ENGIE — Call Transcript 2025

Thank you for holding and welcome to ENGIE's first half 2025 financial results presentation. For your information, this call is being recorded. It will take place in a listen only mode and you will have the opportunity to ask questions after the presentation. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. I will now hand you over to Delphine Deshayes, Head of Investor Relations. Thank you and good morning everyone. It's my pleasure to welcome you to ENGIE's H1 conference call. Shortly Catherine and Pierre-François will present our half year results, following which we will open the lines to Q&A with my polite request of limiting your questions to one or two only please, and with that over to Catherine. Thank you very much Delphine and good morning everyone and welcome to the presentation for our first half 2025 results. I can report a robust set of numbers within an economic, political, and geopolitical context of some turbulence. Once again we are able to demonstrate the relevance and resilience of our integrated mix of flexible and renewable generation, our extensive downstream customer portfolio, our unrivaled expertise in energy management, and our defensive and highly cash generative network business. We remain laser focused on driving forward the energy transition by carefully targeted expansion in renewables, battery storage, and power networks, embedding a performance culture into everything we do, further streamlining our business portfolio, motivating our talented and engaged staff, winning and retaining the trust of our customers, and rewarding our shareholders. Two particular confirmations of recent weeks. First, we successfully completed the initial extension works of the Tihange 3 nuclear reactor, following on from the completion of the deal with the Belgian government and transfer of the bulk of our nuclear waste liabilities. Second, something that perhaps isn't that widely recognized. We have become very much a big ticket renewables operator with the completion of the largest wind farm in Egypt, final negotiation of a SPPA for a 1.5 GW solar project awarded in the UAE. In fact, as we speak we have 37 wind, solar, and base plants of 250 MW capacity or more, either operational or under construction. I will also provide an update on the situation in the U.S.. Moving on to the next slide, some headline numbers. EBIT excluding nuclear was down 6% on an organic basis at EUR 5.1 billion. I am pleased at the strength and resiliency of our H1 numbers and our activities, both completely in line with our expectations. Couple of highlights. First, a strong contribution from newly commissioned assets at EUR 220 million. Second, a notable rise in our networks business supported by new gas tariffs in France benefiting from the regulatory clawback mechanism as well as by the construction of new power lines in Brazil. Net recurring income group share comes to EUR 3.1 billion, down from EUR 3.9 billion. Cash flow from operations stands at a strong level of EUR 8.4 billion, benefiting once again from substantial free cash flow that is generated by our networks and downstream activities. The structure of our balance sheet is solid. Economic net debt was down by EUR 1.1 billion over the first half to EUR 46.8 billion, equating to 3.1 times EBITDA, the same as the end of last year and below a ceiling of four times. In view of these good results, despite the macro uncertainties and forex headwinds, we approach the coming months with confidence and I can confirm our guidance for the full year with net recurring income group share between EUR 4.4 and EUR 5 billion. As we anticipated, EBIT excluding nuclear, is reaching its low point in 2025 as a whole, although within 2025 we are expecting a year-on-year rebound in the second half. In this slide I would like to talk about how we are dealing with the situation in the U.S., which I would summarize as follows. We have 8.6 GW of operational onshore wind, solar, and battery storage all unaffected by new legislation or proposed measures. We have 2.4 GW under construction, of which two-thirds in batteries which are largely protected against tariff. As we were very quick to move to de-risk and safe harbor for projects under development yet to reach FID, we have more visibility with the OBB bill having been signed into law with residual uncertainty on tariffs and precise definition of safe harbor. In this context we are ready for FID on three projects with combined capacity of over 1 GW providing adequate risk profiles with tailored safeguards that reflect well the context. I am convinced that onshore renewables enjoy an attractive future in much of the U.S. with, for instance, runaway low demand in Texas forecast by the grid regulator to rise from 85 GW this year to 218 GW by 2031. Renewables backed up by batteries have every prospect of being part of the solution to meet this demand growth. If I'm wrong about this, we have built a truly global business in renewables and battery storage that adds optionality and cuts the need to be tied to any one country. As I will illustrate in the next slide, which shows that we continue our inexorable rollout of our renewables and battery storage platform with 1.9 GW of additions over the first half to almost 53 GW of capacity. What I really want to stress here is our growing scale, first in terms of the sheer extent of what we are building with consistently close to 8 GW, close to 100 projects under construction, and second the nature of the projects completed, under construction, R1, and the location of these projects. We are capable of building the biggest ticket solar and onshore wind farms in all of our key regions, which is a testament to our efficiency of execution, purchasing, long-standing presence, and stakeholder relationships in these countries that we have built over many years. As I mentioned quickly, we delivered Africa's largest wind farm in Egypt ahead of schedule by four months. In the UAE, we are in final negotiations of a PPA for a 1.5 GW solar project that we have been awarded, as well as an ongoing bid for a 1.4 GW OCGT project. Finally, in offshore, we recently generated first power at our Ile Dieu Noir Moutier offshore wind farm in France, and we expect to have it fully on stream by the end of this year. You can see that our global pipeline in renewables and battery storage is now 118 GW, well split between the regions, but with the AMEA region more than doubling since the end of 2022 as countries such as India and the UAE embrace energy transition as a response to rising demand. This all sounds really impressive, of course it doesn't work unless we find the projects that match or exceed our IRR minus WACC spread criteria, which is at least 150basis points-250 basis points, that we deliver the project in timely fashion and on budget, and that we use our energy management expertise to maximize the revenue potential of the project. Just to finish on this slide, a word on the volume of PPA signed: 1.2 GW over the first half. Given the U.S. project that I already mentioned and are ready for FID, we are optimistic of a strong H2 despite appetite for PPAs in Europe being somehow subdued. In the next slide, I am pleased to announce good progress in the cleaning of our portfolio aimed at improving our regional and strategic focus, exiting core, recentering our local energy infrastructure business onto its five European core markets as well as Singapore and Tabriz. We are on track to deliver EUR 4 billion of debt reduction via divestments for the period 2025-2027, and as our market normalizes, we are doubling down on our efforts to optimize not only our business portfolio but also on our performance. Running parallel to what we're doing on the portfolio is indeed a big effort to bolster our performance, with an EBIT boost of at least EUR 1 billion by 2027 versus 2024. In other words, almost double the pace of previous years. I am determined to instill a culture of performance throughout ENGIE via numerous measures that have been identified. If we want to be the best energy transition utility, we must make the most of our integrated and flexible asset mix with a constant striving for efficiency and affordability. We're making good progress with a EUR 246 million impact in the first half, on track for a EUR 300-EUR 500 million target for the full year. Almost half of the improvement comes from elimination of loss-making sources, in particular EVBox, together with operational excellence initiatives in areas such as networks, flex power, PPA renegotiations, cleaning our local energy infrastructure contract portfolio in France. What we expect to accelerate as ongoing measures take hold is what we term culture and competitiveness, where we are seeing initial contributions from actions such as travel, events, and consulting, as well as efficiency in IT and digital headcount efficiency measures that we expect to kick in from next year. Finally, in Belgian nuclear, focus has switched to the first stage extension work of the two reactors that will belong to the joint venture between us and the Belgian government. Works on the first reactor, Tihange 3, were completed successfully. The plant was reconnected to the grid slightly ahead of schedule. Now works on the second unit, Doel 4, have been underway since the start of July and should be completed by the start of November, at which point the remaining sum of around EUR 3.6 billion will be paid. Gradually in H2 our exposure to merchants will fade away to be replaced by a flex LTO structure for Tihange 3 and Doel 4 with output at a quasi regulated price. At that point it is a new chapter that kicks off for ENGIE in Belgian nuclear, with our earnings set to be relatively modest but very importantly de-risked and stable, with our balance sheet free from the millstone of nuclear waste liabilities. With that I will pass over to Pierre-François. Thank you very much Catherine and good morning all. Let's go through our first half 2025 results which reflect a continued solid performance in what are the last quarters of normalization across our markets. After a very strong Q1, Q2 is coming exactly as expected. EBITDA and EBIT excluding nuke stand at EUR 7.4 billion and EUR 5.1 billion respectively, both slightly down compared to last year, reflecting a high comparison base and some foreign exchange headwinds. Organically, the decline is contained at -3% for EBITDA and -6% for EBIT. After more than two years of continued decline in energy prices, we continue to generate strong cash flows with CFFO at EUR 8.4 billion, confirming the healthy fundamentals of our operation and the high quality of earnings. Net financial debt stands at EUR 35.7 billion, up EUR 2.4 billion due to the EUR 2.6 billion payment in cash related to the closing of the Belgian nuclear agreement in Q1 that Catherine was just mentioning. Economic net debt is down by EUR 1.1 billion and our credit ratios remain stable at 3.1%, well below our 4% target. We are getting closer to the awaited inflection point for EBIT excluding nuke, and we anticipate year-on-year growth in the coming quarters, namely in Q4. In this context, we are confirming of course our 2025 guidance. Let's now turn to the EBITDA edition in more detail. We closed H1 2025 with EBIT excluding nuke EUR 5.1 billion, down organically by EUR 3.49 million compared to last year. This evolution reflects the mix of external headwinds and internal drivers, starting with four negative impacts all expected. First, forex at a -EUR 98 million impact mainly due to the depreciation of the Brazilian real. We expect the BRL impact to fade a bit in H2 but the effect of the U.S. dollar will be more visible in the second half. Secondly, scope effects amount to -EUR 80 million, primarily driven by the disposal of Senoco in Singapore and UCH in Pakistan and the deconsolidation of CEFI in Morocco. Thirdly, price and volatility contributed to -EUR 258 million, mostly within our supply and energy management activities. This reflects normalizing market conditions, an increased transportation cost in energy management and a high comparison base in B2B and B2C which included positive price-related, non-repeat and timing items. Last year, those headwinds were significantly mitigated by tariff increases in our network activities. Fourthly, volumes were down -EUR 392 million, largely due to lower hydro volumes following exceptionally high levels in H1 2024. On the positive side, two long-term trends relentlessly supporting earnings growth commissioning added to EUR 21 million. This includes around EUR 150 million for renewables and base and EUR 70 million for infra, highlighting the relevance of our development strategy and our very disciplined execution. Performance contributed to EUR 246 million, reflecting operational improvements across all our segments, and I will provide more details later on. Other impacts amount to -EUR 166 million, and it includes notably the cost of our employee shareholding plan for a bit more than EUR 50 million along with various one-offs. Finally, nuclear EBIT stands at EUR 500 million, down to EUR 67 million with lower capture prices, the shutdown of DOL1 in February, and the conformity outage of Tihange 3 in the second quarter. Overall, while market normalization and lower volumes weigh on EBIT, our investments and performance initiatives are delivering at pace and secure further our trajectory for the year and I should say beyond. Let's start the review of our reporting segment performance with renewables and flex power. EBIT was impacted by scope and FX, minus EUR 111 million, split almost evenly between both Forex and scope. Organically, EBIT was down -9%, of which -EUR 104 million on renewables and base and -EUR 91 million on gas generation. The decline on renewables and base is driven by lower volumes, which had a -EUR 340 million impact, reflecting a return to more normal hydrological conditions in Europe after an exceptionally strong H1 2024. This was partly offset by high level of commissioning, plus EUR 155 million, and by lower hydro taxes, plus EUR 66 million. We added 1.9 GW of capacity over the period, and we achieved prices for hydro in France basically stable at EUR 110 per megawatt. Turning to gas generation, EBIT decreased organically by EUR 91 million. The main driver was a -EUR 243 million impact from lower captured spark spreads in Europe, reflecting a hedging strategy under normalizing market conditions. However, this was partially offset by the absence of intra-marginal taxes in H1 2025, which had a positive EUR 108 million effect, and also by a positive one-off in Chile and a favorable price effect in Australia. While market conditions were less supportive in Europe, our balanced portfolio, our investments, and disciplined operations helped mitigate the impact with a compelling H1, and we continue to build momentum in our growth platforms. Let's move to infrastructures, which delivered an outstanding performance in the first half with +43% organic growth. Scope on FX had a slightly negative impact with the depreciation of the BRL network. EBIT increased by EUR 33 million organically, supported by new tariffs in both Europe and LATAM. This was partially offset by lower spreads in gas storage in the U.K. and Germany, reflecting again market normalization after a persistently strong 2024. Importantly, reinvestment efforts are paying off with a EUR 52 million contribution to EBITDA from newly commissioned assets. Connected biomethane capacity in France increased to 13.8 TWh per year at the end of June 25th. Looking at local energy infrastructures, performance improvements helped mitigate the impact of lower spreads on generation assets, notably in France, which drives EBIT margin down compared to last year. All in all, infrastructure is now back in being a strong and stable contributor to the group result, with further growth driven by both regulatory frameworks and a disciplined investment strategy. Moving on to CEM supply and energy management, as anticipated, EBIT for the segment was impacted by the market normalization resulting in a -32% organic decrease compared to H1 2024. B2C activities are in line with expectations. The decrease versus last year is largely due to a high comparison base, which included then a positive non-repeat and timing items in 2024. That said, we maintained sound commercial margins in H1 2025 and benefited from performance actions which helped cushion the impact and are supporting a full year ambition. Close to half a billion in B2B EBIT was down to EUR 220 million, mainly due to a reduction in seasonality spreads which led to a lower positive timing effect. This effect has no impact on full year as it reverses over H2. Moreover, we are in a good commercial momentum with a Q2 stable compared to last year, excluding a positive one-off that should translate into a stronger H2 than previous year. Energy management was more significantly affected by market normalization, leading to first lower market reserve reversals. That was something we commented already in Q1, to a negative one-off related to the revaluation of loss-making gas transportation contracts following tariff increases in Austria and in the Netherlands, and three, softer activity in Q2 due to geopolitical and economic uncertainty. Volatility is there, but it is driven by unpredictable geopolitics. Therefore, we remain cautious with the hedging strategies in Q1 2025, and we decided to reduce volumes, which led to lower margins. Overall, same performance is on track and we expect former GEMS B2B plus energy management to land the year close to EUR 2 billion EBIT. A few words on our nuclear activities. As expected, EBIT came in at EUR 503 million, down from EUR 770 million in H1 2024, reflecting a 35% year-on-year decrease. This evolution is explained by price, by volumes, and higher depreciation. First, we recorded lower capture price from EUR 104 to EUR 97 per megawatt hour, which is a 6% drop. This was partly offset by the absence of the infra-marginal tax in France in H1 2025 and also a lower G2 tax in Belgium, which helped cushion the decline. Net year-on-year impact is a negative EUR 149 million on EBIT. Second, volumes went down from 16 to 13.8 terawatt hours with a phase out of DOL1 in February and a drop in availability in Belgium from 88% to 81%, driven by the conformity outage of tranche 3 in Q2. It translated into a minus EUR 71 million near impact on EBIT, and then depreciation and other effect had a -EUR 47 million impact due to higher depreciation on investments in Belgian assets which were commissioned in 2024-2025, and these are being depreciated now over a very short remaining lifetime of the asset. While the year-on-year comparison is negative, the performance is in line with expectation and we continue to manage a nuclear fleet with discipline as we transition through the end-of-life phase of several units. Let's now turn to our performance program. In the first half of 2025, performance initiatives contributed EUR 246 million to EBIT, putting us firmly on track to deliver full year target by year end. As you can see, all three performance drivers are now contributing. Operational excellence delivered EUR 96 million. This includes tangible actions such as PPA renegotiation, asset and contract portfolio optimization. Procurement efficiencies are not one-offs, they reflect a strong and sustainable momentum across the group and we have delivered that now for a few years. We also made our first gains on culture and competitiveness. Our new plan with EUR 38 million of EBIT contributions. Good example is ADI business which is leading the way by simplifying its structure such as removing a management layer in France. Expect this effort to continue in H2. On loss-making activities, we saw a EUR 112 million contribution driven by the closure of EV Box activities, but also the positive impact from performance action in the supply activities. While some one-off impacts in a few entities slightly weighed on the net result, we expect a stronger contribution in the second half. All in all, we are well on track to deliver our performance target, and we remain focused on embedding these improvements structurally across the organization. Let's take a look at the main items driving net income. EBIT we discussed. Net financial expenses is stable at $1 billion as lower average cost of gross debt was offset by lower cash remuneration resulting from the decrease in the short-term rate. Recurring income tax decreased slightly to $1.1 billion with an effective tax rate at 25.8%, which notably includes the special tax in France. As a result, net recurring income group share stands at $3.1 billion compared to $3.8 billion last year. The reported net income group share amounts to $2.9 billion after accounting for non-recurring items, including minus $0.2 billion from mark-to-market on energy derivatives and minus $0.1 billion in restructuring costs. Let's look at the cash flows. CFFO reached $8.4 billion in H1, a high amount demonstrating the group's ability to generate cash flow on a sustainable basis. Please remember that we do not have tailwind anymore from prices decrease in our working cap variation, which was still substantial in H1 last year. Operating cash flow remains strong despite normalizing market condition again, and the $0.3 billion negative year-on-year impact on variance in net working capital comes from margin calls, which are higher following the decrease in commodity prices. Taxes and interest paid were largely stable, as you can see. Not much to report in this item except for our confirmed ability to generate cash. Let's now move on. Net debt. Net financial debt increased from $33.2 billion to $35.7 billion due to the funding of a nuclear obligation in Q1. CapEx and dividends were largely covered by strong cash generation in H1. You may have noticed that our net gross CapEx were down compared to last year. This is mainly due to timing of acquisitions and also higher sell-downs in the U.S. Economic net debt is down $1.1 billion to $46.8 billion, and our leverage ratios remain solid with net financial debt to EBITDA at 2.4%. Economic net debt to EBITDA stable at 3.1%, well below our 4% threshold. We are very pleased to see our credit ratios remain stable and well within target despite a significant payout made in Q1 as part of the closing of the Belgian nuclear agreement. To wrap up. We delivered a robust financial performance with a good start of the year. Q2 came in as expected, supported by strong cash generation. We confirmed our 2025 guidance with EBIT excluding Nuke in between EUR 8 billion and EUR 9 billion and net recurring income between EUR 4.4 billion and EUR 5 billion. We are confident in achieving these targets. It's a strong start to the year. Just keep in mind the expected FX headwinds ahead, particularly from the U.S. Dollar. We are a utility and our priority is not to upgrade or beat our guidance each quarter, but to deliver consistent, predictable, durable growth of earnings. On that note, we are now at an inflection point for EBIT excluding Nuke and we expect year-on-year growth to gently resume in the second half of the year, especially in Q4, leaving most of the consequences of the energy crisis of 2022 behind us. We are entering normalized quarters and going forward we expect momentum to build with the contribution of new investments and performance. This sets the stage for the confirmed growth trajectory in 2026-2027, which we remain very confident about. Without further ado, I hand over to Catherine for the conclusion. Thank you, Pierre-François. To conclude, we delivered indeed good results in what has been an unpredictable macro environment. Very importantly, and this has been truly a guiding principle for the whole management team at ENGIE for now a few years, we are very focused on delivery and execution. We are implementing the plan that we shared with you earlier this year. We are confident about our earnings guidance for 2025 and indeed looking forward to delivering on our growth strategy from next year onwards. Thank you for your attention and I am turning it back to Delphine for the Q&A. Thank you, Catherine. Operator, can you please open the lines. To Q&A? This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on the touch-tone telephone. To remove yourself from the question queue, please press star N2. Please pick up the receiver when asking questions. Anyone who has a question may press star N1 at this time. First question is from Harry Wyburd, BNP Exane. Hi, morning everyone. Hi, Catherine. Hi, Pierre. Francois. Two numbers focused questions for me please. Firstly, Catherine, I think in your opening remarks you mentioned that EBITx Nuclear in the second half is expected to be up versus last year. If I've done the maths right, that would be a floor, I think, of EUR 8.37 billion for the full year, which is obviously not far off your midpoint guidance of EUR 8.5 billion. Would it be fair to extrapolate that floor to being quite close to the EUR 4.7 billion midpoint for net income? That is, are you effectively saying that you can still achieve the net income midpoint? Given the number of one-offs and scenario effects in 1H, if we were to normalize the 1H 2025 net income to construct a base for 1H 2026, could