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Good morning, everyone, and welcome to Renault Group's Third Quarter Revenue Call. Thank you for joining us. With me today is Duncan Minto, our CFO, together with Fabrice Cambolive, Chief Growth Officer and CEO of the Renault Brand; and Katrin Adt, CEO of Dacia.

Please note that this call is being recorded and will be available for replay on Renault Group's website. As usual, before we start, I'd like to remind you that today's discussion may contain forward-looking statements reflecting the group's current expectations. Actual results may differ due to a number of risks and uncertainties as detailed in Renault Group's public disclosure.

Duncan will walk you through the key highlights of the quarter, and we'll then move to a Q&A with Duncan, Fabrice, and Katrin. Duncan, the floor is yours.

Thanks, Florent. Good morning, everyone, or afternoon, if you're joining. Thank you very much for your presence today, as always. Maybe I should start with the key message today would be that the third quarter played out as we expected. Revenue was resilient. The quality of the revenue bridge you will see remains solid, and we confirm our 2026 financial guidance.

So let's begin with the clear acceleration in EV demand. In Q3, our EV passenger car sales in Europe increased by 85% year-on-year, bringing growth over the first nine months to 59%. This reflects the strength of our refreshed and attractive lineup, our dealer and aftersales network and the financing solutions offered by Mobilize Financial Services.

Our captive is a key commercial enabler. It makes the transition to EVs more accessible through competitive financing and leasing solutions, supports dealer activity and customer conversion and helps sustain loyalty and residual values over the vehicle life cycle.

Our manufacturing and supply chain setup allowed us to capture this commercial momentum, and I congratulate the efforts done by all of the teams. Our plants are running at high utilization rate, 85% worldwide and above 95% in Europe, and we've added a third shift in Douai to sustain the pace.

At the same time, inventory management remains disciplined. Total inventory stood at a healthy 532,000 units with a more pronounced destocking at independent dealers than last year.

Finally, on the bottom right, you'll see our European order book remains solid at around two months of forward sales, giving us good visibility while preserving the flexibility to align production with demand.

As always, we remain focused on retail sales rather than pursuing volume through low-quality channels. In Europe, retail accounted for 65% of our Q3 passenger car sales. That's around 20 points above the market average and grew by 5%. At the same time, in Q3, we reduced short-term rental and demo sales by 18% despite these channels growing by 3%.

This channel discipline supports residual values with Renault and Dacia 5 to 13 points above the market average. In turn, stronger residual values support competitive leasing offers and protect new car pricing. As a reminder, we estimate that one point of residual value is equal to around one point of discount.

So if we look at group volumes over the first nine months of '26, Renault Group sold 1,662,000 vehicles, down 2.2% year-on-year. This headline reflects a contrasting brand and regional dynamics. So let's look at those starting with Renault Brand sales, which rose 1.1% over the first nine months, taking the brand to second place in Europe.

Renault Brand outperformed the market across EVs, retail and LCVs. EV sales grew by 75% compared with 41% for the market, supported by renewed and attractive lineup. I'd like to stress that even if still slightly dilutive on group margin, our EV growth is profitable.

Retail sales increased by 20% versus 11% for the market, reflecting the focus on sales quality. At the same time, Renault Brand decreased its short-term rental and demo sales by 22%, while the market was strongly up. And finally, LCV sales rose by 8% in a market growing by only 1%. Master led the large-van segment, while Kangoo and Trafic both ranked in the top three.

Turning to Dacia. As we'd already mentioned, the brand did suffer from a lack of product to fully capture the market shift towards electric vehicles, particularly considering their retail focus. With Spring as its only EV and in transition phase ahead of the model's renewal, Dacia's addressable market was reduced significantly. As a result, sales declined 12.8% in Q3 and by 9.7% over the first nine months. This temporary product gap was amplified by an exceptionally high comparison base in Q3 previous year and stronger Chinese competition, particularly in the C segment.

Dacia nevertheless remained on the European retail podium with Sandero retaining its position as the best-selling passenger car among retail customers. At the same time, electrified vehicles continue to gain traction, reaching 31% of the sales mix. Full hybrids alone accounted for one out of four Dacia sales, making Dacia the fourth largest full hybrid brand in Europe.

Beyond EVs and hybrids, LPG representing 39% of Dacia sales remains a key pillar of Dacia's value proposition, materially lowering running costs and reinforcing its total cost of ownership advantage.

Looking ahead, Q4 should progressively benefit from the ramp-up of Sandero hybrid, the New Spring, and of course, Striker. Every Dacia model now offers an electrified Powertrain. Q4 will also benefit from a stronger order book supported by improved order intake in the recent months.

Turning to Alpine. Registrations rose by over 60% to more than 12,000 units over the first nine months, already exceeding last year's volume full year. A290 led this growth with more than 8,000 units registered, while September was the best ever month for EV orders.

Although it's nearly 2,000 registrations remain below our volume ambition, the A390, which is now available in GTS version is progressively establishing a second pillar for Alpine's electric growth.

So turning now to the wave of the next products. Our product offensive is fully electrified, reflecting the two complementary pillars of our strategy, all electric vehicles and hybrids. This approach allows us to capture accelerating EV demand while offering hybrid alternatives suited to different customer needs and charging infrastructure.

Our launch momentum continues in the second half with the new Megane E-Tech, Trafic Van E-Tech, and Duster E-Tech for India, alongside the Dacia launches I just mentioned a couple of seconds ago. Alongside these electrified launches, Niagara will also support our international product offensive. Their contribution will build progressively with a full year effect in 2027.

So moving from product to the figures, let's go through the third quarter revenue and the main drivers behind the evolution.

In Q3, group revenue reached EUR 11.6 billion, up 1.5% on a reported basis, while registrations were down 6%. Automotive revenue was stable year-on-year at EUR 9.8 billion.

We'll dive into that in a couple of seconds. Before that, Mobilize Financial Services revenue increased by 11% to EUR 1.8 billion, confirming the strength and recurring nature of the captives contribution. So in other words, despite lower volumes and without pushing the metal, we kept automotive revenue stable and grew group revenue.

Over the first nine months, group revenue reached EUR 41.8 billion, up 7.1% compared to last year. So drilling down to the stable automotive revenue in Q3, starting with currency. It was mainly related to the appreciation of the Brazilian real, the Colombian peso, partially offset by the depreciation of the Turkish lira.

The second bucket volume effect was negative of 5.9 points, reflecting both the decline in group registrations in a challenging environment and a higher destocking this quarter at independent dealers. Lower volumes were offset by sales to partners and the positive price and mix effects, keeping automotive revenues stable.

Looking now at registrations. In Q3, group sales declined by 6%, reflecting contrasting brand and regional dynamics as discussed. We start by focusing on the Renault Brand sales. On international markets, Q3 was clearly intense, notably in Latin America, declining markets in Turkey, Argentina and South Korea.

In Europe, PC sales were up 6.3%, thanks to two main catalysts, EV and Retail. EV sales doubled in Q3 against the market growing by 55%, supported by the success of our renewed lineup. Twingo E-Tech electric has recorded nearly 26,000 sales since its launch and already ranks first in its segment. Retail sales increased by 31% compared to 12% for the market, a strong demonstration of the focus on sales quality.

Moving to Dacia. As we just commented, Q3 sales were down 12.8%, but I must highlight the high comparison base from last year in Q3. And finally, Alpine maintained the strong growth momentum with sales up 58%.

Importantly, the decline in registrations did not translate into inventory build. Total inventory stood at 532,000 units, as you can see on the chart, at the end of September, this is down compared to June as per our guidance. Independent dealers reduced their inventories by 118,000 units in the quarter versus 97,000 units in the quarter 3 of 2025.

At group level, inventories followed the usual seasonal pattern and stood 220,000 units, in line with the end of September last year. As mentioned earlier, this healthy inventory management is supported by a solid order book of around two months of forward sales in Europe.

Looking to year-end, we expect total inventories to trend towards the lower end of the 525,000 to 550,000 range we give, enabling the group to smoothly operate in the last quarter. So if we move to the next one, which is sales to partners, which had a strong positive effect of 4.9 points in the revenue growth, driven by two main factors.

Firstly, our partnership with Geely in Brazil. It's strengthening. It's the ramp-up of the distribution of Geely vehicles and the start of local production through Renault do Brasil joint venture since September.

Secondly, in India, the integration of RNAIPL since the consolidation point, which was August 1, 2025, contributed another EUR 165 million or 1.7 points of growth in Q3. Ongoing partner programs also contributed to this performance. I could note Nissan Micra, Mitsubishi Grandis, and Eclipse Cross.

So if we review the next point, which is price, product mix and geographical mix effects, the price bucket was positive at plus 1.1 points. Price increases on international markets to offset foreign exchange effects were partly offset by pricing pressure in Europe. Higher battery trim versions for the Renault 5, as an example, as well as HEV Powertrain for Bigster, Duster, and Sandero also supported a positive price effect.

Product mix was solid at 2.3 points. It was driven by the transition from Clio 5 to Clio 6, which is a higher average selling price, also by the light commercial vehicles, Master and Trafic and the success of our EVs. The geographical mix contributed positively at plus 0.5 points, mainly thanks to higher sales in France and Germany and a lower exposure to Argentina.

The last point in this quarter is the Other effect was negative at 3.1 points. This mainly reflected a return to a more normal inventory level at Renault Retail Group or Retail Renault Group, which is our wholly owned independent dealer network, after particularly low levels at the end of June 2026. By the end of September, RRG's inventories were back in line with the same period of previous year.

Mobilize Financial Services delivered another strong quarter. New contracts increased by 1.6% year-on-year, while average performing assets grew by 5%, supported by the increasing new financing and higher average vehicle selling prices over recent years. As a result, MFS revenue increased 11% to EUR 1.761 billion in Q3.

So if we now move towards the end of the year. While the environment has changed a lot since the start of the year, our commitment has not. Beyond the challenging market conditions, this year has brought a sharp shift towards electrification, yet we confirm our 2026 financial guidance with a group operating margin of around 5.5% of group revenue and an automotive free cash flow around EUR 1 billion.

As stated at the first half results, we continue to expect a slight improvement in operating margin in H2 versus H1 with the usual seasonal uplift expected to be less pronounced than in previous years due to higher raw material costs and inflation.

Our confidence rests on the strong fundamentals I've described, supported by the relentless execution on purchasing performance, productivity and strict cost discipline.

So to conclude, Q3 demonstrates the strength and agility of our operating model. Our three complementary brands, highly utilized, flexible industrial footprint, strong dealer and aftersales network and supported by mobilized financial services.

This has all allowed us to adapt swiftly to a changing demand while protecting value. That's what's at the core of futuREady, and it's in action. I thank you for your attention, and we're now ready with the team to take your questions.

Thank you, Duncan. So the first question will come from Thomas Besson from Kepler Chevreux.

I have two questions, please. The first is, as you just said, Duncan, the environment has changed quite substantially over the last few months. Can you just help us understand a bit better what allows you to offset what's going to be ultimately lower volumes in the second half than you probably initially planned?

What looks like a bigger push from Chinese automakers in Europe before the introduction of the hybrid cap, substantially higher input costs and a bigger shift to electrification. Any kind of figures on the headwinds and the pluses you can see against that would be very helpful.

The second question is about the evolution of used car prices in Europe. They've been sliding quite substantially over the last couple of months. I understand that you're doing everything you can for your own residues substantially above market average. Do you still see a negative impact? Or do you believe that your retail policy isolates you from the issues about declining used car prices?

Thank you for your questions. So yes, the environment has been quite different. I think I'd say the environment had a more dramatic shift between Q1 and Q2 for us than in Q3, which has pretty much run in line with our expectations as we set it out in July. Maybe say that when we talked about input costs, we called out in February EUR 600 million between raw materials and inflation. We had a EUR 200 million impact in first half. We confirm that figure in H2. So it's not something that's taken us by surprise.

So I'd say that, that's in line with our expectations. Clearly, there has been a continuous rise in demand in EVs, certainly in the retail markets in Q3. We've seen the big switch in Q2. It's picked up in Q3. And there is an increased pressure, and we're feeling it, if I'd say, on Dacia side in the C segment, I guess, in terms of Chinese competition.

But we've been working internally on execution. You know our vision on fixed costs. These are things that we control. And so that's something you'll see in the full year results, which has the proof in the pudding.

In terms of variable costs, we have a guidance of over EUR 400 per unit on average over the years. We achieved that in H1, and you'll see the strong dynamic continues with some excellent work between purchasing and also our suppliers. So costs, obviously, we believe we have a strong dynamic and it's helping us offset slightly lower volumes, but things haven't changed dramatically since how we saw the outlook in July when we presented H1. Maybe on used car prices, Fabrice, do you want to say something about Europe?

Yes. Used car prices and residual value. As you say, we have a competitive advantage to have a better residual value than most of our competitors between 5 and 10 points in the main five countries in Europe. And it's not by chance because we are doing a zero risk commercial policy in terms of residual value. What does it mean? We are lowering our short-term rental volumes. It means in six months, in nine months, we will not have the problem of the market, which is far above what we are doing in terms of reselling buyback from short-term rental.

We are focusing our commercial policy on retail. It means most of our used cars, which are coming back are buyback from retail consumers, which are coming back in our network. We are monitoring that very carefully. What do we see? First of all, we don't have any overstock in terms of used car. We don't have aging stock in terms of used car. We have now a slightly move. It means the residual value of the EV is improving and the residual value of the IC is slightly decreasing.

We are monitoring that very carefully, and we have action in place to make the resale of this car seamless with our network, and it's part of our competitive advantage. We presented in futuREady with this full life management. I would say that this is under control, and we are structurally resilient on that due to our very safe commercial policy.

Thank you, Fabrice. And this is Florent, this is also favored by the very good support and the common work done with Mobilize Financial Services with a prudent approach on residual values overall, thanks to third independent parties estimates, so I guess we are conservative in our mode, whereas we might see that some of our peers are more aggressive on the residual values they set in the first buybacks of the cars and so might struggle more as well in the used vehicle market afterwards. So I hope we answered your question, Thomas. Thank you.

And the next question will come from Horst Schneider.

The first question that I have relates to product mix effect in Q3 because it comes down sequentially, maybe doesn't mean anything for earnings. But I would have thought that the product mix effect is stronger given EV sales increased as much and that was down. So maybe you can explain the effect and what we should expect going forward?

The number two is we saw from some companies, especially from the U.S. carmakers, we saw some comments about material cost impact in 2027. So whatever statement you can make, what kind of impact you expect would be helpful. And the last one that I have is regarding this EV share and you are growing nicely the share in the market. Can you maybe share what is now the share of the BEV sales in your order book?

Thanks for the questions. So product mix, you kind of answered it yourself. So yes, slightly lower than your expectation perhaps. I think we need to look at the fact that we've been doing it quarter after quarter after quarter. So on a comparison basis start to get a little bit more complicated. I don't think it has a dramatic impact on our mix. EV mix in our order book, I'm not sure if I have a specific percentage. B segment. We'll see if we've got Sorry, I heard B Segment.

So in general, this is 40% of the total order book to be compared to 28% a year ago. And what's very interesting for us is that we see that the order intake year-to-date for EVs is growing 60% compared to the previous year. So a strong dynamic. And again, I think it's very important, as you mentioned, the price mix on the profitability of electric vehicles that we are profitable on all our electric vehicles. This is not the case for some of our competitors out there.

And it must be highlighted as well that the profitability on the A and B segment vehicles, which benefit notably from shorter development time and a more competitive platform, RGEV Small are above the profitability of our C segment EVs for the time being. And this will be solved with the continuous cost improvement that we deliver on the C-segment cars towards 2028 and the introduction of AG EV Medium 2.0 platform in 2028. So all in all, I think this is something that everyone needs to keep in mind. EV is, yes, dilutive still at group level. But the margins that we generate on OEs are clearly very decent and not as dilutive, I believe, as some may imagine.

Does it mean the rising BEV share is still dilutive for margin in general. It's a market burn going forward or not?

Yes, going forward internally. I think as Florent just pointed out, going forward in the short term, yes, it will be dilutive. But as we work on cost reductions with the introduction of new platform, that switches back in time.

And keep in mind that on the hybrid, we also continue to work on the cost. This is something that is notably enabled by Horse Powertrain. We have a target of reducing by up to EUR 1,000 per HEV Powertrain the costs in the midterm. So this is also delivering. And this is a competitive advantage that many of our peers don't enjoy. That target will soon become a reality.

Maybe just to come back because you said about material costs in '27. So I think that's something we'll bring up and quantify in February when we give the full year guidance, but it's not a surprise. We knew that, that's happening. We have rising raw materials. We have memory RAM cost, and we have electric components. I mean this is something that's hitting the market in general. And that's why you need to not forget the fact that we are targeting to do a EUR 400 per unit variable cost reduction on average year-by-year. So this was built into the plan.

The next question will come from Jose Asumendi from JPMorgan.

Let me start saying also, Duncan, thank you very much for the great collaboration over the past years all my very best wishes. A couple of questions, please. Can you talk about what is a little bit behind the pricing number, again, positive in the quarter, a little bit the puts and takes. And I'm trying to see if there's also some strength of the product that is reflected there on that pricing momentum? Or is it part of that mix of BEV versus ICE, et cetera? And then second, Duncan, on Dacia, I mean, correct me if I'm wrong, but I tend to think that this is a high-margin product that delivers higher margins than the group. So should I be concerned that deliveries are down on the quarter? Will Dacia sales rebound going forward? Any thoughts around that topic as well?

Okay. Thanks, Jose. And congratulations on your award recently. Pricing, what's behind it? So I think Fabrice has already commented on in terms of the value of a long-term approach to quality sales channels. So we haven't been pushing the metal, and that allows us combining the use of MFS to offer competitive financing offers to our customer and monthly rentals and leasing. We have had in that positive pricing bucket some impacts of version mix going up and also on the R5 in particular, but also across Dacia with hybrid coming on Sandero and mix improving on Bigster and Duster as well.

And so it's -- I think we put the figures on the slide, Jose, we're not participating in channels that have high discounts and put pressure on residual values going forward. So it's really discipline coming through there.

In terms of Dacia being higher than average, I mean, yes, Dacia is higher than average in terms of margin. We need to take into consideration that we knew that this would change over time as well, hybridization, having a full 100% electric offer. Even if we look at the switch from old Spring to new Spring, in fact, there's a big positive swing in profitability when you compare the two products there. But in terms of sales dynamic, Katrin, do you want to maybe add something on what's going on with Dacia at the moment?

Yes. Thank you, Duncan, and Jose. So as Duncan already said, '26 is certainly somehow a transition year for Dacia towards electrification. And we just launched the new product. so Sandero hybrid, best-selling car in the retail market. Spring full electric, Striker with the most efficient hybrid engine in the market. So we are quite confident to increase volumes going forward. Jose, did we get everything for you?

And the next question will come from Pushkar from HSBC.

Okay. Sorry to just come back on this topic of Dacia again. We've said that the struggle through or the pressure in '26 has been because there was lack of BEV product. There's not much BEV product coming through in '27, right? So I'm just wondering just directionally, '27 is still a year where you face pressure? Would that be a correct assumption? There's no reversal of the weakness that we saw in '26. That's the first one.

Then on the order book, typically, the Q3 order book is a little bit on the lower side compared to Q2, and that's because of the seasonality, the phasing of forward sales, right? It wasn't the case this time around. does that mean that there's what does this mean from a retail sales point of view for Q4? Just trying to understand.

Katrin, maybe we will let you answer Dacia first.

Yes. Thank you, Pushkar. So we are confident for '27 because we have a full year then of Spring, Spring, which is made in Europe and also eligible to governmental incentives in some countries. And we have a two-leg strategy. So we are not only building up our EV portfolio, but we have also hybrid now on all on the entire models. So we have an electrified portfolio. We are already the fourth brand in hybrid, and we are intending to develop in that even more. And it might be also that we see a little surprise in '27 also besides of that.

And so maybe for the models, so Dacia year-to-date nine months was down nearly 10%. We do expect the full year sales to be in negative territory against last year with Q4 sales to be slightly above Q4 '25. So keep this in mind for your model. And the second question you had, Pushkar, was on the order book. The order book was around two months. In fact, it was slightly below two months as a precise figure, which is absolutely normal because this forecast, the forward sales. And as you can imagine, Q4 sales are always higher than Q3 by seasonality. So there is no change to that seasonality this year.

And in terms of order book, we don't communicate on the detail per nature of channel mix. But as explained by Fabrice, the focus is really on the retail. We want to make sure that we protect margins and have a high cash flow conversion. And this goes through retail, while in the meantime, lowering the short-term and demo channel exposure. So this is really the strategy of value. And this is enabled because we have, again, a high utilization ratio of our capacity, and we can bring some flexibility in our economic model to make sure that we don't build something that would destroy value over the long run, notably on the residual values.

If I can ask just one more on the sales to partners. The India effect would go out of the sort of the bridge in Q4, but the Geely effect would continue. Can you just talk about the sequencing of these projects or partnerships so that we get an idea of how this moves just beyond not just Q4, but then beyond that?

Well, in fact, the sales to partners will remain a good support for us moving forward in the medium term. So we started the distribution of Geely cars in Brazil in July '25. In September, we started to produce the Geely cars in the Renault do Brasil factory. So this is gaining momentum on that front. As you know, we ramp up Nissan Micra and Mitsubishi Grandis and Eclipse Cross as mentioned by Duncan.

Next year, we will have the Nissan Pixo, which is the derivative of Twingo, that will start to kick in. We continue as well to work on LCVs for our Nissan colleagues in Europe and we produce for Nissan in India for the local and the export market. So this is set to continue. 2028, we will have Ford first BEV kicking in. And this is, again, another demonstration of our ability to be competitive and provide with the best economic model for our partners, including in Europe against Chinese competitors. So this is set to continue, and we will be vocal around potential other announcements. We are not close to partnership opportunities, as you may know.

And so the next question will come from Philippe Houchois from Jefferies. Phil? I don't see your anymore. I don't know whether Philippe is connected or not.

I have a question and it's as much a comment as a question, but one thing I noticed is most of your peers have talked about a very strong order intake in EVs and therefore, in backlog. And some of your peers have also had a problem producing enough. In your case, you've got a very strong performance and no unusual order book.

Just wondering any comments that you have in terms of having secured better sourcing your batteries or smoother manufacturing process to make sure that you actually gain share in EVs but also don't have a kind of unusual backlog. Any comments on this would be helpful.

And then my question is more -- I think we've been used for years to this idea that Dacia is a much more profitable brand than anything else in the group. You're having quite a good year despite Dacia being down. We know about the shortage of models in electrification. But going forward, should we stop assuming that a better Dacia is definitely going to uplift the margin? Do we have basically a more homogeneous margin across LCVs, Dacia and Renault cars?

Okay, Philippe, thank you for the questions. I mean I did say when I called out the congratulations to the Renault teams, both across purchasing, supply chain, manufacturing and the agility and flexibility that was demonstrated in reacting to demand. I mean, my colleagues on the right-hand side of the table here jump up and down in all of the management meetings, trying to get every single EV we can, and they've done a fantastic job to be able to respond to that. In terms of saying are we better than our competitors, I'll let you judge. But certainly, we have worked strongly with partners in terms of suppliers, we have multi-sourcing options. We're already well using our capacity, but we've added a third shift in Douai. We are meeting the demand, and I had coffee this morning with Thierry Charvet, who is our head of manufacturing and quality.

I don't foresee any issues through the end of the year. So quite comfortable on our ability to deliver that. Let's be honest, though, when we talk about an order book of circa two months, the EV orders a little bit higher than that and the ICE is a little bit lower. We're still managing to meet demand, but it is true that the order delivery delay for EVs is growing, and we were doing everything we can to meet that demand. In terms of your second question, which is Dacia, which is more profitable, this is maybe my fault if I've given you in the past some kind of expectation that the gaps are massive. We do have a higher profitability. We have vehicles in the Renault range that match that. You mentioned LCV as well. And the evolution of profitability over time is something we took into the futuREady plan.

So when we talk about increasing the availability and mix on the hybrid side, obviously, you're adding a second power unit to an existing car. So there is higher cost in there. That puts pressure on margins. Florent talked about the EUR 1,000 cost reductions and the contribution of Horse over time. So there's a dynamic that was taken into account in our plan, and that will play out over time.

Obviously, EV, we said was dilutive, but it's profitable. So this means that the gaps that maybe the market is imagining compared or across different brands or different Powertrains is not as wide as one may first have believed. So cost reduction is key. Technology is key. And developing things in the shortest time possible is also a big driver. And these are things that we've proven with the launch of Twingo and Spring to date. And I think you will see in the dynamic going forward.

Thank you, Philippe. So I see, Thomas, you raised your hand as it's a follow-up, if you don't mind, I would like to take I would like to take Michael Foundoukidis' questions first.

Maybe a question on hybrid caps on Chinese OEMs. It has been discussed. We had some news, but any update on your side? That's the first question. And then on the Made in Europe development as well and the CO2 change, what does it mean for Renault in maybe in 2027 or 2028? Those are the two questions.

