CGG Stock

Good morning and good afternoon, everyone. Thank you for joining us today for Viridien's Q2 2026 Results Presentation. I'm Alexandre Leroy of Investor Relations and Corporate Finance.

We are hosting today's call from Paris, and I'm pleased to be joined with our newly appointed CEO, Henning Berg; and our Group CFO, Jerome Serve, who will walk you through our performance.

Before we begin a few housekeeping items. This call is being recorded and is accessible via both phone and online platforms. An audio replay will be available shortly on our website, www.viridiengroup.com. The presentation slides are also available for download from the website.

Please note that today's presentation includes forward-looking statements. Actual results may differ materially from those expressed or implied today, relevant risk factors are detailed in our 2025 Universal Registration Document filed with the French Financial Market Authority, AMF. As usual, we will conclude with a Q&A session. And finally, a quick reminder that Viridien comments primarily on segment figures, which reflects our internal management reporting. This differs from IFRS numbers also published today due to IFRS 15 impact on our Earth data business.

With that, I now hand over to management, starting with Henning, who will take you through the key business highlights for the quarter. Henning, the floor is yours.

Thank you, Alexandre. Good morning and good afternoon, everyone. Before turning to the market and our first half performance, I would like to share a few personal reflections on my first 5 months at Viridien. What has impressed me most is the quality of this company. The strength of our people, our world-class technology and the depth of our customer relationships. We are the clear market leader in 2 out of 3 of our businesses and across all 3 business lines, we hold leading technology positions. This leadership has been built over decades through innovation, technical excellence and the trust of our clients.

I also believe I joined Viridien at an important moment in its journey. Over the past several years, the team has successfully transformed the company, strengthening the balance sheet, improving cash generation through the cycle and significantly reduced leverage. As a result, Viridien is now more resilient and more flexible with a much stronger foundation from which to accelerate long-term value creation.

One of the things stood particularly out to me is the degree of differentiation within our technology platform. In my discussions with customers, they consistently recognize Viridien's technology leadership. Our market-leading seismic imaging capabilities help clients make better informed decisions about where to drill and how to extend the productive life of their reservoirs. This can shorten time to market while reducing the cost and risk across the exploration to production value chain.

Through Sercel, we also provide market-leading seismic acquisition equipment and solutions. Accel, our latest land seismic drop node system is a strong example of how our innovation can improve both operational efficiency and data quality. AI is, of course, another major topic across industries today. What I discovered at Viridien is that we are not at the beginning of this journey. For many years, we have combined data-driven approaches with AI and machine learning analysis to analyze some of the world's largest and most complex data sets.

Importantly, AI is not a stand-alone capability at Viridien. This is combined with deep scientific expertise, proprietary to physics-based algorithms and highly customized high-performance computing. This combination makes our technology commercially differentiated as it enables us to process more data, operate more efficiently and generate richer insights for our clients.

More broadly, the current convergence of data, computing power and AI is exceptionally well aligned with our core capabilities. It is creating new opportunities for both within our existing markets and over time in adjacent areas where we can leverage our expertise in data, high-performance computing and digital technologies. It is still early in my tenure, and I want to take the necessary time to develop the right long-term road map. Today is, therefore, not the time to present a new strategy. However, I am very excited by the opportunities ahead, and I look forward to sharing a broader strategic perspective at the Capital Markets Day in 2027.

With that perspective in mind, let me now turn to the market environment and our first half performance. I am now on Slide 3. Our performance in Q2 continued to be affected by the conflict in the Middle East and broader geopolitical uncertainty, which reinforced capital discipline among E&P companies and resulted in delays to certain product awards, particularly within sensing and monitoring.

Against this backdrop, Q2 segment revenue was $232 million, while segment adjusted EBITDA was $92 million. At the same time, we continue to see encouraging signs on the commercial side. GEO's backlog rebuilt to $306 million at the end of June, 19% above the level recorded at year-end 2025. We're also seeing signs of an exploration pickup in emerging and frontier basin with accelerating demand for reprocessing and emergence of new multiclient opportunities.

Importantly, based on our asset-light differentiated technology strategy, the group continues to generate positive cash despite the challenging near-term environment. Net cash flow reached $32 million in the first half supported by focused investments, enabled by the flexibility of our asset-light business model. Cash flow remained positive in Q2, while we paid our half year coupon on bonds. This enabled us to make further progress on deleveraging, with net debt, excluding IFRS 16, reducing to below $700 million mark to $692 million at the end of June.

Overall, while the near-term market environment remains uncertain, our commercial momentum is improving. Our balance sheet continues to strengthen and we remain fully focused on disciplined execution and cash generation. As the results and supported by continued gradual strengthening in market conditions through the second half, we maintain our full year 2026 objective of generating $100 million of net cash flow.

Turning to Slide 5. We will now review the quarterly performance of each business line, starting with Geoscience. Q2 2026 total production remained broadly stable at $141 million compared to $142 million in Q2 2025. External segment revenue was $95 million. During the quarter, some project start-ups were delayed amid political uncertainty. At the same time, internal production increased to $45 million, which means GEO delivered a higher level of activity for Earth Data, including both the processing of newly acquired data and the reprocessing of legacy data set.

Commercial momentum nevertheless strengthened significantly towards the end of the quarter. Several discussions that have been progressing over the last few months, converted into signed contracts and recognized order intake. As a result, GEO backlog reached $306 million at the end of June, up 19% compared to year-end 2025 and close to our historical all-time record level. This provides stronger visibility for the coming quarters.

Operational efficiency also continued to improve with total production per employee increasing by 9% year-on-year to $400,000. Overall, GEO delivered stable production in the second quarter, improved backlog and continue to achieve productivity gains. Good performance in the current market environment that directionally aligned with our 2026 objectives.

Turning to Slide 6. One of the questions we're often asked is how geoscience will continue to grow from an already strong market position with an estimated market share of around 55%, our objective is not only to defend our leadership but also to broaden the addressable market by changing the nature and scope of our relationship with clients. We are increasingly seeing E&P companies move away from purely project by project -- and towards long-term strategic processing partnerships.

These partnerships can take many different forms. We have 2 examples here. With Aker BP, they wanted to secure long-term access to our high-end OBN processing capabilities for multiclient projects on the Norwegian continental shelf. With one of the major international oil companies, we further developed this trend towards long-term processing partnerships through a multiyear agreement covering the externalization of all in-house seismic processing activities worldwide.

For our clients, these long-term arrangements ensure access to leading subsurface imaging capabilities and high-performance compute capacity while accelerating exploration cycle plans, reducing overall risk and enabling greater organizational flexibility.

For Viridien, they provide multiyear revenue visibility, deepen our integration within clients' operating models, and creating broader opportunities for growth, including the deployment of our full technology portfolio and our high-performance computing capabilities. This is, therefore, an important growth avenue for geoscience. With these strategic partnerships, we can further expand the accessible market by bringing activities that were previously formed in-house into long-term partnerships with Viridien. This is in addition to increasing our market share in the traditional way to normal project work. In doing so, we reinforce our customers' relationships, improve commercial visibility and create additional opportunities for sustainable growth.

Turning now to Earth data on Slide 7. Q2 revenue increased to $76 million, up from $66 million in Q2 2025 and from $54 million in Q1 of 2026. The sequential improvement mainly reflects the pacing and progression of our multi-client projects during the quarter. As you know, Earth data revenue recognition can vary meaningfully from one period to another, depending on project milestones, government-based activity, the timing of client commitments and of course, the level of late sales. This quarter-by-quarter volatility primarily reflects industry and project phasing rather than any change in the underlying attractiveness of the business.

Along with the technical quality of our data library, which is supported by a leading top surface imaging, the commercial quality of our library remains strong. At the end of June, 66% of the library net book value related to work that was either in progress or multiclient sales that was less than 1 year old and 93% of the net book value was related to work that was either in progress or data that was less than 2 years old. This highlights the relatively young profile of our portfolio and the relevance of our recent investment activity.

The library is also well diversified geographically with 39% of net book value in the key basins in Europe and Africa, 30% in North America, 24% in South America, and 7% elsewhere. Overall, Earth data delivered the planned sequential improvement in Q2, supported by strong project execution while continuing to invest in a technically superior and commercially differentiated library of new data. Diversified across the world's key petroleum basins, this high-quality portfolio, together with our asset-light model, provides a durable foundation for Q2 revenue and cash -- strong cash generation through the cycle.

Staying with Earth data on Slide 8, illustrates how we are positioning the business to optimize cash generation and capture the emerging pickup in our -- exploration. The activity shown here span 3 complementary areas: strategic government agreements, reprocessing projects and selective new data acquisitions. Our multiclient agreements with government in Morocco, Senegal and Egypt gives us privileged access to basins and data and established period-in where future exploration activity is expected to develop. These agreements can generate opportunities data licensing, both through the reprocessing of data in the area as well as new acquisition program.

For reprocessing, we are seeing growing demand, which is typically a capital-efficient way to unlock additional value from existing data set. Projects are currently underway in Guyana, Moleson, Côte d'Ivoire, India and Malaysia, among others. These projects allow our clients to revisit exploration opportunity using our latest imaging technology, efficiently generating additional value from already existing data.

For new acquisitions, we continue to invest selectively in new projects. In Guyana, the shallow water 3D project has commenced under exclusive agreement with the government. In Uruguay, the first season of the Charrua 3D survey has been completed the second phase is scheduled to begin in the fourth quarter. In Malaysia, the Langkasuka project combined hybrid streamer and OBN acquisition with high-end processing in partnership with Malaysia's Petroleum management.

Taken together, these initiatives demonstrate how our asset-light differentiated technology model allows us to combine strategic positioning in frontier basin with reprocessing activity and disciplined investments in new programs. Our approach supports resilient cash generation through the cycle and enables quick exploration as exploration markets recover.

Turning now to sensing and monitoring on Slide 9. The business continued to be significantly impacted by disruption in the Middle East. Q2 segment revenue was $61 million and enable -- and stable compared with the first quarter of 2026. The impact was most pronounced in land where revenue declined to $22 million from $52 million a year earlier. This primarily reflects the delayed project sanctioning and lower equipment demand across several Middle Eastern markets.

Marine proved more resilient. Although activity was also affected by slower customer decision and project timing, including delay of a large OBN project in the Middle East. Our new business growth initiatives kept performing well, increasing 34% year-on-year and accounting for 32% of SMO revenues in Q2 2026. Overall, visibility at current is improving but remains limited. In this environment, we are focused on strict cost discipline, cash preservation and maintaining our readiness to respond with product activity.

Turning now to Slide 10. While the current performance remains under pressure at SMO, we are also beginning to see some early signs of improvement in the equipment market. In our core market, tendering activity is expected to increase going forward. We currently see several potential mega-crew tenders in Saudi Arabia and Mexico.while a number of more traditional projects in Qatar, Saudi Arabia, Iraq, Jordan move forward as regional cash [indiscernible].

These opportunities remain subject to customer decision and market conditions. So it's too early to confirm a broad-based recovery. However, the pipeline and client discussions are becoming more effective, and this gives us great confidence that demand will gradually improve, especially from 2027 onwards. In this market, we are creating our own growth opportunities through innovation. Accel, our latest land seismic node system is gaining encouraging commercial traction. More than 20,000 channels have already been sold in 2026, including wins with customers new to the brand and a further 150,000 channels are currently included in -- quotations submitted to more than 20 customers. Overall, while visibility remains limited, combination of a more active tender pipeline and the early commercial success of Accel provides encouraging signs for the future.

With that, I'll now hand it over to Jerome, who will walk you through the financial performance review.

Thank you, Henning, and good morning, and good afternoon, everyone. Let's move to Slide 12, covering total segment revenue. H1 segment revenue was $446 million, down 22% year-on-year. Data, digital and energy transition or so-called DDE segment, declined by 18%, mainly reflecting Earth data project phasing as well as softness in geoscience external revenues, while Sensing and Monitoring was down 32% impacted by continued geopolitical uncertainty as already discussed by Henning. Q2 segment revenue was $232 million compared with $274 million last year.

Turning to Slide 13. H1 segment adjusted EBITDA was $168 million compared with $250 million last year, reflecting lower activity levels. DDE maintained a strong 59% margin, supported by improved geoscience profitability partly offset by lower Earth data revenue. Sensing and monitoring returned to breakeven in Q2 but remained negative for the first half, impacted by lower revenue and approximately $10 million of ForEx exchange headwinds versus last year. Q2 segment adjusted EBITDA were $92 million compared with $107 million last year.

Turning to Slide 14, which presents our IFRS results. Our IFRS figures were significantly impacted by the completion of the Laconia project. As a reminder, under IFRS 15, Earth data prefunding revenue is recognized only when the final process data has been delivered to our clients. Revenue and margin recognition for ongoing surveys is therefore deferred under IFRS accounting. By contrast, our segment reporting continues to apply the percentage of completion method used before the adoption of IFRS 15. This provides a view that more closely reflects the underlying operational performance and cash flow profile of our business.

In H1, IFRS revenue was $536 million, and IFRS EBITDA was $249 million compared with segment reporting, this represents a positive difference of $90 million in revenue and EBITDA. This adjustment is mostly driven by the completion of Laconia, which triggered approximately $150 million of revenue recognition under IFRS 15. This was partly offset by revenue not yet recognized on other ongoing Earth data survey that remain in the prefunding phase. At operating income level, Laconia revenue was also fully offset by amortization, resulting into virtually no impact on [ OP ] or net income.

Finally, regarding the other financial results, I remind you that the negative $34 million recorded in H1 '25 included the nonrecurring refinancing costs associated with the early refinancing completed at the end of March '25.

Turning to Slide 15. H1 net cash flow increased to $32 million from $10 million last year. This was achieved despite an $82 million reduction in segment adjusted EBITDA. This negative impact was partly offset by $67 million improvement in working capital, mainly reflecting our data project phasing, lower activity levels, and as mentioned in Q1, partial payments from PEMEX of 2024 of dues.

H1 cash also benefited from a $34 million reduction in CapEx, resulting from lower Earth data investment partly offset by higher industrial CapEx linked to the expansion of our U.S. HPC data center. The cash cost of debt was mostly unchanged while other cash items contributed a further $3 million out of which $1.5 million of lower [indiscernible]. Overall, this performance demonstrates the selectivity of our investment approach and the flexibility of our asset-light business model.

Finally, a few words on debt. Turning to Slide 16. We continue to make progress on deleveraging. Gross debt, excluding IFRS 16 declined to $864 million at the end of June from $908 million at year-end 2025 and $1.18 billion 1 year earlier. During the first half, supported by a cash generation positive, we redeemed $41 million of USD notes at 103% versus par. Net debt, excluding IFRS 15, is now below the $700 million mark, standing at $692 million. compared with $735 million at year-end 2025 and $856 million 1 year ago. As you know, further deleveraging remains our top capital allocation priority.

With that, I will hand back to Henning for the outlook.

Thank you, Jerome. Turning to Slide 18. Let me conclude with some perspectives and outlook. The geopolitical situation remains uncertain, and we continue to monitoring developments closely. Against this backdrop, we see encouraging signs of recovery in exploration activity. As already in the first half of 2026, we have seen a significant pickup in tender activity, over 50% year-over-year for our GEO business, especially around reprocessing. This was particularly visible towards the end of Q2. Our strong new booking momentum is expected to continue. At the same time, governments are reopening and promoting prospective basin while E&P companies are positioning to secure more acreage and expanding exploration activity. This is promising for our EDA business.

Beyond the near-term uncertainty, the underlying fundamentals supporting demand for high-end price may continue to strengthen. E&P companies remain under pressure to replace reserves. Global energy demand continues to grow, and energy security remains a strategic priority.

At the same time, increasing interest in deepwater exploration is driving activity in more complex geological environment. These trends reinforce the need for advanced subsurface imaging technologies that reduced exploration risk, improved decision-making and shorten the time from prospect diversification to discovery and first oil. This is a perfect match for Viridien. Overall, we expect the market conditions to strengthen progressively through the second half of the year with further acceleration into 2027. At the same time, we remain focused on disciplined execution, cash generation and strengthening our balance sheet. As a result, we will maintain our full year 2026 objective or generating $100 million net cash flow.

As a reminder, this objective includes the planned Phase 1 expansion of our U.S. high-performance computing infrastructure and assumes normalized working capital, including the collection of outstanding receivables from PEMEX.

With that, we are now happy to take your questions.

[Operator Instructions]. And the question comes from the line of Jean-Luc Romain from CIC CIB.

The question relates actually to PEMEX. I didn't get the figure you mentioned in the contribution of PEMEX in the change in working capital. How much is still due by PEMEX compared to what they were going before the payment?

It's Jerome. It's normal that you did not hear the figure because I dId not give. But I mean, I basically, what I can say and [indiscernible] new investors. You remember last year, we already collected some other news from PEMEX, which we used to repay our loan, which we took at the construction -- the time of the construction of our -- our U.K. data center. That's basically the order of magnitude that I can give you. So $30 million, $35 million.

And you have assumed in the $100 million net cash flow guidance, more or less EBITDA amount which in time will be used to cover the expansion of our U.S. data center. And out of this $30 million, $35 million which is in the [ $1 million ] cash flow guidance. We already collected some of this -- half of it. So we are left with the numbers, which you can figure out, but we are doing some good progress with PEMEX on the discussion of these values. So some good confidence that we will collect the full outstanding before year-end. And on that note also, and I will let expand on this one, we actually decided to start working with PEMEX.

Yes. I mean, that's correct. We have a confidence in collecting the receivables has meant that we have restarted the work with PEMEX.

And a question comes from of Mick Pickup from Barclays.

A couple of questions, if I may. Can we just talk about geoscience and the external revenues down year-on-year? I know you're doing more internal production, but what's driving external demand. And secondly, for a while now, we've been talking about an exploration cycle, that's going to start activity move in, but we're still seem to be in the starting blocks. So what signs are you looking for to give us confidence that it's actually happening?

Yes. Thank you, Mick. So I can take the GEO question first. So yes, our external revenue [indiscernible] in Q2. This is obviously reflecting our a little bit lower bookings over the last few quarters, but it's also reflecting a little bit wait-and-see approach from some clients at the start of the year. Both in relation to the uncertainties in the Middle East. And also, I guess, they've set their budgets at the time when oil price was a little bit lower. It's also the result of clients reshaping their organizations for exploration and gearing up more work. We do see that, that has now changing.

So as I said in my prepared remarks, we see commercial momentum improving greatly towards the end of the quarter. We had a great booking quarter and reaching the backlog rate $306 million, which is 19% up year-over-year and close to our all-time high. We do see that our tender activity is up as well, more than 50% compared to the same period last year on processing or GEO. So we definitely see that the early signs of exploration pickup is there. And we expect that to continue as well. We have seen into our third quarter now as well [indiscernible].

Another signal on the -- for exploration being back. When we say exploration being back, we usually focus on frontier exploration, which we know have been subdued for some years. And through our geoscience division and especially the amount of work we do on reprocessing on frontier projects. We see that our clients are looking more into those frontier/emerging areas. And as you know, they usually start with reprocessing because that's the cheapest way to get a further better understanding of an area before committing into a new survey either through multiclient model or [indiscernible]. Do you want to say anything on the MOU as well? Because I think it's also a good sign of exploration.

Yes. So we do see that a lot of our customers are signing MOUs with governments in basins. This means for us, I think that there will be a lot of reprocessing of data coming. When we talk to -- when I talk to the customers, they definitely expect that and telling us to sort of be ready for that. So we are starting to see all the time of that as well as through our increased bookings. So the MOU activity will probably first create opportunities for reprocessing of data and then later, new acquisitional data is needed.

And can I just put there in Africa. So you talked about more reprocessing, but obviously, the first question was segment revenue is down, and your backlog is up 19%, but it's flat year-on-year. So what's missing if this reprocessing is coming through?

Yes. So I think the change in or the increase in reprocessing or the change in backlog, we have seen over the last part of the second quarter, right? That's why we're expecting revenues to be going up going forward. What we reported as revenues in Q2 is obviously the backlog that we had going into the quarter, which was a lower number.

But you should expect Q3 and even more so in Q4 GEO sales for the new back to what you saw towards the end of '25. So -- above onward and clearly closer to [indiscernible]. The machine is not broken in contrary.

Yes. And at the same time, just to add to that, we have -- our activity in GEO has been fairly stable. So we have been doing a lot of multiclient processing, which obviously is getting ready for that part of the business as well.

And the question comes from of Guillaume Delaby from Bernstein.

Yes. Because it is such a critical question, I'm going to reask the question which has already been asked by maybe in a different way. So globally, geoscience backlog at the end of June 2026 is more or less the same as June 2025. Logically, as Jerome just said, we should have geoscience revenue in Q3 and Q4, which are back to 2025.

Now if I understand correctly, the big difference today versus 1 year ago is that we have more reprocessing of frontier projects. that some clients are signing MOUs with governance. And I think and I didn't understand. You mentioned 15, 1-5 or 50, 5-0, so please, increasing tendering, Am I correct? And maybe did I miss last argument?

Yes. So you are correct. It's 5-0, 50% more tender activity we see in our...

So it's 5-0, it's 5-0?

5-0, correct. And that's based on our tender activity in our CRM system where we obviously track all the ongoing tenders for this business.

