend of EUR 0.40, which is up 5% compared to 2022. This is the third resolution that we will be voting on later. Before I pass the floor over to Véronique Weill, Chair for the Committee for Remunerations and Committee for Governance, Nominations and CSR. I'd like to thank all of the members of the Board and all of the teams at value whose commitment were -- and quality work has enabled us to [indiscernible].

Ladies and gentlemen, dear shareholders, to follow up on what our chairs just said, I'd like to underline the current composition of the Board with its diversity of profiles and experience and a rate of independence, which is superior to the recommendations of the code, AFEP-MEDEF. This should even be improved at the end of this assembly, if you approve [indiscernible] as directors. I am convinced that the Board has everything it needs to meet the challenges with which it's faced. I would like to mention the work that's done by the Committee for Governance, Nominations and CSR in terms of social responsibility and sustainable development. These are subjects, which are of concern and will continue to be because they play a very important role in the group strategy, particularly when it comes to the application of the new, where also defined in the CSRD directive. I'd like to remind you that the our subjects are organized within the Board by a member in charge of that. And as our Chair mentioned, there is close collaboration on CSR subjects between the Governance and Nominations and Responsibility Committee and the Committee for Audit and Risk, in charge of defining and verifying information regarding sustainability as defined by the CSR directive. I'd like to particularly thank Madam Ulrike Steinhorst, who played a role, who was in charge of CSR up until this assembly and who, thanks to her involvement in her very high-quality work, and exemplary follow-up on these subjects. And as the Chair said, it was decided if the strategic fund for shareholders is renewed to give that mission to Julie Avrane, who would bring all of her expertise to the subjects. So this organization would enable rigorous, effective and technical follow-up on all of these subjects. As you know, the social and environmental responsibility cover many subjects, including climate and diversity. In terms of climate, we have continued to follow our goals of the CAP 50 plan, which was presented on February 4, 2021. As the Chair said, the group -- we will be talking about the group's climate strategy during this assembly. I would like to specify that the group has been working on the subjects in an exemplary manner with much rigor and professionalism. As of today, Valeo has reduced its greenhouse gas emissions by 9% going from 49.6% CO2-equivalent million tonnes in 2019 to 45.2-equivalent millions of tonnes of CO2. Valeo was confirmed its robust action plan, its ability to substantially reduce their emissions throughout their scope of action. Beyond the climate, there's also our policy of diversity and inclusion, which is a key to Valeo's culture. This is a subject that we encourage enthusiastically, and we monitor with closely. When it comes to gender mix. This diversity, Valeo has -- there are 33.1% women in the group, which is up 1.3 points. In 2019, we defined the ambitious goal of the presence of women to go from 16% on January 1, 2020, to 32% at the end of 2030. And at the end of December 2023, the rate was 23.6%. This progress was made possible by the identification and promotion of feminine -- female talents in-house, but we have to go even more than that. As part of our work, we are convinced that general management's actions are what we need to do in order to continue and meet our goals. Valeo has also shown that we are working for professional equality between men and women. In March 2019, Valeo decided to extend the Professional Gender Equality Index to all of the countries where we work. Based on 5 indicators, the index measures the differences in pay and promotion rates for women and men. In order to continue reinforcing that index. In each country, the group has developed a special tool to automatically calculate the results at all levels according to site, country and business. The progression of the group has been observed. And in 2022, the average for the group is 88.9% over 100, which is increase of 1 point per year. Thanks to our action plan, Valeo has progressed in most of our criteria. Valeo has also defined as a goal to reach an average result of 89 over 100 in 2024 and 90 to 100 were in 2025. And we believe that this is an excellent mine are convinced of the importance of the diversity in non financial results, and we have decided to integrate diversity within the board as well as in the result of the index for professional gender equality between men and we when the calculation of pay raises. I'm going to come back to the question of remuneration, but I would like to point out that the group's ambitious goals in terms of ESG has been possible, thanks to the tireless work of all of our teams within the group. They enable value over the past years, and I'd like to thank them to see to have seen that the nonfinancial performance of the group recognized by the major rating offices and to maintain that position. There are many indicators, but I particularly look at -- talk about the MSCI leader AAA for the automobile business. Presence of value in the CAC 40 ESG, which represents the 40 companies that have shown the best practices in terms of environmental, social and governance, also shows how good our group works. As the Chair for the Committee of Remuneration, I would like to now talk about the remuneration of the of our directors. I'd like to make 3 comments here. First of all, the Remuneration Policy for 2024 for the General Director is part of the continuity of the -- which you approved in 2023 by 96.2%. The ceilings for fixed remuneration, variable remuneration long-term remain unchanged. The variable annual remuneration and long-term remuneration for the General Director for 2024 will be subject to the same performance criteria as that 2023 policy. The criteria of incoming orders was replaced by that of net debt over EBITDA, which is considered to be more valid. Thirdly, the resolution for enabling the attribution of free shares and performance shares, we would like to ask you to renew that this year. The remaining envelope from the 2023 resolution would not given the projected current projections to enable attribution in 2024, according to conditions as defined. Please note that the structure for the share performance plan as defined in the Board's report is in line with that of 2023. And to conclude, it is with the great confidence that I'm handing over the chairmanship of the Committee for Governance and Nominations and CSR as well as the Committee for Remunerations to Alexandre Dayon, who will, after this assembly, continue and be a very successful Chair. With Alex, we agree on many subjects. And so I know that these committees will be in good hands. I'd also like to thank [indiscernible] for her commitment and for her contribution to the work that I did as Chair of these committees. Thank you, ladies and gentlemen, for your attention, and I'm going to hand the floor back now over to our Chair.