you help us on what we will be adding or subtracting? What's the overall effect from one-offs and scenario in 1H this year? The second one is on the dividends. I think you've alluded in the first quarter call to an ambition to raise the dividend from floor in 2025 to start it growing a year earlier than earnings. I guess if I was to look through that, it gives you a bit of an incentive to make next year's earnings growth rather than this year. I'm interested to know, are there any levers you can pull to kind of move earnings into next year which should make it easier for you to raise the dividend given the payout ratio dynamics next year. Thank you. Thank you, Harry. Yeah, I'll maybe just talk a little bit about our dividend. Just a reminder, if you keep principles that we obviously reaffirmed our profile as a utility company, we understand the importance of dividend to our shareholders. We are also very attached, as you know, to the consistency in our dividend policy. Reminded you that back in February. We are also obviously listening to the market. We understand the appetite to have a gently growing dividend trajectory. We heard that. On the other hand, we have a dividend policy which is a proportion of our net recurring income, which we would stick to. Obviously, being a decision that will be taken with the board, it will be taken next year. It's really early to comment more than that, Harry. On the other hand, obviously we are listening and we understand the importance of trying to get to that trajectory. You want to. Yeah. On the one-off, I think that you have. It's globally awash. They are actually slightly negative in same for, let's say, $50 million-$100 million, and they are slightly positive in RNF, let's say, same kind of amount. You can say that H1 is globally washed in terms of one-off. It's a fair representation where we are. Yeah, you're right. I mean, we do expect EBITDA to go slightly up indeed compared to last year, which is at the end of the day very expected because it means it's pointing to the midpoint. It is true that it would take something that we struggle to see today to meet the midpoint on the guidance. This is achieved despite significant FX impact. Bearing in mind that we have about $100 million in H1, we expect even a bit more than that in H2. We are over $200 million of negative headwind on FX. With that, we are indeed comfortable to target our main point. I'm not going to elaborate on the dividend, but we are not moving results from one year to the other. We are managing, of course, our business and driving our business. We are steering risk management, of course, to prepare the future, that's for sure, and that we are doing intensely in 2025. Okay, that's very clear. Thank you. Next question is from Arthur Sitbon, Morgan Stanley. Yes, thank you very much. Thanks for taking my questions. The first one is a follow-up. To the question on EBIT evolution for H2, I was wondering if you could provide a little bit of granularity on which divisions will drive the rebound in EBIT in H2 basically. The other question that I have. Is on the situation in the U.S. I think we're waiting clarity on the implications of the recent executive order on renewables. I was wondering if you could provide some thoughts on that and what would be to you an outcome that would be particularly challenging and would require you to revise your ambitions. Thank you very much. Yeah. Okay, let me maybe start with the U.S. Indeed the situation has been super fluid. Maybe one general statement is that the fundamentals of the market remain very strong and customers' appetite is present. I mean you just listen to some of the announcements that you've heard from hyperscaler on their CapEx spend in the coming weeks, coming months. It's just spectacular. Everything will need to have energy. As you guys know, this power will have to come from renewables because it's just a plain queue in terms of nat gas or nuclear will not be able to meet all this additional demand in the United States. Fundamentals remain very strong on renewables. Now, when you go into the details, you really have to follow it on a week by week, which is what our teams have done I think with frankly great success. I'm very pleased on where we sit. Just to zoom a little bit, as you know, we have 8.6 GW under operation. These assets are great, they're doing well. In fact, if anything, their value in my mind is only going to increase given the power demand situation that we are going to experience. For the projects under construction or the ones who are advanced development, they're moving along, they're largely non-affected because we took some supply chain actions. Remember there were already some tariffs looming. What we did is that we accelerated some deliveries. We also had obviously project contingencies and a strong execution. All this is going well, no issue. What we did is that we used the clarity that came with the new bill to be able to indeed FID three projects for the total sum of 1.1 GW. If I look at what this IRA or the OBD bill gave us in terms of more clarity on the IRA, it is the fact that wind and solar that's starting construction by end of 2025, they are completely okay. They'll get the ITC, PTC. There is no issue. You have the ones starting in H1 2026. There is this little qualifier of FEOC which is really, you know, do you have too much Chinese content? There are different thresholds. This is something that we are obviously reviewing. Battery and energy storage will benefit from IRA, but only there will be qualifier again on Chinese content. All of these now is clarified and we can really manage with confidence the three projects that we have just FID. The nice thing about these three projects is that they will contribute EBIT to 2026, 2028 too. Really, largely what we see for the current period 2025, 2027, our U.S. plan is quite solid and robust based on this project that we are moving along now. There remains one uncertainty which has been well commented, and again, not to go into too many gory details, but it's really about what we can call start of construction. We are awaiting clarification on August 21 on this. The current definition which exists today is obviously low threshold. There is definitely room for us for this threshold to be worsened. We don't really see a scenario where FID projects would be in trouble. If they were, then obviously we would have not taken too much commitment, so we would not be in a too dire situation. It would be a welcome clarification for sure that we will wait sometimes in August. If I look beyond this, it's really we're taking it project by project. It depends on the technology, the permit risk, obviously the off-taker risk appetite. I should have commented maybe the fact that the project that we are moving along, they are of a different nature in terms of the, I would say, T's and C's that we have with our off-takers, which is, by the way, a reflection of the need for these off-takers to secure the power. We are managing to balance much better the risk distribution in order for us to move this project under confidence. That's a little bit the view on the project. Again, we'll be looking at beyond these three projects depending on all of this aspect, whether we are able to move some more. I very much look forward to that. I hope that it will happen. If not, then Arturo, as you guys know, we have choices, we have options. We've created an incredible situation at ENGIE where we have a geographical footprint which is not huge, it's not all over the place, but we have a few countries where we have depth, where we can actually develop and reallocate some capital, which we have shown a little bit examples of today, and if we need to, we will continue. Big picture in the U.S., the power demand being such that we think that our renewable projects are going to be contributing to this demand for the coming months and years. We will find a way. Thank you, Arthur, for giving me the opportunity to talk a bit about the phasing. Clearly, that's a place where we can improve a bit also in the way we share you the information. In H2, what do we expect? For renewables and flex, the two big tickets are that the hydro normalization will come, so we expect a much less adverse trend in there. We are done now with the bulk of the spread decline in gas generation in Europe, so this is behind us. That was more a Q1 event. Going forward, we expect more stability. Of course, we have the benefit of CODs, we have the benefit of performance. We do expect RNF to be positive in H2. Networks, we are also done with the big impact of tariff increase in France, but we still have some good wins coming from other places. We depend, of course, on climate, but we will again expect the network to be in good shape for H2. The big ticket is same where there is a lot of seasonality and moving parts. Here, we need to speed on energy management. Remember that H2 last year, especially Q4, was not that strong. We do expect indeed to see normalization kicking in in H2, probably negative still in Q3, but much better in Q4. On B2B, you see that Q2 was actually improving compared to last year. We expect this to keep going in Q3 and Q4, especially Q4. You remember that in ENGIE, Q1 and Q4 are important and more important than summer. That's even more true for B2C, which is highly seasonal. A lot of our business is done in Q1 and Q4 for B2C. Here again, of course, we do not expect to be as strong in Q4 as we were last year, but we expect indeed H2 to be positive and especially in Q4 again. You see that cycle coming through. Clearly, the key topic is that in H2 we start to have the benefit of the normalization of markets. It took a while, it took more than two years. It started, you remember, in the first half of 2023, but given a hedging policy in three years, I mean, crisis has been actually spread over some time. Now in H2 25 we are getting close to the point where we are more normal in terms of pricing. That's why we expect indeed EBITDA to start picking up towards the end of the year. I hope it helps. Yes, thank you very much. Next question is from Jay Patel, Goldman Sachs. Good morning and thank you very much for the presentation. I guess I wanted to focus on a strategy question. Over the years, if I look at the success of your strategy, it's been amazing what you've achieved and clearly you have a lot of opportunities in renewables factories. You know, quite a large scope around the portfolio. I would say if I was being critical, the area that hasn't delivered to the same speed has been that old definition of energy solutions. Even though we have a reduced scope this year, it seems that business hasn't really taken huge steps going forward. I'm just wondering when does it become, you know, it's a small amount of the portfolio. You have a lot of opportunity in other parts of your portfolio. Does it make sense to have this business as in what are the merits of having this within the portfolio? I guess is the better question. When do we sort of really hold you accountable to its delivery going forward so that we have a better understanding of that longer term trajectory of it? All right, thank you. Thanks for the direct question. We appreciate it and maybe a couple of points. I think we've shown as a management team that we are not shy to rationalize the portfolio. This is something that we have almost no emotions to do. When we think that something doesn't belong to ENGIE, we tackle and we address the problem. In the case of LEI, we do think that LEI today has a very unique positioning to deliver the energy transition with our customers and in a decentralized manner. We believe strategically that being able to have this decentralized position among our customers, among industrials, is going to give us a unique positioning on the flex side of the energy transition. If you look at flexibility, which we talk a lot about on the production side, at some point it's going to have an emerging value on the demand side. I think you see that in some businesses on the B2C side, some companies actually have a very strong positioning there to leverage the flexibility of the demand side. We believe that LEI, being a very successful business in decarbonizing customers, will have a special value within ENGIE being able to provide flexible service. I know this sounds a little bit conceptual and we agree today we are not able to show that value. Right now the focus for LEI, and here the accountability is there, I can tell you. Jay it is there. I can tell you that the LEI team really feels it is to focus, to perform, to industrialize, to digitalize as well, and to be good at what they do. I really believe that this recovery that is taking a bit longer maybe than what we would have liked is today taking place and that we will be with the market able to show indeed trajectory that are free from the one-offs, because we have a bit suffered from one-offs here and there which have blurred this trajectory curve that we would like to show quicker. I'm pretty confident with what's happening and recentering on five key European markets, barring Singapore and Tabrid, collapsing the layers and actually the LEI team having done that, are really at the forefront at ENGIE of doing a lot of these simplifications, panel layer, et cetera. They are all doing the right thing. We will show soon hopefully those curves and give you and share with you the confidence and excitement that we have with the market, and then in the coming years being able to have more proof points about indeed how strategically it does fit into a portfolio, particularly providing flexibility services to the whole energy transition and to our portfolio. Finally, I would also add in terms of synergies, the fact that there are synergies also with energy management that we are actually already today materializing, but obviously not yet to be reported to the market. May I have one more question? Hello. Sure. Yeah, I was just thinking, it's also really nice to hear sort of clearly, like data centers increasingly get more and more attention as the months go by. From your perspective, what have you seen over the last 12 months, and how is that picture evolving for you going forward? Do you think you could communicate on a more frequent basis how that opportunity is materializing for you so that we can sort of gauge that value that potentially could present to you? Yeah, no, look, data center, obviously you guys know that a lot of the PPAs, a lot of the renewable projects that we do are actually for data center operator or hyperscaler. It is definitely a big driver of our business. We are obviously working because data center is obviously a massive opportunity in terms of supply. Data center, they want PPAs, they want green electrons. There is also quite a lot of excitement about having at ENGIE very specific positioning, for example, having connections to the grid. That obviously in itself can make a completely different conversation with data center where we can bring something to developers that they don't have. It's not just about PPA, it's also about our quite unique positioning and we're definitely working on a lot of things around those topics. When we're ready, we will indeed communicate more on the topic. We are very, very excited about what we are doing with data center. Thank you very much. Much. Operator, next question please. Next question is from Zach Ho Jefferies. Hi, thanks for the time. There are two questions for me. Firstly on earnings, I think on Hydro, you mentioned in your slides that there's a minus $314 million year on year impact in the first half. I'd just like to know how much did you budget for 2025 in terms of lower volumes? I remember that in your February presentation I think that the earnings showed minus $300 million to $500 million. I'm trying to figure out basically what needs to come through in the second half in terms of Hydro volumes for us to kind of gauge whether or not it's above or below your expectations. Quickly on gens, I think Pierre-François, you mentioned that in second half you expect B2B to be higher year on year. Just want to know if you can provide a second half 2024 figure for B2B because I don't believe that. I think that isn't disclosed. I just want to know what the starting base is for second half 2024 for us to see an earnings increase. My second question would be just a quick follow up on Jay's question and asking about data centers and more specifically your aim to offer 24/7 green power to customers, which you briefly talked about in your February presentation. I just want to know what the progress is like or what you're seeing on the ground with regards to that offering. What needs to come through for you to get closer to that goal of I think 20% of your PCAs being 24/7 green power. Is it just a technology, is it just a technology thing or are there more developments that need to come through for you to kind of realize that ambition? Thank you. Yeah, I mean, I'll start with the last question. I can sense the excitement around Data Center. Point well taken in terms of 24/7 ambition, it is progressing quite well. We have a few customers where we have advanced discussions that are also a bit pioneering the concept and helping push us towards being able to offer this type of product. The key behind this ambition for us, it's really to have the right portfolio. It really is a portfolio play, the 24/7, which is why we think we have quite a good position and a unique position because you need, obviously, you need renewables, but you also need battery. You need to be able to integrate a lot of different profiles in order to fit that customer profile. These deals take some time. They are quite complicated to put together, but our teams are working on it and we are seeing quite a few customers indeed very, very interested in those products. Again, we'll make sure that we follow up and give more data as we progress on the topic. Maybe a couple of answers on your very good technical question. On hydro, we budget for whatever is climate related. We budget on P50, as you can imagine. Compared to budget, what we have seen in H1 was not a big surprise, so no significant impact. We knew that was coming, so it was embedded in our guidance. The same goes for H2. We don't know yet what's going to happen in H2, but our budget, which is, as you can imagine, underpinning our guidance, is based on the midpoint in terms of forecast. Again, we are already covered for that. When it comes to B2B last year, you remember that H1, you should have the numbers, but I just can share the numbers with you. H1 last year was 1,108 and H2 was -29. The seasonality was very strong and we have been working hard on the seasonality to make sure that our contracts are better shaped. Clearly, we expect H2 to be higher, significantly higher than the reference that you have to 2024. We expect B2B to come with a very nice year. I mentioned that during Q1 and this is confirmed with very good commercial activity in B2B. Very pleased with that. Not only are we indeed selling well, but we are looking at margins and we are even looking at margins for longer maturity. It's really a business we are very pleased with. All right, thank you very much. Next question is from James Brown, Deutsche Bank. Just one question for me, and that was on the outlook for batteries or storage in the U.S. Can you talk a little bit about the U.S. and how your investment was kind of coming down a bit? Obviously, it's understandable that the outlook is a little bit more mixed on the renewable side, given some of the changes. I was wondering whether you could just talk to batteries specifically, because you've been very positive about batteries in the past, and as I understand it, the subsidies have largely remained in place. Do you still see the outlook as being very positive there, or have there been some changes that make you feel a bit more, a bit more moderately positive? Thank you very much. No, we are very positive in general about battery prospects in all of our key markets. They are very positive, also in the United States underpinned by the acquisition that we did from BRP a couple of years ago. What is really important today for us on battery is that we are really delivering on the pipeline that we purchased from BRP. When you look at the pipeline that we purchased from BRP, they had a two something GW, we had 800 MW in advanced development, and we are today in 2025 executing on all of this pipeline, putting these batteries in service. That's going really well. We have a little bit of bottleneck, which is very punctual and has nothing to do with IRA or regulation, which is in aircraft where testing at the time when you commission battery you have to do some tests, and these tests are taking a bit longer. Within intra year 2025, we are seeing a little bit of slippage. Apart from that, the delivery on battery is going very well. Obviously, going forward, batteries as you know will continue to enjoy IRA tax credit benefits. That's the good news. We have now that anchored. The remaining issue for us is this famous FEOC, which is basically putting a threshold or a maximum amount of Chinese content on those batteries. This is really going to be now a supply chain play, whether or not we can be below this threshold. If you are above this threshold, then the tax credit doesn't apply. Then it's going to be a matter of whether the battery is economical or not. That's really for us the question. In terms of already delivering the value of BRP, we are pretty much there, so no problem. Taking a step back, what we are seeing today is that batteries opportunities across all of our key markets outside in the U.S. We were, as you know, very quick and very ambitious in the U.S., but the international non-U.S. markets were lagging behind the U.S., and now what we are seeing is that international markets are catching up. We have really good performance, good development opportunities in Europe, in Chile, in Australia. That's really the good news because we feel that we have a very, very strong position in batteries in general. Operator, can we take a last question please? Last question is from Juan Rodriguez, Kepler. Good morning, thank you for taking my question. I have two if I may. The first one is on CapEx and related to the U.S. growth CapEx that you are now signaling around the $2 billion level for 2025-2027. Looking back, it has represented around a third of your renewables portfolio. Looking now, how can we see the $21-24 billion growth CapEx that you signal at your CMD? Can we expect lower growth CapEx or that it would be mostly compensated by other regions as you signal, or maybe some M&A angle on it? That would be the first question. The second one is on the economic net debt and mainly on the leverage ratio. We know you're going to fall well below the 4x economic net debt to EBITDA, but where do you expect the year to end given the current CapEx, CapEx trends, and so on? Thank you. Maybe on your CapEx question, and if I understood properly the question, it was about the U.S. contribution to the growth CapEx and I think a good proxy for renewable CapEx is to look at the pipeline and we gave you the geographical split and you can see that it's moving a little bit and you will see that our share of pipeline from North America is actually decreasing to the benefit of AMEA. You can use that as a proxy for CapEx and you might see a bit less U.S. CapEx and a bit more in AMEA in terms of renewables. All in all, we don't expect to change our gross CapEx. As we mentioned, we have optionality and that's really, really important for us. Yeah. On that note, indeed we have identified a couple of potential acquisitions in renewables which are, as you know, a mid-sized acquisition. You know the story and clearly the market has opened a bit of opportunities here and there. Sometimes you can buy good assets. We are very pleased to secure this acquisition in the UK, but that was very small in H1. We have a couple of leads. If we were able to close this acquisition at year end, it would of course help a bit of CapEx for this year, as Catherine said. I mean there is good year, there is less good year in terms of holding out, but no worries about the global envelope. On the net debt to EBITDA, yes, we expect it to rise. Clearly if you compare to a couple of years ago, we are expecting this ratio to rise much quicker. The hard fact is that we have been able to harvest longer and higher the benefits of the crisis. We are now exiting with a ratio which is a bit lower indeed than what we expected. However, for year end we do expect a further rise. It may, yeah, it would be below 3.5%, that's for sure. Below the level that we want to steer the group. It will still leave significant room for more. Indeed, somewhere between 3.1%, 3.4%. That's where we are trying to get at year end, depending again on the pace where we can roll out CapEx and what is done in H2 2025 will be done in H1 2026. This is the end of the Q&A session. Thank you all for joining the call. Of course, if you have any follow up question, do not hesitate to call the IR team. Thank you. Thank you. Ladies and gentlemen, this concludes the conference call. ENGIE thanks you for your participation. You may now disconnect.