Don't increase your revenues by 50% [indiscernible] for it's tendering. So there are a number of projects, as you know, we really focus on the most complex [ TIM ] the one where we delivered the margin which you know is -- for business. But overall, the trend is indeed quite positive and show this for us an early sign of exploration.

Yes. Okay. I'm going to just follow the [ prudent man ], and I am not going to put it. Don't worry.

And the next question comes from line of Kevin Roger from Kepler Cheuvreux.

Yes. I have 3 questions, if I may. The first one, and sorry if I missed it, I was late. Can you come back on the difference between the segment EBITDA and the reported EBITDA this quarter just to understand what is it related to? The second one relates to SMO activity level has been quite rich as expected. However, you managed to put the entity with a breakeven EBITDA level probably a positive surprise. So is it a kind of one-off or something structural because you managed to reduce the cost again. And now we can assume that even with a $60 million top line Sercel SMO can be EBITDA breakeven.

And the third one is more for you, Henning. You arrived now 6 months ago at Viridien. So I was wondering if you can share with us maybe your view on Viridien and the potential streamlining of the business that have been circulating around the investment case over the past few quarters, months, et cetera. And what you do see as a key priority to be implemented really at Viridien for the next maybe 12 to 18 months?

Let me take the first question on IFRS. So it's what I said during the presentation, we basically completed Laconia. You remember this massive survey in the Gulf of Americas that we started in 2024. [indiscernible] I think you should be on mute because there's a lot of time [indiscernible] and as per IFRS 15, you recognize the full revenue on completion. And as you know, revenue translates to 100% at the EBITDA level. So that explains the big increase in EBITDA this quarter.which, at the EBIT level, you don't see it because those additional revenues or fully amortized, again, as per the IFRS. So that answers the first question.

Yes, I can take the second question on SMO. So first, we believe the situation in the Middle East is temporary and that activity will resume. So in the short term, we are looking at basically the things that we can control, and that is really 3 things. Operational discipline, with tight focus on working capital and cost control. We're also trying to simplify the business, including small disposals or a couple of the gauge business in Europe. And then we want to make sure that we preserve future growth capability and capacity so that we retain when we needed to capture the market recovery that we expect from 2027. So you are right. We managed to stay basically as EBITDA breakeven which I think was pretty good achievements in the second quarter.

You may remember that we had a similar level of revenue in Q1 and that were done under in Q1. And I think I mentioned it at the time, there was a negative mix effect in Q1. We had some products with low margin, which contributed to the $60 million. In Q2, we back from our normal mix. So indeed, plus the management action cost control that we have initiated that make the case for breakeven performance.

And I guess, your third question, Kevin, around the strategy. So in my prepared remarks, I had -- outside my impression over the first 5 months. which I think is very, very good, right? And I think we're -- I'm coming into the grid at a very good point in time. Still at this stage, it's too early for me to really provide details about specific strategic actions. And my objective today was really to share the broad vision and direction I see for the group. And we have a strategic review ongoing. And we want to complete that work and make sure we have good conclusions out of that. and we intend to present that full strategy at our Capital Market Day in 2027, which I said in my prepared remarks as well.

And the question comes from the line of Baptiste Lebacq from ODDO BHF.

Two questions from my side on the SMO side. The first one is on the slide, Page 10. You mentioned higher tendering activity, will this translate into delivery at the end of 2026 or more in 2027? And the second question, still on this business, do you still have some, let's say, cost-cut measures that could be put in place? Or do you think that now it's not possible to, let's say, continue the adjustment because you mentioned that, let's say, it's a little bit better than what we have seen in the past and you don't want to curb your flexibility if you need to accelerate in this business.

I can comment first. Thank you, Baptiste. I can comment first on some more tender activities. So we do see that there's 3 mega-crews on the Viridien in the Middle East. One of them is in tender phase at the moment, and we have submitted our bid. We expect to hear in early Q4 about that decision. Then they have 2 more coming on the back of that, which timing and scope is still being discussed. We also see mega-crew potentially in Mexico. So we do believe that the tender pipeline for SMO is quite strong towards the end of this year and into 2027. Most of that revenue will be delivered in 2027 and onwards. On the cost cutting, you want to add?

On the cost cutting, so we are constantly looking at measures, simplifying the portfolio increase -- products. So I think Henning mentioned that we have currently, the divestment of gauge business, which is ongoing. So that's part of the measure we look at and others like constantly looking at what we call [indiscernible] which, in this case, we would simplify the price.

So it's, I would say, a continuous improvement on type of measures for more drastic measures, I mean, let's see the outcome of the tender and the pickup in activity. Hopefully, we will be successful and go back to a more normal level of activity, which the current business is sized for. If not the case, we will take the appropriate decision on the business itself.

Thank you very much.

There are no further questions on audio lines. Now I would like to hand back to Alexandre Leroy role for any written questions.

Yes. We have just a question on Internet. Basically, the question is, can we be more specific on the timing of the Capital Market Day.

Yes. So we have said 2027 at the moment. We will come back probably next quarter with the exact date.

That's all on my side.

Okay. So as we close the call, I want to leave you with 3 key messages. First, I want to thank the all Viridien employees for their hard work, dedication and commitment over the past few months. Their hard work has enabled us to achieve these results. We have the best team in the industry. Now welcome to the company has been fantastic, and I look forward to working together with this team as we continue to build on this matter.

Secondly, the underlying fundamentals for our industry is strong. The focus on energy demand, replacement reserves, energy security are all supporting a stronger outcome. We see this in our tender pipeline and bookings today.

Thirdly, Viridien is well positioned to take advantage of these stronger fundamentals where our asset-light differentiated technology business model enables flexibility, resilience and improve performance across the market cycle. As exploration activity strengthening and demand for advanced subsurface and digital technologies continue to grow, we remain confident in our ability to deliver our full year objectives and believe Viridien is well positioned for long-term growth.

Thank you very much. We can now close the call.

Thank you, everybody.

Thank you. Bye-bye.

[Interpreted] Ladies and gentlemen, dear shareholders, we're very happy to welcome you today for our shareholders' meeting, our Annual General Meeting. As a preliminary in line with our regulations, we'd like to inform you that our general meeting will be -- or is being webcast and will also be available, of course as a replay. So please switch off your mobile phones. And if you haven't already done so, you might like to pick up a translation headset from the hostess in the room because there will be a contribution made in English.

I'd like to now conduct the formalities, the legal formalities to set up the committee of the meeting. In line with Article R. 225-101 of our French Commercial Code, it's being proposed to the 2 shareholders representing the majority of the votes here to kindly become the scrutineers. And we have with us today DNCA Finance, who hold 3.6% of the registered capital represented by Mr. Boris Radondy. Also AXA Investment Managers, Paris, holding 0.68% of the registered capital represented by Mrs. Heloise Courault. Thank you to both of you.

These 2 shareholders present today holding the largest number of votes, have on a prior basis accepted the post of scrutineers and we would like to thank them for doing so. Mr. Eduardo Coutinho on my left, who is the Chief Legal Officer of the group and member of our eLTR, Executive Leadership Team, is also the Secretary of the meeting. We've had the pleasure to welcome the members of our Board of Directors, Mr. Philippe Salle, who is Vice Chair and Lead Independent Director.

In the room, we have Mrs. Anne-France Laclide-Drouin, Mrs. Colette Lewiner, Mr. Michael Daly, Mrs. Amelie Oyarzabal and Mr. Mario Ruscev. Mr. Olivier Jouve unfortunately couldn't join us here today, but he is attending the meeting, thanks to the Internet and to the webcast. We also have members of our executive leadership team, Mr. Henning Berg, Director of Operations, Chief Operations Officer, who is the candidate to the post of Board member and future CEO with Mrs. Emma Muller, who is in charge of Human Resources; Mr. Emmanuel Odin, who is in charge of Sustainability; and Mr. Jerome Serve, who is the CFO.

We'd like to also thank our statutory auditors, Deloitte & Associes, represented by Mr. Emmanuel Rollin; and BDO Paris represented by Mr. Eric Picarle, who will present their work on behalf of the joint auditors later on at this meeting. As the committee has been set up, now I'd like to formally open our session. I'd like to inform you that we have looked at the attendance sheet and the number of shareholders present, represented or who have voted by correspondence represent in the current state of our count, a total of 7,216,212 voting rights. That is 52.79% of shares with voting rights. We'll give you the definitive figure when we vote on -- before we vote on the resolutions.

The quorum of 25% required for a combined general meeting is therefore achieved. In preparing this combined general meeting and in line with legal requirements, prior notice of meeting was published in BALO official Gazette on the 17th of April 2026. The combined general meeting was convened through a notice published in the BALO and in Les Echos.fr on the 13th of May 2026. Therefore, we are duly convened. On our desk here, we have all of the documents for the meeting that are required by law.

These documents were published on our website and were made available to the shareholders at the head office of the company within the legally required deadlines. I'd like to also inform you that we did not receive any written questions or any request to incorporate any other draft resolutions apart from the ones that have been published or items on the agenda. So the first part of the meeting will be the presentation of the business activities and the financial results for 2025, and then we'll give you some insight into the first quarter results for 2026 and the prospects for the group for the coming year.

Then our statutory auditors will make their report. We will then do an update on governance with the presentation of the composition of our Board of Directors and its committees. And finally, we'll present the main items of the compensation policies for the corporate officers for 2026. Like every year, we'll also give you the floor yourselves, of course, during the Q&A session before we have the poll on the resolutions.

So I'd like to now review our operational and financial performance in 2025. Then I look at Q1 of 2026 and the prospects going forward, the outlook for the company. Viridien is now a company that's a high-tech company in the area of geoscience. We're a leader in our 3 core businesses, that is Geoscience, Earth Data and Sensing & Monitoring. Our solutions that we offer to our clients are mission-critical to meet the complex challenges connected with natural resources, also connected with the energy transition and their infrastructures.

And we managed to leverage on our expertise so as to gradually develop in adjacent markets. The markets I see on the screen here, low carbon, HPC, High-Performance Computing and structural health monitoring. We are a class leader in terms of ESG in our sector. We have high ambitions. We cover all the aspects of ES&G, and we're acknowledged by rating agencies in those regards.

Here are some items of interest, especially carbon emissions. We've committed by 2050 to be carbon neutral. In the meantime, we set ourselves interim objectives. And in 2025, we already reduced by 83% our CO2 emissions in Scope 1 and Scope 2 compared to 2019, which was the baseline.

The other metrics you see here are the number of female members in management posts and 26.8% was the figure in 2025, as you can see. When it comes to employees, we have 3,136 people in our organization. The bulk of our headcount in Geoscience and Sensing & Monitoring. And geographically speaking, we have a big footprint in France and in the U.K., too. And then in North America, we have quite a lot of staff too, and we have a 70-30 breakdown concerning the female members of our staff. Then let's review the operations next.

Here's a summary of the performance for 2025 -- fiscal '25. It was a final step along the way in our transition towards our 3 core businesses that are quite differentiated and the asset-light model -- business model that we committed to in 2018 that has now finally been set up in 2025 with the full exiting from the commitments connected to the vessels. Also, it was an important step along the way in our financial transformation because we refinanced successfully our bond debt, and we pushed back the maturity date to 2030.

We also generated a positive cash flow of $107 million. The objective was $100 million. So we overshot at our revenue figure up by 4% over the period of the year, supported by our Geoscience activities that put in a sound performance, also defended by a business model that's quite differentiated. And then when it comes to our data -- Earth Data library, we did very well. And in terms of Sensing & Monitoring, well, they were slightly down. When it comes to profitability, the EBITDA exceeded $550 million worth, and the net income progressed by 40% in 1 year.

I already talked about the $107 million of cash. And that reflects, in particular, this transition towards an asset-light model and our new modus operandi, enabling us to project ourselves into a future where we will generate a recurring positive cash flow. In line with our commitments, all of this cash generated was devoted to driving down our debt deleveraging, and you have more detailed information on the next slide coming up and the refinancing that we did in March helped us to drive down our gross debt by $230 million on a like-for-like basis, ForEx-wise in 2025.

So I'll now review quickly each of our core businesses. We start off with Geoscience, fine growth in 2025, the third year running where we post growth. This business is driven by our differentiation, in particular, in our 3 core businesses, the U.S., Gulf, Brazil and Norway. And we're developing also, by the way, in other geographies, especially in the Middle East. This is a long-haul piece of work, of course, to develop there, but we achieved fine results last year, especially a positive momentum in Abu Dhabi and in Saudi Arabia.

Here we see productivity gains measured by the total production per employee, which is continuing to go up year in, year out. And that's connected with the growing use of our computing capabilities and also the fact that our algorithms are being developed very well, too. You'll see these results being reflected in improved profitability too, of course. Then here, we sum up the reasons why this business model for Geoscience is quite differentiated. It's subsurface imaging and the activity in the seismic and geophysical value chain that differentiates us the most. We have highly competent people. We're innovating the whole time, and we've got technological resources that are quite substantial, especially when it comes to computing capabilities.

So that is a big entry barrier for others. And our model is underpinned by these 2 pillars. We have the expertise and the people dimension. We are loyalizing the best experts around the world working for us, and we have a culture of excellence and a service-focused culture. The kind of profile that we recruit are PhDs very often and particularly in physics. And by nature, that people really focused on resolving problems and problem solving. And they work with our clients hand-in-hand so as to try to continuously bring technologies forward.

The second main pillar of our model is our expertise in algorithms and in High-Performance Computing, HPC. At the end of 2025, we had 700 petaflops of computing capacity that's being increased every year. So our model is to increase our capacity the whole time continuously. And we decided in 2025 to widen our infrastructure in the U.S. so as to continue to grow that computing capacity. Then finally, it's important to recall too, you see this on the right-hand graphs that we are part of development and production a lot, and we're not just exposed to exploration as was the case at the start of the company.

So we're pretty balanced in the value chain in exploration and production, and we work for all the different clients. So that gives us a market share that is greater than 50% globally in that sector of Geoscience. If we move on now to the Earth Data part of the business. I didn't comment on the revenues of Geoscience $440 (sic) [ 444 ] million, I think it was if my memory serves the speaker. Here, we see the revenue figure was up by 6%, $406 million, and that growth was driven by demand for our data library, especially in our key basins, that's the U.S., Gulf, Brazil and Norway.

And there's another effect that is the consolidation of the clients on the market. And when there's consolidation going on in the industry, there are data transfer costs from one client to another and with several of those consolidation transactions last year, and that generated revenues for us. At the end of 2025, the net value -- net book value of our data library was $414 (sic) [ 494 ] million. And you'll see the breakdown of that book value here in the key basins as it breaks down into the key basins here on this slide.

This is a young data library, by the way. So here, we wanted to present the general strategy that we adopted in the last few years, so to continue developing this business. There are 3 main strands. Firstly, we have the data library I mentioned. And we're continuing to refresh it and extract more value from it from the data that we have already by investing 10% to 15% of our annual CapEx spend, $200 million to bring in added value, thanks to the most recent technologies in Geoscience here.

We have clients interested in reimaging processes last year. We did it for Norwegian client, NVG South, but also in Cote dIvoire, reimaging for clients that requires minimum expenditure on our side. And then another focus is to bolster our presence in the key basins. We have a big footprint, and we're investing further in the legacy data, the existing data as between 2/3 and 80%. Last year, it was about 80% of our total figure.

So we have Laconia OBN in the U.S., Gulf. We have Utsira North OBN in Norway. OBN, it's Ocean Bed Nodes. At the -- on the ocean bed, these are more advanced technologies that clients are looking for these days. So to better understand what's going on in the subsurface and invest in a more focused, efficient way. And the last trend is to position ourselves as of now in the upcoming emerging key basins. We've got to identify them and invest in a modest way so as to adopt ourselves. Adopt the position, we do it through the reimaging, maybe of data -- public data or making moderate investments in partnerships.

And here, we listed some investments last year in Malaysia and in the equatorial margin as it's called in Brazil. And next, we'll move on perhaps to Sensing & Monitoring, which was down 5%, that's the revenues at least in 2025. And what you see is it's nuanced. We have onshore that's more or less stable, thanks to a very broad installed base. So onshore, fairly stable, fairly flat and marine going down. As we've seen in latter years, the revenue figure has been going down, and that continued in 2025.

Next, if you look at our strategy when it comes to Sensing & Monitoring, when it comes to exploration and production, our core business representing 80% of the revenue figure for SMO last year. Well, it's really driven by our installed base with a market share of about 50% globally. And thanks to that, installed base, we have this recurring business. We're trying to develop services around these products that we sell. And that represented 15% roughly of the 80% that I mentioned of the core business revenues. And we're continuing to invest about $30 million per year in R&D as well so as to target future developments to bring in new technologies and innovations to market the whole time.

Last year, we rolled out what we call Accel which is onshore node technology. So for our customers that are service companies, it gives them operational gains of about 30%. So it's very worthwhile for them. And we started in 2026 to do our first sales of the Accel Technology. So we also want to step into new markets in our 3 business areas. That's the business, of course -- I mean, this particular business SMO is the one with the most new business.

And 20%, that's structural health monitoring that posted good growth that will continue growing in 2026 going forward. And the third strength in our strategy, it's to bring down the breakeven point. And we embarked in 2024 on the plan for 2 years -- a 2-year plan to bring down the breakeven point. So to bring down our fixed cost by about USD 30 million and to free up USD 60 million of working capital requirements. So thanks to all these actions that we've been taking, we brought down the breakeven point so as to be capable of remaining in the positive and generate cash in respect of revenues that will be the lows we will have seen in the last 10 years.

So let's have a look at the financial statements and figures. Remember, sales -- next slide, please. So $1.17 billion in terms of sales, up 4% with 2 different types of trends for data, digital and energy transition in Geoscience and data up 8%. And this is driven by our technological differentiation and Sensing & Monitoring down by 5%. Next slide, please. If you look at profitability impact, profitability has increased significantly EUR 551 (sic) [ $551 ] million in terms of EBITDA, a 21% increase versus last year, and the margin is standing at 47%.

So if you look at our 3 core businesses, the EBITDA margins are different. Data, digital and energy transition posted a high EBITDA margin. Remember, when we talked about growth for DDE and this segment contributed quite a lot on the EBITDA margin. But beyond that, it was generated by the increase of the sales by 4% and the productivity gains that we touched upon earlier for Geoscience. And why? Because we've been using our computing capabilities to automate our algorithms. And the third dimension, we haven't paid any penalties connected with the vessels and ships. For those who have been following our company for quite a long time, we paid high fees in 2023 and 2024.

And in 2025, we didn't have to incur these costs, bear witness the results of the EBITDA. And there's another dimension that is less conspicuous for the shareholders. We've continued to work on the overheads of our company, and we lowered down these central costs from $38 million to $28 million, and we've managed to handle our costs. And the currency exchange rate was deferrable, not favorable. And in fact, the dollar depreciated and the euro increased, but in dollars terms, we've managed to reduce the corporate costs.

We are a French company. So I need to show you the IFRS figures on the understanding that we consider that the figures of the business activities on which we communicate, these are the figures that better mirror our business activities. The difference between the IFRS figures and the method have been used for the business activities [ including ] it is data, so there are lots of projects that we acknowledged when the projects move ahead.

This does reflect the cash flow figures, the billing figures and the savings made with these products. But with IFRS, you cannot acknowledge these projects when the projects end. So there are some distortions last year. We had lots of ongoing projects, projects that were not finished and these projects will be completed. This year, there was a negative impact on IFRS. But despite this situation, the net income has increased by 40% in order to reach $71 million. The global cost of debt is stable.

And if you look at the other financial expenses, they do reflect nonrecurring costs connected with the refunding of our debt, especially bonuses that we had to pay and you had to consider the currency effect that was not favorable, having an impact on this business line for the cash flow now. So better margins, better results, cash generation has increased, and this is the main financial indicator that we've used for the results and $107 million in terms of cash flow generation, overshooting our objectives to the tune of $100 million.

In 2024, we generated $56 million. The 2 main factors that are instrumental in this increase is EBITDA, but we've made some lower investments regarding data earth library, EUR 250 million this year and $200 million this year. And these positive elements were offset by a negative variation of the working capital requirements and other items and the impact of debt refinancing. So what you see here on this table, you can see the profile of the company, the brand-new profile of a company, whereby we can improve cash regeneration in a significant fashion and in a sustainable way.

So to end my presentation, let's talk about the debt. Over the past few years, we've managed the balance sheet very stringently. We want to reduce the funding cost, and we want to beef up the risk profile of the group. So on a like-for-like basis, over the past 2 years, we've managed to reduce the debt, EUR 230 (sic) [ $230 ] million and it is $849 million. So in 2025, we embarked upon 2 major actions, debt refunding or refinancing in March with a maturity date that has been postponed to 2030.

And we used part of the available cash to dwindle the debt amount that we've refinanced. And second, we've continued our path. We had to redeem our debt. We had to deleverage in line with the commitments that we made. We used the cash that was generated during the year. So we can reduce the financial expenses. So this is a very virtuous circle. And now we have more cash so as to deleverage. One of the key indicators and visible indicators of this improvement is the leverage ratio from 1.6x to -- from 2.6 (sic) [ 2.4 ] to 1.6x, and we want to improve that ratio. Regarding the Q1 results, when we presented the 2025 results, we said that, that the start of the year wouldn't start very well, that's still the case.

