Mobico Group PLC (formerly: National Express Group) — Call Transcript 2026

Good morning, everyone. Welcome to our 12-month unaudited results presentation. As you know, I'm Phil White. I'm Executive Chair of Mobico. Introducing to my colleagues, we've got Brian Egan, who is our CFO, and Paco Iglesias, who's our COO. You've met all three of us before at our half-year results. You can remember at that time, we weren't really in the best of places. At that time, you will recall that only one of our five divisions as then was really making any real money. Today, we're here to talk to you about the stability we've brought to the business, as well as the momentum being gradually built up as we implement our Simplify for Success program. An apology first. I'm sorry that the results we are presenting today are unaudited, but as you know, we were left without an an auditor late in the day last year. I'm really pleased to say that we now have KPMG on board. That's a big win, believe it or not, getting an auditor. I know I'll probably be canceled by our advisors for saying this, but please forgive me. I will only use the word unaudited once, because I could use it in every sentence as we go along. I think the same applies to the word adjusted. Forgive me on that, 'cause I don't want to be here all day, and I'm sure you don't want to be here all day, too. The re-reporting schedule again for this year is quite complex, we'll spend most of 2026, would you believe, in close periods. Brian will explain the schedule in more detail. As is usual, I'll start with the highlights, Brian will follow on the finance review, Paco will do all the operational stuff. Let's start with the highlights first, guys. As you can see, we've delivered significant progress in 2025. Revenue increased by 6% to EUR 2.8 billion, while adjusted operating profit increased by 9% to nearly EUR 200 million. Operationally, we achieved nearly 25,000,000,000 passenger-kilometres and secured new contracts worth over EUR 1 billion. Our German rail business provided a full service in December, would you believe, for the first time in two years. Importantly, as you've seen, we've reached an agreement with the five German PTAs in North Rhine-Westphalia on the restructuring of all our rail contracts. This de-risks the business and ensures that our rail operations are sustainable in the long term. All of this has been achieved while making solid progress on safety across the whole business, something, as you know, is absolutely integral to the way we operate. In business, we all know that not all contracts are perfect, and we've inherited a few difficult ones. In business, you also have to deal with the unexpected. When this happens, I always believe it's better to be totally transparent and to be very open. Too open, some people will say, but that's my style. In 2025, as you know, we experienced some issues with certain contracts. We fully recognize this in the year, while at the same time demonstrating the strength of our underlying business. Honestly, we would prefer the scale of the adjusted items to be much smaller. That certainly is our ambition going forward. Before we dive into the numbers, I just want to remind you of our strategy that we announced at our H1 results for 2025. Our roadmap is unchanged. We remain focused on stripping away complexity to reveal the high-performing businesses that we know are there. While continuing through the noise, it means really streamlining our management structure and aggressively attacking overheads. We are removing as what I call the corporate glue, the scourge of large unlisted companies, the duplication of functions and processes, going through procedures, waiting for yes and no's. It takes a hell amount of time to do this and slows us, slows us down in the past. By being smarter and integrating our operations where it makes sense, we are becoming a leaner, faster, and more effective organization. Our financial health is absolutely paramount. We are very focused on generating cash, improving liquidity, and reducing debt. Every pound of CapEx is now being scrutinized to ensure maximum value, and we're leveraging ALSA's operational excellence to unlock synergies groupwide. Through simplifying and strengthening, we are putting the business back on the path to success, just like where we used to be. The financial impact of actions across the group are already visible, with operating profit EUR 198 million for 2025. After a challenging start to the year, we delivered a record H2 performance of EUR 138 million. I'm pleased to say that in H2, all our divisions were profitable. In Germany, we've taken the necessary steps to make our rail business sustainable for the long term by eliminating the significant cash flows over the remaining life of the contracts. Once the agreement is formally signed, we'll be able to provide you guys with a more detailed breakdown of the figures. Until then, I would ask you to please bear with us in respect to the amount of detail we can give you today. We're aggressively reducing costs with some savings delivered in 2025, and we're announcing today that we will deliver EUR 75 million of cost savings in 2026, with an annual run rate of EUR 100 million by the end of the year. We have largely integrated U.K. Coach to ALSA to create a more robust business, one that will meet the challenges of increased competition. We have also completed our exit of loss-making businesses in NXTS, in our coach division, and the loss-making Carter contract in WeDriveU. Despite the progress to date, we do recognize the challenges ahead. Our priorities for 2026 are very clear. As I said, our strategy is indeed simple: simplify, strengthen, and succeed. Whilst our operational story today is one of transition, this should not take away the fact that ALSA has delivered another record year. This was driven by growth in Spain and further revenue diversification. In Morocco, we have faced and resolved several challenges. This has led us to a reduced operating footprint in the country. WeDriveU completed its first year as a standalone entity. We are applying lessons learned there to improve operational and financial performance. We exited early the loss-making Carter contract at the start of this year, 2026. This contract had lost over $303 million in 2025. You'll see from our RNS that we've provisioned EUR 52 million for WMATA. We aren't waiting for a miracle there. As I said, we want to be open and transparent. We are pursuing legal redress with our client. We are ensuring this no longer distracts from our profitable core business. In the U.K., the integration of U.K. Coach to ALSA is now largely complete, with operational and functional benefits starting to be seen from the start of this year. In bus, preparations continue for franchising. In Germany, as mentioned previously, we are now operating a full service. This result was achieved through our investment in driver training and increased recruitment. Sounds pretty easy, really. It's pretty obvious anyway. Across the group, we have maintained strong momentum, securing 25 new contracts with a total value of EUR 450 million, while maintaining a disciplined conversion rate of 28% on new deals. This comes compared to 23% last year. It's really worth noting that these contracts exclude non-consolidated stuff, like joint ventures and joint operations. Most notably, the project of in Qiddiya, in Saudi Arabia, and the Guadalajara health bid will bring the total value of new contracts secured in 2025 to in excess of EUR 1 billion. We also expect to be awarded two key contracts in Spain shortly. These include our retention of one of ALSA's largest lead regional contracts and the expansion of our business in Ibiza, where we'll become the largest operator on the island. A key highlight is the ongoing growth in ALSA. Passenger volumes, which increased a new milestone of 640,000,000 passengers. This was largely driven by a growth of 10% in Spanish domestic demand, mainly regional and urban results. As you can see from the charts, we're witnessing consistent upward growth in passenger numbers across Spain. This isn't merely a seasonal trend. It's a fundamental shift towards public transport and one that is being supported and driven by the Spanish government across the whole country. We do expect this momentum to continue in 2026, as a Spanish single ticket, which offers unlimited travel for a flat monthly rate, becomes embedded in consumer behavior. I will now hand over to Brian, who will take you through the numbers in more detail. Thank you very much, Phil, for that. Good morning, everyone. Before going into the 2025 figures, I want to mention the 2024 numbers have been restated for a EUR 0.8 million EBIT impact in Germany. They also reflect the discontinued operations of a NASB and ex-NXTS. This ensures a clean and like-for-like comparison for the performance we are discussing today. Revenue of EUR 2.8 billion represents a 6.2% increase from 2024, driven primarily by ALSA's strong growth at 12.8%. ALSA's now reached EUR 1.5 billion in revenue, reflecting the continued diversification, in addition to a great performance in both regional and urban. We've also enjoyed good revenue growth in WeDriveU of 4.7% from new contracts, both wins both in shuttle and in transit business. Revenue growth helped deliver a 9.3% increase in operating profit, noting second half performance was significantly better at EUR 138 million versus EUR 60 million in the first half. It also, if you look at on the very right-hand side, shows the improvement in performance this year versus the same period for last year. This reflects the improved underlying operation performance and the benefit of cost savings arising from the restructuring and efficiency improvements that we've been making. Free cash flow was EUR 70.3 million. This was lower than last year, that was mainly caused by cash outflows related to the school bus business, which were made prior to its sale in July, so in the first half of the year. Covenant gearing improved by 0.1 from the end of 2024, again, this has been helped by the proceeds from the school bus sale. In terms of statutory results, operating profit from continuing operations decreased from EUR 12 million to EUR 21.9 million. To understand the bridge between our adjusted statutory operating profits, there are several non-operating charges that I'll walk you through. There were no charges to the German Rail owner's contract provisions in the period. We did utilize EUR 56 million in the provision during the year, leaving the remaining provision at EUR 133 million. This provision will be reviewed in detail for the 15-month audited results, it's reviewed in detail once a year. Moving to WeDriveU, we have made a EUR 52 million onerous contract provision in respect of the WMATA contract. We are seeking legal redress, which Phil has mentioned, in order to recover ongoing losses. We expect the outcome of these legal proceedings to be successful and the contract losses significantly reduced. However, the benefit of this legal settlement is not included in the provision calculation. We are confident of a favorable outcome. However, the process is expected to take 18-24 months. It's a long process. In the year, the utilization of the provision was just over EUR 4 million. It's worth also taking a moment to say that we have learned from the WMATA contract. We have overhauled our North American bidding process to include vigorous review procedures. A EUR 38.5 million charge has been recognized in the income statement for retained legal liabilities tied to the open insurance claims from the NASB sale, the school bus sale. The charge stems largely from material adverse developments in more significant individual cases. The year-end cash impact from settled claims was just under EUR 19 million. In Morocco, following a rapid change in local operating environment, we have taken a EUR 27 million charge. This reflects a combination of price concessions we made in Casablanca, which enabled outstanding debts to be settled, and also a non-cash impairment charge following the abrupt transfer of Marrakech and Tangier contracts in December. To put this adjustment in perspective, on an adjusted basis, Morocco contributed an operating profit of EUR 8 million, compared to just under EUR 13 million in 2024. Amortization of intangibles with acquired businesses from continuing operations increased by EUR 2.8 million during the period. This represents the annual charge for intangibles, such as acquired brands and customer contracts. This happens every year. Finally, as part of our strategic initiatives to stabilize and improve the group's performance, we invested EUR 35 million on restructuring and streamlining costs and also some transaction fees related to the school bus disposal. The year-end cash impact for restructuring was EUR 29.8 million. Overall, there was a cash outflow due to adjusting items in the period. This figure includes adjusting items for discontinued operations. Now turning to our balance sheet, provisions at the bottom of this slide. We currently have EUR 133 million remaining on the German OCP. We will reevaluate the provision for our 15-month audited results, as will be dependent upon the finalization of the legally binding agreements with the PTAs, which are due to be signed before the 30th of June. Of the EUR 47 million remaining provision for WeDriveU, we expect to utilize EUR 8 million in 2026. Again, as I mentioned, this is still subject to the legal process. Moving to our divisional breakdown. ALSA was our most significant growth driver, with revenue increasing by just under 13% to reach the EUR 1.5 billion mark, and operating profit increased by 14% to EUR 112 million. As I've already mentioned, underpinning these numbers is strong underlying demand in Spain. Both regional and long-distance sectors are performing well, supported by a better expected trading environment, particularly towards the end of the year. In WeDriveU, revenue increased by just under 5% to EUR 432 million, driven by new contract wins, and as again, as I mentioned, both in shuttle and in transit businesses. The full-year profit remained below 2024 levels due to challenges with WMATA contract and the Carter contract, which has now been exited, which Phil mentioned in his presentation. We saw a meaningful change in the second half of the WMATA performance, with WeDriveU improving to a GBP 17.6 million profit in H2. This recovery is expected to continue in 2026. On the other hand, the U.K. business continues to face a very challenging environment but has shown great resilience, with revenue decreasing only 4.6%, to EUR 587 million, despite intense competition in the coach business. Breaking this down, U.K. Coach contributed EUR 350 million revenue, while U.K. Bus delivered EUR 272 million. Given the separation of the U.K. Coach as it has moved under ALSA, a profit split isn't available in these financial results. A breakdown will be provided in the full 15-month results ending the 31st of March. With ongoing competition in key routes, it has been a very difficult year for U.K. Coach, with revenues declining by 6.2%. Passenger numbers only fell by 3.8%. On a positive note, the market appears to be growing and growing quite strongly. In U.K. Bus, revenues rose by 2.4%, and this is largely due to the fare increases that we implemented towards the end of June. The decline in passenger numbers reflects the wider problem right across the industry in the U.K. During the period, we also sold Acocks Green Depot and Oak Road. This resulted in a EUR 4.3 million increase in the adjusted operating profit for the 12 months. Overall, the U.K. reported a EUR 4.6 million operating loss, as I said, largely due to the competitive pressures in U.K. Coach, also combined with a rise in employer National Insurance costs. We expect to see this performance improve as we move into 2026, along with the benefits of integration into ALSA. In Germany, revenue decreased by 1.6% to EUR 253 million. Whilst the adjusted operating profit increased to EUR 15.6 million due to improved operational performance, this actually was very significant. We recovered from a loss to a profit-making position. The in-year losses on the RRX contract were EUR 56 million, this is a cash outflow, which, this is the significance of the German contracts that we're in the process of finalizing. Central function costs increased by EUR 2.3 million, principally due to higher costs related to professional services and including a higher audit fee. However, this more, this sort of hides the underlying cost savings that have been made during the year. Looking forward to 2026, we expect us to maintain current levels of performance. For WeDriveU, we expect continued underlying recovery, whilst we continue to redress WMATA through the legal process. By integrating U.K. Coach into ALSA, the business is becoming more competitive. Nevertheless, we expect 2006 to be a challenging year. U.K. Bus is expected to be at breakeven, subject to finalization of funding discussions with Transport for West Midlands. In Germany, our rail business is benefiting from operational improvements and will be de-risked once we have the PTA agreement signed by the 13th of June. By the way, that's important to mention that the revised contracts will be backdated and effective from the 1st of January, 2026. In respect of central functions, we expect further cost reductions. Moving to our cash flow performance for the period, the most important point to highlight is the impact of School Bus, which is shown in the middle column. In 2025, School Bus was a significant drag on group liquidity prior to its disposal. The School Bus cash outflow was driven by substantial investment in CapEx and working capital requirements that were committed in 2024. Excluding School Bus, the group free cash flow was EUR 76 million. Key year-on-year movements include a working capital net inflow due to the timing of cash collections in ALSA. The increase in tax is due to a one-off refund because of the change in tax law, which significantly reduced our cash tax payments in 2024. We are looking-- we have an ongoing project to look at managing our tax burden, as one of the problems we have is that our debt is sitting in the U.K., most of our profits are in Spain, and therefore, we don't have an offset for interest. We are targeting a total CapEx of EUR 120 million for 2026. This reflects our commitment to disciplined spending, maximizing cash conversion as we move forward, and Phil has mentioned this in his presentation, and Phil is... or Paco is also going to mention it his. There is very strict CapEx control now in the organization. However, despite the strong CapEx control, we are able to pursue new growth opportunities, focusing on CapEx-light contracts. In terms of net debt, we saw a EUR 286 million inflow, reflecting the cash proceeds from the School Bus disposal. We recorded a cash outflow of EUR 180 million related to items excluded from our adjusted results, and I talked through these earlier in the presentation. It should be noted that we have paid the Hybrid Bond coupon for 2025, which is the last payment at EUR 21 million. The next payment due is EUR 40 million, which is in February 2027. There was a EUR 9.6 million outflow from other items, primarily driven by exchange movements and derivative settlements. This is partly offset by the sale of an investment. When we pull all of this together, the group achieved total net funds inflow of EUR 127 million for the period. The funds inflow has offset the loss of School Bus EBITDA, resulting in a covenant gearing improving to 2.7. I should mention that the covenant gearing for the 15 months will be dependent on a number of factors, including the German rail agreement, which has quite complicated accounting implications. However, we can confirm that we will be within the covenant requirement. In terms of debt maturity, at the 31st of December, 2025, the RCFs were all undrawn, and we had nearly EUR 900 million in total between cash and drawn committed facilities available to us. The majority of our RCF will only expire in 2029. Notably, the interest rates on our instruments are relatively attractive, and we have significantly reduced our exposure to interest rate volatility, with over 90% of our debt now at fixed rates. In fact, 94%. We have sufficient liquidity to meet our debt maturities arising in 2027. Finally, just to talk through. Well, sorry, well, almost finally. I want to briefly walk through our financial calendar for 2026. As you may have noted, we have adjusted our 2025 and 2026 accounting periods following the appointment of KPMG as our new auditor, which took place in November. These changes are designed to provide KPMG with sufficient time to complete their audit work. However, we do plan to return to a December 31st year-end in 2026. Our current financial year will be for a period of 15 months to the 31st of March 2026. We expect to release our audit results in late June, early July. Looking into the second half, we will report six-month interim results for the period ending September the 30th and expect to release those in late November. Finally, to bring us back into alignment with the standard calendar year, the final accounting period for 2026 will be a shortened nine-month period ending the 31st of December 2026. Results for the period are expected to be released in March of 2027, making a return to a normal 12-month December year-end. In terms of financial imperatives, the focus remains on ensuring our strong top-line growth translates to sustainable value creation. As such, we've implemented a disciplined approach to cost control. Specifically, we are implementing controls over capital expenditure and working capital to maximize cash generation and reduce debt. As Phil mentioned, the mission is simply to succeed. To simplify, to succeed. Behind this, we have our Simplify for Success cost program, which is currently targeting EUR 75 million of cost savings in 2026, with a run rate of EUR 100 million from the end of 2026. We are targeting an adjusted operating profit of EUR 195 million-EUR 210 million in 2026. I note, and this is quite important, that this does not include the positive impact of the revised contract changes from the German rail businesses. Once these agreements become legally binding, which we expect will happen by 30th of June of this year, we will update our guidance. In summary, ALSA remains an engine of growth. WeDriveU is on a recovery path, and our U.K. and German businesses are leaner and more resilient. With EUR 75 million in targeted savings and an operating profit guidance of EUR 195 million-EUR 210 million, and positive net cash in 2026. I will now hand over to Paco, who will go through the operational review. We'll Squeeze through. Thank you. Hello, good morning. Thank you, Brian. Thank you, Phil. Thank you, all of you, for being here. For me, it's the first time I'm in the floor, and it's an honor to share some words with you. As you have noticed, I'm Spanish, but you probably don't know is that I'm from the south of Spain, and that means that my accent is a little bit poor, so apologies for that, but I hope you can understand me better. I'll try to give you more view on the operational side after all the numbers that Brian, and the strategy from Phil. I would like to say something a little bit different and that, well, this is ALSA, and you know that I know ALSA a little bit. I've been working for ALSA for 34 years, and I'm very proud, and the last 10 years as CEO. I would like to explain what is behind the figures of ALSA. I think it's important you to know what's the portfolio of the business that ALSA maintains at the moment. That you probably know that long-haul is like a jewel of the crowd, but long-haul is 17% of the company. It's just 17... Where we are growing more at the moment, where we are growing a lot in international. That was almost zero five years ago, because Morocco is there. Also in the diversification area, that we are also improving. The largest part of the company right now is the regional one that is also under a concession, under franchises process. If you see the figures, we have managed to keep growing in a two digit in terms of revenue and also in terms of profit. The margin, to be honest, is unbelievable. I think is to achieve 14% margin is a bit challenging for the future. I would like to convey that it's been a record year for ALSA, not only in terms of revenue or profit or margin, but also number of passengers, customer satisfaction index, safety target, digital sales. It's a mix, a combination of all the factors that we are working in to get the strategy and the numbers done. A couple of points regarding the environment that ALSA, especially in Spain, are now involved. One is very important, is there is no direct impact in the figures, that is the approval of the Mobility Law in Spain. Just for you to know that the former Mobility Law took place in, if I'm not wrong, 1987. That mean that it's a new law after 40 years. Why it's important that, well, is mobility is now a right in the for the citizens in Spain. It's not only a word, it's something that is like a new pillar of the well-being of the society in Spain, as the healthy or the patients. We have also now mobility on the top of the priorities of the government, and this is very important. Also, this new law secure the system of franchising and concession for long haul in Spain. As I said, I think it's very important. It's something that has been very controversial in the past, if regarding if it's going to be regulated or liberalized. Now with the new law, it's secure. The other point is the strong support from the government, from this government, to the public transport, not only by the law, but also for the not, it's not subsidy. It's like, because it's not subsidies to the companies, it's to reduce price for the passengers to use more public transport. I think it's the current government that has put on the table million of euros to support all kind of transport: rail, coach, buses, and the rest. I think it's important you to know. My view on 2026 is very positive, and the first two months, I cannot show you the figures, but the starting of the year 2026 is also going, performing very well. Let me give you an example of growth in this is Qiddiya, the Saudi city on that. How can we growth in that contract is EUR 5 million, EUR 500 million contract in eight year, plus potential extension of two more. It's it fits exactly with the strategy of ALSA. It's asset-light, it's low risk, and it's a project that is absolutely scalable because this is one of it's the first Mia project that the Saudi government is building in the country. The plan is to have 10 project like Qiddiya in the next year. We have the... We have been awarded in the first one. We are well positioned for the rest of the tendering process that will take place. It's also remarkable that we have won this contract competing in the, what I call the Champions League, because we were competing there with the French state-owned company, the Italian one, the Singaporean one. Well, the top of the top of the company and also that you see the size is also is not that high, as you can imagine as some of our competitors we met. We won the contract through technology and through innovation. For example, if you cannot