Valeo SE ($FR)

Ladies and gentlemen, dear shareholders, thank you for being with us today for Valeo's Annual General Meeting. This meeting is convened by the Board of Directors following publication of the notice of the meeting of the bulletin [indiscernible] and the notice of the same bulletin and the electronic version of the legal [indiscernible] on April 29, 2026. The meeting is being broadcast live on the company's website. And like every year, it is a subject of video recording which will be available on the general meeting page of our website. I will be chairing the assembly in my capacity as Chairman of the Executive Board. On my side, we have: Christophe Perillat, Chief Executive Officer; Edouard de Pirey, Chief Financial Officer; Eric Antoine Fredette, General Counsel and Secretary General. The members of the Board of Directors are seated in the front row of the room. The statutory auditors and sustainability auditors are also present. I suggest now that we move on to the composition of the bureau. I'd like to remind you first that -- with the 2 members of the assembly with the greatest number of votes and who accept the functions of scrutineers are -- those who have accepted are Sitam Belgique with Dassault Group represented by Mr. Guillaume Louis and the Amundi company represented by Madam [ Orsor Yagal ]. The bureau thus constituted, proposes to appoint Mr. Eric Antoine Fredette as Secretary of Assembly, and I'm going to give him the floor to let him indicate the provisional quorum of the assembly and so he can explain the agenda.

Thank you. Societe Generale, the centralized institution responsible for organizing the member has informed the members of the Board of the state of the provisional quorum. After examining the attendance sheet certified by the members of the Board, it appears that the number of shareholders present represented or having voted by mail or by [indiscernible] are 166,149,144, representing the sharing rights, and the office has thus validated the tablet. The shareholders' meeting compromises more than 1/4 of the shares with voting rights is therefore duly constituted and may validly deliberate whether on ordinary extraordinary basis. Your assembly has been convened for the purposes of deciding on the agenda, which appears on the screen or should and which can be found in the notice of meeting. I suggest that -- you do not need me to read it to you. But here, you have the agenda on the screen. The meeting documents have been made available to the shareholders on the meeting's desk. And I'd also like to remind you that all the information intended for shareholders is also available on the company's website. Mr. Chair, I give you the floor.

Thank you. I declare that all documents and information required by the regulations in force have been communicated or made available to shareholders in the manner and within the time limits provided for by law. Ladies and gentlemen, dear shareholders, it's a great pleasure for me to be with you today to present our 2025 results, our outlook, our strategy, our governance and, of course, our resolutions. The global automotive industry has undergone some profound upheaval during the recent years following major technology breakthroughs in the field of mobility, electric motors, batteries, sensors, computers, connectivity, artificial intelligence, software, et cetera, but also given the increased presence of Chinese players in the sector now representing 26% of the global industry. These upheavals are now occurring in an uncertain and rapidly fluctuating macroeconomic and geopolitical environment. To meet the challenges and achieve our ambition for growth, profitability and leadership, we have based Valeo's strategy on 3 pillars. First of all, assert of technological choices based on high level of innovation for carbon-free mobility and for safer mobility. Second, presence in all regions of the world with a particular focus on expanding and strengthening our positions in North America and in Asia, with a special focus on India and China. Finally, strong competitiveness through industrial excellence, cost control and supply chain stability and agile and responsive organizational structure, and now on the powerful lever of artificial intelligence. In 2025, our strategy enabled the group to meet its financial objectives and led to continuous improvement in operating performance and profitability, with free cash generated by operations reaching a record level. These remarkable results are in line with the initiated since 2022 under the leadership of Christophe Perillat for more sustained and profitable growth through strengthened leadership. And in November 2025, based on our strategy and our results, the group presented an even more ambitious vision for the next 3 years with its Elevate 2028 strategic plan developed with full support of the Board. Christophe Perillat will discuss that more in detail in a little while. Given these results, your Board of Directors has decided to propose the payment of dividends of EUR 0.44 per share, an increase of approximately 5% compared to the 2024 financial year and approximately 10% compared to the 2023 financial year. The increase in dividends has been constant since the 2021 Annual General Meeting. To achieve the objectives we have set and to enable the group to continue its development in a complex and highly competitive environment, 3 subjects are being monitored with particular attention by your Board of Directors. The accelerated deployment of artificial intelligence, first of all. In light of this disruptive technology, the Board's role is to ensure that the group is to quickly identify and implement the opportunities created by artificial intelligence, and in addition, that we adapt in order to disseminate the implications within the organization and even within our corporate culture. It is notable that Valeo has already implemented powerful levers to transform its business offering and the performance of its organization, as illustrated by the significant use of new technologies in R&D. However, the speed and frequency of changes in the field require extreme agility, and the issue is expected to be a long-term part of the group's strategic agenda. Secondly, rebalancing the group's business in China. As new dynamics redefine the Chinese automotive market, Valeo aims to increase its market share with all Chinese manufacturers in order to support or even to exceed growth on the market, which is the world's largest. The Board is confident that Valeo has all the necessary assets to achieve this objective through strong local presence initiated over 30 years ago and a strategy that promotes the autonomy of local teams for greater invention, speed and competitiveness. In 2025, China is already Valeo's largest country for operations with 22 production sites, 10 R&D centers and approximately 17,200 employees, including 3,400 engineers dedicated to innovation and technological development. Finally, the group is exploring opportunities to develop its activities beyond the automotive sector. Valeo has a well-recognized how to -- know-how, excuse me, and masters many technologies that can provide solutions in other sectors of activity, for example, data centers, agriculture, light electronic -- electric mobility. The Board of Directors encourages these initiatives and monitors their development. As Chairman of the Board of Directors but also Head of Governance, Appointments and Corporate Social Responsibility Committee and the Compensation Committee, I would like to discuss a number of matters concerning governance and functions of the composition of the Board. In terms of governance, firstly, I'm pleased to report that your Board of Directors continues to function smoothly and efficiently, particularly in regards to rich, open, respectful and frank dialogue between the directors. This is reflected in the evaluation of the functions of the Council, the Board, the results of which are described in our registration document for 2025. The solidity of our governance is also based on the diversity of the Board in terms of experience, but also skills, independence and diversity, which allows it to accompany, question, support and ultimately to endorse the decisions made by management. Your Board of Directors is currently composed of 15 members, 2 of whom represent employees and 1 represents employee shareholders since the 2024 shareholders' meeting with an overall independence rate of more than 91%. This configuration, combined with the staggered renewal of terms of office of the directors, ensure a healthy balance between independence, diversity of expertise and understanding of the group's strategic challenges and operational realities. The arrival of Gilles Le Borgne last year on the Board, as appointed by your assembly last year, has made it possible to strengthen the Board's competence in the automotive sector and in technologies adapted to the car of tomorrow. In order to maintain this momentum, we propose that you renew the terms of office for 2 Board members whose terms of office expire at this meeting, that of Bruno Bezard and that of Bpifrance Participations, one of our main shareholders, represented by Alexandre Ossola. Their commitment to the Board has been exemplary. And I would particularly like to thank Bpifrance Participations for their trust and their constant support for the Board and for Valeo. In addition, Sascha Zahnd has decided to hand over his mandate to the Board at the end of this general meeting for professional meeting. And I'd like to thank him on behalf of the entire Board as well on my own behalf for his valuable contribution to the work of the Board of Directors and the strategic committee based on his rich industrial and international experience. As a result, we would like to propose the appointment of a new Board member, Madam Fabienne Lecorvaisier, who is here with us in the first row, and who I would like to greet and I'd like to welcome her. If her appointment is approved, she would bring to the Board of Directors her experience acquired through various positions of responsibility both in France and abroad within international industrial groups, [ her ability ], both in France and abroad within international industrial groups, her expertise as CFO as well as for experience and skills in the field of strategy, mergers and acquisitions, financial transactions, information systems, energy transition and sustainable development. Finally, my own term as member expires at the end of this shareholders' meeting. The Board, on recommendation of the Governance Appointments and CSR Committee, has proposed the renewal of my mandate as Chairman of the Board of Directors at the Board meeting to be held at the end of this meeting. As we have indicated in our public documents, specifically the 2025 Universal Registration Document, the report of the Board of Directors to the general meeting and the press release convening the general meeting, the age limit provided for in the Articles of Association defined at the end of 2027 does not allow me to exercise this role beyond this deadline. Given those elements, a reflection on the chairmanship of the Board of Directors beyond 2027 has been initiated, and an adhoc committee of the Board has been composed the independent members, and it has been set up for this purpose in order to suggest possible solutions to this problematic. Subject to the approval of the resolutions that will be submitted to you, the Board of Directors will be composed of 15 members at the end of the shareholders' meeting, 91.66% of whom will be independent directors, 50% of whom will be women, excluding employee Board members. And I'm also pleased to announce that the company is complying in advance with the rules resulting from the women on [ boards directive ] as transposed into French law. Now regarding nonfinancial performance, the government's Nominating and Corporate Social Responsibility Committee closely monitors ESG topics, which are a central component of our Valeos. They are at the heart of the group's culture, and there is a complete alignment between the Board of Directors and general management regarding our ambition to be exemplary. The robust governance put in place at all levels of the organization allows for rigorous and accurate monitoring of the CSR topics which goes beyond the sustainability report. This report is included in Chapter 4 of our 2025 Universal Registration Document and has once again been unreservedly certified by the sustainability auditor. As you know, ESG covers many themes, including climate and diversity. In regards to climate, we continue to monitor the implementation of the CAP 50 plan, which is an ambitious medium- and long-term CO2 emissions reduction plan as presented to the market on February 4, 2021. As we now do every year, an update on the group's climate strategy will be provided at this meeting. The group is working on these issues, as you know, with great commitment. Valeo has reduced its greenhouse gas emissions from 49.5 million tonnes of CO2 in 2019 to 39.2 million tonnes in 2025. Beyond the climate, the implementation of diversity and inclusion policy, which is a key element of Valeo's culture, is also being monitored very closely in compliance with applicable legislation, and particularly in the United States, and the group's ambitious objectives, particularly with regard to the presence of female talent in the group's management committees. Finally, Valeo stands out for its commitment to professional equality with once again this year, the improvement of professional equality index between men and women. The ambitious ESG objectives that the group has set for itself are being met, thanks to the unwavering involvement of all of the group's employees. For several years now, Valeo has enabled its nonfinancial performance to be recognized by the main rating agencies and to maintain its position as one of the best rated automotive suppliers, and we are very grateful for that. I would now like to discuss some issues regarding the compensation for corporate officers, and I will make 4 comments. First, the compensation policy for the directors and the Chairman of the Board remains unchanged. The 2026 compensation policy for the CEO is in line with the one you approved in 2025 at 91.41%, with ceilings for variable and long-term compensation remaining unchanged. With regard to fixed compensation, EUR 1.1 million was approved in 2025 for the CEO's compensation policy and has applied since the 1st of January 2026. The annual long-term variable compensation for the CEO for 2026 will be subject to the same performance criteria as that of 2025 with some adjustments, which are described in the compensation policy of the CEO -- for the [ CEO office ] set out in Appendix 6 of the meeting notice, specifically on Page 75. The resolution allows for the allocation of free and performance-linked shares, which we are asking you to renew this year, including a volume that takes into account current market conditions. Please note that the structure of the performance action plan, as described in the Board of Directors report, is perfectly in line with that of previous years. Now before handing over to Veronique Weill, Chair of the Audit and Risk Committee, I would like to warmly thank on behalf of the Board of Directors, I would like to thank Valeo's teams for the commitment and agility and quality of their work, which have enabled this wonderful performance. Thank you.