If you look at the situation, the customers, I mean, made their budget in 2025 that anticipated a drop in the oil price then hence, a drop in their revenues for part of 2025. And the start of the year was quite cautious for them, but there were some tensions in the Middle East that emerged and the energy markets are more volatile and the customers are more cautious and -- especially in terms of decision-making. In the first quarter, we generated sales worth $214 million and the profitability is in line with the sales and earnings.

And what is important is that we've managed to get a positive cash flow to the tune of $26 million as against minus $20 million last year. And we used $41 million of our cash in order to deleverage for the first quarter. Let's have a look at the outlook. What the future has in store for us. So the war in the Middle East has reinforced our beliefs. Security issues are pivotal. Energy supplies is also a key.

And you need to take into account the diversity of our portfolio. You have lots of customers, customers turning to Africa, turning to Asia. And it's important to have a positive -- structurally positive market and the price of a barrel is above $90 as against $60 late last year. So in the midterm, this structural rise in oil and gas prices, together with our diversification policy for supplies, and there's also a need to reinforce reserves in order to meet the needs of demand for gas and all this will bolster the investments in our sector, especially for the offshore part.

And we are extremely exposed to that. And for the region, this situation is extremely positive and favorable because we will be in a position to support underpin data, data, subsurfacing data, technological data, we'll be able to better understand the subsurface, the offshore basins are complex. These are the quarters, business activities are quite expensive. So if you can get as much information as possible for the -- of the situation, this is pivotal for our customers.

All our customers, exploration companies, production companies are getting prepared to invest in exploration, in frontier exploration, something that we've seen in the financial publications over the past few months. So frontier exploration is key, but it's a matter of optimizing the production of the existing fields and access to high-caliber imaging is absolutely critical for these projects to be successful. So if you look at the first quarter, it's been sluggish, but this does reflect the expenses of our customers.

And in the second part of the year, we'll be able to catch up. In the first quarter, we confirmed our target for cash generation worth $100 million, and the seasonality is historic and comparable to that we observed last year. To end my presentation, we are very confident about Viridien's position as part of the industry, and we have a key role to play, a long-term player in order to support the customers, so much for the results of the operational figures.

So shareholding, there's a piece of good news. So there are lots of good news regarding the shareholding base. Individual investors represent 70%. Individual investors have continued to represent a significant proportion to the tune of 30%. But this figure is down by 10 percentage points year-on-year for the institutional investors, 70% with 16% of funds based in North America, a lot of diversity, 26% in the United Kingdom and 16% in France. We have leading French and international asset management firms.

They have acquired stakes in the company, including Janus Henderson, Schroders, AXA IM, Amundi and the Caisse des Depots et Consignations. The consignment and deposit office. Now I invite the auditors to present their work and reports for the financial year 2025.

[Interpreted] Thank you, Chair. Dear shareholders, on behalf of the statutory auditors, Deloitte & Associes and BDO Paris, I will report to you on the performance of our duties for the 2025 financial year. We've issued 4 reports to assist you informing your judgment when voting on the resolutions. So 3 reports relating to the ordinary general meeting. These reports cover the financial statements and related party agreements and one report relating to the extraordinary general meeting.

This report is required by law in connection with the proposed delegations of authority of powers to your Board of Directors to carry out operations. Finally, BDO Paris issued an additional report on the certification of sustainability information, but it is not subject to approval by the general meeting. We are not going to look at them in detail, but let's have a look at the key points and conclusions. As part of the Ordinary General Meeting, I will present the report on the annual and consolidated financial statements as well as the special report on related party agreements.

The financial statements were approved by your Board of Directors on February 26, 2026. For this meeting, we issued reports on the audit of the group's consolidated financial statements and the parent company's annual financial statements as of December 31, Pages 315 to 318 and 354 and 357 of the universal registration document. Our work is designed to provide reasonable assurance that the financial statements presented to you are regular and fair in accordance with French accounting rules and principles and that they give a true and fair view of the company's results, financial position and assets.

Our reports on the consolidated and financial statements also highlight the key audit matters, the areas we consider to be the most significant in the audit of the region's financial statements. For the consolidated financial statements, the key audit matters related to the valuation of goodwill and of data studies. For the statutory financial statements, the key audit matter concerns the valuation of equity investments and related receivables recorded on the company's balance sheet.

All of the work and conclusions were regularly discussed with the group's Audit Committee and its Board of Directors. In conclusion, having obtained the necessary evidence to fulfill our engagements, we issued an unqualified opinion on both the parent company's annual financial statements and the group's consolidated financial statements. You will note that a technical emphasis was included in our report on the annual financial statement regarding a charge in accounting method resulting from the application of ANC regulation.

Still within the Ordinary General Meeting, we issued a report on related party agreements. This report states that we were not informed of any agreements subject to approval by the general meeting nor of any previously approved agreements that continued during the period as part of the Extraordinary General Meeting with respect to the resolutions relating to the company's share capital presented in the extraordinary section of the meeting, we issued a report, which is available on the company's website.

And this report covers the proposed authorization to grant existing or newly issued free shares. Our procedures notably included reviewing the content of the Board of Directors' report on these transactions, assessing the proposed arrangements in light of the applicable legal provisions. We have no comments to make on either the terms of the transactions or the information provided in the Board of Directors' report. Ladies and gentlemen, Madam Chair, thank you for your attention.

[Interpreted] Thank you, auditors, I mean, for your presentation. So Philippe Salle will present you with the latest developments regarding the governance of the company.

[Interpreted] Thank you, Sophie. Hello, everyone. Good morning to all of you. I would like to mention again here a major decision made by the Board of Directors, which is fully in line with the group's principles and of good governance, namely the return of a decoupled governance structure. Indeed, following the end of Sophie Zurquiyah's term of office, during which she held the dual roles of Chair and Chief Executive Officer, the Board of Directors decided to reinstate a separation of roles commensurate with its commitments last year.

Accordingly, Sophie Zurquiyah, will step down today from a role as Chairman and Chief Executive Officer and will hence will serve solely as Chairman of the Board of Directors, subject to the renewal of the term of office as a Director by this general meeting. Henning Berg, who is here, whose appointment as a Director is also being put to the vote at today's meeting will be appointed Chief Executive Officer by the Board of Directors, which will meet in the wake of this meeting.

As for me, I will continue to serve as Lead Director and Vice Chair of the Board in order to ensure a balance of power. The Board of Directors comprises 8 directors. During the 2025 financial year, the Board met on 9 occasions with an attendance rate of 100%. One meeting was devoted entirely to the group strategy with a particular focus on new business ventures. Page 34, please. In addition to reviewing the accounts and risks associated with the region's activities of the Board during the first -- the past financial year continued its debt reduction policy, proceeding with the early refinancing of its bonds and the issue attracted keen interest from national and international investors.

The Board also approved the sale of part of the Gauges business, which forms part of SMO's restructuring action plan initiated in 2024. And finally, following the recommendation of the Nomination, Remuneration and Governance Committee, the Board appointed a new Chief Executive Officer whilst ensuring continuity in governance. Furthermore, we would like to remind you that in accordance with AFEP-MEDEF code, the Board held 1 executive session last December, i.e., without the Chairman and Chief Executive Officer present.

This session enabled the Board to discuss, in particular, the governance structure and the performance and objectives of the Chairman and Chief Executive Officer of Viridien. With regard to its composition of the Board of Directors fulfilled its commitments in terms of diversity during the 2025 financial year, it comprises 50% women, 87.5% independent directors, well above the 50% threshold recommended by the AFEP-MEDEF code and our Board also comprises members of 3 nationalities, French, American and British.

The average age of directors is approximately 64. Furthermore, Board members possess a wide range of expertise in areas of fundamental significance to the group, namely energy, innovation, digitalization, technology, IT and strategy. The Board has established 4 committees reporting directly to it. The Audit and Risk Management Committee chaired by Mrs. Anne-France Laclide-Drouin. This committee met 6 times in 2025 with an attendance rate of 100%.

Then, we have the Remuneration, Appointment and Governance Committee under Colette Lewiner, who chairs it. This committee met 7 times last year with an attendance rate of 96%. Then we have the Sustainability Committee that I chair myself. This committee met 3 times in 2025 with an attendance rate of 83%. And finally, we have a new committee, which is called the New Business and M&A Committee chaired by Mr. Michael Daly. This committee met 3 times in 2025 with an attendance rate of 100%.

And finally, as I said, there's also a joint session held between the Sustainability Committee and the Audit and Risk Management Committee. That meeting was held in February of 2026 concerning sustainability reporting. That's everything to do with CSRD. I'd like at this stage to review with you the candidates proposed for renewal, reelection or appointment to the Board. We have the Board at the recommendation of the Remuneration, Appointment and Governance Committee, which proposes to renew the term of office of Mrs. Sophie Zurquiyah for a period of 4 years. That is until the end of the general meeting in 2030 that will be approving the accounts of the previous year.

Mrs. Sophie Zurquiyah has been a Board member of the company since 2018. As you know, she was CEO since 2018 and was Chairman and CEO since the 30th of April 2025 up to this meeting here today. She is 59 years of age, she is of French and American nationality. She has 8,592 Viridien shares. Her attendance rate at the meetings of the Board is 100%. Apart from her post in Viridien, Mrs. Zurquiyah is also a Board member of TechnipFMC, a listed U.S. company. Mrs. Sophie Zurquiyah, if she is renewed in office by this meeting, will be appointed Chairperson of the Board of Directors.

The Board of Directors at the recommendation also of the Remuneration, Appointment and Governance Committee proposes the appointment of Mr. Henning Berg as a Board member of Viridien also for a period of 4 years. That is until the end of the general meeting in 2030 that will be asked to approve the account of the previous financial year. Mr. Henning Berg is 54 years of age. He's of Norwegian nationality. He is COO since the 3rd of March 2026 and was appointed CEO of Viridien by the Board, which will be held today following this meeting.

Mr. Henning Berg has long-standing experience of 25 years or more in the Oil and Gas sector. All of his career was within Schlumberger, SLB, where he occupied several management posts within different operating units. With the pleasure of welcoming Mr. Henning Berg here with us, he's here in the front row, and I'd like to ask him to come and to introduce himself to you. Henning, if you would like to take the floor and give us an introduction of yourself. And Henning will, of course, speak in English which is better than Norwegian probably.

It's better than Norwegian, yes, yes. So ladies and gentlemen, dear shareholders and dear directors. My name is Henning Berg. I spent the last 27 years in the energy industry, having a variety of leadership positions within SLB across the globe. It's both a privilege and an honor to address you today and to ask for your support as I stand for election to the Board of Directors and to prepare to assume the role of Chief Executive Officer of Viridien.

I joined the group 3 months ago to ensure we had a smooth transition and to gain a deep understanding of our business, our people and our markets. During this period, I have had the opportunity to meet many employees, customers, partners and investors as well. These discussions only strengthen my conviction that Viridien possesses exceptional strengths, world-class talents, recognized technology expertise, strong customer relationships and a unique position in the markets we serve.

As I prepare to take on the new responsibilities, I would first like to acknowledge the remarkable work accomplished by my predecessor, Sophie, and by all the teams in the group. Their commitment, expertise and dedication has built a strong foundation of which we'll continue to develop the company. My priorities is straightforward: to build on these strengths, further reinforce our leadership position, continue executing our technology differentiated and asset-light strategy with discipline and create sustainable value for our shareholders.

Maintaining a strong balance sheet and continuing our deleveraging efforts will remain a priority. While every leadership transition naturally brings fresh perspectives, continuity also matters. The strategic direction of the company remains clear and unchanged. I firmly believe the long-term performance is built on innovation, quality of products and services, operational excellence and financial discipline. These principles are deeply embedded within Viridien and will continue to guide our actions.

Finally, I attach great importance to maintaining an open and transparent dialogue with all stakeholders and especially with our shareholders. Trust is earned through consistency, clarity and execution, and I'm fully committed to preserve and strengthen that trust. I'm delighted to see you here today and look forward to meeting many of you in the months ahead. I'm excited to take on this responsibility and grateful for the trust that you are placing in me and as we embark on the next chapter of Viridien's development. Thank you for your confidence.

[Interpreted] Thank you, Henning. Thank you very much. I will give the floor now to Eduardo, who's our Chief Legal Officer in the group, who will present the main items concerning the compensation, the remuneration of our corporate officers.

[Interpreted] Thank you, Philippe. Thank you. Good morning, everybody. I'd like to, first of all, review together the items making up the remuneration of the corporate officers, starting off by the items paid to the Chairman of the Board in 2025. Mr. Philippe Salle was Chairman of the Board from the 1st of January to the 30th of April 2025. His remuneration was therefore paid to him on a pro rata basis. In respect of his ex post remuneration that is in respect of fiscal 2025, the amounts paid or allocated are in line with the policy approved by the shareholders' meeting in 2025 and were paid out on a pro rata basis that is EUR 56,668 as fixed components and EUR 23,333 variable compensation.

Concerning the other items of his compensation, the Chairman of the Board is eligible for the general protection and health scheme, and he has a company car but did not avail of that. Let's move on now to the ex post remuneration of the CEO for 2025. Mrs. Sophie Zurquiyah was CEO from the 1st of January to the 30th of April 2025, her remuneration was therefore paid on a pro-rata basis as a consequence of that and is in line with the policy approved by the shareholders in 2025. Mrs. Zurquiyah, therefore, received on a pro rata basis, fixed remuneration for a period when she was CEO of EUR 226,800.

The Board of Directors on the recommendation by the Remuneration and Appointment and Governance Committee evaluated the amount on a pro rata basis of the variable annual remuneration as being EUR 293,964 for 2025 on the basis of general achievement rate of objectives of 129.62%. Finally, it was decided that concerning the long-term incentive, long-term remuneration that is currently being vested, Mrs. Zurquiyah would avail of vesting on a pro rata basis for the plans in 2024 and 2025.

Let's now move on to the ex post remuneration of the CEO for 2020 -- of the Chairman and CEO for 2025. Mrs. Zurquiyah has been Chairman and CEO from April 30, 2025 onwards. Her remuneration was therefore paid out on a pro rata basis as a consequence of that. Concerning the components of remuneration paid or allocated to the Chairman and CEO in respect of 2025, these are in line with the policy approved by the shareholders in 2025. The Board of Directors after the recommendation -- on the recommendation, sorry, of the Remuneration, Appointment and Governance Committee, apart from the payment of a fixed remuneration on a pro rata basis of EUR 503,600 has evaluated the pro rata basis of the amount of annual variable compensation at EUR 652,736 for 2025 on the basis of a total achievement rate of objectives of 129.62%.

So in addition, Mrs. Sophie Zurquiyah was allocated 10,000 shares in 2025, and the definitive vesting will be done on a pro rata basis, subjective to performance conditions. The vesting period of these components of remuneration is 3 years. Concerning the ex ante remuneration policy of the Chairman and CEO for 2026, this will be applicable to Mrs. Sophie Zurquiyah for the period between the 1st of January to the 3rd of June 2026. This provides for the maintaining of an annual fixed compensation of EUR 755,400 paid out on a pro rata basis.

Concerning the annual variable portion, the principles remain unchanged. The target is 100% of fixed remuneration with 2/3 of financial objectives and 1/3 of nonfinancial objectives. For the financial objectives, the criteria are as follows: the net cash flow of the group, the free EBITDA and the external revenues of the activities of the group. The nonfinancial objectives are focused on the following 3 points: the strategic plans of the group and for the new businesses, the management of the commercial and operational performance of the group and of the human resources in Viridien and also the social, environmental and governance responsibility of the group. And finally, in respect of 2026, another criterion has been introduced so as to vouchsafe and successful transition between Mrs. Zurquiyah, current Chairman and CEO; and Mr. Henning Berg, the future CEO.

The compensation policy of the Chairman and CEO provides for vesting on a pro rata basis of the long-term remuneration plans for 2024 and 2025 and does not provide for any long-term remuneration for fiscal 2026. The remuneration policy for the Chairman and CEO comprises other benefits such as a company car, a general protection and health scheme, also supplementary pension scheme, an international medical insurance policy, senior manager unemployment guarantee and severance pay and noncompete commitment.

Concerning the ex ante remuneration policy of the Chairman of the Board for 2026, this will be applicable to Mrs. Sophie Zurquiyah for the period between the 3rd of June and the 31st of December 2026. This policy provides now for only fixed remuneration for the Chairman of the Board, which is in the amount of EUR 350,000 per year, which will be calculated on a pro rata basis. The proposal to increase the remuneration of the Chairman unchanged since 2018 -- unchanged, sorry, since 2018, is underpinned on service done on comparable remunerations and also takes account of the previous functions as Chairman and CEO, which were fulfilled by Mrs. Sophie Zurquiyah.

This adjustment reflects also the widening of responsibilities connected with the transition process for the CEO because Mrs. Sophie Zurquiyah will have to fulfill a reinforced role in an advisory capacity and a support capacity for the transition for our new CEO, who will, for the first time, become the CEO of a listed company. Finally, it's planned too that Mrs. Sophie Zurquiyah will retain her current benefits as Chairman and CEO, especially international medical insurance policy and the company car.

Concerning the ex ante remuneration policy of the CEO for the fiscal year 2026, this will be applicable to Mr. Henning Berg for the period between the 3rd of June and 31st of December 2026. It provides for an annual fixed compensation of EUR 650,000 paid out on a pro rata basis. Concerning the annual variable portion, the principles remain unchanged. That is the target is 100% of the remuneration, the fixed remuneration with 2/3 of financial objectives and 1/3 of nonfinancial objectives.

For the financial objectives, there are 3 criteria: the net cash flow of the group, the free EBITDA and the external revenues of the group's business activities. The nonfinancial objectives are based on the following points: strategic plans of the group and for the new businesses, the management of the commercial and operational performance of the group and of the human resources of the group, the social, environmental and governance responsibility of the group.

And finally, in respect of 2026, another new criteria has been added in so as to guarantee a successful transition between Mrs. Zurquiyah, current CEO; and Mr. Henning Berg, the future CEO. Concerning the long-term variable remuneration, this remains conditional on certain basic elements concerning the growth of the stock price of Viridien compared with the relative trend of an index composed of a group of peers, then the revenues of the new activities that we call beyond the core, the average net debt over EBITDAs and the ESG performance of the company. The vesting period and the depreciation period for the performance conditions for this long-term remuneration will be 3 years.

The remuneration policy of the CEO also comprises other benefits, including a company car, a general scheme for protection and health, also supplemental pension, an international medical insurance policy, senior manager unemployment guarantee, severance -- indemnity clause and a noncompete commitment and the CEO will also receive an allocation for housing of a total amount of EUR 70,000 paid out on a pro rata basis concerning the remuneration policy applicable to the Board members in 2026.

The total package -- annual package is maintained at EUR 550,000 unchanged since 2020. The rules for the breakdown of the remuneration of the Board members, there will be a fixed portion representing 1/3 and a variable portion, which will be preponderant representing 2/3 identical to 2025. However, this policy provides for a revision of the remuneration fixed and variable with an increase plus or minus 10% indicated in pink on the screen. That's an increase of roughly 10% as you see on the screen.

And I give the floor back to Mrs. Zurquiyah now.

[Interpreted] Thank you, Eduardo, for this presentation. I think at this point, we'll open the debate. We'll have a Q&A session. Before giving the floor to our shareholders, I'd like to recall that in line with the regulations in force, our meeting is being webcast. The recording will then be available as a replay on our website. Also, when you take the floor, you may or may not give your name, you do not have to. You will not be filmed. We will only hear your voice and record your voice. So we will now open the Q&A session, question-and-answer session.

[Interpreted] Madam Chair, I asked for a paper document when I came into the meeting and they couldn't give me one, and I can't work on a tablet like that. I take notes, I do percentages and I do mental arithmetic and I write down some of my sums, so as to be able to advise my clients what to buy into their portfolio. So I missed the paper that I like to work on at the meeting, during the meeting. I'd like to have paper documents available so we can do our job properly, please.

Secondly, I see you presented your figures as per your business figures as opposed to IFRS -- the IFRS standards and which would be more conservative. When the IFRS figures get better, I assume that your business figures won't be presented anymore with the IFRS figures. Anyway, my question concerns the income, the results -- financial results. Having a quick look at this tablet, it seems to me that your results stem from a drop in the amortization, representing EUR 90 million or so.

Otherwise, the income, the result for 2025, the earnings would be less than what we had in 2024. Could you give us some details on that, please?

[Interpreted] Thank you for your comments that we will take on board. Also regarding the results. I talked about the increase in the performance that is indeed connected, of course, with an increase in our revenues, more productivity as well, and we have boosted our margins in general with -- we've had cost reductions. So our CFO is with us. He can add further comments if needed.

[Interpreted] Well, the net income, as you've seen, is presented as per IFRS requirements. So our income as per IFRS, especially from the data library, it's less substantial than what we had in 2024. The library is depreciated over -- amortized over 4 years or depreciated over 4 years. So with the lesser income, the amortization is lesser, too. That is hopefully an explanation. But I mean, we have an obligation to present things in a certain way. And the IFRS results are presented every quarter and every year.