see very well, but this, one of the main of the strong points in our offer is to build what we call the station for the future. That is a new concept of how people are going to move in the country. I think it's key that it's not a question of price, not only price, it's a question of technology, where we are the technical support for the government as well. We move to WeDriveU, as Brian mentioned, I think it's despite the total figures, the figure from H2 has been very, very positive. We have managed to change the trend that we had in the past. You know, that from the H1, we had the separation process with the school bus. That has some cost. Now we are focused on the, once the separation has been made, we are focused on the strategy of cost and also to improve our operation and to have better margins on that. Also, as Brian and Phil mentioned, one of the main point is to get rid of the loss-making contract. We don't have much, as we manage in the States, almost 100 contracts, but there are three, four of them that are negative. We are in the process of avoiding all this risk for the future because that will make directly an improvement in the final figures. Also, to say that it's in the States, where I pass a lot of times in the last year, there is a lot of room for improvement. Our market share in the state is very little. For example, one of our competitor have 10x the size of WeDriveU. That means we have a lot of place, and we are now entering some new areas of the industry, like universities, where I see very interesting through technology and through good performance. We're quite happy and about the future as well in 2026. If we go to U.K., I think it's we cannot share the figures from bus and coach, but I can give you some light on that. On the bus is where a slight increase on revenue, but it's true that the passengers are going down. Not that much, this I think is in the same trend that all the urban industry in U.K. are doing, are suffering right now. I think well, positive news is we have managed with the authority to secure the fundings in order not to, in order to have at least, I would say, break even in 2025 and, of course, in 2026. Also very important in the coach that I would define the integration, U.K. coach and ALSA is completely success. Here I can see Javier, who is in charge of U.K. coaching in Birmingham, we are in just less than six months, we have changed a lot of things. Again, if we go to the numbers, the decline on passengers in long haul has been less than 4%. If you consider that our competitor, our main competitor in long haul, has double the size of the flights and the routes that they are operating. our less in passengers is very, very little. We still have the majority market share in long haul by far to our competitor. We have also a very clear strategy on focusing on specific routes with the new pricing tool on technology that we have completely changed, a new structure that we have put in place, leaner, more close to the ground, to know the problems, and to have several areas depending on the different products that Javier is running there. For example, we have a clear vision that we need to grow in airports, that we are in the overall figures, we are growing a lot. Of course, we are tackling with massive savings, with no impact on safety, not impact at all in the operational excellence. Also, very optimistic regarding 2026, that we can manage to reverse the situation that we have. Finally, Germany, I think is, Phil mentioned, I think is, several milestone. For the first time, we have, we are running 100% of the services after years. What is even more important, we have achieved the number of drivers that we need. You know, that we have a shortfall in drivers in the last year that made us some penalties with the PTA. Now, we have all the drivers, and what is more important, we have all the drivers with a lower cost, because you know that part of the driver that we were using in the past came from third parties, from agencies now and with a higher cost. Now, we are running all the operation with our own drivers. For 2026, I think it's very important because it's the year, not only because of the agreement with the PTA, that they are doing extremely well, but also because they are going to start the new process of bidding there. I think we are in a, now in a very good position after the agreement with the drivers, with good KPIs in operation, to try to keep growing in that market that I see also very interesting for the future. I don't know if... Yes. This is my final slide. I would like to say that this is after one year working on the throughout the group five things that I have identified that we are working in the same page. These are facts. This is not only narrative. There is fact behind all this statement. First, all the division are performing better than last year, is this numbers. Second, is we have a huge opportunities of all around the world. I mentioned Saudi, I mentioned States. We have also some other opportunities in some other places. The massive cost reduction that we are implementing all around the divisions, including ALSA, but also the rest of the divisions. We are going to work in the future, in the present. We are right now working in the present with a leaner and more efficiency base of cost. That gives us the opportunity to be more profitable. That is linked with the next point, that we are improving the margin of every single contract. We are avoiding totally loss-making contract. This is a process that we are going to finish in the next months. We are trying to get a little bit more of every single contract. To gain 1% in every single contract, you can imagine that it has a huge impact on profit. Finally, probably this is not a fact, but it's not a number behind that. I've been working, as I said, with National Express in the past, for the last 20 years. For the first time, thanks to these guys, we are working as a group. Now it's not, there are four CEOs or vice president or whatever. We have the same protocols, we have the CapEx view, we have the same procedure for safety, we have everything. I think it's very important in order to get synergies from one part of the world to other. For example, U.K. Coach, we are using the pricing technology of ALSA or but we have also exported some from the States, in terms of chattel to the business of transit, the business that we have started in Spain, for example. That's all I would like to end, thanking of you. Any question after Phil's conclusion? I want to convey that we, as a team, are strong. Mm-hmm. We are excited with the present and the future, and myself, very, very optimistic with 2026. We will see you in the next months again for a new presentation. you can check if I was right or wrong. Hope I was right. Thank you. My opinion. Just to conclude, special thanks to my buddies over here, Paco and Brian. Let me say, Paco, you have no need at all to apologize for your English. People can probably understand. Better than me. I'm not mentioning you. I don't understand a word you said. You know, Paco, your accent from the south of Spain is much easier for people to understand than my accent from the north of England. I can assure you that. Well done. That was a great presentation. Thank you. Let's conclude. We're not going to keep you much longer with the presentations. I suppose to conclude the first half of the year, compared to that, we're in a much better position in the H2, and there's been a significant turnaround throughout the business, especially coming up in 2026. We've streamlined our business by getting rid of the corporate glue, as I say, and exiting loss-making operations. No point in running them if you're not making money. We are streamlining and simplifying, removing unnecessary layers and complexity. We're working smarter, becoming leaner, more agile, and better able to respond positively to market trends and opportunities. There's still lots and lots of opportunities out there for us. As Brian mentioned, costs and cash flow are now the key priorities for strengthening the business, and of course, we continue to seek every opportunity to deleverage. Everything we've discussed today is about creating a sustainable business. I spent the first six months of my tenure looking backwards, trying to fix things that had happened probably years ago. We're now no longer just looking backwards to manage challenges. We're rewiring and rebuilding our business to deliver long-term, profitable growth for our shareholders. For our millions of customers, we are committed to delivering what they deserve, and that's the best possible service we can provide. We are here for them, you know. They are not here for us, and that's important. In summary, we're fixing the businesses that need our focus. We are simplifying and integrating where it counts. Importantly, we are taking our people with us on this journey, retaining the brilliant talent that we have in our business, and I can tell you, we have some brilliant talent. I'm not just saying. That's easy to say. Working with these guys since I've joined, very young, and they make me feel young, too, and I love that. From the board up to the guys who turn out every day to run our buses, to run our coaches, and run our trains, whose jobs can be both very difficult and dangerous, we owe a lot to these guys. There are thousands of them who do this on a regular basis. Couple of thank yous. You know, thank you for coming along today, and thanks for the patience you've given us over the last 12 months or so. A very special thanks to our advisors over there, who support us all the time. Give us a nudge when we need it, pull us back when we need it, and stop us from saying silly things, which is mainly me when I'm feeling a bit crazy. You know, we couldn't do it without you guys, and we really, really appreciate it. You know, thanks for turning up today. I can tell you, I'm very looking forward to a number of site visits in Ibiza, right? Where I can show you our late night and early morning services, and I'm sure you'll enjoy it. You know, thanks very much for everything. Thank you. Over to Q&A. Gemma, are you going to manage this? Gerald, do you want to kick off? Gerald, be nice. Morning, everyone. Gerald Khoo from Panmure Liberum. I'll start with three, if I can. Morocco, can you talk us through what's gone wrong, when did it go wrong, and why has it led to such a large exceptional charge? On the topic of exceptionals, can you talk through, how much of those turn into cash? Let's assume WMATA does. I know you're-. Yeah Confident that it won't. Then on, again, on the exceptionals, you've talked about more vis, sort of more cost reductions. What exceptional should we expect associated with that? Finally, on U.K. Bus asset monetization, I think you sold two depots. You gave us the gain. Are you able to give us the proceeds from those two sales? Right. How many depots have you got left? Can you do the operational stuff in Morocco first, explaining what happened there? Brian, can you deal with the exceptional stuff? Well, okay. Well, I think your mic, your mic's working here, Paco. Okay, sorry. You're all right. Morocco. Just to put you in context, we started Morocco 1999, so it is 27 years ago. And we reached six operation in Morocco five years ago. So until more than 20 years, we did not reach the size of the business that we have. Now, we are running four cities, and we are running the first and the second cities in Morocco, that is Casablanca and Rabat, as you know. So I think it is part of our bidding process. Sometimes you win, sometimes you lose. This is nothing to be at fault, and we are still the largest urban operator in Morocco. What we have done with the exceptional is just to all the asset we have and the staff that we need to be out of the company because of the process of losing Tangier and Marrakech, this is the cost. If you ask me, are you optimistic in Morocco? We are making money in Morocco. We will make money in Morocco 2026. We have some opportunities in the future to keep growing. As at the largest operator there, it will be more difficult because now there are more big companies competing with us that we don't have in the past. We have also some areas that, I cannot say, but some areas of diversification where we can enter in the Moroccan market. My view is, it's being, of course, I prefer to win rather than to lose. I think it's part of the normal business, and I'm not especially worried, and I'm optimistic for the future in Morocco. I think when you're operating a successful business, and you grow it to the extent that we did, there's always a lot of people, a lot of competitors who want a share of it. They'll come in and take it, whatever business you're in, whatever profits you're making. I think that's what's happened to us in Morocco. On the numbers, Brian. In Morocco, I mean, we had a provision of just roughly EUR 20 million at the half year. Then in the second half of the year, we had this issue where the authorities ended a contract, and we had to impair some of the assets. In terms of the other questions, the sales of the depots, we sold two depots, just over EUR 4 million, the proceeds from those. Then we looked to monetize the rest of the U.K. Bus business. That was all that we had at the end of the year. On the exceptionals for the cost restructuring, we don't have a number for this year. At the moment, we're working through more cost takeout. We'll give more guidance on that for the at the 15-month stage. We'll have a better handle on that. The final one was the adjustments. I can very quickly go through them. I mean, obviously, the WeDriveU contract provision, which you mentioned. I mean, we do absolutely expect to be successful at litigation. I mean, that there will be a cash cost if we were unsuccessful, but that certainly is not what we expect, and the legal advice is very solid. On the legal claims, that will end up being cash because it's a provision for settlements. On the intangibles, that's non-cash, the write-down, and the restructuring cost that is mainly cash. Morocco? Morocco, going forward, that is really the in terms of a go-forward, that isn't an impact because that's a provision against... In other words, we're not going to recover that debt. That debt is now gone. It's not a cash. It's not a. The debt has disappeared effectively. Gerald, on the West Midlands depots, one is a depot, Acocks Green. It's very old, in need of a lot of maintenance, and the other property was a bit of car parking land. It's one bus garage and a bit of land. Sounds like it was in the books at nil. Sorry? Sounds like it was, they were in the books at virtually nil, if you- Yeah. Yeah. Yeah. it was a bit more, a little bit more than that, but it [crosstalk] There was no write down, was there? No, no. We made a profit. We made a profit. We made a profit of EUR 4 million. I think it was in the books, it was about EUR 7 million. Yeah, EUR 7 million it was in the books. Muneeba Kayani, Bank of America. Firstly, just on your guidance, the low end implies a decline in profits at EBIT. Can you explain how you've thought about that and the range, like the bottom and top-end scenarios? Secondly, on ALSA, if I understand your outlook, you are saying kind of maintain profitability. Is that a comment on the margin, given the strong margin that you saw last year? You still expect top-line growth? If you could just clarify kind of the moving parts between the top line and the margin outlook on ALSA for 2026, as you've thought about it. Yeah. I'll give, and I might ask Paco for some help on the second one. For the first question, you know, we've taken a view on the guidance for next year. We felt it was right to start at the more or less where we ended this year, I guess, or very slightly below. I mean, we certainly hope to do better than the minimum, but that is where we felt being sensible about guidance was the right place to be. What we don't want to do, which has been a constant theme in the past, is where we give guidance and then miss it. We want to give guidance that we very firmly believe that we can achieve. And then on... Margins. On the margins, you know, ALSA had an extraordinarily strong performance this year. Again, you know, maintaining that performance, and, you know, there are some challenges, for example, Morocco, we've just discussed. Making sure that we can, you know, maintain that level of profitability going forward, I think is what we believe is achievable. I mean, there are quite a lot of challenges within the mix of ALSA. I don't know whether you've anything to add. Yeah, yeah. Oh, okay. Of course, I said in the presentation that 14 is unbelievable. It's something that, even if you have asked me, one year ago, I would say that that's very, very difficult to achieve 14%. What I can say is that the trend in ALSA, that we are growing in terms of revenue through business as usual. Passengers, they are growing even two digits, thanks to a lot of things, but also because we are winning new contracts. For example, in that figures is not included the Qiddiya contract, or it's not included the new contract that we are going to start in Ibiza or some other places, or Guadalajara. I don't know if to be honest, I don't know if we can reach 14% of margin, what to do? I can say this, that we are still growing. There is room for improvement in terms of revenue, in terms of passengers, and even in terms of profit. I'm not obsessed that I need to reach 14% of margin. I'm obsessed that we need to keep growing all the opportunities we have. If the margin is 12%, it's fine for me. If the margin is 20%, much better. I think you might, I think you might think we're a bit cautious. I think we think we're being realistic, and we've got to rebuild a lot of trust with you guys and with our shareholders. I think by being open and realistic than putting figures out that end up to be meaningless is the best way to go, rather than you know, totally failing and failing to hit guidance year on year. I don't think that's the best way to go. Thank you. If I may ask a third question on the Qiddiya project? Yeah In Saudi Arabia. We've heard in other projects there have been many delays. Kind of as you think about this project and other projects in Saudi, how do you factor in kind of timing of these projects and impacts from your perspective? Well, my experience with that, you know, that, we run the three contract in Middle East, two in Saudi and one in Bahrain. This Qiddiya project, this is a fact, we were awarded, and we need, we need to start in 45 days after the sign of the contract. My experience is they are doing very quickly because they know they need to have these cities running. For example, they are now launching a project with rail that we are not in, but, and we have been asked the timeline, they to us, that we can manage a second project there. I'm not, I'm not worried about that. Also to say that in the first month of operation, it was like a white operation. We, we made profits from the day number one, because it's not a risk contract. This is a gross cost. If I have to bet, I would say that this is something that is going to happen quite quickly. Thank you. Good morning. Jack Cummings at Berenberg. Three questions, please. The first one is just on the cost savings program. I was wondering if you could just flesh out a little bit more. I know you mentioned kind of corporate glue, but what specifically you are taking out of the business and in what divisions? The second is on the pipeline. Obviously, you've won a decent amount of revenue and contracts, both outside of the joint venture and including it. What's the pipeline looking like for full year 2026? Just finally on covenant leverage, I think 2.7x at year end, how should we think about how that's going to trend over the next 12 months? Will it tick up a little bit in the next three to six when North America School Bus comes out and then fall? Just any more color there would be great. Thank you. I'll do the corporate glue one because it's my theme, this one. It's quite easy, really. It's what Paco said. It's the first time we've been really operating as a team, probably since I left a long time ago. We work together. We've got a strong GEC, our group executives. Importantly, it's how we deal with requests, either for approvals or for help. We deal with them quickly. If it's a no, we tell them no straight away. We don't just ask them: "Can you give me more information?" Give them, and then tell them no. If it's a yes, we, you know, we're pretty positive about that. It's all about the speed of things. You tend in these big corporates where we've all worked before, they lose the nimbleness goes, you know. The slower they are on making decisions and getting bogged down, the more chance that opportunities disappear. We've had one already. I mean, an acquisition in another country in Europe. We've delayed it and deferred it and messed about with it in the past, and it's gone away, hasn't it? There's a danger. By being so bloody slow, you can miss such a lot by being too careful. We've got this governance. You know, I know you guys think governance is important, and I appreciate that, governance doesn't make you any money. It makes you do things right, and you know the difference between right and wrong. There's a balance between good governance and good and quick decision-making, and that's getting rid of that glue that's sticking us everywhere. Let me add something. We're now, as Mobico, running 12 countries. If you compare 12 countries with our main competitors in the Champions League, they are running in 40, 50 countries. That means there is a lot of room for places to go. Let me not release the exact pipeline, but it also is a fact that we submit roughly 30 bidding process in a year. I would say less than half in Spain. This is, of course, is the line of the Chair, but more than 50% out of Spain. In the other 11 countries that we run, we are preparing something to. Not only that, we are also having a look or not a footprint, but some researches and some ongoing negotiation. It at least five more countries where we are not in at the moment. Let me say that I'm not going to show you the opportunity. Mm-hmm. They are competitors. I can assure you that we have a lot of opportunity. I'm not saying I'm not so, that we are going to win all of them. You know, that the ratio of winning contract is about 30%. Mm-hmm. You can imagine that if we have this size of opportunities, one, two, three, we will win, I hope. If not, he has to fire me. Okay. Brian, could you do the cost stuff. Just in terms of cost savings, EUR 75 million, that is spread right across the group. Head office is about, I mean, just in very rough terms, it's around EUR 15 million out of head office. The big focus, as we've mentioned in really all the presentations, has been on U.K. Coach, which is about EUR 25 million, and then it's EUR 10 million out of the other divisions, so Germany, ALSA, and WeDriveU. But it really is right across the business. On the covenant, it's a little bit complicated because of the German settlement, because that's going to influence the ratios very significantly. In fact, the accounting is quite complicated. In fact, even KPMG are getting technical advice as to how it's treated. It will be without Germany, it will be low, obviously, the covenant, the covenant ratio, but probably in the threes. You know, I'm probably getting stared at now, I'm not supposed to say this so much. It will be in the threes. Mm-hmm. Without, excluding Germany. With Germany, that again, depends on accounting, it would be lower, and by the year-end, it will be below three. Any other questions, guys? Yeah. Ruairi Cullinane, RBC. The first question on ALSA concession renewal. What percentage of ALSA's revenues are up for renewal in full year 2027? Is there anything else coming in the years after that? You know, if you could even give us an indicator of what percentage of earnings, that would be even better. Secondly, on provisions on the balance sheet. You've helpfully quantified that there'll be EUR 8 million of utilization from the WeDriveU onerous contract provision. You may not be able to comment on German Rail, but if you can, that would be appreciated. Is there anything else we should be thinking about? Okay. Yeah, I'll leave it at that. Okay. Thank you. Thanks, Ruairi Can you talk a bit about concessions coming up, Paco? Yes. This year and next year? Yes. Well, the franchise process is ongoing. It's true that there's been a general delay, but it's something, for example, right now there is one or two contracts on the table. We are not the incumbent, but in Spain, we have, in March, it's, we need to submit at least two offers in the process. We will have the process. I don't expect that we will have in all... Of course, not all of them, because if I'm not wrong, we manage 21 contracts in long haul in Spain. Probably it's a process that will take at least a couple of years to finish. After that, you know that there is a process of mobilization, claims, and so on. I don't have the crystal ball, but I think it's something that for sure is not going to impact 2026. It's strange that could impact in 2027 or at least in the first half of 2027. That is something that is happening. Of course, we haven't lost a single contract in long haul in the history in Spain. As I show, the revenue of long haul is 17% of the company. Is a good margin, and of course, after a bidding process, you usually lose a little of margins, but because you have to reduce price, but after that, there is a recovery coming from the increase on passengers. It's a process like a peak on that. I don't know if that answer your question or not, but is... This is my expectation. On German Rail, I'm sorry, I can't give you any more because that's a commitment we've made to the local authorities there until we get the contract signed. You know, they're a different organization to us, you know, a political organization, and they've got a lot of people who they report to, including their elected members and officers, and also central government. We did say in the announcement that we're reducing the length of our loss-making contract, we're increasing the length of our profit-making contract, and we're also changing the basis of our profit-making contract to gross costs rather than net costs, and that takes away a load of revenue risk. All I can say, there have been long negotiations, and we're very happy with the outcome. There's a lot of tricky accounting I can't understand, but as Brian says, we're seeking help there, but we are very satisfied with the outcome. I think the important point is when you put the three contracts together, the cash, the cash leakage is going to stop. That's the intention. Brian, on provisions and stuff? I think only the two different provisions, so on WMATA, it'll be EUR 8 million being released next year. On the German one, we just have to finalize the contracts, and we disclose that. Hopefully, again, with the full year results. Okay. Any more questions, guys? Are we done? I think we are. Thank you very much for coming along. Really enjoyed meeting as usual. As you said, as we've been seeing a lot of you in the future, and particularly in this year. Please don't get too bored with us. I know we're not the most exciting people. But we do our best. Thank you very much. Thank you.