Good afternoon, ladies and gentlemen. The Audit and Risk Committee was composed of 7 members for the entire duration of 2025, and 100% of its members are independent according to the definitions in the Board's internal regulations. The directive presenting the employee shareholders is not taken into account in this calculation, in accordance with the applicable rules. The company complies with the provisions of the [ Mid-f ] code relating to the share of independent board members on the Audit and Risk Committee. In addition, all current members of the committee have, through their training and professional experience, accounting, financial and CSR skills. The committee met 5 times during the year with a participation rate of 94%. In addition, the President of the Board participated in 4 committee meetings. The committee has a very broad mission, covering, in particular, the monitoring of the audits, the accounting methods, significant off balance sheet risks and commitments and the accounting of financial treatment of acquisition and disposal operations of more than EUR 50 million. This mission also extends to the monitoring of effectiveness of risk management and internal control systems, including compliance as well as monitoring the work carried out by the internal audit. In addition to carrying out its mission, the Audit and Risk Committee has as its main interlocutors, the general management, the financial department, the sustainable development department, legal department, the ethics and compliance department and the audit and internal control department, as well as the company's statutory auditors. More specifically, in 2025, the committee heard from: [ Thibault Lovay ], the CFO and Treasury Officer, on the group's financing policy and cash positions; [ Jean-Louis Barzac ], the Chief Tax Officer, on actions necessary to improve the group's effective tax rate; [ Stefan Boulanger ], the Director of Insurance, on the group's insurance program; as well as [ Leonel Montier ], the Director of Internal Audit, Internal Control and Risk Management on the results of the internal control self-assessment campaigns, fraud prevention actions and the assessment of international audits and risk mapping. The committee continued its work to monitor the implementation of sustainability reporting. [ Gannat ], the Group's Head of Risk Management, presented to the committee an update of the double materiality analysis adopted by the group and application of the new European regulation related to this CSRD directive. The committee validated the main sustainability issues that deemed material for the group through that analysis. The committee also ensured that the necessary resources for the good proper conduct of this project were mobilized, particularly in terms of internal control. And the committee was regularly informed by [ Mazars' expert ], the sustainability auditor, of the progress made in its verification work. The latter issued an opinion on the unqualified conformity of the information contained in the sustainability report. And finally, these discussions with the governance appointments and corporate responsibility committee continued. [ Judy Avon ] Head of Corporate Social Responsibility issues, shared with the members of the Audit Committee the results of the works on government by government appointments and social corporate social responsibility committees in terms to CSR. And I did the same by sharing the results of the work on the Audit Committee with -- Audit Committee and the risk with the members of governance nominated and CSR Committee. The committee also examined issues relating to the governance of information systems and cybersecurity risk with Arnaud Chenu, the group's CIO. The committee specifically studied this group's financing policy and the levers for free cash flow generation and debt control as implemented by the group, thus ensuring that liquidity management is adapted to the context of rising and volatile interest rates. The committee also examined the projects and R&D process, particularly with regard to monitoring the profitability of projects under development and the robustness of the business plans used when doing customer quotations. A summary of the specific audits dedicated to these subjects was shared with the members of the committee by the Director of Audit and Internal Control. Finally, the Director of [indiscernible] audit and internal control presented to the members of the committee a summary of the specific audits dedicated to the evaluation of performance and efficiency, the shared service centers. The committee focused, in particular, on the quality of management and supplier payment deadlines. Many other subjects, of course, have been dealt with by the committee and risk committee, more details of which can be found in the Universal Registration Document. Overall, as President of this committee, I can confirm to you, dear shareholders, that the work of the Audit and Risk Committee was in line with the objectives entrusted to it during the financial year, also that your group has high-performance professional teams and that the general principles of ethics and compliance, site protection and risk management met with high standards. In addition, at no time was the Audit Risk Committee required to make reservations on the parent company and the consolidated risk financial statements or on the financial documents as submitted to it. Before I conclude, I would like to thank everyone in the financial department for the quality of their work, also for Edouard de Pirey for the quality and transparency of the work. Thank you for your attention.

Thank you, Veronique. I now suggest that we move on to the presentations. I will give the floor to the CEO of Valeo, Mr. Christophe Perillat.