Thank you very much, Veronique. I'm going to give the floor now to Thierry Moulonguet, Chair of the Audit Committee.

Good afternoon, ladies and gentlemen, dear shareholders. First, just a few words about the composition of the Risk and Audit Committee. So Mr. [ Ossola ] joined the committee in February 2023, and that means that the Audit and Risk Committee has been operating with 7 members. It has 83% of independent administrators and the administrators representing employees was not taken into consideration, in compliance with the applicable rules. The company respects, therefore, the provisions of the AFEP-MEDEF Code pertaining to the share of independent administrators within the Audit and Risk Committee. All members or current members of the committee, have through their training and their professional experience, accounting skills and financial skills as it relates to CSR. As you know, this committee seeks to ensure it monitors its accounting and applies the correct accounting methods, risks and commitments and processes and proceeds with the accounting and financial processing of acquisition operations. This mission is extended to the monitoring of the effectiveness of management systems in compliance with the work carried out by the internal audit. In order to carry out its mission, the Audit and Risk Commission works with the general management, the financial department, the legal departments, the ethics and compliance departments, the sustainable development department as well as the statutory or deters whom I would like to thank for all of the work, the number of years that we have worked together. Thank you very much. The committee had 7 members in 2023. And [indiscernible] the Director of Funding and Cash flow, [indiscernible] the fiscal Director, [ Stefan ] [indiscernible] the Director of Insurance as well as Lionel Monteiller, the Director of Internal Auditing. So you see that there is a very high levels of interaction with all of the members of the financial departments to the greater extent. The committee was presented the actions as it relates to compliance with the new European Regulation pertaining to CSRD regulations. These actions have made it possible to identify the main challenges that relates to sustainability that are important for the group. The committee also ensured that the necessary resources for the smooth operation of the project was mobilized. And we were able to select the person responsible for certifying the information as it pertains to sustainability from 2025 onwards. Finally, the first exchange is with the Governance Committee and the Nominations Committee as well as the CSR Committee have been organized. And the person responsible for CSR within the committee shared with the members of the Audit Committee, the results of their work and these exchanges will continue throughout the next financial period. Thank you very much for their contribution. The Risk Committee examined questions pertaining to governance and information systems with [ Arnaud Chenu], the Director of Systems and Cybersecurity with [indiscernible]. And this is, obviously, a very important topic, the person responsible for systems and IT systems of the group. A specific cybersecurity audit was conducted in 2024 and additional members of the team were recruited towards the end of the year, and we have highlighted this particular topic. The committee specifically looked into the funding of the group and the mechanisms to generate cash. And this has helped to adapt liquidity management to the current context. The Financial Director presented the impact of high-voltage operations of value. Finally, the committee looked at the process -- the project and R&D process as it pertains to the profitability of projects that are currently being developed and the robustification of the business plan used during the accounting for customers. A number of other topics were dealt by the Audit and Risk Committee, and you'll find further details in the universal document that was communicated to you. This is accompanied with a document from the Financial Director. We have paid tribute to [ Robert Charvier's ] work, and we are pleased to welcome Mr. Fredette.

I can confirm that the work of the Audit and Risk Committee was compliant with the objectives entrusted throughout the financial year. The teams have been high performing and professional, and risks have been managed in a context of higher demand. Reservations have been placed on some of the consolidated financial statements that were presented. I should now like to wish the very best to Véronique Weil, who has demonstrated great skills as the President -- as the Chair said, but also helped usher in great results. Thank you very much.

Thank you very much, Thierry. I suggest that we should move on to the senior management's presentations, and I should give the floor to the Director General of Valeo, Mr. Perillat.