Speaker 6: Good morning, everyone. Welcome to our 12-month unaudited results presentation. As you know, I'm Phil White. I'm Executive Chair of Mobico. Introducing to my colleagues, we've got Brian Egan, who is our CFO, and Paco Iglesias, who's our COO. You've met all three of us before at our half-year results. You can remember at that time, we weren't really in the best of places. At that time, you will recall that only one of our five divisions as then was really making any real money. Today, we're here to talk to you about the stability we've brought to the business, as well as the momentum being gradually built up as we implement our Simplify for Success program. An apology first. Good morning, everyone. good morning everyone Welcome to our 12-month unaudited results presentation. welcome to our 12-month unaudited results presentation As you know, I'm Phil White. as you know i'm phil white I'm Executive Chair of Mobico. i'm executive chair of mobico Introducing to my colleagues, we've got Brian Egan, who is our CFO, and Paco Iglesias, who's our COO. introducing to my colleagues we've got brian egan who is our cfo and paco iglesias who's our coo You've met all three of us before at our half-year results. you've met all three of us before at our half-year results You can remember at that time, we weren't really in the best of places. you can remember at that time we weren't really in the best of places At that time, you will recall that only one of our five divisions as then was really making any real money. at that time you will recall that only one of our five divisions as then was really making any real money Today, we're here to talk to you about the stability we've brought to the business, as well as the momentum being gradually built up as we implement our Simplify for Success program. today we're here to talk to you about the stability we've brought to the business as well as the momentum being gradually built up as we implement our simplify for success program An apology first. an apology first I'm sorry that the results we are presenting today are unaudited, but as you know, we were left without an an auditor late in the day last year. I'm really pleased to say that we now have KPMG on board. That's a big win, believe it or not, getting an auditor. I know I'll probably be canceled by our advisors for saying this, but please forgive me. I will only use the word unaudited once, because I could use it in every sentence as we go along. I think the same applies to the word adjusted. Forgive me on that, 'cause I don't want to be here all day, and I'm sure you don't want to be here all day, too. I'm sorry that the results we are presenting today are unaudited, but as you know, we were left without an an auditor late in the day last year. i'm sorry that the results we are presenting today are unaudited but as you know we were left without an an auditor late in the day last year I'm really pleased to say that we now have KPMG on board. i'm really pleased to say that we now have kpmg on board That's a big win, believe it or not, getting an auditor. that's a big win believe it or not getting an auditor I know I'll probably be canceled by our advisors for saying this, but please forgive me. i know i'll probably be canceled by our advisors for saying this but please forgive me I will only use the word unaudited once, because I could use it in every sentence as we go along. i will only use the word unaudited once because i could use it in every sentence as we go along I think the same applies to the word adjusted. i think the same applies to the word adjusted Forgive me on that, 'cause I don't want to be here all day, and I'm sure you don't want to be here all day, too. forgive me on that 'cause i don't want to be here all day and i'm sure you don't want to be here all day too The re-reporting schedule again for this year is quite complex, we'll spend most of 2026, would you believe, in close periods. Brian will explain the schedule in more detail. As is usual, I'll start with the highlights, Brian will follow on the finance review, Paco will do all the operational stuff. Let's start with the highlights first, guys. As you can see, we've delivered significant progress in 2025. Revenue increased by 6% to EUR 2.8 billion, while adjusted operating profit increased by 9% to nearly EUR 200 million. Operationally, we achieved nearly 25,000,000,000 passenger-kilometres and secured new contracts worth over EUR 1 billion. Our German rail business provided a full service in December, would you believe, for the first time in two years. The re-reporting schedule again for this year is quite complex, we'll spend most of 2026, would you believe, in close periods. the re-reporting schedule again for this year is quite complex we'll spend most of 2026 would you believe in close periods Brian will explain the schedule in more detail. brian will explain the schedule in more detail As is usual, I'll start with the highlights, Brian will follow on the finance review, Paco will do all the operational stuff. as is usual i'll start with the highlights brian will follow on the finance review paco will do all the operational stuff Let's start with the highlights first, guys. let's start with the highlights first guys As you can see, we've delivered significant progress in 2025. as you can see we've delivered significant progress in 2025 Revenue increased by 6% to EUR 2.8 billion, while adjusted operating profit increased by 9% to nearly EUR 200 million. revenue increased by 6% to eur 2.8 billion while adjusted operating profit increased by 9% to nearly eur 200 million Operationally, we achieved nearly 25,000,000,000 passenger-kilometres and secured new contracts worth over EUR 1 billion. operationally we achieved nearly 25,000,000,000 passenger-kilometres and secured new contracts worth over eur 1 billion Our German rail business provided a full service in December, would you believe, for the first time in two years. our german rail business provided a full service in december would you believe for the first time in two years Importantly, as you've seen, we've reached an agreement with the five German PTAs in North Rhine-Westphalia on the restructuring of all our rail contracts. This de-risks the business and ensures that our rail operations are sustainable in the long term. All of this has been achieved while making solid progress on safety across the whole business, something, as you know, is absolutely integral to the way we operate. In business, we all know that not all contracts are perfect, and we've inherited a few difficult ones. In business, you also have to deal with the unexpected. When this happens, I always believe it's better to be totally transparent and to be very open. Too open, some people will say, but that's my style. Importantly, as you've seen, we've reached an agreement with the five German PTAs in North Rhine-Westphalia on the restructuring of all our rail contracts. importantly as you've seen we've reached an agreement with the five german ptas in north rhine-westphalia on the restructuring of all our rail contracts This de-risks the business and ensures that our rail operations are sustainable in the long term. this de-risks the business and ensures that our rail operations are sustainable in the long term All of this has been achieved while making solid progress on safety across the whole business, something, as you know, is absolutely integral to the way we operate. all of this has been achieved while making solid progress on safety across the whole business something as you know is absolutely integral to the way we operate In business, we all know that not all contracts are perfect, and we've inherited a few difficult ones. in business we all know that not all contracts are perfect and we've inherited a few difficult ones In business, you also have to deal with the unexpected. in business you also have to deal with the unexpected When this happens, I always believe it's better to be totally transparent and to be very open. when this happens i always believe it's better to be totally transparent and to be very open Too open, some people will say, but that's my style. too open some people will say but that's my style In 2025, as you know, we experienced some issues with certain contracts. We fully recognize this in the year, while at the same time demonstrating the strength of our underlying business. Honestly, we would prefer the scale of the adjusted items to be much smaller. That certainly is our ambition going forward. Before we dive into the numbers, I just want to remind you of our strategy that we announced at our H1 results for 2025. Our roadmap is unchanged. We remain focused on stripping away complexity to reveal the high-performing businesses that we know are there. While continuing through the noise, it means really streamlining our management structure and aggressively attacking overheads. In 2025, as you know, we experienced some issues with certain contracts. in 2025 as you know we experienced some issues with certain contracts We fully recognize this in the year, while at the same time demonstrating the strength of our underlying business. we fully recognize this in the year while at the same time demonstrating the strength of our underlying business Honestly, we would prefer the scale of the adjusted items to be much smaller. honestly we would prefer the scale of the adjusted items to be much smaller That certainly is our ambition going forward. that certainly is our ambition going forward Before we dive into the numbers, I just want to remind you of our strategy that we announced at our H1 results for 2025. before we dive into the numbers i just want to remind you of our strategy that we announced at our h1 results for 2025 Our roadmap is unchanged. our roadmap is unchanged We remain focused on stripping away complexity to reveal the high-performing businesses that we know are there. we remain focused on stripping away complexity to reveal the high-performing businesses that we know are there While continuing through the noise, it means really streamlining our management structure and aggressively attacking overheads. while continuing through the noise it means really streamlining our management structure and aggressively attacking overheads We are removing as what I call the corporate glue, the scourge of large unlisted companies, the duplication of functions and processes, going through procedures, waiting for yes and no's. It takes a hell amount of time to do this and slows us, slows us down in the past. By being smarter and integrating our operations where it makes sense, we are becoming a leaner, faster, and more effective organization. Our financial health is absolutely paramount. We are very focused on generating cash, improving liquidity, and reducing debt. Every pound of CapEx is now being scrutinized to ensure maximum value, and we're leveraging ALSA's operational excellence to unlock synergies groupwide. Through simplifying and strengthening, we are putting the business back on the path to success, just like where we used to be. We are removing as what I call the corporate glue, the scourge of large unlisted companies, the duplication of functions and processes, going through procedures, waiting for yes and no's. we are removing as what i call the corporate glue the scourge of large unlisted companies the duplication of functions and processes going through procedures waiting for yes and no's It takes a hell amount of time to do this and slows us, slows us down in the past. it takes a hell amount of time to do this and slows us slows us down in the past By being smarter and integrating our operations where it makes sense, we are becoming a leaner, faster, and more effective organization. by being smarter and integrating our operations where it makes sense we are becoming a leaner faster and more effective organization Our financial health is absolutely paramount. our financial health is absolutely paramount We are very focused on generating cash, improving liquidity, and reducing debt. we are very focused on generating cash improving liquidity and reducing debt Every pound of CapEx is now being scrutinized to ensure maximum value, and we're leveraging ALSA's operational excellence to unlock synergies groupwide. every pound of capex is now being scrutinized to ensure maximum value and we're leveraging alsa's operational excellence to unlock synergies groupwide Through simplifying and strengthening, we are putting the business back on the path to success, just like where we used to be. through simplifying and strengthening we are putting the business back on the path to success just like where we used to be The financial impact of actions across the group are already visible, with operating profit EUR 198 million for 2025. After a challenging start to the year, we delivered a record H2 performance of EUR 138 million. I'm pleased to say that in H2, all our divisions were profitable. In Germany, we've taken the necessary steps to make our rail business sustainable for the long term by eliminating the significant cash flows over the remaining life of the contracts. Once the agreement is formally signed, we'll be able to provide you guys with a more detailed breakdown of the figures. Until then, I would ask you to please bear with us in respect to the amount of detail we can give you today. The financial impact of actions across the group are already visible, with operating profit EUR 198 million for 2025. the financial impact of actions across the group are already visible with operating profit eur 198 million for 2025 After a challenging start to the year, we delivered a record H2 performance of EUR 138 million. after a challenging start to the year we delivered a record h2 performance of eur 138 million I'm pleased to say that in H2, all our divisions were profitable. i'm pleased to say that in h2 all our divisions were profitable In Germany, we've taken the necessary steps to make our rail business sustainable for the long term by eliminating the significant cash flows over the remaining life of the contracts. in germany we've taken the necessary steps to make our rail business sustainable for the long term by eliminating the significant cash flows over the remaining life of the contracts Once the agreement is formally signed, we'll be able to provide you guys with a more detailed breakdown of the figures. once the agreement is formally signed we'll be able to provide you guys with a more detailed breakdown of the figures Until then, I would ask you to please bear with us in respect to the amount of detail we can give you today. until then i would ask you to please bear with us in respect to the amount of detail we can give you today We're aggressively reducing costs with some savings delivered in 2025, and we're announcing today that we will deliver EUR 75 million of cost savings in 2026, with an annual run rate of EUR 100 million by the end of the year. We have largely integrated U.K. Coach to ALSA to create a more robust business, one that will meet the challenges of increased competition. We have also completed our exit of loss-making businesses in NXTS, in our coach division, and the loss-making Carter contract in WeDriveU. Despite the progress to date, we do recognize the challenges ahead. Our priorities for 2026 are very clear. As I said, our strategy is indeed simple: simplify, strengthen, and succeed. Whilst our operational story today is one of transition, this should not take away the fact that ALSA has delivered another record year. We're aggressively reducing costs with some savings delivered in 2025, and we're announcing today that we will deliver EUR 75 million of cost savings in 2026, with an annual run rate of EUR 100 million by the end of the year. we're aggressively reducing costs with some savings delivered in 2025 and we're announcing today that we will deliver eur 75 million of cost savings in 2026 with an annual run rate of eur 100 million by the end of the year We have largely integrated U.K. we have largely integrated u.k Coach to ALSA to create a more robust business, one that will meet the challenges of increased competition. coach to alsa to create a more robust business one that will meet the challenges of increased competition We have also completed our exit of loss-making businesses in NXTS, in our coach division, and the loss-making Carter contract in WeDriveU. we have also completed our exit of loss-making businesses in nxts in our coach division and the loss-making carter contract in wedriveu Despite the progress to date, we do recognize the challenges ahead. despite the progress to date we do recognize the challenges ahead Our priorities for 2026 are very clear. our priorities for 2026 are very clear As I said, our strategy is indeed simple: simplify, strengthen, and succeed. as i said our strategy is indeed simple simplify strengthen and succeed Whilst our operational story today is one of transition, this should not take away the fact that ALSA has delivered another record year. whilst our operational story today is one of transition this should not take away the fact that alsa has delivered another record year This was driven by growth in Spain and further revenue diversification. In Morocco, we have faced and resolved several challenges. This has led us to a reduced operating footprint in the country. WeDriveU completed its first year as a standalone entity. We are applying lessons learned there to improve operational and financial performance. We exited early the loss-making Carter contract at the start of this year, 2026. This contract had lost over $303 million in 2025. You'll see from our RNS that we've provisioned EUR 52 million for WMATA. We aren't waiting for a miracle there. As I said, we want to be open and transparent. We are pursuing legal redress with our client. We are ensuring this no longer distracts from our profitable core business. This was driven by growth in Spain and further revenue diversification. this was driven by growth in spain and further revenue diversification In Morocco, we have faced and resolved several challenges. in morocco we have faced and resolved several challenges This has led us to a reduced operating footprint in the country. this has led us to a reduced operating footprint in the country WeDriveU completed its first year as a standalone entity. wedriveu completed its first year as a standalone entity We are applying lessons learned there to improve operational and financial performance. we are applying lessons learned there to improve operational and financial performance We exited early the loss-making Carter contract at the start of this year, 2026. we exited early the loss-making carter contract at the start of this year 2026 This contract had lost over $303 million in 2025. this contract had lost over $303 million in 2025 You'll see from our RNS that we've provisioned EUR 52 million for WMATA. you'll see from our rns that we've provisioned eur 52 million for wmata We aren't waiting for a miracle there. we aren't waiting for a miracle there As I said, we want to be open and transparent. as i said we want to be open and transparent We are pursuing legal redress with our client. we are pursuing legal redress with our client We are ensuring this no longer distracts from our profitable core business. we are ensuring this no longer distracts from our profitable core business In the U.K., the integration of U.K. Coach to ALSA is now largely complete, with operational and functional benefits starting to be seen from the start of this year. In bus, preparations continue for franchising. In Germany, as mentioned previously, we are now operating a full service. This result was achieved through our investment in driver training and increased recruitment. Sounds pretty easy, really. It's pretty obvious anyway. Across the group, we have maintained strong momentum, securing 25 new contracts with a total value of EUR 450 million, while maintaining a disciplined conversion rate of 28% on new deals. This comes compared to 23% last year. It's really worth noting that these contracts exclude non-consolidated stuff, like joint ventures and joint operations. In the U.K., the integration of U.K. in the u.k the integration of u.k Coach to ALSA is now largely complete, with operational and functional benefits starting to be seen from the start of this year. coach to alsa is now largely complete with operational and functional benefits starting to be seen from the start of this year In bus, preparations continue for franchising. in bus preparations continue for franchising In Germany, as mentioned previously, we are now operating a full service. in germany as mentioned previously we are now operating a full service This result was achieved through our investment in driver training and increased recruitment. this result was achieved through our investment in driver training and increased recruitment Sounds pretty easy, really. sounds pretty easy really It's pretty obvious anyway. it's pretty obvious anyway Across the group, we have maintained strong momentum, securing 25 new contracts with a total value of EUR 450 million, while maintaining a disciplined conversion rate of 28% on new deals. across the group we have maintained strong momentum securing 25 new contracts with a total value of eur 450 million while maintaining a disciplined conversion rate of 28% on new deals This comes compared to 23% last year. this comes compared to 23% last year It's really worth noting that these contracts exclude non-consolidated stuff, like joint ventures and joint operations. it's really worth noting that these contracts exclude non-consolidated stuff like joint ventures and joint operations Most notably, the project of in Qiddiya, in Saudi Arabia, and the Guadalajara health bid will bring the total value of new contracts secured in 2025 to in excess of EUR 1 billion. We also expect to be awarded two key contracts in Spain shortly. These include our retention of one of ALSA's largest lead regional contracts and the expansion of our business in Ibiza, where we'll become the largest operator on the island. A key highlight is the ongoing growth in ALSA. Passenger volumes, which increased a new milestone of 640,000,000 passengers. This was largely driven by a growth of 10% in Spanish domestic demand, mainly regional and urban results. As you can see from the charts, we're witnessing consistent upward growth in passenger numbers across Spain. Most notably, the project of in Qiddiya, in Saudi Arabia, and the Guadalajara health bid will bring the total value of new contracts secured in 2025 to in excess of EUR 1 billion. most notably the project of in qiddiya in saudi arabia and the guadalajara health bid will bring the total value of new contracts secured in 2025 to in excess of eur 1 billion We also expect to be awarded two key contracts in Spain shortly. we also expect to be awarded two key contracts in spain shortly These include our retention of one of ALSA's largest lead regional contracts and the expansion of our business in Ibiza, where we'll become the largest operator on the island. these include our retention of one of alsa's largest lead regional contracts and the expansion of our business in ibiza where we'll become the largest operator on the island A key highlight is the ongoing growth in ALSA. a key highlight is the ongoing growth in alsa Passenger volumes, which increased a new milestone of 640,000,000 passengers. passenger volumes which increased a new milestone of 640,000,000 passengers This was largely driven by a growth of 10% in Spanish domestic demand, mainly regional and urban results. this was largely driven by a growth of 10% in spanish domestic demand mainly regional and urban results As you can see from the charts, we're witnessing consistent upward growth in passenger numbers across Spain. as you can see from the charts we're witnessing consistent upward growth in passenger numbers across spain This isn't merely a seasonal trend. It's a fundamental shift towards public transport and one that is being supported and driven by the Spanish government across the whole country. We do expect this momentum to continue in 2026, as a Spanish single ticket, which offers unlimited travel for a flat monthly rate, becomes embedded in consumer behavior. I will now hand over to Brian, who will take you through the numbers in more detail. This isn't merely a seasonal trend. this isn't merely a seasonal trend It's a fundamental shift towards public transport and one that is being supported and driven by the Spanish government across the whole country. it's a fundamental shift towards public transport and one that is being supported and driven by the spanish government across the whole country We do expect this momentum to continue in 2026, as a Spanish single ticket, which offers unlimited travel for a flat monthly rate, becomes embedded in consumer behavior. we do expect this momentum to continue in 2026 as a spanish single ticket which offers unlimited travel for a flat monthly rate becomes embedded in consumer behavior I will now hand over to Brian, who will take you through the numbers in more detail. i will now hand over to brian who will take you through the numbers in more detail