So there's no issue on that. It's just it's less interesting to really take the pulse of Viridien's business volume, business activity. If you do say mental analysis, you'll see we're really closer to reality. But we present both. We do present both.

[Interpreted] I'd like to, first of all, thank you, madam, for the work you've put in and congratulate you and congratulate Mr. Henning Berg. And also, I would wish Mr. Henning Berg, the best going forward. Now you continue along the same lines, as you said. I have a question on Sensing & Monitoring, SMO. It's hard for me to understand with the current geostrategic context we have in this world, how -- you haven't mentioned it much and how -- could you tell us more about how you're doing in that respect?

[Interpreted] Well, the market is -- market is, well, a niche market, a restricted market that's gone down over the last 2 years. And you will recall that in Sensing & Monitoring, we're selling to service companies, ones who acquire seismic data, the activity we exited from the vessels and the onshore activities. And we provide services to them. And those service providers provide services to the end users who are the exploration and production companies.

So we're in the second line, so to speak, compared to the end user, the end client. And when the markets are complicated or they find it hard to project themselves into a positive long-term dynamic. Well, those companies in the middle stop buying in CapEx. We sell equipment. That's CapEx for them, though. And at times like this, they don't do that so much. So the context is the acquisition of data is fairly depressed and these service companies don't buy much equipment these days.

If you look at the different subsets, Marine, the streamers of the ships are 12 years old and these streamers haven't been renewed for quite a [ long mind. ] Remember, in 2014, there was a bullish trend. And this is a trend that we haven't experienced. And in fact, they have to deal with the sluggish revenues and the margins that are not too high, cash generation is poor. So in the end, we will start to fast track the sales of CapEx when the companies will cast a future-oriented eye, taking into account their momentum.

So regarding the Marine part, we made the most with equipment with sensors, sensors being sold to the Chinese companies for Middle East operations, but we are facing some headwinds regarding that topic. And -- once everybody is equipped, you are dealing with a kind of recurring market. And for earth business activities, the installed base is very broad. So that's why we managed to bolster our operations at a time when the market is not really buoyant in terms of acquisitions. So we think that the situation will improve. We are in a positive cycle that these companies will have to cast the future-oriented eye regarding their long-term strategy.

We've expanded many efforts in terms of diversification in this business. We took over 2 companies over the past few years.

[Interpreted] I'm here. Okay. So different questions, I mean, to put to you. So we have secured a foothold in China. What do we do in China? We -- 2 subsidiaries, one fully owned, one 50% owned. China has a reputation for adopting a hard stance to -- with the foreign companies, we've been profitable. So there are fewer shares than in the past because the shares have been pulled. I wish we could have voted for a symbolic nominal dividend, EUR 0.01 of dividend.

It's less than EUR 80,000 in terms of cash being consumed or used. Regarding the economic situation, where do you think that -- when do you think that -- when all companies will buy contracts again? I have in mind the 2 French companies, the 2 oil companies, Total and [indiscernible]. So Total said we've reduced our costs drastically, but we can open the flood gates says Total, we have more margins as it were.

And Maurel & Prom, they have a different stance. We would like to buy some assets. We are focusing on Venezuela because there are some contracts over there. But it's a little bit expensive. So we want to invest now. This is their position. So I have questions as well.

[Interpreted] Of course, thank you for the 3 questions. As regards to China, indeed, we have 2 entities, fully owned Viridien company. We are working on geoscience-related activities. And we also sell equipment -- Sensing & Monitoring equipment. And the other entity, 51%. This is a joint venture within Sensing & Monitoring business activity. And the objective is to make equipment in China. We make a subset of equipment in China for the international market.

And we are very happy with our business activities in China. It's a joint venture that was established more than 20 years ago. And in addition to that, this joint venture works well, but the Chinese market is different to the other markets. Why? Because we are dealing with some customers who are eager to acquire technologies that are less interested in services. So video science and services business activities are quite modest. We sell our software, our imaging software.

Once again, there's a rationale acquisition of technologies, we are selling software so that they can use them and we sell a lot of equipment to the tune of 20% or 30% of the revenues of Sensing & Monitoring with China. But if you look at this equipment, they are made in China or in other international countries, especially in Middle Eastern countries, so much for China. Now allow me to talk about shares and dividends. We have a clear stance. In order to deliver some value to the shareholders is to curtail our debt to deleverage.

So if you take into account the fixed corporate value, when you reduce a debt, it will be converted into an equity. So at the end of the day, you will make some money when we redeem our debt. As regards dividends, we will look at the situation when the leverage level is deemed to be acceptable in line with the risk profiles of the companies. So we will be dealing with that at a later stage. Regarding the customers, you talked about Maurel & Prom -- you talked about Maurel & Prom and TotalEnergies I started to talk about Maurel & Prom. We don't work with them because of our assets.

They are focusing on assets, and they are geared towards Africa, and we would like to work with them, but they are not in our targets. And therefore, TotalEnergies, we've been working with them globally, they said that they are more open-minded to the increase in CapEx. So the addressable market, this is the CapEx of production and -- exploration and production companies. This is what they said, but things do not move a lot. So capital discipline is pivotal and the budgets have increased by a few percentage points a year.

And when we put the question to them, following the cash generation that is the result of the rising oil barrels. So they told us that they will be very disciplined regarding capital allocation. In 2016, and up to the COVID years, some of them faced existential threats, so they don't want to be in this situation again. So capital discipline is key to them. We'll see what the future has in store. But in 2026, we don't expect any increase in expenses.

[Interpreted] Another question that I would like to put to you. So the Brent crude oil $100 a barrel. What's going to happen if the barrel is $50 a barrel. What will be the impact on your revenues and sales if this situation does materialize, especially in the light of the conflict in the Middle East?

[Interpreted] There are different scenarios. First scenario, the barrel of oil might be down once the situation has been stabilized, but we need to be ready. Just a reminder regarding the asset-light strategy, there was an objective to be flexible in order to cater for the major market variations, something that we experienced in 2015 and in 2016 as well. So there was a kind of decorrelation. With COVID, the situation was tough, but our customers decorrelated their spending from the price of a barrel.

So the breakeven point was very low, $30 million, $40 million, above $50 million. Our customers feel comfortable. What does it mean? That they are comfortable, they are able to invest in their operations. They can have a correct CapEx level to maintain production and they are in a position to give value back to the shareholders, dividends or share buyback programs. If you look at the budget of customers, the barrel of oil was about $50 or $60. So if it were to be the case in the future, there might be some decreases, but these won't be substantial decreases.

In order to get some substantial decreases, the barrel should be $40 or $50. Once again, there's a piece of good news. The market is more stable. And we are not as correlated as we were in the past to the oil barrel price.

[Interpreted] Got a question regarding the computing power. It has increased by 32% in petaflops from 520 to 690 Page 7 of the annual report. What is your take on that? What is your target for the future? And what -- is it a power that you are using for you? Or do you release it? And if it belongs to you, do you outsource that to other people? And what about quantum technology? Will it change something for you? And if you had an endless petaflop capabilities, would it change something for your customers in terms of speed when it comes to finding some fills?

[Interpreted] Thanks a lot for this question. If you look at our strategy, we have a kind of unique strategy in our business, in our industry or in the industrial world, we have a perfect command of our environment and high-performance computing strategy. We have a strategy. Every year, we want to increase the computing power. You have memories, the disks and all the rest of it. But if you look at our rationale, we don't buy a huge computer every 5 years or every 3 years as it is the case for other industries.

So if you look at our trajectory, continuous improvement, we haven't set an accurate goal because with the computing power, there's a cost associated with it. We need to find a balance between the additional cost and our ability to get good margins and to beef up our margins. So we need to strike a balance, adding computing power and to be able to advance solutions and to innovate with computing power. But what is important here is to monetize all that with our customers and clients.

And to answer the third question, if we had unlimited computing power, that's not possible or feasible because the cost will be quite high and profitability levels would have to pay the price. So we need to find the right balance between the right computing power so that we can provide some differentiated solutions. Our customers are ready to pay for them at a higher price than the technologies of our competitors in terms of subcontracting.

So the computing power belongs to us. It is used by Viridien. So the bulk of it is being assigned for our own imaging needs and a small part being used for the small business of HPC and the HPC segment should increase, and it is being used across other sectors, biotechnologies or the science of materials, but we are quite small if you take into account the internal needs.

[Interpreted] [ Alfred Shahwa, ] individual shareholder. Historically, your main customers were the oil companies. So I have figured out that you've tried out to branch out, diversification strategy is key to you. What is the percentage of your sales, not taking into account all companies, then what was the trend of the past few years?

[Interpreted] Thank you for your question. BTC, Beyond The Core, all new businesses. I mean this is what we called. We have the new businesses. For these new businesses, some of them are still within the oil sector, but there are new markets with new customers, and they accounted for 10% of our revenues last year. And this year, the figure should increase with a better percentage of revenues for low-carbon business activities. It's a matter of extracting iron ores, BHP, Anglo American, Eramet in France, I mean, these are the main companies.

Regarding HPC, I mentioned biotechnologies and science of materials. As regards infrastructure monitoring, we are in the infrastructures business. We can work for SNCF in France. The French railway industry, the equivalent of SNCF in Saudi Arabia. We performed some stability studies on tracks, rail tracks. We are working on the construction of tunnels in New York. We are monitoring work in New York. We are monitoring the drilling process of those tunnels. So we have a diversified range of activities.

[Interpreted] So I've been able to find the other questions that I wanted to put to you. Regarding the memory boards, we know that prices skyrocketed at the start of the year. So I think that this has a domino effect on orders of equipment. What about the financial impact? Is it significant in the 2026 accounts? So will there be a financial impact? Next question, regarding the Middle East, do you have to repatriate people? And what about the operations? Are there minimal operations?

Some years ago, we sold some businesses there, so we are less exposed than in the past. As regards artificial intelligence, maybe you can shed light on different things. There are lots of issues here. So AI agents, are they being used on our platforms in terms of safety and security, you have young people aged 13 or 14, they can hack the agency in charge of ID cards in France.

[Interpreted] Thanks a lot for your question. We will take your 3 questions.

[Interpreted] From a technical viewpoint, on the tablet that we've got, we've got the convening brochure, but we don't have the search bar for the words. Is it possible to have the paper presentation? And is it possible to get the written questions?

[Interpreted] Oh, there was no written question, by the way. But point duly taken. So the increase in the GPU prices, demand is quite brisk for hyperscalers. So our model -- with our business model, we are protected from that because every year, we place some orders in the end, prices haven't increased. We were not submitted to the tariffs that were implemented in the United States. So as I said, we are following our trajectory because we don't place huge orders in one batch.

These are recurring orders, and we increased our computing capabilities in a recurring fashion. We have [ MD. ] We have a diversified strategy. There was a question about quantum. I haven't answered, I mean, this question about quantum technology. So we look at quantum technologies. We think that quantum technologies will be used for the subsets of our algorithms. But today, the GPU makes it possible to meet the needs of the physical algorithms that we need to address today.

Regarding the Middle East, if you monitor the situation, the situation is back to normalcy, but there's a slight difference. There is no tourist, but local businesses have picked up. Kids get back to school, life is almost normal. We've got some Geoscience sites in Abu Dhabi, Oman, Saudi Arabia. People worked from home, and there was no interruption of work, and they are back to the offices. Regarding the impact on the Middle East, offshore seismic operations were discontinued. And acquisition companies discontinued their activities, and we were selling some equipment to these.

So the sale of this equipment to these companies will be postponed. Regarding AI, we are looking at AI, how we can use AI in an optimal fashion. You have lots of objects with AI, lots of tools and solutions associated with AI. We want to segregate the use of these tools regarding the use cases, the profile of users. We've implemented some agents for some business activities. When it comes to using the HPC, we are currently looking at integrating more AI as part of the support functions in order to bolster efficiency. And no doubt, these tools will be used for the cyber hackers, and we are bracing ourselves for that potential threat, and we are getting prepared for it. A very last question, maybe.

[Interpreted] Firstly, well done for this remarkable work that you've been doing, changing the business model of the company. Mr. Chairman, I'd like to talk about the financial objectives and ask a question. On Slide 25, we summed up some figures, $100 million of net cash flow was mentioned. And on Page 23 of the universal registration document, you connect directly this objective with the payment of overdues. Now PEMEX overdues, there's $46.7 million that have been mentioned in that regard which presented as the objective. That's a receivable that was mentioned, and I think it goes back to the end of December 2024.

This is a receivable that's more than 180 days old and is impeded for political reasons apparently now. My question today is, have you seen the start of any resolution of this issue or given the local political situation, might it postpone the resolution of this particular issue until later on? Will it be resolved in 2026?

[Interpreted] Well, I'll give you an answer, and I'll let Jerome add anything he'd like to add. In the first quarter, we received certain settlements. We didn't communicate on the question -- on the figure in question, but receivables were unlocked in Q1 of this year, and we do hope that we'll recover them in full during the course of the year. We said we had stopped working for PEMEX last year, given this receivable that was starting to build up and accruing a lot of value. So I mean, the receivables were becoming bigger.

So the payments have started in the first quarter of this year. Does my colleague, does Jerome want to add anything?

Well, we know we won't give you any figure on that because it's not necessarily the most important part of our results. Somebody speaking without a microphone says the interpreter. So we cannot translate because we can't hear, unfortunately, personally speaking without a microphone.

[Interpreted] Last year, we received some of the back dated receivables from PEMEX and that enabled us to wipe out the debt that we contracted for the construction of a data center in the U.K. and the cash flow ended up at $107 million. But cash-wise, it was more than $136 million. So we used about $30 million for that to pay back that debt.

And this year, it's more or less the same phenomenon because Sophie mentioned an expansion of our data center in the U.S. And there's quite a lot of CapEx to be committed there this year. And we're going to utilize these incoming monies from PEMEX to pay for that CapEx. And we'll keep our guidance, therefore, with the target of $100 million for the year. So it's more or less the same proportion. Sophie?

[Interpreted] We could add, as I said earlier, that we -- likely, I don't know what will be the PEMEX overdues at the end of the year, but there will be some that will be reimbursed and others that will be reconstituted, so to speak, as we start working with them again. So I think we've done the rounds of the questions. There were indeed very pertinent questions, and I'll give the floor now to Eduardo.

[Interpreted] Thank you, Sophie. Ladies and gentlemen, dear shareholders, before we move on to vote upon the resolutions, we're going to screen a short film that will explain how your tablet voting box operates so as to enable you to cast your vote. Here is the film.

[Presentation]

[Interpreted] I'd like to correct the figure that was given at the start of the meeting, 7,216,212 was the total number of shares and voting rights in the company. In fact, the present and represented shareholders or ones who voted by correspondence is 3,812,561 voting rights. That's 52.89% of the total number of voting rights in Viridien. I just wanted to correct that. That's a quorum and the quorum of 25% required for a combined general meeting is therefore achieved.

And as is the case, we can then vote upon our resolutions. The full text of the resolutions were presented in the convening brochure published on the website of the company. So I will just read the titles of the resolutions before we open the poll each time. Firstly, vote on the resolutions within the remit of the ordinary meeting. These resolutions will be adopted on the basis of a straight majority of the votes of shareholders present and represented. So in respect of the Ordinary General Meeting, we will now screen the title of the first resolution, the approval of the statutory financial statements for financial year ended December 31, 2025. The poll is now open.

[Voting]

[Interpreted] The poll is now closed, and this motion is approved. Second resolution, the allocation of earnings for financial year -- the financial year ended December 31, 2025. Please vote now.

[Voting]

[Interpreted] The poll is now closed. This resolution is also approved. Third resolution, the approval of the consolidated financial statements for the financial year ended December 31, 2025. The poll is now open.

[Voting]

[Interpreted] The poll is now closed. This motion is carried. Fourth resolution, the renewal of the term of Mrs. Sophie Zurquiyah as Director. The poll is now open.

[Voting]

[Interpreted] The poll is now closed. This motion is carried. Fifth resolution, the appointment of Mr. Henning Berg as Director. The poll is open.

[Voting]

[Interpreted] The poll is closed. This resolution is approved. Sixth resolution, the statutory auditor special report on related party agreements, acknowledgment of the absence of any new agreement. The poll is now open on resolution #6.

[Voting]

[Interpreted] The poll is closed. This resolution is carried. Seventh resolution, the approval of the information mentioned on the Part 1 of Article L.22-10-9 of the French Commercial Code. Please vote now.

[Voting]

[Interpreted] The poll is now closed. This resolution is approved. The eighth resolution, approval of the fixed variable and exceptional components constituting the global remuneration and benefits of any kind paid during the past financial year or granted in respect of the same financial year to Mr. Philippe Salle, Chairman of the Board of Directors until April 30, 2025. The poll is now open.

[Voting]

[Interpreted] The poll is closed. This motion is carried. Resolution #9, approval of the fixed variable and exceptional components constituting the global remuneration and benefits of any kind paid for the past financial year or granted in respect of the same financial year to Mrs. Sophie Zurquiyah, Chief Executive Officer until April 30, 2025. The poll is now open.

[Voting]

[Interpreted] The poll is closed. This resolution is approved. 10th resolution, approval of the fixed variable and exceptional components constituting the global remuneration and benefits of any kind paid for the past financial year or granted in respect of the same financial year to Mrs. Sophie Zurquiyah, Chair and Chief Executive Officer from April 30, 2025. The poll is now open.

[Voting]

[Interpreted] This resolution is approved. 11th resolution, approval of the remuneration policy of the directors. The poll is open.

[Voting]

[Interpreted] The poll is now closed, and this resolution stands approved. Resolution #12, approval of the remuneration policy of the Chair and Chief Executive Officer. The poll is now open.

[Voting]

[Interpreted] The poll is closed. This resolution is carried. 13th resolution, approval of the remuneration policy of the Chair of the Board of Directors. The poll is open.

[Voting]

[Interpreted] Resolution is carried. Thank you. 14th resolution, approval of the remuneration policy of the Chief Executive Officer. The poll is now open.

[Voting]

[Interpreted] The poll is now closed. This resolution is approved. 15th resolution, delegation of authority to the Board of Directors to buy back the company's shares in accordance with Article L.22-10-62 of the French Commercial Code. The poll is open.

[Voting]

[Interpreted] The poll is closed. This motion is carried. Now we shall vote on the resolutions that are within the remit of the Extraordinary General Meeting. I'd like to recall that the quorum of 1/4 of the voting rights has been achieved. So we will have 2/3 majority this time of the votes held by the shareholders present and represented. So resolution #16 then, the authorization given to the Board of Directors to grant performance shares to certain employees and/or executive corporate officers of the company and/or of companies related to it. The poll is now open.

[Voting]

[Interpreted] The poll is closed. This resolution is carried. 17th resolution, the overall ceiling for the authorizations of issue in the 16th resolution of this general meeting and in the 17th resolution of the general meeting held on April 30, 2025. The poll is open.

[Voting]

[Interpreted] The poll is closed. This resolution is carried. And the very last resolution, the 18th resolution, powers for formalities. The poll is open. Please, vote now.

[Voting]

[Interpreted] The poll is closed, and this motion is carried. This brings us to the end of the resolution. We'll now give the floor back to Mrs. Zurquiyah to conclude. Thank you. I think before that Philippe has something to add.

[Interpreted] I just wanted to steal the floor for a minute and a few seconds. Just on behalf of the Board of Directors, I just wanted to heartily thank Sophie for the 8 years of management duties that she's put in to help to turn around this company. It was not in great shape in 2018 when she came in, when we both came in. And she's put us back on the rails and very promising indeed. Thank you. A big thank you, Sophie, from the Board for the remarkable work done in the last 8 years. And I would wish you all the best to Henning in taking over. Thank you. Thank you to the Board. So Sophie?

[Interpreted] It's teamwork, of course, because Philippe was at my side for nearly all of the 8 years and many of the Board members here present too sided with me, shouldered with me, and we had to resolve certain issues over the years, but we're very happy with the current status of the company and the progress made. So thank you for attending here today. Thank you for approving all of our resolutions.

Through your votes, you have given us a lot of support, valuable support for the management team, the executive leadership team in implementing the group's transformation strategy. The outcome of the votes, the presentation and the video recording of the general meeting will be available on the website of the company. And to conclude, I'd like to express my gratitude to the Board of Directors, which entrusted me with the corporate management job of the group over the last 8 years.

I'd like to say how proud I am of the long way we've come. What we've done is the fruit of strong leadership, but also thanks to the talent and the commitment, the exceptional commitment of our teams all around the world. I'm happy to pass over to Henning now to pass the job over to Henning. I'm quite confident that he will succeed and he's very enthusiastic, and I'm convinced that his experience and his knowledge of this business will be valuable assets going forward. I'm happy to help him in this transition and glad to be able to pursue my commitment within Viridien as Chairperson of the Board. Thank you, and we will now adjourn our meeting. Thank you.

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

Good day, and thank you for standing by. Welcome to the Viridien First Quarter 2026 Financial Results Conference Call and Webcast. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Alexandre Leroy.

Good morning, and good afternoon, everyone. Thank you for joining us today for Viridien's Q1 2026 results presentation. I'm Alexandre Leroy, Head of Investor Relations and Corporate Finance. We are hosting today's call from Paris, and I'm pleased to be joined by Sophie Zurquiyah, our Chair and CEO; and Jerome Serve, our Group CFO, who will walk you through our performance.