Good afternoon, ladies and gentlemen, dear shareholders. The automotive sector has fully launched itself into the greatest transformation in its history. And this transformation is a formidable opportunity, and I will be talking about this in greater detail. Valeo has a unique position, unique at the heart of future mobility and of the 3 main markets that make this possible. I'm speaking, of course, of the 3 main pillars that underpin mobility transformation. I'm talking about the acceleration of electrification, the acceleration of driving assistance software and SDV and also, lighting all over the vehicle. As you see, we have 3 departments of Valeo Power, Valeo Brain and Valeo Light and these 3 departments are ideally positioned at the center of these dynamics, and benefit from the growth of these markets. Thanks to the leadership, the technological leadership and industrial leadership. Let us begin with the acceleration of the electrification of vehicles, and this is quite simply spectacular. If we take a look at new energy vehicles, that meaning electric and plug-in hybrid electric vehicles their proportion of newly produced vehicles should hit 30% as of next year and then 50% in 2030 and 70% in 2035. Now for Valeo, this is synonymous of spectacular growth of the market that we're positioned on. This market will be multiplied by 4 in 8 years, going from EUR 39 billion in 2022 to EUR 150 billion in 2030. And this market is accessible to us because based on our very conservative calculations, our customers will outsource roughly 40% of their electric powertrains and 90% of their [ heat ] temperature, the temperature management systems. Now this market and this new Valeo power department, which is the result of the merge of our powertrain system and thermal system business groups offers a comprehensive range of solutions, it also proposes a system approach, which guarantees the best technologies for each of these components and greater competitiveness, thanks to the synergies that we are currently building. These technologies are kind of equip all types of electrical vehicles, whether we're talking about mild hybrid vehicles or plugging vehicles or battery EVs. And we're also electrifying all of what we call micro mobilities speaking of bikes, e-bikes, e-scooters and also 3-wheel vehicles. And this is the case across all continents. And you can see this on the slide. 2023 was a very positive year with solid orders for high-voltage electrification, and this impacts all regions in the world, all technologies. And in particular, the most evolved or developed technology that is to say the silicon carbon 800v. We have seen a number of innovations. We have our engine, without the use of rare metals, that we co-developed with Renault. And we also have our smart heat pump and our immersive battery cooling system. And then we also have the implementation of a new structure power, which is more effective and more competitive. Please allow me now to discuss the acceleration of the ADAS market and also the software market as well as the [ STB ] market. And this is a market, I'd like to remind you that is completely unconverted to the type of proportion, whether it's electric or not. And this market that we're on will be doubled and reached EUR 100 billion in turnover in 2030, with a number of new opportunities linked to [ STVs ] and to software itself. Now driven by regulation and innovation, driving assistance technologies will be present in almost 90% of new vehicles. That's our vision for 2030. And as you know, Valeo is the global leader in this field with the most comprehensive range of sensors and with very strong economies of sale, thanks to our sales volumes. Now as it relates to new electric and electronic architecture. We are seeing that our customers are breaking up software and hardware. And for us, this is an opportunity. We have created Valeo anSWer, which is our software offering -- and we also have a comprehensive range of software created, thanks to our 9,000 software engineers spread across the globe. For software-defined vehicles, which must be reviewed extensively, Valeo has a solid position. And in 2023, we were able to sign a number of contracts of several billion euros in what we call high-performance processes. In 2023, Valeo [indiscernible] represented more than half of values orders -- we signed 5 new contracts since 2022 in these high-performing processes. And I'd like to cite here the partners with whom we worked BMW and Renault. We have already received more than EUR 300 million in orders for Valeo anSWer, which is our new offering for software. We also celebrated in 2023, the 20 millionth front camera produced in our factories a product that we only launched in 2016, and we've already sold 20 million products. And we are ready to speed to ramp things up in artificial intelligence with Google Cloud. And as you see, 2023 was a significant year of acceleration in all these fields. The third market that will benefit from growth is the lighting market. And this is the case for inside and outside the vehicles. This market will practically double between 2022 and 2030 to hit EUR 50 billion. Again, this market has not been converted to the type of powertrain systems. Lighting is increasingly used by manufacturers to affirm the brand and the style of the brand. And this market has growing technological content and the high take-up rate of new lighting solutions such as pixel lighting. On this lighting market in 2023, Valeo benefited from a number of production launches in Europe, in North America and in China. We have received a number of orders for the front panels of vehicles and logos. We're building lighting. We have also signed strategic partnerships, in particular, with SRG Global in Europe and in North America and with Ningbo [indiscernible] industry in China. So this positioning, this unique positioning that Valeo has as it relates to the major trends of the automotive market is endorsed by our customers. And this is endorsed through orders, a high number of orders that we have seen over the last 2 years, as you can see on this graph on the screen. So we have a very full order book. If you calculate this, you will see that since 2023, we have taken more than EUR 34.9 billion in orders. And it is also important to highlight the fact that our 3 divisions are supported by the service business, which is dynamic and profitable and which represented EUR 2.3 billion in turnover in 2023, which is 10% of the group's turnover. Valeo Service continues to extend its product portfolio and to support garages with more than 1.1 million professionals that are subscribed to our digital program. We train garages, and we also are very present when it comes to aftersales particularly, as it relates to sustainable development with a product entitled Canopy. We have also ramped up remanufacturing, and this is something that we will discuss in greater detail in a few moments. So this excellent product positioning means that Valeo has a strong grounding in all regions of the world. I would also like to focus on 2 particular regions, that is to say, China and North America. First and foremost, we shall discuss China. Value this year will be celebrating 30 years of presence in China and has become the biggest global actor. We were the only French player, the only French company to present our products at the Beijing Automotive Exhibition in April, just last month. In China, Valeo has EUR 3 billion in sales. That represents 16% of the group's total sales. That's more than 80,000 employees, 35 factories and 14 R&D centers. And above all, are Chinese, we are Chinese in China, technology meets the needs and trends of the Chinese market and our technology is increasingly invented in China for China. And thanks to this technological positioning, we are able to support the growth of Chinese manufacturers in 2023, half of orders taken in China were taken with local manufacturers, and you can see some print examples of this on the screen. We go to North America. General Motors awarded us as supplier of the year as it relates to ADAS for the second consecutive year. And this is something that is very rare. We have also received the PACE award, the PACE Award is the Oscars of the automotive industry for our third-generation LiDAR. This means that we have received 16 PACE awards since 2005. We were also present for the tenth consecutive year at the CES in Las Vegas, and we were one of the pioneering French companies to exhibit at the technology festival sat by Southwest in Austin in the United States. So what does Valeo represent in North America? Well, it represents EUR 3.4 billion in sales, more than 17,000 employees, plants and 6 R&D centers, and we will continue to strengthen our presence in North America. We shall be opening a new software center in [indiscernible] in Mexico to meet the growing demand of the North American market in this field. That is to say software. And above all, we have the right technology, at a time where the North American market is becoming once again a market of technology. So we have succeeded in all of these areas. And this means that we have taken more than EUR 12.6 billion in orders, that is 3.5x the amount of sales over the year. Now Valeo's commitment to contributing to the transformation of mobility, which must be sustainable. Now sustainable development is part of Valeo's DNA and has been for some time. Technology contributes to decarbonizing mobility and improving road safety. Our approach and our as it relates to social and environmental responsibility make Valeo one of the better representative automotive players when it comes to extra financial performance. Our approach is a global approach. It includes the environmental aspect with actions in favor of decarbonization. We have technologies, our CAP 50 plan. We have the preservation of resources in this circular economy. Then we also have the social aspect through our commitment to our employees in the field of health safety, skills development and job satisfaction. And then also the societal aspect with commitments to the communities that we operate in. And we're perfectly aligned to meet our environmental objectives, whether this is to do with the decarbonization through our CAP 50 plan. Water consumption, which is also very important, but also in terms of waste production. Now as it relates to decarbonization, we will be reducing our greenhouse gas emissions by 75% on our own operations by 2030, and we will be reducing emissions linked to our suppliers by 15%. In 2015, we will have reduced our carbon emissions by 90% and compared to 2019 levels and the remaining 10% will be neutralized. And we will be able to do so, thanks to concrete initiatives as such as those that you can see on the screen. We are taking action, and we are doing so right across the globe in all of our -- on all of our plants in all fields and on all of our products. Now the challenge of decarbonization goes hand-in-hand with resource preservation. And we are providing solutions to this by ramping up our action in the field of the secular economy. And I'll talk about this in greater detail, but I should like to give the floor to Mino Yamamoto, who is the Director of the Secular Economy at Valeo.