Thank you, Mr. Chairman. Ladies and gentlemen, dear shareholders, we are now living at a turning point in the automotive industry history because now our industry is undergoing the biggest transformation in its history. It's a deep-seated structural and lasting transformation. And in these moments, as you know, a company cannot be content with just marginal adjustments. It needs to transform itself deeply, and that is what we are doing at Valeo. Thanks to the technological and strategic choices that we made these last few years, Valeo is now one of the technological leaders in this transformation. But this positioning is not the be all and end all, it's just a lever. Today, I'm going to show you how by leveraging the transformation of our business model and by relying on our strategic plan, Elevate 2028. Valeo is going to build on this technological positioning to sustainably strengthen our financial performance and accelerate Valeo creation for shareholders. Very concretely, the automotive industry is facing 3 simultaneous transformations. The first is that of global automotive production, the level of which is stabilizing around the 2017 level after undergoing continuous steady growth for over 30 years. The second one is coming from China. Chinese carmakers have a bigger and bigger position in China, of course, but also in the whole world. And the third one is, of course, the accelerated technological transformation in our sector, which is synonymous with many opportunities for Valeo. First of all, allow me to come back over the stabilization of the total industry volume in the world and what that means for Valeo. As you can see on this chart, after decades of sustained growth, global automotive production has been in a plateau phase since 2017. And this is a fundamental shift. It means a very simple thing. Market growth is no longer an automatic driver for our business. Now our growth only should rely on our own performance. It will stem from our technologies, which will help us increase Valeo's content per vehicle in Valeo. It will also stem from our ability to capture geographical growth dynamics in key regions of the global markets, in particular, China, of course, but also India and North America. And on top of that, we are ready to seize opportunities beyond automotive in sectors where our technologies can apply without extra development costs by investing into Valeo, and we would like to thank you for that. You decided to invest into in automotive equipment manufacturer with a strong technological positioning. But did you know that you also invested into a new light mobility startup, in a defense startup or also in a data center infrastructure startup. These opportunities, which are beyond automotive, are neither included in our Elevate 2028 plan or necessary for its good execution. They are on top. They are additional. And now I'll come to the second upheaval in our sector, China. China is no longer only the largest market in the world, it is the new epicenter of our industry. This is what I've become used to calling the new automotive fitness center. This is where competition is the most intense and where innovation is now the fastest. China now only has 35% of global automotive production, but Chinese carmakers already have 26% of the global market versus only 14% in 2017. Valeo's strategy is extremely clear on that item. Being strong in China to be strong in the rest of the world, and we are stronger in China. Our renewed momentum in China is confirmed. In 2025, 63% of our orders were made by Chinese carmakers. This is a ratio of nearly 3x our sales in China. In the first half of the year, we started several new productions, and now our Chinese teams are rivaling the best innovation and speed standards. This experience in China is making us undoubtedly stronger on the global scale. We are becoming more competitive because when you succeed in China, you can succeed anywhere, thanks to what you learned there. But the competitiveness gap between Europe and China is such that it takes time for Europe to adapt. And this is why, this is only for that reason that we keep advocating for the urgent implementation of a minimum local content threshold in Europe. And finally, the third shift in our sector, the technological transformation. We cannot tackle that by putting that into context with the societal challenges that we need to address: decarbonization and improved safety on the road, especially at night. Our sector is responsible for 18% of global CO2 emissions. It therefore has an essential role to play in decarbonizing the world and fighting global warming. Moreover, we still deplore the death of 1.2 million people every year on our roads. Technology, our technology, can save lives. These challenges are core to our mission and to the unprecedented technological transformation in mobility. Cars are more and more electrified, safer, more autonomous and based on more and more software. So we have prepared, we have prepared for the car of tomorrow. This is, of course, very good news for us because this means that there are many opportunities to be seized. As I'll say very clearly, Valeo is ideally positioned at the heart of this transformation, thanks to our 3 divisions: POWER, BRAIN and LIGHT, all of them leaders in their fields and supported by our Valeo service business in aftersales and services. The accelerated electrification is confirmed. In 2025, the cumulative shares of new battery EVs, plug-in hybrids, range-extended EVs have reached 24% of the global market versus only 13% 4 years ago and this year should reach 43% in 2030. Our Valeo POWER division is ideally positioned to benefit from this acceleration with twofold expertise. This expertise is unique, mixing drivetrains and thermal management systems. We are also leaders in electric engine technologies, but also inverters onboard high-voltage chargers, but also battery cooling and thermal comfort in the cabin. Electrification is synonymous with more and more content per vehicle for Valeo, be it a battery EV, a plug-in hybrid or a range-extended EV. At the same time, driver assist systems are becoming more mainstream, and centralized software architecture vehicles or software-defined vehicles, SDVs, are spreading massively and quickly. Level 2 or 2 plus autonomy vehicle, which offer advanced driver assistance systems like automatic emergency braking or adaptive cruise control, but also more and more dedicated driving situations with driver supervision now account for over half of global sales in 2025. At the same time, and as you can see on the screen, 10% of new vehicles already have already have centralized software architecture. And once again, this trend is very good news for Valeo. Our BRAIN -- Valeo BRAIN division is the global ADAS leader, equipping over 1/4 of vehicles in the world with a full comprehensive portfolio of CPUs, software and sensors. We're also a major actor in SDV, especially with our central compute units, which are the brains of the software architecture. The acceleration of these two trends means once again, more Valeo content per car. You can see on screen, the increase in this content based on the different levels of autonomy [ 2, plus 2 ]. And finally, our Valeo LIGHT division's market is also growing, driven by the quest for more style performance, safety and durability. Valeo LIGHT there too is the global leader in lighting, especially adaptive lighting, which is growing quickly. The rise in illuminated front [ pains ] and logos, the [ putter ] lighting around cars or sensor cleaning are so many opportunities where we are ideally positioned. And finally, a word on our Valeo service business, which is supporting the dynamics of our 3 divisions in the aftersales market. These many new services and its always more fleshed out range of products promote transformation and sustainability for aftersales. We have built up a road map which will enable us to reap most of this technological positioning and to create more Valeo for Valeo and for you, the shareholders. This road map is our strategic plan, which we've called Elevate 2028. This is where this path, this journey will lead us. In 2028, we're aiming for revenues between EUR 22 billion and EUR 24 billion, an operating margin ranging from 6% to 7%, and we are aiming for cash generation over EUR 500 million after interest with a debt ratio of less than 1x EBITDA. Our ambition is to return to investment-grade rating in 2028, and our goals are based on reasonable assumptions. In this journey, we will be driven by 3 engines. First of all, the steady growth in our profitability, which started in 2022 and which will continue. Secondly, the generation of a significantly higher level of cash since 2025, thanks to -- and I'll explain it later, the transformation of our business model. And finally -- and I know that you have strong expectations -- return to sales growth from 2027 onwards. Let's start with the first driver, steady and continuous improvement in our profitability. You can see that on that screen, the engine has been running since 2022, and the improvement will continue. Our operating margin will keep increasing to reach between 6% and 7% in 2028. So that we've got 3 levers: selling our technologies at the right price, and we will be selective in our undertaking; keep increasing our gross margin, I'll come back to that in a second; and keep reducing our breakeven point by reducing our