Okay, Michael, thank you for those. Yes, this is obviously some breaking news that's happened in the past few months, but we welcome the European China agreement to limit imports. We've been advocating for quite a time. I think Francois was very vocal on that point that a deal would be good. And the recent announcements are positive. This agreement is it's important. France and Germany alignment, both are important automotive countries. And we expect to have more visibility of the final conclusions, I guess, in the coming weeks. But at this stage, despite the flexibilities that were introduced, the main risk, which was the CO2 2030 target remains probably insufficiently covered. The text is very complicated. In fact, a set of five different texts.

The negotiation process probably doesn't take into account the reality of European industrial ecosystem today. So let's see. We think things will come forward in the near future, but we still think there are certain things that need to be discussed.

Thank you Duncan. So we'll take Thomas Besson, can you please open your mic?

I just have two quick questions because I think there are others to ask questions as well. So the first one is on the sales to partners and the additions notably of the Geely partnerships in South America. Can you remind us the contribution of this to your operating profit and notably the new partnerships they effectively boost your numbers or not? And the second, you have not said much about the performance of Renault in international markets. Of course, international markets have been very adverse in Q3. Can you just make a few comments on this? I don't think it's changing dramatically the picture for your H2 but still it's quite sobering to see that for the time being at least, we are not seeing much dynamic.

Okay, Thomas. Well, before maybe handing over to Fabrice about the performance of Renault in international markets, sales to partners is -- we don't do things at a loss. So it is a positive contribution to our operating margin. It was built into the plan. And as Florent just went through a couple of minutes ago, there's a dynamic which is continuing in the coming years. Obviously, it's something where fixed costs are paid by the partner upfront, and then we're benefiting from a variable margin. So it's not a minor part. It's an important part, but we ensure, and I would like to remind you that, that we design and take the decision of profitability on programs without partner volumes. So it's a pure upside compared to the decisions taken and investments done by Renault Group.

And this explains as well, Duncan, why the return on capital employed at Renault is so strong. And please compare to our peers, you can look at the cash conversion. We can speak about margin as well in percentage. But at the end of the day, the use of cash is very good and proving to be superior to many of our European and U.S. and Asian peers. On international, maybe you could talk.

Yes, we can do a little word too. I would say, in our historical markets, the situation of Renault is quite good. Turkey, we are improving our sales, and we are outperforming the market despite since a few months, a market drop. This is what is explaining the Q3 decrease. Nevertheless, Renault is remaining the first brand in Turkey with better share of market. South America, we have a different situation. Argentina, we are monitoring our profitability. That's why we are down in terms of volumes, taking into account the situation. On Brazil, we are improving, thanks to Kardian and Boreal.

We will have in South America, two very important launches in the coming months in the LCV part first with Niagara for Argentina and Brazil and second, with the renewal of Master, which is also a big chunk in South America. Korea is suffering. Korea is suffering, but we have, I would say, a quite small exposure there. And India is ramping up with the arrival successively of the new models and the new engines, which are very important to make the electric transition also in India. So diverse situation, but all in all, a very, I would say, good risk management there.

And the next question will come from Stuart Pearson from Oxcap Analytics.

Apologies if I come back to something you've already covered, I multitasking this morning. But I just wanted to come back quickly, actually on Thomas' kind of first set of questions on a little bit around the pricing environment and the Chinese kind of push into Q4. I'm not sure we totally covered it. Obviously, in your bridge for the revenue side, it's kind of a positive number, which is obviously, as you called out, helped by FX and BEV, et cetera. So I just wonder when you think about the H2 price/mix enrichment component, I think it was negative 425 bps in H1, just how that might look versus that number in H2. I mean are you having to work much harder on cost to make this guidance, I presume, is that number getting worse?

Stellantis saying this week that pricing at least sequentially wasn't any worse in Q3, but they're still down 300 bps year-on-year. So just interested to get a little bit more color on pricing, especially the Chinese pushing a lot of imported volume into Europe ahead of any, I guess, quotas. So keen to dive into that. And then just quickly on one specific model, the Clio, obviously, updated model around this time last year, I think, seems to be fading a little bit. I don't know if that's sort of cannibalization into Renault 5, Renault 4, whether that's just a capacity allocation issue on your side? Or just what's going on with that model would be helpful.

Okay. So the first question was Chinese competition pricing outlook going forward. So you can see that the price was positive 1.1%. You didn't miss much of the call. So you're efficiently multitasking. We did have version mix in that, which is benefiting from as well, and we didn't have negative FX, as you pointed out. But we did have negative FX in some markets and prices were raised to compensate that. Obviously, there are more, 20 points more than average market exposure to retail markets, we're playing there, and we're playing it in a safe way, as Fabrice discussed, not heavily discounting and not suffering with our residual values being significantly higher than competitors as well.

So are things sequentially getting worse? Well, I think other people have called out that they do expect positive pricing in 2027. I think this maybe goes hand-in-hand with input costs rising. So if you have raw materials going up period after period, you have memory increasing and you have electronic components that maybe our competitors will follow us in some of the pricing actions that are being taken even as of right now.

In terms of expectations, though for H2, it's not something we were counting on as a positive. So as you said, we had EUR 425 million in H1. I expect some similar number for H2, and that was what we took into account in our guidance. The question on Clio cannibalizing with R5 or was it production? Fabrice, do you want to.

Regarding Clio, we are focusing with Clio on retail because this is where we want to make the difference. And if you take a comparison year-on-year between Clio 6 and we are improving our level of orders on retail for Clio by 20%. It means there is no cannibalization at all with R5. What is happening on Clio is that now with this commercial policy focused on value, we are not selling so many cars on fleets, waiting for better competitiveness in terms of hybrid. And this is why could explain sometimes some differences.

But once again, we don't need that and we prefer to push to sell the natural demand we have on Clio Retail Hybrid, which is a highly demanded product.

And maybe just to complete my comment, Stuart on because you talked about pricing, but also about competition. So we're not expecting a Q4 in volumes massively up. So stable to slightly positive overall. And that's something that also was taken into an account in what we're looking for H2.

Okay. All right. And best of luck for the future, Duncan. I think the fact that we're even here talking about Renault doing 3% auto margins, let's say, in H2 when Audi just reported zero and Mercedes will do zero in Q4. It's a long way from where we were talking about when you first started in IR, Duncan. So good luck for whatever comes next.

Thank you, Stuart. Have a good day. And we know, by the way, that it's not sunny in London.

So the next question will come from Henning Cosman. Henning, can you please unmute your phone?

First question, Duncan, excuse my ignorance, but if you could just explain again this destocking effect in the Others bucket from the RRG. How is that different from the destocking effect that is in volume? Do you treat that separately? So it's basically the RRG is that inventory reduction within group inventories whereas the volume destocking effect in the volume bucket is destocking on the independent dealers. Is that how we read it, but ultimately, it affects the bridge in the same way. If you could just explain that again, please?

And the second question is, frankly, I'm a bit surprised about your comments that you said for you, the shift had been bigger from Q1 to Q2 than from Q2 to Q3 just because there's so much more different from what the others seem to be seeing. I'm surprised actually hasn't come up just with respect to your margin guidance, around 5.5%. I believe in the H1 call, you said you see yourself at the bottom end of 5.3% to 5.7%.

So if you could just reiterate that, is that still the case? Is it around 5.5%? Is it really more 5.3%, which is the bottom end of that range? And if that's the case, how, right, which again goes back to not seeing as much of a shift as all your competitors. Inflation inevitably is higher. You're selling more EVs, I think, than you expected. That, I think, is certainly a bit lower than you expected at the beginning of the year, yet you managed to retain that bottom end of the guidance range, at least, I suppose. So could you just talk about then the offset perhaps surely then you must have more success in saving more costs, having better execution to offset a little bit the things that have been slipping in the course of the year. If we could just touch on that one more time.

Yes. That's a go because it was very much the theme of Thomas' question right at the beginning. But first of all, to answer you on destocking, I think you described it perfectly. So yes, we measure in our volume impact all of the invoices we make to the dealer network, be it independent or our wholly owned dealer network. And then in the last bucket at the end, we adjust where we've not actually externally revenue that out of the group in the case of a stock increase at RRG. So that's how that fits into the walk. I'd just point out that it was a low point in June. So it's more of a normalization of the level of stock at RRG. It's not an overstocking situation. But that's how it happens in the walk then.

If I haven't explained it clearly enough, I'm sure Florent can have a second go at it because he's much better than me. My comment on the more of a mix -- more of a change in the environment for Q1 to Q2, obviously, as we saw rising fuel prices, rising raw materials at the same time, rising inflation. I think maybe it's just because we are very focused on the retail market. But it's around 1/4 of retail customers walking in asking for an EV in Q1, and it doubled in Q2 for some markets. And that has continued. So we've been able to adjust our production and supply to meet that demand.

In terms of raw materials and input costs, when we talked at the half year stage and even probably when we talked in February, we were talking about EUR 600 million impact, EUR 200 million was the first half, EUR 400 million between raw materials and input costs in the second. And we're still seeing that in line. So yes, volumes might have been reduced slightly where we are not overstocking, where we are adjusting capacity in line with demand. And so yes, we have had to up the execution on variable cost performance and fixed cost performance.

But I think as my opening comments on Q3 were things pretty much ran to plan. This is not a huge surprising quarter for us. And so the guidance we gave in July to be complete on your list of questions was around 5.5% as you say, that range means 5.3% to 5.7%, and we are more in the bottom half of it than the top. Did I miss?

This was our last question. So we will soon close the call. But before we let you go on behalf of the group, Duncan, I'd like to thank you for nearly three decades at the service of Renault Group, and we all know around the table what it takes to succeed in the auto industry, especially in the mass market. So congratulations for that. Thank you, and we wish you all the very best in your new challenges, which will come very shortly. So all the best and to everyone, we'll meet you today during the roadshow in Paris and virtually. And if not, let's speak soon. We'll be around in the last months of the year to meet you all in the main financial places. Thank you, and have a good day.

Thank you, everyone. Thanks to everyone on the call today.

[Foreign Language] Today is an important day for Renault, but it is also a very proud day for all the teams who have been working on these projects, Latin America and especially here in Argentina.

At Renault, a new phase of growth is beginning. With our future-ready strategic plan, we have a clear ambition, boost our leadership in Europe, accelerate electrification and, of course, unlock the full potential of our business outside Europe. And to support this ambition, Renault will launch 14 new cars outside Europe by 2030. And Latin America here is at the heart of this strategy.

Over the past years, we have already revealed Kardian on the B segment and Boreal on the C segment, 2 major pillars of our international growth. And today, we are taking the next step on the pickup segment. Today, we will unveil Niagara. Niagara is the first future-ready car launched outside Europe, and that's not by chance. We share a long history with Latin America. Renault has been present in the region for decades, building lasting relationships with our customers, our partners and our employees. Niagara will be produced at our historical Santa Isabel plant in Cordoba, which has been manufacturing Renault cars since the '60s, including some icons like Dauphine, Renault 4 and Trafic. What I really love about Niagara is that it creates a unique proposition in its segment by combining the best of 2 worlds, the comfort and technology of a Renault car, but also the versatility, robustness, and capability expected from a pickup.

Niagara is a car built for work, for family, for adventure and, at the end, for everyday life. It perfectly illustrates our strategy, a Renault car at its core, designed for the specific needs of Latin American customers. As you will discover, Niagara brings each of our 4 Renault brand markers to life. It is first designed to be loved, a bold stance, strong personality, and eye-catching presence on the road.

It offers also people-first technology through smart, useful features designed to make everyday driving easier, safer and more connected, such as OpenR Link, our best-in-class connectivity system with Google built-in. It is also electrified by passion because the future of mobility is also about reducing consumption. Niagara has been consisted on our RGMP pickup platform, and it is an ultra versatile platform that will introduce our new hybrid technology, bringing greater efficiency while preserving capability and driving pleasure.

Niagara benefits also from crafted space, offering the versatility, robustness, and practicality that customers expect from a pickup while delivering a comfortable and very easy onboard experience.

This car is a result of the talent and passion of the women and men across Renault. Today, I would especially like to thank our teams whose dedication and know-how has helped bring Niagara to life. Thank you.

I think Niagara builds on strong foundations. In 2015, we already launched the Renault Oroch, the very first compact pickup in Latin America. And since then, we sold over more than 250,000 units. At the end, Niagara perfectly embodies the Renault recipe, combining global expertise with local talent, local production, and solutions that are relevant to customers. Designed for Latin America, built in Argentina, powered by Renault DNA and ambition. Now let's discover Niagara.

[Presentation]

Hello. Hello, everyone. Thank you for coming here to this incredible launch. For the new Renault Niagara, we wanted to think bigger, a car that would bring you further with an incredible stance and great roominess.

Niagara goes beyond conventional ideas of a workhorse pickup truck. It's also a lifestyle vehicle with a premium and an emotional touch, allowing owners to express their way of living, offering the style and the presence of a vehicle that you actually want to be seen in. Niagara is designed to move naturally from one world to another, from outdoor activities during the weekend to business uses during the week, from the city to the open road, from everyday needs to bigger adventures, a versatility that perfectly matches with Latin American ways of life.

Now let's take a closer look at this vehicle. Niagara is 4.94 meters long, [ 8.83 ] meters wide, and 1.71 meters tall. And these proportions give it a presence and a stature that is further emphasized by its high waistline in the cargo bed. With its upright front-end, sculpted bonnet, and blocky grille, Niagara has all the cues of a robust pickup.

Its strong stance and powerful styling are completed by the letters of Renault written with a pixel effect on the front end. And its light signature, it adds a sophisticated high-tech touch. All of these ingredients give Niagara a modern and even premium positioning.

From this side, the sculpted lines on the shoulders and the wheel arches contribute to Niagara's sturdy and adventurous character. Its true capacity to face the most remote terrain is emphasized by the high ground clearance and [ 17-inch ] black wheels with off-road tires. Both are exclusive to Niagara, outside of 4x4, its top version.

The distinctive design of the C pillar provides a strong sense of dynamism with its stylized finishing and accelerated angle, a fresh and unique interpretation for the pickup segment. The load bars running along the rear quarter panel and cargo bed are integrated in the C pillar. They underline the attention to detail that we paid in designing every single part.

At the rear, the name Niagara is stamped directly into the sheet metal of the tailgate. It's a robust and modern feature that you can find on premium pickup trucks. And the tail lights present a light signature in full LED technology. They are connected by a black cross strip, making the vehicle appear even wider.

Now let's go to the inside. With its spacious interior, modern design and comfort, the cabin of Niagara reflects the DNA of Renault, a crafted space designed for family usage that can accommodate up to 5 people. The horizontal dashboard, seamlessly integrated with the door panels, creates a sense of space and security. The floating twin 10-inch screens underline the sophistication of this high-tech design of the cabin. It's designed as a partner in everyday use. It features a seamless and intuitive digital interface.

The center console, finished and set in gray, includes a spacious storage compartment of more than 5 liters, which integrates even in refrigerated section. And the upholstery combines here black TEP for the cushion and the back rest with top stitching accents and gray green TEP for the side supports that match the body color.

And at the rear, the passengers enjoy a level of comfort that is hardly seen on this type of vehicle. We offer best-in-class figures in terms of knee room and back rest inclination at 25 degrees. And we know what's important for customers. So we also added a hidden space behind the rear seats to store your bags. With this level of comfort and interior styling, Niagara is worthy of a premium SUV.

So to conclude, Renault Niagara is a bold and sharp vehicle, an unconventional proposal that brings together the 2 worlds of the pickup trucks and the SUV segment. It provides versatility as well as an eye-catching design and a great comfort. In essence, Niagara is a companion to enjoy your everyday adventure.

And now, ladies and gentlemen, I leave the floor to Jan Ptacek. Thank you very much.

Thank you, Laurens. Indeed, Renault Niagara opens an exciting new chapter in Renault international expansion. For more than 40 years, Renault has been a trusted player in light commercial vehicles and pickup market in Latin America.

Niagara is the third Renault pickup designed for Latin America and produced in Latin America to prolong our success. And in Latin America, pickup is much more than working tool. During the weekend, it's part of the family life. And during the week, it's a business partner. That's exactly why we designed Niagara as truly versatile pickup, and this has been exactly our objective for Renault Niagara.

Niagara has been built around 3 priorities: First, bold and sharp design as already presented by Laurens. Second, technologies and comfort that you would normally expect from C-SUVs. And third, strong pickup capabilities.

Let me start with technology and comfort. Technology is an area where Niagara raised the bar. Inside, you will find 10-inch central touchscreen and 10-inch digital cluster, creating very modern driving experience and connected modern system with OpenR Link multimedia system, integrating Google and Gemini, we are proposing a best-in-class feature in the market. Customers enjoy seamless connectivity and intuitive digital services.

Safety is another key strength of Niagara. Niagara is coming with 26 advanced driver assistance system to make every journey safer and more comfortable. Features such as 360-degree camera and rear automatic emergency brake give extra confidence to the drivers in everyday situations. Again, many features are very unique in this segment. Niagara also delivers an outstanding driving experience. Thanks to multilink rear suspension, it offers ride comfort and handling, rarely found in pickup market. Built on Renault new Renault Group modular pickup platform, customers can choose from a complete gasoline powertrain lineup, including 4x4, 4x2, automatic transmission, manual transmission and later on, hybrid powertrain will also be available.

Comfort was also a key priority during the development. Front seats offer a perfect blend of comfort and support and driver seat is power adjustable for added convenience. On the rear, in line with Renault DNA, passengers enjoys generous space. rear seats offer best-in-class roominess with 200 millimeters of knee room and best-in-class 25 degrees rear seat angles with wide opening of rear doors for easy access. Whether driving across the city or traveling for long distances, Niagara offers the comfort comparable with SUVs.

Additionally, hidden storage behind the second row provides 36 liters of smart and secure space for tools, equipment, backpack, or luggage. It's very practical [ for a ] pickup.

Now let's talk about pickup features. At the end, pickup is made for getting the job done. And Niagara delivers, again, very strong performance. It offers best-in-class towing capacity in its category, more than 700 kilograms, more than 900 cargo volumes, more than 600 payload capacity, and a complete bed protection, thanks to full roll cover. On top of it, this full roll cover is lockable, which is also very practical.

With 233 millimeters of ground clearance and 4x4 powertrain, Niagara is ready for rough and tough roads and working conditions. To sum up, Niagara is much more than pickup. It combines working capability with everyday comfort. It brings together advanced technology and practicality, all this with eye-catching design. Niagara is built for the realities of Latin America, and we are very proud to bring this new chapter to our customers across the region.

Thank you very much, and I leave the floor to Pablo.

Thank you, Jan, and good morning to everyone. 6 years ago, we made a promise. We committed to transforming the brand while turning Santa Isabel into a hub for utility vehicles.

Niagara is not only a new pickup. It is the result of a vision that began years ago. This is why this moment is so important for us because Niagara represents much more than new vehicle. It represents the beginning of the second product offensive for Renault Group or Renault brand. And also because for the first time, Renault chose Argentina to reveal a vehicle to the world. But there is more. To tell the story of Niagara, we must talk about the story of our factory. Santa Isabel is a plant that is preparing for the future. Our ambition is clear, to position Santa Isabel as an LCV hub for the region that will export 50% of the total production at least.

To reach this ambition, Renault invested EUR 350 million to produce the first vehicle in the country based on the Renault Group modular platform. Renault Niagara will become the 35th model manufactured at Santa Isabel, a plant that has produced 3.5 million vehicles over 7 decades. Before arriving here, Niagara went through one of the most demanding validation programs with close to 800,000 kilometers of testing and more than 50,000 hours of trials. It reflects the standard we set for ourselves: durability, reliability and performance, whatever the condition.

This is a moment of joy, but also a moment of recognition, a recognition of hard work and commitment. Today, I want to thanks our teams, but also the suppliers, the dealers, and the union. None of this would be possible without this collective effort. Niagara marks the end of this first stage but this is just the beginning because the future does not simply arrive. The future is built. Ladies and gentlemen, welcome to futuREady. Welcome to Renault Niagara.

[Presentation]

We are so excited about this project that I got goosebumps. So well, as I mentioned before, this project is a result of a shared vision. So let me invite to the stage Fabrice, Laurens, also Jan to take the last photo, and thank you very much, and see you next time. Thank you.

Good morning, everyone. Welcome to Renault Group's H1 2026 Conference Call. This call is broadcast live and will be made available on our website. We are today with Renault Group's leadership team, Francois Provost, Group CEO; Duncan Minto, Group CFO; Fabrice Cambolive, Chief Growth Officer and Renault Brand CEO; Katrin Adt, Dacia CEO; and Philippe Krief, Alpine CEO. The presentation will be followed by a Q&A session.

Francois, the floor is yours.

Thank you, Florent. Hello, everyone. I am very pleased to be with you today because it is exactly 1 year after my appointment as CEO of Renault Group. I am also proud today, not only about the results we'll present to you in detail, but moreover because I feel that Renault Group is transforming, gaining speed and our futuREady midterm plan is already delivering concrete results, and it is what I will present to you now.

As a reminder, futuREady, as you know, we have 4 pillars. The first one is growth, futuREady is a growth plan. In H1 2026, our revenue growth is plus 10%, which paves the way towards growth in the year to come. Tech-REady in order to deliver competitive technology for all what matters in modern cars, Excellence-REady to be among the best for all what we can control in a more and more complex environment. And also last but not least, and this is very important to me, Trust-REady, it is the Renault way. It is our engagement to all our stakeholders, starting with our employees, but also our suppliers, our dealers, our partners.

Let's start with Growth-REady. In H1, we delivered a strong new product momentum. Our Twingo start of sales is booming, very encouraging. New Clio is also doing super well with outstanding design and the strength of our full hybrid technologies. I am also very satisfied by the start of our 4x4 hybrid solution on Dacia, Duster and Bigster, which is doing also very well. And in H1, we launched A390. But futuREady growth is also outside Europe. We launched successfully our Renault Duster in India, our Renault Boreal both in Turkey and Brazil and also our Renault Filante in South Korea.

As a consequence of this, we delivered plus 10% revenue growth. And this is for me, a big highlight of H1 performance. Renault brand plus 3% sales worldwide, second brand in Europe, plus 61% sales increase in India compared with 2025. Dacia sales minus 8%, but orders up in Europe, plus 4%. Dacia remains very strong in its core business, top 3 retail in Europe. And Dacia now is also moving forward towards electrification, already top 4 in hybrid in Europe. And for Alpine, again, a record of sales, plus 69%, 8,000 vehicles sold in H1.

As you know, for Renault Group, EV is at the core of our strategy, and this is a core axis of futuREady, and this is delivering results. Renault brand is second retail EV brand in Europe. Renault 5 is top 1 in its segment. And moreover, I would like to mention that beyond EV, we are also progressing strongly in full hybrid. In total, electrified vehicle represent 2/3 of Renault brand sales in Europe, but also 31% of Dacia sales in Europe. This is up 7 points versus H1 2025.

LCV is back. In February, when we presented to you our results, I told you that I was confident about the effect of the complete reshuffle of LCV business units that we have been proceeding. And now we start to see concrete outputs with sales plus 12%. We are top 2 in Europe. I am very proud that our new Master is leading the large van segment. And what I would like to mention to you is that I feel it is now the tipping point for electrification of LCV in Europe. LCV EV sales for Renault were up 48% H1 2026 compared with 2025. And this is important for Renault because we have the best EV LCV lineup. Our Master EV is top. We have also Kangoo EV. And I do confirm that we launch by the end of the year, our Trafic E-Tech, which will be the first EV native LCV in Europe. I consider Trafic Van E-Tech can do for electric vans what Renault 5 is already doing for passenger cars.

Mobilize Financial Services. We always underestimate the importance of MFS for Renault Group business model. MFS operates in 35 countries. MFS is key to enhance our sales and loyalty. One car out of 2 retail sales in Europe is financed by MFS. At the end of an MFS contract, 77% of the customer rebuy the Renault Group cars. As a consequence of this, MFS is also a very strong contributor to our results. For instance, EUR 753 million, which represents 50% of Renault Group operating margin. FutuREady second pillar is Tech-REady. And for this as well in H1, we delivered significant results. In terms of EV value chain, as planned, we launched our new chemistry LFP on Twingo and we do also on Megane in the new Megane we launched in H2.

We need to make a stop. Apparently, there is a technical issue, and we cannot hear you properly in the Teams. So sorry, we'll make a stop just a few moment because we have an issue on the sound in the Teams. So can you please hang on for a second, and can the IT team join us to sort this out? Thank you.

Good morning, everyone. Apologies for this technical issue. So we will have a restart. That was the formation lap, we would say. So welcome to this Renault Group H1 2026 Conference Call. This call is broadcast live and will be available in replay on the group's website.

We are today with Renault Group's leadership team, Francois Provost, Group CEO; Duncan Minto, Group CFO; Fabrice Cambolive, Chief Growth Officer and Renault Brand CEO; Katrin Adt, Dacia's CEO; and Philippe Krief, Alpine CEO. The presentation will be followed by a Q&A session. Please send me your question either by e-mail, either through the Teams, and I will read it to the management.

Thank you. Francois, the floor is yours.