Speaker 1: Thank you very much, Phil, for that. Good morning, everyone. Before going into the 2025 figures, I want to mention the 2024 numbers have been restated for a EUR 0.8 million EBIT impact in Germany. They also reflect the discontinued operations of a NASB and ex-NXTS. This ensures a clean and like-for-like comparison for the performance we are discussing today. Revenue of EUR 2.8 billion represents a 6.2% increase from 2024, driven primarily by ALSA's strong growth at 12.8%. ALSA's now reached EUR 1.5 billion in revenue, reflecting the continued diversification, in addition to a great performance in both regional and urban. Thank you very much, Phil, for that. thank you very much phil for that Good morning, everyone. good morning everyone Before going into the 2025 figures, I want to mention the 2024 numbers have been restated for a EUR 0.8 million EBIT impact in Germany. before going into the 2025 figures i want to mention the 2024 numbers have been restated for a eur 0.8 million ebit impact in germany They also reflect the discontinued operations of a NASB and ex-NXTS. they also reflect the discontinued operations of a nasb and ex-nxts This ensures a clean and like-for-like comparison for the performance we are discussing today. this ensures a clean and like-for-like comparison for the performance we are discussing today Revenue of EUR 2.8 billion represents a 6.2% increase from 2024, driven primarily by ALSA's strong growth at 12.8%. revenue of eur 2.8 billion represents a 6.2% increase from 2024 driven primarily by alsa's strong growth at 12.8% ALSA's now reached EUR 1.5 billion in revenue, reflecting the continued diversification, in addition to a great performance in both regional and urban. alsa's now reached eur 1.5 billion in revenue reflecting the continued diversification in addition to a great performance in both regional and urban We've also enjoyed good revenue growth in WeDriveU of 4.7% from new contracts, both wins both in shuttle and in transit business. Revenue growth helped deliver a 9.3% increase in operating profit, noting second half performance was significantly better at EUR 138 million versus EUR 60 million in the first half. It also, if you look at on the very right-hand side, shows the improvement in performance this year versus the same period for last year. This reflects the improved underlying operation performance and the benefit of cost savings arising from the restructuring and efficiency improvements that we've been making. Free cash flow was EUR 70.3 million. We've also enjoyed good revenue growth in WeDriveU of 4.7% from new contracts, both wins both in shuttle and in transit business. we've also enjoyed good revenue growth in wedriveu of 4.7% from new contracts both wins both in shuttle and in transit business Revenue growth helped deliver a 9.3% increase in operating profit, noting second half performance was significantly better at EUR 138 million versus EUR 60 million in the first half. revenue growth helped deliver a 9.3% increase in operating profit noting second half performance was significantly better at eur 138 million versus eur 60 million in the first half It also, if you look at on the very right-hand side, shows the improvement in performance this year versus the same period for last year. it also if you look at on the very right-hand side shows the improvement in performance this year versus the same period for last year This reflects the improved underlying operation performance and the benefit of cost savings arising from the restructuring and efficiency improvements that we've been making. this reflects the improved underlying operation performance and the benefit of cost savings arising from the restructuring and efficiency improvements that we've been making Free cash flow was EUR 70.3 million. free cash flow was eur 70.3 million This was lower than last year, that was mainly caused by cash outflows related to the school bus business, which were made prior to its sale in July, so in the first half of the year. Covenant gearing improved by 0.1 from the end of 2024, again, this has been helped by the proceeds from the school bus sale. In terms of statutory results, operating profit from continuing operations decreased from EUR 12 million to EUR 21.9 million. To understand the bridge between our adjusted statutory operating profits, there are several non-operating charges that I'll walk you through. There were no charges to the German Rail owner's contract provisions in the period. We did utilize EUR 56 million in the provision during the year, leaving the remaining provision at EUR 133 million. This was lower than last year, that was mainly caused by cash outflows related to the school bus business, which were made prior to its sale in July, so in the first half of the year. this was lower than last year that was mainly caused by cash outflows related to the school bus business which were made prior to its sale in july so in the first half of the year Covenant gearing improved by 0.1 from the end of 2024, again, this has been helped by the proceeds from the school bus sale. covenant gearing improved by 0.1 from the end of 2024 again this has been helped by the proceeds from the school bus sale In terms of statutory results, operating profit from continuing operations decreased from EUR 12 million to EUR 21.9 million. in terms of statutory results operating profit from continuing operations decreased from eur 12 million to eur 21.9 million To understand the bridge between our adjusted statutory operating profits, there are several non-operating charges that I'll walk you through. to understand the bridge between our adjusted statutory operating profits there are several non-operating charges that i'll walk you through There were no charges to the German Rail owner's contract provisions in the period. there were no charges to the german rail owner's contract provisions in the period We did utilize EUR 56 million in the provision during the year, leaving the remaining provision at EUR 133 million. we did utilize eur 56 million in the provision during the year leaving the remaining provision at eur 133 million This provision will be reviewed in detail for the 15-month audited results, it's reviewed in detail once a year. Moving to WeDriveU, we have made a EUR 52 million onerous contract provision in respect of the WMATA contract. We are seeking legal redress, which Phil has mentioned, in order to recover ongoing losses. We expect the outcome of these legal proceedings to be successful and the contract losses significantly reduced. However, the benefit of this legal settlement is not included in the provision calculation. We are confident of a favorable outcome. However, the process is expected to take 18-24 months. It's a long process. In the year, the utilization of the provision was just over EUR 4 million. It's worth also taking a moment to say that we have learned from the WMATA contract. This provision will be reviewed in detail for the 15-month audited results, it's reviewed in detail once a year. this provision will be reviewed in detail for the 15-month audited results it's reviewed in detail once a year Moving to WeDriveU, we have made a EUR 52 million onerous contract provision in respect of the WMATA contract. moving to wedriveu we have made a eur 52 million onerous contract provision in respect of the wmata contract We are seeking legal redress, which Phil has mentioned, in order to recover ongoing losses. we are seeking legal redress which phil has mentioned in order to recover ongoing losses We expect the outcome of these legal proceedings to be successful and the contract losses significantly reduced. we expect the outcome of these legal proceedings to be successful and the contract losses significantly reduced However, the benefit of this legal settlement is not included in the provision calculation. however the benefit of this legal settlement is not included in the provision calculation We are confident of a favorable outcome. we are confident of a favorable outcome However, the process is expected to take 18-24 months. however the process is expected to take 18-24 months It's a long process. it's a long process In the year, the utilization of the provision was just over EUR 4 million. in the year the utilization of the provision was just over eur 4 million It's worth also taking a moment to say that we have learned from the WMATA contract. it's worth also taking a moment to say that we have learned from the wmata contract We have overhauled our North American bidding process to include vigorous review procedures. A EUR 38.5 million charge has been recognized in the income statement for retained legal liabilities tied to the open insurance claims from the NASB sale, the school bus sale. The charge stems largely from material adverse developments in more significant individual cases. The year-end cash impact from settled claims was just under EUR 19 million. In Morocco, following a rapid change in local operating environment, we have taken a EUR 27 million charge. This reflects a combination of price concessions we made in Casablanca, which enabled outstanding debts to be settled, and also a non-cash impairment charge following the abrupt transfer of Marrakech and Tangier contracts in December. We have overhauled our North American bidding process to include vigorous review procedures. we have overhauled our north american bidding process to include vigorous review procedures A EUR 38.5 million charge has been recognized in the income statement for retained legal liabilities tied to the open insurance claims from the NASB sale, the school bus sale. a eur 38.5 million charge has been recognized in the income statement for retained legal liabilities tied to the open insurance claims from the nasb sale the school bus sale The charge stems largely from material adverse developments in more significant individual cases. the charge stems largely from material adverse developments in more significant individual cases The year-end cash impact from settled claims was just under EUR 19 million. the year-end cash impact from settled claims was just under eur 19 million In Morocco, following a rapid change in local operating environment, we have taken a EUR 27 million charge. in morocco following a rapid change in local operating environment we have taken a eur 27 million charge This reflects a combination of price concessions we made in Casablanca, which enabled outstanding debts to be settled, and also a non-cash impairment charge following the abrupt transfer of Marrakech and Tangier contracts in December. this reflects a combination of price concessions we made in casablanca which enabled outstanding debts to be settled and also a non-cash impairment charge following the abrupt transfer of marrakech and tangier contracts in december To put this adjustment in perspective, on an adjusted basis, Morocco contributed an operating profit of EUR 8 million, compared to just under EUR 13 million in 2024. Amortization of intangibles with acquired businesses from continuing operations increased by EUR 2.8 million during the period. This represents the annual charge for intangibles, such as acquired brands and customer contracts. This happens every year. Finally, as part of our strategic initiatives to stabilize and improve the group's performance, we invested EUR 35 million on restructuring and streamlining costs and also some transaction fees related to the school bus disposal. The year-end cash impact for restructuring was EUR 29.8 million. Overall, there was a cash outflow due to adjusting items in the period. This figure includes adjusting items for discontinued operations. Now turning to our balance sheet, provisions at the bottom of this slide. To put this adjustment in perspective, on an adjusted basis, Morocco contributed an operating profit of EUR 8 million, compared to just under EUR 13 million in 2024. to put this adjustment in perspective on an adjusted basis morocco contributed an operating profit of eur 8 million compared to just under eur 13 million in 2024 Amortization of intangibles with acquired businesses from continuing operations increased by EUR 2.8 million during the period. amortization of intangibles with acquired businesses from continuing operations increased by eur 2.8 million during the period This represents the annual charge for intangibles, such as acquired brands and customer contracts. this represents the annual charge for intangibles such as acquired brands and customer contracts This happens every year. this happens every year Finally, as part of our strategic initiatives to stabilize and improve the group's performance, we invested EUR 35 million on restructuring and streamlining costs and also some transaction fees related to the school bus disposal. finally as part of our strategic initiatives to stabilize and improve the group's performance we invested eur 35 million on restructuring and streamlining costs and also some transaction fees related to the school bus disposal The year-end cash impact for restructuring was EUR 29.8 million. the year-end cash impact for restructuring was eur 29.8 million Overall, there was a cash outflow due to adjusting items in the period. overall there was a cash outflow due to adjusting items in the period This figure includes adjusting items for discontinued operations. this figure includes adjusting items for discontinued operations Now turning to our balance sheet, provisions at the bottom of this slide. now turning to our balance sheet provisions at the bottom of this slide We currently have EUR 133 million remaining on the German OCP. We will reevaluate the provision for our 15-month audited results, as will be dependent upon the finalization of the legally binding agreements with the PTAs, which are due to be signed before the 30th of June. Of the EUR 47 million remaining provision for WeDriveU, we expect to utilize EUR 8 million in 2026. Again, as I mentioned, this is still subject to the legal process. Moving to our divisional breakdown. ALSA was our most significant growth driver, with revenue increasing by just under 13% to reach the EUR 1.5 billion mark, and operating profit increased by 14% to EUR 112 million. As I've already mentioned, underpinning these numbers is strong underlying demand in Spain. We currently have EUR 133 million remaining on the German OCP. we currently have eur 133 million remaining on the german ocp We will reevaluate the provision for our 15-month audited results, as will be dependent upon the finalization of the legally binding agreements with the PTAs, which are due to be signed before the 30th of June. we will reevaluate the provision for our 15-month audited results as will be dependent upon the finalization of the legally binding agreements with the ptas which are due to be signed before the 30th of june Of the EUR 47 million remaining provision for WeDriveU, we expect to utilize EUR 8 million in 2026. of the eur 47 million remaining provision for wedriveu we expect to utilize eur 8 million in 2026 Again, as I mentioned, this is still subject to the legal process. again as i mentioned this is still subject to the legal process Moving to our divisional breakdown. moving to our divisional breakdown ALSA was our most significant growth driver, with revenue increasing by just under 13% to reach the EUR 1.5 billion mark, and operating profit increased by 14% to EUR 112 million. alsa was our most significant growth driver with revenue increasing by just under 13% to reach the eur 1.5 billion mark and operating profit increased by 14% to eur 112 million As I've already mentioned, underpinning these numbers is strong underlying demand in Spain. as i've already mentioned underpinning these numbers is strong underlying demand in spain Both regional and long-distance sectors are performing well, supported by a better expected trading environment, particularly towards the end of the year. In WeDriveU, revenue increased by just under 5% to EUR 432 million, driven by new contract wins, and as again, as I mentioned, both in shuttle and in transit businesses. The full-year profit remained below 2024 levels due to challenges with WMATA contract and the Carter contract, which has now been exited, which Phil mentioned in his presentation. We saw a meaningful change in the second half of the WMATA performance, with WeDriveU improving to a GBP 17.6 million profit in H2. This recovery is expected to continue in 2026. Both regional and long-distance sectors are performing well, supported by a better expected trading environment, particularly towards the end of the year. both regional and long-distance sectors are performing well supported by a better expected trading environment particularly towards the end of the year In WeDriveU, revenue increased by just under 5% to EUR 432 million, driven by new contract wins, and as again, as I mentioned, both in shuttle and in transit businesses. in wedriveu revenue increased by just under 5% to eur 432 million driven by new contract wins and as again as i mentioned both in shuttle and in transit businesses The full-year profit remained below 2024 levels due to challenges with WMATA contract and the Carter contract, which has now been exited, which Phil mentioned in his presentation. the full-year profit remained below 2024 levels due to challenges with wmata contract and the carter contract which has now been exited which phil mentioned in his presentation We saw a meaningful change in the second half of the WMATA performance, with WeDriveU improving to a GBP 17.6 million profit in H2. we saw a meaningful change in the second half of the wmata performance with wedriveu improving to a gbp 17.6 million profit in h2 This recovery is expected to continue in 2026. this recovery is expected to continue in 2026 On the other hand, the U.K. business continues to face a very challenging environment but has shown great resilience, with revenue decreasing only 4.6%, to EUR 587 million, despite intense competition in the coach business. Breaking this down, U.K. Coach contributed EUR 350 million revenue, while U.K. Bus delivered EUR 272 million. Given the separation of the U.K. Coach as it has moved under ALSA, a profit split isn't available in these financial results. A breakdown will be provided in the full 15-month results ending the 31st of March. With ongoing competition in key routes, it has been a very difficult year for U.K. Coach, with revenues declining by 6.2%. Passenger numbers only fell by 3.8%. On the other hand, the U.K. business continues to face a very challenging environment but has shown great resilience, with revenue decreasing only 4.6%, to EUR 587 million, despite intense competition in the coach business. on the other hand the u.k business continues to face a very challenging environment but has shown great resilience with revenue decreasing only 4.6% to eur 587 million despite intense competition in the coach business Breaking this down, U.K. breaking this down u.k Coach contributed EUR 350 million revenue, while U.K. coach contributed eur 350 million revenue while u.k Bus delivered EUR 272 million. bus delivered eur 272 million Given the separation of the U.K. given the separation of the u.k Coach as it has moved under ALSA, a profit split isn't available in these financial results. coach as it has moved under alsa a profit split isn't available in these financial results A breakdown will be provided in the full 15-month results ending the 31st of March. a breakdown will be provided in the full 15-month results ending the 31st of march With ongoing competition in key routes, it has been a very difficult year for U.K. with ongoing competition in key routes it has been a very difficult year for u.k Coach, with revenues declining by 6.2%. coach with revenues declining by 6.2% Passenger numbers only fell by 3.8%. passenger numbers only fell by 3.8% On a positive note, the market appears to be growing and growing quite strongly. In U.K. Bus, revenues rose by 2.4%, and this is largely due to the fare increases that we implemented towards the end of June. The decline in passenger numbers reflects the wider problem right across the industry in the U.K. During the period, we also sold Acocks Green Depot and Oak Road. This resulted in a EUR 4.3 million increase in the adjusted operating profit for the 12 months. Overall, the U.K. reported a EUR 4.6 million operating loss, as I said, largely due to the competitive pressures in U.K. Coach, also combined with a rise in employer National Insurance costs. On a positive note, the market appears to be growing and growing quite strongly. on a positive note the market appears to be growing and growing quite strongly In U.K. in u.k Bus, revenues rose by 2.4%, and this is largely due to the fare increases that we implemented towards the end of June. bus revenues rose by 2.4% and this is largely due to the fare increases that we implemented towards the end of june The decline in passenger numbers reflects the wider problem right across the industry in the U.K. the decline in passenger numbers reflects the wider problem right across the industry in the u.k During the period, we also sold Acocks Green Depot and Oak Road. during the period we also sold acocks green depot and oak road This resulted in a EUR 4.3 million increase in the