costs even further. And our trajectory is already in line with these goals. As you can see here, regarding the 2026 operating margin guidance, we shall continue to improve our gross margin, thanks to the continuous industrial performance improvements. We've adjusted the number of our plants. We've adjusted our headcount to take into account the lower volumes. And we will strongly automate our sites and we are mainstreaming the use of artificial intelligence to make them more efficient and more competitive. The second engine in our trajectory is our business model transformation to generate more cash structurally. Our free cash flow has been improving constantly since 2021, reaching EUR 371 million after net financial interest in 2025. We will generate even higher levels over the period 2026-2028, we're aiming for over EUR 400 million in 2026 and over EUR 500 million in 2028. How will we achieve that? Thanks to our improved profitability that I talked about earlier; the structural reduction in our capital expenditure, CapEx; and a reduction in our gross research and development expenditures, the peak of which is now behind us. The free cash flow guidance for 2026 is truly in line with our trajectory. Well, rigorous and optimized CapEx and R&D management will bring the biggest contribution to increased cash generation. Now to structurally reduce our investment expenditures? Well, we have 3 actions in place: maximizing the reuse of our equipment and standardizing our products; densifying even more space in our plants; and using an ever more competitive base of suppliers. But what will really change the deal for Valeo is the reduction in our research and development expenditures. In 2024, we reached a peak. In 2025, we have already reduced our R&D expenditure by EUR 200 million, and we will go even further out well by maximizing standard [ views ] by further optimizing our locations, and finally, by deploying artificial intelligence extremely rigorously in our research and development. AI -- and I really want you to understand -- AI will really changed the deal in the area of R&D. Artificial intelligence is accelerating our competitiveness, our productivity and our speed. Already now, 100% of our software engineers are equipped and trained to automatic coding. The outcome is that already over 35% of our certified code lines are now generated by artificial intelligence, 35%. And we have very good partnerships with Zuken and Dassault Systemes, helping us use generative AI design to respectively design our printed circuit boards and our mechatronic systems. We also virtualize our electronic product testing with Amazon Web Services, AWS, to cut our validation times by up to 40%. So we are growing much, much faster. And in an ever more competitive market where speed is more and more of the essence, we have considerably reduced our development times, especially in China. A few examples. In just 7 months, 7 months, mind you, we've developed and started production on the new headlight, cutting our development times by 2/3. And it only took 8 months to develop a turnkey and affordable system for [ 2, 2-plus ] autonomy and only 9 months for a new power electronic module, which is a 5-in-1. And now I'll come to the third engine in our plan, return to sales growth from 2027 onwards. Let's not be deluded. Return to growth is important and expected, as I said earlier, because in the current context, it is quite possible that in 2027, we will be one of the rare equipment manufacturer to deliver growth. And I believe that investments will be extremely sensitive to that, and we'll clearly see that as a milestone and that they will appreciate it correctly. This return to growth will be enabled thanks to the major orders that we have registered since 2022 at a high level, which is 1.5x our OEM sales and EUR 26 million per year on average over the period. This order intake is a clear recognition of our technology and competitiveness by our clients. And as you can see, these orders are very well balanced between our 3 divisions. Some of these orders are very large-scale contracts, over dozens of models and millions of cars. And therefore, they need more time to start up, but they will also have and mostly have a longer lifetime. Our return to growth will also be driven by several starts of production in 2026 with a few examples here on the slide. Especially in China, 4 orders recorded a few months ago in electrification in ADAS and software-defined vehicles. We also received major awards by major customers like Volkswagen, Renault or General Motors or [ Chemotts ], which is a major aftersales distributor. Regarding General Motors, I know that you follow that very carefully. We published a press release this morning. We are very proud of receiving the Supplier of the Year award for the fourth year running, awards that highlight the recognition and satisfaction of our customers. We are once more strengthening our positions in North America and India and China to seize any growth opportunities arising there. In North America, given the market acceleration in terms of technological innovation, we're aiming for faster sales growth than the group average. In India, revenues should triple between 2024 and 2028 to reach EUR 700 million. And in China, we're aiming for a return to growth from the second half of 2026 and a return to market overperformance by next year. We are investing to -- we have started the ground work on our new Texas plant, a $225 million investment. There, we will produce the central compute unit for General Motors. Therefore, a large size of their fleet. This is the brain of the car, of the software-defined vehicle. This is one of the largest ever orders for Valeo, and production will start there at the end of 2027. In India, we announced EUR 200 million in CapEx in the next few years to strengthen our presence on this market, which is growing strongly and quickly. And in China, we recently opened a new site to produce domain controller and ADAS systems for -- to support market growth in these areas. As you have understood, our Elevate 2028 plan will help us fully reap the benefits of our technological positioning to create more value for shareholders to become a true leader in financial performance. And this trajectory, as you'll have seen, is already well underway. Well, of course, we are following this trajectory with always the same commitment in terms of sustainability. Sustainable development is an essential part of our strategy and financial performance for the long term at Valeo and not just a compliance exercise. Our commitment in this area is based on 3 pillars: the environment, the social pillar and the societal pillar. First of all, the environment pillar. First of all, everything we do working towards decarbonization and our technologies or our cat safety plan to reduce our activities, carbon footprint. There's also what we are doing to develop the circular economy. The social pillar is the work that we are doing for health and safety at work for our employees, our policy for diversity, quality and inclusion at the skills development. And the societal pillar is all the work that we are doing for more sustainability throughout the value chain with support, in particular, for our suppliers and our commitment towards the local communities where we have plants and locations. We are now fully in line with our ambition to contribute to net zero by 2050. By 2030, we will have reduced our emissions related to our operations by 75%, 75% compared to 2019, and 50% less regarding supply chain and final use of our products related emissions. As you can see on the slide now on screen, these are a few of our major achievements in 2025 and '26. Many, many examples, I'll name only two. In '25, 64% of the energy that we use comes from low-carbon energy sources, and we're aiming for 80% by 2030. And last year, our technologies helped avoid the emission of 6.1 million tonnes of CO2. To give you an idea, these are 8 million passengers on Paris to New York flights. Our commitment to sustainable development is a true commitment. And because of that, these last few months, we were involved in a few major climate events in the world like COP30 or the climate weeks in New York, London or Zurich. As you have understood, our engagement is now recognized by nonfinancial rating agencies, and we are particularly exemplary. This is very important for us. We are very proud to announce that we received a AAA rating by MSCI. This is the highest rating possible awarded by the global benchmark. And of course, I could not -- and I will not end this talk with a word for our team. The context is difficult, and our team is very committed. Without their commitment, nothing of what I've shown you would have been possible. And our team is driven by a company culture which is deep, which is strong and which is a strength for our group. This culture is key to our success. It is summed up in 3 words. We are agile, we act with courage, and we stand in solidarity, particularly valuable behaviors when we need to keep moving forward in an environment as complex as today. Ladies and gentlemen, dear shareholders, based on its strong technological positioning and the transformation of its business model, your company is ready to transform the challenges of the automotive sector into opportunities and into value creation. Thank you for your trust, and thank you for your support.