Speaker 5: Thank you for holding and welcome to ENGIE's first half 2025 financial results presentation. For your information, this call is being recorded. It will take place in a listen only mode and you will have the opportunity to ask questions after the presentation. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. I will now hand you over to Delphine Deshayes, Head of Investor Relations. Thank you for holding and welcome to ENGIE's first half 2025 financial results presentation. thank you for holding and welcome to engie's first half 2025 financial results presentation For your information, this call is being recorded. for your information this call is being recorded It will take place in a listen only mode and you will have the opportunity to ask questions after the presentation. it will take place in a listen only mode and you will have the opportunity to ask questions after the presentation Anyone who wishes to ask a question may press star N1 on their touchstone telephone. anyone who wishes to ask a question may press star n1 on their touchstone telephone I will now hand you over to Delphine Deshayes, Head of Investor Relations. i will now hand you over to delphine deshayes head of investor relations

Speaker 7: Thank you and good morning everyone. It's my pleasure to welcome you to ENGIE's H1 conference call. Shortly Catherine and Pierre-François will present our half year results, following which we will open the lines to Q&A with my polite request of limiting your questions to one or two only please, and with that over to Catherine. Thank you and good morning everyone. thank you and good morning everyone It's my pleasure to welcome you to ENGIE's H1 conference call. it's my pleasure to welcome you to engie's h1 conference call Shortly Catherine and Pierre-François will present our half year results, following which we will open the lines to Q&A with my polite request of limiting your questions to one or two only please, and with that over to Catherine. shortly catherine and pierre-françois will present our half year results following which we will open the lines to q&a with my polite request of limiting your questions to one or two only please and with that over to catherine

Speaker 3: Thank you very much Delphine and good morning everyone and welcome to the presentation for our first half 2025 results. I can report a robust set of numbers within an economic, political, and geopolitical context of some turbulence. Once again we are able to demonstrate the relevance and resilience of our integrated mix of flexible and renewable generation, our extensive downstream customer portfolio, our unrivaled expertise in energy management, and our defensive and highly cash generative network business. Thank you very much Delphine and good morning everyone and welcome to the presentation for our first half 2025 results. thank you very much delphine and good morning everyone and welcome to the presentation for our first half 2025 results I can report a robust set of numbers within an economic, political, and geopolitical context of some turbulence. i can report a robust set of numbers within an economic political and geopolitical context of some turbulence Once again we are able to demonstrate the relevance and resilience of our integrated mix of flexible and renewable generation, our extensive downstream customer portfolio, our unrivaled expertise in energy management, and our defensive and highly cash generative network business. once again we are able to demonstrate the relevance and resilience of our integrated mix of flexible and renewable generation our extensive downstream customer portfolio our unrivaled expertise in energy management and our defensive and highly cash generative network business We remain laser focused on driving forward the energy transition by carefully targeted expansion in renewables, battery storage, and power networks, embedding a performance culture into everything we do, further streamlining our business portfolio, motivating our talented and engaged staff, winning and retaining the trust of our customers, and rewarding our shareholders. Two particular confirmations of recent weeks. First, we successfully completed the initial extension works of the Tihange 3 nuclear reactor, following on from the completion of the deal with the Belgian government and transfer of the bulk of our nuclear waste liabilities. Second, something that perhaps isn't that widely recognized. We have become very much a big ticket renewables operator with the completion of the largest wind farm in Egypt, final negotiation of a SPPA for a 1.5 GW solar project awarded in the UAE. We remain laser focused on driving forward the energy transition by carefully targeted expansion in renewables, battery storage, and power networks, embedding a performance culture into everything we do, further streamlining our business portfolio, motivating our talented and engaged staff, winning and retaining the trust of our customers, and rewarding our shareholders. we remain laser focused on driving forward the energy transition by carefully targeted expansion in renewables, battery storage and power networks embedding a performance culture into everything we do further streamlining our business portfolio motivating our talented and engaged staff winning and retaining the trust of our customers and rewarding our shareholders Two particular confirmations of recent weeks. two particular confirmations of recent weeks First, we successfully completed the initial extension works of the Tihange 3 nuclear reactor, following on from the completion of the deal with the Belgian government and transfer of the bulk of our nuclear waste liabilities. first we successfully completed the initial extension works of the tihange 3 nuclear reactor following on from the completion of the deal with the belgian government and transfer of the bulk of our nuclear waste liabilities Second, something that perhaps isn't that widely recognized. second something that perhaps isn't that widely recognized We have become very much a big ticket renewables operator with the completion of the largest wind farm in Egypt, final negotiation of a SPPA for a 1.5 GW solar project awarded in the UAE. we have become very much a big ticket renewables operator with the completion of the largest wind farm in egypt final negotiation of a sppa for a 1.5 gw solar project awarded in the uae In fact, as we speak we have 37 wind, solar, and base plants of 250 MW capacity or more, either operational or under construction. I will also provide an update on the situation in the U.S.. Moving on to the next slide, some headline numbers. EBIT excluding nuclear was down 6% on an organic basis at EUR 5.1 billion. I am pleased at the strength and resiliency of our H1 numbers and our activities, both completely in line with our expectations. Couple of highlights. First, a strong contribution from newly commissioned assets at EUR 220 million. Second, a notable rise in our networks business supported by new gas tariffs in France benefiting from the regulatory clawback mechanism as well as by the construction of new power lines in Brazil. Net recurring income group share comes to EUR 3.1 billion, down from EUR 3.9 billion. In fact, as we speak we have 37 wind, solar, and base plants of 250 MW capacity or more, either operational or under construction. in fact as we speak we have 37 wind solar and base plants of 250 mw capacity or more either operational or under construction I will also provide an update on the situation in the U.S.. i will also provide an update on the situation in the u.s Moving on to the next slide, some headline numbers. moving on to the next slide some headline numbers EBIT excluding nuclear was down 6% on an organic basis at EUR 5.1 billion. ebit excluding nuclear was down 6% on an organic basis at eur 5.1 billion I am pleased at the strength and resiliency of our H1 numbers and our activities, both completely in line with our expectations. i am pleased at the strength and resiliency of our h1 numbers and our activities both completely in line with our expectations Couple of highlights. couple of highlights First, a strong contribution from newly commissioned assets at EUR 220 million. first a strong contribution from newly commissioned assets at eur 220 million Second, a notable rise in our networks business supported by new gas tariffs in France benefiting from the regulatory clawback mechanism as well as by the construction of new power lines in Brazil. second a notable rise in our networks business supported by new gas tariffs in france benefiting from the regulatory clawback mechanism as well as by the construction of new power lines in brazil Net recurring income group share comes to EUR 3.1 billion, down from EUR 3.9 billion. net recurring income group share comes to eur 3.1 billion down from eur 3.9 billion Cash flow from operations stands at a strong level of EUR 8.4 billion, benefiting once again from substantial free cash flow that is generated by our networks and downstream activities. The structure of our balance sheet is solid. Economic net debt was down by EUR 1.1 billion over the first half to EUR 46.8 billion, equating to 3.1 times EBITDA, the same as the end of last year and below a ceiling of four times. In view of these good results, despite the macro uncertainties and forex headwinds, we approach the coming months with confidence and I can confirm our guidance for the full year with net recurring income group share between EUR 4.4 and EUR 5 billion. As we anticipated, EBIT excluding nuclear, is reaching its low point in 2025 as a whole, although within 2025 we are expecting a year-on-year rebound in the second half. Cash flow from operations stands at a strong level of EUR 8.4 billion, benefiting once again from substantial free cash flow that is generated by our networks and downstream activities. cash flow from operations stands at a strong level of eur 8.4 billion benefiting once again from substantial free cash flow that is generated by our networks and downstream activities The structure of our balance sheet is solid. the structure of our balance sheet is solid Economic net debt was down by EUR 1.1 billion over the first half to EUR 46.8 billion, equating to 3.1 times EBITDA, the same as the end of last year and below a ceiling of four times. economic net debt was down by eur 1.1 billion over the first half to eur 46.8 billion equating to 3.1 times ebitda the same as the end of last year and below a ceiling of four times In view of these good results, despite the macro uncertainties and forex headwinds, we approach the coming months with confidence and I can confirm our guidance for the full year with net recurring income group share between EUR 4.4 and EUR 5 billion. in view of these good results despite the macro uncertainties and forex headwinds we approach the coming months with confidence and i can confirm our guidance for the full year with net recurring income group share between eur 4.4 and eur 5 billion As we anticipated, EBIT excluding nuclear, is reaching its low point in 2025 as a whole, although within 2025 we are expecting a year-on-year rebound in the second half. as we anticipated ebit excluding nuclear is reaching its low point in 2025 as a whole although within 2025 we are expecting a year-on-year rebound in the second half In this slide I would like to talk about how we are dealing with the situation in the U.S., which I would summarize as follows. We have 8.6 GW of operational onshore wind, solar, and battery storage all unaffected by new legislation or proposed measures. We have 2.4 GW under construction, of which two-thirds in batteries which are largely protected against tariff. As we were very quick to move to de-risk and safe harbor for projects under development yet to reach FID, we have more visibility with the OBB bill having been signed into law with residual uncertainty on tariffs and precise definition of safe harbor. In this context we are ready for FID on three projects with combined capacity of over 1 GW providing adequate risk profiles with tailored safeguards that reflect well the context. In this slide I would like to talk about how we are dealing with the situation in the U.S., which I would summarize as follows. in this slide i would like to talk about how we are dealing with the situation in the u.s which i would summarize as follows We have 8.6 GW of operational onshore wind, solar, and battery storage all unaffected by new legislation or proposed measures. we have 8.6 gw of operational onshore wind solar and battery storage all unaffected by new legislation or proposed measures We have 2.4 GW under construction, of which two-thirds in batteries which are largely protected against tariff. we have 2.4 gw under construction of which two-thirds in batteries which are largely protected against tariff As we were very quick to move to de-risk and safe harbor for projects under development yet to reach FID, we have more visibility with the OBB bill having been signed into law with residual uncertainty on tariffs and precise definition of safe harbor. as we were very quick to move to de-risk and safe harbor for projects under development yet to reach fid we have more visibility with the obb bill having been signed into law with residual uncertainty on tariffs and precise definition of safe harbor In this context we are ready for FID on three projects with combined capacity of over 1 GW providing adequate risk profiles with tailored safeguards that reflect well the context. in this context we are ready for fid on three projects with combined capacity of over 1 gw providing adequate risk profiles with tailored safeguards that reflect well the context I am convinced that onshore renewables enjoy an attractive future in much of the U.S. with, for instance, runaway low demand in Texas forecast by the grid regulator to rise from 85 GW this year to 218 GW by 2031. Renewables backed up by batteries have every prospect of being part of the solution to meet this demand growth. If I'm wrong about this, we have built a truly global business in renewables and battery storage that adds optionality and cuts the need to be tied to any one country. As I will illustrate in the next slide, which shows that we continue our inexorable rollout of our renewables and battery storage platform with 1.9 GW of additions over the first half to almost 53 GW of capacity. I am convinced that onshore renewables enjoy an attractive future in much of the U.S. with, for instance, runaway low demand in Texas forecast by the grid regulator to rise from 85 GW this year to 218 GW by 2031. i am convinced that onshore renewables enjoy an attractive future in much of the u.s with for instance runaway low demand in texas forecast by the grid regulator to rise from 85 gw this year to 218 gw by 2031 Renewables backed up by batteries have every prospect of being part of the solution to meet this demand growth. renewables backed up by batteries have every prospect of being part of the solution to meet this demand growth If I'm wrong about this, we have built a truly global business in renewables and battery storage that adds optionality and cuts the need to be tied to any one country. if i'm wrong about this we have built a truly global business in renewables and battery storage that adds optionality and cuts the need to be tied to any one country As I will illustrate in the next slide, which shows that we continue our inexorable rollout of our renewables and battery storage platform with 1.9 GW of additions over the first half to almost 53 GW of capacity. as i will illustrate in the next slide which shows that we continue our inexorable rollout of our renewables and battery storage platform with 1.9 gw of additions over the first half to almost 53 gw of capacity What I really want to stress here is our growing scale, first in terms of the sheer extent of what we are building with consistently close to 8 GW, close to 100 projects under construction, and second the nature of the projects completed, under construction, R1, and the location of these projects. We are capable of building the biggest ticket solar and onshore wind farms in all of our key regions, which is a testament to our efficiency of execution, purchasing, long-standing presence, and stakeholder relationships in these countries that we have built over many years. As I mentioned quickly, we delivered Africa's largest wind farm in Egypt ahead of schedule by four months. What I really want to stress here is our growing scale, first in terms of the sheer extent of what we are building with consistently close to 8 GW, close to 100 projects under construction, and second the nature of the projects completed, under construction, R1, and the location of these projects. what i really want to stress here is our growing scale first in terms of the sheer extent of what we are building with consistently close to 8 gw close to 100 projects under construction and second the nature of the projects completed under construction r1 and the location of these projects We are capable of building the biggest ticket solar and onshore wind farms in all of our key regions, which is a testament to our efficiency of execution, purchasing, long-standing presence, and stakeholder relationships in these countries that we have built over many years. we are capable of building the biggest ticket solar and onshore wind farms in all of our key regions which is a testament to our efficiency of execution purchasing long-standing presence and stakeholder relationships in these countries that we have built over many years As I mentioned quickly, we delivered Africa's largest wind farm in Egypt ahead of schedule by four months. as i mentioned quickly we delivered africa's largest wind farm in egypt ahead of schedule by four months In the UAE, we are in final negotiations of a PPA for a 1.5 GW solar project that we have been awarded, as well as an ongoing bid for a 1.4 GW OCGT project. Finally, in offshore, we recently generated first power at our Ile Dieu Noir Moutier offshore wind farm in France, and we expect to have it fully on stream by the end of this year. You can see that our global pipeline in renewables and battery storage is now 118 GW, well split between the regions, but with the AMEA region more than doubling since the end of 2022 as countries such as India and the UAE embrace energy transition as a response to rising demand. In the UAE, we are in final negotiations of a PPA for a 1.5 GW solar project that we have been awarded, as well as an ongoing bid for a 1.4 GW OCGT project. in the uae we are in final negotiations of a ppa for a 1.5 gw solar project that we have been awarded as well as an ongoing bid for a 1.4 gw ocgt project Finally, in offshore, we recently generated first power at our Ile Dieu Noir Moutier offshore wind farm in France, and we expect to have it fully on stream by the end of this year. finally in offshore we recently generated first power at our ile dieu noir moutier offshore wind farm in france and we expect to have it fully on stream by the end of this year You can see that our global pipeline in renewables and battery storage is now 118 GW, well split between the regions, but with the AMEA region more than doubling since the end of 2022 as countries such as India and the UAE embrace energy transition as a response to rising demand. you can see that our global pipeline in renewables and battery storage is now 118 gw well split between the regions but with the amea region more than doubling since the end of 2022 as countries such as india and the uae embrace energy transition as a response to rising demand This all sounds really impressive, of course it doesn't work unless we find the projects that match or exceed our IRR minus WACC spread criteria, which is at least 150basis points-250 basis points, that we deliver the project in timely fashion and on budget, and that we use our energy management expertise to maximize the revenue potential of the project. Just to finish on this slide, a word on the volume of PPA signed: 1.2 GW over the first half. Given the U.S. project that I already mentioned and are ready for FID, we are optimistic of a strong H2 despite appetite for PPAs in Europe being somehow subdued. This all sounds really impressive, of course it doesn't work unless we find the projects that match or exceed our IRR minus WACC spread criteria, which is at least 150basis points- 250 basis points, that we deliver the project in timely fashion and on budget, and that we use our energy management expertise to maximize the revenue potential of the project. this all sounds really impressive of course it doesn't work unless we find the projects that match or exceed our irr minus wacc spread criteria which is at least 150basis points- 250 basis points that we deliver the project in timely fashion and on budget and that we use our energy management expertise to maximize the revenue potential of the project Just to finish on this slide, a word on the volume of PPA signed: 1.2 GW over the first half. just to finish on this slide a word on the volume of ppa signed 1.2 gw over the first half Given the U.S. project that I already mentioned and are ready for FID, we are optimistic of a strong H2 despite appetite for PPAs in Europe being somehow subdued. given the u.s project that i already mentioned and are ready for fid we are optimistic of a strong h2 despite appetite for ppas in europe being somehow subdued In the next slide, I am pleased to announce good progress in the cleaning of our portfolio aimed at improving our regional and strategic focus, exiting core, recentering our local energy infrastructure business onto its five European core markets as well as Singapore and Tabriz. We are on track to deliver EUR 4 billion of debt reduction via divestments for the period 2025-2027, and as our market normalizes, we are doubling down on our efforts to optimize not only our business portfolio but also on our performance. Running parallel to what we're doing on the portfolio is indeed a big effort to bolster our performance, with an EBIT boost of at least EUR 1 billion by 2027 versus 2024. In other words, almost double the pace of previous years. I am determined to instill a culture of performance throughout ENGIE via numerous measures that have been identified. In the next slide, I am pleased to announce good progress in the cleaning of our portfolio aimed at improving our regional and strategic focus, exiting core, recentering our local energy infrastructure business onto its five European core markets as well as Singapore and Tabriz. in the next slide i am pleased to announce good progress in the cleaning of our portfolio aimed at improving our regional and strategic focus exiting core recentering our local energy infrastructure business onto its five european core markets as well as singapore and tabriz We are on track to deliver EUR 4 billion of debt reduction via divestments for the period 2025- 2027, and as our market normalizes, we are doubling down on our efforts to optimize not only our business portfolio but also on our performance. we are on track to deliver eur 4 billion of debt reduction via divestments for the period 2025- 2027 and as our market normalizes we are doubling down on our efforts to optimize not only our business portfolio but also on our performance Running parallel to what we're doing on the portfolio is indeed a big effort to bolster our performance, with an EBIT boost of at least EUR 1 billion by 2027 versus 2024. running parallel to what we're doing on the portfolio is indeed a big effort to bolster our performance with an ebit boost of at least eur 1 billion by 2027 versus 2024 In other words, almost double the pace of previous years. in other words almost double the pace of previous years I am determined to instill a culture of performance throughout ENGIE via numerous measures that have been identified. i am determined to instill a culture of performance throughout engie via numerous measures that have been identified If we want to be the best energy transition utility, we must make the most of our integrated and flexible asset mix with a constant striving for efficiency and affordability. We're making good progress with a EUR 246 million impact in the first half, on track for a EUR 300-EUR 500 million target for the full year. Almost half of the improvement comes from elimination of loss-making sources, in particular EVBox, together with operational excellence initiatives in areas such as networks, flex power, PPA renegotiations, cleaning our local energy infrastructure contract portfolio in France. What we expect to accelerate as ongoing measures take hold is what we term culture and competitiveness, where we are seeing initial contributions from actions such as travel, events, and consulting, as well as efficiency in IT and digital headcount efficiency measures that we expect to kick in from next year. If we want to be the best energy transition utility, we must make the most of our integrated and flexible asset mix with a constant striving for efficiency and affordability. if we want to be the best energy transition utility we must make the most of our integrated and flexible asset mix with a constant striving for efficiency and affordability We're making good progress with a EUR 246 million impact in the first half, on track for a EUR 300- EUR 500 million target for the full year. we're making good progress with a eur 246 million impact in the first half on track for a eur 300- eur 500 million target for the full year Almost half of the improvement comes from elimination of loss-making sources, in particular EVBox, together with operational excellence initiatives in areas such as networks, flex power, PPA renegotiations, cleaning our local energy infrastructure contract portfolio in France. almost half of the improvement comes from elimination of loss-making sources in particular evbox together with operational excellence initiatives in areas such as networks flex power ppa renegotiations cleaning our local energy infrastructure contract portfolio in france What we expect to accelerate as ongoing measures take hold is what we term culture and competitiveness, where we are seeing initial contributions from actions such as travel, events, and consulting, as well as efficiency in IT and digital headcount efficiency measures that we expect to kick in from next year. what we expect to accelerate as ongoing measures take hold is what we term culture and competitiveness where we are seeing initial contributions from actions such as travel events and consulting as well as efficiency in it and digital headcount efficiency measures that we expect to kick in from next year Finally, in Belgian nuclear, focus has switched to the first stage extension work of the two reactors that will belong to the joint venture between us and the Belgian government. Works on the first reactor, Tihange 3, were completed successfully. The plant was reconnected to the grid slightly ahead of schedule. Now works on the second unit, Doel 4, have been underway since the start of July and should be completed by the start of November, at which point the remaining sum of around EUR 3.6 billion will be paid. Gradually in H2 our exposure to merchants will fade away to be replaced by a flex LTO structure for Tihange 3 and Doel 4 with output at a quasi regulated price. Finally, in Belgian nuclear, focus has switched to the first stage extension work of the two reactors that will belong to the joint venture between us and the Belgian government. finally in belgian nuclear focus has switched to the first stage extension work of the two reactors that will belong to the joint venture between us and the belgian government Works on the first reactor, Tihange 3, were completed successfully. works on the first reactor tihange 3 were completed successfully The plant was reconnected to the grid slightly ahead of schedule. the plant was reconnected to the grid slightly ahead of schedule Now works on the second unit, Doel 4, have been underway since the start of July and should be completed by the start of November, at which point the remaining sum of around EUR 3.6 billion will be paid. now works on the second unit doel 4 have been underway since the start of july and should be completed by the start of november at which point the remaining sum of around eur 3.6 billion will be paid Gradually in H2 our exposure to merchants will fade away to be replaced by a flex LTO structure for Tihange 3 and Doel 4 with output at a quasi regulated price. gradually in h2 our exposure to merchants will fade away to be replaced by a flex lto structure for tihange 3 and doel 4 with output at a quasi regulated price At that point it is a new chapter that kicks off for ENGIE in Belgian nuclear, with our earnings set to be relatively modest but very importantly de-risked and stable, with our balance sheet free from the millstone of nuclear waste liabilities. With that I will pass over to Pierre-François. At that point it is a new chapter that kicks off for ENGIE in Belgian nuclear, with our earnings set to be relatively modest but very importantly de-risked and stable, with our balance sheet free from the millstone of nuclear waste liabilities. at that point it is a new chapter that kicks off for engie in belgian nuclear with our earnings set to be relatively modest but very importantly de-risked and stable with our balance sheet free from the millstone of nuclear waste liabilities With that I will pass over to Pierre-François. with that i will pass over to pierre-françois