Before we begin, a few housekeeping items. This call is being recorded and is accessible via both phone and online platforms. An audio replay will be available shortly on our website, www.viridiengroup.com. The presentation slides are also available for download from the website.

Please note that today's presentation includes forward-looking statements. Actual results may differ materially from those expressed or implied today. Relevant risk factors are stated in our 2025 Universal Registration Document filed with the French Financial Market Authority, AMF. As usual, we'll conclude with a Q&A session, of course. And finally, a quick reminder that [indiscernible] comment primarily on segment figures, which reflect our internal management reporting. These differ IFRS numbers, also published today, of course, due to IFRS 15 impacts on our Earth Data business accounts.

With that, I now hand over to management, starting with Sophie, who will take you through the key business highlights for the quarter. Sophie, the floor is yours.

Thank you, Alexandre. Good morning. Good afternoon, everyone.

Turning on to Slide 2. As anticipated, the beginning of 2026 presented a softer landscape for Viridien. This reflects a more cautious spending approach among our clients, a trend that was already visible towards the end of last year, as at the time, lower energy prices were anticipated. The conflict in Iran increased geopolitical uncertainty, driving greater volatility in the energy macro outlook and prompting more cautious client decision-making in Q1. It also reinforced the importance of energy security, exposed supply chain vulnerabilities and contributed to a structurally tighter oil and gas environment.

Potentially higher commodity prices and a greater focus on supply diversification and reserve replacement should drive stronger upstream investments in the medium term and particularly in large long-cycle offshore development. For Viridien, these conditions favor ongoing demand for subsurface data, such as our multi-client seismic library as well as our high-end subsurface imaging and advanced geoscience solutions.

We see clients increasingly prioritizing disciplined exploration, appraisal and development investment decisions, especially in geologically complex, geopolitically stable and strategically important prospective basin. The overall impact of the Middle East conflict on Viridien's business in the first quarter was contained. Business continuity across the Middle East was maintained overall. Against this backdrop, Viridien generated segment revenue of $214 million in Q1 2026, with profitability consistent with activity levels.

More importantly, the quarter once again showcased the strength and resilience of Viridien's asset-light differentiated technology business model through strong cash generation. Net cash flow was a positive $26 million compared to negative $20 million in Q1 2025. This improvement was driven by our business model, disciplined approach, strict working capital requirements and management and the increased operational flexibility we developed in recent years.

Viridien also continued its deleveraging efforts, allocating an additional $41 million to bond repayments during the quarter. This brought net debt, excluding IFRS 15, to approximately $700 million at the end of March 2026. Despite ongoing volatility in the macro environment, commercial discussions with clients remain robust. The current slowdown is viewed primarily as a timing shift rather than a change in underlying demand fundamentals.

Demand for high-end seismic services continues to be bolstered by long-term energy security needs, supply diversification initiatives, accelerating field depletion and several years of industry underinvestment. Viridien reiterates its 2026 guidance of approximately $100 million in net cash flow generation with the seasonal profile expected to remain similar to 2025.

Turning to Slide 4. I will move on to quarterly performance by business line, starting with Geoscience. In Q1 2026, we generated $98 million in external revenue. Activity was supported by large projects in Brazil and the U.S. Gulf, while Africa continued to show encouraging momentum, particularly in the West Coast with increased engagement from international oil companies. We maintained a high level of productivity and dedicated significant subsurface imaging resources to our internal EDA multi-client projects alongside external client proprietary work.

Importantly, all our advanced HPC imaging centers remained fully operational throughout the quarter, including those in Oman and Abu Dhabi with no disruptions to execution. Year-on-year, external revenues were lower, mainly reflecting delays in project approvals rather than any market change. Commercial activity has continued to improve since the beginning of the year.

Our backlog is expected to increase materially over the coming months, supported by both confirmed order intake and a significant pipeline of projects already verbally awarded, representing several tens of millions of dollars. Overall, while Q1 reflects a softer start to the year for GEO, we remain confident in the momentum of the business and the trajectory for the remainder of 2026.

Moving on to Slide 5. I would like to briefly address a topic that often comes up in discussions with the financial community and especially in the context of the current AI boom, namely our relationship with NVIDIA. Before that, let me briefly recall a few key elements. Viridien is a high-end technology company specialized in large volumes of seismic data imaging, combining world-class geoscience expertise, hundreds of proprietary algorithms developed over decades and a leading position in specialized high-performance computing.

With around 700 petaflops of computing power, we rank among the top industrial players globally, supporting more than 20 imaging centers worldwide. Our HPC infrastructure is highly customized, optimized for imaging. We continuously review, test and select the best hardware components for our requirements and adapt our middleware and algorithms to the optimal hardware. This requires a technology-agnostic approach across NVIDIA, AMD and Intel using both GPUs and CPUs depending on project requirements.

We have been using NVIDIA GPUs for seismic imaging since 2007, making us an early adopter of GPU-based scientific computing well before the introduction of NVIDIA's ex software ecosystem CUDA. This long-standing relationship made the foundation for a much deeper collaboration. In 2024, we entered into a strategic collaboration with NVIDIA, which goes well beyond a standard supplier relationship. It provides us with early access to next-generation GPU architectures and allows us to co-develop HPC systems and optimize our most advanced imaging algorithms directly with NVIDIA's engineering team.

A key focus is adapting our flagship technologies, including Full Waveform Inversion to achieve maximum performance from the latest AI-optimized GPU architectures, leveraging features such as increased memory bandwidth and mixed precision. In practical terms, this means we can better anticipate hardware evolution, select the components that are optimal for our high-end throughput scientific computing and optimize our software ahead of the market. This enables us to deploy more efficient systems as soon as new technologies become available, while also selecting and securing priority access to critical components.

Overall, these collaborations are a key driver of our competitive edge, enabling us to design and build an optimal HPC for our requirements and customize and optimize our software early in the cycle. This extreme co-design approach with our suppliers enabled us to deliver superior performance and cost efficiency and to scale increasingly complex subsurface imaging workloads.

Now turning to Slide 6 and Earth Data. As expected, the start of the year was slow, which is typical for the multi-client business and in line with expectations. We generated $54 million in revenue in Q1, primarily driven by late sales. During the quarter, we spent limited CapEx on new projects due to their phasing over this year, which resulted in a lower contribution from prefunding.

It is also important to note that Q1 2025 was unusually strong comparison base as sales shifted from the end of 2024 to early 2025. The level of revenue achieved in Q1 2026 is not unusual for a first quarter. More importantly, the business remained cash positive with $15 million cash EBITDA, fully in line with our disciplined approach that puts a strong focus on returns and cash generation. The cash-on-cash was above 2 over the period. Looking ahead, we expect activity to progressively build as we increase investment in new service from Q2 onwards, which will support revenue growth over the coming quarters. As of the end of March 2026, the net book value of our data library stood at $498 million, well diversified across mature regions and high potential emerging basins.

Turning now on to Slide 7, focusing on emerging basins. We constantly strengthen our competitive positioning in high potential areas, leveraging both our technology differentiation and our long-standing relationships with local governments. In Uruguay, we reprocessed around 25,000 square kilometers of legacy data over the past 3 years using our latest imaging technologies, including TLFWI. This significantly enhanced data quality and enabled the identification of new high potential prospects, driving strong interest from international oil companies in the region.

Building on this momentum, we launched a new multi-client acquisition campaign covering around 7,000 square kilometers, further expanding our footprint in what the industry sees as a promising exploration area. Guyana is another key emerging basin following the major discoveries in the Stabroek Block supported by our legacy data. In this country, we have secured exclusive rights for over 25,000 square kilometers of multi-client projects in shallow water. The objective is to assess the potential extension of these prolific systems closer to shore, an area that remains largely underexplored.

We will reprocess over the coming years thousands of square kilometers of existing shallow water data, once again, leveraging our advanced imaging technologies to unlock additional subsurface insights. Overall, these initiatives position us early in the high potential basins of the attractive Atlantic margin and support future multi-client growth over the coming years.

Turning on to Slide 8 and Sensing and Monitoring. In Q1 2026, revenues were $61 million. Both the Land and Marine segments operated in a slow market environment and were further impacted by the current situation in the Middle East. In particular, some new order intake has been delayed as clients in the region focused on other short-term priorities. We expect order intake to progressively recover as visibility improves. Client engagement remains strong. And as conditions normalize for acquisition companies, we anticipate a rebound in activity.

Moving on to Slide 9. Beyond the temporary headwinds affecting oil and gas business at SMO, our new businesses remain well on track and grew to represent around 20% of SMO revenue in Q1. Our strategy is to leverage our core technologies and know-how in adjacent markets in a capital-efficient manner. This example illustrates our infrastructure monitoring capabilities, one of the key pillars of this diversification. The project shown here is the Second Avenue subway in New York, a large-scale and complex urban project spanning 10 city blocks with a total value of over $1.9 billion.

We provide high-end monitoring services, ensuring safe construction while maintaining uninterrupted operations on one of the city's busiest subway lines. We deploy advanced sensing technology combined with real-time analytics and risk mitigation tools, enabling continuous and precise monitoring of the construction. And more broadly, this type of project demonstrates our ability to extend our core technology in new verticals, addressing critical infrastructure needs and opening up scalable high-value markets beyond oil and gas.

With that, I'll now hand over to Jerome, who will walk you through the financial performance.

Thank you very much, Sophie. Good morning and good afternoon, everyone.

Let's move to Slide 11, covering total segment revenue. In Q1 '26, we generated $214 million of segment revenue, reflecting the softer market environment and project timing impact already discussed by Sophie. Data, digital and energy transition, also called DDE, which includes our Geoscience and Earth Data businesses, reported revenues of $153 million, primarily driven by lower EDA activity. In Sensing and Monitoring, revenue totaled $61 million, impacted by ongoing conflict in the Middle East. Worth noting that SMO new businesses continued to show growth, representing 20% of total revenues over Q1.

Turning to Slide 12, covering profitability. Total segment adjusted EBITDA reached $76 million in Q1 '26, reflecting the overall level of activity during the quarter. DDE generated $89 million of EBITDA, representing a margin of 58%. Profitability remained very solid in Geoscience with margin in line with previous quarters. However, at DDA, where the business model carries a very high fall-through, the significant decline in revenues had a substantial impact on profitability.

Sensing & Monitoring reported a negative EBITDA of $7 million. This primarily reflects the lower level of activity and an unfavorable business mix during the quarter. In addition, currency effects remained negative as the U.S. dollar was significantly stronger in Q1 '25 than current levels, resulting in an estimated $6 million adverse impact on SMO profitability. Excluding this FX effect, the business would have been close to breakeven at the EBITDA level. Finally, corporate costs remained well under control at $6 million compared to $8 million in Q1 last year.

Moving to Slide 13, which covers the IFRS figures. The IFRS 15 adjustment had a negative impact of $13 million on Q1 '26 revenue. As we are currently finalizing the imaging phase on several EDA projects, including our flagship Laconia project in the U.S. Gulf, we expect these figures to turn positive over the full year '26.

Looking at the other P&L line, there are only a few points worth highlighting. First one regarding the net cost of financial debt. The positive impact from lower bond principal, thanks to our continued deleveraging efforts was partly offset in Q1 by the higher coupons on our current bond as well as the adverse FX effect on the euro-denominated tranche. On the full year '26, deleveraging is, however, expected to have about $10 million positive impact on interest cost. On other financial items, it's important to remember that Q1 '25 included costs related to the bond refinancing operation, which amounted to several tens of millions of euros.

Now moving to Slide 14, covering net cash flow. Despite the uncertain environment, we generated a solid $26 million of net cash flow in Q1 this year. Looking at the bridge versus Q1 '25 when net cash flow was minus $20 million, the main driver was as follows. On the negative side, the lower EBITDA contribution, as discussed. On the positive side, a strong contribution from change in working capital. This was partly driven by the phasing of EDA payables and partly by the management action we implemented, particularly around receivables collection.

In that respect, we received some additional payments from PEMEX. However, given our remaining exposure, we continue to maintain close and regular dialogue with PEMEX on financial matters alongside our operational relationship. Also on CapEx, we spent less on EDA during the period, although this was partly offset by higher industrial CapEx, notably related to the expansion of our U.S. HPC infrastructure. Finally, bond interest payments were made in Q1 last year due to the early refinancing of the facilities. This year, however, interest payment returned to their normal contractual schedule with half paid in Q2 and the other half in Q4.

Finally, a few words on debt, turning to Slide 15. In line with our commitment, we continued our deleveraging trajectory during the quarter, using the net cash flow generated to further reduce debt. In Q1, we repaid $41 million of the remaining outstanding nominal amount on the USD-denominated tranche. To do so, we exercised a 10% repayment option at 103 as provided for in our bond documentation. Indeed, the second 12-month period under this clause we started on March '25 -- '26, sorry.

As shown on the slide, we have now repaid more than $300 million of gross debt over the past couple of years, representing more than 25% of the debt outstanding 24 months ago and we remain fully committed to continuing along this path. This progressive improvement of our financial profile is both clear and tangible, and this was recognized by Standard & Poor's, which upgraded our corporate rating to B at the beginning of April, while our bonds are now rated B+. Financial markets have also acknowledged the significant progress achieved so far with both our USD and Eurobond tranches trading well above par, implying yields to maturity nearly 200 basis points below their nominal coupon.

With that, I will hand back to Sophie for the outlook.

Thank you, Jerome. I'm now on Slide 17. In conclusion, Q1 2026 was a soft start to the year, as expected, driven primarily by project timing in a more cautious spending environment, which was amplified by the conflict in the Middle East and the consequent market uncertainty. Importantly, we again demonstrated the resilience of our asset-light and differentiated technology strategy, which delivered strong cash generation and enabled us to continue tangible progress on deleveraging.

Commercial engagement is strong, and we expect momentum to progressively accelerate from Q2 onwards. In Geoscience, multiple large projects are in advanced stages, and we anticipate a meaningful build in backlog over the coming months. In the Middle East, we are managing the situation actively and remain fully operational. While volatility may create short-term delays, we continue to view this as a timing effect rather than a change in the underlying demand environment.

Looking further out, our markets are supported by clear structural tailwinds, energy security, supply diversification and reserve replacement against the backdrop of accelerating field depletion after years of underinvestment. This continues to underpin demand for high-end subsurface data, imaging and advanced geoscience technology and solutions. We are highly confident in Viridien's positioning.

Our differentiated technologies and high-performance computing capability help clients make faster and better exploration and development decisions, improve recovery and reduce operational risk and especially in complex geology. As a result, we are increasingly seen as a trusted long-term partner for critical subsurface programs. Accordingly, in these market conditions, we reiterate our 2026 net cash flow guidance of $100 million with a seasonal profile that is expected to remain similar to 2025. We also remain firmly focused on continued deleveraging.

Before we move on to questions, I'd like to personally thank you for your interest and support over the past 8 years. This will be my final earnings call as a CEO ahead of my transition to Chair and hand over to Henning as CEO in June. It has been a privilege to engage with you over this period as we rebuild the company from bankruptcy, launched our asset-light and differentiated technology strategy, navigated COVID and the energy trilemma and repositioned Viridien to where it is today, generating around $100 million of net cash flow annually and holding a strong resilient position in the industry. I'm proud of what the Viridien teams have accomplished and particularly confident as we enter this next chapter. Henning's experience, operational know-how and proven leadership, combined with Viridien's solid foundation, position the company well for continued success and long-term growth.

So thank you again for your support, and we're happy to take your questions now.

[Operator Instructions] And now we're going to take our question, and it comes from the line of Mick Pickup from Barclays.

Sophie, it doesn't feel like 8 years, I'm sure. A couple of questions, if I may. Obviously, a light quarter for investments in the library. Can you just talk about the phasing of that through the year? And you talked about low prefunding on that. So what's the plans of that? And then secondly, it'd be remiss on one of these calls this quarter to not ask about the Middle East. If the shut-ins in the Middle East, does that mean that there's likely to be more geophysical needs if those reservoirs are shut-in for extended periods?

Mick, excuse me, I didn't hear your first question. There was low prefunding on which project?

No. So you said there was no prefunding in the quarter, and obviously, low levels of investments in the quarter. So phasing of investments for the rest of the year and how prefunding is shaping up?

Okay. Yes, thanks. Absolutely. We knew as we came into the year that we would have lower investment because we just didn't have a large ongoing survey in Q1. But we've already started 2 surveys that are ongoing in Q2 in Uruguay and Norway. So I do expect to ramp up in the next quarters. So we'll be achieving sort of usual investment, I expect. Again, pending permits and countries that we don't always master, but we definitely have a good strong pipeline of projects.

And Mick, on the prefunding level of those investments, as you know, we do not communicate anymore, but expect something in line with the previous year. As you know, we are very selective in the projects we get into and require a pretty high level of prefunding.

And there's another question on the Middle East. The -- I think Middle East is an area that does require a high intensity of subsurface and geoscience. And we've been putting a particular effort in providing better solutions and more accuracy to the images that are generating and is starting to give results and our revenue levels in the region has been increasing. And will that be increasing further? I think so. I would think that not necessarily just the shut-ins, but in general, the willingness to produce and produce more will be there.

And the next question comes the line of Baptiste Lebacq from ODDO BHF.

First of all, congrats, Sophie, for all the jobs you have done during this period. 2 questions from my side. The first one is regarding Middle East and SMO exposure. Can you give us some indication regarding, let's say, sales or backlog in the region? And is there for the end of the year some deliveries or major deliveries expected in the region?

And the second one is also still in the region regarding receivables. Do you have some receivables pending in the region? And do you see some clients -- is it complicated today to negotiate with clients regarding receivables in Middle East?

Yes. Thank you for your question, Baptiste. The -- I would say, SMO has exposure to Middle East, but it really does depend on those mega crews. So the years we have mega crews, it could be quite high. But in generally, on a recurring basis, let's call it, 15%-ish, 1-5-ish-percent of SMO revenue is sort of subject to Middle East. The Middle East is a pretty large region. So there are areas of Middle East that aren't touched. But there is a risk. I think it's more of a timing that you'd hit the sort of the year-end cut-off and then some of the sales could be shifting from year-end into next year. But at this point in time, we have no visibility on that.

And regarding the receivables, the overdues, there is no issue we are facing with our clients in the region. We are paid on time and -- I mean doesn't change at all their payment schedule.

[Operator Instructions] And the question comes from the line of Guillaume Delaby from Bernstein.

Yes. Congrats, Sophie, for all the good work, knowing that when you became CEO, I think in 2017, it was, I think, a very, very tough environment, I would say, on all fronts. 2 questions and some, I would say, some kind of small not so strategic questions. So the first one -- and in fact, they are essentially for Jerome, if I may. The first one is, can we say that all the receivable, what I would call the legacy PEMEX receivable, i.e., receivable from PEMEX from 2024, Q1 2025. My first question is, have they all been sorted out or are there still more to go?

So as mentioned during the presentation, we still have -- we have received some. So let's start from the beginning. All our 2025 receivable or overdues have been paid last year. That's how we achieved this 136 net cash flow in 2025. So we were left with 2024 overdues. We did receive some payments in this quarter, but we still have a material exposure with PEMEX that we intend to cash in, in the coming months, I mean, as expected and as part of the guidance. And we believe the risk is much lower than previous months. We see PEMEX paying more suppliers, including us. And their financial state is improving as well.

Okay. My second question is regarding Slide #4. We can see a strong increase in the production per employee. So my question is, should we assume that this $388,000 per employee, I would say, is the new norm? I know that you reduced your headcount by circa 9% in 2025. So should we expect this number nearly $400,000 to be some kind of the new normal for the next, I would say, for the coming quarters?

Yes, I'll take that question actually, Guillaume. There isn't like a new norm or a cap to that number. I do think that this is -- the trend that we're seeing is a general trend across industries towards digitalization and automation and moving sort of people to machine. And I don't think necessarily there is a cap to it. If you go back to the history, when we started to present that number, we've actually been consistently increasing it. Now I'm not saying sky is the limit, but I think there's room to continue improving that number.

And the history -- if you look at the historical numbers, I mean, it's been increasing quarter-after-quarter. So no reason to believe if technology keeps improving on the HPC and AI front that we will not continue to do so.

And the next question comes from the line of Prithvi Vetsa from Bank of America.

Can I ask on the guidance? Like does your $100 million net cash guidance includes the receivables from PEMEX? And on the deleveraging front, do you intend to carry out further opportunistic bond tenders?

Thank you for your question. Indeed, when we put this guidance to the market in February, we clearly said that we counted on chasing in our PEMEX overdue, so yes. And yes, we will continue the deleveraging. It's unlikely we will do a tender in the market, but we still have the 10% clause we can exercise on our euro tranche. So far, we have only exercised 10% on the USD tranche. So the $41 million we reimbursed in March. So the intention is to use this clause later in the year on the euro tranche.

Dear speakers, there are no further audio questions at this moment. And now I would like to hand over to Alexandre Leroy for any written questions.