Thank you, Christophe. Innovation for future mobility will be sustainable or it shall not be. And this is why Valeo ensures that the decarbonization goes hand in hand with the circular economy. As such, we are taking into consideration all of the life cycle of the product by ensuring that we integrate the entire value chain for sustainable innovation. The priority of the automotive sector is to reduce CO2 emissions and therefore, to decarbonize the usage. At Valeo, 60% of our sales contribute to this, thanks to the electrification and the thermal management of batteries for all forms of mobility. And of course, electrification must go hand in hand with the preservation of natural resources. For example, alongside Renault, where codeveloping a new generation of engines with the genuine technological capacity because electrification is not possible, without teamwork to best pull our skills and our resources. As you will have understood, we are building future mobility ecosystem With our entire ecosystem. And of course, we are involving our suppliers so that we can decarbonize our supply chain. Our challenge here is to optimize our -- the use of natural resources whilst reducing the carbon impact. As such, we have already begun to identify 7 sources of recycled aluminum and 60 or so bio-sourced recycled polymers with our suppliers. But we are going to get further in this with our secular economy program, we will be closing the loop by using in greater numbers and of live products. We want to ensure that we retain the value of assembled products as long as possible, and we shall do this thanks to recycling. In 2023, we will be launching an circular economy program, which will be built on 4 pillars, and we will be doing this at full speed. There are many similar programs within the industry. But at Valeo, we do things differently. Why? Well, in today's world, when we speak of the circular economy, there can be many amalgamations that are made. People think immediately of recycling, and that is [indiscernible]. Why return to raw materials, where as we wish to first and foremost to use end-of-life products, and that is the objective of our program. For us, first and foremost, the reverification to maximize the sustainability of products. Then to repair and remanufacture to repurpose end of life products. And then to recycle, to return to raw material that can be reinjected into new products. Our 4 Rs hours are our solution to preserve natural resources both for society and for the planet. These 4 Rs were designed to promote our core business, and that is the product. Our circular mission is very clear. We wish to extend the life cycle of an assembled product as long as possible so that we can preserve its value as much as possible. And to reach our ambition of circularity, we must take action in 3 areas: business, design and operation. Let's begin with business. repair and remanufacturing for sustainable after sales. And this is something that we are already doing and that enables us to extend the life cycle of products that are currently in circulation. We have 40 years of expertise in this field with 1 million reconditioned spare parts per year, and we hope to ramp this up to hit EUR 2 million per year by 2030. Remanufacturing is at the heart of our circular strategy because it enables us to produce spare parts whilst using end-of-life components rather than new materials. A manufactured spare part enables us to save 80% of new materials and reduces the carbon footprint. These environmental gains cannot be done to the detriment of quality. At Valeo, we have extremely demanding processes for spare parts. When we remanufacture spare parts for after sales, we follow exactly the same standards. Finally, we also offer a 2-year guarantee on remanufactured products. We are currently expanding our range, which comprises 8 product lines. We have spare parts, alternators, brake calipers to meet the needs of the current automotive fleet. But the automotive sector is currently being transformed in the future. Cars will be electrified, more autonomous and connected. And our challenge is to remanufacture more technological products to support the transformation of this fleet. And therefore, we extend our remanufacturing product range. We have already launched 3 new product groups. First and foremost, with the remanufactured front camera, Stellantis. First, a global first. And we will also be going beyond the automotive sector. We have just launched a repair system for engines and batteries for electric bikes. And of course, this transformation requires new skills. And here, we are also taking action. Last year, we launched our first circular electronics lab in Nevers. The circular economy is also an opportunity to reinvent our industrial activities and to redynamize our sites. Nevers was the pilot site that led to this success with Stellantis, and we hope to replicate this model elsewhere in Europe. As you can see, the circular economy is not just a business, it is also a conviction. And of course, Valeo is a recognized player in the automotive industry, but we are much more than that. Valeo spare parts for electric bikes, electric cutters. And circularity goes beyond cars. At Valeo, we find ourselves in a unique position to build the sustainable automotive sector of the future. And Valeo and [indiscernible] are collaborating on some together in this respect. And we will continue to speed up our road map. We're going to concentrate on the electronics of EVs but not solely because as I said, electrification must go hand-in-hand with the circular economy. Because we can't be satisfied with throwing away expensive and complex electronics with a lot of precious metals as soon as a component is faultiness and has a defect. So we're also going to recondition headlights and screens. And finally, when in operations, when it's no longer possible to preserve the value of a product, we opt for the final R, which is recycling in order to preserve the value of the materials. Beyond the ecological issue, this is a strategic issue, particularly for Europe, which is heavily dependent on imports of sensitive metals such as magnets. However, there are unexploited urban mines on -- in our lands. That's why Valeo is a stakeholder in the MAGNOLIA project, which brings together collectors, recyclers, magnet manufacturers and equipment manufacturers. Our goal is to set up a first pilot line in order to initiate a French permanent magnet recycling sector. The project will determine the technical and economic conditions necessary for a recycling plant at a European scale. So as you can see, recycling is being anticipated. That's why Valeo, we're resolutely committed to concrete action to develop that sector. So to conclude, the circularity in the automotive and mobility industry are major economic and societal issues. Our 4R vision is to extend the life of final assembled products as long as possible to retain their value. Our goal is, therefore, to double our capacity to remanufacture parts by 2030 in order to support the transformation of the vehicle fleet. And finally, we're also innovating to make sure that our future generations of products are more circular. We use our know-how to invent products that can have several lives. This is what will accelerate the deployment of circular economy. And it's also innovation that will come to -- become a premium because circular economy will have to be profitable in order to be sustainable.