Speaker 2: Thank you very much Catherine and good morning all. Let's go through our first half 2025 results which reflect a continued solid performance in what are the last quarters of normalization across our markets. After a very strong Q1, Q2 is coming exactly as expected. EBITDA and EBIT excluding nuke stand at EUR 7.4 billion and EUR 5.1 billion respectively, both slightly down compared to last year, reflecting a high comparison base and some foreign exchange headwinds. Organically, the decline is contained at -3% for EBITDA and -6% for EBIT. After more than two years of continued decline in energy prices, we continue to generate strong cash flows with CFFO at EUR 8.4 billion, confirming the healthy fundamentals of our operation and the high quality of earnings. Thank you very much Catherine and good morning all. thank you very much catherine and good morning all Let's go through our first half 2025 results which reflect a continued solid performance in what are the last quarters of normalization across our markets. let's go through our first half 2025 results which reflect a continued solid performance in what are the last quarters of normalization across our markets After a very strong Q1, Q2 is coming exactly as expected. after a very strong q1 q2 is coming exactly as expected EBITDA and EBIT excluding nuke stand at EUR 7.4 billion and EUR 5.1 billion respectively, both slightly down compared to last year, reflecting a high comparison base and some foreign exchange headwinds. ebitda and ebit excluding nuke stand at eur 7.4 billion and eur 5.1 billion respectively both slightly down compared to last year reflecting a high comparison base and some foreign exchange headwinds Organically, the decline is contained at -3% for EBITDA and -6% for EBIT. organically the decline is contained at -3% for ebitda and -6% for ebit After more than two years of continued decline in energy prices, we continue to generate strong cash flows with CFFO at EUR 8.4 billion, confirming the healthy fundamentals of our operation and the high quality of earnings. after more than two years of continued decline in energy prices we continue to generate strong cash flows with cffo at eur 8.4 billion confirming the healthy fundamentals of our operation and the high quality of earnings Net financial debt stands at EUR 35.7 billion, up EUR 2.4 billion due to the EUR 2.6 billion payment in cash related to the closing of the Belgian nuclear agreement in Q1 that Catherine was just mentioning. Economic net debt is down by EUR 1.1 billion and our credit ratios remain stable at 3.1%, well below our 4% target. We are getting closer to the awaited inflection point for EBIT excluding nuke, and we anticipate year-on-year growth in the coming quarters, namely in Q4. In this context, we are confirming of course our 2025 guidance. Let's now turn to the EBITDA edition in more detail. We closed H1 2025 with EBIT excluding nuke EUR 5.1 billion, down organically by EUR 3.49 million compared to last year. This evolution reflects the mix of external headwinds and internal drivers, starting with four negative impacts all expected. Net financial debt stands at EUR 35.7 billion, up EUR 2.4 billion due to the EUR 2.6 billion payment in cash related to the closing of the Belgian nuclear agreement in Q1 that Catherine was just mentioning. net financial debt stands at eur 35.7 billion up eur 2.4 billion due to the eur 2.6 billion payment in cash related to the closing of the belgian nuclear agreement in q1 that catherine was just mentioning Economic net debt is down by EUR 1.1 billion and our credit ratios remain stable at 3.1%, well below our 4% target. economic net debt is down by eur 1.1 billion and our credit ratios remain stable at 3.1% well below our 4% target We are getting closer to the awaited inflection point for EBIT excluding nuke, and we anticipate year-on-year growth in the coming quarters, namely in Q4. we are getting closer to the awaited inflection point for ebit excluding nuke and we anticipate year-on-year growth in the coming quarters namely in q4 In this context, we are confirming of course our 2025 guidance. in this context we are confirming of course our 2025 guidance Let's now turn to the EBITDA edition in more detail. let's now turn to the ebitda edition in more detail We closed H1 2025 with EBIT excluding nuke EUR 5.1 billion, down organically by EUR 3.49 million compared to last year. we closed h1 2025 with ebit excluding nuke eur 5.1 billion down organically by eur 3.49 million compared to last year This evolution reflects the mix of external headwinds and internal drivers, starting with four negative impacts all expected. this evolution reflects the mix of external headwinds and internal drivers starting with four negative impacts all expected First, forex at a -EUR 98 million impact mainly due to the depreciation of the Brazilian real. We expect the BRL impact to fade a bit in H2 but the effect of the U.S. dollar will be more visible in the second half. Secondly, scope effects amount to -EUR 80 million, primarily driven by the disposal of Senoco in Singapore and UCH in Pakistan and the deconsolidation of CEFI in Morocco. Thirdly, price and volatility contributed to -EUR 258 million, mostly within our supply and energy management activities. This reflects normalizing market conditions, an increased transportation cost in energy management and a high comparison base in B2B and B2C which included positive price-related, non-repeat and timing items. Last year, those headwinds were significantly mitigated by tariff increases in our network activities. Fourthly, volumes were down -EUR 392 million, largely due to lower hydro volumes following exceptionally high levels in H1 2024. First, forex at a -EUR 98 million impact mainly due to the depreciation of the Brazilian real. first forex at a -eur 98 million impact mainly due to the depreciation of the brazilian real We expect the BRL impact to fade a bit in H2 but the effect of the U.S. dollar will be more visible in the second half. we expect the brl impact to fade a bit in h2 but the effect of the u.s dollar will be more visible in the second half Secondly, scope effects amount to -EUR 80 million, primarily driven by the disposal of Senoco in Singapore and UCH in Pakistan and the deconsolidation of CEFI in Morocco. secondly scope effects amount to -eur 80 million primarily driven by the disposal of senoco in singapore and uch in pakistan and the deconsolidation of cefi in morocco Thirdly, price and volatility contributed to -EUR 258 million, mostly within our supply and energy management activities. thirdly price and volatility contributed to -eur 258 million mostly within our supply and energy management activities This reflects normalizing market conditions, an increased transportation cost in energy management and a high comparison base in B2B and B2C which included positive price-related, non-repeat and timing items. this reflects normalizing market conditions an increased transportation cost in energy management and a high comparison base in b2b and b2c which included positive price-related non-repeat and timing items Last year, those headwinds were significantly mitigated by tariff increases in our network activities. last year those headwinds were significantly mitigated by tariff increases in our network activities Fourthly, volumes were down -EUR 392 million, largely due to lower hydro volumes following exceptionally high levels in H1 2024. fourthly volumes were down -eur 392 million largely due to lower hydro volumes following exceptionally high levels in h1 2024 On the positive side, two long-term trends relentlessly supporting earnings growth commissioning added to EUR 21 million. This includes around EUR 150 million for renewables and base and EUR 70 million for infra, highlighting the relevance of our development strategy and our very disciplined execution. Performance contributed to EUR 246 million, reflecting operational improvements across all our segments, and I will provide more details later on. Other impacts amount to -EUR 166 million, and it includes notably the cost of our employee shareholding plan for a bit more than EUR 50 million along with various one-offs. Finally, nuclear EBIT stands at EUR 500 million, down to EUR 67 million with lower capture prices, the shutdown of DOL1 in February, and the conformity outage of Tihange 3 in the second quarter. On the positive side, two long-term trends relentlessly supporting earnings growth commissioning added to EUR 21 million. on the positive side two long-term trends relentlessly supporting earnings growth commissioning added to eur 21 million This includes around EUR 150 million for renewables and base and EUR 70 million for infra, highlighting the relevance of our development strategy and our very disciplined execution. this includes around eur 150 million for renewables and base and eur 70 million for infra highlighting the relevance of our development strategy and our very disciplined execution Performance contributed to EUR 246 million, reflecting operational improvements across all our segments, and I will provide more details later on. performance contributed to eur 246 million reflecting operational improvements across all our segments and i will provide more details later on Other impacts amount to -EUR 166 million, and it includes notably the cost of our employee shareholding plan for a bit more than EUR 50 million along with various one-offs. other impacts amount to -eur 166 million and it includes notably the cost of our employee shareholding plan for a bit more than eur 50 million along with various one-offs Finally, nuclear EBIT stands at EUR 500 million, down to EUR 67 million with lower capture prices, the shutdown of DOL1 in February, and the conformity outage of Tihange 3 in the second quarter. finally nuclear ebit stands at eur 500 million down to eur 67 million with lower capture prices the shutdown of dol1 in february and the conformity outage of tihange 3 in the second quarter Overall, while market normalization and lower volumes weigh on EBIT, our investments and performance initiatives are delivering at pace and secure further our trajectory for the year and I should say beyond. Let's start the review of our reporting segment performance with renewables and flex power. EBIT was impacted by scope and FX, minus EUR 111 million, split almost evenly between both Forex and scope. Organically, EBIT was down -9%, of which -EUR 104 million on renewables and base and -EUR 91 million on gas generation. The decline on renewables and base is driven by lower volumes, which had a -EUR 340 million impact, reflecting a return to more normal hydrological conditions in Europe after an exceptionally strong H1 2024. This was partly offset by high level of commissioning, plus EUR 155 million, and by lower hydro taxes, plus EUR 66 million. Overall, while market normalization and lower volumes weigh on EBIT, our investments and performance initiatives are delivering at pace and secure further our trajectory for the year and I should say beyond. overall while market normalization and lower volumes weigh on ebit our investments and performance initiatives are delivering at pace and secure further our trajectory for the year and i should say beyond Let's start the review of our reporting segment performance with renewables and flex power. let's start the review of our reporting segment performance with renewables and flex power EBIT was impacted by scope and FX, minus EUR 111 million, split almost evenly between both Forex and scope. ebit was impacted by scope and fx minus eur 111 million split almost evenly between both forex and scope Organically, EBIT was down -9%, of which -EUR 104 million on renewables and base and -EUR 91 million on gas generation. organically ebit was down -9% of which -eur 104 million on renewables and base and -eur 91 million on gas generation The decline on renewables and base is driven by lower volumes, which had a -EUR 340 million impact, reflecting a return to more normal hydrological conditions in Europe after an exceptionally strong H1 2024. the decline on renewables and base is driven by lower volumes which had a -eur 340 million impact reflecting a return to more normal hydrological conditions in europe after an exceptionally strong h1 2024 This was partly offset by high level of commissioning, plus EUR 155 million, and by lower hydro taxes, plus EUR 66 million. this was partly offset by high level of commissioning plus eur 155 million and by lower hydro taxes plus eur 66 million We added 1.9 GW of capacity over the period, and we achieved prices for hydro in France basically stable at EUR 110 per megawatt. Turning to gas generation, EBIT decreased organically by EUR 91 million. The main driver was a -EUR 243 million impact from lower captured spark spreads in Europe, reflecting a hedging strategy under normalizing market conditions. However, this was partially offset by the absence of intra-marginal taxes in H1 2025, which had a positive EUR 108 million effect, and also by a positive one-off in Chile and a favorable price effect in Australia. While market conditions were less supportive in Europe, our balanced portfolio, our investments, and disciplined operations helped mitigate the impact with a compelling H1, and we continue to build momentum in our growth platforms. Let's move to infrastructures, which delivered an outstanding performance in the first half with +43% organic growth. We added 1.9 GW of capacity over the period, and we achieved prices for hydro in France basically stable at EUR 110 per megawatt. we added 1.9 gw of capacity over the period and we achieved prices for hydro in france basically stable at eur 110 per megawatt Turning to gas generation, EBIT decreased organically by EUR 91 million. turning to gas generation ebit decreased organically by eur 91 million The main driver was a -EUR 243 million impact from lower captured spark spreads in Europe, reflecting a hedging strategy under normalizing market conditions. the main driver was a -eur 243 million impact from lower captured spark spreads in europe reflecting a hedging strategy under normalizing market conditions However, this was partially offset by the absence of intra-marginal taxes in H1 2025, which had a positive EUR 108 million effect, and also by a positive one-off in Chile and a favorable price effect in Australia. however this was partially offset by the absence of intra-marginal taxes in h1 2025 which had a positive eur 108 million effect and also by a positive one-off in chile and a favorable price effect in australia While market conditions were less supportive in Europe, our balanced portfolio, our investments, and disciplined operations helped mitigate the impact with a compelling H1, and we continue to build momentum in our growth platforms. while market conditions were less supportive in europe our balanced portfolio our investments and disciplined operations helped mitigate the impact with a compelling h1 and we continue to build momentum in our growth platforms Let's move to infrastructures, which delivered an outstanding performance in the first half with +43% organic growth. let's move to infrastructures which delivered an outstanding performance in the first half with +43% organic growth Scope on FX had a slightly negative impact with the depreciation of the BRL network. EBIT increased by EUR 33 million organically, supported by new tariffs in both Europe and LATAM. This was partially offset by lower spreads in gas storage in the U.K. and Germany, reflecting again market normalization after a persistently strong 2024. Importantly, reinvestment efforts are paying off with a EUR 52 million contribution to EBITDA from newly commissioned assets. Connected biomethane capacity in France increased to 13.8 TWh per year at the end of June 25th. Looking at local energy infrastructures, performance improvements helped mitigate the impact of lower spreads on generation assets, notably in France, which drives EBIT margin down compared to last year. All in all, infrastructure is now back in being a strong and stable contributor to the group result, with further growth driven by both regulatory frameworks and a disciplined investment strategy. Scope on FX had a slightly negative impact with the depreciation of the BRL network. scope on fx had a slightly negative impact with the depreciation of the brl network EBIT increased by EUR 33 million organically, supported by new tariffs in both Europe and LATAM. ebit increased by eur 33 million organically supported by new tariffs in both europe and latam This was partially offset by lower spreads in gas storage in the U.K. and Germany, reflecting again market normalization after a persistently strong 2024. this was partially offset by lower spreads in gas storage in the u.k and germany reflecting again market normalization after a persistently strong 2024 Importantly, reinvestment efforts are paying off with a EUR 52 million contribution to EBITDA from newly commissioned assets. importantly reinvestment efforts are paying off with a eur 52 million contribution to ebitda from newly commissioned assets Connected biomethane capacity in France increased to 13.8 TWh per year at the end of June 25th. connected biomethane capacity in france increased to 13.8 twh per year at the end of june 25th Looking at local energy infrastructures, performance improvements helped mitigate the impact of lower spreads on generation assets, notably in France, which drives EBIT margin down compared to last year. looking at local energy infrastructures performance improvements helped mitigate the impact of lower spreads on generation assets notably in france which drives ebit margin down compared to last year All in all, infrastructure is now back in being a strong and stable contributor to the group result, with further growth driven by both regulatory frameworks and a disciplined investment strategy. all in all infrastructure is now back in being a strong and stable contributor to the group result with further growth driven by both regulatory frameworks and a disciplined investment strategy Moving on to CEM supply and energy management, as anticipated, EBIT for the segment was impacted by the market normalization resulting in a -32% organic decrease compared to H1 2024. B2C activities are in line with expectations. The decrease versus last year is largely due to a high comparison base, which included then a positive non-repeat and timing items in 2024. That said, we maintained sound commercial margins in H1 2025 and benefited from performance actions which helped cushion the impact and are supporting a full year ambition. Close to half a billion in B2B EBIT was down to EUR 220 million, mainly due to a reduction in seasonality spreads which led to a lower positive timing effect. This effect has no impact on full year as it reverses over H2. Moving on to CEM supply and energy management, as anticipated, EBIT for the segment was impacted by the market normalization resulting in a -32% organic decrease compared to H1 2024. moving on to cem supply and energy management as anticipated ebit for the segment was impacted by the market normalization resulting in a -32% organic decrease compared to h1 2024 B2C activities are in line with expectations. b2c activities are in line with expectations The decrease versus last year is largely due to a high comparison base, which included then a positive non-repeat and timing items in 2024. the decrease versus last year is largely due to a high comparison base which included then a positive non-repeat and timing items in 2024 That said, we maintained sound commercial margins in H1 2025 and benefited from performance actions which helped cushion the impact and are supporting a full year ambition. that said we maintained sound commercial margins in h1 2025 and benefited from performance actions which helped cushion the impact and are supporting a full year ambition Close to half a billion in B2B EBIT was down to EUR 220 million, mainly due to a reduction in seasonality spreads which led to a lower positive timing effect. close to half a billion in b2b ebit was down to eur 220 million mainly due to a reduction in seasonality spreads which led to a lower positive timing effect This effect has no impact on full year as it reverses over H2. this effect has no impact on full year as it reverses over h2 Moreover, we are in a good commercial momentum with a Q2 stable compared to last year, excluding a positive one-off that should translate into a stronger H2 than previous year. Energy management was more significantly affected by market normalization, leading to first lower market reserve reversals. That was something we commented already in Q1, to a negative one-off related to the revaluation of loss-making gas transportation contracts following tariff increases in Austria and in the Netherlands, and three, softer activity in Q2 due to geopolitical and economic uncertainty. Volatility is there, but it is driven by unpredictable geopolitics. Therefore, we remain cautious with the hedging strategies in Q1 2025, and we decided to reduce volumes, which led to lower margins. Overall, same performance is on track and we expect former GEMS B2B plus energy management to land the year close to EUR 2 billion EBIT. Moreover, we are in a good commercial momentum with a Q2 stable compared to last year, excluding a positive one-off that should translate into a stronger H2 than previous year. moreover we are in a good commercial momentum with a q2 stable compared to last year excluding a positive one-off that should translate into a stronger h2 than previous year Energy management was more significantly affected by market normalization, leading to first lower market reserve reversals. energy management was more significantly affected by market normalization leading to first lower market reserve reversals That was something we commented already in Q1, to a negative one-off related to the revaluation of loss-making gas transportation contracts following tariff increases in Austria and in the Netherlands, and three, softer activity in Q2 due to geopolitical and economic uncertainty. that was something we commented already in q1 to a negative one-off related to the revaluation of loss-making gas transportation contracts following tariff increases in austria and in the netherlands and three softer activity in q2 due to geopolitical and economic uncertainty Volatility is there, but it is driven by unpredictable geopolitics. volatility is there but it is driven by unpredictable geopolitics Therefore, we remain cautious with the hedging strategies in Q1 2025, and we decided to reduce volumes, which led to lower margins. therefore we remain cautious with the hedging strategies in q1 2025 and we decided to reduce volumes which led to lower margins Overall, same performance is on track and we expect former GEMS B2B plus energy management to land the year close to EUR 2 billion EBIT. overall same performance is on track and we expect former gems b2b plus energy management to land the year close to eur 2 billion ebit A few words on our nuclear activities. As expected, EBIT came in at EUR 503 million, down from EUR 770 million in H1 2024, reflecting a 35% year-on-year decrease. This evolution is explained by price, by volumes, and higher depreciation. First, we recorded lower capture price from EUR 104 to EUR 97 per megawatt hour, which is a 6% drop. This was partly offset by the absence of the infra-marginal tax in France in H1 2025 and also a lower G2 tax in Belgium, which helped cushion the decline. Net year-on-year impact is a negative EUR 149 million on EBIT. Second, volumes went down from 16 to 13.8 terawatt hours with a phase out of DOL1 in February and a drop in availability in Belgium from 88% to 81%, driven by the conformity outage of tranche 3 in Q2. A few words on our nuclear activities. a few words on our nuclear activities As expected, EBIT came in at EUR 503 million, down from EUR 770 million in H1 2024, reflecting a 35% year-on-year decrease. as expected ebit came in at eur 503 million down from eur 770 million in h1 2024 reflecting a 35% year-on-year decrease This evolution is explained by price, by volumes, and higher depreciation. this evolution is explained by price by volumes and higher depreciation First, we recorded lower capture price from EUR 104 to EUR 97 per megawatt hour, which is a 6% drop. first we recorded lower capture price from eur 104 to eur 97 per megawatt hour which is a 6% drop This was partly offset by the absence of the infra-marginal tax in France in H1 2025 and also a lower G2 tax in Belgium, which helped cushion the decline. this was partly offset by the absence of the infra-marginal tax in france in h1 2025 and also a lower g2 tax in belgium which helped cushion the decline Net year-on-year impact is a negative EUR 149 million on EBIT. net year-on-year impact is a negative eur 149 million on ebit Second, volumes went down from 16 to 13.8 terawatt hours with a phase out of DOL1 in February and a drop in availability in Belgium from 88% to 81%, driven by the conformity outage of tranche 3 in Q2. second volumes went down from 16 to 13.8 terawatt hours with a phase out of dol1 in february and a drop in availability in belgium from 88% to 81% driven by the conformity outage of tranche 3 in q2 It translated into a minus EUR 71 million near impact on EBIT, and then depreciation and other effect had a -EUR 47 million impact due to higher depreciation on investments in Belgian assets which were commissioned in 2024-2025, and these are being depreciated now over a very short remaining lifetime of the asset. While the year-on-year comparison is negative, the performance is in line with expectation and we continue to manage a nuclear fleet with discipline as we transition through the end-of-life phase of several units. Let's now turn to our performance program. In the first half of 2025, performance initiatives contributed EUR 246 million to EBIT, putting us firmly on track to deliver full year target by year end. As you can see, all three performance drivers are now contributing. Operational excellence delivered EUR 96 million. This includes tangible actions such as PPA renegotiation, asset and contract portfolio optimization. It translated into a minus EUR 71 million near impact on EBIT, and then depreciation and other effect had a -EUR 47 million impact due to higher depreciation on investments in Belgian assets which were commissioned in 2024-2025, and these are being depreciated now over a very short remaining lifetime of the asset. it translated into a minus eur 71 million near impact on ebit and then depreciation and other effect had a -eur 47 million impact due to higher depreciation on investments in belgian assets which were commissioned in 2024-2025 and these are being depreciated now over a very short remaining lifetime of the asset While the year-on-year comparison is negative, the performance is in line with expectation and we continue to manage a nuclear fleet with discipline as we transition through the end-of-life phase of several units. while the year-on-year comparison is negative the performance is in line with expectation and we continue to manage a nuclear fleet with discipline as we transition through the end-of-life phase of several units Let's now turn to our performance program. let's now turn to our performance program In the first half of 2025, performance initiatives contributed EUR 246 million to EBIT, putting us firmly on track to deliver full year target by year end. in the first half of 2025 performance initiatives contributed eur 246 million to ebit putting us firmly on track to deliver full year target by year end As you can see, all three performance drivers are now contributing. as you can see all three performance drivers are now contributing Operational excellence delivered EUR 96 million. operational excellence delivered eur 96 million This includes tangible actions such as PPA renegotiation, asset and contract portfolio optimization. this includes tangible actions such as ppa renegotiation asset and contract portfolio optimization Procurement efficiencies are not one-offs, they reflect a strong and sustainable momentum across the group and we have delivered that now for a few years. We also made our first gains on culture and competitiveness. Our new plan with EUR 38 million of EBIT contributions. Good example is ADI business which is leading the way by simplifying its structure such as removing a management layer in France. Expect this effort to continue in H2. On loss-making activities, we saw a EUR 112 million contribution driven by the closure of EV Box activities, but also the positive impact from performance action in the supply activities. While some one-off impacts in a few entities slightly weighed on the net result, we expect a stronger contribution in the second half. All in all, we are well on track to deliver our performance target, and we remain focused on embedding these improvements structurally across the organization. Procurement efficiencies are not one-offs, they reflect a strong and sustainable momentum across the group and we have delivered that now for a few years. procurement efficiencies are not one-offs they reflect a strong and sustainable momentum across the group and we have delivered that now for a few years We also made our first gains on culture and competitiveness. we also made our first gains on culture and competitiveness Our new plan with EUR 38 million of EBIT contributions. our new plan with eur 38 million of ebit contributions Good example is ADI business which is leading the way by simplifying its structure such as removing a management layer in France. good example is adi business which is leading the way by simplifying its structure such as removing a management layer in france Expect this effort to continue in H2. expect this effort to continue in h2 On loss-making activities, we saw a EUR 112 million contribution driven by the closure of EV Box activities, but also the positive impact from performance action in the supply activities. on loss-making activities we saw a eur 112 million contribution driven by the closure of ev box activities but also the positive impact from performance action in the supply activities While some one-off impacts in a few entities slightly weighed on the net result, we expect a stronger contribution in the second half. while some one-off impacts in a few entities slightly weighed on the net result we expect a stronger contribution in the second half All in all, we are well on track to deliver our performance target, and we remain focused on embedding these improvements structurally across the organization. all in all we are well on track to deliver our performance target and we remain focused on embedding these improvements structurally across the organization Let's take a look at the main items driving net income. EBIT we discussed. Net financial expenses is stable at $1 billion as lower average cost of gross debt was offset by lower cash remuneration resulting from the decrease in the short-term rate. Recurring income tax decreased slightly to $1.1 billion with an effective tax rate at 25.8%, which notably includes the special tax in France. As a result, net recurring income group share stands at $3.1 billion compared to $3.8 billion last year. The reported net income group share amounts to $2.9 billion after accounting for non-recurring items, including minus $0.2 billion from mark-to-market on energy derivatives and minus $0.1 billion in restructuring costs. Let's look at the cash flows. CFFO reached $8.4 billion in H1, a high amount demonstrating the group's ability to generate cash flow on a sustainable basis. Let's take a look at the main items driving net income. let's take a look at the main items driving net income EBIT we discussed. ebit we discussed Net financial expenses is stable at $1 billion as lower average cost of gross debt was offset by lower cash remuneration resulting from the decrease in the short-term rate. net financial expenses is stable at $1 billion as lower average cost of gross debt was offset by lower cash remuneration resulting from the decrease in the short-term rate Recurring income tax decreased slightly to $1.1 billion with an effective tax rate at 25.8%, which notably includes the special tax in France. recurring income tax decreased slightly to $1.1 billion with an effective tax rate at 25.8% which notably includes the special tax in france As a result, net recurring income group share stands at $3.1 billion compared to $3.8 billion last year. as a result net recurring income group share stands at $3.1 billion compared to $3.8 billion last year The reported net income group share amounts to $2.9 billion after accounting for non-recurring items, including minus $0.2 billion from mark-to-market on energy derivatives and minus $0.1 billion in restructuring costs. the reported net income group share amounts to $2.9 billion after accounting for non-recurring items including minus $0.2 billion from mark-to-market on energy derivatives and minus $0.1 billion in restructuring costs Let's look at the cash flows. let's look at the cash flows CFFO reached $8.4 billion in H1, a high amount demonstrating the group's ability to generate cash flow on a sustainable basis. cffo reached $8.4 billion in h1 a high amount demonstrating the group's ability to generate cash flow on a sustainable basis Please remember that we do not have tailwind anymore from prices decrease in our working cap variation, which was still substantial in H1 last year. Operating cash flow remains strong despite normalizing market condition again, and the $0.3 billion negative year-on-year impact on variance in net working capital comes from margin calls, which are higher following the decrease in commodity prices. Taxes and interest paid were largely stable, as you can see. Not much to report in this item except for our confirmed ability to generate cash. Let's now move on. Net debt. Net financial debt increased from $33.2 billion to $35.7 billion due to the funding of a nuclear obligation in Q1. CapEx and dividends were largely covered by strong cash generation in H1. You may have noticed that our net gross CapEx were down compared to last year. Please remember that we do not have tailwind anymore from prices decrease in our working cap variation, which was still substantial in H1 last year. please remember that we do not have tailwind anymore from prices decrease in our working cap variation which was still substantial in h1 last year Operating cash flow remains strong despite normalizing market condition again, and the $0.3 billion negative year-on-year impact on variance in net working capital comes from margin calls, which are higher following the decrease in commodity prices. operating cash flow remains strong despite normalizing market condition again and the $0.3 billion negative year-on-year impact on variance in net working capital comes from margin calls which are higher following the decrease in commodity prices Taxes and interest paid were largely stable, as you can see. taxes and interest paid were largely stable as you can see Not much to report in this item except for our confirmed ability to generate cash. not much to report in this item except for our confirmed ability to generate cash Let's now move on. let's now move on Net debt. net debt Net financial debt increased from $33.2 billion to $35.7 billion due to the funding of a nuclear obligation in Q1. net financial debt increased from $33.2 billion to $35.7 billion due to the funding of a nuclear obligation in q1 CapEx and dividends were largely covered by strong cash generation in H1. capex and dividends were largely covered by strong cash generation in h1 You may have noticed that our net gross CapEx were down compared to last year. you may have noticed that our net gross capex were down compared to last year This is mainly due to timing of acquisitions and also higher sell-downs in the U.S. Economic net debt is down $1.1 billion to $46.8 billion, and our leverage ratios remain solid with net financial debt to EBITDA at 2.4%. Economic net debt to EBITDA stable at 3.1%, well below our 4% threshold. We are very pleased to see our credit ratios remain stable and well within target despite a significant payout made in Q1 as part of the closing of the Belgian nuclear agreement. To wrap up. We delivered a robust financial performance with a good start of the year. Q2 came in as expected, supported by strong cash generation. We confirmed our 2025 guidance with EBIT excluding Nuke in between EUR 8 billion and EUR 9 billion and net recurring income between EUR 4.4 billion and EUR 5 billion. We are confident in achieving these targets. It's a strong start to the year. This is mainly due to timing of acquisitions and also higher sell-downs in the U.S. this is mainly due to timing of acquisitions and also higher sell-downs in the u.s Economic net debt is down $1.1 billion to $46.8 billion, and our leverage ratios remain solid with net financial debt to EBITDA at 2.4%. economic net debt is down $1.1 billion to $46.8 billion and our leverage ratios remain solid with net financial debt to ebitda at 2.4% Economic net debt to EBITDA stable at 3.1%, well below our 4% threshold. economic net debt to ebitda stable at 3.1% well below our 4% threshold We are very pleased to see our credit ratios remain stable and well within target despite a significant payout made in Q1 as part of the closing of the Belgian nuclear agreement. we are very pleased to see our credit ratios remain stable and well within target despite a significant payout made in q1 as part of the closing of the belgian nuclear agreement To wrap up. to wrap up We delivered a robust financial performance with a good start of the year. we delivered a robust financial performance with a good start of the year Q2 came in as expected, supported by strong cash generation. q2 came in as expected supported by strong cash generation We confirmed our 2025 guidance with EBIT excluding Nuke in between EUR 8 billion and EUR 9 billion and net recurring income between EUR 4.4 billion and EUR 5 billion. we confirmed our 2025 guidance with ebit excluding nuke in between eur 8 billion and eur 9 billion and net recurring income between eur 4.4 billion and eur 5 billion We are confident in achieving these targets. we are confident in achieving these targets It's a strong start to the year. it's a strong start to the year Just keep in mind the expected FX headwinds ahead, particularly from the U.S. Dollar. We are a utility and our priority is not to upgrade or beat our guidance each quarter, but to deliver consistent, predictable, durable growth of earnings. On that note, we are now at an inflection point for EBIT excluding Nuke and we expect year-on-year growth to gently resume in the second half of the year, especially in Q4, leaving most of the consequences of the energy crisis of 2022 behind us. We are entering normalized quarters and going forward we expect momentum to build with the contribution of new investments and performance. This sets the stage for the confirmed growth trajectory in 2026-2027, which we remain very confident about. Without further ado, I hand over to Catherine for the conclusion. Just keep in mind the expected FX headwinds ahead, particularly from the U.S. just keep in mind the expected fx headwinds ahead particularly from the u.s Dollar. dollar We are a utility and our priority is not to upgrade or beat our guidance each quarter, but to deliver consistent, predictable, durable growth of earnings. we are a utility and our priority is not to upgrade or beat our guidance each quarter but to deliver consistent predictable durable growth of earnings On that note, we are now at an inflection point for EBIT excluding Nuke and we expect year-on-year growth to gently resume in the second half of the year, especially in Q4, leaving most of the consequences of the energy crisis of 2022 behind us. on that note we are now at an inflection point for ebit excluding nuke and we expect year-on-year growth to gently resume in the second half of the year especially in q4 leaving most of the consequences of the energy crisis of 2022 behind us We are entering normalized quarters and going forward we expect momentum to build with the contribution of new investments and performance. we are entering normalized quarters and going forward we expect momentum to build with the contribution of new investments and performance This sets the stage for the confirmed growth trajectory in 2026-2027, which we remain very confident about. Without further ado, I hand over to Catherine for the conclusion. this sets the stage for the confirmed growth trajectory in 2026-2027 which we remain very confident about. without further ado i hand over to catherine for the conclusion