Thank you very much, Christophe. Mr. Edouard de Pirey, the Chief Financial Officer, will present the accounts for the fiscal year 2026, the first quarter of 2026 and the outlook for 2026. Well, it's moving to the [ lectern ]. Remind you that the detailed elements of the 2025 accounts and the management's report of the Board of Directors and the statutory auditor's reports are in the Valeo URD available in full on the website. So if you allow us, the Board of Directors and the statutory auditors will not read their reports in full. Over to you, Edouard.

Thank you. Ladies and gentlemen, dear shareholders, good afternoon. As announced previously, it's now my task to present the financial results for Valeo for the fiscal year 2025, the revenues for the first quarter 2026 and the goals for the full year 2026. So in 2025 in an environment marked against by headwinds, Valeo showed it could act with agility and discipline, which enabled us to deliver on all our commitments and to lay the solid groundwork for the execution of our plan, Elevate 2028. Our revenue stood at EUR 20.9 billion, slightly below -- slightly above the goal of EUR 20.5 billion. Our adjusted EBITDA margin was at 14.7%, above the top of the indicative range. And our operating margin grew by 40 basis points to 4.7%. This is the fourth consecutive year of operating margin improvement. As Christophe said, the driver for profitability improvements is -- has started. It started in 2028, and will keep running throughout the duration of the Elevate 2028 plan. This performance is directly reflected into our cash generation, which grew by 50% in 2025 to EUR 371 million, beyond the initial goal. I'd draw your attention to the quality of this cash generation, the improvement coming from better profitability on the one hand and better control of capital expenditures on the other hand. The third engine in our Elevate plan, growth, is well underway to being activated. Our solid order book stands at EUR 24.6 billion in 2025. In cumulative terms, over the period, '22-'25, order intake is 1.5x our original OEM revenues. This level secures our future growth, and more specifically, the return to growth, as Christophe explained, from the year 2027 onwards. Our dynamics in China is also noteworthy. We won contracts, with local carmakers accounting now for 63% of our orders in the region. This proves that our technologies are competitive on a fast-growing market in China, as you know. Now let's look at the details of the financial results for FY 2025. Revenues, as I said, stood at EUR 20.9 million, up 0.5% like-for-like. And at constant ForEx, that's EUR 400 million more than our goal. The OEM revenues reached EUR 17.3 billion, down by 0.6% like-for-like and at constant ForEx, reflecting the headwinds that I talked about in my introduction. The replacement market was resilient with 0.9% growth like-for-like and at constant ForEx. Various sales grew by 15%, once again, like-for-like and at constant ForEx. These various sales include R&D and tooling sales, and this is proof of the very good momentum in our order book. These various sales also include fair remuneration for contract cancellations, which led to impairment losses that were booked for around EUR 300 million in our P&L. Now let's move on to performance by geography. On the global scale, we had a performance gap of 5 points compared to automotive output, mostly due to a negative geographic mix for 3 points. In Europe, your company overperformed the market by 2 percentage points. All divisions contributed to this result. In China, the 2025 year was a year of rebalancing. Although we underperformed the market, the underlying momentum is growing upwards, both in terms of sales and order intake. We generated over half our revenues and 2/3 of our order intake in China with Chinese carmakers that an order intake over OEM revenues ratio of 2.8x. In Asia, Outside China, the performance gap was favorable by 2 percentage points. India, that was identified as a key region in our Capital Market Day, is still growing strongly. The region is perfectly in line with the trajectory in the Elevate 2028 plan with sales of about EUR 200 million, up 43% over 1 year. Regarding profitability, the POWER divisions stood out strongly, thanks to the successful structural transformation that it underwent with an improvement in 1.3 percentage points in operating margin, thanks to the various restructuring measures. The BRAIN and LIGHT divisions maintained higher profitability levels than the rest of the group. BRAIN's margin is at 5.4% of revenues, whereas LIGHT IS 5%. Ladies and gentlemen, dear shareholders, the efforts undertaken by your company have a structural impact on its profitability. We kept improving our profitability in 2025 with an operating margin, as I said earlier, that was up by 40 basis points to 4.7% of revenues. This improvement is based on the use of [ receivers ]. First of all, the gross margin, which grew by 1.2 percentage points to 20.2% of revenues, that's the highest level of gross margin for the group since 2017. This level is consistent with our ambition to stay sustainably above 19% of revenues. These results reflects two factors: on the one hand, maintained price discipline; and on the other hand, industrial excellence, thanks to smooth production launches, operational efficiency, plant automation and the benefits of a streamlined industrial footprint. Breakeven point reduction efforts contributed to the tune of 10 basis points to improving our operating margin. Administrative costs were reduced by 5% in 2025, bringing the cumulative reduction over the last 2 years to 10%. Efficiency gains in terms of research and development, with gross R&D expenditures down by EUR 200 million in 2024. These gains in the P&L were partially offset by impairment losses on a mobilized R&D because of the cancellation of the contracts that I talked about earlier. Now let's move on to free cash flow. According to our new definition, which is after net financial expenses, we generated free cash flow of EUR 371 million, which is an increase of 50% over 1 year. Our business model is now more cash generative. Not only have we improved cash generation in absolute terms, but the quality of cash generation has also improved. This is explained by 3 main levers. First, the improvement of profitability. First, 2025 was the fourth consecutive year in operating margin improvement since 2021. This is a key factor for cash generation. The reduction in our capital intensity with industrial investments that were down by 30%, 30% less CapEx in 2025 compared to 2024 at 3.8% of revenues. We are purchasing better. We are reusing better, and we are optimizing our industrial footprint. This is a lasting trend. Improved R&D efficiency with an 11% contraction in capitalized R&D at EUR 930 million. And now a comment on our financial structure. In 2025, our net debt stood at EUR 4 billion, up compared to 2024, but down compared to the first half of 2025. This came from a negative ForEx impact because of a more expensive euro compared to the dollar and Asian currencies, which had an impact on our cash. An action plan was initiated to reduce the ForEx risk by gradually repatriating cash denominated in other currencies than the euro. Gearing is stable at 1.3x. Your company now has a healthy financial structure based on a balanced debt profile and a solid cash position, with EUR 2.5 billion in available cash and EUR 1.6 billion in additional credit lines at the end of 2025. Based on all these results, this year, we are suggesting to raise the dividend to EUR 0.44 per share, or an increase of nearly 5% compared to the previous year. This proposal is the sixth year running of gradual increases in the dividend. This is evidence of our confidence in how lasting our cash generation will be and our desire to associate you closely to the success of this company. Let's now move on to 2026 with business figures for the first quarter and our outlook for the full year. As you probably know, we are moving in a particularly uncertain environment. We are tackling current challenges with adaptation and agility in mind by leveraging the experience of past crises and by applying the same proven methods with consistency and discipline. When it comes to the current situation in the Middle East, of course, our thoughts are with the populations affected, and we hope for a quick return to peace. Now regarding your company, direct consequences are highly limited. We do not have any industrial operations and hardly any sales activity in the region. We only have 1 single supplier for aluminum tubes, which is still fully operational there. Logistical flows between Asia and Europe have been routed through the Cape of Good Hope for many years now. And so we are not very energy intensive. Direct energy costs account for 1.5% of revenues, and we are using long-term contracts. And finally, we have no significant impact to date. We haven't observed any significant impact on customer demand so far. So of course, we are still very vigilant. Regarding the supply chain, we are managing memory chip tensions proactively. We've secured over 90% of our memory chip volumes for 2026, and we are confident that we'll be able to address our customer needs for the full year. What's more, we are having constructive discussions to pass on these costs with our customers, and we are managing the technological transition in these RAM chips with a dedicated working group. In this context, we are still focused on profitability and cash generation. On one hand, we are on track to already reach the cruising speed of EUR 300 million in annual savings, thanks to the restructuring measures initiated in 2024. And on the other hand, we are keeping strict discipline in terms of tangible and intangible investments. In the first quarter of 2026, our revenues stood at EUR 5.1 billion. The OEM revenues were at EUR 4.2 billion with a slight decline of 0.6% like-for-like and at constant ForEx. Against the backdrop of declining global automotive output by 3.4%, your company is overperforming the market by 3 percentage points. Now regarding performance by geography, in the first quarter, Valeo underperformed by 2 percentage points in Europe, reflecting a decline in the POWER division, which was partially offset by the good results of LIGHT and the screens and telematics business of BRAIN. In North America, the remarkable overall performance of 9 percentage points was mostly driven by the POWER and BRAIN divisions. In China, our company overperformed the market by 1 percentage point, thanks to the good performance of the LIGHT division. In the first quarter, all 3 divisions overperformed their markets. POWER posted a 2 percentage point overperformance and used a good start-up in North America. The division is pulling up its technological transformation. The solid performance in electrification technologies is now offsetting the structural slowdown in internal combustion engines. BRAIN, in turn, overperformed the global automotive output by 3 percentage points and confirmed its role as a technological driver. Its growth was driven by the success of display and telematics systems that were the outcome of the contracts that we won last year. The division also accelerated its industrial presence in India and North America to support the ramp-up of software-defined vehicles. LIGHT overperformed the market by 5 percentage points and recorded its most robust performance for a quarter, thanks to shorter development cycles. It is the first division to reap the benefits of our China strategy, where it overperformed. Ladies and gentlemen, dear shareholders, a few words on the outlook to conclude. We are looking at the rest of the year 2026, with determination. Our targets are clear: revenues between EUR 20 billion and EUR 21 billion; operating margin growing between 4.7% and 5.3% of revenues; and free cash flow generation growing again with a goal above EUR 400 million. We are perfectly in line with the first step in our Elevate 2028 plan, and we are focused on value creation for you, our shareholders. Thank you.

Thank you, Edouard. I would now like to ask Mr. Alexandre Resten from Ernst & Young and others to present the most important passages of the reports on behalf of the board of auditors.