Thank you, Florent. Hello, everyone, or hello again. I am very pleased to be with you today. It is exactly 1 year after my appointment as CEO of Renault Group. I am also very proud because -- not only because we will present to you good results today, but moreover because I feel that Renault Group is transforming, it's accelerating. Our futuREady new midterm plan is already giving and delivering results. It is what I will present to you now.

As you know, futuREady is 4 pillars: Growth-REady. This plan is a growth plan. And in H1, we delivered plus 10% revenue growth compared with last year. Tech-REady to be at the best level for all technologies that matters in modern automotive industry. Excellence-REady to be among the best for all what we can control in a more and more complex environment. And last but not least, Trust-REady, and this is typical Renault culture, our engagement towards our stakeholders, our employees, of course, but also our dealers, our suppliers, our partners.

Let me start with Growth-REady. In H1, we delivered a strong new product momentum. Twingo start up sales is booming. New Clio is also doing super well with outstanding design, but also, again, the success of our cutting-edge full hybrid technology E-Tech. I am also very pleased by the start of the new Smart 4x4 upgradation of Dacia on the Duster and Bigster. And in H1, we also start the sales of Alpine A390. FutuREady is also about growth outside Europe. We launched successfully our new Duster in India, our new Boreal in Turkey and Brazil and our new Renault Filante in South Korea.

As a result of all of this, we delivered plus 10% revenue growth compared with H1 2025. This is one of the main highlights of today's results presentation. For Renault brand plus 3% sales, Renault brand second brand in Europe, plus 61% sales in India. Dacia sales down minus 8%, but plus 4% orders compared with last year. Dacia remains very strong in its business model, top 3 retail in Europe. And Dacia is also now moving towards electrification, already top 4 passenger car hybrid in Europe. For Alpine, Alpine delivers a new record of sales with more than 8,000 vehicles sold in H1.

EV is a core of Renault Group's strategy and futuREady. Again, we delivered strong results in EV. Renault brand is now the #2 EV retail brand in Europe. Renault 5 leads its segment. And as I said before, Twingo is off to an outstanding start. Beyond full EV, I would like also again to mention the success of our full hybrid solution. Together, EV, full hybrid E-Tech, electrified vehicles represent 2/3 of Renault brand sales in Europe and also 31% of Dacia sales, up 7 points versus H1 2025.

LCV is back. When I presented our results in Feb, I told you that the complete reshuffle of LCV business unit was done and that I was optimistic about the output. We see at the end of H1 2026, the concrete first output with sales up 12%. We are second in Europe for LCV. I am very proud to have the new Master leading large van segment. But what I would like to mention to you today is I feel we reached a tipping point for electrification in LCV. Our sales for LCV EV were up 48% compared with H1 2025. And we have, as Renault Group, the best EV lineup for LCV, Master EV outstanding performance. We have also our Kangoo EV. And I do confirm that by the end of the year, we will launch our new Trafic E-Tech, the first native EV LCV in Europe with SDV, and we are very confident with this car. I am convinced Trafic Van E-Tech can do for electric vans what Renault 5 is already doing for passenger cars.

Mobilize Financial Services, MFS. We always underestimate the importance of MFS in our business model, and it is why I want to insist on this morning. MFS operates in 35 countries. In Europe, 1 car out of 2 sold to retail customer is financed through MFS. And moreover, at the end of financing contract by MFS, 77% of the customer renew with Renault Group cars. This is a huge tool to sell car and to enhance royalty. And with all of this, MFS delivered also a very strong and stable financial performance with for H1 alone, EUR 753 million in profitability, representing 50% of group operating margin.

FutuREady second pillar is Tech-REady. And in H1, we passed again significant milestone. In terms of EV value chain, as planned, we launched our second chemistry, LFP, on Twingo, and it will be the case also on new Megane, we will launch in H2. We are among the first worldwide OEM to have wireless battery management system. We launched our new e-machine 6-in-1 on Twingo as planned. And moreover, in terms of battery, as you know, we don't want to be battery makers. We rely on our suppliers, but we want to dig into technology and our lab on battery is now fully operational at the end of H1 2026.

In terms of SDV, I do confirm that we will launch in Europe the first European SDV in Trafic Van E-Tech by the end of the year. And for intelligent car, we introduced Gemini in our openR link vehicles. A lot of people doubt that European industry will not match China pace in automotive technology at Renault Group with futuREady, we are proving that we can.

Third pillar is about excellence in operations. Development time, 100% of the new project now in Renault will be developed under the 2-year development time scheme. And this is what we structured in H1. In terms of cost target, I do confirm we are on track with EUR 400 target a year, which is outstanding performance by procurement and all upstream functions when you consider headwinds, especially in terms of raw materials. In terms of resilience as well, we granted significant milestone in H1.

For instance, thanks to our digital twin for manufacturing and supply chain, we could mitigate within 48 hours the supply chain issues raised by Middle East conflict. And with AI, we are capable to get a lot of quick proposals and scenarios to mitigate this. But I am also very pleased to see the speed on which the speed is moving for dual sourcing. Dual sourcing is completely new in Renault, completely new in automotive, I would say. It is one of the pillar of futuREady to have dual sourcing on targeted parts and technologies. This is already fully implemented in each new project we start now as from H1 2026. And for manufacturing, as you know, introducing humanoid robots is a key action of futuREady. This is already operational in Douai in H1 2026.

Let's move to Trust-REady. This is very important to me. And after the release of futuREady, I took specific attention to the cascading and endorsement by all the teams, especially the 9,000 managers. So we did a V-shaped process. This is cascading first, and this is team contribution later on. And to check the good engagement of our teams, we did a survey with our 9,000 managers, and we got good results with above 80% of our managers fully comfortable with the plan, aligned with strategy, capable to cascade, capable to define the contribution of its team to the futuREady and confident towards futuREady.

We also continue to speed up organization transformation. I remind you 4 months to define the new organization of engineering end of last year, 6 months to structure the transformation plan of engineering. This engineering transformation is an ambition to show that a European OEM can develop in Europe with European suppliers at the best level in the world in terms of speed, technology, cost competitiveness. This transformation is now ready for implementation, and I would like to thank especially our unions because they were very demanding, but supporting, and we got 75% favorable opinion of union reps towards our R&D transformation.

In H1, we also grant significant social agreements in order to secure the competitiveness of very important sourcing worldwide. I remind you that we intend to decrease manufacturing costs by 20% in future already. We grant social agreements in Spain, Morocco, Slovenia and South America. And last but not least, I want to continue to simplify this company. We decided -- I decided significant changes with General Secretary appointment, and I decided also to manage directly product organization.

Trust-REady is also about partnership. We delivered significant growth, plus 164% growth compared with H1 2025, plus 50%, excluding scope effect. I would like to mention the very successful start of our project with Geely in Brazil with a very encouraging start of Geely brand in Brazil, for instance, plus 35% total sales of Renault do Brasil with both brands Renault and Geely. I would like also to remind you that we launched 2 new defense partnerships with Thales in the course of H1.

With all of this, we delivered good results in H1, consistent with our guidance, 5.2% operating margin. Automotive free cash flow over EUR 600 million. But beyond numbers, I would like today to thank all the teams, all our employees. I would like to thank also our suppliers, our dealers, our partners because this is a result of the efforts of all the team. And as you can understand, this give us a lot of confidence about the robustness of futuREady moving forward.

And I would like now to hand over to Duncan to present in detail our H1 financial results. Duncan?

Thank you, Francois. Hello, everyone, and thank you very much for joining the call this morning. So as you said, let's go through a bit more of the detail on the financial results. And maybe I'll just take the zapper, if I could, possibly. Thanks. Perfect.

So let's start with group revenue. Renault Group enjoyed a 9.5% revenue growth to EUR 30 billion in the first half of 2026. At constant exchange rates, that's an increase of 10.3% and I'll highlight it was driven both by Automotive and MFS. Automotive revenue was up 9.3% to EUR 26.8 billion. Since the beginning of the year, we've included the mobility service contribution into this. In terms of Financial Services, MFS increased by 11% to EUR 3.4 billion, mainly driven by the increased activity level.

So drilling into the Automotive revenue, it included in the first part on the left-hand side, 0.9 points of negative exchange rate, mainly related to devaluation of the Turkish lira, Argentinian peso and the pound sterling. At constant exchange rates, it increased by 10.2%. The volume effect was slightly positive at 0.2 points. The minus 0.4% decrease in registrations was offset by a lower destocking within the dealership network in H1 '26 compared to H1 '25. So group registrations, as I said, slightly declined by 0.4% this half, totaling 1,165,000 units. Renault brand delivered a solid growth in H1 '26 with sales up 2.6%, supported by continued electrification momentum stronger LCV performance, as Francois just said, and renewed growth outside Europe.

Dacia showed commercial resilience in H1 '26, maintaining strong retail fundamentals, best value positioning despite lower volumes while accelerating its shift towards hybrid powertrains. All in all, H2 Dacia sales are expected flat versus H2 '25, with Q3 down and Q4 up. Alpine achieved a record first half with sales up 69%, driven by the success of A290, continued momentum of A110 and the first deliveries of the A390.

Renault Group is pursuing a strategy focused on value and quality of sales. We favor retail sales to protect residual values. Our retail channel mix continued to grow and represented 60% of our PC sales in the 5 main European markets, up 3.8 points versus H1 last year. This is 17.7 points above the market average. Meanwhile, we reduced by 1.2 points our short-term rental mix with sales down 12% in a market that was up 12%.

Looking at competition, it's worth highlighting that Chinese peers are almost doubling their sales in the short-term rental market, and one of our main competitors grew 24% to reach more than 1/4 of market share in this channel. With this approach of quality of sales and focus on value, we meaningfully outperformed the market in terms of residual values from 4 to 13 points above our peers' average in Europe, depending on brands.

Dacia is best-in-class in residual value management with its best value for money strategy, its focus on retail by adding more technology and perceived quality, underpinning a strict design to cost execution. Focusing on EV, Renault outperformed Chinese competitors by 7 points on average. This advantage has been stable over time. As a reminder, maintaining high residual value is part of the full life cycle management. It's embedded in our vehicles as soon as the development phase. It allows competitive and attractive leasing offers by lowering depreciation to be financed and enabling more competitive monthly rates without sacrificing margin.

Before coming back to the revenue bridge, just to highlight on stock. The slight decrease in registration was offset by a lower destocking within the dealer network in first half '26 compared to the previous period. As of June 30, total inventories of new vehicles stood at 546,000 vehicles. This level of inventories is supported by a 6% growth of the order intake, resulting in an order book of 2.1 months of forward sales at the end of June 2026. It will enable the group to smoothly operate during H2, a semester traditionally stronger in terms of registrations.

In terms of outlook, we expect the total inventories at the end of the year will remain in the bracket of 525,000 to 550,000 corridor, which is a healthy level of inventories to operate. The sales to partner effect was a strong positive in the first half, mainly driven by the performance of partner programs. You should also keep in mind 2 changes of scope, the integration of RNAIPL onto the consolidation perimeter since August 1, 2025, for a EUR 380 million and the ramp-up of distribution of Geely vehicles in Brazil. Local production through our JV is set to begin this summer.

Now let's review price, product mix and geographical mix effects. The price effect was positive at 0.9 points, helping to compensate FX, partly offset by price pressure in Europe. This price pressure is expected to continue throughout the year. Product mix was also a solid positive at 3.2 points, driven by the success of EVs, the transition phase of Clio 5 to Clio 6 and to some extent, Master. Product should remain a strong contributor in H2. Geographical mix was negative at minus 0.7 points, mainly attributed to increased sales outside Europe, notably in India and Turkey.

Next, let's turn to the operating margin. In this half, we posted an operating margin of EUR 1.567 billion, representing 5.2% of revenue. The Automotive segment operating margin stood at EUR 814 million or 3% of revenue. Mobilize Financial Services operating profit reached EUR 753 million. So a little deep dive into the group's operating margin evolution, starting with currencies, which had a negative impact of EUR 117 million as on the revenue due to the Turkish lira, U.K. pound and the Argentinian peso. The Turkish lira positive impact on production costs was offset by the increase of the exposure to group sales in Turkey. Volume effects contributed to EUR 95 million, notably thanks to the increase to sales to partners. Volume effect should be slightly positive for the full year 2026.

Price, mix and enrichment effect stood at minus EUR 425 million, reflecting the increase of regulatory costs, commercial pressure in Europe, a higher mix of EV sales and increased international sales, notably in India. Costs were reduced by EUR 184 million, thanks to an efficient cost management program, strong purchasing performance and lower warranty costs compared to last year, which more than offset the raw material inflation. COGS reduction efforts are paying off and are in line with futuREady strategy.

As a reminder, the group aims to reduce variable costs per vehicle by around EUR 400 per year on average over the medium term. As previously commented, we expect higher headwinds on raw materials in H2. That's why cost reduction will remain a key priority for the remainder of the year to compensate this effect. R&D effect was positive at EUR 87 million, mainly due to the impact of capitalizing SDV expenses from March 1 this year. SG&A impacted by minus EUR 39 million and the others was a plus EUR 44 million, thanks to the strong performance of the aftersales business.

So let's have a look at Mobilize Financial Services, which generated EUR 11.6 billion of new financing, up 4.6%, thanks to the growth in number of financing contracts and the average financed amount. Average performing assets amounted to EUR 61.8 billion, up EUR 2.9 billion versus H1 '25, driven mainly by a strong commercial activity on the customer financing business since the end of the electronic component shortage in '23.

Net banking income as a percentage of average performing assets improved by 0.2 points, highlighting the robust margin policy of the bank. Cost of risk at 0.47% slightly increased against last year due to a macroeconomic environment becoming more challenging in some countries. Operating costs in percentage of average performing assets were almost stable. And overall, Mobilize Financial Services posted an operating profit of EUR 753 million, up EUR 85 million year-on-year.

Moving to key items from our group P&L below the operating margin line. You'll see other operating income and expenses were negative at minus EUR 441 million, including EUR 313 million of restructuring costs. As a reminder, the first half 2025 so other operating income and expenses amounted to minus EUR 10.1 billion and included minus EUR 9.3 billion of noncash loss linked to the change of accounting treatment of Renault Group's stake in Nissan as of June 30, 2025. After considering other operating income and expenses, the group's operating income stood at EUR 1.126 billion for the first half.

Net financial income and expenses amounted to EUR 126 million compared to minus EUR 93 million in the first half of the previous period. This variation is mostly explained by the negative impact of hyperinflation in Argentina and noncash items. The contribution of associated companies was neutral compared to the minus EUR 2.3 billion in the first half of '25, almost solely explained by at that time by Nissan's negative contribution. As a reminder, since June 30, 2025, any changes in the fair value of the stake at Nissan's based on Nissan's stock price are directly recognized in equity with no impact on Renault Group's net income. Lastly, current and deferred taxes represented a charge of EUR 279 million compared to a charge of EUR 324 million in the first half of '25. The effective tax rate in this half stood at 28%. Bottom line, net income stood at EUR 721 million, and net income group share was EUR 705 million or EUR 2.39 per share.

So turning to free cash flow generation. The cash flow of EUR 2.2 billion included EUR 250 million of dividend from MFS versus EUR 150 million dividend in the first half of 2025. Net CapEx amounted for EUR 648 million. Disposals are in line compared to the first half at EUR 40 million. Capitalized R&D increased by around EUR 90 million, mainly explained, as I said, by the capitalization of SDV from March 1. Restructuring expenses stood at EUR 200 million, and the change in working capital requirement was a headwind of EUR 226 million. Within those EUR 226 million, it included a positive EUR 300 million of down payments from partners for future vehicle programs. All in all, Renault Group generated EUR 653 million of free cash flow in the first half of 2026.

The automotive net cash financial position stood at EUR 6.6 billion on June 30, '26 compared to EUR 7.3 billion at the end of December '25. This evolution was mostly driven by the strong free cash flow, dividends paid to shareholders for EUR 655 million and net financial investments of EUR 605 million, mainly related to the full consolidation impact of Flexis through the acquisition of both shares and loans.

Francois, I'll now pass back to you to comment on the conclusion and outlook.

Thank you. Thank you, Duncan. Let me now turn to the outlook of the upcoming months. First of all, our H1 results provide clear confirmation that our strategic model is working. Even in a complex environment, we remain firmly on track to deliver our full year 2026 guidance at circa 5.5% operating margin with automotive free cash flow, circa EUR 1 billion. Again, in H2, the main enabler will be about product. And we launched again a new product in H2. It is what I would like to mention as a conclusion of our presentation. For Renault brand, we have the new Megane E-Tech Electric, fully upgraded, higher autonomy over 600 kilometer, richer in terms of digital experience and very nice new design.

I mentioned before the potential I see -- I foresee for the Trafic Van E-Tech with 800 volt with amazing SDV capabilities for specific use case to B2B customers. But also, again, it's not only about Europe, it's about international growth with our half-ton pickup Niagara that we launch in Latin America. For Dacia, very, very big events in H2. And I would like first to mention the new hybrid Sandero, which for me will be a strong, strong enabler for Dacia sales. It means as well that now Dacia has a full hybrid in all models, and this is very important for Dacia. We launched a new spring, new EV show again that Dacia is moving firmly towards electrification. And also the new Striker. The presentation, the reveal was very promising. So we are very confident with the potential of Striker. And with all of this, again, I confirm that we are very confident not only for 2026, but also for our futuREady midterm plan moving forward.

And I would like again to thank all the teams, all the efforts of our teams, our partners, which allow us to show you today those results. Florent, Q&A?

Yes, Francois. So let's start the Q&A. Again, apologies for the technical issue. We will -- so I will read the questions that I received from numerous analysts through e-mail.

The first question will come from Thomas Besson from Kepler Cheuvreux. Could you please comment on the positive adjusted EBIT drivers in H2 that should help you more than offsetting higher raw material, energy, supplier compensation costs? And likely sustained negative pricing environment in Europe? And should we assume continued tailwinds from R&D and warranty? So this is the first question. And the second question is about MFS. Congratulations on the further progress and contribution to earnings. Could you please discuss the evolution of the cost of risk and of residual values in H1 and give us indication on the prospects of its dividends to autos potentially in H2, but also in 2027, taking into account its capital requirements as it continues to grow as an activity.

Okay. Thank you, Thomas. In terms of H2 walk down, so it was all about cost elements, wasn't it?

Yes it was.

So yes, cost will continue to be a strong driver in H2. If you remember, we had some warranty provisions last year. So year-on-year, we will see lower warranty cost in H2. But we will also continue to keep the pressure on maintaining our fixed costs flat. And obviously, the strong dynamic of variable costs is continuing and even accelerating because we have that impact of raw materials, which will be stronger in H2 as we called out.

I think you also asked about -- there was a statement about the negative pricing environment. I mean, I think we called that out in the speech, so we said that, that would continue to be a factor of a headwind in H2. In terms of MFS, so cost of risk, we had a slight increase in some Southern American countries, which is -- but I mean, it's not really moving the needle massively. And in terms of capacity to pay out dividends in the full year guidance we've given at the beginning of the year, we said that MFS would pay EUR 350 million of dividends this year, which EUR 250 million was in the first half. And I'm fully comfortable with MFS' capital structure to be able to pay the remaining in the second half.

Maybe to complement. Regarding residual value, I do confirm that we continue to have a very strict discipline priority is value versus volume. We are very keen to monitor carefully our residual value in all our markets. And I really think and confirm that this is a very strong enabler for robustness of our performance, especially in Europe. When we see the difference between our residual value, it is true for Renault brand. It is true also for Dacia. Duncan showed this before. Our residual value are much better than our competitors. Our mix into retail is much higher and safer. And please understand that this is not one day. This is the case for quite a long time. We continue on this basis. This is at the core of futuREady, and this is a very strong enabler for our business model in Europe.

On the dividend from MFS, I also remind that we gave a guidance towards around EUR 500 million per year on average through the midterm plan in dividend paid out to Auto. So we stick to that guidance.

The next question comes from Jose Asumendi from JPMorgan. So Jose is interested to know about the pricing power trends by region in H2 as well as the product mix driven by the product pipeline to expect in the second half. Pricing trends in Europe and other regions in H2?

As Francois said, I think we are not chasing volume at the expense of pricing discipline. For me, what I think is that our product attractiveness and the disciplined, very good channel mix management will enable us to maintain pricing stability and strong residual values in a very volatile market environment. I would like to give you 2 examples. For instance, we anticipate a high level of volumes of short-term rental in the market.

In this context, we are decreasing our short-term rental volumes by 20%, 10,000 units when the market will grow by 15%. We are protecting like that our residual value. And at the same moment, we are pushing our product attractiveness. And if I take, for instance, the example of Twingo, I think Twingo is rolling out of the garage at the same pace of Renault 5. It means we are focusing our product and our volumes on our product strategy. Look, I think with that, we have the means to do what we did in the last years, but what we are doing now for the future to maintain a very stable pricing policy and very high residual value. That's our strategy.

Thank you, Fabrice. And so the next -- the questions from Jose also tied to CapEx, what CapEx in H2 against H1? And what is our working capital assumption on a full year basis. He's also asking about cost saving or efficiency initiatives in full year '26 and what are the biggest action to reduce our costs?

Okay. And I think we didn't answer on the product mix in H2 as well, which I think we called out in the speech that said would actually continue to be a positive boost certainly on the revenue. And obviously, the mix is slightly negative. But the order book is very strong as well with 2.1 months of forward-looking sales. So on CapEx for H2, H1 CapEx and capitalized R&D was very similar to last year's level and H2 is due to the basic dynamic of our product launches. H2 was higher last year. So we had like EUR 1.6 billion in H2 last year compared to EUR 1.2 billion in the first half of the year.

On top of that, we've also consolidated Flexis now, and we're in the final phases of rolling out Flexis. So Flexis will have an increase. So we expect H2 CapEx and capitalized R&D to be slightly higher than previous year level. Working capital should remain negative full year. And I think I've already commented on the cost savings. Obviously, the biggest contribution to that is purchasing, as you called out, in terms of performance. But that doesn't mean that we are not working across the board in all functions to help compensate the increase in raw materials in H2.

Yes. Maybe on cost reduction beyond the daily activity of discussion with our suppliers, I would like to mention that we start to see in H1, and we see in H2 as well, the output and the results on the way we manage our partnership with suppliers in terms of working more closely upstream in order to deliver breakthrough both in variable costs, but also in terms of entry ticket development costs with suppliers. And this is not an intention. This is already delivering results. This is implemented in all our projects.

We reached, for instance, over minus 40% decrease of entry tickets with our suppliers in each and any new project or life cycle in our product compared with the past. So all of this start to deliver concrete results. And this is also why we were and we are capable to mitigate that much the strong increase of raw materials that we see in the market this year. So again, this is about futuREady, not only to do the traditional peeling work with suppliers, but to see and to break through the way to engage with our suppliers. And this is not a dream. This already deliver concrete results.

Thank you, Francois. And the next questions will come from Michael Foundoukidis from ODDO BHF. So the first one from Michael is to have the key drivers in the margin bridge in H2 versus H1. What are the tailwinds and headwinds? We spoke partially about some. And that's the first one, and I will follow up with the next upcoming ones.

Let's go once again through the H2 walk down. So as we called that, the volume should remain positive throughout the year. We said that mix price enrichment costs, obviously, a part of this was the enrichment cost coming from Euro 6e-bis, which started on Jan 1. So it's rolling throughout the year. And we said that we expect pricing pressure to remain even as Fabrice said, "We're not necessarily the leaders in that field, but obviously, we're impacted in some way. So that will continue to be a negative part in the second half of the year."

R&D around neutral full year because we are actually increasing the expenditure in the second half, as I already called out on the cash front. SG&A and others, I don't think will be a particular mover. And I think MFS will continue to provide a solid performance. So it's really the cost factors, which are key. And obviously, we'll keep our dynamic on the growth of the business. We had a sorry, 10% revenue increase in the first half. We'll have a strong Q3 ahead of us. And I'd just remind you that we have the comparison base on the partner business of RNAIPL, which we consolidated from 1st of August last year. So that will make Q4 a little tougher on a comparison basis, but still post futuREady, we called out mid-single digits over the cycle. So we're comfortably within that.

Thank you. And maybe related to H2, Duncan, can you elaborate on the EUR 300 million partners down payments that we received in H1? And how is that expected to unwind in H2?

Yes. So EUR 653 million of positive free cash flow in H1. So if you take out the EUR 300 million, that means we would have done sort of EUR 353 million as a first base for the first half of the year. And so we will do a slight improvement on that, obviously, to be able to be within our guidance range of EUR 1 billion full year. But the payments received in H1 will be expensed in H2.

Thank you. And maybe the last question from Michael is that could we share our view on the nonauto opportunities, speaking about defense, humanoid, we touched a bit on the matter in the presentation.

We consider 0 in futuREady. So this is a pure opportunity. We do not rely on this to mitigate overcapacities, fixed costs and so no, no. Everything is done stand-alone with our core business. So we see opportunities in defense. We released 2 new projects with Thales. One is mixing the know-how of Thales in management system and the car. And as Renault, we integrate all Thales system inside the car to allow the efficiency of command towards the troops. So this is something which is for military purpose, but also for instance, for firemen purpose.