Speaker 3: Thank you, Pierre-François. To conclude, we delivered indeed good results in what has been an unpredictable macro environment. Very importantly, and this has been truly a guiding principle for the whole management team at ENGIE for now a few years, we are very focused on delivery and execution. We are implementing the plan that we shared with you earlier this year. We are confident about our earnings guidance for 2025 and indeed looking forward to delivering on our growth strategy from next year onwards. Thank you for your attention and I am turning it back to Delphine for the Q&A. Thank you, Pierre-François. thank you pierre-françois To conclude, we delivered indeed good results in what has been an unpredictable macro environment. to conclude we delivered indeed good results in what has been an unpredictable macro environment Very importantly, and this has been truly a guiding principle for the whole management team at ENGIE for now a few years, we are very focused on delivery and execution. very importantly and this has been truly a guiding principle for the whole management team at engie for now a few years we are very focused on delivery and execution We are implementing the plan that we shared with you earlier this year. we are implementing the plan that we shared with you earlier this year We are confident about our earnings guidance for 2025 and indeed looking forward to delivering on our growth strategy from next year onwards. we are confident about our earnings guidance for 2025 and indeed looking forward to delivering on our growth strategy from next year onwards Thank you for your attention and I am turning it back to Delphine for the Q&A. thank you for your attention and i am turning it back to delphine for the q&a

Speaker 7: Thank you, Catherine. Operator, can you please open the lines. Thank you, Catherine. thank you catherine Operator, can you please open the lines. operator can you please open the lines To Q&A? To Q & A? to q & a This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on the touch-tone telephone. To remove yourself from the question queue, please press star N2. Please pick up the receiver when asking questions. Anyone who has a question may press star N1 at this time. First question is from Harry Wyburd, BNP Exane. This is the conference operator. this is the conference operator We will now begin the question and answer session. we will now begin the question and answer session Anyone who wishes to ask a question may press star N1 on the touch-tone telephone. anyone who wishes to ask a question may press star n1 on the touch-tone telephone To remove yourself from the question queue, please press star N2. to remove yourself from the question queue please press star n2 Please pick up the receiver when asking questions. please pick up the receiver when asking questions Anyone who has a question may press star N1 at this time. anyone who has a question may press star n1 at this time First question is from Harry Wyburd, BNP Exane. first question is from harry wyburd bnp exane