Sure. Thank you very much. We have a few questions from Brage from Clarksons. Thank you for your question, Brage, and good morning. I'm going to read exactly what Brage wrote. It looks like the figures were broadly affected by a slow start to the year, partly on the back of the Middle East situation. We are hearing more about energy security coming back on the agenda and the need for new replacement barrels in the supply stack. So here are my questions. One, could you give a bit more color on how you are seeing sentiment evolve? How do you see near-term visibility and behavior from the E&P system? Two, do you expect this to start pointing the market towards a conventional frontier exploration? And do you expect Viridien to position itself in this environment given our strong OBN capacity?

Yes. Thank you for the question. So in general, it's clear that our clients are gearing up towards heavier, more exploration, recognizing that the short-cycle exploration, which has been going on through the last many years, which is really tieback and leveraging existing infrastructure is not going to be enough to meet the energy demand or the oil and gas demand in the future. So that recognition that there is a need to find the next Guyana through frontier exploration is there. It is not quite visible yet because it is happening through deals with governments. So there's a lot of MOUs being signed. So it's a bit of a quiet effort that's happening, but that definitely points towards upcoming activity in frontier exploration.

The second element is that you would notice that a lot of these exploration groups inside companies are being reorganized and they're sort of, again, being set-up centralized for more activity moving forward with new heads of exploration, teams. So it's sort of a fresh restart towards exploration. Now how do we position there? We are positioned. So it's the frontier basin, it's not frontier, frontier like there isn't anything data. It's sort of proven basin. If you look at the case of Uruguay, the case of Guyana, Brazil. So we kind of know -- the industry knows what's out there. It's just a matter of qualifying it and finding it.

Some of it will be with streamers, some of it would be with OBN. But in any case, we intend to play. We'll play both through the multi-client model and we would -- that's why we wanted to show you our positioning in Uruguay and Guyana. We are also positioned in Egypt, which is the hotspot in the East Med right now. But also, we will play in this sort of long-cycle offshore exploration through our Geoscience, because the clients want to reduce their risks and the exploration risk and they're going into complex subsurface regions, and therefore, that need for the best image is there. So we think the current environment will actually be quite favorable because we can provide the images that will derisk client investment decisions in complex areas.

Okay. Thank you, Sophie. I hope this answered your question, Brage. If you have more color -- need more color, don't hesitate to follow-up through Internet. We have an extra question from Steve out there. Thank you, Steve, for your question. And he's asking, first of all, if we can clarify the range of CapEx for this year. So you should talk about EDA CapEx or the whole CapEx there [indiscernible]

I mean, on the EDA side and on the range because we don't communicate CapEx anymore, but you know that we spend between $150 million and $200 million per year. It can go sometimes above that number like when we did Laconia back in 2024. But as already discussed, it will be more back-end loaded throughout the H2.

And the second question about Steve, which is discussing a question about the net flow rate, things like that, considering where we stand today and the level of CapEx we want to spend. If you could comment on this?

I mean, as we said, we reiterate the guidance of $100 million. I think the question is more on the phasing. Indeed, there will be, like last year, back-end loaded net cash flow generation in H2. A similar answer as for last year, we have some natural phasing like the bonus that were paid in H1 and not paid in H2, $20 million, $25 million. As mentioned, benefit fully of the savings from the interest costs. We only show $1 million in Q1, but for the full year, it's more in the range of $10 million. And it will be mainly in this -- additional savings will be mainly in H2.

And as we said during the guidance, the activity will be more sustained in H2, translating obviously in additional cash generation both through the profitability and the working capital release. And the last one is the cash-in of PEMEX. I don't know if it will happen in Q2 or in H2, but we know that we have again a material overview to collect and we will collect it before Europe. So that makes us confident that we can reach the 100 million net cash flow guidance for 2026.

Thank you, Jerome. No more questions through Internet. Operator, on your end?

Dear speakers, there are no further audio questions. Please proceed.

Okay. So this ends the call. Sophie, can you take the floor?

Okay. Thank you very much. So thank you again for your attention and support over the years. It's been a pleasure to interact with you, and I'm very confident that next quarters will...

A couple of fun thoughts stepped out the last moment. Sophie, do you have any advice for the next CEO?

We've spent the last 2 months and we've got 1 more month to go over both laps, and it's been very enriching and very fruitful. So I guess the direction is set in terms of deleveraging, and so that will definitely continue. So for me, it's -- we need to continue expanding our market position, we need to continue expanding our differentiation and our technical differentiation and continue on our path forward. I think we're starting from a strong position, but I think it can always improve, and I look forward to seeing that.

You have actually an extra one from Kevin from Kepler. If we can come back on the late sales in Q1 and the future quarters.

Thank you, Kevin, and good to hear from you. I think the late sales, as you know, it's hard to predict, but we always look at the general macro environment. So I would say in a landscape where exploration and production CapEx from our client offshore deepwater is bound to increase this year, we should see a fairly solid after sales. But keep in mind that opposite to last year where we had transfer fee and significant transfer fee, we don't have this year. So in a way, we -- I would be planning for a slight increase in aftersales collecting from this transfer fee. So generally, a supportive environment, which we don't quite see as of today. And as I was mentioning earlier, there's a lot of deal making that's happening in the back end that will become more visible towards the second part of the year and into next year. But that would be sort of my first -- how I would plan for the aftersales.

Kevin, thank you for your other question. And Kevin asked if we can come back on the hedging strategy we can implement at SMO to try to mitigate the negative ForEx effect.

So basically, there is little we can do, and I will explain what we do to mitigate this effect. The cost base is in euro and we sell in dollars. Unfortunately, our customers are not willing to pay for any ForEx impact of our cost base. What we are pushing is obviously for when there is inflation or raw material increase. This one, it's -- I'm not saying it's easy, but we're getting there and doing the pass-through. But for FX, very difficult to get it into the contract.

What we do, the only thing we do on the hedging side is when we have an order and we can lock the margin, meaning we can -- between the order and the delivery, which sometimes can take months. And so we basically lock the invoice we are supposed to issue at the time of the delivery. So it's what we call receivable hedging and that's what we do. But for the rest, unfortunately, there is nothing we can do.

I hope, Kevin, this answered your question. No more question through Internet. I think no more questions on the phone. I think Sophie...

I think now we can close. Well, thank you very much for your attention over the years and for the quality of the interactions and the questions, and I look forward to continuing to read your reports. So thank you very much.

Thank you.

Thank you.

This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.

Good day, and thank you for standing by. Welcome to the Viridien Full Year 2025 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Alexandre Leroy. Please go ahead.

Thank you. Good morning, and good afternoon, everyone. Thank you for joining us today for Viridien's full year 2025 results presentation. I'm Alexandre Leroy, Head of Investor Relations and Corporate Finance.

We are hosting today's call from Paris, and I'm pleased to be joined by Sophie Zurquiyah, our Chair and CEO; and Jerome Serve, our Group CFO, who will walk you through our performance.

Before we begin, a few housekeeping items. This call is being recorded and is accessible via both phone and online platforms. An audio replay will be available shortly on our website, www.viridiengroup.com. The presentation slides are also available for download from the website.

Please note that today's presentation includes forward-looking statements. Actual results may differ materially from those expressed or implied today. Relevant risk factors are detailed in our 2024 universal registration document filed with the French financial market authority, AMF. As usual, we'll conclude with a Q&A session.

And finally, a quick reminder that Viridien comments primarily on segment figures, which reflect our internal management reporting did differ from IFRS numbers also published today due to IFRS 16 impact on our Earth Data business accounting.

With that, I'll now hand over to management, starting with Sophie, who will take you through the key business highlights for the quarter. Sophie, the floor is yours.

Thank you very much, Alexandre. Good morning, and good afternoon, ladies and gentlemen. I'm now on Slide 2. 2025 has been a very strong year. I would even say it has been pivotal in advancing the asset-light technology differentiated strategy that we initiated in 2018 as we are no longer exposed to vessel capacity, either directly or indirectly.

2025 was also a key year in our financial transformation. We successfully refinanced our bonds, extending their maturity to 2030 and generated a significant amount of cash, which we fully allocated to deleveraging the company.

And more concretely, we generated revenues of nearly $1.2 billion, up 4% year-on-year. Performance was very strong across our data, digital and energy transition businesses with overall top line growth of 8%.

Geoscience once again delivered strong performance, leveraging our unique business model and clear competitive advantages in subsurface imaging. Earth Data also performed well, supported by sustained customer demand for our advanced data sets in mature and strategic frontier basins as well as by recent industry consolidation.

Beyond revenue growth, profitability improved further with segment adjusted EBITDA exceeding $550 million. Net income increased by 40% year-on-year. We also delivered strong cash generation. Net cash flow reached $107 million, exceeding our full year 2025 guidance, driven by our first year of operations following the full implementation of our asset-light strategy, solid operating performance and disciplined cash management.

All the net cash flow generated was allocated in deleveraging as per our commitment, combined with the refinancing completed last March, during which we reduced the principal amount of our bonds. This enabled us to lower gross debt by $230 million year-on-year at constant exchange rates.

Moving on to quarterly performance by business line. I'm on Slide 4, starting with Geoscience. Full year 2025 was another solid year of revenue growth, combined with continued productivity gains. Geoscience external revenues increased by 10%, reaching nearly $450 million.

Performance was once again driven by our 3 core basins of U.S. Gulf, Brazil and Norway, where we delivered a significant volume of OPN imaging projects for leading IOCs and NOCs. The Middle East also showed solid momentum, particularly in Abu Dhabi and Saudi Arabia.

Productivity per employee continued to improve, up 13% to $387,000 per employee and this reflects our continuous improvement initiatives and our increasing use of computing and AI to produce high-quality data-driven outputs while continuing to enhance efficiency. Backlog at year-end 2025 stood at $256 million, down from last year, while still providing good visibility and confidence as we move into 2026.

Moving on to Slide 5. You can see how our unique differentiated business model enabled us to reinforce our competitive edge and consolidate our global leadership in subsurface imaging. Subsurface imaging is the highest value-add activity across the entire seismic value chain.

It is not a commodity service business. It requires elite talent, leading innovation and technological scale, 3 structural barriers to entry. We support these with excellence in our services.

Our winning business model rests on 2 core pillars. First, people. We recruit and retain the very best experts worldwide and foster a culture of excellence. This is critical to addressing the most complex subsurface challenges that our clients bring to us.

To give you an example, we enable clients to make exploration plans in areas that they historically would have discarded or deemed too risky, thus potentially improving their reserves.

In 2025 alone, Geoscience received more than 8,000 postgraduate applications from leading universities and engineering schools worldwide. As every year, fewer than 1% were selected to join our team.

This level of selectivity ensures that we work with the most talented, creative and technically advanced experts in our field. We also remain strong and -- we also maintained strong academic and scientific credibility.

In 2025, 77 peer-reviewed technical papers were published by our team. And among them, we received the 2025 EAG Award for Best Paper in First Break, one of the industry-leading technical publications. The award-winning paper highlights how our high-frequency full-waveform imaging significantly enhances imaging and reservoir characterization in complex environments such as the Barents.

The second pillar of our model is our deep expertise in algorithmics and high-performance computing. From the selection and optimization of the algorithm, software and hardware infrastructure to the execution across tens of thousands of processing units 24/7, subsurface imaging requires highly customized, exceptional and reliable computing capabilities.

At year-end 2025, our proprietary infrastructure approached 700 petaflops of computing power. Excluding hyperscalers, which operate in a different category, this places us among the top 5 industrial players worldwide in terms of computing capacity.

To give you a sense of scale, our computing power exceeds that of many national weather forecasting agencies or publicly funded nuclear research institute. Seismic data processing is one of the most demanding computing activities with data sets reaching several hundreds of terabytes and growing further with the development of OBN technology.

And to continue addressing increasingly complex reservoir challenges, we invest continuously in our infrastructure. In that context, we have just approved the expansion of our U.S. HPC center with a phased investment plan over the next 3 years. This will ensure we remain at the forefront of the industry and continue to consolidate our leading global market position.

And finally, I would like to reiterate that high-end subsurface imaging provides value across the exploration, the development and production value chain. In 2025, 2/3 of Geoscience revenues were generated from development and production-related work.

This makes the Geoscience business structurally less sensitive to oil price volatility than more exploration-driven segments. And this performance is supported by a well-diversified client base, including national oil companies, majors and independents worldwide.

Now turning to Slide 6 for the Earth Data performance review. In full year 2025, Earth Data delivered solid performance with revenues up 6% year-on-year. This growth was driven by 2 main factors: first, sustained industry demand for high-quality data, both in mature basins and in high potential frontier areas where we are strategically positioned. And second, transfer fees generated by recent industry consolidation.

Excluding transfer fees, which are normal and recurring component of the multiclient business model, aftersales remained similar to the previous year. As of the end of December 2025, the net book value of our Earth Data library stood at $494 million.

I'm now on Slide 7 to discuss our Earth Data strategy and performance in more detail. While our primary focus remains on our core and most active offshore region, Norway, Brazil and the U.S. Gulf, we continue to selectively assess attractive frontier opportunities. Not that we're no longer exposed to vessel ownership, which when underutilized, can significantly weigh on cash flow and profitability and create incentives to pursue suboptimal projects, we approach the multiclient business with a very disciplined portfolio framework.

Our strategy combines highly profitable legacy data reprocessing projects, leveraging our unique subsurface imaging capabilities with continued investment to strengthen our competitive positions in our 3 core offshore basins, Norway, the U.S. Gulf and Brazil, while also making selective strategic moves into highly prospective frontier areas.

In 2025, given the scale of the Laconia and Utsira OBN projects, approximately 80% of our multiclient CapEx was allocated to reinforcing our library in our core basins. As a rule of thumb, in general, out of the roughly $200 million of multiclient CapEx we invest annually on average, reprocessing typically represents $30 million to $40 million or 15% to 20%.

Emerging basins account for approximately 10% to 15%, meaning that around 2/3 of our yearly investments are normally directed towards our 3 core basins. This disciplined allocation strategy once again delivered strong results in 2025 with cash EBITDA reaching $178 million and a revenue to CapEx ratio of 2.4x.

Now moving on to Slide 8, covering Sensing and Monitoring performance. Full year 2025 Sensing and Monitoring revenues decreased slightly, posting 5%, negative 5% year-on-year, landing at $315 million.

Some deliveries in our land business that were expected in Q4 were postponed to 2026. Overall, the picture for the year remains consistent with what we have previously indicated.

The market dynamic in the Marine segment was more subdued, but this was partly offset by the strength in our installed base in the land segment. In land, our technologies continue to lead the market, both through our established product lines such as the [ 528 ], WiNG and through our new solutions like Accel.

Now turning on to Slide 9 for further insight into our Sensing and Monitoring strategy. Sercel was founded in 1963 and is the incumbent leader in seismic equipment, software and solutions design.

The core recurring business of SMO is resilient through the cycle, supported by our streamlining efforts together with a large product portfolio, the largest installed base worldwide and sustained R&D efforts that allow us to regularly launch new innovative products and solutions.

Our services share of our core revenue represented around 15% and is growing and our global market share is around 50%. The legacy activity represents 80% of total SMO revenue. So beyond this, reaching 20% of SMO revenue, we're actively pursuing a diversification strategy, leveraging our technological expertise across adjacent markets.

Infrastructure monitoring includes surveillance, advisory services and structural testing. This business has experienced good momentum for several years now with revenues that grew by a further 20% in 2025. We are also expanding in defense markets, where demand for our specialized cables and subsea monitoring solutions are growing. Long-term framework agreements are currently under discussion with strategic partners.

Another growth avenue comes from adapting our marine operational management platform initially developed for seismic applications to new cases, use cases such as operational efficiency and safety enhancement for ports and offshore oilfield infrastructure.

In 2025, we also completed the restructuring plan launched 2 years ago at SMO. Our operations have been streamlined, allowing us to unlock additional value going forward.

And our efforts increased business resilience through the cycle by reducing SMO's cost base by $30 million, bringing EBIT and cash breakeven down to levels close to the lowest revenue environment experienced over the past decade, around $280 million, while also releasing $60 million of working capital.

With that, I'll now hand over to Jerome, who will talk you through -- walk you through the financial performance review.

Thank you, Sophie. Good morning, and good afternoon, everyone. Let's move to Slide 11, covering total segment revenue.

In 2025, we generated $1.17 billion in segment revenue, up 4% year-on-year. This performance was driven by data, digital and energy transition, also called DDE segment, which includes our Geoscience and Earth Data businesses.

DDE revenues reached $850 million, up 8% versus 2024. Geoscience grew much faster than the market, posting a plus 10% year-on-year, while Earth Data was up 6% despite lower CapEx and prefunding contribution.

In Sensing and Monitoring, revenue totaled $315 million, down 5% year-on-year. The Land segment performed well, although some [ QCA ] deliveries were postponed to 2026. At the same time, new business case revenues within SMO continued to grow, supported in particular by strong momentum in infrastructure monitoring, plus 20% year-on-year.

Turning to Slide 12, covering profitability. Total segment adjusted EBITDA reached $551 million in 2025, up 21% year-on-year, leading to a margin of 47%. Once again, this performance was driven by DDE, which delivered $549 million of EBITDA, up 20% versus 2024. The margin reached nearly 65%, representing a 640 basis point improvement year-on-year.

This mainly comes from 3 factors: first, higher revenue levels in both Geoscience and Earth Data, which benefit from strong margin conversion; secondly, we delivered continued productivity gains in Geoscience with an increasing shift from people time to computing time, which carries a lower cost base; and third, the absence of vessel penalties following the final settlement with Shearwater completed in January 2025.

Sensing and Monitoring generated $32 million of EBITDA, slightly down versus '24. This mainly reflects the somewhat lower level of activity as well as a strongly adverse currency effect driven by the U.S. dollar depreciation, while SMO cost base is predominantly in Europe, this negative FX impact being approximately $7 million year-on-year.

Cost reduction measures implemented over the past 24 months to lower SMO breakeven point help limit this impact on profitability.

In 2025, we benefited from a cost base roughly $20 million lower than at the end of '23. Starting this year, we expect to capture the full annualized savings, which will amount to around $30 million. This positions SMO well for improved profitability as the activity recovers.

Finally, corporate costs decreased significantly from $38 million in 2024 to $29 million in '25, reflecting continued cost discipline across the group.

Moving to Slide 13, covering the IFRS figures. The IFRS 15 adjustment was significantly negative this year, totaling minus $94 million at both revenue and EBITDA level for the year 2025.

The comparison base is particularly adverse as 2024 benefited from a positive contribution of $95 million. As you know, this adjustment relates to our ongoing earth data survey, currently mainly in the U.S. Gulf and Norway, which are expected to be completed this year.

Despite the significant negative adjustments, IFRS net income increased by 40% year-on-year to $71 million, highlighting the company improvement on not only cash-wise, but also down to the bottom line. Looking at the other P&L line, the net cost of financial debt increased mainly due to lower interest income as we reduced excess cash balances.

Note that the overall gross cost of debt remained broadly stable as while the bond refinancing resulted in slightly higher interest rates, this was offset by a lower principal amount. Other financial losses primarily reflect the noncapitalized portion of the bond refinancing costs as well as some negative foreign exchange effects.

The absence -- sorry, moving to Slide 14 and how this translates into the net cash flows. In 2025, we generated $107 million of net cash flow. From an operating perspective, this is closer to $136 million as the reported figure includes the early repayment for $29 million of the asset-backed facility put in place in 2022 to finance our U.K. HPC data center.

At inception, this facility was included in the net cash flow. So it's consistent from an accounting standpoint that the repayment is treated the same way, although this blurs a bit the picture.

In any case, whether you take $107 million or $136 million, it is well above our 2025 guidance of $100 million. Looking at the bridge versus 2024 when we generated $56 million, the main positive driver of this performance were a significantly stronger EBITDA contribution, up $134 million year-on-year, lower CapEx mainly in Earth Data, contributing an additional $69 million of cash.

These 3 positives were partly offset by 2 factors: $110 million negative variation of the change in working capital, primarily related to lower payables on ongoing Earth Data projects as well as the still ongoing PEMEX receivable.

Note that our PEMEX exposure was reduced to below $50 million at year-end 2025. The other line at $41 million, negative $41 million reflects mainly the net of the 3 items.

First, the absence of the one-off $38 million cash inflow recorded in '24 from the settlement of a long-standing litigation in India. Secondly, the savings in '25 from the end of our vessel commitments with Shearwater. And thirdly, the repayment of the asset-backed facility mentioned earlier.

Finally, a few words on debt. Turning to Slide 15. For the past 2 years, we have been actively managing our balance sheet to reduce refinancing costs and strengthen the group overall risk profile. In 2025, at constant FX versus year-end '24, we reduced gross debt by $230 million, bringing it down to close to $850 million.

Over the year, we took 3 key actions. First, we refinanced our bonds in March, extending maturity to 2030 and using part of our available cash to refinance a lower principal amount.

Second, we began repaying the bonds in line with our commitments using the cash generating during the year. We did fully exercise the 10% annual optional redemption clause embedded in our bond documentation at 103.

And thus, we redeemed a total of USD 97 million of USD equivalent principal through 2 transactions in mid-October and mid-December.

Finally, we repaid the asset-backed facility mentioned earlier at year-end. This action will reduce further interest expenses and free up additional cash to continue our deleveraging profit.

One of the clearest indicator of this progress is certainly our net leverage ratio. It has declined from 2.1x at year-end 2023 to 1.6x today and we definitely intend to improve it further.