adjusted operating profit for the 12 months. this resulted in a eur 4.3 million increase in the adjusted operating profit for the 12 months Overall, the U.K. reported a EUR 4.6 million operating loss, as I said, largely due to the competitive pressures in U.K. overall the u.k reported a eur 4.6 million operating loss as i said largely due to the competitive pressures in u.k Coach, also combined with a rise in employer National Insurance costs. coach also combined with a rise in employer national insurance costs We expect to see this performance improve as we move into 2026, along with the benefits of integration into ALSA. In Germany, revenue decreased by 1.6% to EUR 253 million. Whilst the adjusted operating profit increased to EUR 15.6 million due to improved operational performance, this actually was very significant. We recovered from a loss to a profit-making position. The in-year losses on the RRX contract were EUR 56 million, this is a cash outflow, which, this is the significance of the German contracts that we're in the process of finalizing. Central function costs increased by EUR 2.3 million, principally due to higher costs related to professional services and including a higher audit fee. We expect to see this performance improve as we move into 2026, along with the benefits of integration into ALSA. we expect to see this performance improve as we move into 2026 along with the benefits of integration into alsa In Germany, revenue decreased by 1.6% to EUR 253 million. in germany revenue decreased by 1.6% to eur 253 million Whilst the adjusted operating profit increased to EUR 15.6 million due to improved operational performance, this actually was very significant. whilst the adjusted operating profit increased to eur 15.6 million due to improved operational performance this actually was very significant We recovered from a loss to a profit-making position. we recovered from a loss to a profit-making position The in-year losses on the RRX contract were EUR 56 million, this is a cash outflow, which, this is the significance of the German contracts that we're in the process of finalizing. the in-year losses on the rrx contract were eur 56 million this is a cash outflow which this is the significance of the german contracts that we're in the process of finalizing Central function costs increased by EUR 2.3 million, principally due to higher costs related to professional services and including a higher audit fee. central function costs increased by eur 2.3 million principally due to higher costs related to professional services and including a higher audit fee However, this more, this sort of hides the underlying cost savings that have been made during the year. Looking forward to 2026, we expect us to maintain current levels of performance. For WeDriveU, we expect continued underlying recovery, whilst we continue to redress WMATA through the legal process. By integrating U.K. Coach into ALSA, the business is becoming more competitive. Nevertheless, we expect 2006 to be a challenging year. U.K. Bus is expected to be at breakeven, subject to finalization of funding discussions with Transport for West Midlands. In Germany, our rail business is benefiting from operational improvements and will be de-risked once we have the PTA agreement signed by the 13th of June. However, this more, this sort of hides the underlying cost savings that have been made during the year. however this more this sort of hides the underlying cost savings that have been made during the year Looking forward to 2026, we expect us to maintain current levels of performance. looking forward to 2026 we expect us to maintain current levels of performance For WeDriveU, we expect continued underlying recovery, whilst we continue to redress WMATA through the legal process. for wedriveu we expect continued underlying recovery whilst we continue to redress wmata through the legal process By integrating U.K. by integrating u.k Coach into ALSA, the business is becoming more competitive. coach into alsa the business is becoming more competitive Nevertheless, we expect 2006 to be a challenging year. nevertheless we expect 2006 to be a challenging year U.K. u.k Bus is expected to be at breakeven, subject to finalization of funding discussions with Transport for West Midlands. bus is expected to be at breakeven subject to finalization of funding discussions with transport for west midlands In Germany, our rail business is benefiting from operational improvements and will be de-risked once we have the PTA agreement signed by the 13th of June. in germany our rail business is benefiting from operational improvements and will be de-risked once we have the pta agreement signed by the 13th of june By the way, that's important to mention that the revised contracts will be backdated and effective from the 1st of January, 2026. In respect of central functions, we expect further cost reductions. Moving to our cash flow performance for the period, the most important point to highlight is the impact of School Bus, which is shown in the middle column. In 2025, School Bus was a significant drag on group liquidity prior to its disposal. The School Bus cash outflow was driven by substantial investment in CapEx and working capital requirements that were committed in 2024. Excluding School Bus, the group free cash flow was EUR 76 million. Key year-on-year movements include a working capital net inflow due to the timing of cash collections in ALSA. By the way, that's important to mention that the revised contracts will be backdated and effective from the 1st of January, 2026. by the way that's important to mention that the revised contracts will be backdated and effective from the 1st of january 2026 In respect of central functions, we expect further cost reductions. in respect of central functions we expect further cost reductions Moving to our cash flow performance for the period, the most important point to highlight is the impact of School Bus, which is shown in the middle column. moving to our cash flow performance for the period the most important point to highlight is the impact of school bus which is shown in the middle column In 2025, School Bus was a significant drag on group liquidity prior to its disposal. in 2025 school bus was a significant drag on group liquidity prior to its disposal The School Bus cash outflow was driven by substantial investment in CapEx and working capital requirements that were committed in 2024. the school bus cash outflow was driven by substantial investment in capex and working capital requirements that were committed in 2024 Excluding School Bus, the group free cash flow was EUR 76 million. excluding school bus the group free cash flow was eur 76 million Key year-on-year movements include a working capital net inflow due to the timing of cash collections in ALSA. key year-on-year movements include a working capital net inflow due to the timing of cash collections in alsa The increase in tax is due to a one-off refund because of the change in tax law, which significantly reduced our cash tax payments in 2024. We are looking-- we have an ongoing project to look at managing our tax burden, as one of the problems we have is that our debt is sitting in the U.K., most of our profits are in Spain, and therefore, we don't have an offset for interest. We are targeting a total CapEx of EUR 120 million for 2026. This reflects our commitment to disciplined spending, maximizing cash conversion as we move forward, and Phil has mentioned this in his presentation, and Phil is... or Paco is also going to mention it his. There is very strict CapEx control now in the organization. The increase in tax is due to a one-off refund because of the change in tax law, which significantly reduced our cash tax payments in 2024. the increase in tax is due to a one-off refund because of the change in tax law which significantly reduced our cash tax payments in 2024 We are looking-- we have an ongoing project to look at managing our tax burden, as one of the problems we have is that our debt is sitting in the U.K., most of our profits are in Spain, and therefore, we don't have an offset for interest. we are looking-- we have an ongoing project to look at managing our tax burden as one of the problems we have is that our debt is sitting in the u.k most of our profits are in spain and therefore we don't have an offset for interest We are targeting a total CapEx of EUR 120 million for 2026. we are targeting a total capex of eur 120 million for 2026 This reflects our commitment to disciplined spending, maximizing cash conversion as we move forward, and Phil has mentioned this in his presentation, and Phil is... or Paco is also going to mention it his. this reflects our commitment to disciplined spending maximizing cash conversion as we move forward and phil has mentioned this in his presentation and phil is or paco is also going to mention it his There is very strict CapEx control now in the organization. there is very strict capex control now in the organization However, despite the strong CapEx control, we are able to pursue new growth opportunities, focusing on CapEx-light contracts. In terms of net debt, we saw a EUR 286 million inflow, reflecting the cash proceeds from the School Bus disposal. We recorded a cash outflow of EUR 180 million related to items excluded from our adjusted results, and I talked through these earlier in the presentation. It should be noted that we have paid the Hybrid Bond coupon for 2025, which is the last payment at EUR 21 million. The next payment due is EUR 40 million, which is in February 2027. There was a EUR 9.6 million outflow from other items, primarily driven by exchange movements and derivative settlements. This is partly offset by the sale of an investment. However, despite the strong CapEx control, we are able to pursue new growth opportunities, focusing on CapEx-light contracts. however despite the strong capex control we are able to pursue new growth opportunities focusing on capex-light contracts In terms of net debt, we saw a EUR 286 million inflow, reflecting the cash proceeds from the School Bus disposal. in terms of net debt we saw a eur 286 million inflow reflecting the cash proceeds from the school bus disposal We recorded a cash outflow of EUR 180 million related to items excluded from our adjusted results, and I talked through these earlier in the presentation. we recorded a cash outflow of eur 180 million related to items excluded from our adjusted results and i talked through these earlier in the presentation It should be noted that we have paid the Hybrid Bond coupon for 2025, which is the last payment at EUR 21 million. it should be noted that we have paid the hybrid bond coupon for 2025 which is the last payment at eur 21 million The next payment due is EUR 40 million, which is in February 2027. the next payment due is eur 40 million which is in february 2027 There was a EUR 9.6 million outflow from other items, primarily driven by exchange movements and derivative settlements. there was a eur 9.6 million outflow from other items primarily driven by exchange movements and derivative settlements This is partly offset by the sale of an investment. this is partly offset by the sale of an investment When we pull all of this together, the group achieved total net funds inflow of EUR 127 million for the period. The funds inflow has offset the loss of School Bus EBITDA, resulting in a covenant gearing improving to 2.7. I should mention that the covenant gearing for the 15 months will be dependent on a number of factors, including the German rail agreement, which has quite complicated accounting implications. However, we can confirm that we will be within the covenant requirement. In terms of debt maturity, at the 31st of December, 2025, the RCFs were all undrawn, and we had nearly EUR 900 million in total between cash and drawn committed facilities available to us. The majority of our RCF will only expire in 2029. When we pull all of this together, the group achieved total net funds inflow of EUR 127 million for the period. when we pull all of this together the group achieved total net funds inflow of eur 127 million for the period The funds inflow has offset the loss of School Bus EBITDA, resulting in a covenant gearing improving to 2.7. the funds inflow has offset the loss of school bus ebitda resulting in a covenant gearing improving to 2.7 I should mention that the covenant gearing for the 15 months will be dependent on a number of factors, including the German rail agreement, which has quite complicated accounting implications. i should mention that the covenant gearing for the 15 months will be dependent on a number of factors including the german rail agreement which has quite complicated accounting implications However, we can confirm that we will be within the covenant requirement. however we can confirm that we will be within the covenant requirement In terms of debt maturity, at the 31st of December, 2025, the RCFs were all undrawn, and we had nearly EUR 900 million in total between cash and drawn committed facilities available to us. in terms of debt maturity at the 31st of december 2025 the rcfs were all undrawn and we had nearly eur 900 million in total between cash and drawn committed facilities available to us The majority of our RCF will only expire in 2029. the majority of our rcf will only expire in 2029 Notably, the interest rates on our instruments are relatively attractive, and we have significantly reduced our exposure to interest rate volatility, with over 90% of our debt now at fixed rates. In fact, 94%. We have sufficient liquidity to meet our debt maturities arising in 2027. Finally, just to talk through. Well, sorry, well, almost finally. I want to briefly walk through our financial calendar for 2026. As you may have noted, we have adjusted our 2025 and 2026 accounting periods following the appointment of KPMG as our new auditor, which took place in November. These changes are designed to provide KPMG with sufficient time to complete their audit work. However, we do plan to return to a December 31st year-end in 2026. Notably, the interest rates on our instruments are relatively attractive, and we have significantly reduced our exposure to interest rate volatility, with over 90% of our debt now at fixed rates. notably the interest rates on our instruments are relatively attractive and we have significantly reduced our exposure to interest rate volatility with over 90% of our debt now at fixed rates In fact, 94%. in fact 94% We have sufficient liquidity to meet our debt maturities arising in 2027. we have sufficient liquidity to meet our debt maturities arising in 2027 Finally, just to talk through. finally just to talk through Well, sorry, well, almost finally. well sorry well almost finally I want to briefly walk through our financial calendar for 2026. i want to briefly walk through our financial calendar for 2026 As you may have noted, we have adjusted our 2025 and 2026 accounting periods following the appointment of KPMG as our new auditor, which took place in November. as you may have noted we have adjusted our 2025 and 2026 accounting periods following the appointment of kpmg as our new auditor which took place in november These changes are designed to provide KPMG with sufficient time to complete their audit work. these changes are designed to provide kpmg with sufficient time to complete their audit work However, we do plan to return to a December 31st year-end in 2026. however we do plan to return to a december 31st year-end in 2026 Our current financial year will be for a period of 15 months to the 31st of March 2026. We expect to release our audit results in late June, early July. Looking into the second half, we will report six-month interim results for the period ending September the 30th and expect to release those in late November. Finally, to bring us back into alignment with the standard calendar year, the final accounting period for 2026 will be a shortened nine-month period ending the 31st of December 2026. Results for the period are expected to be released in March of 2027, making a return to a normal 12-month December year-end. In terms of financial imperatives, the focus remains on ensuring our strong top-line growth translates to sustainable value creation. Our current financial year will be for a period of 15 months to the 31st of March 2026. our current financial year will be for a period of 15 months to the 31st of march 2026 We expect to release our audit results in late June, early July. we expect to release our audit results in late june early july Looking into the second half, we will report six-month interim results for the period ending September the 30th and expect to release those in late November. looking into the second half we will report six-month interim results for the period ending september the 30th and expect to release those in late november Finally, to bring us back into alignment with the standard calendar year, the final accounting period for 2026 will be a shortened nine-month period ending the 31st of December 2026. finally to bring us back into alignment with the standard calendar year the final accounting period for 2026 will be a shortened nine-month period ending the 31st of december 2026 Results for the period are expected to be released in March of 2027, making a return to a normal 12-month December year-end. results for the period are expected to be released in march of 2027 making a return to a normal 12-month december year-end In terms of financial imperatives, the focus remains on ensuring our strong top-line growth translates to sustainable value creation. in terms of financial imperatives the focus remains on ensuring our strong top-line growth translates to sustainable value creation As such, we've implemented a disciplined approach to cost control. Specifically, we are implementing controls over capital expenditure and working capital to maximize cash generation and reduce debt. As Phil mentioned, the mission is simply to succeed. To simplify, to succeed. Behind this, we have our Simplify for Success cost program, which is currently targeting EUR 75 million of cost savings in 2026, with a run rate of EUR 100 million from the end of 2026. We are targeting an adjusted operating profit of EUR 195 million-EUR 210 million in 2026. I note, and this is quite important, that this does not include the positive impact of the revised contract changes from the German rail businesses. As such, we've implemented a disciplined approach to cost control. as such we've implemented a disciplined approach to cost control Specifically, we are implementing controls over capital expenditure and working capital to maximize cash generation and reduce debt. specifically we are implementing controls over capital expenditure and working capital to maximize cash generation and reduce debt As Phil mentioned, the mission is simply to succeed. as phil mentioned the mission is simply to succeed To simplify, to succeed. to simplify to succeed Behind this, we have our Simplify for Success cost program, which is currently targeting EUR 75 million of cost savings in 2026, with a run rate of EUR 100 million from the end of 2026. behind this we have our simplify for success cost program which is currently targeting eur 75 million of cost savings in 2026 with a run rate of eur 100 million from the end of 2026 We are targeting an adjusted operating profit of EUR 195 million-EUR 210 million in 2026. we are targeting an adjusted operating profit of eur 195 million-eur 210 million in 2026 I note, and this is quite important, that this does not include the positive impact of the revised contract changes from the German rail businesses. i note and this is quite important that this does not include the positive impact of the revised contract changes from the german rail businesses Once these agreements become legally binding, which we expect will happen by 30th of June of this year, we will update our guidance. In summary, ALSA remains an engine of growth. WeDriveU is on a recovery path, and our U.K. and German businesses are leaner and more resilient. With EUR 75 million in targeted savings and an operating profit guidance of EUR 195 million-EUR 210 million, and positive net cash in 2026. I will now hand over to Paco, who will go through the operational review. Once these agreements become legally binding, which we expect will happen by 30th of June of this year, we will update our guidance. once these agreements become legally binding which we expect will happen by 30th of june of this year we will update our guidance In summary, ALSA remains an engine of growth. in summary alsa remains an engine of growth WeDriveU is on a recovery path, and our U.K. and German businesses are leaner and more resilient. wedriveu is on a recovery path and our u.k and german businesses are leaner and more resilient With EUR 75 million in targeted savings and an operating profit guidance of EUR 195 million-EUR 210 million, and positive net cash in 2026. with eur 75 million in targeted savings and an operating profit guidance of eur 195 million-eur 210 million and positive net cash in 2026 I will now hand over to Paco, who will go through the operational review. i will now hand over to paco who will go through the operational review