Speaker 10: Hi, morning everyone. Hi, Catherine. Hi, Pierre. Hi, morning everyone. hi morning everyone Hi, Catherine. hi catherine Hi, Pierre. hi pierre Francois. Francois. francois Two numbers focused questions for me please. Firstly, Catherine, I think in your opening remarks you mentioned that EBITx Nuclear in the second half is expected to be up versus last year. If I've done the maths right, that would be a floor, I think, of EUR 8.37 billion for the full year, which is obviously not far off your midpoint guidance of EUR 8.5 billion. Would it be fair to extrapolate that floor to being quite close to the EUR 4.7 billion midpoint for net income? That is, are you effectively saying that you can still achieve the net income midpoint? Given the number of one-offs and scenario effects in 1H, if we were to normalize the 1H 2025 net income to construct a base for 1H 2026, could you help us on what we will be adding or subtracting? What's the overall effect from one-offs and scenario in 1H this year? Two numbers focused questions for me please. two numbers focused questions for me please Firstly, Catherine, I think in your opening remarks you mentioned that EBITx Nuclear in the second half is expected to be up versus last year. firstly catherine i think in your opening remarks you mentioned that ebitx nuclear in the second half is expected to be up versus last year If I've done the maths right, that would be a floor, I think, of EUR 8.37 billion for the full year, which is obviously not far off your midpoint guidance of EUR 8.5 billion. if i've done the maths right that would be a floor i think of eur 8.37 billion for the full year which is obviously not far off your midpoint guidance of eur 8.5 billion Would it be fair to extrapolate that floor to being quite close to the EUR 4.7 billion midpoint for net income? would it be fair to extrapolate that floor to being quite close to the eur 4.7 billion midpoint for net income That is, are you effectively saying that you can still achieve the net income midpoint? that is are you effectively saying that you can still achieve the net income midpoint Given the number of one-offs and scenario effects in 1H, if we were to normalize the 1H 2025 net income to construct a base for 1H 2026, could you help us on what we will be adding or subtracting? given the number of one-offs and scenario effects in 1h if we were to normalize the 1h 2025 net income to construct a base for 1h 2026 could you help us on what we will be adding or subtracting What's the overall effect from one-offs and scenario in 1H this year? what's the overall effect from one-offs and scenario in 1h this year The second one is on the dividends. I think you've alluded in the first quarter call to an ambition to raise the dividend from floor in 2025 to start it growing a year earlier than earnings. I guess if I was to look through that, it gives you a bit of an incentive to make next year's earnings growth rather than this year. I'm interested to know, are there any levers you can pull to kind of move earnings into next year which should make it easier for you to raise the dividend given the payout ratio dynamics next year. Thank you. The second one is on the dividends. the second one is on the dividends I think you've alluded in the first quarter call to an ambition to raise the dividend from floor in 2025 to start it growing a year earlier than earnings. i think you've alluded in the first quarter call to an ambition to raise the dividend from floor in 2025 to start it growing a year earlier than earnings I guess if I was to look through that, it gives you a bit of an incentive to make next year's earnings growth rather than this year. i guess if i was to look through that it gives you a bit of an incentive to make next year's earnings growth rather than this year I'm interested to know, are there any levers you can pull to kind of move earnings into next year which should make it easier for you to raise the dividend given the payout ratio dynamics next year. i'm interested to know are there any levers you can pull to kind of move earnings into next year which should make it easier for you to raise the dividend given the payout ratio dynamics next year Thank you. thank you

Speaker 2: Thank you, Harry. Thank you, Harry. thank you harry

Speaker 3: Yeah, I'll maybe just talk a little bit about our dividend. Just a reminder, if you keep principles that we obviously reaffirmed our profile as a utility company, we understand the importance of dividend to our shareholders. We are also very attached, as you know, to the consistency in our dividend policy. Reminded you that back in February. We are also obviously listening to the market. We understand the appetite to have a gently growing dividend trajectory. We heard that. On the other hand, we have a dividend policy which is a proportion of our net recurring income, which we would stick to. Obviously, being a decision that will be taken with the board, it will be taken next year. It's really early to comment more than that, Harry. On the other hand, obviously we are listening and we understand the importance of trying to get to that trajectory. Yeah, I'll maybe just talk a little bit about our dividend. yeah i'll maybe just talk a little bit about our dividend Just a reminder, if you keep principles that we obviously reaffirmed our profile as a utility company, we understand the importance of dividend to our shareholders. just a reminder if you keep principles that we obviously reaffirmed our profile as a utility company we understand the importance of dividend to our shareholders We are also very attached, as you know, to the consistency in our dividend policy. we are also very attached as you know to the consistency in our dividend policy Reminded you that back in February. reminded you that back in february We are also obviously listening to the market. we are also obviously listening to the market We understand the appetite to have a gently growing dividend trajectory. we understand the appetite to have a gently growing dividend trajectory We heard that. we heard that On the other hand, we have a dividend policy which is a proportion of our net recurring income, which we would stick to. on the other hand we have a dividend policy which is a proportion of our net recurring income which we would stick to Obviously, being a decision that will be taken with the board, it will be taken next year. obviously being a decision that will be taken with the board it will be taken next year It's really early to comment more than that, Harry. it's really early to comment more than that harry On the other hand, obviously we are listening and we understand the importance of trying to get to that trajectory. on the other hand obviously we are listening and we understand the importance of trying to get to that trajectory You want to. You want to. you want to

Speaker 2: Yeah. On the one-off, I think that you have. It's globally awash. They are actually slightly negative in same for, let's say, $50 million-$100 million, and they are slightly positive in RNF, let's say, same kind of amount. You can say that H1 is globally washed in terms of one-off. It's a fair representation where we are. Yeah, you're right. I mean, we do expect EBITDA to go slightly up indeed compared to last year, which is at the end of the day very expected because it means it's pointing to the midpoint. It is true that it would take something that we struggle to see today to meet the midpoint on the guidance. This is achieved despite significant FX impact. Bearing in mind that we have about $100 million in H1, we expect even a bit more than that in H2. Yeah. yeah On the one-off, I think that you have. on the one-off i think that you have It's globally awash. it's globally awash They are actually slightly negative in same for, let's say, $50 million- $100 million, and they are slightly positive in RNF, let's say, same kind of amount. they are actually slightly negative in same for let's say $50 million- $100 million and they are slightly positive in rnf let's say same kind of amount You can say that H1 is globally washed in terms of one-off. you can say that h1 is globally washed in terms of one-off It's a fair representation where we are. it's a fair representation where we are Yeah, you're right. yeah you're right I mean, we do expect EBITDA to go slightly up indeed compared to last year, which is at the end of the day very expected because it means it's pointing to the midpoint. i mean we do expect ebitda to go slightly up indeed compared to last year which is at the end of the day very expected because it means it's pointing to the midpoint It is true that it would take something that we struggle to see today to meet the midpoint on the guidance. it is true that it would take something that we struggle to see today to meet the midpoint on the guidance This is achieved despite significant FX impact. this is achieved despite significant fx impact Bearing in mind that we have about $100 million in H1, we expect even a bit more than that in H2. bearing in mind that we have about $100 million in h1 we expect even a bit more than that in h2 We are over $200 million of negative headwind on FX. With that, we are indeed comfortable to target our main point. I'm not going to elaborate on the dividend, but we are not moving results from one year to the other. We are managing, of course, our business and driving our business. We are steering risk management, of course, to prepare the future, that's for sure, and that we are doing intensely in 2025. We are over $200 million of negative headwind on FX. we are over $200 million of negative headwind on fx With that, we are indeed comfortable to target our main point. with that we are indeed comfortable to target our main point I'm not going to elaborate on the dividend, but we are not moving results from one year to the other. i'm not going to elaborate on the dividend but we are not moving results from one year to the other We are managing, of course, our business and driving our business. we are managing of course our business and driving our business We are steering risk management, of course, to prepare the future, that's for sure, and that we are doing intensely in 2025. we are steering risk management of course to prepare the future that's for sure and that we are doing intensely in 2025

Speaker 10: Okay, that's very clear. Thank you. Okay, that's very clear. okay that's very clear Thank you. thank you

Speaker 5: Next question is from Arthur Sitbon, Morgan Stanley. Next question is from Arthur Sitbon, Morgan Stanley. next question is from arthur sitbon morgan stanley

Speaker 1: Yes, thank you very much. Thanks for taking my questions. Yes, thank you very much. yes thank you very much Thanks for taking my questions. thanks for taking my questions The first one is a follow-up. The first one is a follow-up. the first one is a follow-up To the question on EBIT evolution for H2, I was wondering if you could provide a little bit of granularity on which divisions will drive the rebound in EBIT in H2 basically. To the question on EBIT evolution for H2, I was wondering if you could provide a little bit of granularity on which divisions will drive the rebound in EBIT in H2 basically. to the question on ebit evolution for h2 i was wondering if you could provide a little bit of granularity on which divisions will drive the rebound in ebit in h2 basically The other question that I have. The other question that I have. the other question that i have Is on the situation in the U.S. I think we're waiting clarity on the implications of the recent executive order on renewables. I was wondering if you could provide some thoughts on that and what would be to you an outcome that would be particularly challenging and would require you to revise your ambitions. Is on the situation in the U.S. is on the situation in the u.s I think we're waiting clarity on the implications of the recent executive order on renewables. i think we're waiting clarity on the implications of the recent executive order on renewables I was wondering if you could provide some thoughts on that and what would be to you an outcome that would be particularly challenging and would require you to revise your ambitions. i was wondering if you could provide some thoughts on that and what would be to you an outcome that would be particularly challenging and would require you to revise your ambitions Thank you very much. Thank you very much. thank you very much

Speaker 3: Yeah. Okay, let me maybe start with the U.S. Indeed the situation has been super fluid. Maybe one general statement is that the fundamentals of the market remain very strong and customers' appetite is present. I mean you just listen to some of the announcements that you've heard from hyperscaler on their CapEx spend in the coming weeks, coming months. It's just spectacular. Everything will need to have energy. As you guys know, this power will have to come from renewables because it's just a plain queue in terms of nat gas or nuclear will not be able to meet all this additional demand in the United States. Fundamentals remain very strong on renewables. Now, when you go into the details, you really have to follow it on a week by week, which is what our teams have done I think with frankly great success. Yeah. yeah Okay, let me maybe start with the U.S. okay let me maybe start with the u.s Indeed the situation has been super fluid. indeed the situation has been super fluid Maybe one general statement is that the fundamentals of the market remain very strong and customers' appetite is present. maybe one general statement is that the fundamentals of the market remain very strong and customers' appetite is present I mean you just listen to some of the announcements that you've heard from hyperscaler on their CapEx spend in the coming weeks, coming months. i mean you just listen to some of the announcements that you've heard from hyperscaler on their capex spend in the coming weeks coming months It's just spectacular. it's just spectacular Everything will need to have energy. everything will need to have energy As you guys know, this power will have to come from renewables because it's just a plain queue in terms of nat gas or nuclear will not be able to meet all this additional demand in the United States. as you guys know this power will have to come from renewables because it's just a plain queue in terms of nat gas or nuclear will not be able to meet all this additional demand in the united states Fundamentals remain very strong on renewables. fundamentals remain very strong on renewables Now, when you go into the details, you really have to follow it on a week by week, which is what our teams have done I think with frankly great success. now when you go into the details you really have to follow it on a week by week which is what our teams have done i think with frankly great success I'm very pleased on where we sit. Just to zoom a little bit, as you know, we have 8.6 GW under operation. These assets are great, they're doing well. In fact, if anything, their value in my mind is only going to increase given the power demand situation that we are going to experience. For the projects under construction or the ones who are advanced development, they're moving along, they're largely non-affected because we took some supply chain actions. Remember there were already some tariffs looming. What we did is that we accelerated some deliveries. We also had obviously project contingencies and a strong execution. All this is going well, no issue. What we did is that we used the clarity that came with the new bill to be able to indeed FID three projects for the total sum of 1.1 GW. I'm very pleased on where we sit. i'm very pleased on where we sit Just to zoom a little bit, as you know, we have 8.6 GW under operation. just to zoom a little bit as you know we have 8.6 gw under operation These assets are great, they're doing well. these assets are great they're doing well In fact, if anything, their value in my mind is only going to increase given the power demand situation that we are going to experience. in fact if anything their value in my mind is only going to increase given the power demand situation that we are going to experience For the projects under construction or the ones who are advanced development, they're moving along, they're largely non-affected because we took some supply chain actions. for the projects under construction or the ones who are advanced development they're moving along they're largely non-affected because we took some supply chain actions Remember there were already some tariffs looming. remember there were already some tariffs looming What we did is that we accelerated some deliveries. what we did is that we accelerated some deliveries We also had obviously project contingencies and a strong execution. we also had obviously project contingencies and a strong execution All this is going well, no issue. all this is going well no issue What we did is that we used the clarity that came with the new bill to be able to indeed FID three projects for the total sum of 1.1 GW. what we did is that we used the clarity that came with the new bill to be able to indeed fid three projects for the total sum of 1.1 gw If I look at what this IRA or the OBD bill gave us in terms of more clarity on the IRA, it is the fact that wind and solar that's starting construction by end of 2025, they are completely okay. They'll get the ITC, PTC. There is no issue. You have the ones starting in H1 2026. There is this little qualifier of FEOC which is really, you know, do you have too much Chinese content? There are different thresholds. This is something that we are obviously reviewing. Battery and energy storage will benefit from IRA, but only there will be qualifier again on Chinese content. All of these now is clarified and we can really manage with confidence the three projects that we have just FID. The nice thing about these three projects is that they will contribute EBIT to 2026, 2028 too. If I look at what this IRA or the OBD bill gave us in terms of more clarity on the IRA, it is the fact that wind and solar that's starting construction by end of 2025, they are completely okay. if i look at what this ira or the obd bill gave us in terms of more clarity on the ira it is the fact that wind and solar that's starting construction by end of 2025 they are completely okay They'll get the ITC, PTC. they'll get the itc ptc There is no issue. there is no issue You have the ones starting in H1 2026. you have the ones starting in h1 2026 There is this little qualifier of FEOC which is really, you know, do you have too much Chinese content? there is this little qualifier of feoc which is really you know do you have too much chinese content There are different thresholds. there are different thresholds This is something that we are obviously reviewing. this is something that we are obviously reviewing Battery and energy storage will benefit from IRA, but only there will be qualifier again on Chinese content. battery and energy storage will benefit from ira but only there will be qualifier again on chinese content All of these now is clarified and we can really manage with confidence the three projects that we have just FID. all of these now is clarified and we can really manage with confidence the three projects that we have just fid The nice thing about these three projects is that they will contribute EBIT to 2026, 2028 too. the nice thing about these three projects is that they will contribute ebit to 2026 2028 too Really, largely what we see for the current period 2025, 2027, our U.S. plan is quite solid and robust based on this project that we are moving along now. There remains one uncertainty which has been well commented, and again, not to go into too many gory details, but it's really about what we can call start of construction. We are awaiting clarification on August 21 on this. The current definition which exists today is obviously low threshold. There is definitely room for us for this threshold to be worsened. We don't really see a scenario where FID projects would be in trouble. If they were, then obviously we would have not taken too much commitment, so we would not be in a too dire situation. It would be a welcome clarification for sure that we will wait sometimes in August. Really, largely what we see for the current period 2025, 2027, our U.S. plan is quite solid and robust based on this project that we are moving along now. really largely what we see for the current period 2025 2027 our u.s plan is quite solid and robust based on this project that we are moving along now There remains one uncertainty which has been well commented, and again, not to go into too many gory details, but it's really about what we can call start of construction. there remains one uncertainty which has been well commented and again not to go into too many gory details but it's really about what we can call start of construction We are awaiting clarification on August 21 on this. we are awaiting clarification on august 21 on this The current definition which exists today is obviously low threshold. the current definition which exists today is obviously low threshold There is definitely room for us for this threshold to be worsened. there is definitely room for us for this threshold to be worsened We don't really see a scenario where FID projects would be in trouble. we don't really see a scenario where fid projects would be in trouble If they were, then obviously we would have not taken too much commitment, so we would not be in a too dire situation. if they were then obviously we would have not taken too much commitment so we would not be in a too dire situation It would be a welcome clarification for sure that we will wait sometimes in August. it would be a welcome clarification for sure that we will wait sometimes in august If I look beyond this, it's really we're taking it project by project. It depends on the technology, the permit risk, obviously the off-taker risk appetite. I should have commented maybe the fact that the project that we are moving along, they are of a different nature in terms of the, I would say, T's and C's that we have with our off-takers, which is, by the way, a reflection of the need for these off-takers to secure the power. We are managing to balance much better the risk distribution in order for us to move this project under confidence. That's a little bit the view on the project. Again, we'll be looking at beyond these three projects depending on all of this aspect, whether we are able to move some more. I very much look forward to that. I hope that it will happen. If I look beyond this, it's really we're taking it project by project. if i look beyond this it's really we're taking it project by project It depends on the technology, the permit risk, obviously the off-taker risk appetite. it depends on the technology the permit risk obviously the off-taker risk appetite I should have commented maybe the fact that the project that we are moving along, they are of a different nature in terms of the, I would say, T's and C's that we have with our off-takers, which is, by the way, a reflection of the need for these off-takers to secure the power. i should have commented maybe the fact that the project that we are moving along they are of a different nature in terms of the i would say t's and c's that we have with our off-takers which is by the way a reflection of the need for these off-takers to secure the power We are managing to balance much better the risk distribution in order for us to move this project under confidence. we are managing to balance much better the risk distribution in order for us to move this project under confidence That's a little bit the view on the project. that's a little bit the view on the project Again, we'll be looking at beyond these three projects depending on all of this aspect, whether we are able to move some more. again we'll be looking at beyond these three projects depending on all of this aspect whether we are able to move some more I very much look forward to that. i very much look forward to that I hope that it will happen. i hope that it will happen If not, then Arturo, as you guys know, we have choices, we have options. We've created an incredible situation at ENGIE where we have a geographical footprint which is not huge, it's not all over the place, but we have a few countries where we have depth, where we can actually develop and reallocate some capital, which we have shown a little bit examples of today, and if we need to, we will continue. Big picture in the U.S., the power demand being such that we think that our renewable projects are going to be contributing to this demand for the coming months and years. We will find a way. If not, then Arturo, as you guys know, we have choices, we have options. if not then arturo as you guys know we have choices we have options We've created an incredible situation at ENGIE where we have a geographical footprint which is not huge, it's not all over the place, but we have a few countries where we have depth, where we can actually develop and reallocate some capital, which we have shown a little bit examples of today, and if we need to, we will continue. we've created an incredible situation at engie where we have a geographical footprint which is not huge it's not all over the place but we have a few countries where we have depth where we can actually develop and reallocate some capital which we have shown a little bit examples of today and if we need to we will continue Big picture in the U.S., the power demand being such that we think that our renewable projects are going to be contributing to this demand for the coming months and years. big picture in the u.s the power demand being such that we think that our renewable projects are going to be contributing to this demand for the coming months and years We will find a way. we will find a way