And the second project with Thales is a small drone for which we develop together with Thales, we produce and Thales will be in charge of selling this because, again, we are not becoming expert in defense industry, we contribute with our values. So I'm confident it will grow. But again, for you, the most important to know is that we do not rely on this to deliver our results. We do not need this to fill our plants because we have no idle capacity. We have no overcapacity. We have no fixed cost issue. We continue to optimize and work with a strict discipline.

Thank you, Francois. Maybe, Duncan, can you also elaborate on the raw mat impact that we expect into moving into H2. I remind that we said around EUR 600 million negative of raw mats and inflation for the full year. So what have we seen in H1? And what should we expect moving into H2 on that front?

You've helped me answer the question. So yes, guidance was EUR 600 million full year raw mats and inflation altogether. And if you look across the bridge, we had about EUR 200 million in the first half. So it's about twice the impact in the second half of the year.

Yes. What I can complement, when we have a spike in raw materials, we can find some ways with suppliers to mitigate. But what we see today is that the increase of raw materials is not just a spike. This is a trend. So we have also to be fair with our suppliers and to take this into account. So it's why in H2, we have more impact because we have also to be fair with the suppliers. Of course, we do not accept everything. We work together to mitigate.

And again, our procurement team with all upstream functions are able to find other ways with the suppliers to mitigate this, but the impact in H2 is higher, as mentioned by Duncan. My view is, compared with what we organized for 2027, raw mat is the main offender. For all the rest, because you ask us every time, there is more competitors, there is pricing pressure and so on. But all of this, we knew. So there is no surprise. For raw mat, it's true that in terms of trend, there is -- it seems a stable increase of raw mat in our industry for the months moving forward.

Thank you. And the next questions will come from Christian Frenes from Goldman Sachs. So how are the Chinese OEMs affecting Renault's pricing power and segment share in Europe, Brazil and Turkey? And how competitive is Renault's cost base in markets where it competes with Chinese OEMs, including Brazil through the Geely joint venture? What have we learned? And what implications does the JV with Geely in Brazil have for operations in Europe?

My main answer is that there is no surprise. Each time you ask, there is new competitors, there is pricing pressure and so on. But what we see in the market today is not a surprise. This is exactly what futuREady is about, and we are ready for this. And it's why I insist so much about being as competitive as those new competitors in Europe, not only in terms of cost, in terms of technology and engineering. And on the other side, I think we have our advantage. We are better in terms of brand management, design, product, manufacturing. So this is exactly what futuREady is about.

Regarding your second question, we do not learn much from the Brazil case because we know exactly what are the strong points of our Chinese competitors. But for sure, this cooperation with Geely in Brazil is very successful because Geely is a strategic partner. We have now a strong intimacy. We know how to work. And what we expected from this collaboration is to have a new brand, which is a good brand, good products and all the strength of the ecosystem of Renault do Brazil. And this is unique in Brazil, and it is why it's working very well.

The car of Geely we sell in Brazil are already in the top 3 of each segment. And this is because of Renault ecosystem in Brazil. And we start on time the local production in Curitiba of Geely EX5 as from this summer. So this is, yes, very encouraging in order to mitigate for Renault the strong push of Chinese industry in Brazil and to make it as a strong opportunity to increase our presence. And as I mentioned before, Renault do Brasil volume increase in H1 is plus 35% compared with last year.

Thank you, Francois. And the question also from Christian is on the LCV. Can you update us on your outlook for the European LCV market? Do you anticipate increased Chinese competition in this segment? And how significant a profit opportunity is the LCV market for Renault?

I do not foresee Chinese competitors for the short term. The European market is very low for LCV, unfortunately, only plus 2%, but plus 2% compared with a strong decrease last year. And what we assume to manage 2027 is that this market will not recover further. This is our assumption. On LCV opportunity in the future, maybe, Fabrice, you want to complement?

I think on LCV for the future, the huge opportunity we will have until the end of the year is the launch of the new Trafic E-Tech. We will be one of the first runner with a totally original genuine offer in terms of EV for the LCV market. And I think that there is an unmet need in this part of the market. We will be the first to cover. Our opportunity, of course, is to play this new asset, of course, in full complementarity with the success of the master today.

Thank you, Fabrice. The next questions will come from Stuart Pearson from Oxcap Analytics. We know Renault has been very disciplined on channel mix. So can you provide a bit more color regarding the negative price/mix enrichment component in the bridge? And how do you see this develop into H2? So we answered for H2 and 2027 is also asked by Stuart. I don't know, Duncan, if you want to say a word.

Stuart, this is '26 call. So I think we'll stick with '26 for the moment. So price was positive on the revenue, but as you saw, was mainly for offsetting of FX headwinds that we had. In terms of mix, you have mix and enrichment. So enrichment was the first block, which is the Euro 6e-bis was additional cost into several engines in our sort of B, B+ segments, both across Renault brand and Dacia brand, for which it was very difficult to pass on to consumers because there was very little gain for consumer in that and it was just to answer regulatory requirements.

The mix, then you have both increasing EV mix, which you know is at least for some segments, dilutive still at this point in time and also international as international grows, we don't necessarily have the same profitability in all regions around the world. So there was a slight negative down from that as well. But maybe just to paraphrase Francois, this is not a surprise. This is something that we knew was happening in the year, and we've called out for a long time.

Thank you, Duncan. Maybe a question for you, Francois. Can you share any updates regarding potential EU tariffs on Chinese PHEVs? Do you believe this would be effective at slowing Chinese competition?

No, I cannot comment. I have no specific information. As you know, as Renault Group, we recommend EU to move into 3 directions. The first one is confirm electrification, but put enough flexibility in order not to penalize the European players with crazy penalties, easy to do, not yet decided.

The second one is a freeze for 10 years for any new regulation. As Renault, we do not recommend to decontent regulation. You take R5 for electric, you take Clio for full hybrid, freeze regulation for 10 years in order to allow European citizen to get access to new cars on a more affordable way because you know Europe is a unique place in the world where we cannot recover the market and the market continues to decline, unfortunately.

And third, to have a deal between China and Europe, which for us, a good solution is to apply what China did so well 30 years ago, meaning Chinese makers willing to invest on the long run in Europe as to invest deeply in the value chain, not only to have a screw plant, but really to invest deeply in the value chain to contribute in terms of employment, in terms of technology, in terms of supplier footprint.

I think it would be the best way. But for sure, EU need to find a way for an orderly manner to have new competitors in Europe. Otherwise, the European industry will be heavily impacted. As far as Renault is concerned, in futuREady, we consider the cynical scenario. It is why we said we'll be the European automotive OEM capable to show that in Europe, we can match the pace of any competitor in the world in terms of competitiveness. And on top of this, we'll enhance what is our strong asset, product, design, brand. As Renault, we like to do nice cars. We like to do -- to put nice features in our cars, and this is what we want to show and the creativity we want to show to our customers in Europe. This is our strategy. And in futuREady, we take a quite cynical assumption about evolution of the EU playbook.

Thank you, Francois. And the last question from Stuart is more around the BEVs. So we see that we have stronger residual values than most peers on the BEVs. And could this help the pricing power to resist to Chinese competition? And I think he is asking how close the BEV EBIT margins are now getting to ICE cars.

Regarding profitability of EV, I help Duncan. So we'll not comment further. I repeat what I already said. First, the new car we launch, R5, R4 and it will be also the case for the Twingo are delivering profit, are more profitable than previous car. I referred to Megane and Scenic, which shows that the momentum of competitiveness and cost reduction is good because normally a smaller car are less profitable than bigger car.

The second point, a management principle I have within futuREady is that when we decide a new car today, the profitability of electric should be the same as full hybrid. And this is the way we manage ourselves within futuREady and the new model will launch in the future. And when we speak at Renault about profitability is without taking care of any benefit of CAFE, is the profitability of the car itself. Those are the 2 guiding principles of futuREady.

Thank you, Francois. And so a question from Christoph Laskawi from Deutsche Bank. Christoph is asking about the volume trends to expect in the LCV moving into H2? And what have been the margins in LCVs in H1? Will H2 be above 10% again? So more details about LCV, a topic also addressed by Pushkar, who thought that the volumes sales were rather weak in Q2, especially in June. So he wants to know what is the trend moving forward?

Profitability on LCV will not answer. Trend of volume for LCV in H2, Fabrice, if you want to.

I think our volume LCV in H2 will be slightly positive in a market which will be certainly down. That's our forecast. And I think our volumes are once again sustained by the ramp-up now and the full coverage of Master. Duncan, no surprise with -- and by the way, we will have a market -- share of market increase in this environment. But once again, not at the expense of our pricing discipline.

Thank you, Fabrice. And the next question comes from Henning Cosman from Barclays. So Henning is -- wants to know broadly how much headwind should we expect moving into H2 as regards price/mix enrichment? Is that around 50% of H1 headwind? And also on the costs, Henning is asking if the net of inflation and raw mats will be twice H1? And are the semiconductors effects accounted for into the raw mats? What are the gross savings against the around EUR 1 billion implied by the EUR 400 savings per car per year?

Henning, I hope Florent noted then all of those questions because I was -- I think I got the first one. Price/mix enrichment should be a similar amount in H2 than we've seen in H1. I hope slightly less, but roughly that. Costs net of raw materials, that was the second one. Twice H1 is a reasonable assumption. And then the third one was?

Well, what are the gross savings? Because we -- basically, the question is where do we see the EUR 400 per unit savings in the bridge, I guess?

Yes, in the bridge, so you see both variable costs and fixed costs put together. So gross savings when we talk about EUR 400 per vehicle on the variable side, that's what we should take into account.

There were questions about memories.

Yes.

So I confirm we have the supply visibility for 2026 and the other cost is mitigated through additional cost reduction by purchasing team.

Thank you, both. Then the next questions from Henning are more around margin. Around 5.5% full year margin implies high 5s in H2. So are we happy with that? Or is that the bottom end of the 5.3%, 5.7% range more likely now? And then the second question is on the free cash flow. What are the drivers for the free cash flow in H2, knowing that, as we mentioned, the EUR 300 million down payments will reverse into H2 and that we will only receive EUR 100 million from MFS dividend to get to around EUR 1 billion free cash flow in full year '26.

Yes. So thank you, Henning, for the follow-up questions. So yes, around 5.5% is technically between 5.3% and 5.7% and more likely to be in the lower half than in the upper half, considering the tough environment we have out there. So overall, a slight improvement in H2 versus H1 in terms of margin. Previously, if we look back over the previous years, we've had maybe 40, 50 bps uptick. But because of all the raw material pressure we've called out, I don't think the gap will be so big this year.

In terms of free cash flow, so we will obviously continue to generate a strong EBIT of that, a slight increase in the second half compared to the first half. MFS dividend, I said I was comfortable with the capacity to pay out in H2. We've talked about slightly higher investment and restructuring costs will continue. But yes, I don't see any reason why we have a slightly stronger free cash flow in the second half, the first -- versus the first. Obviously, I'm calling out taking the EUR 300 million of supplier upfront payments, which I called to say they would cash out in the second half, which is part of the CapEx increase we're talking about.

Thank you. And so 2 other questions. One from Pushkar on the R&D capitalization benefit in the EBIT bridge, how much was it? And what drove it? Is it a onetime effect? And also the question on the capacity coming from Horst, this one. Given that European market leader, Volkswagen is cutting so much capacity, does it increase the pressure on Renault to reduce capacity further?

We have no need to reduce capacity. I mean the capacity utilization is above 80%. So we have no intention nor project to reduce further. What we focus on is secure the competitiveness of our manufacturing footprint. And it's why in futuREady, we released minus 20%. It's why we took the initiative to negotiate with unions that what we did in Spain, for instance, a global scheme. It is about labor cost, but it is also about flexibility terms and conditions in order to secure the long-term competitiveness. It means the long-term employment of our people. It means the long-term strength of our supplier ecosystems. And this is what I focus on. Secure the competitiveness for growth, not restructuring further because of lack of competitiveness or lack of volume or lack of profit. This is what futuREady is about.

And on the R&D capitalization, I think it was Pushkar's question. So it's just an application of IFRS rules. So we -- the impact was just a little bit less than EUR 90 million. We started capitalizing from the 1st of March, which really coincided with the fact 2 factors at the same time.

First of all, we finished the transaction on Flexis. So we had clear visibility and control of that project and clear visibility of the product coming out in the second half of the year. It's launched -- so we will see the first volume starting in December. So that project plus the confirmation of the milestone on the C-segment vehicles, in which SDV will also go and those being profitable from an NPV point of view, we apply the IFRS rule and we capitalize them.

I would like to remind you that a large part has already gone through the P&L in cost. So it's only the rest of the development that remains. It will remain -- we will capitalize full second half of the year. And I think the capitalization rate will probably peak at that point in time and go down in '27. And it's just basically the phase of development that we're in right now in terms of the number of projects that are in the latter stages of development.

Thank you, Duncan. This was the last question. I think we went through all of it. If you have some follow-up questions, please be in touch with the Investor Relations team. We'll be happy to help you guys, and have a good day. Thank you.

Thank you all.

Thank you.

Ladies and gentlemen, and dear shareholders, we are delighted to welcome you to this very important annual event, which is our Annual General Meeting. Thank you so much for attending in spite of this beautiful weather that we are having here.

So joining me here today are Mr. François Provos, the Chief Executive Officer of the Renault Group; Mr. Duncan Minto, the Chief Financial Officer; and Ms. Quitterie De Pelleport, our Chief Legal Officer. We are also delighted to have in the front rows here, the members of the Board of Directors, the members of the leadership team, our statutory auditors and the 2 shareholder representatives who will be acting as scrutineers. I'd also like to inform you that we have legal officers who are present.

I'd now like to give you some legal information regarding the conduct of this meeting. Let me remind you that the notice convening this meeting was published in the Bulletin des Annonces Légales Obligatoires and in the legal gazette on the 25th of March 2026. Registered shareholders, holders of FCPE units and the statutory auditors were invited by post or by e-mail. Now I shall turn now to the composition of the meetings bureau. In my capacity as the Chairman of the Board of Directors, I shall be chairing this meeting and the rules of scrutineer will be filled by the French state, represented by Mr. Pierre Jenan and the company Amundi, which is represented by Mr. Frederic [indiscernible]. And the role of Secretary of the meeting will be fulfilled by Ms. Quitterie De Pelleport. The bureau is thus constituted. All necessary legal documents have been filed with the Board in accordance with the legal provisions and made available to shareholders from the date of the notice convening this meeting. These documents are deemed to be in order by the bureau.

The notice of meeting comprising the agenda and the text of the resolutions as well as all the documentation that is required for this meeting have been made available on our group's website. I have received confirmation that the meeting comprising more than 1/4 of the shares representing the share capital and carrying voting rights is, therefore, valid to deliberate on both the ordinary and extraordinary resolutions on the agenda. The Secretary of the meeting will provide you with the final figures just before we proceed to the vote on the resolutions. I'd also like to point out that our meeting is being filmed and broadcast on the Renault Group's website.

Now I will, of course, hand over the floor to François Provos in a minute. But before I do that, I'd like to share a few words with you. So allow me, first and foremost, to acknowledge all of the achievements of Renault over the past year. 2025 did indeed, if you don't mind me saying so, get off to a flying start with Renault with the Car of the Year being awarded to the Renault 5 and the Alpine A290, not to mention, of course, the International Van of the Year award that was won by the Master. 2025 also ended on a very high note with the signing of our partnership with Ford, which is quite an obvious testament to our company's appeal and credibility. And midyear, our former Chief Executive Officer, Mr. Luca de Meo announced that he was going to leave the company and Renault Group's governance structure immediately responded effectively to ensure business continuity with no impact on operations. And this was achieved against an international backdrop that has become even more challenging and conflict, driven by powers that are increasingly openly in asserting their dominance by aligning political, economic and military hegemony.

We are now witnessing the confirmation of major shifts with the global economic center of gravity shifting towards Asia, the erosion of ties between the United States and Europe, the challenge of the Western model by a significant number of BRICs plus countries, which today actually account for nearly 50% of the world's population today and the increasingly aggressive protectionism of certain nations regarding raw materials and critical materials. But we also have to contend with more recent trends, the circumvention of multilateralism, the marginalization of international law and of major international organizations, the conditionality of NATO's Article 5, which has now turned international security into a service that now must be paid for, and the regular use of tariffs as a weapon in the battle for economic dominance.

It is in this increasingly unstable and unpredictable environment where the era of supposedly happy globalization is well and truly over, that the European automotive industry must face intensified competition and ensure the transformation of its value chains whilst navigating an increasingly restrictive regulatory framework. Two major concerns really are mobilizing all of our energies. On the one hand, the slowdown in the Chinese domestic market, which is prompting Chinese car brands to seek sales in open economies such as Europe or Latin America that they cannot find in the closed U.S. market, making their commercial approach extremely aggressive. The Chinese tsunami that I predicted during my parliamentary hearing upon taking up the chairmanship of the Renault Group has indeed materialized.

Let us recall that in 2025, for the very first time in history, China exported more vehicles to Europe than Europe did to China, resulting in a European deficit of EUR 6 billion, whereas just 5 years ago, we had a surplus of EUR 20 billion. Another concern is really Europe's excessive inertia as well as the difficulties in achieving alignment between different European countries, which hamper our competitiveness and make our strategic autonomy all the more frequently to be invoked, even though it often appears largely illusory. There are, of course, various issues on the European agenda, the relaxation of decarbonization regulations, easing of the regulatory framework for small vehicles, the long-awaited recognition of the principle of technological neutrality, the setting of local content requirements and the definition of rules specific to commercial vehicles. These decisions that are to be taken are obviously very, very complex. And as you know, the devil is in the detail, but they are too slow in [indiscernible].

Now in this very challenging environment, the teams at Renault Group under the leadership of the management team, whom I would like to commend here, achieved very robust results in 2025 and demonstrated a capacity to adapt that commands our respect. And I would really like to congratulate them extremely warmly. I would also like to express my deepest gratitude to François, who has stepped up to his responsibilities without any delay at all, with great courage, with great efficiency, thanks to his thorough knowledge of the company. Under his inspiring leadership, the company has defined a very powerful and a very pragmatic new strategic plan. Future Ready addresses this group's situation and the many challenges that it faces. Francois will obviously go into a lot more detail on this later.

Finally, I would really like to extend my heartfelt thanks to the Board of Directors, which was -- which underwent a significant reshuffle last year, if you remember. The Board members have been deeply involved in the appointment of the new Chief Executive Officer and obviously, also in the development of the new strategic plan. Pierre Fleuriot will have the opportunity to highlight the importance of this task shortly. It has now been 7 years, ladies and gentlemen, that I have had the honor to becoming -- of becoming Chairman of Group Renault. I have 1 year left to complete my term of office. And believe me, this company will be occupying my mind, my time and my energy right up to the very last moment of the last day, so we still have much to accomplish. But I will not serve an extra term.

And I will be committed to ensuring that my succession proceeds with a single focus, defending the interests of the company and its people. Since I took over as Chairman of the company under the circumstances that we are all aware of, what a long road have we traveled and what crises have we weathered. As I said, when at the height of the crisis in 2019, I said one day, Renault Group will come back to the standing that it deserves. And I think in hindsight that there was some self-persuasion involved, but the talent and the resilience of Renault's teams as well as the strength of the group's governance, whatever the ups and downs may be have ultimately proved me right to the benefit of all of us. And that is a great source of gratitude for me and also a little pride. What makes me particularly happy is that the company has remained true to its corporate purpose and that its performance has not come at the expense of its values, but rather by building on them. Thus, we have invested heavily in sustainability for example, by ensuring that the [indiscernible] plant can become a model of the circular economy, which certain competitors have since emulated, although they are a few years behind us. Even in very difficult times, we have sought to uphold sharing of our values and the care for all of our stakeholders whilst ensuring the quality of social dialogue.

Finally, what a source of pride it is to have staked our future on France. It's a difficult gamble, one that has never been definitively won, but a gamble that we have embraced to the extent that Renault embodies even more today than yesterday, the proactive spirit of a company that contributes to the influence of French industry without turning its back on our social traditions. And when it opens next year, the Renault Museum in France will, in its beautiful setting, pay tribute to the remarkable history of our company, which will continue against all odds to be a part of France and to make the hearts of all generations beat faster.

A few days ago, we paid tribute to Louis Schweitzer by naming the [indiscernible] plant after him. That was a leader who not only embodied the company beautifully, but also capable of transforming it, bringing it into the modern age without challenging or denying its roots or its past. And there are many of us, especially in this room here today who hold him in immense respect and have a deep affection for him, both for what he achieved and also, of course, for the man that he was. As everyone knows, in 1999, he founded the alliance, which has seen some exciting chapters in its long history. But we've -- it's also gone through moments of deep crisis, especially in the last few years. And that is why we have ensured that it evolves so that it focuses on concrete projects based on an approach that has become very pragmatic with time. This alliance is going to be a decisive asset in supporting our international offensive and obviously, in the very strong ambitions that we now have for India.

Our various partnerships with our Japanese friends, with Nissan and Mitsubishi, with Ford and with Geely, with these partnerships, we can now maximize our geographical complementarities and our market coverage while boosting, the activity of our plants. Thus, despite the headwinds, despite the uncertainties that we have faced and will probably continue to face, I have great confidence in the company because it has put itself in the right position to avoid what I call the cyclical trap that many of our competitors are falling into. Our strategy, the appeal of our brands and our products, our partnerships, our culture of innovation, the relationships of respect and trust that we maintain with our stakeholders as well as the immense talent of Renault employees, all of this enables the group to stand strong and to look to the future, not with naivety, but with clarity and with confidence and serenity.

We will continue, therefore, and we will intensify our trajectory in the years to come under Francois's leadership in a spirit of responsibility and accountability because we stand by our strategy and our choices, which are based on our purpose and our values. We are so attached to them, and Renault deserves it. Thank you so much, ladies and gentlemen, for your attention. And Francois, I'm happy to give you the floor now.

Thank you, Dear Jean-Dominique. Dear shareholders, good afternoon to all of you. It is an honor really for me to be with you today for my very first AGM as the CEO of the Renault Group. I'm delighted to present to you our results for 2025, our outlook for 2026, but also our medium-term strategy with Future Ready, which is our new strategic plan.

Now before I tell you about the past year and my first few months at the helm of the group, I would first like to offer my very sincere thanks to the teams of Renault Group, the Board of Directors and to all of you, dear shareholders, for the trust that you have placed in us, in the leadership team and in myself since I was appointed. All right.

Now let's take a look back at 2025. As soon as I arrived, I set out three priorities. The first priority was to have a team that was up and running to deliver results. One of my first priorities was to strengthen the leadership team, and this reorganization helped to bring out internal talent within the management team. It also enabled us to align our operations with our strategic and our operational priorities. We now have a Chief Growth Officer, Fabrice Cambolive. He ensures consistency across Europe between the Renault and Dacia brands, and he provides the necessary focus for our expansion outside of Europe. We have also consolidated all of our engineering function, the entire function under the leadership of Philippe Brunet. This new structure marks a decisive first step in addressing one of our most urgent internal priorities in the face of the upheavals that our industry is undergoing today.

My second priority was to be out in the field, both in France and abroad, of course, working alongside our teams, our dealers, our suppliers and our partners.

Finally, my third priority was to develop together with the leadership team, together with our teams and with the support of the Board, our new strategic plan. Now Future Ready is the result of this collective effort. I will present it to you in a few minutes. I also decided that we needed to make rapid progress on significant simplifications to our organization. First of all, with Ampere.

Ampere was a success, particularly with the development of the new Twingo in record time. With Ampere 2.0 now, we are rolling out throughout the group this expertise that we have gained in electric vehicles and software. We have also reviewed the initiatives that were launched with MBA, Mobilize Beyond Automotive. We are now going to focus on two very clear priorities. On the one hand, financial services with MFS, our bank, which, of course, is an absolutely critical and key strategic asset. And on the other hand, customer experience in the -- which is driven by our brands. We have also made changes in India. Following the takeover of the Chennai plant, we have brought all of our activities together under unified management, and we are already seeing the positive effects of this because we can now much better respond to the speed and dynamism of the Indian market.

Finally, in the LCV sector, we have restructured our internal organization and streamlined our cooperation with Volvo Trucks within [indiscernible]. Now over the last 9 months, we have also finalized several strategic partnerships for the group. First of all, of course, within the Alliance with Nissan and Mitsubishi Motors. Jean-Dominique told you mentioned this, and I'm especially happy with the successful launch of the new Micra on our new RGEV small platform. Now with Geely as well, of course, as part of our agreement in Brazil, we have announced the investment of over EUR 600 million to strengthen operations at our [ Curitiba ] plant. And this investment will enable us to produce 2 new models for Geely from H2 this year, followed by a new Renault model next year. With this partnership, we are really giving ourselves the equipment that we need to counter the offensive from our Chinese competitors in Brazil.