Thank you. Ladies and gentlemen, dear shareholders, on behalf of the Board of Statutory advisers of Valeo, I will present a summary of the various reports for your consideration in connection with the ordinary and extraordinary general meetings. As these reports were made available to -- by the company prior to this meeting, I propose to limit my comments to the key points. With regard to the ordinary part of this meeting, our report covers the audit of group's consolidated financial statements, the audit by the annual accounts for Valeo SE and regulated agreements. Firstly, in respect to the second resolution, we have issued an unqualified audit opinion on the Valeo Group's 2025 consolidated financial statement. The work carried out took into account the characteristics of your group in terms of organization, accounting balances and internal control as well as the risk that are specific to its business. Our work was regularly presented to the Audit and Risk Committee and the Board of Directors. It was carried out by the team of statutory auditors both in France and abroad. The key points of the audit of the consolidated financial statements discussed in our report relate to impairment tests on goodwill, cash generating units, capitalized development costs and specific assets and assets and liabilities relating to specific quality risk. For each of these areas, we reviewed the accounting policies applied, and we ascertained the reasonableness of the estimates made by the company. Compliant with the first resolution, we have also issued an unqualified opinion on the annual financial statement by Valeo SE. We have also issued a special report on regulated agreements. It states that during the financial year, we were not notified of any authorized and concluded agreements to be submitted to your reading, nor any previously approved agreement for whose performance would have continued into 2025. Finally, in relation to the extraordinary part of your Annual General Meeting in the 16th resolution, we've issued our report on the authorization to be granted to the Board of Directors to [ carry out 3 ] allocations of existing and future shares. We have no comments to make regarding this transaction, which complies with the conditions set out in the commercial code. Ladies and gentlemen, dear shareholders, thank you for your attention.

Thank you, Mr. Auditor. I'd like now to ask Madam Emmanuelle Bertuzzi from Forvis Mazars, acting as sustainability auditor, to present the most important passages of their report on sustainability.

Thank you. Ladies and gentlemen, as sustainability auditor, Forvis Mazars has issued a sustainability information assurance report, which appears on Pages 358 to 361 of the Universal Registration Document, and I shall now summarize that for you. Our mission is to provide limited assurance on the group's sustainability status, and this covers 3 areas. First, the compliance of the double material -- the materiality analysis process implemented by your company to determine the information to be disclosed and the compliance with the obligation to consult the social committee. Second, area concerns compliance with the published information with regard to sustainability standards. And finally, the compliance with the information [ disclosure ] requirements set out in the taxonomy regulation. For each of these areas, we detail in our report the nature of the checks that we carried out, the conclusions that we have drawn from them, and in support of those conclusions, the matters to which we have paid particular attention and the associated procedures we carried out. In summary, based on the procedures that we carried out, we did not identify any material errors, emissions or inconsistencies that would have affected [ the company ]. As reminded by the chair and by the risk committee, the compliance and sustainability process and information and compliance with taxonomy regulation have been certified without reservation. Thank you for your attention.

Thank you, madam statutory auditor. Ladies and gentlemen, I'd like to thank you for your attention and now declare the opening of the debates. We have not received any written questions, and so we are now open to debate. And in order to make the debates more fluid and allow as many of you as possible to express yourselves, I suggest that each speaker limit themselves to a maximum of 2 questions. You have the floor now. I'd like to please ask you to raise your hand, and we have people who will be able to pass around a microphone. Number 3, I believe?

Good afteroon. I am an individual shareholder. I had a question on AI. Can you tell us more about the different types of AI for the use for generative, including generative AI, data analysis and physical AI and give us some examples of its use, including agent AI?

Well, this could take several hours, so I'm going to ask Mr. Perillat to just answer that question in a few seconds.

Maybe to start with, just to answer your question. AI is not something that we just discovered last year. Of course, we have AI integrated in our projects, and that has been true for the past 20 years. The first time we integrated AI in our projects, it was in a rearview camera, and that camera could see the environment. That was 20 years ago. And in 2017, we created in France, a research center on artificial intelligence especially dedicated to the automobile sector. It's called Valeo AI, and we have approximately 100 researchers working there. So we have always understood that AI would be absolutely essential to our products, to the Valeo products of the future. Today, we use -- we still use AI in our product, but we also use AI in our company processes, and there are 2 types of processes that I'd like to mention. First of all, this [ HDNA ], administration processes. Very often, the examples that companies give, for example, are regarding the automation of processes, looking for data, for example, by different agents in different URPs and different systems within the companies purchasing, for example, industrial systems and making sure that those systems are accelerated and simplifies within the company. We do that. We have developed about 100 different agents that do this type of work within the [ HDNA ] field. But we also have our specific elements. And that is our desire to apply and deploy in research and AI, in research and development. We believe that there's a lot of technical potential, but we also believe that this can change our economic model. As you know, Valeo is a company with over 20% gross margin, but our research and development costs are also major -- or important. And our costs are above 10% of our sales revenue. So if we could limit that first and then reduce additional associated costs, we would mechanically increase our cash flow. And this would increase the cost of our shares. So using AI is truly a priority for the group. We decided to do this to use AI in all of the R&D activities. Let me give you a few examples. So for example, software, that's our first -- our #1 activity. 35% of our coding is generated automatically by AI. We have several agents working on this. There's one that writes the code, one that validates the code, one that tests the code. And all of these different agents communicate together in order to write, certify and validate this code. Second example, the design of electronic cards. We work with a Japanese company. We have a partnership to design in a generative manner, our electronic [ cards ] based on design codes that are defined by Valeo and that has been accumulated for several years. Third example, the mechanical design, more of an old-fashioned terms. And here, we have some very powerful partnerships, how can we better master injection molding and the mechanical aspects of designing a part almost automatically. And there again, there are agents that work together that generates the automatic design of a certain number of mechanical parts. And finally, we're accelerating development and the validation process by making it more automatic, thanks to AI. Let me give you an example of that. An example in driving assistance. When driving assistance software is put on the market, it's tested in an impressive number of different driving situations. And those driving situations were -- have been filmed with cameras, and they are played over and over again to make sure that this software corresponds to all of the different cases that we've filled. And that can be multiplied by a million cases that have been filled by adding to those themes, additional pedestrians or additional red lights or balls coming across the road, children playing, no nighttime situations, rain, all of this can change. And so we've moved from a physical world to a 100% virtual world which multiplies the number of situations that we can test. And so of course, if we did this by hand, it would take a tremendous amount of time. And we work with Amazon. We have a partnership with Amazon which not only reduces the time, but also, it increases the number of tests that we can do and the speed at which we can do that test. So it's very -- this is a very complex subject. We are examining all aspects of R&D, and we are convinced that AI will be competitive element in Valeo's automotive sector, which, as you know, is very competitive. And we are absolutely certain that AI will be one of Valeo's competitive advantages.

Thank you, Christophe. As I said, this revolution is extremely deeply rooted. And I think that you can understand how fascinating the subject is. So thank you very much for that answer. There was a question up here at the front of the room?

Thank you for all of these presentations. All of them have been very interesting. And also for the little snacks that we had before we came in. I have a question regarding how we can remain competitive in China and at the same time, maintain our know-how in China. Development in China in the past 1 year has been very interesting, and it's been done thanks to everyone's knowledge, and China has adopted our knowledge. And so how can we remain competitive when we're going to have 300,000 products a year, and the Chinese are going to copy everything? And I have a suggestion, actually, to make. I've retired 10 years ago, and I bought Valeo shares for EUR 60. And I would like to suggest that given the change since then, that compensation be variable for everyone. This would bring a long-term perspective and not just a 6-month perspective, and it would lead to less turnover in shares.

Regarding China, I'm going to allow Mr. Pirey to answer.