Speaker 2: Thank you, Arthur, for giving me the opportunity to talk a bit about the phasing. Clearly, that's a place where we can improve a bit also in the way we share you the information. In H2, what do we expect? For renewables and flex, the two big tickets are that the hydro normalization will come, so we expect a much less adverse trend in there. We are done now with the bulk of the spread decline in gas generation in Europe, so this is behind us. That was more a Q1 event. Going forward, we expect more stability. Of course, we have the benefit of CODs, we have the benefit of performance. We do expect RNF to be positive in H2. Networks, we are also done with the big impact of tariff increase in France, but we still have some good wins coming from other places. Thank you, Arthur, for giving me the opportunity to talk a bit about the phasing. thank you arthur for giving me the opportunity to talk a bit about the phasing Clearly, that's a place where we can improve a bit also in the way we share you the information. clearly that's a place where we can improve a bit also in the way we share you the information In H2, what do we expect? in h2 what do we expect For renewables and flex, the two big tickets are that the hydro normalization will come, so we expect a much less adverse trend in there. for renewables and flex the two big tickets are that the hydro normalization will come so we expect a much less adverse trend in there We are done now with the bulk of the spread decline in gas generation in Europe, so this is behind us. we are done now with the bulk of the spread decline in gas generation in europe so this is behind us That was more a Q1 event. that was more a q1 event Going forward, we expect more stability. going forward we expect more stability Of course, we have the benefit of CODs, we have the benefit of performance. of course we have the benefit of cods we have the benefit of performance We do expect RNF to be positive in H2. we do expect rnf to be positive in h2 Networks, we are also done with the big impact of tariff increase in France, but we still have some good wins coming from other places. networks we are also done with the big impact of tariff increase in france but we still have some good wins coming from other places We depend, of course, on climate, but we will again expect the network to be in good shape for H2. The big ticket is same where there is a lot of seasonality and moving parts. Here, we need to speed on energy management. Remember that H2 last year, especially Q4, was not that strong. We do expect indeed to see normalization kicking in in H2, probably negative still in Q3, but much better in Q4. On B2B, you see that Q2 was actually improving compared to last year. We expect this to keep going in Q3 and Q4, especially Q4. You remember that in ENGIE, Q1 and Q4 are important and more important than summer. That's even more true for B2C, which is highly seasonal. A lot of our business is done in Q1 and Q4 for B2C. We depend, of course, on climate, but we will again expect the network to be in good shape for H2. we depend of course on climate but we will again expect the network to be in good shape for h2 The big ticket is same where there is a lot of seasonality and moving parts. the big ticket is same where there is a lot of seasonality and moving parts Here, we need to speed on energy management. here we need to speed on energy management Remember that H2 last year, especially Q4, was not that strong. remember that h2 last year especially q4 was not that strong We do expect indeed to see normalization kicking in in H2, probably negative still in Q3, but much better in Q4. we do expect indeed to see normalization kicking in in h2 probably negative still in q3 but much better in q4 On B2B, you see that Q2 was actually improving compared to last year. on b2b you see that q2 was actually improving compared to last year We expect this to keep going in Q3 and Q4, especially Q4. we expect this to keep going in q3 and q4 especially q4 You remember that in ENGIE, Q1 and Q4 are important and more important than summer. you remember that in engie q1 and q4 are important and more important than summer That's even more true for B2C, which is highly seasonal. that's even more true for b2c which is highly seasonal A lot of our business is done in Q1 and Q4 for B2C. a lot of our business is done in q1 and q4 for b2c Here again, of course, we do not expect to be as strong in Q4 as we were last year, but we expect indeed H2 to be positive and especially in Q4 again. You see that cycle coming through. Clearly, the key topic is that in H2 we start to have the benefit of the normalization of markets. It took a while, it took more than two years. It started, you remember, in the first half of 2023, but given a hedging policy in three years, I mean, crisis has been actually spread over some time. Now in H2 25 we are getting close to the point where we are more normal in terms of pricing. That's why we expect indeed EBITDA to start picking up towards the end of the year. I hope it helps. Here again, of course, we do not expect to be as strong in Q4 as we were last year, but we expect indeed H2 to be positive and especially in Q4 again. here again of course we do not expect to be as strong in q4 as we were last year but we expect indeed h2 to be positive and especially in q4 again You see that cycle coming through. you see that cycle coming through Clearly, the key topic is that in H2 we start to have the benefit of the normalization of markets. clearly the key topic is that in h2 we start to have the benefit of the normalization of markets It took a while, it took more than two years. it took a while it took more than two years It started, you remember, in the first half of 2023, but given a hedging policy in three years, I mean, crisis has been actually spread over some time. it started you remember in the first half of 2023 but given a hedging policy in three years i mean crisis has been actually spread over some time Now in H2 25 we are getting close to the point where we are more normal in terms of pricing. now in h2 25 we are getting close to the point where we are more normal in terms of pricing That's why we expect indeed EBITDA to start picking up towards the end of the year. that's why we expect indeed ebitda to start picking up towards the end of the year I hope it helps. i hope it helps

Speaker 3: Yes, thank you very much. Yes, thank you very much. yes thank you very much

Speaker 5: Next question is from Jay Patel, Goldman Sachs. Next question is from Jay Patel, Goldman Sachs. next question is from jay patel goldman sachs

Speaker 6: Good morning and thank you very much for the presentation. I guess I wanted to focus on a strategy question. Over the years, if I look at the success of your strategy, it's been amazing what you've achieved and clearly you have a lot of opportunities in renewables factories. You know, quite a large scope around the portfolio. I would say if I was being critical, the area that hasn't delivered to the same speed has been that old definition of energy solutions. Even though we have a reduced scope this year, it seems that business hasn't really taken huge steps going forward. I'm just wondering when does it become, you know, it's a small amount of the portfolio. You have a lot of opportunity in other parts of your portfolio. Good morning and thank you very much for the presentation. good morning and thank you very much for the presentation I guess I wanted to focus on a strategy question. i guess i wanted to focus on a strategy question Over the years, if I look at the success of your strategy, it's been amazing what you've achieved and clearly you have a lot of opportunities in renewables factories. over the years if i look at the success of your strategy it's been amazing what you've achieved and clearly you have a lot of opportunities in renewables factories You know, quite a large scope around the portfolio. you know quite a large scope around the portfolio I would say if I was being critical, the area that hasn't delivered to the same speed has been that old definition of energy solutions. i would say if i was being critical the area that hasn't delivered to the same speed has been that old definition of energy solutions Even though we have a reduced scope this year, it seems that business hasn't really taken huge steps going forward. even though we have a reduced scope this year it seems that business hasn't really taken huge steps going forward I'm just wondering when does it become, you know, it's a small amount of the portfolio. i'm just wondering when does it become you know it's a small amount of the portfolio You have a lot of opportunity in other parts of your portfolio. you have a lot of opportunity in other parts of your portfolio Does it make sense to have this business as in what are the merits of having this within the portfolio? I guess is the better question. When do we sort of really hold you accountable to its delivery going forward so that we have a better understanding of that longer term trajectory of it? Does it make sense to have this business as in what are the merits of having this within the portfolio? does it make sense to have this business as in what are the merits of having this within the portfolio I guess is the better question. i guess is the better question When do we sort of really hold you accountable to its delivery going forward so that we have a better understanding of that longer term trajectory of it? when do we sort of really hold you accountable to its delivery going forward so that we have a better understanding of that longer term trajectory of it

Speaker 3: All right, thank you. Thanks for the direct question. We appreciate it and maybe a couple of points. I think we've shown as a management team that we are not shy to rationalize the portfolio. This is something that we have almost no emotions to do. When we think that something doesn't belong to ENGIE, we tackle and we address the problem. In the case of LEI, we do think that LEI today has a very unique positioning to deliver the energy transition with our customers and in a decentralized manner. We believe strategically that being able to have this decentralized position among our customers, among industrials, is going to give us a unique positioning on the flex side of the energy transition. All right, thank you. all right thank you Thanks for the direct question. thanks for the direct question We appreciate it and maybe a couple of points. we appreciate it and maybe a couple of points I think we've shown as a management team that we are not shy to rationalize the portfolio. i think we've shown as a management team that we are not shy to rationalize the portfolio This is something that we have almost no emotions to do. this is something that we have almost no emotions to do When we think that something doesn't belong to ENGIE, we tackle and we address the problem. when we think that something doesn't belong to engie we tackle and we address the problem In the case of LEI, we do think that LEI today has a very unique positioning to deliver the energy transition with our customers and in a decentralized manner. in the case of lei we do think that lei today has a very unique positioning to deliver the energy transition with our customers and in a decentralized manner We believe strategically that being able to have this decentralized position among our customers, among industrials, is going to give us a unique positioning on the flex side of the energy transition. we believe strategically that being able to have this decentralized position among our customers among industrials is going to give us a unique positioning on the flex side of the energy transition If you look at flexibility, which we talk a lot about on the production side, at some point it's going to have an emerging value on the demand side. I think you see that in some businesses on the B2C side, some companies actually have a very strong positioning there to leverage the flexibility of the demand side. We believe that LEI, being a very successful business in decarbonizing customers, will have a special value within ENGIE being able to provide flexible service. I know this sounds a little bit conceptual and we agree today we are not able to show that value. Right now the focus for LEI, and here the accountability is there, I can tell you. Jay it is there. If you look at flexibility, which we talk a lot about on the production side, at some point it's going to have an emerging value on the demand side. if you look at flexibility which we talk a lot about on the production side at some point it's going to have an emerging value on the demand side I think you see that in some businesses on the B2C side, some companies actually have a very strong positioning there to leverage the flexibility of the demand side. i think you see that in some businesses on the b2c side some companies actually have a very strong positioning there to leverage the flexibility of the demand side We believe that LEI, being a very successful business in decarbonizing customers, will have a special value within ENGIE being able to provide flexible service. we believe that lei being a very successful business in decarbonizing customers will have a special value within engie being able to provide flexible service I know this sounds a little bit conceptual and we agree today we are not able to show that value. i know this sounds a little bit conceptual and we agree today we are not able to show that value Right now the focus for LEI, and here the accountability is there, I can tell you. right now the focus for lei and here the accountability is there i can tell you Jay it is there. jay it is there I can tell you that the LEI team really feels it is to focus, to perform, to industrialize, to digitalize as well, and to be good at what they do. I really believe that this recovery that is taking a bit longer maybe than what we would have liked is today taking place and that we will be with the market able to show indeed trajectory that are free from the one-offs, because we have a bit suffered from one-offs here and there which have blurred this trajectory curve that we would like to show quicker. I'm pretty confident with what's happening and recentering on five key European markets, barring Singapore and Tabrid, collapsing the layers and actually the LEI team having done that, are really at the forefront at ENGIE of doing a lot of these simplifications, panel layer, et cetera. They are all doing the right thing. I can tell you that the LEI team really feels it is to focus, to perform, to industrialize, to digitalize as well, and to be good at what they do. i can tell you that the lei team really feels it is to focus to perform to industrialize to digitalize as well and to be good at what they do I really believe that this recovery that is taking a bit longer maybe than what we would have liked is today taking place and that we will be with the market able to show indeed trajectory that are free from the one-offs, because we have a bit suffered from one-offs here and there which have blurred this trajectory curve that we would like to show quicker. i really believe that this recovery that is taking a bit longer maybe than what we would have liked is today taking place and that we will be with the market able to show indeed trajectory that are free from the one-offs because we have a bit suffered from one-offs here and there which have blurred this trajectory curve that we would like to show quicker I'm pretty confident with what's happening and recentering on five key European markets, barring Singapore and Tabrid, collapsing the layers and actually the LEI team having done that, are really at the forefront at ENGIE of doing a lot of these simplifications, panel layer, et cetera. i'm pretty confident with what's happening and recentering on five key european markets barring singapore and tabrid collapsing the layers and actually the lei team having done that are really at the forefront at engie of doing a lot of these simplifications panel layer et cetera They are all doing the right thing. they are all doing the right thing We will show soon hopefully those curves and give you and share with you the confidence and excitement that we have with the market, and then in the coming years being able to have more proof points about indeed how strategically it does fit into a portfolio, particularly providing flexibility services to the whole energy transition and to our portfolio. Finally, I would also add in terms of synergies, the fact that there are synergies also with energy management that we are actually already today materializing, but obviously not yet to be reported to the market. We will show soon hopefully those curves and give you and share with you the confidence and excitement that we have with the market, and then in the coming years being able to have more proof points about indeed how strategically it does fit into a portfolio, particularly providing flexibility services to the whole energy transition and to our portfolio. we will show soon hopefully those curves and give you and share with you the confidence and excitement that we have with the market and then in the coming years being able to have more proof points about indeed how strategically it does fit into a portfolio particularly providing flexibility services to the whole energy transition and to our portfolio Finally, I would also add in terms of synergies, the fact that there are synergies also with energy management that we are actually already today materializing, but obviously not yet to be reported to the market. finally i would also add in terms of synergies the fact that there are synergies also with energy management that we are actually already today materializing but obviously not yet to be reported to the market

Speaker 6: May I have one more question? May I have one more question? may i have one more question Hello. Hello. hello

Speaker 3: Sure. Sure. sure

Speaker 6: Yeah, I was just thinking, it's also really nice to hear sort of clearly, like data centers increasingly get more and more attention as the months go by. From your perspective, what have you seen over the last 12 months, and how is that picture evolving for you going forward? Do you think you could communicate on a more frequent basis how that opportunity is materializing for you so that we can sort of gauge that value that potentially could present to you? Yeah, I was just thinking, it's also really nice to hear sort of clearly, like data centers increasingly get more and more attention as the months go by. yeah i was just thinking it's also really nice to hear sort of clearly like data centers increasingly get more and more attention as the months go by From your perspective, what have you seen over the last 12 months, and how is that picture evolving for you going forward? from your perspective what have you seen over the last 12 months and how is that picture evolving for you going forward Do you think you could communicate on a more frequent basis how that opportunity is materializing for you so that we can sort of gauge that value that potentially could present to you? do you think you could communicate on a more frequent basis how that opportunity is materializing for you so that we can sort of gauge that value that potentially could present to you

Speaker 3: Yeah, no, look, data center, obviously you guys know that a lot of the PPAs, a lot of the renewable projects that we do are actually for data center operator or hyperscaler. It is definitely a big driver of our business. We are obviously working because data center is obviously a massive opportunity in terms of supply. Data center, they want PPAs, they want green electrons. There is also quite a lot of excitement about having at ENGIE very specific positioning, for example, having connections to the grid. That obviously in itself can make a completely different conversation with data center where we can bring something to developers that they don't have. It's not just about PPA, it's also about our quite unique positioning and we're definitely working on a lot of things around those topics. When we're ready, we will indeed communicate more on the topic. Yeah, no, look, data center, obviously you guys know that a lot of the PPAs, a lot of the renewable projects that we do are actually for data center operator or hyperscaler. yeah no look data center obviously you guys know that a lot of the ppas a lot of the renewable projects that we do are actually for data center operator or hyperscaler It is definitely a big driver of our business. it is definitely a big driver of our business We are obviously working because data center is obviously a massive opportunity in terms of supply. we are obviously working because data center is obviously a massive opportunity in terms of supply Data center, they want PPAs, they want green electrons. data center they want ppas they want green electrons There is also quite a lot of excitement about having at ENGIE very specific positioning, for example, having connections to the grid. there is also quite a lot of excitement about having at engie very specific positioning for example having connections to the grid That obviously in itself can make a completely different conversation with data center where we can bring something to developers that they don't have. that obviously in itself can make a completely different conversation with data center where we can bring something to developers that they don't have It's not just about PPA, it's also about our quite unique positioning and we're definitely working on a lot of things around those topics. it's not just about ppa it's also about our quite unique positioning and we're definitely working on a lot of things around those topics When we're ready, we will indeed communicate more on the topic. when we're ready we will indeed communicate more on the topic We are very, very excited about what we are doing with data center. We are very, very excited about what we are doing with data center. we are very very excited about what we are doing with data center

Speaker 6: Thank you very much. Thank you very much. thank you very much Much. Much. much

Speaker 3: Operator, next question please. Operator, next question please. operator next question please

Speaker 5: Next question is from Zach Ho Jefferies. Next question is from Zach Ho Jefferies. next question is from zach ho jefferies

Speaker 8: Hi, thanks for the time. There are two questions for me. Firstly on earnings, I think on Hydro, you mentioned in your slides that there's a minus $314 million year on year impact in the first half. I'd just like to know how much did you budget for 2025 in terms of lower volumes? I remember that in your February presentation I think that the earnings showed minus $300 million to $500 million. I'm trying to figure out basically what needs to come through in the second half in terms of Hydro volumes for us to kind of gauge whether or not it's above or below your expectations. Quickly on gens, I think Pierre-François, you mentioned that in second half you expect B2B to be higher year on year. Just want to know if you can provide a second half 2024 figure for B2B because I don't believe that. Hi, thanks for the time. hi thanks for the time There are two questions for me. there are two questions for me Firstly on earnings, I think on Hydro, you mentioned in your slides that there's a minus $314 million year on year impact in the first half. firstly on earnings i think on hydro you mentioned in your slides that there's a minus $314 million year on year impact in the first half I'd just like to know how much did you budget for 2025 in terms of lower volumes? i'd just like to know how much did you budget for 2025 in terms of lower volumes I remember that in your February presentation I think that the earnings showed minus $300 million to $500 million. i remember that in your february presentation i think that the earnings showed minus $300 million to $500 million I'm trying to figure out basically what needs to come through in the second half in terms of Hydro volumes for us to kind of gauge whether or not it's above or below your expectations. i'm trying to figure out basically what needs to come through in the second half in terms of hydro volumes for us to kind of gauge whether or not it's above or below your expectations Quickly on gens, I think Pierre-François, you mentioned that in second half you expect B2B to be higher year on year. quickly on gens i think pierre-françois you mentioned that in second half you expect b2b to be higher year on year Just want to know if you can provide a second half 2024 figure for B2B because I don't believe that. just want to know if you can provide a second half 2024 figure for b2b because i don't believe that I think that isn't disclosed. I just want to know what the starting base is for second half 2024 for us to see an earnings increase. My second question would be just a quick follow up on Jay's question and asking about data centers and more specifically your aim to offer 24/7 green power to customers, which you briefly talked about in your February presentation. I just want to know what the progress is like or what you're seeing on the ground with regards to that offering. What needs to come through for you to get closer to that goal of I think 20% of your PCAs being 24/7 green power. Is it just a technology, is it just a technology thing or are there more developments that need to come through for you to kind of realize that ambition? Thank you. I think that isn't disclosed. i think that isn't disclosed I just want to know what the starting base is for second half 2024 for us to see an earnings increase. i just want to know what the starting base is for second half 2024 for us to see an earnings increase My second question would be just a quick follow up on Jay's question and asking about data centers and more specifically your aim to offer 24/7 green power to customers, which you briefly talked about in your February presentation. my second question would be just a quick follow up on jay's question and asking about data centers and more specifically your aim to offer 24/7 green power to customers which you briefly talked about in your february presentation I just want to know what the progress is like or what you're seeing on the ground with regards to that offering. i just want to know what the progress is like or what you're seeing on the ground with regards to that offering What needs to come through for you to get closer to that goal of I think 20% of your PCAs being 24/7 green power. what needs to come through for you to get closer to that goal of i think 20% of your pcas being 24/7 green power Is it just a technology, is it just a technology thing or are there more developments that need to come through for you to kind of realize that ambition? is it just a technology is it just a technology thing or are there more developments that need to come through for you to kind of realize that ambition Thank you. thank you