Finally, we have also developed a partnership with a major carmaker, Ford Motors. We will produce 2 vehicles for them on our platforms and within our French industrial ecosystem at electricity. Ford's decision to place its trust in us is yet further proof of the appeal of our industrial and technological expertise in Europe and in France. Thanks to the commitment of all our teams, we have also stayed on track with our financial targets for 2025, a solid operating margin of EUR 3.6 billion, representing 6.3% of revenue and a high free cash flow of EUR 1.5 billion. Our performance is a result of a very clear strategy, ensuring that the product is our priority and investing where we can create value.

In order to achieve this, we have a really key asset, our brands. Last year, all our brands delivered strong performances. Renault recorded its third consecutive year of growth and is now firmly established as the second largest brand in Europe. Dacia passed the milestone of 10 million vehicles sold in just 20 years. The brand is now #2 in the European retail market. And the Sandero is Europe's best-selling car. Finally, Alpine trebled its sales in just 3 years. And so, totally, our sales grew by more than 3% and exceeded 2.3 million vehicles worldwide in 2025. These results confirm it quite clearly, we are on the right track. And to illustrate this, one need only look at the launches that we carried out last year.

In Europe, to begin with, the Renault 5 was voted Car of the Year in 2025, sold over 100,000 units last year and stood as the leader in the Electric B segment. In the C segment, the Symbios recorded nearly 90,000 sales and has established itself as our best-selling hybrid model. With Dacia now, just a few minutes after its -- a few months, sorry, after its launch, the [indiscernible] was already the best-selling C-segment SUV on the European retail market. So overall, our sales in the second half of 2025 rose by 5.2% compared with the second half of 2024.

2025 also saw the start of our international expansion. In South Korea, our sales rose by 56%, driven by the success of the new Grand Koleos with over 43,000 units sold. In Latin America, our sales rose by 11%, thanks in particular, to the [ Guardian ], of which we sold nearly 50,000 units in 2025. And in the months to come, we will be stepping up the pace even further with new exceptional vehicles, and I will come back to this in a few minutes. The sales results that we achieved in 2025 are the culmination and the result of a very clear strategy, putting the product back at the center of our attention and accelerating the electrification of our range and focusing our efforts on our recovery in Europe. That was the direction of our previous strategic plan, Renaulution. That plan delivered on its promises. In 5 years, we launched 32 new models across our 3 brands, including the Renault 4, the Renault 5, the Bigster as well as the A390. With Renaulution, we also strengthened our fundamentals. We improved the performance of our factories, especially in terms of quality. We streamlined our commercial strategy, which now puts us in a much stronger position than many of our competitors.

We have also demonstrated very consistent discipline in managing both variable costs as well as distribution costs. So to put this simply, in spite of a very challenging environment, we can now build on a robust foundation. Now that we've proven we know how to win, our challenge now is to prove that we know how to sustain this success. And that is really what is at the bottom of our new strategic plan, Future Ready.

[Presentation]

So as I was saying, our environment today is more uncertain than ever. There are so many disruptions, technological, regulatory and geopolitical. So to be able to succeed in such an unstable environment, we have to be faster, more agile and more resilient. We must be ready and prepared for the future. And that is the aim and purpose of Future Ready. Now this plan was something that we wanted to be deeply rooted in the reality of the group. Over 9 months, we worked together collectively, involving the leadership team and many other colleagues throughout the company. Now future ready is not just a detailed plan. It is also a mindset. We know all of us that the automotive industry is cyclical and so is Renault. With future ready now, our priority, indeed, our very obsession, I would say, is to create the conditions to break free from this perpetual yo-yo effect and generate coherent, consistent performance over the long term.

With future ready, we want to ensure that Renault Group becomes the European car manufacturer, the reference European car manufacturer. Yes, European. That's important to us because I'm convinced that together with our teams, we are going to demonstrate that we can continue to develop and manufacture very, very competitive vehicles in Europe. In order to achieve this, our plan is based on four pillars.

First and foremost, growth, thanks to our products, driven by our products and also by improving our customer experience. Then technology and innovation. The third pillar is what we've called operational excellence, performance. And lastly, the fourth pillar is, trust. The success of this plan depends on the mutual commitments that we make with all of our stakeholders. This is how we are going to become the reference European carmaker. Future Ready is, first and foremost, really a growth plan. Between now and 2030, we will be launching 36 new models, even more than we did during the Renaulution. In other words, we are not slowing down. We are accelerating. Europe will remain our priority with 22 launches programmed in Europe. We are continuing our push towards electrification with 16 fully electric models.

For the Renault brand, we are actually aiming at a mix that will be 50% electric and 50% hybrid by 2030. But future-ready doesn't stop at the border of Europe. 30 years after the very first expansion beyond Europe initiated by my predecessor, Louis Schweitzer, it is now time for the Renault Group to usher in a new era of internationalization. We are going to roll out a highly targeted strategy in high-growth markets where we already have fully integrated local ecosystems, especially in India and in South America. These two regions just by themselves will account for more than 60% of our -- the growth in volumes of our industry in the markets where the Renault Group operates. This is a major step up, in scale, opening up access to a market of nearly 50 million vehicles a year, representing 55% of the worldwide market. To support our international mission, we will launch 14 new models, giving our international customers access to our E-TECH hybrid technology.

And I do want to tell you this, the future-ready product consensus has actually already begun. Future Ready is not a plan for the distant future. It is a plan that is going to be deployed and is being deployed this year. In Europe, in the A and B segments, where Renault has a long-standing leadership position, we're going to build on the momentum of the Renault 5, the Renault 4 and the Clio 6 with a disruptive model, this new Twingo. The initial feedback from the Twingo has been extremely promising. Internationally, the new Duster in India embodies our renewed ambition in this market. Alongside, the Boreal in South America and in Turkey and the [indiscernible] in South Korea, it demonstrates clearly that our offensive is gathering pace in high potential markets.

Finally, in 2026, we are also going to be launching the Traffic Van E-TECH. In recent years, we have invested very heavily in commercial vehicles. We now have one of the most attractive ranges, if not the most attractive range on the commercial vehicle market in Europe. 2026 will be the year of the turnaround for our SCV division. For Dacia now, our aim is to strengthen our position even further on the -- in the C segment by increasing the proportion of C-segment vehicles in our sales from 1/5 to 1/3. And in order to do this, alongside the Bigster, we have just unveiled the Stryker, our new multi-energy crossover that combines the dynamism of an estate car with the practicality of a very spacious sedan with a starting price that is very true to Dacia's DNA under EUR 25,000. I'll let you take a look at this beautiful car.

[Presentation]

Yes, we are very, very proud of the Stryker. And this is just the beginning because Dacia is also going to be launching a new electric vehicle in 2026. So I'll see you at the end of the year for an exceptional surprise. Now on the international front, as I mentioned, one of the hallmarks of the Future Ready is our new Bridger concept. This is a model that was developed in India primarily to meet the needs of the Indian market, but which will also help us to conquer other high potential international markets. The Bridger is a vehicle that is under 4 meters long with a very bold design and balanced proportions, which offers a remarkable level of interior roominess. This is a vehicle that is designed for real-world use in major cities. It's compact, it's agile, it's agile, it's roomy. And from the very beginning, it was designed to be multi-energy, including 100% electric version. Now let's have a look at this together.

[Presentation]

With future ready, we also want to take a significant step forward in customer experience. It is a key driver for creating greater value and enhancing the appeal of our products and setting us apart from an increasingly fierce competitive landscape. Our ambition is to build a long-term relationship with our customers spanning 10 years with an 80% retention rate by capturing greater value from the second and third lives of our vehicles. In order to do that, we can draw on some very powerful advantages. First of all, our distribution network with 9,000 locations worldwide. Next, Mobilize Financial Services, which enables us to offer our customers tailor-made financing solutions and acts as a real driver of performance for the group. Next, we have our aftersales service, which is a key differentiator. In particular, we intend to leverage the connectivity of our vehicles to reduce our costs and to support our customers for longer throughout the vehicle's entire life cycle.

And in order to do this, we are going to rely on the development of digitization and artificial intelligence. As you've seen, when it comes to the product, we are going to be ready. However, in order to succeed, that is not going to be enough. We also have to compete with the very best in the technological arena, especially our Chinese competitors. Thanks to future ready now, we have comprehensive road maps for all of the technologies that matter to us.

Let's start with software. With the Traffic Van E-TECH, we will be the very first European manufacturer to roll out in Europe software-defined vehicle -- to roll out this software-defined vehicle electronic architecture. We will also be developing a new generation electric motors and bioelectronics, which will be produced at our [indiscernible] plant. We also have an ambitious road map for more innovative battery chemistries, which will improve range while at the same time, reducing costs.

For hybrids now, our E-TECH hybrid technology is already #2 in Europe. We have chosen to capitalize on this lead that we have by extending the hybrid range in Europe beyond 2030 and also rolling it out internationally. We are building all of this on a very key asset, [indiscernible], our joint venture with Geely and Aramco. This will enable us to keep pace with major technological developments and also to reduce our costs by up to at least EUR 1,000 per vehicle. One of the major technological innovations in our plan is our new RGEV Medium 2.0 platform designed for our future C-segment electric vehicles. We know that once a customer switches to an electric car, they never go back. But in order for them to take that step, there are still certain barriers to overcome. The first of these barriers is price, which is why one of our priorities is to bring the price of our electric vehicles as close as possible to that of our ICE vehicles by 2030.

The second hurdle is peace of mind. What am I going to do on long journeys? Well, our answer to that is simple. It's the range extender. For most of our customers, they will probably use it once or twice a year. But those moments do matter, and that should never be a barrier for people to switch to electric cars. And because a picture is worth a thousand words, the best way to introduce you to the strategic advantage is simply to show it to you. Here's the RGEV Medium 2.0.

[Presentation]

So Jean-Dominique said earlier that our industry has now gone into a cycle that is more uncertain and tougher, more challenging. So in this context, there is only one path open to us to be the best at everything that we can control. And this is the third pillar of the Future Ready plan. So this means to begin with quality at the very highest level. So I'll come back to that in a minute. This means also shorter development times. Now with the new Twingo, we have demonstrated that this is possible, thanks in particular to ACDC, our advanced engineering center in China. We developed the Twingo in less than 2 years. From now on, this has got to become the standard for all our future vehicles. And we will achieve this at the [indiscernible] center with all of our teams and with all of our European suppliers.

Operational excellence is also about the resilience of our organization. And in this regard, we are already future-ready. For example, as soon as the conflicts in the Middle East broke out, we were able within just 1 weekend to identify all the impacts and to prevent any disruption of our supply chain. So operational excellence is also about cost control and integrating ESG into our operations and deploying artificial intelligence on a large scale. So ultimately, operational excellence is really the driving force behind Future Ready. It is through this that we will be able to turn our strategy into results. And to give you a very concrete example of this, I'm going to talk to you about quality assurance.

With Future Ready, Renault Group vehicles will be among the market leaders in terms of quality, not just on the first day when we deliver the car to the customer, but every day throughout the lifetime of the vehicle. In order to achieve this, we are scaling up our approach. 100% of all key manufacturing stages will be monitored by artificial intelligence with enhanced traceability, a much quicker response to alerts from the sales network and a widely available capability for remote updates to our vehicles. This transformation will enable us to go even further. First of all, we've already halved the number of incidents during the first 3 months of driving. We are now aiming for a further 50% reduction.

Next, we will take a decisive step forward in terms of sustainability by reducing incidents during the first 5 years of the vehicle's life by 70%. Greater excellence in our operations. more customer satisfaction. That is our ambition. With future ready, we also want to take a further step towards integrating sustainable development into our operations. We remain committed to achieving carbon neutrality in 2040 in Europe and by 2050 globally. We've already reduced energy consumption in our factories by 25%, and now we are aiming at a further 25% cut by 2030. And we are set to step up our efforts in the circular economy, particularly through the future is neutral at our factory in [indiscernible]. But I'm not going to say any more about it, but I'm glad to show you these videos.

[Presentation]

Now the fourth pillar of our plan is commitment, a mutual commitment, the one that we make and the one that we expect from our entire ecosystem. Obviously, I think first and foremost, here of our ecosystem in France because that's where our roots lie and because France is still the nerve center of our company. And because I know that for all of you, this really is a vital issue.

Over the past 5 years, our commitment to France has not wavered by an iota. We have invested over EUR 13 billion there and stabilized operations at each of our factories. With Future Ready, we are reaffirming this commitment. We will once again invest a further EUR 13 billion over 5 years. We will develop 9 new models as well as 4 additional models for our partners. Over the next cycle from 2026 to 2030, if the conditions are right in the market, we plan to increase production at our plants by 20% compared to the previous cycle.

Now before I go into detail about our commitments to each of our stakeholders, I'd like to invite you to meet on screen the people who are going to make Future Ready into a success.

[Presentation]

Now all the faces that we've just shown you are those of future-ready, our teams, our dealers, our suppliers, our partners. They all have a crucial role to play. They are all very much on board with our plan. Now first of all, of course, first and foremost, our teams, our 100,000 employees. Now towards them, we have a duty of transparency. If we are to succeed, every employee, every team, every function has to know exactly where we are heading and how they can contribute. We take this commitment to clarity very seriously in our dialogue with trade unions. We also have a duty to support our staff. In an industry that is undergoing such quick transformation, roles and skills are evolving. Our responsibility is to ensure the long-term employability of our employees. And as I have said, the most decisive transformation is going to be that of our engineering department. And in order to make a success of this, the management team is not alone. We can count on our community of over 9,000 managers. It is they who every day represent the company's voice on the ground. And that is why we are going to be implementing a specific HR plan to support them and strengthen their impact.

In order to make -- in order to succeed, we will also need our dealers and our network in at Renault Group, unlike most of our competitors, we have always regarded our network as a very major strategic asset. Along with our network, we want to take the customer experience to the next level while also improving productivity and better controlling fixed costs. On the ground, the situation is clear. We have to simplify. We have to digitize the way we work with our distributors. And this is what we're going to do together over the coming months. We are also going to need our suppliers with future ready. We are not just looking for just suppliers. We're looking for real partners. So this means more trust. We need to involve them at an earlier stage in the development of our vehicles so that we can achieve our cost, quality and deadline targets together by eliminating overly detailed specifications. It also requires greater transparency, gaining an overview of their value chain to secure our supplies and to build resilience. This is how we are going to improve our collective performance.

Now to make future ready a success, we are also going to need our partners. And when it comes to partnerships, we follow three simple principles. The first principle, Renault Group does not need anyone else in order to grow and to achieve its objectives. Future Ready is a plan aiming for growth and independence. The second principle is that in Europe, we will retain control of our key technologies. And it is precisely the competitiveness of our ecosystem, especially our electric ecosystem that makes it possible for us to attract partners like Nissan, Mitsubishi and Ford. The third principle, outside of Europe, we will take a pragmatic approach. Wherever strategic intelligent partnership can accelerate our growth, we will seize the opportunities. This is the case, for example, with Nissan in India and with Geely in Brazil and South Korea.

So in all, by 2030, future ready will enable us to produce more than 300,000 vehicles per year for 5 partner carmakers. Finally, we are going to build future ready also with all of you, our shareholders. With this plan, we will be demonstrating our ability to generate steady, solid and sustainable growth. We will invest this growth, first and foremost, where value is created in our core business, in our vehicles. We are going to be investing in our products. We will not spread ourselves too thin with costly low-return diversifications. Our priority is and will remain the product. This growth will also enable us to present a solid balance sheet and to reward our teams fairly and of course, to offer all of you an attractive dividend.

With the support of the Board of Directors, we are proposing a dividend of EUR 2.20 for 2025. And in the medium term, our course is very clear. We want to offer you attractive returns and to gradually increase the dividend per share in absolute terms. Duncan, will come back to this in just a minute.

It is now time for me to conclude. So I'd like to thank all the teams of Renault Group who have contributed to the development of this plan and who are now getting ready to bring it to life on the ground and to implement it. I would also like to thank the Board of Directors for its constant support. And of course, most especially its Chairman, Mr. Jean-Dominique Senard. Finally, I would like to thank all of you, our shareholders, for your loyalty to the Renault Group and for your trust and confidence in the rollout of our new plan. Future ready is a battle plan. It's going to enable the Renault Group to face the challenges ahead and to tackle them with energy. It starts now from 2026. It builds on our strengths and it gives us the means to scale up. We know perfectly clearly where we come from. We know perfectly clearly where we want to go, and we also know how to get there. At Renault Group, we are future-ready. Thank you very much, ladies and gentlemen. I'd like to give the floor now to our CFO, Mr. Duncan Minto.

Well, thank you, Jean-Dominique, and thank you, Francois. Good afternoon, everyone. I'm delighted to be with you today to present the financial results for the year 2025. And then we'll look briefly at sales trends and developments in the first few months of 2026.

As Jean-Dominique and Francois have underlined, in 2025, Renault Group demonstrated its resilience and the strength of its strategy in a particularly challenging environment for the industry. And these results are the fruit of a major collective effort, and they reflect the robustness of our fundamentals, the success of our vehicles and the rigorous execution of our value-focused commercial policy, and they provide a solid foundation for the execution of our plan, future ready. Now let's start off with the business performance. In 2025, sales were up for the third year running to 2.3 million units. The three brands, Renault, Dacia and Alpine all contributed to volume growth volume growth driven by the expansion of our electric lineup, our hybrid lineup and the rollout of our international growth strategy.

The Renault brand itself recorded its third consecutive year of growth, up 10% in the passenger car segment worldwide. In Europe, the Renault brand reached second place in the passenger car and LCV market driven by a 7.4% increase in passenger car sales and the strong momentum in order intake since the start of the year confirms this momentum. And Dacia also had a strong year. The brand grew 3.1% and passed the very symbolic milestone of 10 million vehicles sold in just over 20 years. It's also become the second best-selling brand in private customers in Europe with a 7.9% market share. It's even more than Toyota.

And finally, Alpine continued its growth trajectory. The brand surpassed the symbolic threshold of 10,000 annual sales for the year for the first time. And these results prove one thing we're on the right track, and we started the year with a very healthy inventory level of 539,000 vehicles, and that once again reflects the success of our products.

Group revenue was up 3% in 2025 to EUR 57.9 billion on a constant exchange rate basis, it was -- it would have been up 4.5%. The Automotive revenue per se was up almost 2% to EUR 51.4 billion, and that benefited from a positive volume effect, and that is in line with the rise in global registrations, but also a price and product mix effect of nearly 3 percentage points, and that's primarily driven by the group's value-focused commercial strategy, but also price increases to offset inflation and indeed, the success of new launches. Finally, a dynamic momentum in Parts and Accessories and in Used Vehicles as well also contributed to revenue growth.

MFS contributed EUR 91 million in 2025 compared to EUR 69 million the previous year. And it should be noted that as of January 1, 2026, Mobility Services were reintegrated into the Automotive segment following the organization of its activities, as Francois pointed out. And then finally, our captive finance company, Mobilize Financial Services generated generated EUR 6.4 billion in revenue, an increase of more than 13%, and that was primarily driven by higher interest rates, but also an increase in the average amount financed per vehicle and of course, growth in the total number of cars with car loans.

Now let's now turn our attention to the group's operating margin. In 2025, operating profit was EUR 3.6 billion. It's 6.3% of revenue. The Automotive operating margins stood at EUR 2.2 billion or 4.2% of Automotive revenue that accounted for 5.9% of revenue back in 2024. So this is down, but that decline is well, mostly due to an unfavorable currency effect, especially in Argentina, but also a less favorable product mix and fewer LCVs and more electric vehicles against the backdrop of increased commercial pressure and competition. But these effects were partially offset by higher volumes.

And then in 2024, we had a positive effect related to the discontinuation of [indiscernible] depreciation and amortization since its de-consolidation. So [indiscernible] appreciation, amortization and margin are now recharged to us, but these two combined effects had a negative effect in 2025. And then finally, our Financing business, so therefore, MFS Mobilize Financial Services contributed EUR 1.5 billion to the group's operating margin. That is an increase of EUR 173 million compared to 2024.

Let's take a closer look now at the income statement. This line, other operating income and expenses was negative, minus EUR 11.5 billion. Now what does this include? Well, you have the noncash loss of EUR 9.3 billion, and that is related to a change in the accounting treatment of our stake in Nissan as of July 1, 2025. And that aligns its valuation with Nissan's actual market price, but this has no impact on the calculation of the dividend paid by the Renault Group. But this also includes impairment charges on production assets or the charges related to vehicle development. That's a total of EUR 900 million plus restructuring costs, and that was EUR 400 million. And then the financial result, that was a negative EUR 208 million in 2025 compared to EUR 517 million in 2024.

You have to note that hyperinflation in Argentina had less of a negative impact in 2025 compared to 2024. And then contribution of associates to the group's results was a minus -- minus EUR 2.2 billion compared to minus EUR 521 million in 2024. So you had minus EUR minus EUR 2.3 billion from Nissan. But as I said, as of 30 June 2025, the date of the change in the accounting policy, Nissan's results no longer affect the group's own results. Now contribution from associate companies also include a positive contribution of EUR 245 million that is from Horse Powertrain Limited. And then taxes accounted were an expense of EUR 522 million, including a EUR 24 million charge related to the exceptional surtax in France compared to an expense of EUR 647 million in 2024. Now the effective tax rate is 42% and the change in 2025 is impacted by the nonrecognition of deferred taxes on expenses and tax losses, especially in France.

As a result, net income group share were minus EUR 10.9 billion in 2025. But if you leave out the Nissan impact, it would have been a positive amount of EUR 715 million. Now the Automotive free cash flow stood at EUR 1.5 billion, including EUR 300 million in dividends from MFS compared to EUR 600 million in 2024. The net financial position of the Automotive division reached a record high, plus EUR 7.4 billion compared to EUR 7.1 billion in 2024. This change to free cash flow generation includes EUR 697 million in dividends paid to shareholders, EUR 186 million in net financial investments and the positive impact of the acquisition and consolidation of RNAIPL in India, and that was EUR 76 million. So that's how we got to the net financial position.

Let's look at the liquidity reserves, and they remained very comfortable at plus EUR 17.7 billion. In 2025, S&P Global Ratings upgraded Renault S.A.'s long-term credit rating to investment grade, BBB- with a stable outlook, up from BB+ previously. R&I and JCR in the first half of '25 had also raised the outlook on their credit ratings from stable to positive. And then finally, on April 7 of this year, Moody's confirmed also the positive outlook on its rating.

Now against the background of downgrades for our main competitors, these positive developments underscore, in particular, the continued improvement in our operational performance and also the momentum surrounding our product offensive. So bolstered by these results and confident about the future, we are submitting for your approval the payment of a dividend of EUR 2.2 per share for the year 2025. As we indicated in Future Ready, our intention is to continue rewarding our shareholders with a gradual increase in the dividend per share in absolute terms over the medium term.

Let's move on to the year 2026, starting with registrations. Global sales stood at 546,000 units in Q1, down 3.3% compared to the first quarter of 2025. But this decline is primarily due to temporary production and logistics disruptions at Dacia. Sales picked up again in March. And indeed, Dacia has a solid order book, and we're beginning to make up for production losses in the second quarter. Sales of Renault and Alpine are both on the rise. And in Europe, in particular, the group has confirmed its third place position in the passenger car in the LCV market. And then the group's revenue grew 7.3% compared to last year, reaching EUR 12.5 billion in the first quarter. And at constant exchange rates, it would have risen by 8.8%, in line with the average single-digit growth trajectory for group revenue as outlined in our Future Ready plan.

But let's look now at our financial outlook. We confirm the financial outlook for the year 2026. Group operating margin around 5.5% of revenue with the operating margin for the second half of the year higher than H1, in line with typical seasonal patterns. And Automotive free cash flow should stand at about EUR 1 billion. 2026 will be a year of resilience in a complex and challenging external environment before the full effects of our productivity plans can be fully implemented. Regarding operating margin, revenue growth will be supported by international expansion, but also the ramp-up of sales to our partners and the growth of electrified vehicles and the full year consolidation of RNAIPL in India. Nonetheless, this will have a latter -- this will have a dilutive effect on the margin in percentage terms.

Finally, cost control will remain -- will have a defining will be a defining priority in 2026 and beyond. And we won't stop there. In the medium term, we certainly aim to improve our financial performance, and that is the very objective of our new future-ready strategic plan. In a highly challenging market environment, group aims for steady and controlled value creation based on rigorous and realistic approach, and the goal is to ensure a robust operating margin and sustained free cash flow. We're looking at operating margin between 5% and 7% of group revenue over the medium term. The lower end of the margin forecast, you will note is significantly higher than historical margins. And [indiscernible] free cash flow of at least EUR 1.5 billion per year on average, again, over the medium term, does include about EUR 500 million per year on average in dividends from MFS, but we also expect to receive a dividend from Horse Powertrain starting in 2027. These targets reflect our confidence in our plan of future ready and indeed, in the group's ability to sustainably improve its financial performance.

So well, thank you for your attention. And now I'd like to call on Mr. Bernard [indiscernible] from KPMG our auditor to present a summary of the reports from the Board of Auditors. Thank you.

Thank you, Mr. Minto, Mr. Chairman. Good afternoon, everyone. And on behalf of the Board of Statutory auditors, I'll show you a summary of the reports prepared for your consideration. These reports have been made available to you and are indeed included in form in the meeting materials for this general meeting.