Speaker 6: We'll Squeeze through. We'll Squeeze through. we'll squeeze through

Speaker 5: Thank you. Hello, good morning. Thank you, Brian. Thank you, Phil. Thank you, all of you, for being here. For me, it's the first time I'm in the floor, and it's an honor to share some words with you. As you have noticed, I'm Spanish, but you probably don't know is that I'm from the south of Spain, and that means that my accent is a little bit poor, so apologies for that, but I hope you can understand me better. I'll try to give you more view on the operational side after all the numbers that Brian, and the strategy from Phil. Thank you. thank you Hello, good morning. hello good morning Thank you, Brian. thank you brian Thank you, Phil. thank you phil Thank you, all of you, for being here. thank you all of you for being here For me, it's the first time I'm in the floor, and it's an honor to share some words with you. for me it's the first time i'm in the floor and it's an honor to share some words with you As you have noticed, I'm Spanish, but you probably don't know is that I'm from the south of Spain, and that means that my accent is a little bit poor, so apologies for that, but I hope you can understand me better. as you have noticed i'm spanish but you probably don't know is that i'm from the south of spain and that means that my accent is a little bit poor so apologies for that but i hope you can understand me better I'll try to give you more view on the operational side after all the numbers that Brian, and the strategy from Phil. i'll try to give you more view on the operational side after all the numbers that brian and the strategy from phil I would like to say something a little bit different and that, well, this is ALSA, and you know that I know ALSA a little bit. I've been working for ALSA for 34 years, and I'm very proud, and the last 10 years as CEO. I would like to explain what is behind the figures of ALSA. I think it's important you to know what's the portfolio of the business that ALSA maintains at the moment. That you probably know that long-haul is like a jewel of the crowd, but long-haul is 17% of the company. It's just 17... Where we are growing more at the moment, where we are growing a lot in international. I would like to say something a little bit different and that, well, this is ALSA, and you know that I know ALSA a little bit. i would like to say something a little bit different and that well this is alsa and you know that i know alsa a little bit I've been working for ALSA for 34 years, and I'm very proud, and the last 10 years as CEO. i've been working for alsa for 34 years and i'm very proud and the last 10 years as ceo I would like to explain what is behind the figures of ALSA. i would like to explain what is behind the figures of alsa I think it's important you to know what's the portfolio of the business that ALSA maintains at the moment. i think it's important you to know what's the portfolio of the business that alsa maintains at the moment That you probably know that long-haul is like a jewel of the crowd, but long-haul is 17% of the company. that you probably know that long-haul is like a jewel of the crowd but long-haul is 17% of the company It's just 17... it's just 17 Where we are growing more at the moment, where we are growing a lot in international. where we are growing more at the moment where we are growing a lot in international That was almost zero five years ago, because Morocco is there. Also in the diversification area, that we are also improving. The largest part of the company right now is the regional one that is also under a concession, under franchises process. If you see the figures, we have managed to keep growing in a two digit in terms of revenue and also in terms of profit. The margin, to be honest, is unbelievable. I think is to achieve 14% margin is a bit challenging for the future. That was almost zero five years ago, because Morocco is there. that was almost zero five years ago because morocco is there Also in the diversification area, that we are also improving. also in the diversification area that we are also improving The largest part of the company right now is the regional one that is also under a concession, under franchises process. the largest part of the company right now is the regional one that is also under a concession under franchises process If you see the figures, we have managed to keep growing in a two digit in terms of revenue and also in terms of profit. if you see the figures we have managed to keep growing in a two digit in terms of revenue and also in terms of profit The margin, to be honest, is unbelievable. the margin to be honest is unbelievable I think is to achieve 14% margin is a bit challenging for the future. i think is to achieve 14% margin is a bit challenging for the future I would like to convey that it's been a record year for ALSA, not only in terms of revenue or profit or margin, but also number of passengers, customer satisfaction index, safety target, digital sales. It's a mix, a combination of all the factors that we are working in to get the strategy and the numbers done. A couple of points regarding the environment that ALSA, especially in Spain, are now involved. One is very important, is there is no direct impact in the figures, that is the approval of the Mobility Law in Spain. Just for you to know that the former Mobility Law took place in, if I'm not wrong, 1987. I would like to convey that it's been a record year for ALSA, not only in terms of revenue or profit or margin, but also number of passengers, customer satisfaction index, safety target, digital sales. i would like to convey that it's been a record year for alsa not only in terms of revenue or profit or margin but also number of passengers customer satisfaction index safety target digital sales It's a mix, a combination of all the factors that we are working in to get the strategy and the numbers done. it's a mix a combination of all the factors that we are working in to get the strategy and the numbers done A couple of points regarding the environment that ALSA, especially in Spain, are now involved. a couple of points regarding the environment that alsa especially in spain are now involved One is very important, is there is no direct impact in the figures, that is the approval of the Mobility Law in Spain. one is very important is there is no direct impact in the figures that is the approval of the mobility law in spain Just for you to know that the former Mobility Law took place in, if I'm not wrong, 1987. just for you to know that the former mobility law took place in if i'm not wrong 1987 That mean that it's a new law after 40 years. Why it's important that, well, is mobility is now a right in the for the citizens in Spain. It's not only a word, it's something that is like a new pillar of the well-being of the society in Spain, as the healthy or the patients. We have also now mobility on the top of the priorities of the government, and this is very important. Also, this new law secure the system of franchising and concession for long haul in Spain. As I said, I think it's very important. It's something that has been very controversial in the past, if regarding if it's going to be regulated or liberalized. Now with the new law, it's secure. That mean that it's a new law after 40 years. that mean that it's a new law after 40 years Why it's important that, well, is mobility is now a right in the for the citizens in Spain. why it's important that well is mobility is now a right in the for the citizens in spain It's not only a word, it's something that is like a new pillar of the well-being of the society in Spain, as the healthy or the patients. it's not only a word it's something that is like a new pillar of the well-being of the society in spain as the healthy or the patients We have also now mobility on the top of the priorities of the government, and this is very important. we have also now mobility on the top of the priorities of the government and this is very important Also, this new law secure the system of franchising and concession for long haul in Spain. also this new law secure the system of franchising and concession for long haul in spain As I said, I think it's very important. as i said i think it's very important It's something that has been very controversial in the past, if regarding if it's going to be regulated or liberalized. it's something that has been very controversial in the past if regarding if it's going to be regulated or liberalized Now with the new law, it's secure. now with the new law it's secure The other point is the strong support from the government, from this government, to the public transport, not only by the law, but also for the not, it's not subsidy. It's like, because it's not subsidies to the companies, it's to reduce price for the passengers to use more public transport. I think it's the current government that has put on the table million of euros to support all kind of transport: rail, coach, buses, and the rest. I think it's important you to know. My view on 2026 is very positive, and the first two months, I cannot show you the figures, but the starting of the year 2026 is also going, performing very well. The other point is the strong support from the government, from this government, to the public transport, not only by the law, but also for the not, it's not subsidy. the other point is the strong support from the government from this government to the public transport not only by the law but also for the not it's not subsidy It's like, because it's not subsidies to the companies, it's to reduce price for the passengers to use more public transport. it's like because it's not subsidies to the companies it's to reduce price for the passengers to use more public transport I think it's the current government that has put on the table million of euros to support all kind of transport: rail, coach, buses, and the rest. i think it's the current government that has put on the table million of euros to support all kind of transport rail coach buses and the rest I think it's important you to know. i think it's important you to know My view on 2026 is very positive, and the first two months, I cannot show you the figures, but the starting of the year 2026 is also going, performing very well. my view on 2026 is very positive and the first two months i cannot show you the figures but the starting of the year 2026 is also going performing very well Let me give you an example of growth in this is Qiddiya, the Saudi city on that. How can we growth in that contract is EUR 5 million, EUR 500 million contract in eight year, plus potential extension of two more. It's it fits exactly with the strategy of ALSA. It's asset-light, it's low risk, and it's a project that is absolutely scalable because this is one of it's the first Mia project that the Saudi government is building in the country. Let me give you an example of growth in this is Qiddiya, the Saudi city on that. let me give you an example of growth in this is qiddiya the saudi city on that How can we growth in that contract is EUR 5 million, EUR 500 million contract in eight year, plus potential extension of two more. how can we growth in that contract is eur 5 million eur 500 million contract in eight year plus potential extension of two more It's it fits exactly with the strategy of ALSA. it's it fits exactly with the strategy of alsa It's asset-light, it's low risk, and it's a project that is absolutely scalable because this is one of it's the first Mia project that the Saudi government is building in the country. it's asset-light it's low risk and it's a project that is absolutely scalable because this is one of it's the first mia project that the saudi government is building in the country The plan is to have 10 project like Qiddiya in the next year. We have the... We have been awarded in the first one. We are well positioned for the rest of the tendering process that will take place. It's also remarkable that we have won this contract competing in the, what I call the Champions League, because we were competing there with the French state-owned company, the Italian one, the Singaporean one. Well, the top of the top of the company and also that you see the size is also is not that high, as you can imagine as some of our competitors we met. We won the contract through technology and through innovation. The plan is to have 10 project like Qiddiya in the next year. the plan is to have 10 project like qiddiya in the next year We have the... we have the We have been awarded in the first one. we have been awarded in the first one We are well positioned for the rest of the tendering process that will take place. we are well positioned for the rest of the tendering process that will take place It's also remarkable that we have won this contract competing in the, what I call the Champions League, because we were competing there with the French state-owned company, the Italian one, the Singaporean one. it's also remarkable that we have won this contract competing in the what i call the champions league because we were competing there with the french state-owned company the italian one the singaporean one Well, the top of the top of the company and also that you see the size is also is not that high, as you can imagine as some of our competitors we met. well the top of the top of the company and also that you see the size is also is not that high as you can imagine as some of our competitors we met We won the contract through technology and through innovation. we won the contract through technology and through innovation For example, if you cannot see very well, but this, one of the main of the strong points in our offer is to build what we call the station for the future. That is a new concept of how people are going to move in the country. I think it's key that it's not a question of price, not only price, it's a question of technology, where we are the technical support for the government as well. We move to WeDriveU, as Brian mentioned, I think it's despite the total figures, the figure from H2 has been very, very positive. We have managed to change the trend that we had in the past. For example, if you cannot see very well, but this, one of the main of the strong points in our offer is to build what we call the station for the future. for example if you cannot see very well but this one of the main of the strong points in our offer is to build what we call the station for the future That is a new concept of how people are going to move in the country. that is a new concept of how people are going to move in the country I think it's key that it's not a question of price, not only price, it's a question of technology, where we are the technical support for the government as well. i think it's key that it's not a question of price not only price it's a question of technology where we are the technical support for the government as well We move to WeDriveU, as Brian mentioned, I think it's despite the total figures, the figure from H2 has been very, very positive. we move to wedriveu as brian mentioned i think it's despite the total figures the figure from h2 has been very very positive We have managed to change the trend that we had in the past. we have managed to change the trend that we had in the past You know, that from the H1, we had the separation process with the school bus. That has some cost. Now we are focused on the, once the separation has been made, we are focused on the strategy of cost and also to improve our operation and to have better margins on that. Also, as Brian and Phil mentioned, one of the main point is to get rid of the loss-making contract. We don't have much, as we manage in the States, almost 100 contracts, but there are three, four of them that are negative. We are in the process of avoiding all this risk for the future because that will make directly an improvement in the final figures. You know, that from the H1, we had the separation process with the school bus. you know that from the h1 we had the separation process with the school bus That has some cost. that has some cost Now we are focused on the, once the separation has been made, we are focused on the strategy of cost and also to improve our operation and to have better margins on that. now we are focused on the once the separation has been made we are focused on the strategy of cost and also to improve our operation and to have better margins on that Also, as Brian and Phil mentioned, one of the main point is to get rid of the loss-making contract. also as brian and phil mentioned one of the main point is to get rid of the loss-making contract We don't have much, as we manage in the States, almost 100 contracts, but there are three, four of them that are negative. we don't have much as we manage in the states almost 100 contracts but there are three four of them that are negative We are in the process of avoiding all this risk for the future because that will make directly an improvement in the final figures. we are in the process of avoiding all this risk for the future because that will make directly an improvement in the final figures Also, to say that it's in the States, where I pass a lot of times in the last year, there is a lot of room for improvement. Our market share in the state is very little. For example, one of our competitor have 10x the size of WeDriveU. That means we have a lot of place, and we are now entering some new areas of the industry, like universities, where I see very interesting through technology and through good performance. We're quite happy and about the future as well in 2026. If we go to U.K., I think it's we cannot share the figures from bus and coach, but I can give you some light on that. Also, to say that it's in the States, where I pass a lot of times in the last year, there is a lot of room for improvement. also to say that it's in the states where i pass a lot of times in the last year there is a lot of room for improvement Our market share in the state is very little. our market share in the state is very little For example, one of our competitor have 10x the size of WeDriveU. for example one of our competitor have 10x the size of wedriveu That means we have a lot of place, and we are now entering some new areas of the industry, like universities, where I see very interesting through technology and through good performance. that means we have a lot of place and we are now entering some new areas of the industry like universities where i see very interesting through technology and through good performance We're quite happy and about the future as well in 2026. we're quite happy and about the future as well in 2026 If we go to U.K., I think it's we cannot share the figures from bus and coach, but I can give you some light on that. if we go to u.k i think it's we cannot share the figures from bus and coach but i can give you some light on that On the bus is where a slight increase on revenue, but it's true that the passengers are going down. Not that much, this I think is in the same trend that all the urban industry in U.K. are doing, are suffering right now. I think well, positive news is we have managed with the authority to secure the fundings in order not to, in order to have at least, I would say, break even in 2025 and, of course, in 2026. Also very important in the coach that I would define the integration, U.K. coach and ALSA is completely success. On the bus is where a slight increase on revenue, but it's true that the passengers are going down. on the bus is where a slight increase on revenue but it's true that the passengers are going down Not that much, this I think is in the same trend that all the urban industry in U.K. are doing, are suffering right now. not that much this i think is in the same trend that all the urban industry in u.k are doing are suffering right now I think well, positive news is we have managed with the authority to secure the fundings in order not to, in order to have at least, I would say, break even in 2025 and, of course, in 2026. i think well positive news is we have managed with the authority to secure the fundings in order not to in order to have at least i would say break even in 2025 and of course in 2026 Also very important in the coach that I would define the integration, U.K. coach and ALSA is completely success. also very important in the coach that i would define the integration u.k coach and alsa is completely success Here I can see Javier, who is in charge of U.K. coaching in Birmingham, we are in just less than six months, we have changed a lot of things. Again, if we go to the numbers, the decline on passengers in long haul has been less than 4%. If you consider that our competitor, our main competitor in long haul, has double the size of the flights and the routes that they are operating. our less in passengers is very, very little. We still have the majority market share in long haul by far to our competitor. Here I can see Javier, who is in charge of U.K. coaching in Birmingham, we are in just less than six months, we have changed a lot of things. here i can see javier who is in charge of u.k coaching in birmingham we are in just less than six months we have changed a lot of things Again, if we go to the numbers, the decline on passengers in long haul has been less than 4%. again if we go to the numbers the decline on passengers in long haul has been less than 4% If you consider that our competitor, our main competitor in long haul, has double the size of the flights and the routes that they are operating. our less in passengers is very, very little. if you consider that our competitor our main competitor in long haul has double the size of the flights and the routes that they are operating our less in passengers is very very little We still have the majority market share in long haul by far to our competitor. we still have the majority market share in long haul by far to our competitor We have also a very clear strategy on focusing on specific routes with the new pricing tool on technology that we have completely changed, a new structure that we have put in place, leaner, more close to the ground, to know the problems, and to have several areas depending on the different products that Javier is running there. For example, we have a clear vision that we need to grow in airports, that we are in the overall figures, we are growing a lot. Of course, we are tackling with massive savings, with no impact on safety, not impact at all in the operational excellence. We have also a very clear strategy on focusing on specific routes with the new pricing tool on technology that we have completely changed, a new structure that we have put in place, leaner, more close to the ground, to know the problems, and to have several areas depending on the different products that Javier is running there. we have also a very clear strategy on focusing on specific routes with the new pricing tool on technology that we have completely changed a new structure that we have put in place leaner more close to the ground to know the problems and to have several areas depending on the different products that javier is running there For example, we have a clear vision that we need to grow in airports, that we are in the overall figures, we are growing a lot. for example we have a clear vision that we need to grow in airports that we are in the overall figures we are growing a lot Of course, we are tackling with massive savings, with no impact on safety, not impact at all in the operational excellence. of course we are tackling with massive savings with no impact on safety not impact at all in the operational excellence Also, very optimistic regarding 2026, that we can manage to reverse the situation that we have. Finally, Germany, I think is, Phil mentioned, I think is, several milestone. For the first time, we have, we are running 100% of the services after years. What is even more important, we have achieved the number of drivers that we need. You know, that we have a shortfall in drivers in the last year that made us some penalties with the PTA. Also, very optimistic regarding 2026, that we can manage to reverse the situation that we have. also very optimistic regarding 2026 that we can manage to reverse the situation that we have Finally, Germany, I think is, Phil mentioned, I think is, several milestone. finally germany i think is phil mentioned i think is several milestone For the first time, we have, we are running 100% of the services after years. for the first time we have we are running 100% of the services after years What is even more important, we have achieved the number of drivers that we need. what is even more important we have achieved the number of drivers that we need You know, that we have a shortfall in drivers in the last year that made us some penalties with the PTA. you know that we have a shortfall in drivers in the last year that made us some penalties with the pta Now, we have all the drivers, and what is more important, we have all the drivers with a lower cost, because you know that part of the driver that we were using in the past came from third parties, from agencies now and with a higher cost. Now, we are running all the operation with our own drivers. For 2026, I think it's very important because it's the year, not only because of the agreement with the PTA, that they are doing extremely well, but also because they are going to start the new process of bidding there. Now, we have all the drivers, and what is more important, we have all the drivers with a lower cost, because you know that part of the driver that we were using in the past came from third parties, from agencies now and with a higher cost. now we have all the drivers and what is more important we have all the drivers with a lower cost because you know that part of the driver that we were using in the past came from third parties from agencies now and with a higher cost Now, we are running all the operation with our own drivers. now we are running all the operation with our own drivers For 2026, I think it's very important because it's the year, not only because of the agreement with the PTA, that they are doing extremely well, but also because they are going to start the new process of bidding there. for 2026 i think it's very important because it's the year not only because of the agreement with the pta that they are doing extremely well but also because they are going to start the new process of bidding there I think we are in a, now in a very good position after the agreement with the drivers, with good KPIs in operation, to try to keep growing in that market that I see also very interesting for the future. I don't know if... Yes. This is my final slide. I would like to say that this is after one year working on the throughout the group five things that I have identified that we are working in the same page. These are facts. This is not only narrative. There is fact behind all this statement. First, all the division are performing better than last year, is this numbers. Second, is we have a huge opportunities of all around the world. I think we are in a, now in a very good position after the agreement with the drivers, with good KPIs in operation, to try to keep growing in that market that I see also very interesting for the future. i think we are in a now in a very good position after the agreement with the drivers with good kpis in operation to try to keep growing in that market that i see also very interesting for the future I don't know if... i don't know if Yes. yes This is my final slide. this is my final slide I would like to say that this is after one year working on the throughout the group five things that I have identified that we are working in the same page. i would like to say that this is after one year working on the throughout the group five things that i have identified that we are working in the same page These are facts. these are facts This is not only narrative. this is not only narrative There is fact behind all this statement. there is fact behind all this statement First, all the division are performing better than last year, is this numbers. first all the division are performing better than last year is this numbers Second, is we have a huge opportunities of all around the world. second is we have a huge opportunities of all around the world I mentioned Saudi, I mentioned States. We have also some other opportunities in some other places. The massive cost reduction that we are implementing all around the divisions, including ALSA, but also the rest of the divisions. We are going to work in the future, in the present. We are right now working in the present with a leaner and more efficiency base of cost. That gives us the opportunity to be more profitable. That is linked with the next point, that we are improving the margin of every single contract. We are avoiding totally loss-making contract. This is a process that we are going to finish in the next months. We are trying to get a little bit more of every single contract. I mentioned Saudi, I mentioned States. i mentioned saudi i mentioned states We have also some other opportunities in some other places. we have also some other opportunities in some other places The massive cost reduction that we are implementing all around the divisions, including ALSA, but also the rest of the divisions. the massive cost reduction that we are implementing all around the divisions including alsa but also the rest of the divisions We are going to work in the future, in the present. we are going to work in the future in the present We are right now working in the present with a leaner and more efficiency base of cost. we are right now working in the present with a leaner and more efficiency base of cost That gives us the opportunity to be more profitable. that gives us the opportunity to be more profitable That is linked with the next point, that we are improving the margin of every single contract. that is linked with the next point that we are improving the margin of every single contract We are avoiding totally loss-making contract. we are avoiding totally loss-making contract This is a process that we are going to finish in the next months. this is a process that we are going to finish in the next months We are trying to get a little bit more of every single contract. we are trying to get a little bit more of every single contract To gain 1% in every single contract, you can imagine that it has a huge impact on profit. Finally, probably this is not a fact, but it's not a number behind that. I've been working, as I said, with National Express in the past, for the last 20 years. For the first time, thanks to these guys, we are working as a group. Now it's not, there are four CEOs or vice president or whatever. We have the same protocols, we have the CapEx view, we have the same procedure for safety, we have everything. I think it's very important in order to get synergies from one part of the world to other. To gain 1% in every single contract, you can imagine that it has a huge impact on profit. to gain 1% in every single contract you can imagine that it has a huge impact on profit Finally, probably this is not a fact, but it's not a number behind that. finally probably this is not a fact but it's not a number behind that I've been working, as I said, with National Express in the past, for the last 20 years. i've been working as i said with national express in the past for the last 20 years For the first time, thanks to these guys, we are working as a group. for the first time thanks to these guys we are working as a group Now it's not, there are four CEOs or vice president or whatever. now it's not there are four ceos or vice president or whatever We have the same protocols, we have the CapEx view, we have the same procedure for safety, we have everything. we have the same protocols we have the capex view we have the same procedure for safety we have everything I think it's very important in order to get synergies from one part of the world to other. i think it's very important in order to get synergies from one part of the world to other For example, U.K. Coach, we are using the pricing technology of ALSA or but we have also exported some from the States, in terms of chattel to the business of transit, the business that we have started in Spain, for example. That's all I would like to end, thanking of you. Any question after Phil's conclusion? I want to convey that we, as a team, are strong. For example, U.K. for example u.k Coach, we are using the pricing technology of ALSA or but we have also exported some from the States, in terms of chattel to the business of transit, the business that we have started in Spain, for example. coach we are using the pricing technology of alsa or but we have also exported some from the states in terms of chattel to the business of transit the business that we have started in spain for example That's all I would like to end, thanking of you. that's all i would like to end thanking of you Any question after Phil's conclusion? any question after phil's conclusion I want to convey that we, as a team, are strong. i want to convey that we as a team are strong

Speaker 6: Mm-hmm. Mm-hmm. mm-hmm

Speaker 5: We are excited with the present and the future, and myself, very, very optimistic with 2026. We will see you in the next months again for a new presentation. you can check if I was right or wrong. Hope I was right. Thank you. My opinion. We are excited with the present and the future, and myself, very, very optimistic with 2026. we are excited with the present and the future and myself very very optimistic with 2026 We will see you in the next months again for a new presentation. you can check if I was right or wrong. we will see you in the next months again for a new presentation you can check if i was right or wrong Hope I was right. hope i was right Thank you. thank you My opinion. my opinion

Speaker 6: Just to conclude, special thanks to my buddies over here, Paco and Brian. Let me say, Paco, you have no need at all to apologize for your English. People can probably understand. Just to conclude, special thanks to my buddies over here, Paco and Brian. just to conclude special thanks to my buddies over here paco and brian Let me say, Paco, you have no need at all to apologize for your English. let me say paco you have no need at all to apologize for your english People can probably understand. people can probably understand

Speaker 5: Better than me. Better than me. better than me

Speaker 6: I'm not mentioning you. I don't understand a word you said. You know, Paco, your accent from the south of Spain is much easier for people to understand than my accent from the north of England. I can assure you that. Well done. That was a great presentation. I'm not mentioning you. i'm not mentioning you I don't understand a word you said. i don't understand a word you said You know, Paco, your accent from the south of Spain is much easier for people to understand than my accent from the north of England. you know paco your accent from the south of spain is much easier for people to understand than my accent from the north of england I can assure you that. i can assure you that Well done. well done That was a great presentation. that was a great presentation

Speaker 5: Thank you. Thank you. thank you

Speaker 6: Let's conclude. We're not going to keep you much longer with the presentations. I suppose to conclude the first half of the year, compared to that, we're in a much better position in the H2, and there's been a significant turnaround throughout the business, especially coming up in 2026. We've streamlined our business by getting rid of the corporate glue, as I say, and exiting loss-making operations. No point in running them if you're not making money. We are streamlining and simplifying, removing unnecessary layers and complexity. We're working smarter, becoming leaner, more agile, and better able to respond positively to market trends and opportunities. There's still lots and lots of opportunities out there for us. As Brian mentioned, costs and cash flow are now the key priorities for strengthening the business, and of course, we continue to seek every opportunity to deleverage. Let's conclude. let's conclude We're not going to keep you much longer with the presentations. we're not going to keep you much longer with the presentations I suppose to conclude the first half of the year, compared to that, we're in a much better position in the H2, and there's been a significant turnaround throughout the business, especially coming up in 2026. i suppose to conclude the first half of the year compared to that we're in a much better position in the h2 and there's been a significant turnaround throughout the business especially coming up in 2026 We've streamlined our business by getting rid of the corporate glue, as I say, and exiting loss-making operations. we've streamlined our business by getting rid of the corporate glue as i say and exiting loss-making operations No point in running them if you're not making money. no point in running them if you're not making money We are streamlining and simplifying, removing unnecessary layers and complexity. we are streamlining and simplifying removing unnecessary layers and complexity We're working smarter, becoming leaner, more agile, and better able to respond positively to market trends and opportunities. we're working smarter becoming leaner more agile and better able to respond positively to market trends and opportunities There's still lots and lots of opportunities out there for us. there's still lots and lots of opportunities out there for us As Brian mentioned, costs and cash flow are now the key priorities for strengthening the business, and of course, we continue to seek every opportunity to deleverage. as brian mentioned costs and cash flow are now the key priorities for strengthening the business and of course we continue to seek every opportunity to deleverage Everything we've discussed today is about creating a sustainable business. I spent the first six months of my tenure looking backwards, trying to fix things that had happened probably years ago. We're now no longer just looking backwards to manage challenges. We're rewiring and rebuilding our business to deliver long-term, profitable growth for our shareholders. For our millions of customers, we are committed to delivering what they deserve, and that's the best possible service we can provide. We are here for them, you know. They are not here for us, and that's important. In summary, we're fixing the businesses that need our focus. We are simplifying and integrating where it counts. Importantly, we are taking our people with us on this journey, retaining the brilliant talent that we have in our business, and I can tell you, we have some brilliant talent. I'm not just saying. Everything we've discussed today is about creating a sustainable business. everything we've discussed today is about creating a sustainable business I spent the first six months of my tenure looking backwards, trying to fix things that had happened probably years ago. i spent the first six months of my tenure looking backwards trying to fix things that had happened probably years ago We're now no longer just looking backwards to manage challenges. we're now no longer just looking backwards to manage challenges We're rewiring and rebuilding our business to deliver long-term, profitable growth for our shareholders. we're rewiring and rebuilding our business to deliver long-term profitable growth for our shareholders For our millions of customers, we are committed to delivering what they deserve, and that's the best possible service we can provide. for our millions of customers we are committed to delivering what they deserve and that's the best possible service we can provide We are here for them, you know. we are here for them you know They are not here for us, and that's important. they are not here for us and that's important In summary, we're fixing the businesses that need our focus. in summary we're fixing the businesses that need our focus We are simplifying and integrating where it counts. we are simplifying and integrating where it counts Importantly, we are taking our people with us on this journey, retaining the brilliant talent that we have in our business, and I can tell you, we have some brilliant talent. importantly we are taking our people with us on this journey retaining the brilliant talent that we have in our business and i can tell you we have some brilliant talent I'm not just saying. i'm not just saying That's easy to say. Working with these guys since I've joined, very young, and they make me feel young, too, and I love that. From the board up to the guys who turn out every day to run our buses, to run our coaches, and run our trains, whose jobs can be both very difficult and dangerous, we owe a lot to these guys. There are thousands of them who do this on a regular basis. Couple of thank yous. You know, thank you for coming along today, and thanks for the patience you've given us over the last 12 months or so. A very special thanks to our advisors over there, who support us all the time. That's easy to say. that's easy to say Working with these guys since I've joined, very young, and they make me feel young, too, and I love that. working with these guys since i've joined very young and they make me feel young too and i love that From the board up to the guys who turn out every day to run our buses, to run our coaches, and run our trains, whose jobs can be both very difficult and dangerous, we owe a lot to these guys. from the board up to the guys who turn out every day to run our buses to run our coaches and run our trains whose jobs can be both very difficult and dangerous we owe a lot to these guys There are thousands of them who do this on a regular basis. there are thousands of them who do this on a regular basis Couple of thank yous. couple of thank yous You know, thank you for coming along today, and thanks for the patience you've given us over the last 12 months or so. you know thank you for coming along today and thanks for the patience you've given us over the last 12 months or so A very special thanks to our advisors over there, who support us all the time. a very special thanks to our advisors over there who support us all the time Give us a nudge when we need it, pull us back when we need it, and stop us from saying silly things, which is mainly me when I'm feeling a bit crazy. You know, we couldn't do it without you guys, and we really, really appreciate it. You know, thanks for turning up today. I can tell you, I'm very looking forward to a number of site visits in Ibiza, right? Where I can show you our late night and early morning services, and I'm sure you'll enjoy it. You know, thanks very much for everything. Thank you. Over to Q&A. Gemma, are you going to manage this? Gerald, do you want to kick off? Gerald, be nice. Give us a nudge when we need it, pull us back when we need it, and stop us from saying silly things, which is mainly me when I'm feeling a bit crazy. give us a nudge when we need it pull us back when we need it and stop us from saying silly things which is mainly me when i'm feeling a bit crazy You know, we couldn't do it without you guys, and we really, really appreciate it. you know we couldn't do it without you guys and we really really appreciate it You know, thanks for turning up today. you know thanks for turning up today I can tell you, I'm very looking forward to a number of site visits in Ibiza, right? i can tell you i'm very looking forward to a number of site visits in ibiza right Where I can show you our late night and early morning services, and I'm sure you'll enjoy it. where i can show you our late night and early morning services and i'm sure you'll enjoy it You know, thanks very much for everything. you know thanks very much for everything Thank you. thank you Over to Q&A. over to q&a Gemma, are you going to manage this? gemma are you going to manage this Gerald, do you want to kick off? gerald do you want to kick off Gerald, be nice. gerald be nice