Sustainable development is concrete and its business in itself. So thank you for having talk to us about this. Now let's move on to the financial aspects of our company. I'd like to ask your attention because the story that we're writing has been written in 2 different stages. The first is the 2000 -- goes from 2025 to -- '22 to '25, which corresponds to our strategic move up plan. And then after that, we'll be -- Valeo, we'll have restored our margins based on existing contracts. The second phase will then begin after 2025. Valeo will be accelerating its transformation through greater margins generated for better margins orders as registered since 2022. Since 2021, we've been working a continuous trajectory of improved profitability and free cash flow -- cash generation. And this will continue up until the end of the move-up plan and then beyond, of course. Our operating margin will thus increase by 1.7%. in 2021 to between 5.5% and 6.5% in 2025. And our cash generation, which is an absolute priority for Valeo will also be continuously improved as you can see here on the screen. This will continue even after 2025. So we'll have a significant improvement in our cash generation up to about EUR 500 million and EUR 800 million, respectively in 2024 to 2025, which is EUR 350 million and EUR 650 million after the one-off and exceptional cost reduction of these measures due to restructuring. Our CFO, Edouard Pirey, who is speaking to you for the first time will come back, will tell you more about that in detail. This continuous improvement trajectory between 2025 and 2020 -- 2022 and 2025 is based on 3 key levers: first, control pricing -- prices or our pricing power, which is the management of inflation, thanks to the efforts made by all of our teams to pass on the cost of inflation to our customers. Second is cost reduction with the implementation of measures that will allow us to save EUR 200 million over a year. And finally, the strengthening of our cash culture. Our culture based on cash flow, which will be dependent on the selection of orders and strict control of our investments in our working capital requirements. Then beyond 2025 Valeo's transformation will continue and in fact, accelerate. It will be supported by higher margin orders recorded since 2022, and this will improve the group's operating margin mechanically beyond 2025. So starting next year, we'll be hosting a new Capital Market Day to detail this road map and our financial goals beyond 2025. So as you can see, this is an immense transformation that is underway in our sector in the automobile industry. And this is -- represents tremendous opportunities for our group. We're prepared and we're well positioned at the very heart of this transformation to benefit as much as possible, and you can count on us to seize these opportunities. Thank you. Dear shareholders, thank you for your support, and thank you for your trust.

The accounts for 2023 and the figures for the first quarter of 2024 and perspective for 2025 will now be presented by Edouard de Pirey, who is CFO. We'll be looking at the different elements of -- for the report of the management by the Board of Directors and the statutory accountants' reports, which are in the -- which are available on the website. I suggest that, as usual, we not ask the Board and the statutory auditors to read the entire report.