For the year 2025, we issued as many as 8 reports covering the annual financial statements, the consolidated financial statements, the compensation and the remuneration of redeemable shares, related party agreements, sustainability information and finally 3 reports on various transactions concerning the share capital.

On the first report, we issue an unqualified opinion on the annual financial statements for 2025. And in line with regulations, we've outlined in our reports the key findings of the audit of Renault Group's annual and in consolidated financial statements.

Regarding the annual financial statements, this is about the value of redeemable shares and related receivables. And we added a technical note regarding the effects of the first-time application of the ANC regulation # 2022-06 as set forth in the notes of the annual financial statements. And we also certify without reservations, the consolidated financial statements of Renault Group in 2025.

There are now 3 key audit matters brought to attention in these consolidated statements. First, the recoverable amount of the Automotive sector's assets. The second report is on the change in the accounting treatment of the investment in Nissan, our stake in Nissan as of 30 June 2025. And finally, the expected loss on sales finance receivables. For each of these three items, we reviewed the accounting method and ensured that the -- that Renault's own estimates were reasonable and realistic. In -- as part of the Annual General Meeting, we also issued three additional reports. The first one is on redeemable shares. And there, we certify the calculation of the variable remuneration of the securities, make sure that this is in line with the issuance agreement.

The second report is about related party agreements, and that describes the main characteristics and terms of the agreements which were notified between your company and its corporate officers or between the company and companies with directors in common. The agreements already approved by the AGM and whose implementation continued in 2025 are summarized and the agreements authorized by the Board of Directors during the past year and submitted for your approval are about the reorganization of the partnership between Renault and Nissan Motor Company and indeed, the continued implementation of the Renault Nissan Mitsubishi Alliance. So there are 4 agreements, and they were all entered into on 31 March 2025.

You have the umbrella agreement, the termination agreement for the Ampere investment agreement, the second amendment to the Framework Agreement and the second amendment and restatement of the new Alliance Agreement.

And then the third report is about sustainability. Now our purpose is to provide limited assurance on Renault Group's sustainability, and it covers three areas. First, the compliance of the double materiality analysis as implemented by your company to assess the information provided, the compliance of the disclosed information with sustainability standards known as ESRS and compliance with the information disclosure requirements set forth in the taxonomy regulation. So for each of these three areas, we present the nature of the checks, the verifications we performed, but also the conclusions we arrived at and in support of these findings, the items to which we paid particular attention and the procedures we implemented.

In summary, we didn't identify any material errors, admissions or inconsistencies regarding the compliance of the sustainability process or information with the ESRS and compliance with the taxonomy regulation. And so we can certify each of these three areas without reservations at all. And then finally, regarding the extraordinary portion of the general meeting, we issued three special reports concerning regulations that may affect the share capital or [indiscernible]. These transactions are consistent with conditions set forth in the Commercial Code and our reports contain no specific remarks or observations to bring to your attention. Chairman, ladies and gentlemen, thank you for your attention.

Thank you, Mr. [indiscernible], for this presentation, always clear and short and that reflects the good work of your teams and us at Renault, we have been working in good spirit. And now ladies and gentlemen, it is now for Pierre Fleuriot to give you a presentation of the committees of the Board and of course, the committee -- the Compensation Committee. Pierre, it's all yours.

Ladies and gentlemen, dear shareholders, in my capacity as Chairman of the Governance and Compensation Committee and indeed, Lead Director, it falls to me to present to you a summary of the Board's activities and the compensation arrangements for the corporate officers. Let's start with the activities of the Board. It has been very intensive this year. We met on 14 times compared with 9 last year. And the committees met as many as 16 times compared with 15 last year. So this illustrates the number of meetings and the intense activity. You'll have detailed information on the activities of the Board. But the year 2025 was marked by 2 -- well, 2 events that involve the Board.

First, the change in governance and indeed, strategic directions. And so let's look at governance first. As you know, we had -- well, midway in 2025, we had a new CEO. In fact, we had three. The first one, of course, was Luca de Meo, who stepped down on the 15th of June, effective 15th July. The Governance Committee started looking for replacement immediately. Now in its annual reviews, it had already been working on a possible successor. And so we had a number of profiles, and we started working on that immediately. Now as of 15th July, we appointed an interim CEO, Duncan Minto, who is here, and he covered the position until such time as the new CEO was appointed. That was François Provos, who was appointed on 31 July 2025. Now after this selection process, and you can see this was fast and efficient. So his appointment on 31 July was a co-optation, meaning that the Board appointed him to stand in for the vacant position that as directed by Luca de Meo. And so that made him a director until this AGM. And so this appointment is being put to your vote in Resolution #10 to ratify this cooptation, which will then will enable Francois to remain as a director until the end of 2027.

Now 2026 will be the last year of my term. My own succession has been organized. First, you have the proposed appointment of Marie-José Donsion, who is with us in the auditorium, and she will stand in for me as a member of the Risk and Audit Committee. In my capacity as Lead Director, Bernard Delpit, who's also in the audience, who will stand in, and he will also be my replacement on the Governance Committee. And finally, the Governance Committee will also have Annette [indiscernible] on board, and she will then joined the committee to replace [indiscernible]. [indiscernible] is now -- was appointed as Director last year. So all the positions now are filled and will be filled indeed when my own term comes to the end after this AGM.

Then finally, we have a director, women on board. There is a principle of strict gender balance, and that also includes employee representatives. You have 3 employee representatives on the Board. And so one of them -- of the 3 has got to be a woman. And so -- and this is -- we arranged we actually have a resolution now to amend our articles. And so Sebastien Jacques to get upon himself to step down. And so this will become effective after this AGM. And so there will be an election in May for a new member to replace him. And that, of course, will be a woman. I'd like to thank Sebastien Jacques for this initiative and indeed for his contribution to the work of the Board. Thank you.

And now let's look at our strategic priorities. And so this is the second main line of activity of the Board. Now there were a number of agreements that had to be reviewed and in particular, our agreements with Nissan. You may remember that Renault took back or bought back 50% of Nissan's stake in India, but also the provision of vehicles for Nissan. So we have a new CEO now and a number of strategic directions were revisited or updated as it were. And so we, in particular, revisited our partnership with Geely in Brazil, and Francois mentioned this in his own presentation. But also we reviewed and monitored the financial situation of [indiscernible]. This is a joint venture we have with Volvo, and Francois also mentioned that. We reorganized a number of branches, including Ampere, but also Mobilized Beyond Automotive. And then the review of Alpine's strategic road map. And so Board was very much involved in this in preparing the new medium-term strategic plan, and that was disclosed on the 10th of March. And indeed, the committees of the Board, including the Strategy and Sustainable Development Committee chaired by [indiscernible], but also the Audit Committee chaired by Bernard [indiscernible] were both very much involved in finalizing that plan that became -- that was published and was indeed very well received. And indeed, now we are implementing this very plan.

And now let's move on to the second part of my presentation and the draft resolution on the compensation of corporate officers. So this is, of course, our Chairman, Jean-Dominique Senard, the CEO and the directors. So the compensation of the Chairman of the Board, you have EUR 450,000. This is the fixed compensation that has remained unchanged at the beginning of his term. You also asked to vote for the 21st resolution, which provides for the self same amount, EUR 450,000. We move on to the 2 CEOs because -- well, there was the interim CEO, Duncan, and then Francois who is now there on a permanent basis. So well, first, we start Luca de Meo. We had to have Luca de Meo's compensation on a pro rata basis from the January 1 to 15 July for Luca Mo. So you have this figure, EUR 914,000. Now that's on the pro rata, it should have been -- well, it's a pro rata on EUR 1.7 million that had been approved last year by the AGM. And the variable portion, so the maximum would have been 225%. The actual attainment rate was because there are a number of financial criteria that were not met. So we arrived at 89% achievement rate. And that, again, on a pro rata basis, you arrive at something slightly above EUR 813,000. And then the performance shares that were attributed in 2023, '24 and '25 are therefore canceled and there was no severance compensation nor did we in invoke a noncompetition clause.

That was for Luca de Meo for Duncan Minto, so that was the period from 15 July to 30 July. So he had an additional EUR 300,000 on a pro rata basis that came to EUR 13,636. So that's for about 2 weeks, plus a variable component of that complement -- that supplement rather. That was also on a pro rata basis, and we stuck to the same achievement rate as Luca de Meo, 89%. So that came to about EUR 12,000. And then the third compensation package for the year 2025, that Francois approval from the period from 1 July to 31 December 2025. So his contract provides EUR 1.2 million on a fixed basis. On a pro rata, you get EUR 504,000 for the fixed part, about EUR 398,000 for the achievement rate. That was 79% out of 200% rather than 225%. So you may remember for Luca de Meo, it was 89% out of 225%. So this is 79%, and that comes altogether to performance shares, 31,250 performance shares and the -- this is based -- this is pro rata on the base of EUR 75,000. And of course, the value will be considered over 3 years.

So you have the compensation package. So it's EUR 1.2 million, 200% variable, EUR 75,000 performance shares and then post-term benefits. Under the performance conditions, we have 2 adjustments, minor adjustments. Number one, one of the criteria known as ROCE, that is return on capital employed. That criterion came from compensation for short term to long term. And then we have another criterion, and that replaces another criterion, which was a reduction in variable and that used to be long term, and now it's short term. So we switched -- I mean, the criterion ROCE and variable costs as it was switched positions between long and short term. And then there's another criterion, total shareholder return, TSR. So that accounted for 25% of the compensation. So that bonus is now focused on a single criterion comparing Renault's performance in terms of shareholder return, compared that with a benchmark in the automotive industry and suppliers. And so we have a basket of other companies to compare with.

And then the directors themselves for the year 2025, but also for 2026. So would you have it up on the table now. People used to this will recognize this because this table is identical -- has been -- has remained unchanged since 2024, but you have a fixed part of the fees for directors and then a variable part. So we look at attendance rates and then a special compensation for chairs of the committee and for the Lead Director. Now this -- we had a total envelope of EUR 1.067 million. And so that accounts to about 71% of the total budget. So the full budget was EUR 1.5 million. That was decided in 2018, and it has remained unchanged since. So that's resolution #16. And then resolution #23, that's the last one, and that is for the compensation for directors for the year 2026. So you have the same schedule identical to 2025 and indeed has remained unchanged since 2024. This is my final statement in this meeting.

I'd like to thank the Chairman of the Board, Jean-Dominic Senard, and all shareholders for giving me the privilege to work as Chair of the Governance Committee and as Lead Director. Many thanks to you all.

Thank you very much, Pierre. And I'd like to take advantage of this opportunity to highlight how much Pierre has contributed to the life of your company. So Pierre has, over the last 8 years, been through all of the adventures of Renault and heaven knows that there have been adventures. And certainly, I know what I'm talking about. He's always been with us. He has always proved to have a lot of the capacity to stand apart and look at things objectively. And he's not just worked for Renault as a member of the Audit Committee, as a member of -- as the Chairman of the Committee of Compensation and Benefits and also the Lead Director, which is quite a heavy role. And he has been voted back every year, but he also worked for Nissan. He was a member of the Nissan Board up to last year.

And I can witness to this personally because I was there with him. We both attended Board meetings, and we were -- he was a member of the committee for appointments and nominations, and he was extremely careful to protect all the relations. The interest of Renault, but also to create the best possible relationship with Nissan. So very often, these meetings took place after hours and hours of air travel and sometimes at 4:00 a.m. in the morning, and they lasted for a long time. And we managed to energize each other. And really personally, I owe him a lot because he's helped me so much to think things through properly. And I think you will all agree that we can express in the name of the group and in our name for our real gratitude. Thank you so much, Pierre, for all of this.

And now we come to a moment, which is an important one in this meeting, which is the discussions that we are delighted to be able to have with you. And I wanted -- before we start the Q&A session, I wanted to inform you that answers to the written questions that were sent to us by post by certain shareholders have been put onto our website. So you have the written answers there. Quitterie De Pelleport will now outline a few guidelines to ensure our discussion runs smoothly. Thank you, Quitterie De Pelleport [indiscernible] tell us what we need to know, please?

Well, in order to ensure that the largest number of you can ask your questions, we are going to take direct short questions for a minute each. And if you ask questions, please come out to the end of your row and the hostesses and hosts have microphones, so please ask for a microphone and you can ask your question or make your comment. Jean-Dominique, you have the floor again.

Well, that was strict, and we are counting on all of you to follow them. So let me remind you that the Shareholders Consultative Committee -- and the shareholders' Day obviously does make it easier for us to exchange information with each other. And last year, when -- the last day that we had for shareholders on the 1st of April, Francois and I were able to have a direct dialogue with many shareholders, and that's really important to us. I'd like to show you a few pictures of that day. It will show you what the atmosphere was like.

[Presentation]

Okay. So that really was a very interesting day. So what I suggest we should do is start with a question sent in by one of the members of our Shareholders' Advisory Committee. I think it's Mire Luca.

Yes. Hello, everyone. We'd like to thank you for the presentation of these results and the encouraging prospects. So here's a question that the Shareholders' Advisory Committee decided to ask. Renault developed the Twingo in 2 years in collaboration with Chinese partners. Is this your model for developing future vehicles? And would this not result in staff cuts in the engineering department?

I'm going to give the floor to Francois to answer this first question.

Well, yes, as I said earlier, we have a development center in China, as I was telling you, to try and learn how the Chinese carmakers have managed to get such an advance on us in terms of technology. So with the Twingo, we were able to learn this. And the whole challenge of future ready is to be able to extend that knowledge to all the other cars we're going to build at the Techno center with our teams and with our suppliers. So the transformation of the engineering department is really at the heart of the transformation of the group in the years to come.

And above all, it is -- it means it's one ambition. It means that we have to prove that we can actually do this in Europe. So this is, of course, the battle is about skills. All of our engineers need to be able to adapt to these new ways of working to the new technologies that are coming in, batteries, software, electronic components. And this is -- we have to change the way we work, for example, with our suppliers. So after having for many, many, many years, learned to make cars in 3 or 4 years, we now have to manage to do it in 2 years. And then this also means that our engineering and technical centers have to be specialized because so far, they were all developing new models, and we then had to rationalize. So we are going to change this.

We are concentrating the heart of our engineering in France and especially for the new technological road maps. So it's true that when we talk about the transformation of our engineering department, obviously, the press immediately start talking about layoffs. But above all, we want to prove that a European company like ours is able -- capable of being at world-class level in terms of engineering and development. And we are doing this in an open and transparent manner with the support of our trade union partners, but we have to do it in the right order.

Yes. Thank you very much, Francois. And you can see that for decades, our Asian counterparts imitated what we did. And now we are doing the same to them to try and catch up what we can catch up. And what François ois has said is very much the path we're going to follow.

Okay. We can take a question in the room. We can take a question mic #5, please.

Hello, Mr. Chairman, [ Denis Branch ]. So you talked about the fact that you only have a year left, but you didn't really say what's going to happen about governance in the future. We want -- what are we going to do to ensure that the separation of the two functions should continue? And what would be your recommendation on the new organization?

Well, obviously, we are going to start discussing all of this in the weeks to come, but there's no emergency because we've got a year ahead of us. But to answer your question, of course, it is the group's governance team that will take the decision. I will say that today, our governance is working pretty well. And we've seen that the separation of the functions was useful over the last few months. So I think we are going to go -- continue down this road. But for anything else, it's a little too early to talk about it, but I hope I answered your question.

Okay. Let's take mic # 4.

Hello, Mr. Chairman, [indiscernible], and I'm the Secretary of the Renault Share Fund. In this very turbulent time, we are going to have a subscription for shares and that decision is coming up, and it may be a difficult decision. Could you maybe to guide us, tell us what you think a shareholding employee. How would you define a shareholding employee?

Well, yes, you're right. We could have mentioned this earlier, says, Mr. Senard. The question of employee shareholding is a vital one for us. Over the last few years, we've very clearly set out to achieve a rate of at least 10% of the capital of the company held by the employees of the group. We are at about 6%, I think. And we've improved because it used to be 2.5%. So we haven't got as far as we wanted to, but we're going to continue. And we will carry on year after year until we achieve this goal.

And I think -- I hope that in the next 3 or 4 years, maybe 5 years, I hope we will achieve this objective. I think it's really important because this group does actually belong to its employees in a way and the fact that it should belong to them in terms of shareholding is part of basic capitalism, I think. And we've always done what we could to encourage this. And I promise you, we are not going to give up on this. We are determined, and I just hope that it will happen easily.

And I do speak to the association of employees -- shareholding employees very regularly. And I think for them, it's really important. And I think everyone and the Board as well, they all -- everyone here shares my point of view because given the kind of times that face us, the robustness of the social capital of the group is extremely important. It's one of our big advantages. Thank you very much.

Okay. Let's take mic #3, please.

I have a question. I'd like to know whether Renault is going to keep its margins or increase them because you're going to sell fewer cars than before in a very competitive market?

Yes. Thank you very much. Francois, maybe you can -- we could just reaffirm what you said earlier.

Yes, you're right. I did say that there was a lot of pressure on prices, competitive pressure. This has been obviously created by the arrival of our new Chinese competitors onto the European market. And what we are doing really is to concentrate and reduce our policy of platforms. So we are going to have fewer platforms. We've restructured engineering. We've very clearly set up across car line, which means that the modules that are key, for example, the cockpit, things like that, we need to have very, very strong [indiscernible] at the right level of cost. And for this where we put the value of our -- for our customers in each car, depends on what kind of existing modules we can use and we can set that up per model and per type.

So if I take the example of platforms, we have one dedicated electric platform for small cars like the R5. The new platform that I showed you earlier for the C segment, which is also going to be electric and electrified through the range extender. And then we have the RGMP, which is our multi-energy worldwide platform. It's for Dacia and it's for Dacia in Europe and Renault outside of Europe. So as you can see, we've really -- we have a much more healthy policy for platforms. We've streamlined everything, and we can focus our investments on the things that really are -- do add value for our customers. For example, design, and that means we can distinguish our brands from each other and distinguish our products as well.

I'm often asked a question about electric cars. It's true that we have a lot of margins. We have a lot of problems, sorry, on the margins for our EVs. But every car is more -- we have a better profit margin on each car compared to its earlier version, so -- or the earlier cars. So for example, the -- if you compare to Megane and Scenic, which are in the C segment, but which were our first electric cars, did not have a great margin, but our margins for the R5, the R4 and the Twingo are better, although these are smaller cars, they're in the B segment. And we need to maintain these margins. We need to be able to invest in the long term in our products.

Yes. Thank you very much, Francois. I think we've answered your question. Let's go to the other side of the room again. and we'll take #5.

Good afternoon Mr. Chairman, good afternoon, everyone. I understood that Renault wants to be ready for the future. But Mr. CEO, what I heard from you actually made me feel a bit giddy because in my memory, I'm thinking of all the problems that have struck your competitor, Stellantis, which was far too ambitious earlier last year, and I'm very happy to not be a shareholder with Stellantis. So I agree with an earlier shareholder is that I'm very glad that it's -- there's a double dual hedge to Renault. And I understand Mr. Provos that you are very ambitious. That's part of your rule. But I'm also very happy that there should be a Chairman who can mitigate any excessive ambition.

So I'll give you an example in the production of electric cars. Stellantis is really putting the brakes on, but Renault is speeding up. So for a shareholder like me, it's a bit paradoxical. You wonder what's happening, and I don't really know what to think. So I'd like you to reassure us on this, please. Why has Renault decided to go in the opposite direction to what its competitor is doing. And the second thing is I have this brochure, the invitation brochure that I had to print out. I had to print it out, but I have a request for you. I know you can't give me an answer today, but I really hope that Renault will think about whether or not from next year onwards, if a shareholder asks for it, could you send them a printed brochure? Because I do admit that there are shareholders like me who are much more comfortable with paper than with a digital version.

Yes. Thank you very much. Yes, certainly, we've noted that, and we will take that into consideration. I promise you. I do understand. And I will let Francois answer the question that you asked about Stellantis, but you know that we don't really make comments on what our competitors do. But I suppose Francois can give you a more general answer. It's very nice of you to say that I keep a sharp eye on any extravagances, but I assure you that with my -- with Francois today and his leadership team, my role is very much -- has been made much easier. It's really very [indiscernible] actually now for me. Francois?

Well, yes, when we presented Future Ready on the 10th of March, many of the journalists said to us, you're the last ones to still believe in the electric vehicle. And 2 weeks ago, we were launching Future Ready in India and journalists as well, of course, they were Indian journalists, but they always think the same thing. So are you sure you want to slow down on electric cars because the Middle East conflict had broken out between the two.

What -- what really sets us apart is that we take a decision and we stick to it because electric cars are not just good because they happen to be the fashion. It's because they are the best solution for our customers. Our customers who have switched to electric cars will refuse to go back to ICEs. Of course, we have to ensure that the prices are lower, and we have to be able to give people the confidence that little by little, they will learn that you don't run out a battery that easily. We think that electric vehicles are positive. We think that the electric cars and the mix will continue to grow. I think that -- I think 2035 is crazy. But in general, electric cars is a very good idea. So -- and we saw immediately with the price of petrol that has gone up, we have electric car sales that have increased. And we haven't changed our minds even since then.

We think hybridization is a good idea. That's why we've got a second pillar. And we will always keep plan A and Plan B with the long-term idea of achieving 50-50, 50% electric vehicles and 50% hybrid vehicles. And all of this is happening. It's all working out in this context that we can all see is so uncertain where the European Union decides what is good for the customer. The leadership team and I believe that you need to think about your customer. And everything we've put into the Future Ready plan, we are thinking of our customers. We think that with range extenders, many, many, many families will be ready to switch to electric cars. And we have at least 60% of people who have family cars who after 2030 will be able to switch to either electric cars or range extender cars. And they'll realize a little by little that it really is not a problem, the range. And there are many people who cannot charge their batteries easily or they will -- they don't want electric cars.

Well, in that case, our offer will still be great for them. So we are going to stay consistent and coherent with our choices. We are not going to switch one day to all electric and the next day to all diesel. So I think that it's the customer whom we keep in mind when we make the choices for Renault Group.

Yes. Thank you very much, Francois. It's true that the -- all these questions about electric cars. The current situation certainly does send us some very strong messages on electric vehicles. But you have to keep in mind that 100 kilometers in an electric car compared to 100 kilometers in an ICE costs you half as much. So these are elements that people are realizing, and that is why there might be a change of paradigm on that. Okay. Let's take mic #4.

Yes. Hello, sir. Hello, everyone. So this is the ninth AGM that I've been to in the year. And it's the first time that I've not been asked. I've been told that I couldn't kept the consolidated accounts. I really insisted and sometimes a co-legal officer from Renault came and said to me, well, we don't give those anymore. And I said, well, these documents have to be placed at the -- has to be given to shareholders. And he showed it to me under [indiscernible]. And he said -- I said I would like to have a copy, and he said, no. So the documents are there, but you can't really look at them. So Mr. Chairman, seriously, how can this kind of thing happen? Don't tell me that it's about the planet or CO2 or paper or anything else because the more trees we plant and the more we cut down and pulp, the better it is for the planet. So I don't -- really don't think that you should refuse to show shareholders the audited consolidated accounts.

So my second question is the dividend. I'm very happy to get a dividend. But is it really reasonable given the context that we're in today and the big losses of Renault, I know that the state is heavily present in your capital. I know that the French state needs money. And in fact, the French state is dying to gobble up anything it can get. So I think would it not be a better idea to keep the cash in order to invest when times are tough?

Okay. Thank you very much. Thank you for your question. I'm not going to talk about CO2 or plastic, but consolidated accounts are public. So I don't see why you shouldn't be able to consult them. I really don't think there's any reason to not let people consult these accounts, right? Quitterie, our Chief Legal Officer, will confirm this.

Well, so I think you're referring to the universal document, and it is published. It's on the website. So if you want, yes,

But I'm coming here, so I'd like -- I would like to get the document before the AGM. So I can ask questions.

Yes, I do understand. Very clear, very good. I'm sorry if you were frustrated -- just we will try and make -- do better next time.

Now for the dividend, what I can say is that our whole Board was unanimous on this decision that was taken because I do believe that for our shareholders of whom you are one and for your loyalty and you said this is your ninth AGM. So I understand. I'm glad that you're loyal to us. So the dividend is really important for the life of the group. We are asked very often for a dividend. So your perception is very reasonable. And there are circumstances when times were difficult, we did not give out a dividend. You may remember, we stopped giving our dividends because we were in a very bad situation. COVID didn't help us in any way, and we decided to stop distributing the dividend. But then we started again.

And very sincerely, the level that we are handing out is very reasonable. We have some shareholders sometimes who ask for a lot more. And they say, well, otherwise, why don't you buy back our shares and all that. And we need -- we try and be -- we try and resist that because we need to be coherent. And if you do international comparisons, you'll see that what I'm saying is happening everywhere. Obviously, if we thought that there was a major risk on Renault over the next few months and years, we wouldn't be saying this to you, but that's not the case. You have understood that we really are confident in our future over the next few years with what we've set up. So I do -- I have heard what you said. You've been very cautious and prudent, but we consider that what we are doing is also prudent, but it's really important to build loyalty with our shareholders. Thank you very much for your questions. And I suggest we take mic #3.