Speaker 2: Morning, everyone. Gerald Khoo from Panmure Liberum. I'll start with three, if I can. Morocco, can you talk us through what's gone wrong, when did it go wrong, and why has it led to such a large exceptional charge? On the topic of exceptionals, can you talk through, how much of those turn into cash? Let's assume WMATA does. I know you're-. Morning, everyone. morning everyone Gerald Khoo from Panmure Liberum. gerald khoo from panmure liberum I'll start with three, if I can. i'll start with three if i can Morocco, can you talk us through what's gone wrong, when did it go wrong, and why has it led to such a large exceptional charge? morocco can you talk us through what's gone wrong when did it go wrong and why has it led to such a large exceptional charge On the topic of exceptionals, can you talk through, how much of those turn into cash? on the topic of exceptionals can you talk through how much of those turn into cash Let's assume WMATA does. let's assume wmata does I know you're-. i know you're-

Speaker 5: Yeah Yeah yeah

Speaker 2: Confident that it won't. Then on, again, on the exceptionals, you've talked about more vis, sort of more cost reductions. What exceptional should we expect associated with that? Finally, on U.K. Bus asset monetization, I think you sold two depots. You gave us the gain. Are you able to give us the proceeds from those two sales? Confident that it won't. confident that it won't Then on, again, on the exceptionals, you've talked about more vis, sort of more cost reductions. then on again on the exceptionals you've talked about more vis sort of more cost reductions What exceptional should we expect associated with that? what exceptional should we expect associated with that Finally, on U.K. finally on u.k Bus asset monetization, I think you sold two depots. bus asset monetization i think you sold two depots You gave us the gain. you gave us the gain Are you able to give us the proceeds from those two sales? are you able to give us the proceeds from those two sales

Speaker 5: Right. Right. right

Speaker 2: How many depots have you got left? How many depots have you got left? how many depots have you got left

Speaker 6: Can you do the operational stuff in Morocco first, explaining what happened there? Brian, can you deal with the exceptional stuff? Can you do the operational stuff in Morocco first, explaining what happened there? can you do the operational stuff in morocco first explaining what happened there Brian, can you deal with the exceptional stuff? brian can you deal with the exceptional stuff

Speaker 5: Well, okay. Well, Well, okay. well okay Well, well

Speaker 6: I think your mic, your mic's working here, Paco. I think your mic, your mic's working here, Paco. i think your mic your mic's working here paco

Speaker 5: Okay, sorry. Okay, sorry. okay sorry

Speaker 6: You're all right. You're all right. you're all right

Speaker 5: Morocco. Just to put you in context, we started Morocco 1999, so it is 27 years ago. And we reached six operation in Morocco five years ago. So until more than 20 years, we did not reach the size of the business that we have. Now, we are running four cities, and we are running the first and the second cities in Morocco, that is Casablanca and Rabat, as you know. So I think it is part of our bidding process. Sometimes you win, sometimes you lose. This is nothing to be at fault, and we are still the largest urban operator in Morocco. Morocco. morocco Just to put you in context, we started Morocco 1999, so it is 27 years ago. just to put you in context we started morocco 1999 so it is 27 years ago And we reached six operation in Morocco five years ago. and we reached six operation in morocco five years ago So until more than 20 years, we did not reach the size of the business that we have. so until more than 20 years we did not reach the size of the business that we have Now, we are running four cities, and we are running the first and the second cities in Morocco, that is Casablanca and Rabat, as you know. now we are running four cities and we are running the first and the second cities in morocco that is casablanca and rabat as you know So I think it is part of our bidding process. so i think it is part of our bidding process Sometimes you win, sometimes you lose. sometimes you win sometimes you lose This is nothing to be at fault, and we are still the largest urban operator in Morocco. this is nothing to be at fault and we are still the largest urban operator in morocco What we have done with the exceptional is just to all the asset we have and the staff that we need to be out of the company because of the process of losing Tangier and Marrakech, this is the cost. If you ask me, are you optimistic in Morocco? We are making money in Morocco. We will make money in Morocco 2026. We have some opportunities in the future to keep growing. As at the largest operator there, it will be more difficult because now there are more big companies competing with us that we don't have in the past. We have also some areas that, I cannot say, but some areas of diversification where we can enter in the Moroccan market. My view is, it's being, of course, I prefer to win rather than to lose. I think it's part of the normal business, and I'm not especially worried, and I'm optimistic for the future in Morocco. What we have done with the exceptional is just to all the asset we have and the staff that we need to be out of the company because of the process of losing Tangier and Marrakech, this is the cost. what we have done with the exceptional is just to all the asset we have and the staff that we need to be out of the company because of the process of losing tangier and marrakech this is the cost If you ask me, are you optimistic in Morocco? if you ask me are you optimistic in morocco We are making money in Morocco. we are making money in morocco We will make money in Morocco 2026. we will make money in morocco 2026 We have some opportunities in the future to keep growing. we have some opportunities in the future to keep growing As at the largest operator there, it will be more difficult because now there are more big companies competing with us that we don't have in the past. as at the largest operator there it will be more difficult because now there are more big companies competing with us that we don't have in the past We have also some areas that, I cannot say, but some areas of diversification where we can enter in the Moroccan market. we have also some areas that i cannot say but some areas of diversification where we can enter in the moroccan market My view is, it's being, of course, I prefer to win rather than to lose. my view is it's being of course i prefer to win rather than to lose I think it's part of the normal business, and I'm not especially worried, and I'm optimistic for the future in Morocco. i think it's part of the normal business and i'm not especially worried and i'm optimistic for the future in morocco

Speaker 6: I think when you're operating a successful business, and you grow it to the extent that we did, there's always a lot of people, a lot of competitors who want a share of it. They'll come in and take it, whatever business you're in, whatever profits you're making. I think that's what's happened to us in Morocco. On the numbers, Brian. I think when you're operating a successful business, and you grow it to the extent that we did, there's always a lot of people, a lot of competitors who want a share of it. i think when you're operating a successful business and you grow it to the extent that we did there's always a lot of people a lot of competitors who want a share of it They'll come in and take it, whatever business you're in, whatever profits you're making. they'll come in and take it whatever business you're in whatever profits you're making I think that's what's happened to us in Morocco. i think that's what's happened to us in morocco On the numbers, Brian. on the numbers brian

Speaker 1: In Morocco, I mean, we had a provision of just roughly EUR 20 million at the half year. Then in the second half of the year, we had this issue where the authorities ended a contract, and we had to impair some of the assets. In terms of the other questions, the sales of the depots, we sold two depots, just over EUR 4 million, the proceeds from those. Then we looked to monetize the rest of the U.K. Bus business. That was all that we had at the end of the year. On the exceptionals for the cost restructuring, we don't have a number for this year. At the moment, we're working through more cost takeout. We'll give more guidance on that for the at the 15-month stage. We'll have a better handle on that. In Morocco, I mean, we had a provision of just roughly EUR 20 million at the half year. in morocco i mean we had a provision of just roughly eur 20 million at the half year Then in the second half of the year, we had this issue where the authorities ended a contract, and we had to impair some of the assets. then in the second half of the year we had this issue where the authorities ended a contract and we had to impair some of the assets In terms of the other questions, the sales of the depots, we sold two depots, just over EUR 4 million, the proceeds from those. in terms of the other questions the sales of the depots we sold two depots just over eur 4 million the proceeds from those Then we looked to monetize the rest of the U.K. then we looked to monetize the rest of the u.k Bus business. bus business That was all that we had at the end of the year. that was all that we had at the end of the year On the exceptionals for the cost restructuring, we don't have a number for this year. on the exceptionals for the cost restructuring we don't have a number for this year At the moment, we're working through more cost takeout. at the moment we're working through more cost takeout We'll give more guidance on that for the at the 15-month stage. we'll give more guidance on that for the at the 15-month stage We'll have a better handle on that. we'll have a better handle on that The final one was the adjustments. I can very quickly go through them. I mean, obviously, the WeDriveU contract provision, which you mentioned. I mean, we do absolutely expect to be successful at litigation. I mean, that there will be a cash cost if we were unsuccessful, but that certainly is not what we expect, and the legal advice is very solid. On the legal claims, that will end up being cash because it's a provision for settlements. On the intangibles, that's non-cash, the write-down, and the restructuring cost that is mainly cash. The final one was the adjustments. the final one was the adjustments I can very quickly go through them. i can very quickly go through them I mean, obviously, the WeDriveU contract provision, which you mentioned. i mean obviously the wedriveu contract provision which you mentioned I mean, we do absolutely expect to be successful at litigation. i mean we do absolutely expect to be successful at litigation I mean, that there will be a cash cost if we were unsuccessful, but that certainly is not what we expect, and the legal advice is very solid. i mean that there will be a cash cost if we were unsuccessful but that certainly is not what we expect and the legal advice is very solid On the legal claims, that will end up being cash because it's a provision for settlements. on the legal claims that will end up being cash because it's a provision for settlements On the intangibles, that's non-cash, the write-down, and the restructuring cost that is mainly cash. on the intangibles that's non-cash the write-down and the restructuring cost that is mainly cash

Speaker 2: Morocco? Morocco? morocco

Speaker 1: Morocco, going forward, that is really the in terms of a go-forward, that isn't an impact because that's a provision against... In other words, we're not going to recover that debt. That debt is now gone. It's not a cash. It's not a. The debt has disappeared effectively. Morocco, going forward, that is really the in terms of a go-forward, that isn't an impact because that's a provision against... morocco going forward that is really the in terms of a go-forward that isn't an impact because that's a provision against In other words, we're not going to recover that debt. in other words we're not going to recover that debt That debt is now gone. that debt is now gone It's not a cash. it's not a cash It's not a. it's not a The debt has disappeared effectively. the debt has disappeared effectively

Speaker 6: Gerald, on the West Midlands depots, one is a depot, Acocks Green. It's very old, in need of a lot of maintenance, and the other property was a bit of car parking land. It's one bus garage and a bit of land. Gerald, on the West Midlands depots, one is a depot, Acocks Green. gerald on the west midlands depots one is a depot acocks green It's very old, in need of a lot of maintenance, and the other property was a bit of car parking land. it's very old in need of a lot of maintenance and the other property was a bit of car parking land It's one bus garage and a bit of land. it's one bus garage and a bit of land

Speaker 2: Sounds like it was in the books at nil. Sounds like it was in the books at nil. sounds like it was in the books at nil

Speaker 6: Sorry? Sorry? sorry

Speaker 2: Sounds like it was, they were in the books at virtually nil, if you- Sounds like it was, they were in the books at virtually nil, if you- sounds like it was they were in the books at virtually nil if you-

Speaker 6: Yeah. Yeah. yeah

Speaker 1: Yeah. Yeah. yeah

Speaker 6: Yeah. Yeah. yeah

Speaker 1: it was a bit more, a little bit more than that, but it [crosstalk] it was a bit more, a little bit more than that, but it [crosstalk] it was a bit more a little bit more than that but it [crosstalk]

Speaker 6: There was no write down, was there? There was no write down, was there? there was no write down was there

Speaker 1: No, no. We made a profit. We made a profit. We made a profit of EUR 4 million. I think it was in the books, it was about EUR 7 million. Yeah, EUR 7 million it was in the books. No, no. no no We made a profit. we made a profit We made a profit. we made a profit we We made a profit of EUR 4 million. a profit we made a profit of eur 4 million I think it was in the books, it was about EUR 7 million . i think it was in the books it was about eur 7 million Yeah, EUR 7 million it was in the books. yeah eur 7 million it was in the books

Speaker 4: Muneeba Kayani, Bank of America. Firstly, just on your guidance, the low end implies a decline in profits at EBIT. Can you explain how you've thought about that and the range, like the bottom and top-end scenarios? Secondly, on ALSA, if I understand your outlook, you are saying kind of maintain profitability. Is that a comment on the margin, given the strong margin that you saw last year? You still expect top-line growth? If you could just clarify kind of the moving parts between the top line and the margin outlook on ALSA for 2026, as you've thought about it. Muneeba Kayani , Bank of America. muneeba kayani bank of america Firstly, just on your guidance, the low end implies a decline in profits at EBIT. firstly just on your guidance the low end implies a decline in profits at ebit Can you explain how you've thought about that and the range, like the bottom and top-end scenarios? can you explain how you've thought about that and the range like the bottom and top-end scenarios Secondly, on ALSA, if I understand your outlook, you are saying kind of maintain profitability. secondly on alsa if i understand your outlook you are saying kind of maintain profitability Is that a comment on the margin, given the strong margin that you saw last year? is that a comment on the margin given the strong margin that you saw last year You still expect top-line growth? you still expect top-line growth If you could just clarify kind of the moving parts between the top line and the margin outlook on ALSA for 2026, as you've thought about it. if you could just clarify kind of the moving parts between the top line and the margin outlook on alsa for 2026 as you've thought about it

Speaker 1: Yeah. I'll give, and I might ask Paco for some help on the second one. For the first question, you know, we've taken a view on the guidance for next year. We felt it was right to start at the more or less where we ended this year, I guess, or very slightly below. I mean, we certainly hope to do better than the minimum, but that is where we felt being sensible about guidance was the right place to be. What we don't want to do, which has been a constant theme in the past, is where we give guidance and then miss it. We want to give guidance that we very firmly believe that we can achieve. And then on... Yeah. yeah I'll give, and I might ask Paco for some help on the second one. i'll give and i might ask paco for some help on the second one For the first question, you know, we've taken a view on the guidance for next year. for the first question you know we've taken a view on the guidance for next year We felt it was right to start at the more or less where we ended this year, I guess, or very slightly below. we felt it was right to start at the more or less where we ended this year i guess or very slightly below I mean, we certainly hope to do better than the minimum, but that is where we felt being sensible about guidance was the right place to be. i mean we certainly hope to do better than the minimum but that is where we felt being sensible about guidance was the right place to be What we don't want to do, which has been a constant theme in the past, is where we give guidance and then miss it. what we don't want to do which has been a constant theme in the past is where we give guidance and then miss it We want to give guidance that we very firmly believe that we can achieve. And then on... we want to give guidance that we very firmly believe that we can achieve. and then on

Speaker 6: Margins. Margins. margins

Speaker 1: On the margins, you know, ALSA had an extraordinarily strong performance this year. Again, you know, maintaining that performance, and, you know, there are some challenges, for example, Morocco, we've just discussed. Making sure that we can, you know, maintain that level of profitability going forward, I think is what we believe is achievable. I mean, there are quite a lot of challenges within the mix of ALSA. I don't know whether you've anything to add. On the margins, you know, ALSA had an extraordinarily strong performance this year. on the margins you know alsa had an extraordinarily strong performance this year Again, you know, maintaining that performance, and, you know, there are some challenges, for example, Morocco, we've just discussed. again you know maintaining that performance and you know there are some challenges for example morocco we've just discussed Making sure that we can, you know, maintain that level of profitability going forward, I think is what we believe is achievable. making sure that we can you know maintain that level of profitability going forward i think is what we believe is achievable I mean, there are quite a lot of challenges within the mix of ALSA. i mean there are quite a lot of challenges within the mix of alsa I don't know whether you've anything to add. i don't know whether you've anything to add

Speaker 5: Yeah, yeah. Oh, okay. Of course, I said in the presentation that 14 is unbelievable. It's something that, even if you have asked me, one year ago, I would say that that's very, very difficult to achieve 14%. What I can say is that the trend in ALSA, that we are growing in terms of revenue through business as usual. Passengers, they are growing even two digits, thanks to a lot of things, but also because we are winning new contracts. For example, in that figures is not included the Qiddiya contract, or it's not included the new contract that we are going to start in Ibiza or some other places, or Guadalajara. Yeah, yeah. yeah yeah Oh, okay. oh okay Of course, I said in the presentation that 14 is unbelievable. of course i said in the presentation that 14 is unbelievable It's something that, even if you have asked me, one year ago, I would say that that's very, very difficult to achieve 14%. it's something that even if you have asked me one year ago i would say that that's very very difficult to achieve 14% What I can say is that the trend in ALSA, that we are growing in terms of revenue through business as usual. what i can say is that the trend in alsa that we are growing in terms of revenue through business as usual Passengers, they are growing even two digits, thanks to a lot of things, but also because we are winning new contracts. passengers they are growing even two digits thanks to a lot of things but also because we are winning new contracts For example, in that figures is not included the Qiddiya contract, or it's not included the new contract that we are going to start in Ibiza or some other places, or Guadalajara. for example in that figures is not included the qiddiya contract or it's not included the new contract that we are going to start in ibiza or some other places or guadalajara I don't know if to be honest, I don't know if we can reach 14% of margin, what to do? I can say this, that we are still growing. There is room for improvement in terms of revenue, in terms of passengers, and even in terms of profit. I'm not obsessed that I need to reach 14% of margin. I'm obsessed that we need to keep growing all the opportunities we have. If the margin is 12%, it's fine for me. If the margin is 20%, much better. I don't know if to be honest, I don't know if we can reach 14% of margin, what to do? i don't know if to be honest i don't know if we can reach 14% of margin what to do I can say this, that we are still growing. i can say this that we are still growing There is room for improvement in terms of revenue, in terms of passengers, and even in terms of profit. there is room for improvement in terms of revenue in terms of passengers and even in terms of profit I'm not obsessed that I need to reach 14% of margin. i'm not obsessed that i need to reach 14% of margin I'm obsessed that we need to keep growing all the opportunities we have. i'm obsessed that we need to keep growing all the opportunities we have If the margin is 12%, it's fine for me. if the margin is 12% it's fine for me If the margin is 20%, much better. if the margin is 20% much better

Speaker 6: I think you might, I think you might think we're a bit cautious. I think we think we're being realistic, and we've got to rebuild a lot of trust with you guys and with our shareholders. I think by being open and realistic than putting figures out that end up to be meaningless is the best way to go, rather than you know, totally failing and failing to hit guidance year on year. I don't think that's the best way to go. I think you might, I think you might think we're a bit cautious. i think you might i think you might think we're a bit cautious I think we think we're being realistic, and we've got to rebuild a lot of trust with you guys and with our shareholders. i think we think we're being realistic and we've got to rebuild a lot of trust with you guys and with our shareholders I think by being open and realistic than putting figures out that end up to be meaningless is the best way to go, rather than you know, totally failing and failing to hit guidance year on year. i think by being open and realistic than putting figures out that end up to be meaningless is the best way to go rather than you know totally failing and failing to hit guidance year on year I don't think that's the best way to go. i don't think that's the best way to go

Speaker 4: Thank you. If I may ask a third question on the Qiddiya project? Thank you. thank you If I may ask a third question on the Qiddiya project? if i may ask a third question on the qiddiya project

Speaker 6: Yeah Yeah yeah

Speaker 4: In Saudi Arabia. We've heard in other projects there have been many delays. Kind of as you think about this project and other projects in Saudi, how do you factor in kind of timing of these projects and impacts from your perspective? In Saudi Arabia. in saudi arabia We've heard in other projects there have been many delays. we've heard in other projects there have been many delays Kind of as you think about this project and other projects in Saudi, how do you factor in kind of timing of these projects and impacts from your perspective? kind of as you think about this project and other projects in saudi how do you factor in kind of timing of these projects and impacts from your perspective