Speaker 3: Yeah, I mean, I'll start with the last question. I can sense the excitement around Data Center. Point well taken in terms of 24/7 ambition, it is progressing quite well. We have a few customers where we have advanced discussions that are also a bit pioneering the concept and helping push us towards being able to offer this type of product. The key behind this ambition for us, it's really to have the right portfolio. It really is a portfolio play, the 24/7, which is why we think we have quite a good position and a unique position because you need, obviously, you need renewables, but you also need battery. You need to be able to integrate a lot of different profiles in order to fit that customer profile. These deals take some time. Yeah, I mean, I'll start with the last question. yeah i mean i'll start with the last question I can sense the excitement around Data Center. i can sense the excitement around data center Point well taken in terms of 24/7 ambition, it is progressing quite well. point well taken in terms of 24/7 ambition it is progressing quite well We have a few customers where we have advanced discussions that are also a bit pioneering the concept and helping push us towards being able to offer this type of product. we have a few customers where we have advanced discussions that are also a bit pioneering the concept and helping push us towards being able to offer this type of product The key behind this ambition for us, it's really to have the right portfolio. the key behind this ambition for us it's really to have the right portfolio It really is a portfolio play, the 24/7, which is why we think we have quite a good position and a unique position because you need, obviously, you need renewables, but you also need battery. it really is a portfolio play the 24/7 which is why we think we have quite a good position and a unique position because you need obviously you need renewables but you also need battery You need to be able to integrate a lot of different profiles in order to fit that customer profile. you need to be able to integrate a lot of different profiles in order to fit that customer profile These deals take some time. these deals take some time They are quite complicated to put together, but our teams are working on it and we are seeing quite a few customers indeed very, very interested in those products. Again, we'll make sure that we follow up and give more data as we progress on the topic. They are quite complicated to put together, but our teams are working on it and we are seeing quite a few customers indeed very, very interested in those products. they are quite complicated to put together but our teams are working on it and we are seeing quite a few customers indeed very very interested in those products Again, we'll make sure that we follow up and give more data as we progress on the topic. again we'll make sure that we follow up and give more data as we progress on the topic

Speaker 2: Maybe a couple of answers on your very good technical question. On hydro, we budget for whatever is climate related. We budget on P50, as you can imagine. Compared to budget, what we have seen in H1 was not a big surprise, so no significant impact. We knew that was coming, so it was embedded in our guidance. The same goes for H2. We don't know yet what's going to happen in H2, but our budget, which is, as you can imagine, underpinning our guidance, is based on the midpoint in terms of forecast. Again, we are already covered for that. When it comes to B2B last year, you remember that H1, you should have the numbers, but I just can share the numbers with you. H1 last year was 1,108 and H2 was -29. Maybe a couple of answers on your very good technical question. maybe a couple of answers on your very good technical question On hydro, we budget for whatever is climate related. on hydro we budget for whatever is climate related We budget on P50, as you can imagine. we budget on p50 as you can imagine Compared to budget, what we have seen in H1 was not a big surprise, so no significant impact. compared to budget what we have seen in h1 was not a big surprise so no significant impact We knew that was coming, so it was embedded in our guidance. we knew that was coming so it was embedded in our guidance The same goes for H2. the same goes for h2 We don't know yet what's going to happen in H2, but our budget, which is, as you can imagine, underpinning our guidance, is based on the midpoint in terms of forecast. we don't know yet what's going to happen in h2 but our budget which is as you can imagine underpinning our guidance is based on the midpoint in terms of forecast Again, we are already covered for that. again we are already covered for that When it comes to B2B last year, you remember that H1, you should have the numbers, but I just can share the numbers with you. when it comes to b2b last year you remember that h1 you should have the numbers but i just can share the numbers with you H1 last year was 1,108 and H2 was - 29. h1 last year was 1,108 and h2 was - 29 The seasonality was very strong and we have been working hard on the seasonality to make sure that our contracts are better shaped. Clearly, we expect H2 to be higher, significantly higher than the reference that you have to 2024. We expect B2B to come with a very nice year. I mentioned that during Q1 and this is confirmed with very good commercial activity in B2B. Very pleased with that. Not only are we indeed selling well, but we are looking at margins and we are even looking at margins for longer maturity. It's really a business we are very pleased with. All right, thank you very much. The seasonality was very strong and we have been working hard on the seasonality to make sure that our contracts are better shaped. the seasonality was very strong and we have been working hard on the seasonality to make sure that our contracts are better shaped Clearly, we expect H2 to be higher, significantly higher than the reference that you have to 2024. clearly we expect h2 to be higher significantly higher than the reference that you have to 2024 We expect B2B to come with a very nice year. we expect b2b to come with a very nice year I mentioned that during Q1 and this is confirmed with very good commercial activity in B2B. i mentioned that during q1 and this is confirmed with very good commercial activity in b2b Very pleased with that. very pleased with that Not only are we indeed selling well, but we are looking at margins and we are even looking at margins for longer maturity. not only are we indeed selling well but we are looking at margins and we are even looking at margins for longer maturity It's really a business we are very pleased with. it's really a business we are very pleased with All right, thank you very much. all right thank you very much

Speaker 5: Next question is from James Brown, Deutsche Bank. Next question is from James Brown, Deutsche Bank. next question is from james brown deutsche bank

Speaker 4: Just one question for me, and that was on the outlook for batteries or storage in the U.S. Can you talk a little bit about the U.S. and how your investment was kind of coming down a bit? Obviously, it's understandable that the outlook is a little bit more mixed on the renewable side, given some of the changes. I was wondering whether you could just talk to batteries specifically, because you've been very positive about batteries in the past, and as I understand it, the subsidies have largely remained in place. Do you still see the outlook as being very positive there, or have there been some changes that make you feel a bit more, a bit more moderately positive? Thank you very much. Just one question for me, and that was on the outlook for batteries or storage in the U.S. just one question for me and that was on the outlook for batteries or storage in the u.s Can you talk a little bit about the U.S. and how your investment was kind of coming down a bit? can you talk a little bit about the u.s and how your investment was kind of coming down a bit Obviously, it's understandable that the outlook is a little bit more mixed on the renewable side, given some of the changes. obviously it's understandable that the outlook is a little bit more mixed on the renewable side given some of the changes I was wondering whether you could just talk to batteries specifically, because you've been very positive about batteries in the past, and as I understand it, the subsidies have largely remained in place. i was wondering whether you could just talk to batteries specifically because you've been very positive about batteries in the past and as i understand it the subsidies have largely remained in place Do you still see the outlook as being very positive there, or have there been some changes that make you feel a bit more, a bit more moderately positive? do you still see the outlook as being very positive there or have there been some changes that make you feel a bit more a bit more moderately positive Thank you very much. thank you very much

Speaker 3: No, we are very positive in general about battery prospects in all of our key markets. They are very positive, also in the United States underpinned by the acquisition that we did from BRP a couple of years ago. What is really important today for us on battery is that we are really delivering on the pipeline that we purchased from BRP. When you look at the pipeline that we purchased from BRP, they had a two something GW, we had 800 MW in advanced development, and we are today in 2025 executing on all of this pipeline, putting these batteries in service. That's going really well. No, we are very positive in general about battery prospects in all of our key markets. no we are very positive in general about battery prospects in all of our key markets They are very positive, also in the United States underpinned by the acquisition that we did from BRP a couple of years ago. they are very positive also in the united states underpinned by the acquisition that we did from brp a couple of years ago What is really important today for us on battery is that we are really delivering on the pipeline that we purchased from BRP. what is really important today for us on battery is that we are really delivering on the pipeline that we purchased from brp When you look at the pipeline that we purchased from BRP, they had a two something GW, we had 800 MW in advanced development, and we are today in 2025 executing on all of this pipeline, putting these batteries in service. when you look at the pipeline that we purchased from brp they had a two something gw we had 800 mw in advanced development and we are today in 2025 executing on all of this pipeline putting these batteries in service That's going really well. that's going really well We have a little bit of bottleneck, which is very punctual and has nothing to do with IRA or regulation, which is in aircraft where testing at the time when you commission battery you have to do some tests, and these tests are taking a bit longer. Within intra year 2025, we are seeing a little bit of slippage. Apart from that, the delivery on battery is going very well. Obviously, going forward, batteries as you know will continue to enjoy IRA tax credit benefits. That's the good news. We have now that anchored. The remaining issue for us is this famous FEOC, which is basically putting a threshold or a maximum amount of Chinese content on those batteries. This is really going to be now a supply chain play, whether or not we can be below this threshold. We have a little bit of bottleneck, which is very punctual and has nothing to do with IRA or regulation, which is in aircraft where testing at the time when you commission battery you have to do some tests, and these tests are taking a bit longer. we have a little bit of bottleneck which is very punctual and has nothing to do with ira or regulation which is in aircraft where testing at the time when you commission battery you have to do some tests and these tests are taking a bit longer Within intra year 2025, we are seeing a little bit of slippage. within intra year 2025 we are seeing a little bit of slippage Apart from that, the delivery on battery is going very well. apart from that the delivery on battery is going very well Obviously, going forward, batteries as you know will continue to enjoy IRA tax credit benefits. obviously going forward batteries as you know will continue to enjoy ira tax credit benefits That's the good news. that's the good news We have now that anchored. we have now that anchored The remaining issue for us is this famous FEOC, which is basically putting a threshold or a maximum amount of Chinese content on those batteries. the remaining issue for us is this famous feoc which is basically putting a threshold or a maximum amount of chinese content on those batteries This is really going to be now a supply chain play, whether or not we can be below this threshold. this is really going to be now a supply chain play whether or not we can be below this threshold If you are above this threshold, then the tax credit doesn't apply. Then it's going to be a matter of whether the battery is economical or not. That's really for us the question. In terms of already delivering the value of BRP, we are pretty much there, so no problem. Taking a step back, what we are seeing today is that batteries opportunities across all of our key markets outside in the U.S. We were, as you know, very quick and very ambitious in the U.S., but the international non-U.S. markets were lagging behind the U.S., and now what we are seeing is that international markets are catching up. We have really good performance, good development opportunities in Europe, in Chile, in Australia. That's really the good news because we feel that we have a very, very strong position in batteries in general. If you are above this threshold, then the tax credit doesn't apply. if you are above this threshold then the tax credit doesn't apply Then it's going to be a matter of whether the battery is economical or not. then it's going to be a matter of whether the battery is economical or not That's really for us the question. that's really for us the question In terms of already delivering the value of BRP, we are pretty much there, so no problem. in terms of already delivering the value of brp we are pretty much there so no problem Taking a step back, what we are seeing today is that batteries opportunities across all of our key markets outside in the U.S. taking a step back what we are seeing today is that batteries opportunities across all of our key markets outside in the u.s We were, as you know, very quick and very ambitious in the U.S., but the international non-U.S. markets were lagging behind the U.S., and now what we are seeing is that international markets are catching up. we were as you know very quick and very ambitious in the u.s but the international non-u.s markets were lagging behind the u.s and now what we are seeing is that international markets are catching up We have really good performance, good development opportunities in Europe, in Chile, in Australia. we have really good performance good development opportunities in europe in chile in australia That's really the good news because we feel that we have a very, very strong position in batteries in general. that's really the good news because we feel that we have a very very strong position in batteries in general Operator, can we take a last question please? Operator, can we take a last question please? operator can we take a last question please

Speaker 5: Last question is from Juan Rodriguez, Kepler. Last question is from Juan Rodriguez, Kepler. last question is from juan rodriguez kepler

Speaker 9: Good morning, thank you for taking my question. I have two if I may. The first one is on CapEx and related to the U.S. growth CapEx that you are now signaling around the $2 billion level for 2025-2027. Looking back, it has represented around a third of your renewables portfolio. Looking now, how can we see the $21-24 billion growth CapEx that you signal at your CMD? Can we expect lower growth CapEx or that it would be mostly compensated by other regions as you signal, or maybe some M&A angle on it? That would be the first question. The second one is on the economic net debt and mainly on the leverage ratio. We know you're going to fall well below the 4x economic net debt to EBITDA, but where do you expect the year to end given the current CapEx, CapEx trends, and so on? Good morning, thank you for taking my question. good morning thank you for taking my question I have two if I may. i have two if i may The first one is on CapEx and related to the U.S. growth CapEx that you are now signaling around the $2 billion level for 2025-2027. the first one is on capex and related to the u.s growth capex that you are now signaling around the $2 billion level for 2025-2027 Looking back, it has represented around a third of your renewables portfolio. looking back it has represented around a third of your renewables portfolio Looking now, how can we see the $21-24 billion growth CapEx that you signal at your CMD? looking now how can we see the $21-24 billion growth capex that you signal at your cmd Can we expect lower growth CapEx or that it would be mostly compensated by other regions as you signal, or maybe some M&A angle on it? can we expect lower growth capex or that it would be mostly compensated by other regions as you signal or maybe some m&a angle on it That would be the first question. that would be the first question The second one is on the economic net debt and mainly on the leverage ratio. the second one is on the economic net debt and mainly on the leverage ratio We know you're going to fall well below the 4x economic net debt to EBITDA, but where do you expect the year to end given the current CapEx, CapEx trends, and so on? we know you're going to fall well below the 4x economic net debt to ebitda but where do you expect the year to end given the current capex capex trends and so on

Speaker 3: Thank you. Maybe on your CapEx question, and if I understood properly the question, it was about the U.S. contribution to the growth CapEx and I think a good proxy for renewable CapEx is to look at the pipeline and we gave you the geographical split and you can see that it's moving a little bit and you will see that our share of pipeline from North America is actually decreasing to the benefit of AMEA. You can use that as a proxy for CapEx and you might see a bit less U.S. CapEx and a bit more in AMEA in terms of renewables. All in all, we don't expect to change our gross CapEx. As we mentioned, we have optionality and that's really, really important for us. Thank you. thank you Maybe on your CapEx question, and if I understood properly the question, it was about the U.S. contribution to the growth CapEx and I think a good proxy for renewable CapEx is to look at the pipeline and we gave you the geographical split and you can see that it's moving a little bit and you will see that our share of pipeline from North America is actually decreasing to the benefit of AMEA. maybe on your capex question and if i understood properly the question it was about the u.s contribution to the growth capex and i think a good proxy for renewable capex is to look at the pipeline and we gave you the geographical split and you can see that it's moving a little bit and you will see that our share of pipeline from north america is actually decreasing to the benefit of amea You can use that as a proxy for CapEx and you might see a bit less U.S. you can use that as a proxy for capex and you might see a bit less u.s CapEx and a bit more in AMEA in terms of renewables. capex and a bit more in amea in terms of renewables All in all, we don't expect to change our gross CapEx. all in all we don't expect to change our gross capex As we mentioned, we have optionality and that's really, really important for us. as we mentioned we have optionality and that's really really important for us

Speaker 2: Yeah. On that note, indeed we have identified a couple of potential acquisitions in renewables which are, as you know, a mid-sized acquisition. You know the story and clearly the market has opened a bit of opportunities here and there. Sometimes you can buy good assets. We are very pleased to secure this acquisition in the UK, but that was very small in H1. We have a couple of leads. If we were able to close this acquisition at year end, it would of course help a bit of CapEx for this year, as Catherine said. I mean there is good year, there is less good year in terms of holding out, but no worries about the global envelope. On the net debt to EBITDA, yes, we expect it to rise. Clearly if you compare to a couple of years ago, we are expecting this ratio to rise much quicker. Yeah. yeah On that note, indeed we have identified a couple of potential acquisitions in renewables which are, as you know, a mid-sized acquisition. on that note indeed we have identified a couple of potential acquisitions in renewables which are as you know a mid-sized acquisition You know the story and clearly the market has opened a bit of opportunities here and there. you know the story and clearly the market has opened a bit of opportunities here and there Sometimes you can buy good assets. sometimes you can buy good assets We are very pleased to secure this acquisition in the UK, but that was very small in H1. we are very pleased to secure this acquisition in the uk but that was very small in h1 We have a couple of leads. we have a couple of leads If we were able to close this acquisition at year end, it would of course help a bit of CapEx for this year, as Catherine said. if we were able to close this acquisition at year end it would of course help a bit of capex for this year as catherine said I mean there is good year, there is less good year in terms of holding out, but no worries about the global envelope. i mean there is good year there is less good year in terms of holding out but no worries about the global envelope On the net debt to EBITDA, yes, we expect it to rise. on the net debt to ebitda yes we expect it to rise Clearly if you compare to a couple of years ago, we are expecting this ratio to rise much quicker. clearly if you compare to a couple of years ago we are expecting this ratio to rise much quicker The hard fact is that we have been able to harvest longer and higher the benefits of the crisis. We are now exiting with a ratio which is a bit lower indeed than what we expected. However, for year end we do expect a further rise. It may, yeah, it would be below 3.5%, that's for sure. Below the level that we want to steer the group. It will still leave significant room for more. Indeed, somewhere between 3.1%, 3.4%. That's where we are trying to get at year end, depending again on the pace where we can roll out CapEx and what is done in H2 2025 will be done in H1 2026. The hard fact is that we have been able to harvest longer and higher the benefits of the crisis. the hard fact is that we have been able to harvest longer and higher the benefits of the crisis We are now exiting with a ratio which is a bit lower indeed than what we expected. we are now exiting with a ratio which is a bit lower indeed than what we expected However, for year end we do expect a further rise. however for year end we do expect a further rise It may, yeah, it would be below 3.5%, that's for sure. it may yeah it would be below 3.5% that's for sure Below the level that we want to steer the group. below the level that we want to steer the group It will still leave significant room for more. it will still leave significant room for more Indeed, somewhere between 3.1%, 3.4%. indeed somewhere between 3.1% 3.4% That's where we are trying to get at year end, depending again on the pace where we can roll out CapEx and what is done in H2 2025 will be done in H1 2026. that's where we are trying to get at year end depending again on the pace where we can roll out capex and what is done in h2 2025 will be done in h1 2026

Speaker 3: This is the end of the Q&A session. Thank you all for joining the call. Of course, if you have any follow up question, do not hesitate to call the IR team. Thank you. Thank you. This is the end of the Q & A session. this is the end of the q & a session Thank you all for joining the call. thank you all for joining the call Of course, if you have any follow up question, do not hesitate to call the IR team. of course if you have any follow up question do not hesitate to call the ir team Thank you. thank you Thank you. thank you

Speaker 5: Ladies and gentlemen, this concludes the conference call. ENGIE thanks you for your participation. You may now disconnect. Ladies and gentlemen, this concludes the conference call. ladies and gentlemen this concludes the conference call ENGIE thanks you for your participation. engie thanks you for your participation You may now disconnect. you may now disconnect