This is a very deep-rooted question. First, I'd like to share the fact that the Board of Directors of your company went 2 years ago -- excuse me, 2 months ago and held a meeting in China. We visited a certain number of industrial operations, a research center as well for our operation as well as a customer situation. I just wanted to say that in China, it's not just a country of copiers. We met with -- I met with some of our colleagues. We were struck with the fact that we were there, we spent 4 days in a country which is an industrial and technical technological and human power. That's what we observed. And so the question that you've asked is a very valid one. How can we remain a competitive player and a relevant player on market and in that region of the world, which is now the epicenter of the world. Thank you for this question. This is a central question because China is a central player. So how can remain competitive in China? There's just one answer to that. We are Chinese. In China, we are Chinese. We have 22 factories, 17,000 employees, 4,000 people working in R&D, and we are a local company in China. We design, we produce, we purchase in China for China. And of the 17,000 employees, we have fewer than 5 expats. There were 200 10 years ago. So we have become a Chinese company, and we are confronted every day with the Chinese competitiveness, Chinese innovation. And we are in this center, the fitness center that I described earlier. And because we are working there and we are working in the fitness center, we keep -- we're running, we're running along with the Chinese, and we participate in that competitiveness. Now how do we remain competitive in China? We keep running just like everyone else with the same players, the same suppliers, the same teams, the same R&D, which are all Chinese. So why would be less competitive than the Chinese? There would be only one reason for that, and that the corporate layer could hold back the Chinese teams. But we've made a lot of efforts to reform our process and to create decision-making capacity for our Chinese colleagues so they can keep running on that treadmill as fast as their Chinese -- other colleagues. And the innovation rate in an -- innovation in a company costs money. So we amortize our debt, cost of innovation in Chinese innovation on a worldwide scale. So we have a source that could enable us to be even more competitive. So this is just a lot of words. But in reality, the question is whether reality confirms what I've just explained. And it does because the number of orders, which are, in fact, the only way that we can validate our competitive position in our technology. And the number of orders in China in 2025 are equivalent to 3x our sales. So we are -- we keep running on that treadmill, and we are winning. And it's very important that we win because as I said earlier, when we win in China, we learn. We learn how to optimize our products and we learn how to optimize the design and the cost of our products thanks to the Chinese ecosystem, which we are then able to export. We are able to export that capacity to optimize and reduce costs outside of China and to make Valeo more competitive throughout the world. That's what I explained in my presentation. By being stronger in China, we are stronger throughout the world. So yes, we are convinced that the battle is taking place in China, and we have to win in China and that all of the Western companies that leave China will be -- will lose the battle and that they are making mistakes. We have to stay in China. And we believe that it's essential that we win in China in order to succeed in the rest of the world, and that's what the 2025 figures show us, that they show that we are competitive because we are increasing our business in China. We increased a lot in 2025 and in the beginning of 2026 on the same trajectory. Regarding your question on the share price and remuneration, the share price is -- EUR 12 is better than a few years ago, but compared to EUR 60 years ago, well, of course, that's a matter of high attention by the Board and the management. And it's, of course, for great frustration because we think that this does not reflect the potential intrinsic value of our company. So there are any number of reasons due to that, the external perception, the changes in perception by investors of the automotive sector, more of the European automotive sector, more specifically and equipment manufacturers within the European automotive sector even more specifically. But there are also, first and foremost, reasons related to the company itself and the fact that it was not convincing enough in previous years about its ability to deliver in enough results to match the EUR 60 valuation, but we are strongly convinced that the upgrade potential for the shares' valuation is considerable. And this is our belief with the Board and the management. At some point, we believe that investors and the markets will take into account the deep seated transformation at work in your company for the last few years. That was shown, that was told them. It's not just an improvement. It's a transformation that started 4 years ago for Valeo, which reflected in a reflection -- in a transformation of our business model. And as you saw, what is underway? And what is presented as a pathway for the next 3 years is a strong improvement in the profitability levels that started already in 2022. This is now a cash-generating ability, a free cash flow generating ability for us, which is critical. And that happened in 2025, and it was announced as being now a continuous and steady outlook from 2025 onwards. And finally, we think that we are able to grow our sales again. We said that this return was credible and now underway, and that will be visible already in China in the second half of this year. This is the deep seated change at work in your company, which we think should lead us at some point to an upgrade in the shares' valuation or at least in line with the underlying inherent value of the company. Regarding remuneration, just one word to tell you that on the one hand, all top managers and high executives in the company received what we call long-term incentives performance shares, which are paid in shares. And so the amount is quite significant in the remuneration of corporate officers and also for the whole management team of the company, and it's also significant for top employees. And this is a very strong incentive for them to improve the share price valuation. And so there is full alignment between -- well, that's the question you were asking -- between their personal interest in terms of remuneration for all the sub executives and the improvement in the group's valuation. Let me add also that in the long-term incentive plans' mechanics, there is a performance condition which connects the final awards with the relative performance of the Valeo stock and the overall market and other equipment manufacturers, which means that maybe not all shares are granted and the quantum of shares may be significantly cut if Valeo underperforms the other equipment manufacturers. And that happened already in recent years. This is a central element. And of course, I'm not taking that very lightly in front of the General Meeting of Shareholders. We are betting on the company's ability to restore and to move to a universe which is more in line with what this company deserves. And all our corporate officers, top managers and top employees have a non-negligible share of the remuneration which is tied to the fortunes of the company.

Yes, and we must have been a shareholder since the times of Mr. [ Guda ], so a long-standing shareholder. The reason I wanted to ask your question is that, well, the real issue is capitalization, EUR 2.5 billion in market cap. It reached EUR 3 billion this week, but that's undignified for a company like yours. The [ Society Banner ] in Monte Carlo has a bigger market cap than your company. And this is just a casino change. So something is not right here. And when I read your press releases every week, every week, there's more good news. Is -- doesn't the market get anything about what you're doing or what? I'm also an Essilor shareholder. But when you look at your BRAIN and LIGHT divisions, in fact, you're putting what EssilorLuxottica are doing on both cars. And so if you say that what you're putting in cars is similar to what EssilorLuxottica are doing, it's 20x profit rather than 4x profit. [ What ] are you fully subscribed to your analysis, to be quite honest? So the Chairman, and please share it with others to convince investors and other shareholders because this is really how an upgrade will happen. And I'm not -- I'm saying that extremely sincerely and seriously. I think that's the market perception of the company by investors as such that they are not yet convinced about our potential, the one that we believe in and which is evidenced by its technological content, its success. Maybe not avalanche, but a series of good news that we have had recently. And I think that at some point, well, such things are slow to happen, but at some point, market perception will change when they realize that this is an actual and lasting shift that has happened.

Maybe my colleagues would like to add something, maybe one thing to add because we meet with many investors, as you can imagine. What do they tell us? We think that there are 3 things that could be triggers for such a significant revaluation of the stock. And I think that the market is not expecting all 3 at the same time, but at least 1 of these 3 conditions. First of all, a return to sales growth. The second one is more cash, more cash generation. And the third one, well, because the automotive sector is now highly penalized in multiple valuation multiples, so we need to grow our nonautomotive businesses. And for all 3 areas, we've got plans, and we've got commitments in terms of growth. We've got commitments regarding free cash flow generation, which should increase, and we proved that as early as 2025, and we have many activities on beyond auto. So these 3 elements are well understood and analyzed. They've been modeled and they are covered by commitments that we've taken vis-a-vis the market, and I'm convinced that when one of these elements will materialize in a very tangible way for investors, the upgrade potential for the stock's valuation is considerable. Any more questions?

Sir, [ Joseph Mariani ], I'm an individual French shareholder. Since were amongst people a good company, we can be iconoclast of sorts. That's not critical. Well, you should be, Mr. Chairman. Well, it's true that there have been ups and downs for Valeo, but we need to look at the long term because quite frankly, it's better to be a Valeo shareholder than an [ Atos ] shareholder. The [ Atos ] stock lost 95% of its value. And this is not just the share price except for -- for short-term speculators, but what we need is a dividend that increases over the long term, like Air Liquide. And regarding executive compensation, you should stop opposing managers and shareholders. So I hope that there will be more individual French shareholders and foreign pension funds that will put management under negative pressure. But we need personal commitments if then, the team is not incentivized. The headcount, the employees will provide success. And so also, you talked about China, we know that the Chinese are confusions -- [ Confiuciunists ], but they have gone beyond Confucius now and follow U.S. methods. A question about AI. It's not a trick question, but you talked about opportunities, Mr. Perillat, Mr. Michel, but you didn't talk about risks. So we all know that with a lot of data to process in more or less -- more and more limited time, AI is a lever. However, we need to be aware of the risks, and the risks are several. In an engineering company, the risks are cognitive. If you don't control AI and if you are not critical vis-a-vis AI -- I'm not saying that you shouldn't do it, but you might have a cognitive risk, and you need to handle it. And there are other risks. And there's a dependency risk, especially if we don't have a sovereign AI. I don't know whether you've got sovereignty guarantees regarding AI. And then there are more traditional risks related to the potential data leaks and leaks of confidential information. And that's it for me.