Thank you. Mr. Chair. Hello, everyone. It's a great honor for me to be here with you today, almost 5 months after having taken responsibility for the financial management of your company. I'd like to sincerely and warmly thank Robert Charvier, for his support throughout our handover between July '23 and March 2024. Robert showed not only his usual professionalism, but also the patience and benevolence, which enabled me to fully take over this new position. It's my pleasure to present Valeo's financial results for 2023, sales for the first quarter of 2024, and I'll conclude with the information on the outlook for 2024 and 2025. You will note that my presentation is divided into 4 sections in accordance with our 2023 organization. The next half year results at the end of July will be broken down into the 3 segments in accordance with our new 3 division organization. In 2023, Valeo achieved all of its objectives. The turnover reached a record level of more than EUR 22 billion. The EBITDA margin reached 12% and the operational margin 3.8%, a significant improvement compared to 2022. And finally and importantly, the cash generation target was exceeded with free cash flow of EUR 379 million. Now let's take a closer look at the group sales. All segments recorded a good level of organic growth in 2023. Original equipment sales increased by 13%, replacement business and other sales increased by 4%. The operating margin reached 3.8%, up 1.4 points compared to 2022. This improvement is mainly due to the level of activity, as I just described. The result of our efforts to achieve efficiency and cost synergies through our implementation of our efficiency plan and a better efficiency of our spending on R&D. Allow me to stress that last point. The effectiveness of our R&D is a major aspect of improving our profitability. And it has been reinforced by the standardization of our products through platforms with technologies that can be reused from application to application, and at the same time, by increasing our engineering and software skills in countries with more competitive costs. As a result, when order -- while order intake has increased by 60% over the next 2 years, but research and development spending has only increased by 30%. So half. That is proof in the numbers of the strong improvement of our efficiency. The net income increased sharply by 50% despite the increase in financial expenses. These financial expenses increased significantly from 1 year to the next as a result of interest rates. These financial expenses remain sustainable for the group and are stable in 2024. Now let's look at the EBITDA by segment. The Powertrain Systems division with sales output of 9 points -- outperformance of 9 points recorded the strongest improvement in EBITDA margin by 2.9 points, thanks to very good progress in implementation of synergy resulting from the integration of the high-voltage electrical activity and thanks to the positive contribution of traditional powertrain activities. For Comfort & Driving Assistance division, the outperformance is by 4 points. The EBITDA margin is the highest in the group, slightly lower than in 2022, but we're preparing for the future growth following exceptional order intakes recorded over the past years. The Visibility department -- Visibility Systems, the EBITDA was supported by good momentum after -- in the business. And in the Thermal division, EBITDA margin improved. Despite a 1 point underperformance in sales in the second half of the year, EBITDA margin improved by 2 points compared to the first half. So as you can see, on the one side, we're strengthening our strengths by preparing for faster growth starting in 2025. And on the other hand, we're working to improve our weak points in order to be even more high performing. Now let's move on to cash generation for the year. Free cash flow was EUR 379 million, which was higher than expected. In particular, it benefit from the positive contribution of EBITDA, up EUR 324 million compared to the same period in 2022. The change in working capital was a positive resource of -- representing EUR 278 million despite the need to maintain normative levels for semiconductor stocks and the volatility of some clients' programs for certain platforms in 2023, particularly when it comes to electric development. So capital expenditure has been strictly controlled at EUR 964 million. Investment in intangible assets amounted to EUR 1 billion, including the capitalization of R&D directly related to the strong order momentum. Net financial debt at the end of the year was stable at EUR 4 billion. Our leverage ratio of net debt-to-EBITDA improved, 1.5x, down 0.2 points. This situation allows us to offer you today a dividend of EUR 0.40 per share, an increase for the fourth consecutive year and in line with our commitments under the move-up plan. This level of dividend illustrates our confidence in the year 2024. Now let's look at activities for the first quarter of 2024. The revenue for the first quarter reached EUR 5.4 billion. Organic growth was positive at plus 2%. All segments significantly overperformed production in the first quarter, plus 9% for Traditional Powertrain activities, plus 7 points for the Driver Assistance division -- for ADAS, and 6 points for Visibility Systems and 4 points for Combustion Engines. Only the high-voltage business, in other words, for hybrid and electric vehicles, underperformed as explained by Christophe Perillat. The business record -- recorded a low level of sales at around EUR 200 million during the first quarter, down 50% compared to the same period in 2023. As we explained earlier, the market is volatile, and we've seen a significant drop in production volumes in some electric vehicle platforms in Europe. In addition, the basis of comparison was unfavorable to us this quarter. Our high-voltage sales had increased by 69% compared to the first quarter of 2022 due to the accumulation of inventory at some -- with some customers. So 2024 offers less visibility for that business in the short term, but we remain convinced of the positive long-term trends in the electric vehicle market. Electrification is indeed at the heart of the transformation of mobility. At the same time, the good news is that our traditional businesses are enjoying sustainable and profitable growth of plus 8%, especially in transmission systems and 48V activities. As you know, traditional activities are less demand in terms of investment in R&D and therefore, promote more cash generation. The group's growth in the first quarter was driven by North America with an overperformance of 8 points, thanks to the strong momentum of powertrains combustion and visibility activities. Europe is slightly negative at down 1 point, which is a direct consequence of the low volumes observed in electric vehicles. In China, the group outperformed automotive production by 2 points, thanks to good momentum from the visibility and combustion activities, particularly for electric vehicles. In Asia, outside of China, we've continued to perform well, particularly in Japan and South Korea. And finally, your group's financial outlook for 2024 and 2025. You'll note that we've chosen to base our forecast on the basis of conservative market assumptions at minus 3% compared to the Standard & Poor's mobility industry standard. As presented by Christophe Perillat, we're aiming in 2024 for revenues between EUR 22.5 billion and EUR 23.5 billion, EBITDA between 12.1% and 13.1%, operating margin between 4% and 5%. And finally, the continuous improvement of our operations will generate approximately EUR 500 million in free cash flow of which EUR 150 million will be allocated to fund exceptional and one-off reorganization and efficiency measures. So after deduction, the free cash flow will be around EUR 350 million. We expect a gradual increase throughout the year, leading to higher margins and cash generation in the second half of the year compared to the first half. For 2025, we aim for revenues between EUR 24.5 billion and EUR 25.5 billion, EBITDA between 13.5% and 14.5%, operating margin between 5.5% and 6.5% and free cash flow at around EUR 800 million, including EUR 150 million to be used for exceptional reorganization and efficiency measures and that will lead to free cash flow of around EUR 650 million. As Christophe explained, we're accelerating Valeo's transformation with 3 levers to increase the operating margin over the 2023 to 2025 period from 3.8% in sales to between 5.5% and 6.5%. The first lever of this transformation will be driven by the strong increase in our most recent orders as well as in underlying margins, which should fuel our business and contribute to an improvement of our margins by about 0.9 points. The second lever is the transformation driven by our cost reduction initiatives and other operational efficiency improvements, including the merger of the Powertrain and Thermal Systems businesses. That lever should contribute positively to our margin of around 0.8 points. The third lever for 0.5 points will be obtained, thanks to the transformation of our financial culture as we'll see in just a minute. Our #1 priority for the next 2 years is clearly cash generation at all levels of the organization. Every decision is now made with cash generation as a first consideration. And particularly -- in particular, we apply a selection on our order intake that allows us to reduce the need for plant usage and equipment and R&D. Given our record intake in 2022 and 2023, we can afford to lower the level in 2024 and 2025, while ensuring the good growth for the group in the medium and long term. And that is how we expect to reach about EUR 800 million in free cash flow in 2025 compared to EUR 200 million in 2022. To conclude, our 2025 -- '24-'25 plan is prudent and solid. It involves an 11% increase in turnover, an increase of more than 60% in operating profit and an increase of more than 60% before exceptional measures in our free cash flow. This is an excellent road map. It will require a lot of work and perfect execution. And we're totally confident in its realization. Thank you very much for your attention.