Hello, everyone. Mr. Chairman, you reminded us of the race wins by Renault and Alpine in history. I'd like to know what exactly is Renault going to do about motor racing because last year, Mr. de Meo told us would not simply be an also [indiscernible] in motorsports.

Yes. Thank you for your question. Maybe Francois can answer it.

Yes. When I looked at this subject, my first priority was to try and stabilize Formula 1, our Formula 1 department because it was in a very, very tough situation. And I hope that you will see that the results will bear out what we have done with the management, and we hope you will see the results -- better results this year. We were kind of scattered over all sorts of motorsports, but we didn't -- we were not talking up the right kind of results at all. And apart from Formula 1, the rest of the motor autosports corresponded to about 1 vehicle per year. And so as the MD, my -- it was my job to make choices. And so I had to give priority to a product. And I knew we couldn't do everything.

So we announced that little by little, we would prioritize Formula 1 and just concentrate on Formula 1. And I hope that next year, you'll be able to tell us that we were not also [indiscernible].

Yes, all the more so because this year, they've changed the rules as well. Francois knows a lot more detail about this than I do, but it certainly hope makes us hope that with a new engine and with a new car, we will perform better. We -- fingers crossed, of course, but we all hope for the best. Thank you very much for your question. Now let's come back here to mic #5.

Yes. Hello, everyone. I have a question. Today, as an employee of Renault and as a shareholder and as well as somebody who drives an electric vehicle every day, we've had to put up with the crisis of the of -- in the Strait of Hormuz every day, and we've seen that it's true people are buying more electric vehicles than before, but there are a few customers who are still holdouts. And as customers, as employees, we try and convince them, but it's very difficult because range really is something that people are afraid of. And what you presented earlier, the range extender, I think, was very interesting because I hope that, that will really help us to break into the market. And I'd like to know when exactly are these RE-EVs going to be on the market.

Yes. Thank you. We'd like to present all of -- we want to develop every car we develop in 2 years, so in 2 years' time. So maybe next year, we will tell you it's going to be even faster. No, no, no, no, no. It's a huge investment in terms of technology. So 2 years, 2 years. So as you can see, as you said, you told me to keep an eye on what's going on. And as you can see, I am. So I'm quite sure that the range extender will help people to accept electric vehicles more easily. Let's come back to mic #4.

I have 2 questions and a comment. My first question concerns the Gordini brand. What exactly do you plan to do with it? Because after all, this is a very prestigious brand. And given how things are going right now, Renault's sporty models are now called the Alpine version. I might suggest that the name of Gordini might be associated with maybe the sports versions of Dacia maybe, who knows, why not? What do you think of that? And what are your intentions from that point of view?

My second question concerns MOTRIO. So I know that MOTRIO, I think, is a Renault subsidiary unless that's changed and concerns more than 1,000 garages that were very often earlier that used to be Renault workshops and garages. So on the one hand, does the general public not realize that it's Renault. Most people I talk to them, they've never even heard of MOTRIO, let alone know that it's a Renault brand. So do you plan the 1,000 or over 1,000 MOTRIO garages as sales outlets for Renault in the 9,000 dealerships that you talked about. Do these 1,000 or 1,200 MOTRIO outlets, do you count them as Renault sales outlets as well or not?

And my comment now is -- now you presented -- you really presented the beautiful facade of the company. We were very good at it, but you did not present the back of the building. And there's a few rubbish dumps in the backyard, not just Renault, it happens everywhere. And I'm not trying to denigrate Renault or anything like that because this company fed me for 33 years, and I would like to really pay homage to the work that you're doing and the beautiful range that Renault has right now. But I'd like to know what about headcount? How many employees does Renault have? And what proportion of temp workers do you have in that? Because I've been informed that jobs are becoming more precarious within Renault. So there's a lot of temp workers. There's a lot of subcontractors. And they are working in illegal conditions.

And 2, 3 years ago, the company had a legal problem for illegal labor. And this had happened before in 2004 under Mr. [indiscernible]. And it is -- has once again been taken to court for illegal labor. So that subcontractors who are integrated into the company, things like that. So please give me some details on this. And thank you very much.

That's a lot of subjects that you've mentioned. So Francois will start.

Yes, let's take them one by one. The Gordini brand, of course, we are keeping the brand. There's no doubt about that. There are no projects right now. We've got nothing that we are planning, but I noted your suggestion. The priority of the group is to make a success of Alpine. It's a huge mission. I don't know how many European carmakers are continuing to develop a premium sports brand in Europe. We are doing it, and that's what we are focusing on. The A290 is working really well. The A390 that we've just launched has also been very well received.

You know that we are working on the platform that's also going to be renewing the A110. And that's what I want our teams to concentrate on to ensure that we are -- it is credible to have a French brand that is premium and sporty. MOTRIO. The 1,000 MOTRIO outlets are not counted as Renault dealerships. This network is working pretty well, especially in France. So we're going to continue with it. But from a more overall point of view, my priority is to reinforce the retention rate within the Renault distribution network and to resell the car for its second life. As you -- since you know us well, you know that we've always concentrated on customer loyalty during the warranty period. And I think Renault is among the best in that field, so the 4 or 5 years. And we've managed that as well for electric cars, we want to get back the cars for its second life and to be able to sell it again through the Renault network as used cars. And that means that this will give our customers affordable EVs, and that means that customers will have a much longer contact with us during the second life of the car.

One of the things -- reasons why people don't buy electric cars, if you think, well, will I buy a 4-year-old electric cars because there's only 4 years left on the warranty for the battery. But now what will happen is that the customer will buy a used car within the Renault network, but they will start with an 8-year guarantee for the battery. So it's much better. So that's what we plan to do. But we're keeping the MOTRIO network up and running.

Now as far as your last question is concerned, we do -- we are still keeping some temp workers in order to face up to the variability of the market. And sometimes it's difficult for us to recruit people in our plants. And every year, we recruit long-term contract holders in our plants. So we keep this balance. I can't comment on a concrete case, but it's quite normal that we are following up very, very closely the fact that we respect the rules and the laws and our human resources teams are very, very alert on that. And I'm quite sure that we are among the most virtuous and most benchmark companies in this field.

Yes. Thank you very much. I'm sorry, we've got too many questions. We have to move along, please, if you don't mind. So I'd like to ensure that everyone can get a turn. So thank you very much for your question. Now let's take 4 -- go ahead. Let's take mic 4, please keep it short. Please keep it short. Yes.

So one short remark. As an FCP unitholder, I'm surprised to see that we were not given the same level of information as other shareholders this year, contrary to what was done earlier. So will you publish the results and the turnover and the profit for each of the brands of the group, for example, Dacia and Alpine?

Yes. For the FCP units, I'll take the information. I didn't know this. I thought that everything was the same. I thought all elements had been transmitted at least electronically. Yes, by -- either by post or by e-mail. You should have received this. Maybe you could check whether you had a problem with the connection, but definitely, we look into it. I am astonished. Yes, we do communicate on volumes, but not on turnover. So -- and we don't plan to change that because I think the volumes do give you quite a clear idea of how our activity is evolving. So we don't communicate on the detail of the turnover figure within each model or within each brand. Okay. Should we take mic 3 now, please?

Yes. Mr. Chairman. In terms of production, in terms of the production tool, [indiscernible] said at the beginning of the week that there was an agreement apparently between Wondercraft and Mistral and Renault on the manufacturing of humanoid robots for use on the assembly line and also maybe outside. Could you say a couple of words on that, please, for us?

Yes. This is a really important subject and it's strategic for us. I was telling you that we were not going to diversify in all directions, but robotization is important because this, I think, is something -- is a sector in which we can contribute. I think we can also contribute in terms of scaling up of production, design to cost as well. And our partnership with Wondercraft has been extremely fruitful. And we do intend to reinforce it even further.

And as far as Renault is concerned, we are going to start using these robots for industrial applications. And in fact, we've got a couple of robots, the very first ones that are being tried out on the assembly line on work in working positions that are very complicated with a lot of diversity and very bad economy. So the first thing is, for example, is putting in tires because you have to go -- you have to go and pick up different kinds of tires from different places and tires are extremely heavy. So this is really something that interests us. So I think that manufacturing on this subject, like on digitization, on AI, we are the best or at least among the best worldwide. I think I believe we are better than the Chinese. I think in manufacturing, we are ahead of them.

And this is very much part of the way we modernize. We are modernizing our manufacturing. It's quite crazy to see -- it's amazing to see how this robot works. It's really yes, I have -- it's a very, very tough position. I know that. I know that. It is pretty impressive when you see how it works because it's interesting to have the industrial vision on this because it's certainly going to help us a lot.

Okay. We are almost at the end. I can see that we are -- we still have questions, but maybe we'll take one last question or maybe very quickly two questions so that we can answer them. And then we will -- so let's take mic 4. And if that's quick, we'll take another one.

Yes. Mr. Chairman, thank you very much for your presentation. I have two quick questions. One concerning data and the other one on competition. So in 2027, I think in February 2027, we are going to have digital passports for batteries. And then it's going to be Renault as the OEM that is going to be completely responsible and accountable for all of the components of the value chain of the battery. So in that framework, you've signed a lot of partnerships and joint ventures with foreign companies. So I wanted to know within these partnerships, can you really guarantee the sovereignty of the data and the fact that Renault can access this data without having to be under any kind of proprietary protocol?

And can you confirm that the traceability of cybersecurity of hosting and everything else is contractually signed and that they can -- this can be verified by regular audits, please?

If -- very quickly for my second question, -- we have a partnership with the Chinese group called [indiscernible] for the manufacturing of battery blocks, I think, in recycled aluminum. And they're there in plants like Ruitz and [indiscernible], where Mobility is also present in present in [indiscernible]. And I have two quick questions for you on this. There was a communication on this subject asking French and European authorities to act very quickly to -- for the safeguarding of the European automotive suppliers. So if you signed a joint venture with a Chinese group and they are being subsidized by the Chinese government, how would you -- how do you reconcile that with the commitment that you signed 2 years ago for the manifesto of the competitiveness of this stream of the automotive stream so as not to destabilize the historic suppliers of Renault who actually played the game for Renaulution and helped to improve your work. So this is really something that the automotive stream is very worried about.

Thank you very much. So I'll just take one last question. And then I would have, I think, hopefully covered everyone, and then we'll answer all the questions at the same time. Please be -- please keep it short, please, if you don't mind.

Well, thank you very much. I've been a shareholder of Renault for very, very many years, and I'll keep this quick. The problem is the price. So the price of electric cars is really the first and foremost barrier. The Renault 5 is a great success, but it's at the same price as bigger sedans. You said that the price would go down, and it would -- after how many years is the price going to start going down? And concretely, for example, the Renault 5 is sold at EUR 30,000. How many thousands of euros can it come down by and when? That's my first question.

And the second question also, I think, is interesting, I think, which my neighbor asked me to ask at the level of -- now for -- you have a defense branch. I'm sure that there's something that you can do in the defense industry because after all, the state is a shareholder. So have you got orders from them? And it's annoying. I'm sorry, it's because there's an echo in my ear says a gentleman. And what sort of things are you manufacturing? Those are my two questions.

Okay. Let's take all of these questions together. And let's keep it simple. You know that this is public. We do have a relationship with the DGA, which asked us some time ago to take a look at what we could do for machines or vehicles that could be used by our armies, and we are answering their requests, obviously. And right now, we are working on the DGA on projects for drones, for example. I'm sure you've heard about this. So -- and we are thinking about UAVs, obviously, but also on UGVs in association with partners, and this would obviously be for the French Army when we get the orders. But we have a great relationship with the state -- with the French state on these subjects. And I've always said that Renault would do always would -- always respond to a call to arms if the French state asked for it.

Okay. Now let's take a look at electric batteries. Our strategy is not to make batteries, but it is to be part of the value chain. So we have a laboratory in [indiscernible], which has been completely transformed, and it makes it possible for us to test battery chemistry, different chemistries ourselves. It helps us to test the compliance of what the suppliers give us and also what the suppliers give to our competitors to ensure that we've got the best. And we do all we can to drive down the costs and also, therefore, ensure even more traceability for all of the elements that you pointed out.

Now as far as cybersecurity and data are concerned, our strategy is to host -- most of our data in -- on the cloud, which is what most big corporate groups are doing. I mean there's definitely an interest in that. It's quite obvious because we are -- that's not our job. And also, as far as sovereignty is concerned, it's all hosted in Europe. Cybersecurity is an absolute priority. And in fact, it's an obsession. There's not a single month with the leadership team, and we don't have at least one session on cybersecurity. And the Board asks us to let them know all the time how we are doing in terms of cybersecurity. We take it very, very seriously. And this is not just an IT subject. This is a subject that's followed up very closely by the Executive Committee.

Now [indiscernible], you may like it or you may like it, but -- or you may not like it, but they were the very first to install a plant to make battery packs in aluminum in France. You were talking about the diversification of [indiscernible] on big plastic parts probably. Of course, the choice of Renault is not really that easy in terms of competitiveness. Toyota makes all of its big plastic parts in its own plants. So we did think about it. But in France and in Europe, if you trust your suppliers, including OP Mobility, we decided not to bring that into question, but we have a panel of suppliers. And we expect all of our suppliers to be competitive. And we know exactly at what price we need to buy our plastic parts.

And that brings me to your next question on our relationship with our suppliers. We've transformed our relationship with our suppliers because it used to be very transactional. But now the challenge because we know what the price is that we need to be at, but we have to start with the principle that some of our customers -- some of our competitors will probably have a plant, a screwdriver plant here, but all the parts will come from China, and we know the price in China. So our target cost is the prices in China plus immigration -- plus -- sorry, importing and assembly here. So the problem is how do we achieve this target.

We have to work with our suppliers. So we have to do away with all the specificities that we had that really was difficult for our suppliers. And we are going to now do -- work with our suppliers in order to achieve the profitability that they need. Ask the suppliers, I'm quite sure that they are happy to partner with us. We are the first ones to have done away with the system of tokens -- and we are the only ones, I think we don't have any tokens with our partners anymore, and we work -- we regularly reimburse the investments that our suppliers make, and they know that they are going to be paid in cash very regularly.

Now the price of electric cars. So it's true for electric cars as well as ICE cars. Europe is the only continent where the the market has not achieved the same level as it was before COVID. That's the only -- and the reason for that is because we had a tsunami of regulations that have added to the cost of our cars. So between now and 2030, there's going to be 103 new regulations that will apply to the automotive sector. And we, as Renault, we ask -- we are asking the [indiscernible] to change their software and to go from a logic of complete decarbonization with a lot of regulations and then people can't buy cars anymore to something that's a bit more reasonable where we can concentrate on driving down prices. And we are aiming to have a price of electric cars by 2030, which will be the same as that of a hybrid car. And you already covered the arms, the weapons.

Well, thank you, Francois. And the point Francois made about suppliers is quintessential. I took -- I mentioned the gamble taken by France and Renault's decision to place in France all the value added in the electric car business, and we do, of course, pay attention to that business. And our suppliers are very close indeed, many of them in France itself. The -- I mean, worst-case scenario would be for Asian OEMs gaining a foothold in France or elsewhere in Europe and using only Asian suppliers.

And on that, let me be clear. It is, of course, essential that not just French, but European authorities should take a stand on that and have firm rules about suppliers. Having said all that, I'd like to thank you all for these -- all these questions, very astute questions and covering a wide spectrum of issues.

And now I will need you, the shareholders, for the vote. And in terms of vote, well, you'll get your money worth as it were because there are many resolutions up for vote. And I will ask Quitterie to go -- to tell you all about the process and give you instructions.

Yes. Thank you, Chairman. And ladies and gentlemen, this meeting is called upon to be deliberate on 36 resolutions, of which 25 are ordinary and 11 extraordinary. Before presenting each of the resolutions, I'd like to tell you that the number of shares is 198,825,611 shares, representing 68.38% of the shares carrying voting rights in the ordinary meeting and 198,825,611 shares or 68.38% of the shares carrying voting rights in the extraordinary meeting, same numbers.

Anyway, the quorum required for the validity of the proceedings of both the ordinary and extraordinary general meetings have before. Let's watch this video explaining how the voting device works.

[Presentation]

These are the usual instructions. I believe there is subtitled, but if not, it basically reminds you that you're supposed to press the green, yellow or red button depending on whether you for, against or whether you abstain. And you're supposed to switch off your mobile phones during the vote and return the voting boxes after the AGM. All right.

Well, if you don't need any additional instructions, we start with resolutions in the ordinary part. Resolution 1 concerns the approval of the annual accounts for 2025, showing a loss of EUR 1,242,244,191.75. Let me remind you, these are the separate accounts of Renault S.A. and not the consolidated accounts of the Renault Group, which is the subject of the next resolution. Voting is now open.

[Voting]

Voting is closed and the resolution is adopted.

Resolution #2 concerns the approval of the group's consolidated accounts for the year 2025, showing a loss of EUR 10,794,555.31. Please vote now.

[Voting]

Voting is closed and the resolution has passed, is adopted.

Number three, allocation of the profit for the year 2025 and setting the dividend. The dividend is set as EUR 2.2 per share for the year 2025. The total amount would be EUR 637,648,741.40. The balance of the retained earnings after distribution will amount to EUR 8,588,740,357.46. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

Number four, take note of the statutory auditor's report on the factors used to determine the amount of the remuneration of redeemable shares. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

Number five, to take note of the information relating to the related party agreements and commitments entered into and authorized in previous years and whose performance continued in 2025 as described in the auditor's report. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

Moving on to Resolution #6 to approve the related party agreements entitled umbrella agreements entered into between the company and Nissan. On 31 March, Nissan will not take part in the vote.

[Voting]

Voting is closed and the resolution is adopted.

Number 7, to approve the related party agreement entitled termination agreement of the Ampere investment agreement entered into between company and Nissan on 31 March 2025. Nissan will not take part in this vote.

[Voting]

Voting is closed and the resolution is adopted. The next one is #8. Again, the related party agreement, second amendment to the framework agreement entered into between the company and Nissan and Nissan, of course, is not taking part in this vote. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

The next one is called second amendment and restatement of the new alliance agreement entered into between company and Nissan on 31 March 2025. Nissan will not take part in the vote. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

Resolution #10 proposes to ratify the co-opting of Mr. François Provos as a Director to replace Mr. Luca de Meo for the remainder of the latter term of office, i.e., until the end of the 2027 AGM. Please vote now.

[Voting]

Voting is now closed.

Resolution #11 to appoint Mrs. Marie-José Donsion as an Independent Director for a term of 4 years. Please vote now.

[Voting]

Voting is now closed, and the resolution is adopted. And I should like to congratulate Marie-José Donsion and welcome her to the Board.

Number 12, to renew KPMG's appointment as statutory auditor for a period of 6 years. Please vote now.

[Voting]

Voting is closed and the resolution is adopted. We move on to #13 to renew the appointment of Forvis Mazars as statutory auditor for a period of 6 years. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

Number 14, to renew KPMG's mandate as statutory auditor responsible for the sustainability assurance engagement for a period of 6 years. Please vote now.

[Voting]

Voting is closed. Resolution adopted. We move on to 15 to renew the appointment of Forvis Mazars as statutory auditor responsible for certifying sustainability-related information for a period of 6 years. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

We move on to #16, and this is approving the information relating to the compensation to -- for the year 2025 for all corporate officers vote. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

We move on to #17 to approve the compensation paid during or awarded for the year 2025 to Jean-Dominique Senard, Chairman of the Board. Please vote now.

[Voting]

Voting is closed. The resolution is adopted.

We move on to #18 to approve the remuneration paid during or awarded for the year 2025 to Mr. Luca de Meo, CEO until 15th July 2025.

[Voting]

Voting is closed. The resolution is adopted.

#19 to approve the compensation paid during or awarded for the year 2025 to Mr. Duncan Minto, acting CEO from 15 July to 30 July 2025.

[Voting]

Voting is closed and the resolution is adopted.

Number 20, to approve the compensation paid during or awarded for the year 2025 to Mr. François Provos, CEO, with effect from 31 July 2025. Please vote now.

[Voting]

Voting is closed. The resolution is adopted. Number 21, to approve the remuneration policy for the Chairman of the Board for the year 2026. Please vote now. Please vote now.

[Voting]

Voting is closed and the resolution is adopted. Number 27, to approve the compensation policy for the CEO for the year 2026. Please vote now.

[Voting]

Voting is closed and the resolution is adopted. We move on to 23 to approve the directors' compensation policy for the year 2026. Please vote now.

[Voting]

Voting is closed. Resolution adopted.

Number 24, to authorize the Board of Directors to buy and sell shares of the company for a maximum period of 18 months and up to a limit of 10% of the share capital. The authorization enables the company to implement its own share buyback program. Please vote now.

[Voting]

Voting is closed. Resolution is adopted. We move on to resolutions falling within the remit of the extraordinary general meeting. Purpose of the 25th resolution is to authorize the Board of Directors to reduce the company's share capital by canceling shares for a maximum period of 18 months and up to a limit of 10% of the share capital. This resolution is linked to the previous one concerning the share buyback program. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

Number 26, to authorize the Board to increase the share capital by capitalizing reserves, profits or premiums. I'd like to draw your attention to the fact that the meeting will vote on this resolution subject to the quorum and majority requirements applicable to the ordinary general meetings. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

Number 27, to delegate to the Board of Directors for a period of 26 months, the authority to increase the share capital whilst maintaining shareholders' preemptive subscription rights. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

Number 28, to delegate to the Board of Directors for a period of 26 months the power to increase the share capital with removal of shareholders' preemptive subscription rights and with optional priority period in the context of public offerings other than private placements. Please vote now.

[Voting]

Voting is closed. Resolution is adopted.

Number 29 is to delegate to the Board of Directors for a period of 26 months the power to increase the share capital with removal of shareholders' preemptive subscription rights by way of private placements with restricted circles of investors or qualified investors. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

30 is to delegate to the Board of Directors for a period of 26 months the powers necessary to increase the share capital in consideration of contributions in kind that may be made to the company. Please vote now.

[Voting]

Voting is closed. Resolution is adopted. The first resolution is to delegate to the Board of Directors for a period of 26 months the authority to carry out capital increases reserved for the group employees who are members of the company's savings scheme with removing of the shareholders' preemptive subscription rights. Please vote now.

[Voting]

Voting is closed and the resolution is adopted. Number

32 to amend Paragraph C of Article 11 of the company's Articles of Association relating to the procedures for appointing directors representing employees in order to comply with the new regulations on gender balance on Board of Directors. Please vote now.

[Voting]

Voting is closed and the resolution is adopted. Number 33 is to amend Paragraph D of Article 11 of the company's Articles of Association relating to the procedures for appointing the director representing employee shareholders in order to take account of the new regulations on gender balance on Board of Directors. Please vote now.

[Voting]

Voting is closed. The adoption -- the resolution is adopted. Number 34 is to amend Article 13 of the company's Articles of Association to clarify the procedures for the Board of Directors to take decisions by written consultation. Please vote now.

[Voting]

Resolution is carried. We move on to #35 to amend Paragraph A of Article 11 and Articles 12, 13, 15, 17 and 25 and 28 of the company's Articles of Association, in particular to comply with recent legislative and regulatory changes. Please vote now.

[Voting]

Voting is closed and the resolution is adopted.

And finally, the 36th and final resolution aims to grant the necessary powers to carry out the legal formalities required following this AGM, please vote now.

[Voting]

Voting is closed. The resolution is indeed adopted. And indeed, all resolutions have been put to the vote. The detailed results of the votes will be published on the company's website, and I now give the floor back to the Chairman of the Board to conclude this AGM. Thank you, everyone.

Thank you for this positive vote and many thanks to Quitterie for this before. And it's worthy of the Guinness Book of World Records, so many resolutions, some of them adopted. There's nothing left on the agenda. So the meeting stands adjourned. I'd like to thank you once again. And for those of you who wish to meet us personally, Francois and the leadership team to take a closer look at the beautiful cars here up on display, this is your chance. Well to anybody listening, this is the end of the broadcast.

Good morning, everyone. Welcome to Renault Group's First Quarter 2026 Conference Call. I remind you that this call is broadcast live and will be available in replay version on our website. This presentation will be done by Duncan Minto, the Group CFO, and will be followed by a Q&A session. Duncan, the floor is yours.

Thanks, Florent. Good morning, everybody, or good afternoon, depending on where you're connecting. It's -- pleased to be with you this morning to present our Q1 revenue and sales performance. So let's go straight ahead.

In Q1, group revenue increased by 7.3% compared to last year and stood at EUR 12.5 billion. At constant exchange rates, it was up 8.8%. As you know, in 2026, Mobility Services revenue has been reintegrated in the Automotive segment following the reorganization of these activities. This reintegration amounted to EUR 17 million in Q1 2026 and to EUR 23 million in Q1 last year. Thus, Automotive revenue stood at EUR 10.8 billion this quarter compared to the EUR 10.2 billion in Q1 2025, which is an increase of 6.5% or 8% at constant exchange rates. Mobilize Financial Services revenue was up 13% to EUR 1.7 billion.