Well, thank you very much for your comments and for your question. Of course, there are risks. It is our duty to handle those risks correctly. Regarding the cognitive aspect that you discussed, when we implement agents that generatively creates mechanical parts or software in the key steps for these processes, we have humans in the loop. There's always an engineer looking at the console to approve the suggestion or suggestions or select out of the panel of generative suggestions, the best suited. We are going step by step. I'm not saying we'll still do that in 10 years' time, but at the step that we're at in the deployment of AI, we still have, especially in product development processes, we have human engineer in the loop, steps to validate, prove and confirm what the AI is suggesting. You talked about data leak risks. Well, I think that one of the considerable advantages for Valeo is that we are very unified. We have the same information systems. We have the same ERP, we have the same software in the whole company so that an AI can work on all of the group's data without any difficulties. And we're in a closed environment. Well, in the last 20 or 30 years, we put it down in writing. It was -- we did not forecast AI, but all our design rules are put down in writing. All the quality issues that we can have in plants were all covered by documents, by feedback and post mortem documents. We learn from everything we do. What does that mean for the next development cycle? Well, it's all in somewhere in pricing. We have a unified and considerable database. Valeo's AI for design of printed circuit boards or mechatronic systems or validation processes, this AI is closed. I'm not saying that it's not in the cloud. It is in the cloud, but it's in a closed environment, which is Valeo's. This means that our knowledge, our experience, a 100-year-old experience as an equipment manufacturer is experience that will not benefit anyone else. All our models are running on our models, and they are not feeding models for competing companies. So this is a very important element. And you're absolutely right in identifying, and so this is something that we have also identified and that we handled in a very strong and firm manner.

Edouard, amongst the risk factors for the company, you saw that we clearly identified the cybersecurity risk, which is real. You're never totally safe from such a risk, but I think that now, and it's been recognized by industry experts, the fact that we've got good security. And I'm just looking at the insurance premiums that we pay for cybersecurity. I could see them going down year after year, and insurers are telling us, yes, you've got a good level of risk, a good level of protection -- I'm sorry, since the speaker compared to your risk. But then, of course, the risks still exists.

Thank you. Are there any final questions before we move on to the resolutions?

Yes. Good afternoon, ladies and gentlemen. I'm an individual shareholder out of [ Belief ]. I have got a question. The Elevate plan is now talking about growth opportunities beyond automotive, especially in defense, you talked about it very succinctly, whereas military budgets in Europe are increasing strongly and require high technology for drones, night division or heat management. Could you clarify Valeo's road map when it comes to weapons and defense? Are you going to have direct partnerships with major players in the sector? And what share of revenues will be generated?

Thank you for your question. Well, we are, of course, deeply convinced about how important the defense industry is and what potential -- the positive potential it has for our revenues. We tried to find an alignment between defense industry requirements and Valeo's know-how to see where we could have any added value. So we have high potential, and then what is our know-how. We know how to produce, design, source products, potentially complex ones, with the caveat that they are produced in a few thousands. Valeo's not configured to produce 1 part a month or 1 a week. We are not able to do that. We don't have prototyping workshops. We have plants that can turn out 1,000 parts a day that are very good at that. So when you connect the defense industry's needs with Valeo's know-how, of course, you can find drones. So we looked at and we're still looking at producing drones. We were first involved in the drone compact of the J4 to understand the products and today's and tomorrow's technologies and who the players are and what the needs are. And I think we've understood a number of things. We can do two things. First, we can work on essential drone components, and then we can assemble drones. We won't be drone designers, but we can assemble them for drone manufacturers with the best standards of the automotive industry in terms of quality and speed. And then what can we do? Well, we can produce motors. Most drone motors are Chinese. We need a sovereign European motor, and we produce electric motors. You know that we do that for the automotive industry. So we can build a drone motor. And we started working on these aspects. I don't have any specific announcements to make today, but you should be aware that we've got a strategy for drone components and potentially drone assembly to benefit the European drone industry so that this drone industry can become sovereign. Are there elements of this plan in Elevate 2028? No. We prefer to have a 3-year plan for 2026, 2027, 2028 without any revenues or opportunities related to beyond auto, as we call it, beyond automotive. But we are determined and resolute to grow in adjacent ancillary industries to the automotive industry, especially for defense and drones to be involved in assembly, but also the manufacturing of essential drone components.

Thank you.

I suggest that we take one last question. That's a comment. All right. All right. Comments off mic? Do you have a question? And that will be the last. Interpretation needs a microphone for the questions. The question continues off mic. . Thank you for that suggestion. I've taken note of it. We have -- we're studying the cost of -- the rising price of shares, and this will continue to follow the dividend structure as well. So I suggest that we close the debate and put to the vote, the resolutions that were submitted to your assembly. Unless requested by a shareholder, the full text to be each resolution will not be read, it being specified that the subject of each resolution will be circulated at the time of the vote. Before the resolution is put to a vote, we're going to watch a little video on how the voting tablet works so we can just... [Presentation]

One last very important point. I would like to inform you that the number of shares finally entered -- entering the name of shareholders present represented or having voted by mail represents approximately 68% of the shares with voting rights.

Thank you, Mr. Chair. We're going to start with the ordinary. So first, [indiscernible] assembly. So first, to resemble on [ approvation ] of the accounts -- annual accounts for 2025. The vote is open. [Voting]

The vote is closed. Resolution has been approved. Second resolution, approval of the consolidated financial statements for the year ending December 31, 2025. The vote is open. [Voting]

The resolution has been approved. Third resolution, appropriation of the profit for the year ending December 31, 2025, and setting of dividend at EUR 0.44 per share. The vote is open. [Voting]

The vote is closed. The resolution has been approved. Fourth resolution, regulated agreements and the related statutory auditor's report. The vote is open. [Voting]

The resolution has been approved. Fifth resolution, appointment of Fabienne Lecorvaisier as a Board member for a period of 4 years. The vote is open. [Voting]

The vote is closed. The resolution has been approved. Sixth resolution, the renewal of the term of office of Gilles Michel as Board member for a period of 4 years. So the vote is open. [Voting]

The vote is closed. The resolution has been approved. Seventh resolution, renewal of the term of office of Bruno Bezard as a Board member for a period of 4 years. The vote is open. [Voting]

The resolution has been approved. Eighth resolution, renewal of the office of Bpifrance Participations represented by Alexandre Ossola, as a Board member for a period of 4 years. The vote is open. [Voting]

The vote is closed. The vote has been approved. Ninth resolution, approval of information relating to the remuneration of corporate officers for 2025. The vote is open. [Voting]

The resolution has been approved. Tenth resolution, approval of the compensation for Gilles Michel as Chairman of the Board of Directors for 2025. The vote is open. [Voting]

The vote is closed. The resolution has been approved. Eleventh resolution, approval of the compensation for Christophe Perillat, Chief Executive Officer, in 2025. The vote is open. [Voting]

The resolution has been approved. Twelfth resolution, approval of the remuneration policy applicable for Board members for 2026. The vote is open. [Voting]

The resolution is approved. Thirteenth resolution, approval of the remuneration policy applicable to the Chairman of the Board of Directors for 2026. The vote is open. [Voting]

The vote is closed. The resolution has been approved. Fourteenth resolution, approval of the remuneration policy applicable for the Chief Executive Officer for 2026. The vote is open. [Voting]

The vote is closed. The resolution has been approved. Fifteenth resolution, renewal of the authorization of the Board of Directors regarding the share buyback for a period of 18 months. The vote is open. [Voting]

The resolution has been approved. Now let's move on to the only resolution under the purview of the Extraordinary General Meeting, the 16th resolution, renewal of the authorization to be given to the Board of Directors to proceed with free allocations of existing shares or shares to be issued to members of the group's employees and corporate officers for a period of 26 months. The vote is open. [Voting]

The vote is closed. The resolution has been approved. Now a final resolution, for which the responsibility of the General Assembly is [ delivered ] as an ordinary general assembly, 16th resolution powers to carry out the formalities required by the law, [ following ] to the holding of the general meeting. The vote is open. [Voting]

The vote is closed. The resolution has been approved. Thank you for your attention. Mr. Chair, I give the floor back to you.

Ladies and gentlemen, the agenda is thus exhausted, and I declare that this meeting is adjourned, and I thank you for your attendance. [Statements in English on this transcript were spoken by an interpreter present on the live call.]