Speaker 5: Well, my experience with that, you know, that, we run the three contract in Middle East, two in Saudi and one in Bahrain. This Qiddiya project, this is a fact, we were awarded, and we need, we need to start in 45 days after the sign of the contract. My experience is they are doing very quickly because they know they need to have these cities running. For example, they are now launching a project with rail that we are not in, but, and we have been asked the timeline, they to us, that we can manage a second project there. I'm not, I'm not worried about that. Also to say that in the first month of operation, it was like a white operation. We, we made profits from the day number one, because it's not a risk contract. This is a gross cost. If I have to bet, I would say that this is something that is going to happen quite quickly. Well, my experience with that, you know, that, we run the three contract in Middle East, two in Saudi and one in Bahrain. well my experience with that you know that we run the three contract in middle east two in saudi and one in bahrain This Qiddiya project, this is a fact, we were awarded, and we need, we need to start in 45 days after the sign of the contract. this qiddiya project this is a fact we were awarded and we need we need to start in 45 days after the sign of the contract My experience is they are doing very quickly because they know they need to have these cities running. my experience is they are doing very quickly because they know they need to have these cities running For example, they are now launching a project with rail that we are not in, but, and we have been asked the timeline, they to us, that we can manage a second project there. for example they are now launching a project with rail that we are not in but and we have been asked the timeline they to us that we can manage a second project there I'm not, I'm not worried about that. i'm not i'm not worried about that Also to say that in the first month of operation, it was like a white operation. also to say that in the first month of operation it was like a white operation We, we made profits from the day number one, because it's not a risk contract. we we made profits from the day number one because it's not a risk contract This is a gross cost. this is a gross cost If I have to bet, I would say that this is something that is going to happen quite quickly. if i have to bet i would say that this is something that is going to happen quite quickly

Speaker 4: Thank you. Thank you. thank you

Speaker 3: Good morning. Jack Cummings at Berenberg. Three questions, please. The first one is just on the cost savings program. I was wondering if you could just flesh out a little bit more. I know you mentioned kind of corporate glue, but what specifically you are taking out of the business and in what divisions? The second is on the pipeline. Obviously, you've won a decent amount of revenue and contracts, both outside of the joint venture and including it. What's the pipeline looking like for full year 2026? Just finally on covenant leverage, I think 2.7x at year end, how should we think about how that's going to trend over the next 12 months? Will it tick up a little bit in the next three to six when North America School Bus comes out and then fall? Just any more color there would be great. Thank you. Good morning. good morning Jack Cummings at Berenberg. jack cummings at berenberg Three questions, please. three questions please The first one is just on the cost savings program. the first one is just on the cost savings program I was wondering if you could just flesh out a little bit more. i was wondering if you could just flesh out a little bit more I know you mentioned kind of corporate glue, but what specifically you are taking out of the business and in what divisions? i know you mentioned kind of corporate glue but what specifically you are taking out of the business and in what divisions The second is on the pipeline. the second is on the pipeline Obviously, you've won a decent amount of revenue and contracts, both outside of the joint venture and including it. obviously you've won a decent amount of revenue and contracts both outside of the joint venture and including it What's the pipeline looking like for full year 2026? what's the pipeline looking like for full year 2026 Just finally on covenant leverage, I think 2.7x at year end, how should we think about how that's going to trend over the next 12 months? just finally on covenant leverage i think 2.7x at year end how should we think about how that's going to trend over the next 12 months Will it tick up a little bit in the next three to six when North America School Bus comes out and then fall? will it tick up a little bit in the next three to six when north america school bus comes out and then fall Just any more color there would be great. just any more color there would be great Thank you. thank you

Speaker 6: I'll do the corporate glue one because it's my theme, this one. It's quite easy, really. It's what Paco said. It's the first time we've been really operating as a team, probably since I left a long time ago. We work together. We've got a strong GEC, our group executives. Importantly, it's how we deal with requests, either for approvals or for help. We deal with them quickly. If it's a no, we tell them no straight away. We don't just ask them: "Can you give me more information?" Give them, and then tell them no. If it's a yes, we, you know, we're pretty positive about that. It's all about the speed of things. You tend in these big corporates where we've all worked before, they lose the nimbleness goes, you know. I'll do the corporate glue one because it's my theme, this one. i'll do the corporate glue one because it's my theme this one It's quite easy, really. it's quite easy really It's what Paco said. it's what paco said It's the first time we've been really operating as a team, probably since I left a long time ago. it's the first time we've been really operating as a team probably since i left a long time ago We work together. we work together We've got a strong GEC, our group executives. we've got a strong gec our group executives Importantly, it's how we deal with requests, either for approvals or for help. importantly it's how we deal with requests either for approvals or for help We deal with them quickly. we deal with them quickly If it's a no, we tell them no straight away. if it's a no we tell them no straight away We don't just ask them: "Can you give me more information?" Give them, and then tell them no. we don't just ask them "can you give me more information?" give them and then tell them no If it's a yes, we, you know, we're pretty positive about that. if it's a yes we you know we're pretty positive about that It's all about the speed of things. it's all about the speed of things You tend in these big corporates where we've all worked before, they lose the nimbleness goes, you know. you tend in these big corporates where we've all worked before they lose the nimbleness goes you know The slower they are on making decisions and getting bogged down, the more chance that opportunities disappear. We've had one already. I mean, an acquisition in another country in Europe. We've delayed it and deferred it and messed about with it in the past, and it's gone away, hasn't it? There's a danger. By being so bloody slow, you can miss such a lot by being too careful. We've got this governance. You know, I know you guys think governance is important, and I appreciate that, governance doesn't make you any money. It makes you do things right, and you know the difference between right and wrong. There's a balance between good governance and good and quick decision-making, and that's getting rid of that glue that's sticking us everywhere. The slower they are on making decisions and getting bogged down, the more chance that opportunities disappear. the slower they are on making decisions and getting bogged down the more chance that opportunities disappear We've had one already. we've had one already I mean, an acquisition in another country in Europe. i mean an acquisition in another country in europe We've delayed it and deferred it and messed about with it in the past, and it's gone away, hasn't it? we've delayed it and deferred it and messed about with it in the past and it's gone away hasn't it There's a danger. there's a danger By being so bloody slow, you can miss such a lot by being too careful. by being so bloody slow you can miss such a lot by being too careful We've got this governance. we've got this governance You know, I know you guys think governance is important, and I appreciate that, governance doesn't make you any money. you know i know you guys think governance is important and i appreciate that governance doesn't make you any money It makes you do things right, and you know the difference between right and wrong. it makes you do things right and you know the difference between right and wrong There's a balance between good governance and good and quick decision-making, and that's getting rid of that glue that's sticking us everywhere. there's a balance between good governance and good and quick decision-making and that's getting rid of that glue that's sticking us everywhere

Speaker 5: Let me add something. We're now, as Mobico, running 12 countries. If you compare 12 countries with our main competitors in the Champions League, they are running in 40, 50 countries. That means there is a lot of room for places to go. Let me not release the exact pipeline, but it also is a fact that we submit roughly 30 bidding process in a year. I would say less than half in Spain. This is, of course, is the line of the Chair, but more than 50% out of Spain. In the other 11 countries that we run, we are preparing something to. Not only that, we are also having a look or not a footprint, but some researches and some ongoing negotiation. It at least five more countries where we are not in at the moment. Let me say that I'm not going to show you the opportunity. Let me add something. let me add something We're now, as Mobico, running 12 countries. we're now as mobico running 12 countries If you compare 12 countries with our main competitors in the Champions League, they are running in 40, 50 countries. if you compare 12 countries with our main competitors in the champions league they are running in 40 50 countries That means there is a lot of room for places to go. that means there is a lot of room for places to go Let me not release the exact pipeline, but it also is a fact that we submit roughly 30 bidding process in a year. let me not release the exact pipeline but it also is a fact that we submit roughly 30 bidding process in a year I would say less than half in Spain. i would say less than half in spain This is, of course, is the line of the Chair, but more than 50% out of Spain. this is of course is the line of the chair but more than 50% out of spain In the other 11 countries that we run, we are preparing something to. in the other 11 countries that we run we are preparing something to Not only that, we are also having a look or not a footprint, but some researches and some ongoing negotiation. not only that we are also having a look or not a footprint but some researches and some ongoing negotiation It at least five more countries where we are not in at the moment. it at least five more countries where we are not in at the moment Let me say that I'm not going to show you the opportunity. let me say that i'm not going to show you the opportunity

Speaker 6: Mm-hmm. Mm-hmm. mm-hmm

Speaker 5: They are competitors. I can assure you that we have a lot of opportunity. I'm not saying I'm not so, that we are going to win all of them. You know, that the ratio of winning contract is about 30%. They are competitors. they are competitors I can assure you that we have a lot of opportunity. i can assure you that we have a lot of opportunity I'm not saying I'm not so, that we are going to win all of them. i'm not saying i'm not so that we are going to win all of them You know, that the ratio of winning contract is about 30%. you know that the ratio of winning contract is about 30%

Speaker 6: Mm-hmm. Mm-hmm. mm-hmm

Speaker 5: You can imagine that if we have this size of opportunities, one, two, three, we will win, I hope. If not, he has to fire me. You can imagine that if we have this size of opportunities, one, two, three, we will win, I hope. you can imagine that if we have this size of opportunities one two three we will win i hope If not, he has to fire me. if not he has to fire me

Speaker 6: Okay. Brian, could you do the cost stuff. Okay. okay Brian, could you do the cost stuff. brian, could you do the cost stuff

Speaker 1: Just in terms of cost savings, EUR 75 million, that is spread right across the group. Head office is about, I mean, just in very rough terms, it's around EUR 15 million out of head office. The big focus, as we've mentioned in really all the presentations, has been on U.K. Coach, which is about EUR 25 million, and then it's EUR 10 million out of the other divisions, so Germany, ALSA, and WeDriveU. But it really is right across the business. On the covenant, it's a little bit complicated because of the German settlement, because that's going to influence the ratios very significantly. In fact, the accounting is quite complicated. In fact, even KPMG are getting technical advice as to how it's treated. It will be without Germany, it will be low, obviously, the covenant, the covenant ratio, but probably in the threes. You know, I'm probably getting stared at now, I'm not supposed to say this so much. It will be in the threes. Just in terms of cost savings, EUR 75 million, that is spread right across the group. just in terms of cost savings eur 75 million that is spread right across the group Head office is about, I mean, just in very rough terms, it's around EUR 15 million out of head office. head office is about i mean just in very rough terms it's around eur 15 million out of head office The big focus, as we've mentioned in really all the presentations, has been on U.K. the big focus as we've mentioned in really all the presentations has been on u.k Coach, which is about EUR 25 million, and then it's EUR 10 million out of the other divisions, so Germany, ALSA, and WeDriveU. coach which is about eur 25 million and then it's eur 10 million out of the other divisions so germany alsa and wedriveu But it really is right across the business. but it really is right across the business On the covenant, it's a little bit complicated because of the German settlement, because that's going to influence the ratios very significantly. on the covenant it's a little bit complicated because of the german settlement because that's going to influence the ratios very significantly In fact, the accounting is quite complicated. in fact the accounting is quite complicated In fact, even KPMG are getting technical advice as to how it's treated. in fact even kpmg are getting technical advice as to how it's treated It will be without Germany, it will be low, obviously, the covenant, the covenant ratio, but probably in the threes. it will be without germany it will be low obviously the covenant the covenant ratio but probably in the threes You know, I'm probably getting stared at now, I'm not supposed to say this so much. you know i'm probably getting stared at now i'm not supposed to say this so much It will be in the threes. it will be in the threes

Speaker 6: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: Without, excluding Germany. With Germany, that again, depends on accounting, it would be lower, and by the year-end, it will be below three. Without, excluding Germany. without excluding germany With Germany, that again, depends on accounting, it would be lower, and by the year-end, it will be below three. with germany that again depends on accounting it would be lower and by the year-end it will be below three

Speaker 6: Any other questions, guys? Any other questions, guys? any other questions guys

Speaker 7: Yeah. Ruairi Cullinane, RBC. The first question on ALSA concession renewal. What percentage of ALSA's revenues are up for renewal in full year 2027? Is there anything else coming in the years after that? You know, if you could even give us an indicator of what percentage of earnings, that would be even better. Secondly, on provisions on the balance sheet. You've helpfully quantified that there'll be EUR 8 million of utilization from the WeDriveU onerous contract provision. You may not be able to comment on German Rail, but if you can, that would be appreciated. Is there anything else we should be thinking about? Yeah. yeah Ruairi Cullinane, RBC. ruairi cullinane rbc The first question on ALSA concession renewal. the first question on alsa concession renewal What percentage of ALSA's revenues are up for renewal in full year 2027? what percentage of alsa's revenues are up for renewal in full year 2027 Is there anything else coming in the years after that? is there anything else coming in the years after that You know, if you could even give us an indicator of what percentage of earnings, that would be even better. you know if you could even give us an indicator of what percentage of earnings that would be even better Secondly, on provisions on the balance sheet. secondly on provisions on the balance sheet You've helpfully quantified that there'll be EUR 8 million of utilization from the WeDriveU onerous contract provision. you've helpfully quantified that there'll be eur 8 million of utilization from the wedriveu onerous contract provision You may not be able to comment on German Rail, but if you can, that would be appreciated. you may not be able to comment on german rail but if you can that would be appreciated Is there anything else we should be thinking about? is there anything else we should be thinking about

Speaker 5: Okay. Okay. okay

Speaker 7: Yeah, I'll leave it at that. Yeah, I'll leave it at that. yeah i'll leave it at that

Speaker 6: Okay. Okay. okay

Speaker 7: Thank you. Thank you. thank you

Speaker 6: Thanks, Ruairi Can you talk a bit about concessions coming up, Paco? Thanks, Ruairi Can you talk a bit about concessions coming up, Paco? thanks ruairi can you talk a bit about concessions coming up paco

Speaker 5: Yes. Yes. yes

Speaker 6: This year and next year? This year and next year? this year and next year

Speaker 5: Yes. Well, the franchise process is ongoing. It's true that there's been a general delay, but it's something, for example, right now there is one or two contracts on the table. We are not the incumbent, but in Spain, we have, in March, it's, we need to submit at least two offers in the process. We will have the process. I don't expect that we will have in all... Of course, not all of them, because if I'm not wrong, we manage 21 contracts in long haul in Spain. Probably it's a process that will take at least a couple of years to finish. Yes. yes Well, the franchise process is ongoing. well the franchise process is ongoing It's true that there's been a general delay, but it's something, for example, right now there is one or two contracts on the table. it's true that there's been a general delay but it's something for example right now there is one or two contracts on the table We are not the incumbent, but in Spain, we have, in March, it's, we need to submit at least two offers in the process. we are not the incumbent but in spain we have in march it's we need to submit at least two offers in the process We will have the process. we will have the process I don't expect that we will have in all... i don't expect that we will have in all Of course, not all of them, because if I'm not wrong, we manage 21 contracts in long haul in Spain. of course not all of them because if i'm not wrong we manage 21 contracts in long haul in spain Probably it's a process that will take at least a couple of years to finish. probably it's a process that will take at least a couple of years to finish After that, you know that there is a process of mobilization, claims, and so on. I don't have the crystal ball, but I think it's something that for sure is not going to impact 2026. It's strange that could impact in 2027 or at least in the first half of 2027. That is something that is happening. Of course, we haven't lost a single contract in long haul in the history in Spain. As I show, the revenue of long haul is 17% of the company. Is a good margin, and of course, after a bidding process, you usually lose a little of margins, but because you have to reduce price, but after that, there is a recovery coming from the increase on passengers. It's a process like a peak on that. I don't know if that answer your question or not, but is... This is my expectation. After that, you know that there is a process of mobilization, claims, and so on. after that you know that there is a process of mobilization claims and so on I don't have the crystal ball, but I think it's something that for sure is not going to impact 2026. i don't have the crystal ball but i think it's something that for sure is not going to impact 2026 It's strange that could impact in 2027 or at least in the first half of 2027. it's strange that could impact in 2027 or at least in the first half of 2027 That is something that is happening. that is something that is happening Of course, we haven't lost a single contract in long haul in the history in Spain. of course we haven't lost a single contract in long haul in the history in spain As I show, the revenue of long haul is 17% of the company. as i show the revenue of long haul is 17% of the company Is a good margin, and of course, after a bidding process, you usually lose a little of margins, but because you have to reduce price, but after that, there is a recovery coming from the increase on passengers. is a good margin and of course after a bidding process you usually lose a little of margins but because you have to reduce price but after that there is a recovery coming from the increase on passengers It's a process like a peak on that. it's a process like a peak on that I don't know if that answer your question or not, but is... T his is my expectation. i don't know if that answer your question or not but is... t his is my expectation

Speaker 6: On German Rail, I'm sorry, I can't give you any more because that's a commitment we've made to the local authorities there until we get the contract signed. You know, they're a different organization to us, you know, a political organization, and they've got a lot of people who they report to, including their elected members and officers, and also central government. We did say in the announcement that we're reducing the length of our loss-making contract, we're increasing the length of our profit-making contract, and we're also changing the basis of our profit-making contract to gross costs rather than net costs, and that takes away a load of revenue risk. All I can say, there have been long negotiations, and we're very happy with the outcome. There's a lot of tricky accounting I can't understand, but as Brian says, we're seeking help there, but we are very satisfied with the outcome. On German Rail, I'm sorry, I can't give you any more because that's a commitment we've made to the local authorities there until we get the contract signed. on german rail i'm sorry i can't give you any more because that's a commitment we've made to the local authorities there until we get the contract signed You know, they're a different organization to us, you know, a political organization, and they've got a lot of people who they report to, including their elected members and officers, and also central government. you know they're a different organization to us you know a political organization and they've got a lot of people who they report to including their elected members and officers and also central government We did say in the announcement that we're reducing the length of our loss-making contract, we're increasing the length of our profit-making contract, and we're also changing the basis of our profit-making contract to gross costs rather than net costs, and that takes away a load of revenue risk. we did say in the announcement that we're reducing the length of our loss-making contract we're increasing the length of our profit-making contract and we're also changing the basis of our profit-making contract to gross costs rather than net costs and that takes away a load of revenue risk All I can say, there have been long negotiations, and we're very happy with the outcome. all i can say there have been long negotiations and we're very happy with the outcome There's a lot of tricky accounting I can't understand, but as Brian says, we're seeking help there, but we are very satisfied with the outcome. there's a lot of tricky accounting i can't understand but as brian says we're seeking help there but we are very satisfied with the outcome

Speaker 1: I think the important point is when you put the three contracts together, the cash, the cash leakage is going to stop. That's the intention. I think the important point is when you put the three contracts together, the cash, the cash leakage is going to stop. i think the important point is when you put the three contracts together the cash the cash leakage is going to stop That's the intention. that's the intention

Speaker 6: Brian, on provisions and stuff? Brian, on provisions and stuff? brian on provisions and stuff

Speaker 1: I think only the two different provisions, so on WMATA, it'll be EUR 8 million being released next year. On the German one, we just have to finalize the contracts, and we disclose that. Hopefully, again, with the full year results. I think only the two different provisions, so on WMATA, it'll be EUR 8 million being released next year. i think only the two different provisions so on wmata it'll be eur 8 million being released next year On the German one, we just have to finalize the contracts, and we disclose that. on the german one we just have to finalize the contracts and we disclose that Hopefully, again, with the full year results. hopefully again with the full year results

Speaker 6: Okay. Any more questions, guys? Are we done? I think we are. Thank you very much for coming along. Really enjoyed meeting as usual. As you said, as we've been seeing a lot of you in the future, and particularly in this year. Please don't get too bored with us. I know we're not the most exciting people. But we do our best. Thank you very much. Okay. okay Any more questions, guys? any more questions guys Are we done? are we done I think we are. i think we are Thank you very much for coming along. thank you very much for coming along Really enjoyed meeting as usual. really enjoyed meeting as usual As you said, as we've been seeing a lot of you in the future, and particularly in this year. as you said as we've been seeing a lot of you in the future and particularly in this year Please don't get too bored with us. please don't get too bored with us I know we're not the most exciting people. But w e do our best. i know we're not the most exciting people. but w e do our best Thank you very much. thank you very much

Speaker 1: Thank you. Thank you. thank you