Thank you, Edouard. I'm going to ask Ernst & Young's representative, Philippe Berteaux to present the -- their reports.

Thank you, Mr. Chair. Ladies and gentlemen, dear shareholders, in the name of Valeo auditors, I'm going to be presenting a report that -- for this meeting for today. These reports were made available for you before this meeting, and so I'm going to just limit myself to the essential comments. Our report concerns the certification of reports on the accounts, the annual reports and the regulated agreements. First of all, on the second resolution, we've -- we certified the consolidated value accounts. The work that was done took into account the characteristics of the group in terms of organization, accounting rules, internal control and the risks involved in the activity. The work was presented to the general management of this company, to Audit Committee and to the Board of Directors. It was implemented by the statutory accounts for France and abroad. The accounts developed in our report concerned the impairment test on goodwill, the valuation of the value automotive rate and specific quality risks as well as other specific risks. For each of these items, we looked at the accounting methods that were applied and we saw that the accounts were fair and true. And we also unreservedly certified the 2023 statutory accounts. And our -- this also has -- is good for the shareholders. We were also -- so there were -- we made no observations. So we saw that there were no authorized conventions concluded during the year. And finally, given the extraordinary characteristics of this assembly, we admitted a report on the authorization given to the Board to issue shares and securities, free -- future free shares. We've no observations on these various operations, which follow the provisions of the Code of Commerce. Ladies and gentlemen, thank you for your attention.

Thank you, Mr. Statutory Auditor. Ladies and gentlemen, dear shareholders, I'd now like to declare this -- the question-and-answer session open. In order to make things run smoothly, Id like to suggest that each person be limited to 2 questions maximum. We've also received a question by writing, and I invite you to look at the answer, which is on our website. We had a certain number of hosts and hostesses in the room with microphones. And the floor is yours if you've questions. Sir, please.

I'm an individual shareholder, [ Mr. Duchet ] I'd like to come back to the optimism about your power division. I think that there's a bit too much optimism for that action for several reasons. The stock of certain sections of -- the client tell us are being saturated. The prices are high. People are disappointed with the battery performance. And so when you look at -- there are new assessments every week on battery performance. The repair prices are exploding and insurance prices are also increasing. And so I believe that things are not going to move as quickly as you say. And there's another phenomenon, which is that there is -- there are European elections in June. And the new European assembly may not be -- have the same view as the one that voted the end of thermal engines in 2035. Other very short question, very different question. On your website, I can -- I see everything, all the activities that you've. I was looking for the 48V hybrid, and I couldn't find that on your website.

Those 2 questions, very relevant questions concerning the future of that sector of electrification. And I'm going to give the floor over to Mr. Perillat, who is going to give you his ideas on that.

Thank you for that question. We've no doubt as to the long-term growth of electrification. We're convinced that, that technology will be the technology of the future for a simple reason, and that's that so much of the CO2 emissions come from road transportation. And so we've to decarbonize the mobility, and there we don't have 100 different solutions. And the main solution is electrification. Regarding the question of mobility, we're not talking only about electric vehicles. And I think I tried to say that. Of course, the electric battery vehicles are important, but also the rechargeable hybrid vehicles and the lightweight hybrid vehicles like what you call the 48V. So there's a whole range of electrification technologies. And depending on policies and geopolitics, depending on consumers lifestyles here and there, the response could be different continent by continent. We talked about Europe, but we're an international company. And the figures that I gave you for the first quarter from January to April, the figures do show progression of electric vehicles and particularly for battery vehicles in the world, 14% in China, up from last year and also up by 5% in the U.S. and 3% in Europe. So even in a context where electrification -- battery electrification is maybe seen with a little bit more hesitation than before, figures do continue to rise. And if you look at electric vehicle -- battery vehicles plus rechargeable vehicles in the first month of the year, they represent 20% of new registrations in the beginning of the year. So once again, Valeo is ready and positioned to meet all hypothesis, where we work on electric battery vehicles, on rechargeable hybrid and also for the 48V hybrids. And I think that this is really a strong point that we've developed these 3 technologies and that we're basing our work. We're progressing on all 3 of these main production sites as well and that we'll be ready for the events and the life -- consumer life and for the market, and we'll be able to respond to that, and we'll be able to respond as best as possible. Concerning where you find the vehicles equipped with the 48V technology. I'm afraid I can't answer that question. They can be found with Peugeot and Renault, particularly.

Are there any other questions? Sir. No madam. Go ahead.