With that, I will hand back to Sophie for the outlook.

Thank you, Jerome, and I'm now on Slide 17. In conclusion, 2025 was a strong year for Viridien, marked by significant operational, technological and financial progress. We're now fully asset-light, focused on differentiated technology offerings and have complete flexibility to decide our multiclient investments based on their pure merits.

We exceeded our net cash flow generation guidance for 2025. Now for 2026, we're again targeting the generation of $100 million of net cash flow. This includes the financing of Phase 1 of the expansion of our U.S. HPC data center as well as normalization of working cap, including PEMEX.

Please note that cash generation seasonality is expected to be similar to that of 2025. This $100 million target assumes a business environment that is overall broadly comparable to 2025.

As you know, and as many of our OFS peers have already indicated, energy price volatility may lead in the short term to some industry caution with softer activity expected in the first half of 2026 and a recovery anticipated in the second half for an overall steady performance of the full year.

Looking out over the medium and long term, the structural fundamentals of our market are supportive. Accelerating field depletion and increasing reserve replacement pressures are driving operators to focus more intensively on long-term resource security.

And this combined with our asset-light model focused on high-end technologically differentiated solutions and our disciplined multiclient strategy underpins a continued robust outlook for Viridien.

Thank you very much, and I'll now open the floor to questions.

[Operator Instructions] We will take our first question, and the question comes from Guillaume Delaby from Bernstein.

A quick question regarding -- maybe I missed it, but have you communicated any CapEx figures for 2026? What could be your multiclient CapEx? And what could be the CapEx associated with your infrastructure development in North America?

I will take this one. So you know that in 2025, so last year, we spent about $265 million for the library. In 2024, sorry, on the back of this Laconia project in the Gulf of America, it was $250 million. I mean, I would say both numbers more or less represent the range of what we intend to spend in a given year. So take a number in the middle and I guess that's more or less a normalized CapEx we envisage to spend in our library.

Regarding the infrastructure, so the expansion of our data center in the U.S., the current estimate is around $30 million, $35 million.

How much, sorry?

$30 million to $35 million in '26. Regarding the -- just one last comment on the library CapEx. What matters to us, you know that, Guillaume, is really -- it's not the overall amount that we spend, but the quality of the project that we judge on 2 metrics, the prefunding, which require high prefunding as well as a high -- what we call cash on cash. So for $1 invested, we usually require $1.8 of sales generated over the life of the survey. So we really focus on the -- what we call the cash EBITDA metric that we started to introduce last year.

We will take our next question and the question comes from the line of Jean-Luc Romain from CIC.

I have 2 very different questions. One relates to what you were just mentioning, Sophie, the pressure on reserves of majors. Should we assume that companies like BP and Shell going as low as 7 years reserve life is a conscious choice for them compared to Total or Exxon? Or do they really have to increase their investment to renew their reserve? Or do we feel we have a sufficient [indiscernible] resource base to mature and increase their reserve life? That's the first question.

The second question is I think there was a merger between LLOG and Harbour recently. Does that translate into transfer of rights or transfer fees or revenues to transfer the licenses?

And the last question was out of the $50 million due to PEMEX, how much is overdue and how much is kind of normal [indiscernible]?

Okay. [Foreign Language] Thank you for those questions, Jean-Luc. I'll take the first 2, and I'll leave the third one to Jerome. I think the pressure on reserves is there. And as you pointed out, 7 years of reserves is becoming on the low side.

And why is it that we are where we are? I think it's been a lack of activity in exploration over the last decade. So our clients, in general, they've been working through portfolio of opportunities that were acquired in the busy years, call it, '12, '13, '14, and that has carried them through now.

But clearly, they're faced with having to replenish their portfolio of opportunity with better, call it, quality of opportunities with lower breakeven oil price, perhaps different jurisdictions.

So we're heading into a time when those companies that are low on the reserve perspective will be having to invest more in exploration position. And that is seen through the amount of acreage. So for example, in January, it was 43,000 square kilometers of acreage that was taken by companies in the oil and gas industry.

The second question is a good one. We always watch as well the M&A and the consolidation in our industry. So this one refers in the Gulf of America with Harbour acquiring a company called LLOG and LLOG is one of our clients and there will be transfer fees associated with that, but there -- I want to manage your expectation, they're not going to go on the high side.

They're going to be moderate and I would call them just as part of the normal expected transfer fee that would see -- that we would see from one year to the another. So yes, but very moderate.

The third question on PEMEX, I will leave to Jerome.

Yes. [Foreign Language] The full $50 million or close to $50 million is overdue. So we still have good confidence that we will collect this money this year.

By the way, it's part of the guidance, where also we expect to restart working with PEMEX and therefore, create some receivables. So overall, it's not the full $50 million that we are putting in the guidance. But that's where we are with PEMEX.

Okay. Part of the $50 million guidance then?

Correct.

Your next question comes from the line of Baptiste Lebacq from ODDO BHF.

Just one question on my side. Listening to conference call of IOCs for 2025, exploration is not anymore a swear word or something which is not quite common to speak about. Do you see them coming back actively?

And in today's environment, what are the most, let's say, active people in terms of negotiation for new businesses? Is it NOCs or IOCs at this stage?

Okay. Yes. Thank you for that question. It's -- I absolutely agree with you. Exploration is now something -- a word that we can pronounce. And if you look at all the quarterly announcement of IOCs and publicly traded companies, that world is coming to the forefront and they talk about exploration.

Actually, many, many more start to talk even about seismic and how the kind of progress that we're doing in imaging is helping them derisk their activities and actually shorten the cycle time between exploring and producing, which is an important activity for them.

So who are those clients that are the most active? Definitely, the IOCs have picked back up. Those are the first ones that shut down activity during the COVID. So they are the big times going back at exploration activity, particularly the North American ones.

The ones that are a little -- still a little cautious are those independents that are maybe more cash constrained, that have high debt level. So we see a bit less, although they're interested in it, but a bit less active.

And national oil companies is quite active in South America, the case of Petrobras quite public that they're actively looking for new -- they have to make big fines if they want to be able to sustain their ambition for production. But the case of actually PEMEX is another one that needs to really ramp up production.

The Middle East is quite active. We see activity from national oil companies in Asia as well. So pretty much, I would say, if I was going to summarize IOCs and NOCs, independents a little bit more on the fence just because of their financial situation.

Your next question comes from the line of Mick Pickup from Barclays.

A couple of questions, if I may. The first one, apologies if I say something that's a bit stupid. But can you just talk about the role of AI in your business? Because obviously, if we look at the wider market, we've seen many industries hit over the last couple of weeks as they suddenly get disintermediated by AI.

And I keep getting the question, won't the oil companies just run their old data through their AI and don't need new data and don't need better images because their AI is going to do it all themselves in their supercomputers? And what you say today, you're saying AI means more computer time from your people and better margins and better numbers for your Geoscience business. So can you just square that one up?

And then secondly, Beyond the Core, it doesn't seem to be there anymore. What are we doing in that?

All right. Okay. Thank you. Excellent question. The role of AI, there's a lot of hype around AI. The -- if I can square it up, where we're going to be using AI, for sure, we're going to be using for our functions. So that maybe is not very glamorous, but we're going to do like everyone and we're on our way to optimizing our support functions and leveraging that.

But what you're talking about is the -- our core and imaging activity. And that one, we are embracing AI and we do believe AI will be more and more embedded into our physics-based workflows.

And I insist on physics, what we're doing, we're using physics approach to model the behavior of the earth and therefore, getting those high-quality and high-fidelity images on that basis.

So AI gets embedded into the workflow for some of the activity like, for example, you're trying to remove noise from the signal, AI is really good at that. You're trying to do quality control of the data, AI is really good at that. But AI will not replace physics-based workflow. It will help enhance it. So we are embracing AI. It will complement what we do, help us be even more efficient, provide better results.

Where you're hearing our clients saying they want to leverage AI is what you do after you've done the image. You need that best image to be able to generate insights from that image and to do E&P, exploration and production work. So you're really identifying those exploration targets, you're designing the wells that you're drilling. So all these activities because they don't have a physics model are really well suited for AI.

And other things the clients will be able to do is -- and we can do that as well on our data library, is identifying and start correlating different basins, different reservoirs and trying to get more and more insights from the data. But you've heard the sentence, garbage in, garbage out.

In order to get those strong insights from the data, you need good data input. And of course, you need that best image to be able to get those insights. So we're quite confident that we are actually, if anything, in a very, very strong position to provide inputs to AI, if that makes sense.

The second one on Beyond the Core, we are following our clients. So we've always said all along that our core business is oil and gas. It represents 90% of our revenue and we're committed to continuing to advancing technology and being the best at what we do in our core businesses in the oil and gas.

We think it's important to continue developing new businesses for the long term. And we've selected those businesses to leverage our core capabilities.

And so we're continuing on that, but we've decided that we were going to deemphasize the sort of the speed and the communication around those new businesses just because we're sort of following the path of our clients and the path of the general industry.

Are we continuing? We're absolutely continuing because we're not -- it's not costing us money. We're doing this organically and it's more of a longer-term proposition.

In terms of number, if you're interested, we generated close to $110 million of revenues attached to our Beyond the Core initiatives, mainly driven by, as I think we said it during the presentation, infrastructure monitoring, which is within our SMO division as well a good momentum on the HPC and digital, which is part of Geoscience and especially with our oil and gas clients.

Your next question comes from the line of Kevin Roger from Kepler Cheuvreux.

I have 2, if I may. The first one is on Geoscience. Just to understand a bit the expectation for '26 because you always commented, Sophie, that the backlog doesn't mean a lot for the short-term earnings dynamic.

But just to get a bit of sense on what you do expect for '26 on Geoscience based on the backlog that you have right now? And also trying to understand this increase in the petaflop capacity, you are now close to 700. So what does it mean exactly in terms of revenue potential for Geoscience, this increase in the petaflop?

And the second one, so you recently said in an interview that Viridien needs to decide if Sercel is core or not for the group. So I was wondering if there is any development on that side, please.

Okay. Thank you. On the Geoscience, it's not -- as you pointed out and I said over the years that the backlog is not an impact translation. It's not a direct indicator of the health of the business.

However, just let me remind you the number that we have at the end of 2025. It is a very good number and makes us quite confident that we can achieve a similar performance as in 2025. So call it sort of equal similar to 2025.

Now the link with petaflop isn't as obvious because what's been happening over the last 10 years is we've been transferring people activity into computing. So that allows us to do more with less people.

So in a way, that has driven more than efficiency revenue per head ratio higher. So we have less heads over the years because we're increasing the petaflops. And with those petaflop, we can increase the differentiation and therefore, have a better sort of pricing potential in what we do.

So it's not necessarily purely are we going to do more, but we're going to do better. We have -- we're more resilient, we're more differentiated and we don't need as many people.

Remember that also part of those petaflop, Kevin, are used for -- to improve the algorithm. So for what we call R&D activities, we usually consider that about 20%, 25% of the capacity is there for these new features, which does not translate right away into positioning us as a clear leader in terms of the image we deliver for the future.

I wanted to add as well an additional comment on the nature of the backlog. The size of the project is actually getting bigger because of these OBN projects, which do -- are much more intensive in terms of work. And therefore, as a result of that, the backlog, the order intake becomes more bulky.

So what I could say is that we are in discussion right now as we speak, for really, really large projects. And that's why we're quite confident that we could deliver a similar year to 2025.

And when you compare as a backlog of '24, I mean, there is indeed a significant decrease. But clearly, we are not worried. I mean, 3 key explanation on our side is we -- at the end of December '24, we did record long-term revenues through what we call dedicated processing centers with some of the NOCs, which is recorded in one shot, but the revenues are spread over 3 to 5 years.

And there are like 2 other factors. I mean, you know that we had strong activity with PEMEX and the other dues that dented our performance during the course of '25, which we have stopped today working with PEMEX. So no further backlog on that front, but we are hopeful we will work again very soon when the payments are made on the remaining values.

And the third one, the Chevron and Hess merger had an impact on the activity. We were a very good -- I mean, Hess was a good client of ours and Chevron has put on hold and Hess obviously has put on hold everything while the merger was between signing and closing. But now we are seeing a strong activity with Chevron, which should translate in a strong backlog or backlog building up hopefully before the end of Q1.

So -- and then your second question, Kevin, on Sensing and Monitoring. We -- as you know, we engaged into the restructuring. We're quite happy of where we are and how we improve the performance. And I just want to say that there isn't a process underway at this stage. So no news.

Your next question comes from the line of John Olaisen from ABG Sundal Collier.

I just wonder a little bit when you say that you expect a softer activity in the first half of '26, is that for all 3 segments? And also, when you say softer, is that relative to the first half of '25?

When I say softer, I say -- Geoscience, like we presented over the years, doesn't have much volatility because it is well covered with backlog. So we'll see a slightly softer, let's call it, for Geoscience. EDA is always the one that has more volatility, is the one where when clients are wait-and-see mode, they can decide to delay some of their spend.

We're still a little -- 1 month away till the end of the quarter, so it's difficult to know where we're going to land, but that would be where I expect to see some softness.

And also, this is combined with the fact that we're not spending much CapEx in Q1 on EDA because it just happened that way. We have lots of projects in the pipeline.

So we're quite confident we'll be spending some CapEx and we'll have good prefunding in 2026. However, in Q1, there isn't an ongoing survey and therefore, there won't be prefunding associated with that.

And on Sensing and Monitoring, it isn't linear. So we know right now that there isn't -- we have some orders in the pipe. But again, it will be -- that year for them will be pretty backloaded.

Okay. And then my second question, do you have any tangible signs that makes you see -- to expect recovery in the second half?

What are the signs? It's a good question and I expected it. It's the conversation. When you talk to clients, they're pretty much saying they're maintaining, they're upping, they're increasing the offshore spend in exploration, development in Geoscience. So they're quite confident about that they're going to have the money and they have the money to be spending.

And again, there are different categories of clients. Majority of them are talking about stability. So it is obviously -- whatever they're not spending in Q1 will be spent later in the year. We're seeing it as well through the activity in acreage and then taking positions and we feel confident that eventually they're going to have to work through that.

Your next question comes from the line of Brage Reier Groven from Clarksons Securities.

One question from my end. I have a Brazil-specific question regarding multiclient service. So you have the megabar extension with TGS. TGS also has the PAMA Phase 2, Pelotas Norte, while Shearwater also has Pelotas survey going on, et cetera.

So there seems to be significant multiclient coverage building up in the region among different players. So specifically what will be kind of the differentiator here? And what will Viridien's strategy be to gain market share and attain this market share in this key region?

Okay. Yes. Thank you for your comments. It's actually -- I agree with you. Northeast, it's equatorial margin in Brazil, which is an area of focus for Petrobras for exploration, is a busy area and it is attracting more interest across players.

It is busy, but it is enormous and it has enormous potential. So we -- what's sort of differentiated is your ability to anticipate to have the permit in the right places and to be able to deliver the survey.

What we know a big differentiation in multiclient as well is the imaging because we're able to provide an image that's sort of ready for exploration, is the best image and that is something that our clients have been appreciating. Because otherwise, if they don't have the best image, they might have to reprocess and waste some time to do that.

So I would answer to that is we're quite confident with our permits that are in the pipeline and our ability to deliver more surveys and there's a lot of space in that area.

[Operator Instructions] There seems to be no further questions from the phone line. If we wish to proceed with the webcast questions.

Yes, please go ahead.

So we have a couple of questions online from [ Steve ], starting with -- thank you, Steve, for your question. Steve asked, given the current euro-dollar rate around $1.18, what would be the breakeven point for SMO?

I take this one. So for the -- for the year 2025, we said that SMO was negatively impacted by a lower USD-euro exchange rate. Impact was about $7 million to $8 million. Now if you -- and basically, if you put yourself at $1.18, we said that the breakeven point at the time of the -- when we launched the transformation, obviously, we were at a much lower FX. So I would say that $1.18, it will be slightly above $300 million, the breakeven point.

Thank you, Jerome. The second question, Steve, I think, has been answered on the Geoscience year-on-year change. You understood the 3 factors precisely underlined by Jerome.

[ Thomas ], a question regarding our U.S. HPC infrastructure plan. Thomas is asking if we need specific state-of-the-art chips typically from NVIDIA, how easily we can procure them? Is there is some kind of waiting list for this or if our HPC centers are structured in the way and chips are not so much of a concern?

Yes, that's a really good question. I'll take that one. We have an ongoing -- this is an expertise that we've developed over the year. And so we buy chips on an ongoing basis, not like we have a monolithic data center that we make a big investment, we need a ton of chips in one go and then we do nothing for several years.

Our model is every year, we purchase chips and upgrade. So our data center is an ever-evolving HPC center. And in that respect, we've already placed our orders for 2026 and we're quite confident that we'll get our -- we'll be served.

Another point I want to make, we're not interested in the latest and greatest. We always use probably a couple of generations behind and that we tailor them to our physics-based algorithms and that's what we need. So perhaps a bit of a less of a competition in that space.

So -- and then you might have seen we just did a press release with NVIDIA. NVIDIA really does care about how we use their chips. And we have a long-standing relationship with them and with others.

Thank you, Sophie. And then the last question, Christian [ from ] Benoit. So Benoit, you're asking basically about the 2025 to 2026 net cash flow bridge. The PEMEX topic has been answered. I leave the floor to Jerome for the main elements mainly.

Yes. I mean, so basically, we have some positive versus this year, the one that I guess which are no Shearwater penalty in '26, it's about $10 million. We have the full year effect of the SMO transformation plan.

It's another $10 million that we will gain. Lower interest expenses, knowing that we have reimbursed some debt in '25, let's call it another $10 million.

And as we mentioned, we are planning on working capital release. You've seen that in '25, we did burn about $60 million of working capital on the back of PEMEX and phasing of some payables with our data.

As I said, for PEMEX, we are counting on collecting the overdues, but we're also counting on restarting work with PEMEX and therefore, having some new receivables with them towards the end of the year. That's on the positive side.

On the negative side, we have not even that in '25, we benefited from strong transfer fees, Chevron and Hess, Repsol and Neo. We don't communicate on the amount, but it was a significant amount that we don't expect to that magnitude to replicate in '26.

And we will have the CapEx we need to invest on the expansion of our HPC. So all in all, with those positive and negative, we are comfortable to reguide again this year $100 million of net cash flow. Hopefully, the bridge is detailed enough for you to be comfortable with this guidance.

Thank you. No more question on my side. Any more question on the phone line, operator?

There are no further questions from the phone lines.

Well, thank you very much. It's been lots of questions and a heavy session. Thank you very much, and I look forward to interacting with many of you in the coming days and weeks as we go into new phase in the next week. So thank you very much. Have a good evening.

Thank you, everybody. Good evening.

This concludes today's conference call. Thank you for participating. You may now disconnect.

"

"

"

"

" Kepler Cheuvreux, Research Division

"

" Barclays Bank PLC, Research Division

" ODDO BHF Corporate & Markets, Research Division

Good day, and thank you for standing by. Welcome to the Viridien Third Quarter 2025 Financial Results Conference Call and Webcast. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Alexandre Leroy. Please go ahead.

Good morning, and good afternoon, everyone. Thank you for joining us today for Viridien's Q3 2025 Results Presentation. I'm Alexandre Leroy, Head of Investor Relations and Corporate Finance. We are hosting today's call from Paris, and I'm pleased to be joined by Sophie Zurquiyah, our Chair and CEO; and Jerome Serve, Group CFO, who will walk you through our performance.

Before we begin, a few housekeeping items: this call is being recorded and is accessible via both phone and online platforms. An audio replay will be available shortly on our website, www.viridiengroup.com. The presentation slides are also available for download from the website. Please note that today's presentation includes forward-looking statements. Actual results may differ materially from those expressed or implied today. Relevant risk factors are detailed in our 2024 universal registration document filed with the French Financial Markets Authority, AMF.

As usual, we'll conclude with a Q&A session. And finally, a quick reminder that Viridien comments primarily on segment figures, which reflect our internal management reporting. This differ from IFRS numbers also published today due to IFRS 15 impact on our Earth Data business accounting.

With that, I'll now hand over to management, starting with Sophie, who will take you through the key business highlights for the quarter. Sophie, the floor is yours.

Thank you, Alexandre. Good morning, and good afternoon, ladies and gentlemen. I'm now on Slide 2. Q3 2025 market marked another strong quarter, both operationally and financially. Operationally, our Geoscience business continued to deliver robust results, leveraging market-leading technologies that address critical industry needs and drive value across both exploration and production. Our data late sales were particularly strong, fueled by sustained customer demand for our advanced data sets in mature and strategic frontier basin. This momentum was further supported by transfer fees from recent client M&A transactions.

In Sensing and Monitoring, the Land segment maintained solid performance, contributing meaningfully to the quarter. And financially, segment revenue reached $313 million, a 27% increase year-on-year. Segment adjusted EBITDA rose to $167 million, up 70% year-on-year. Net cash flow generation totaled $53 million for the quarter, bringing the year-to-date figure to $62 million as of September 2025. We remain confident in our outlook. Our asset-light strategy, our focus on high-end technical solutions, and disciplined multi-client approach drive strong performance. Combined with supportive market fundamentals and a solid backlog, we confirm our full-year net cash flow target of $100 million. Let me reemphasize this $100 million excludes any potential cash in from overdue receivables from PEMEX.

Moving on to Slide 4. Q3 2025 was another solid quarter with external revenue rising 5% year-on-year to $108 million. Activity remains strong in Geoscience, driven by large ocean bottom node imaging projects in key mature basins, particularly in offshore fields in Brazil, in the U.S. Gulf, where clients rely on our technology to optimize production. The Middle East also remained active, especially Abu Dhabi, where significant volumes of data were acquired. Despite the volatile oil price environment order intake remained robust, underscoring our strategy and sustained industry demand for high-end imaging solutions that enhance exploration success and production efficiency in increasingly complex oil fields. Notably, over 50% of our Geoscience revenue is tied to development and production activity, making this business sensitive to oil price fluctuations compared to more exploration-driven segments.

At the end of September, our backlog stood at $290 million, providing strong visibility for sustained activity and cash generation, not only for the remainder of the year, but also into the first half of 2026. We remain confident in the resilience of our Geoscience business, supported by our focus on complex offshore projects, long-term partnerships with value-driven clients, including leading IOCs and NOCs, high-end OBN imaging, which plays a pivotal role in development and infrastructure-led exploration. And this is an area where we lead the industry.

Let's go to Slide 5. It illustrates a tangible example of how our geoscience imaging services directly contribute to optimizing field production even in the most complex reservoirs. The image showcases BP's Atlantis field in the U.S. Gulf, but the same approach applies to other challenging environments, including Brazil, Norway, Angola, and beyond. In this case, we partnered closely with the operator to deliver precise high-end imaging of 4D OBN surveys, that is repeated ocean bottom node surveys over time. This enables a detailed monitoring of fluid movement within the reservoir, allowing the operator to strategically inject fluids to enhance hydrocarbon recovery, optimize overall well performance, and accurately position and drill new wells while maximizing drilling while minimizing drilling risk.

For the operator, this translates into optimized production, improved economics, and a lower carbon footprint across both existing and new infrastructure. And for Viridien, it means recurring business anchored in production activities, strong exposure to development-led operations, and deep long-term relationships with clients who value our expertise in imaging, complex reservoirs offshore, especially through high-end OBN where we lead the industry.

Now turning to Slide 6 for the Earth Data performance review. In Q3 2025, EDA delivered a very strong performance with revenues up 63% year-on-year. This growth was driven by two key factors: sustained industry demand for high-quality data, both in mature basins and high-potential frontier areas where we are strategically positioned, transfer fees stemming from recent client M&A activity within the industry. Excluding transfer fees, which are a standard component of our Earth Data business, aftersales were strong. While the scale of transfer fees can vary year-by-year, their contribution this quarter was notable. Operationally, we made good progress on the Megabar Extension Phase 1 project in Brazil, reinforcing our presence in this attractive emerging basin. We are actively engaged in discussions for new projects in the U.S. Gulf and Eastern Mediterranean, with the latter showing renewed exploration interest, particularly in Egypt, as highlighted in recent industry headlines.

Looking ahead, we remain confident in the long-term value and performance of our multi-client library, underpinned by the quality and relevance of our data sets, the strategic geographical focus, and our disciplined asset-light investment approach. Importantly, E&P companies are reaffirming their commitment to selective exploration, maintaining budgets despite potential short-term macroeconomic headwinds. Several countries are also evolving their regulatory framework to attract investments through licensing rounds and other incentives, which should further support multi-client sales momentum. As of September 2025, our Earth Data library net book value stood at $534 million, concentrated in our most active offshore regions, including Norway, Brazil, and the U.S. Gulf.

Now on Slide 7. I would like to highlight a highly valuable project for our clients, one that is also cash generative for Viridien. This project is located offshore Uruguay, where we hold the marketing rights for 25,000 square kilometers of legacy streamer data acquired between 2012 and 2017. Recognizing Uruguay early on as a promising frontier area, we strategically entered the market by leveraging our high-end imaging technology. The data set was reimaged using our latest innovation, notably our unique TLFWI, resulting in a remarkable improvement in image quality.

This led to the identification of multiple high-potential prospects, sparking strong client interest. And projects like this that leverage our imaging leadership typically receive hyper funding and represent $30 million to $40 million or 15% to 20% of our annual multi-client CapEx. They are very attractive for Viridien because they allow us to unlock new frontier plays with minimal risk and high return, maximize the value of legacy data, and strengthen the relationships with local authorities, a key success factor for long-term engagement and success. This approach not only delivers meaningful value to our clients by enabling better informed exploration decisions, but also reinforces Viridien's strategic positioning in frontier basins and supports our cash generation objectives.

Now moving on to Slide 8, covering Sensing and Monitoring performance. In Q3 2025, SMO revenue grew 16% year-on-year, reaching $69 million. While our Marine segment showed improvement compared to last year, momentum remains subdued. Overall growth remains primarily driven by the land segment, which continues to perform strongly. Our land nodal system, WiNG is gaining traction with expanding sales across Asia and Latin America, reflecting growing market adoption. In Marine, our Tune Pulse Source is now deployed across all Sparse OBN surveys in the U.S. It is increasingly recognized as the reference solution for acquisitions requiring low-frequency signals, essentially for high-end subsurface imaging.

Let's focus on land as shown on Slide 9. Activity remains resilient and well diversified, supported by the healthy mix of flagship high productivity surveys underway in North America, where we currently have over 80,000 nodes delivering excellent data quality. Multiple medium to small crews active across South America, the Middle East, and Asia, providing a broad geographical track record and installed base.

Technology momentum is also encouraging. We're seeing strong industry interest in Accel, our new drop-only nodal solution, which was recently showcased at the Image trade show in the U.S. following its debut at EAG in France last June. We expect to see Accel orders strengthening our SMO business in 2026. Under our new business initiatives, we have also achieved a milestone with the first deployment of one of our mainstream nodes for hydrogen projects, expanding our reach into emerging energy sectors. It's worth noting that even in the absence of mega-crews, SMO has demonstrated its resilience, thanks to our deep market penetration, optimized operational structure, and strong reputation for quality and customer service.

With that, I'll hand over to Jerome, who will walk you through the financial performance with you.

Thank you, Sophie. Good morning and good afternoon, everyone. We are now on Slide 11, covering group segment revenue.

Over the first 9 months of 2025, we generated $888 million, up 14% year-on-year.

In Data, Digital and Energy Transition, our DDE segment, revenue reached $639 million, an increase of 17% compared with the first 9 months of 2024, driven by both Geoscience up 13% and Earth Data up 21% year-on-year. In Sensing and Monitoring, revenue totaled $249 million over the same period, representing an 8% increase year-on-year, driven by robust land activity and continuous growth in new business.

Turning to Slide 12, covering profitability. Total segment adjusted EBITDA reached $417 million over the first 9 months of 2025, representing a strong 40% increase year-on-year. This performance was mainly driven by our DDE segment, delivering $100 million of incremental EBITDA year-on-year and achieving a margin close to 64% -- this is explained by, on one hand, a higher level of revenue at both Geoscience and Earth Data, which, as you know, have a strong margin conversion.

On the other hand, no vessel penalties following the final payment to settle the contract with Shearwater back in January. Regarding Sensing and Monitoring, SMO, it contributed an additional $13 million of EBITDA versus last year, thanks to revenue -- higher revenues as well as incremental cost savings from the restructuring plan we have rolled out since January '24.

On the downside, SMO profitability was impacted by the steep depreciation of the U.S. dollar. SMO has indeed a significant portion of its cost base in euros, given the location of its main manufacturing and R&D sites. Q3 '25 alone this quarter, this was a negative $3 million impact compared to last year, which translated into about 100 basis points lower profitability over the first 9 months of 2025.

Despite the headwinds, SMO adjusted operating income margin reached 5.3% year-to-date, a significant improvement compared with last year when we posted a negative 3% --

Moving to Slide 13 for the IFRS figures. The IFRS 15 adjustment continues to be significant this year, reaching minus $130 million on revenues and EBITDA over the 9 months of 2025 versus plus $13 million last year over the same period. This adjustment mainly relates to our ongoing earth data surveys in the U.S. Gulf and Norway, which will be mostly completed by H1 '26.

As a reminder, in our segment reporting, we continue using the percentage of completion methodology or data project, which better reflects our business activity and cash generation of the division, and which IFRS 15 does not allow for.

Despite this negative IFRS adjustment and a much lower contribution from discontinued operations compared to 2024, net income for the first 9 months of 2025 stood at EUR 19 million, almost in line with last year.

Moving on to Slide 14 and how this translates into net cash flow. We generated $62 million of cumulative net cash flow over the 9 months of 2025, including a strong $53 million in Q3 alone. If we look at the bridge versus the same period in '24 when we generated $34 million, the picture is quite clear.

On the positive side, a much stronger EBITDA contribution, up $123 million year-on-year, and lower CapEx, mainly at Data, contributing most of the additional $28 million of extra cash. These positives were partly offset by 2 main elements: $100 million negative impact from working capital, primarily linked to higher PEMEX receivable on our balance sheet, and lower payables on ongoing EDA projects reflecting the phasing.

The other line at minus $23 million is essentially the net effect between the savings achieved since the end of the vessel commitment and the fact that in 2024, we benefited from a one-off $38 million of cash flow from the settlement of a long-standing litigation with ONGC.

On the PEMEX front, we continue to actively pursue option to monetize our exposure, maintaining a regular discussion both with PEMEX and with several banks on potential factoring solutions.

And actually, on a positive note, we were contacted by PEMEX this week regarding a partial payment of our receivables.

It's still very early to comment in detail, but this could potentially represent more than EUR 20 million of cash for Viridien. We will remain very cautious at this stage, as this is a recent exchange with the company, and there is still significant administrative work ahead with uncertain timing, still a positive development worth noting.

Finally, a few words on our debt, moving on to Slide 15. As you know, Viridien remains very active in terms of liability management.

First, we continue to maintain active discussion with several financial counterparties looking for more competitively priced financing solutions. On that front, even if the amount remains modest, it's worth highlighting that in early July, we obtained a EUR 10 million unsecured loan from the French state investment bank, BPI, at an attractive 4.6% interest rate. The fact that BPI, which used to be a historical partner of the old CGG is now supporting us again is a clear testimony of the significant progress Viridien has made in strengthening its financial profile.

Separately, in early October, we initiated a partial redemption of our outstanding bonds using the flexibility provided in our documentation. We have bought back $25 million and EUR 20 million from the respective tranches, generating annual interest savings of approximately EUR 4.5 million going forward.

If you look at the chart on the left-hand side, it shows the evolution of our gross debt over the last 12 months, stated to exclude the adverse FX impact on our euro-denominated bond and to include the October partial redemption.

Overall, you see that Viridien has reduced its liability by about $200 million or roughly 17%, and we intend to continue allocating most of our cash flow towards further debt reduction in the future.

With that, I will hand it back over to Sophie.

Thank you, Jerome. We're now on Slide 17.

In conclusion, our Q3 2025 was a strong quarter for Viridien, marked by robust operational and financial performance. With improved visibility into year-end, we confirm that we will reach our $100 million net cash flow generation in 2025. I reiterate that this target does not include any collections of PEMEX receivables, with hopefully some good news to come in the coming months on that front.

Exploration and seismic activity are expected to remain stable even in a volatile oil price environment, as these services are critical for sustaining production and unlocking new reserves, especially for longer-cycle offshore investments.

While operators may adjust CapEx spending in response to price fluctuations -- oil price fluctuations, reductions are likely to be concentrated in other parts of the value chain such as drilling or in low-carbon. The structural fundamentals of our market segment remain positive, accelerating field depletion and mounting reserve replacement pressures are driving operators to selectively prioritize resource security over short-term cost savings.

This, together with our asset-light strategy, focused on high-end technically differentiated solutions and a disciplined multi-client approach translates into a continued robust outlook for Viridien.

Our clients continue to invest in high-end seismic technologies and multi-client data libraries, which enable them to make better-informed exploration and development decisions.

Thank you very much, and I now open the floor to your questions.

[Operator Instructions] And we take our first question, and it comes from the line of Kevin Roger from Kepler Cheuvreux.

I have 2 mostly, if I may. The first one for you, Sophie, maybe a bit of, in a way, sensitivity or sensibility analysis on Geoscience, because you clearly underlined during the conference call that there are currently some uncertainties regarding oil price, but that you expect your business, thanks to the value addition that you bring to the clients, to remain quite resilient.

I was wondering, if we make a scenario of, let's say, a $50 oil price environment for '26, what will be the top line of Geoscience in terms of magnitude? I know you will not provide the exact number, but just a sense to understand what's the kind of reaction that you expect on Geoscience in a $50 oil price environment. That will be the first question.

And the second one is maybe more for you, Jerome. You just mentioned that PEMEX contacted you for the payment of a part of the receivable that you have for maybe some EUR 20 million, et cetera. But considering the movement in net working capital year-to-date, the net number is probably much higher than that. This call that you had last week, does it change anything regarding the strategy that you maybe had in mind a month ago regarding factoring with banks, et cetera? Or you will continue to deeply look for the factoring of the receivables from PEMEX? That's it for me.

Yes. Thank you, Kevin, thanks for that question. So we, of course, ask ourselves the question about sensitivity to oil price. As you see, Geoscience is -- doesn't react very quickly to changes in the client spending because of the backlog that carries us through with enough -- with reasonable visibility.

When I think about it, I think about Geoscience being exposed to exploration and production. And I did explain that it's not just exploration, it's really development and production, which makes us very resilient.

If you think about it, the first order of variation would be linked to exploration and production CapEx variation offshore, which I don't expect even if the oil price goes down to $50, there will be very big changes in that number.

Now there are ways to counterbalance, and that would be our effort is to counterbalance that through the fact that OBN, Ocean Bottom Nodes, which is mostly used on development and production, require more intensity in processing. So meaning the share, if you look at the whole package of acquisition plus processing, the processing bit is more important.

So the fact that the market is shifting towards OBN is favorable to us because we have a higher market share in that space. And also in a low oil price environment, our clients are going to look at cutting their internal processing teams, which means we have increasing chances of getting that business.

So yes, we'll look at what the E&P CapEx does offshore. But I think there will be other mechanisms for us to compensate the drop.

Maybe another data point for you, Kevin, that we presented during our refinancing to illustrate the resilience of Geoscience is the peak and trough between -- I mean, the highest point was 2019 when we look at the history and the lowest point 2021, and it was at 17% and the difference in oil price was not only $10 to date, as you know. So that gives you a reference point.

And regarding your question on PEMEX, yes, we are obviously pleased that PEMEX hopefully will eventually pay it's a partial payment what they owe us.

And yes, given it's a partial payment, we are still pursuing very actively factoring routes. So there's no question. We want to get all our money back by exploring all options. What we said is the EUR 100 million target or guidance for this year, we are comfortable to reach it without PEMEX.

So that will be EUR 100 million even if you do not get anything from PEMEX?

Correct. Reasons versus what we discussed at the last quarterly call, we said we needed 20ion25.'veking on other option as we said it at the time. So we have divested a small business in the U.S. It's a gauge business, which was launched under [Indiscernible]. And the second factor is we anticipate slightly higher revenue than forecasted, which will translate into additional cash for the rest of the period.

Okay. But so that means at the end that if in the scenario that you manage to get the, let's say, roughly EUR 20 million plus you make the factoring from what you have as a receivable. I mean, you can clearly be around EUR 150 million, something like that net cash flow if you manage to get the EUR 20 million plus the factoring at the end?

I mean on paper, you are right. Honestly, the factoring, first, we need to land a deal with one of the banks we are actively discussing with. And the second topic is the consent we require from PEMEX. And as you know, the consent with the state-owned company like PEMEX may take some time. So I would not anticipate, at this stage, at least the cash to be received this year on the factoring side.

And the next question comes from the line of Phil Mather from Fremont Management.

Congratulations on the quarter. I guess part of my questions have been answered. But previously, I believe you commented on the EUR 100 million net cash flow bridge for 2025, factoring in EUR 25 million out of EUR 50 million in PEMEX receivable, right? Today, you're confirming this EUR 100 million full-year target regardless of any PEMEX receivables. So I just wanted to double-check that tweak, and I understood in your answer that should be correct. And maybe related to that, how much in PEMEX receivables remain outstanding as of Q3? And yes, what timing are you expecting for the collection, although I understand it's uncertain, but happy to hear some color here.

So yes, I do reiterate what I said. We were comfortably reiterating our EUR 100 million cash flow target for the year without PEMEX. The position of our receivable with PEMEX, we said, was EUR 50 million plus at the end of June. It has slightly increased from projects that were in the pipe since Q2. And your question was about the factoring. Am I correct?

I was wondering if you can give us a little bit more color on the timing you're expecting there in Q4.

Timing. This one is a bit difficult. We just -- honestly, we just got called by PEMEX. We had a meeting in Mexico this week. So it's not an easy scheme. Some other players have already some payments. So hopefully, it will be this year. But with PEMEX and this type of state-owned companies, you never know, and it will be, again, a partial payment. It will not be the full receivable that I mentioned earlier on.

We will take our next question. And it comes from the line of Michael Pickup from Barclays.

Nice quarter. I think I'll start with -- I'm not as negative as Kevin. And what we've seen this quarter is we've seen heads of exploration at some of the IOCs are moving seats, which suggests that companies are looking more exploration. And my colleagues are talking more and more about exploration and discoveries when they're talking to the investor community. So I'm just wondering what you're hearing about the medium term from your clients, because it would very much suggest to me that exploration is back on the agenda.

Yes. Mick, thanks for the question. Absolutely, there's a lot of speak about exploration. There were, as you know, conferences in London mid-October that highlighted that. And we do see much broader, and I did highlight this in Q2 already, much broader interest from clients. So they continue to still favor and they like the infrastructure that is exploration because it's lower risk. But also they recognize the need in the long term to position in those areas. 

And in parallel, as well, countries are making it easier for clients to invest. The reality is the peak hasn't completely translated yet into dollars, meaning they're trying to do all these things at sort of a flattish budget. And that's perhaps the disconnect that we're in right now. There's a lot of momentum and interest in exploration that hasn't completely translated into increased budget. 

But one might say it's not been decreasing, it's been flattish. And that's what we see moving forward. Eventually, down the road, as clients start taking positions in Africa, in Asia, in South America, the budget will need to increase because there will be more seismic acquisition, there will be drilling associated with commitments. So I think we're in the early stages of that momentum in exploration.

[Operator Instructions] And the next question comes from the line of Baptiste Lebacq from ODDO BHF.

Congratulations for these good results. Two questions from my side. The first one related to Jerome's comments regarding the, let's say, more comfortable regarding the guidance. You mentioned, Jerome, divestment of small businesses in the U.S. Can you give us an idea of the size of these disposals in terms of net cash for you? And the second one is related to transfer fees. Can you give us an idea of the amount of the transfer fees?

I will answer the first one. I will not answer the second one. As you know, we never disclose the size of [Indiscernible] but for the sale of our business GRC in the U.S., it was slightly above EUR 10 million.

We consider as part of the business model, it could be up and down depending on the year. This year is higher than last year, somewhat higher. But even if we correct from the transfer fee, the underlying after-sales are still very strong and very good. So we're confident and we're happy with the level of after-sales, even correcting from the transfer fee.

No more transfer fees on the radar screen for, let's say, coming quarters?

There are -- there is still M&A activity happening in the North Sea, but there is -- it really depends on whether the client takes the footprint and how much they decide to keep. So I wouldn't be very significant number.

Dear speakers, there are no further audio questions. And I would now like to hand the conference over to Alexandre Leroy for any written questions.

We have a couple of questions from Steve over the Internet. Please ask a follow-up question on the Glo disposal, if it's a Q3 or a Q4 cash inflow, or said differently, the Q3 figure or the figure of the EUR 10 million?

No, it's a Q4 cash inflow.

The second question is that if there might be some other disposal of non-core activities within the Sensing and Monitoring segment going forward?

There is a similar business as the one we just did in the U.S. So we have another games business here in France, and that's something we will potentially look to dispose in the future.

And as a third question, so first, congrats for our liability management. And Steve asks if there is any ability to repay the asset-backed debt facility we have in the U.K. if it is something that is top of the list on our [Indiscernible].

Yes, there is an arbitrage to use -- so we've done already EUR 50 million, as we said, in October of debt buyback. We want to do another EUR 50 million on the back of the EUR 100 million cash flow we believe we can generate by year-end. And there is an arbitrage between this EUR 30 million asset-backed facility, which was, as you may know, related to our data center in the U.K., and the arbitrage between this debt, EUR 30 million, and again, redeeming some bonds. We have some early repayment fees that basically makes the difference between the 2. So we will go for the cheapest option between early repayment and reducing the interest rate of those facilities.

No more questions on my end. Operator, do you have any questions over the phone?

There are no further questions over the phone. Over to you, Alexandre.

Excellent. Sophie.

Yes. Thank you very much. Very pleased with the quarter and reemphasizing the target of $100 million of cash flow for the year without the PEMEX. So, we're quite confident we'll be achieving that. Thank you for listening, and I look forward to engaging with you in the coming weeks.

Thank you.

Thank you.

This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.