I'd first and foremost like to thank you very much for the work that has been conducted over the 2024 financial year. And also thank you very much for the financial outlook. I'm very optimistic. And I think that the proof is really in the pudding here for shareholders, but I'd like to make a comment how is it that our outlook is very promising, but the market doesn't seem to be following this trend? We've seen that activity has dropped over the last few years. Do you know why? And how can we find a solution to this?

Thank you very much for that question, which discusses the financial outlook that we've just presented compared to the achievements we've made. I think that the question is justified. And this is something that draws all of our attention. And I think that Mr. Perillat will be able to provide you with a comprehensive answer.

Well, thank you very for your trust and your confidence. Thank you for being a valued shareholder, and thank you for believing in the strategy that we've just presented to you. Valeo's history is the -- is a story of value creation. We've a plan to create value that we've sought to demonstrate once again here today. This plan, we conceived it at the beginning of 2024. It's a 4-year plan. So 2022, '23, '24, '25. Now we've been able to demonstrate that we've stuck to our move-up plan. And we did this with the greater headwinds. We had the semiconductor crisis. We had significant inflation of wages and raw materials. And despite all of these headwinds, we've been able to deliver for all objectives of the 2022 plan. Now in 2023, we've met all of the objectives that we set ourselves for the year. Now what remains are 2024, 2025 and the Financial Director of the group just expressed his confidence in this respect. So we remain determined and extremely focused, all Valeo's teams are to deliver that plan, the value creation strategic plan that we devised in 2022 and which will lead to a significant improvement of our shares. So you can count on our full determination to roll out this plan to execute it to ensure that it is a success. We did this for the first half, and I think this will be the case for the second half. And I think that the positioning of Valeo, Valeo's technology and also the road map that we've to build a more robust profitable value will lead to improvement of shares.

Thank you very much. To the gentleman at the front row.

I asked you a question last year about China. I'd like to repose the question because it's biggest market. Are you sure that in China, there isn't a small Valeo that is working backstage to outperform you in some way?

Thank you very much. Thank you very much for that question, which is a very insightful question. The emergence of China is a considerable market opportunity. And this accompanies the emergence of new players. So this is really at the heart of our competitive concerns, that is to say, to ensure that we can secure our competitive position on this market. Christophe, I will allow you to give greater detail.

Thank you very much sir for your question. Valeo is evolving in a very competitive climate in China, of course, but also elsewhere in the world. It's the case in North America. It is also the case in Europe. It is my belief that we've a way of demonstrating the strength of our technology and our competitiveness. And this is based on the way that our customers trust us. And that is why I showed you the order intake, the order intakes that we had in 2022 and 2023 really reflect our technology and our competitiveness. And this order intake is good globally. You observed twice as many in 2022, twice as many in 2023, and they're strong globally in North America and in China. So yes, there is competition, which is fierce in China, but we also have many assets. And those assets are our technology, our ability to conduct advanced research and to ensure that said research is established on volumes that are not Chinese volumes, but rather global volumes. And our second strength is competitiveness. And so your question was to say -- was to ask as whether we were competitive in China. And as I said earlier on, we're Chinese in China. In China, our costs are Chinese, they're not European costs or expenses. If you observe the pre-COVID period, which seems so long ago now, but just look back to 2019, we had 150 Valeo expatriates in China. Now, we've 8 today. We had 18,000 employees in China and only 8 expatriates. So 17,992 Chinese employees, our teams are Chinese, our factories are Chinese, our teams are Chinese, our technologies are global. Our suppliers are Chinese. So our costs are Chinese. And therefore, we're able to fight this fierce competition just as we do elsewhere, thanks to our technology and thanks to our competitiveness. Thank you.

I've another question. Have you had any opportunities in Russia?

Yes, we've a business in Russia. We have a part of the group's activities there. We -- after the beginning of the Russian war in Ukraine, we announced that we'd suspend activities in Russia. This took some time to do in an orderly fashion. And we announced at the top of 2024 that we've managed to sell the 2 production units, the 2 factories that we've in Russia to a buyer. And so we're no longer present in Russia. That represented less than 1% of the group's turnover, so it was not very significant, but we took this commitment and we've delivered on that commitment to leave Russia.

Mr. Chair. I'm an individual shareholder and have been for 15 years or so. And I've observed compared to the other business lines in my portfolio that Valeo shares are very volatile, it's quite frequent to see fluctuations from 1 day to the next of 3%, 4% or even 5% sometimes. And this volatility, the significant volatility may be anxiety-inducing for some shareholders. So my question is as follows, do you not think that the enlargement of the proportion of small shareholders could stabilize the shares as we've seen with other companies?

Thank you. Private shareholders represent 8% of our shareholding. 8% of Valeo's capital rather, and we need to add 4% of shareholders who are employees so that makes 12%. And so all of the funds, pension funds represent 85% of Valeo's capital. And so this can lead to volatility and we've seen this over the next few -- over the last few days. Edouard, would you like to perhaps add to that?

I think your question is a legitimate one and it should be looked into it. I think that Mr. Fredette will discuss this further. Now our shares are available to whoever believes in our history and our story. And we'd like to thank you for supporting us for 15 years, and we hope that you'll stay the course whilst we deliver the plan that we've just presented.

Sir?

I'm from the publication [indiscernible], I've 2 questions. The first on order intake, which has been very high in 2022, 2023, 2024, and also the willingness to slow things down. Is this not paradoxical? So this desire to be more selective to improve profitability. This might be positive in the short term, but in the midterm, this may weigh heavy on volumes and the profitability beyond 2025. And the second question, can you tell us more about your restructuring plan that you mentioned? You spoke of the impact on cash flow. Can you speak to the impact on the operating income?