So drilling into the Automotive revenue, which stood once again at EUR 10.8 billion in Q1, up 8% at constant exchange rates. The negative ForEx impact was minus 1.5 points, mainly related to the devaluation of the Turkish lira and to a lesser extent, the Argentinian peso. A strong sales increase in Turkey implied a more negative impact of the Turkish lira on revenue. However, it should be partly offset in terms of margin by the positive effect on production costs. The volume effect, the second slot, was negative by minus 2.1 points in the quarter, mainly due to the minus 3.3% decrease in group registrations.

In addition, it's worth highlighting that the independent dealer network reduction in Q1 '26 versus Q1 '25 had no impact on the volume effect. It reflected timing differences mainly related to Euro 6e-bis regulatory change. We had vehicles registered and invoiced at the end of 2025, which were delivered in the first quarter of this year and thus removed from inventory at this moment in time.

So looking at the registrations, worldwide sales stood at 546,000 units in the first quarter, down 3.3% compared to Q1 '25. This was mainly due to one-off issues at Dacia, while Renault and Alpine sales grew. In Europe, the group confirmed its #3 position in the passenger car and light commercial vehicle market. So looking by brand, we see Renault brand sales were up 2.2% globally versus last year, thanks to the growth of electrified vehicles and the full diversity availability of light commercial vehicles.

On international markets, Renault brand continues to consolidate its international footprint, supported by a renewed product lineup, notably in India, Morocco and Colombia, which were all up double digits. In Turkey, Renault maintained its leadership with total sales up 13% in a market down 4%. This trend will be reinforced throughout the year with our recent launches such as Renault Duster, sorry, in India as well as the upcoming launch of Renault Boreal in Turkey. Dacia sales were down 16.3% versus last year. The severe weather conditions implied a 10-day closure of the Strait of Gibraltar and floods in our Tangier plant, leading to logistics and production disruptions in the first 2 months of the year.

Sales, however, are showing signs of recovery in March with a 1.9% growth in Europe compared to March 2025, and Dacia can rely on a strong order book fueled by double-digit order intake year-to-date. The several thousand units of production losses should be caught up progressively in the course of the first half of the year.

Alpine sales were up by 54.7%, essentially driven by A290, and I'll come back later on this. In March, the group sales started to recover in total with a 5.3% global performance year-on-year, outperforming the market. As illustrated in recent years, a 2-leg strategy is playing out very positively for Renault Group, and we are set to continue benefiting from a strong product momentum and the right technologies to address these growing markets.

First, we are accelerating in electric vehicles in Europe. At group level, BEV sales were up 21%, and the mix reached 17% of the sales in the first quarter 2026, which is up 4 points year-on-year. Under the Renault brand, we now offer 5 electric passenger cars covering the A to C segments, securing a strong position in Europe's core market.

Renault brand EV sales increased by 43% in Q1 compared to last year. Renault EV mix continued to improve and reached 24% of sales at the end of Q1 2026. The brand was #1 EV in France and in the B segment EV in Europe, benefiting from the success of Renault 5, which was the #1 BEV in most European markets, the progressive ramp-up of Renault 4 and the solid performance of Scenic. This momentum will be further supported by the launch of Twingo, which deliveries -- for which deliveries are about -- just about to start.

Beyond the Renault brand, the group's EV offering momentum is complemented by Dacia Spring model year 2026, already a key player in affordable EVs and by Alpine's electric offensive with the A290 already on the road and the A390 to come soon.

On the other hand, we intend to pursue the electrification of our ICE engines, thanks to best-in-class hybrid technology. The group confirmed its second position in the HEV market in Europe. Hybrid mix stood at 35% for the group in Q1 2026, up strongly compared to last year. Dacia HEV sales were up 49%, driven by Duster and Bigster, supporting the group's performance. Full hybrid E-Tech also continued to perform strongly across Renault brands core models, representing more than 40% of the total sales, confirming their key role in the brand's balanced electrification strategy. The brand stood second place in HEV in Europe.

All in all, electrified sales of the group grew 12% and represented, respectively, nearly 2/3 of Renault brands sales and more than 30% of Dacia sales in Q1. Thus at group level, electrified vehicles represented more than 1 out of 2 sales in Europe, up 9 points compared to the previous year. This momentum is expected to pursue in the coming quarters with the recent launch of Twingo and the full rollout of Clio full hybrid.

In Europe, Renault brand sales were up 3.8% versus last year. Renault gained one position and was ranked #2 in passenger car and light commercial vehicles with Clio as best-selling model. The brand was also #2 in LCV in Europe, supported by the full diversity availability of the LCV range, we benefited from a 15% sales growth following a transition year in 2025. Worldwide LCV sales increased by almost 7% year-on-year this quarter.

Dacia maintained its position in the top 10 Automotive brands across all channels for passenger cars in Europe and is top 3 in the retail channel. The brand's performance was especially strong in the retail market, which remains at the heart of the strategy. This reached a high level of 77% of passenger car sales.

Duster is #3 SUV in the retail channel in Europe. We benefit from an increasingly attractive product lineup, notably thanks to the success of LPG and hybrid engines. The launch of Duster and Bigster hybrid G150 4x4 as well as the Sandero LPG automatic transmission also strongly contributed to order intake momentum. This gives us good confidence in improving Dacia's sales performance in the coming months.

Let's move to Alpine. After a triple-digit growth record in 2025, Alpine confirms the upward trend in Q1 '26 with more than 3,200 registrations worldwide which is up 55%. Alpine continues to expand sales in Europe, particularly in the U.K., which becomes its second most significant market and also in Germany and Spain. A290 is the best seller brands model with almost 2,500 registrations worldwide, up 64%. And the A390, the brand's first 5-seat sport Fastback now being launched in most European countries who will support the brand by reaching new customers and further consolidating the sales growth. But above and beyond growth, we remain fully focused on sales quality as we illustrate on this slide.

We still run our plants at a high utilization rate of above 90%. This was supported by the improvement of Chennai utilization rate in India. We continue to implement a strict discipline to the management of our total inventories, which stood at 554,000 units at the end of March. This level of inventory will enable us to smoothly operate during Q2, which is traditionally stronger in terms of registrations. This total level of stock is underpinned by a strong order book in Europe, which stood at 2 months of forward sales versus 1.5 months at the end of December 2025. It was fueled by a double-digit order intake growth since the start of the year with a significant acceleration in electric vehicles.

We continue to uphold our commercial policy, which sets for residual value over volume. As an example, our group's retail channel mix was 58% of PC sales, 16 points above the market. Renault brand reduced its exposure to short-term rental channel and grew in the retail channel by 8.5% on our 5 main European countries. This notably supports meaningfully higher residual values against competition. Our residual values are 4 to 13 points above market average, thanks to this holistic approach to a commercial policy. All this will continue to be embodied in our ongoing product offensive.

On inventories, as mentioned earlier, the total stood at 554,000 units at the end of March. We expect total inventories to be slightly lower at the end of June compared to March. So let's turn now to one of the major parts of growth, which was sales to partners.

The strong positive impact was 5.9 points of revenue growth in the first quarter, driven primarily by the performance of partner programs, especially Nissan Micra. It also benefited from positive effects of scope evolution, as we've highlighted, the integration of RNAIPL, our Indian manufacturing sites contributed around EUR 200 million in quarter 1 2026. The full year revenue for this should be around EUR 1 billion, but I'll remind you with a margin close to 0 on this activity.

Secondly, we began the ramp-up of the distribution of Geely vehicles in Brazil. It's the first phase of our agreement with Geely with local production through the Renault do Brasil joint venture set to begin in the coming months.

Let's now have a look at price, product mix and geographical effects. Price effect was slightly positive at plus 1 point in the first quarter. Price increases in international markets, which were there to compensate for the negative FX were partly offset by pricing pressure in Europe. This price pressure in Europe is expected to be pursued throughout the year. Product mix was solid, plus 2.6 points, mostly due to the success of electric vehicles and also the transition phase between Clio 5 and Clio 6, the ramp-up of Bigster and, to some extent, also Master. The geographical mix at minus 0.1 points was mainly explained by the sales increase in India.

The last item, other impacted positively revenue by 0.7 points in the quarter primarily related to solid performance of parts and accessories sales.

Let's move to Mobilize Financial Services. New financing production was stable versus quarter 1 2025. The average performing assets increased by 4.8% to EUR 61.9 billion, thanks mostly to the increase in the average ticket per vehicle over the last years. All in all, Mobilize Financial Services revenues were up 13% to EUR 1.7 billion, mainly driven, as I said, by the ticket per vehicle, but also still benefiting from the growing interest rate portfolio from previous years.

So having gone through the revenues, let's look towards the outlook. This morning, we confirm our guidance for 2026, with a group operating margin around 5.5% of group revenue and an Automotive free cash flow around EUR 1 billion. As per the usual seasonal patterns, H2 operating margin is expected to be higher than H1. I remind you that last year, H1 margin stood at 6%, while H2 margin stood at 6.5% of revenue. In 2026, international expansion, increasing sales to partners, the growing share of electric vehicles and the consolidation of RNAIPL on a full year basis will drive revenue growth, although being dilutive on margins. Cost reduction remains a key priority in 2026 and beyond. And as we communicated during the 2025 full year results, our '26 guidance assumes a substantial negative impact from raw materials and inflation.

For a reminder, I said it would probably be close to twice the positive -- or the negative impact will be close to twice the positive impact we saw in 2025. As of Q1, our purchasing and functions performance are well oriented. Considering the geopolitical environment, we've decided to take additional measures to mitigate the potential impact of the Middle East crisis on raw materials, energy and logistics costs. At this stage, we see no meaningful impact, but we are monitoring the situation very closely. There are some potential risks considering the degree of uncertainty related to the situation. But as an automotive manufacturer, we must remain vigilant.

2026 Automotive free cash flow will, as I remind you, include the EUR 350 million dividend from Mobilize Financial Services, and we have expected a negative change in working capital in '26 to continue to unwind the positive change we saw at the end of 2024. So to conclude, as you can see today, we delivered strong revenue growth in Q1 despite the challenging environment. It was supported by both Automotive and Mobilize Financial Services, demonstrating the robustness of the operating model and as stated in FutuREady. In March, we started to recover in terms of sales performance, and we see that our order intake continues to evolve positively. This confirms the relevance of our comprehensive product lineup in the current environment supported by a 2-leg strategy both EV and HEV.

So thank you for your attention this morning, and I think we can now go over to the Q&A.

Thank you, Duncan. Yes, indeed, we will open the Q&A session. [Operator Instructions] And the first question will come from Michael Foundoukidis from ODDO BHF.

Congrats on the Q1 performance. So I have 2 questions. First, on margins. You highlighted the strong BEV growth, and you had a meaningful contributions from sales to partners, both of which you have previously described as margin dilutive, including this morning. Could you maybe help us better quantify the expected margin impact of this mix effect this year? And how it should be factored into your 5.5% full year margin guidance?

And maybe second question on the Middle East regarding the specific cost risk on raw mats, energy and logistics you mentioned. Do you have any estimate of the incremental gross exposure you're aiming to mitigate? And could you give us more color on the key levers you're using to offset these pressures?

Thanks, Michael. So yes, we are seeing very strong BEV growth and also sales to partners. The sales to partners were agreements that were concluded a while back, so obviously, they were very clearly built into our assumptions for FutuREady and also for the year. I confirm that sales to partners and EV are profitable for the group. It's just that we are dilutive compared to the average for the group. I guess the most difficult environment would be the agreement we have in India because our margin markup is on the -- what we call value added, so the actual production cost of the workforce. And therefore, that's why I highlight the very strong growth in revenue has very little margin in India.

But in terms of electric vehicles, you've got Twingo on the screen, which will be hitting the street soon. We're comfortable with the margin that we're being able to do that. We're seeing some very strong demand. Renault 5 is also another good contributor and rising. A290, Philippe's on my left here, is strong. Obviously, as you know, we have improvements to come in the C segment vehicles. But overall, it's a real confirmation that the group strategy in terms of having a highly competitive EV platforms is the right one to go with. You're also seeing that if we're seeing partner growth on these platforms, you're seeing them on the -- maybe the Nissan Micra today. You'll see them in the future also on Ford. If people are coming to us is because we have a highly competitive offer. So I think we're very well positioned to benefit from that uptick.

But yes, it is slightly margin dilutive compared to the average of the range. But increasing EV volumes will also give us a bigger portfolio to work on in terms of cost reduction going forward. So all in all, this is pretty much in line with what we thought we were going to be doing. And also, I see it a positive overall for the group.

In terms of Middle East, raw materials, obviously, we have some hedging on this. We have some contracts on the energy side. So this is not something I'm seeing impacting first half of the year. So we'll see how those come into time. And it's more about, as I said, as an automotive manufacturer, we have very volatile external environment, and we have to prepare ourselves for the future. So we have options ready in terms of, obviously, everything we can do internally on -- that's our job to manage that in terms of fixed costs, but also looking at how we can optimize our variable costs be it through logistics routes, be it through energy consumption within sites, be it through purchasing and sourcing.

So I won't call out line by line our actions, but it's more about us looking ahead because at the moment, we're not seeing any impact short term in terms of demand. But we're obviously reading all the flashes on the price of oil and the impacts of this could have coming further down the line.

And our next question will come from Pushkar Tendolkar from HSBC.

Hope you all can hear me. So 2 questions from my side. First is on pricing, positive print and you mentioned the offset of FX in the international markets. I just wanted to check if there is also an incremental benefit that you get in Europe versus what you expected earlier from the tight supply at Dacia and then also from the model changeover. For example, you have to -- you can -- you may have a lower discount on a Clio 6 versus a Clio 5. So does that also feed into this plus 1% pricing number?

Second is on the competition and particularly in Europe -- where are you seeing this competition? I mean, is it the Chinese entirely? Or do you see increasing competition from your fellow European peers as well? Yes, those are my 2 questions.

Okay. Pushkar, thanks very much. Yes, in the pricing bucket, we -- sorry, I confirm what I said it was offsetting the FX negative internationally, but obviously partly impacted by the highly competitive situation in Europe. And yes, you're right, in there, you would see -- in that bucket, you'd see both what we call MSRP, the sticker price increase, but also any incentives. So the 2 are shown in the same bucket. So when we talked about our outlook for 2026, we didn't have high expectations for a positive pricing environment in Europe. We knew it was going to be competitive and competitive, I can confirm.

In terms of calling out competition, is it just Chinese? Is it other generalist market? I'd say it's broadly across the whole market. But you mentioned Dacia. Dacia is 77% retail-focused. So it's very much -- we're not going to go spreading the volumes across other channels. It's very much focused on that segment alone, and it's not a discounting model.

So I mean, obviously, you have colleagues with us this morning. We have our Chief Growth Officer, Fabrice. So I don't know if you want to say anything. Obviously, everyone always asks us which competitor is the worst in pricing, and we never really comment. But do you want to add anything?

No. I think we are following that month after month. And of course, in Europe, we are looking at the increase of the commercial pressure, mainly represented by higher discounts from many of our competitors. From our side, we have a lot of factors which enable you to remain quite stable and to protect our residual value. The first one is the appeal of the product. You saw the picture of our new products. We are working in very traditional segments for us, A, B and C. And on these segments, we are capable to propose like Clio 6 products, which are very attractive and which enable us not to do discount and not to go on tactical channels, and we are monitoring that month after month. And I can tell you that we are very, very stable and far below average in terms of discount.

The second point, which is beneficial for us now is our powertrain offer because we can offer now for Dacia and for Renault full hybrid with very low consumption. We have also a lot of attractiveness, for instance, with the 4x4 LPG automatic transmission for Sandero, for instance, or Duster or Bigster, which are very important, very appealing in terms of product.

And the last point, of course, is today's circumstances where people now -- before they were hesitating between different powertrain, now they want to go to EV, of course, in Europe. And this lack of hesitation and this kind of determination to go to new -- to shift to EV, of course, is helping us a lot to manage our price at the good level. Not only of new car prices, but also the used car prices in terms of EV now are well oriented, and that's a good point for us. So we have 3 factors, and we use that to keep the safest possible in terms of residual value and net pricing.

So we'll jump to the next question, which will come from Horst Schneider from Bank of America.

I hope you can hear me. The first question that I have is when we look at the progression of sales in the first quarter, we were seeing this weak January and February at Dacia and you explained the reasons well, and we understand that. I think March already was a lot better. So therefore, I want to get a feeling what's the run rate going forward. So the magnitude of sales growth we have seen in March is that something we can also expect for Q2. And can you confirm that, take this India consolidation maybe aside, that the sales growth is going to be positive in 2026? That's number one.

On -- number two is when we look at the high oil price, you commented that it doesn't impact you yet a lot, but I want to get more information mainly if it's changing already consumer behavior. We are seeing that your BEV sales are performing well. You said it's slightly dilutive to mix, we know that. But what is it going forward? Is now from here BEV demand to accelerate a lot more? And could that basically have then a more negative impact on the earnings in 2026?

Okay. Horst, thanks for the questions. So in terms of sales, you said Jan-Feb was impacted on the Dacia side. March, we started to see a positive impact compared to last year. We mentioned that the order take was up double digits. And so with the strong order book of 2 months of forward-looking sales, we will see positive sales in Q2. Now, I'm not sure we'll catch up 100% of what we lost out. Let's see, we don't push. So we'll do things in a normal way. We're not going to do any push sales.

So we'll see how that flows through. But I remind you that we said when we published the '25 results, that we weren't actually counting on Dacia growth this year. So it was more steady control of the business model. So even if we do catch up a bit in Q2, it's not the element that I think will be calling out for a full year sales growth on Dacia alone, okay? Let's see how things go. However, our sales internationally and on the Renault side is forecasting a sales growth full year. So I confirm that, that's the outlook as we see it today.

I can just follow up. That means also group is positive in 2026, not just the international sales. The group is positive, right?

Yes. And keep in mind, for the subquestion on the India effect. So it will keep supporting the sales to partners notably until the annualization, which will occur on August 1 because we started to consolidate the RNAIPL activities on August 1. So this is something you need to keep in mind for your H2 forecast. Okay?

Second question was on the impact of orders. So yes, we are seeing an uptick in the EV mix in terms of order take in April. It's quite significant. At the same time, we've got Twingo, R5, R4, A290. So is it our product attractiveness, our product portfolio or some reaction to Middle East crisis? Or is it both? Difficult to tell short term right now. So let's just say it's a confirmation that we have the right product to be able to answer the market demand.

Now I said it was dilutive. Once again, I think we have a very competitive offer in the A and B segments. So it's something that contributes in margin per unit. In percentage, it's slightly dilutive. So it's not a killer. And we'd certainly -- obviously the drop down to margin in mass -- net income in mass. That's what allows us to pay a dividend and generate cash. So this is also constructing the business model for the future. So we know it's something that's going to happen as time goes on. Yes, there is an acceleration in order take in April. Let's see how it goes forward. You wanted to follow up?

But Duncan, there's not a downtrading. There's more shift to BEVs, but not that people trade down, let's say, from C to B segment. You don't see that, right?

No, no. So it's really people are coming in and as Fabrice said earlier, some people in the past few months may have been hesitating. There was a clear move to...

In Q1, the C and above segment mix progressed year-on-year. So this is something that needs factoring. But again, we already mentioned when releasing the full year results, the dilutive effect of the sales to partners and BEVs compared to group level, it doesn't mean that we don't keep progressing. We told you during FutuREady about the road maps to reduce the EV costs, and so it remains a priority, and we will notably introduce the LFP cell-to-pack batteries progressively on all of our cars in 2026.

What we see also is that the demand now is oriented on B or a segment like Twingo, R5 and that's why we are very focused on retail channel, which is not as under pressure as what we could see on the C segment with fleet, for instance. It means it's -- not only we don't see any downgrade, but we focus on the most profitable channels, whatever the segment type, which is good.

We will now take the next question from Stuart Pearson from Oxcap Analytics.

So a few just remaining. On the product mix side, I just wonder, you've spoken about EVs and the impact there and the profitability there. But on Clio 6, obviously, that's a driver for the revenue, but presumably you're adding content to that. So just structurally, is that a much more profitable car than Clio 5 or very similar? Obviously, early in the life cycle, it might be more profitable. But just structurally, do you think that's a more profitable product? So just wondering how that product mix might drop through.

And then on working capital, Duncan, I think you mentioned, obviously, the unwind you expect partially from last year. But I just wonder whether the H1, H2 dynamic this year could be a bit different because of this volume catch-up we're seeing in Q2. I'm not sure how that will impact your production and obviously, receivables, et cetera, in H1. It's normally a negative for your working capital in H1, of course, so I wonder whether that might be slightly less negative than we might have thought because of this catch-up effect.

And then just very quickly, not sure if you can say anything on the Ford LCV talks, whether we might expect any update on that? Anything to report there would be interesting.

Stuart, could you just repeat the last one? On Ford. Sorry, was it Ford LCV?

Yes, the potential tie-up there, whether there's any potential time line when we might hear something on that?

Okay. I'll take the last one first. It's the easiest one. Nothing new to report. As we said, we have discussions on the passenger car side of things that are progressing well. And we have opportunities to look at LCV going forward, but the product life cycle means that it's further out in the distance. So it's not something if it were to happen that is a short-term subject.

Okay. On product mix, so Clio 6 to Clio 5. There's not a major difference. I mean, yes, we have equipped the car, but I think it's also the fact that hybrid mix is so high. It's such a competitive offer. I mean, Fabrice, I don't know if you want to come back on this, but it's now 89 grams...

Yes. I would say with Clio, we have a smooth transition, but with a big change. If you take a bigger loop on Clio story. 4, 5 years ago, Clio was really rental car oriented. And now we are mainly retail and hybrid. And of course, when you do this kind of change, you secure long-term profitability on a solid basis. That's what we are doing with the change between Clio 5 and Clio 6 with a very competitive production base. For us, it allows to have a complementary offer to R5, R4 and to have once again this 2-leg strategy on the B segment, which is the most important in Europe.

But don't expect too many margin differences. H1, H2, so yes, we will catch up a little bit of production on the Dacia side back in Q2. But -- we are running at very high capacity. So the upside, that's why we can't just turn the thing back on and catch up within a couple of weeks. So the uptick is not that much. Working capital is normally a little bit negative in the first half of the year. So I don't think there'll be any major differences in the H1, H2. We obviously called out that we expect the margin to be stronger in H2 than H1 as it has been traditionally in terms of seasonality.

The next question will come from Christian Frenes from Goldman Sachs.

The first question on the positive side, light commercial vehicles, very strong growth, especially in Europe. I'm wondering what the visibility is you have into the rest of the year, and whether we should expect similar growth rates going forward? And also, any comment you can make on the operating margin of light commercial vehicles at least vis-a-vis last year or any qualitative comments you can make there?

And my second question is maybe at the other end of the spectrum. If we look at Dacia, you sound more muted on the sales recovery potential, even though we saw a strong finish -- at least a positive acceleration in the growth trends. You also have a powertrain shift there in Dacia. I'm wondering what sort of operating margin impact we should expect, Again, just qualitative comments in H2 for Dacia, year-on-year. If you can just talk about that.

Yes. So LCV growth, obviously, we're off low comparison basis. Last year, we had the -- we didn't have the full availability of Masters. I think that's what you're referring to. So you are seeing probably easier comparison basis. But if I move off comparing 1 quarter to the previous quarter, if you start to look at the order book, sales going forward on LCV, it's actually a little bit stronger than the group average. So I'd say the outlook is positive.

Operating margin, as you know, is in the double-digit range. And I'm not expecting a huge change this year to last year. It's a slight upside positive. Let's just see we've got a low -- 1 quarter done, 3 to go. So solid performance. Production is going smoothly. That's part of the reason why we're seeing the utilization rates above 90% because Batilly is producing well. We're also producing for partners on this. So that's positive as well. More Master in the mix is good. And in terms of product dynamic, we have Traffic E-Tech, which is at the end of the year. So that's more of a bonus for next year. But in terms of having a full and comprehensive lineup, I think the LCV range is a solid attribute for the group.

Maybe if I can add just, Christian, in terms of run rate, keep in mind, of course, that the comparison base is quite low. In fact, in H1, we were down 29% in H1 '25 on the LCV in Europe. So of course, the comparison is more favorable in this start to the year and will become less easy, I would say, in H2.

And then your second point, I'd like to personally apologize to Katrin, who's the boss of Dacia. She's here today. So I wouldn't want to be muted in any way in looking at the performance. It was impacted, as you say, in Q1. The order take is double-digit up. Obviously, Dacia has its strong position within that group average of 2 months of order take. But it's not a push model. So if we catch up everything in Q2, brilliant. If we don't, we'll keep going at our pace, and we'll deliver in the terms of a natural flow to that sales trend.

Now you pointed out and you're quite right to point out that we do have a powertrain update. So Euro 6e-bis was rolled out. And that is probably a slight positive in the price because we're pricing -- we're trying to price some of it. But it is a cost for us in terms of margin. So that was something we called out in 2025 full year results saying that this is going to impact us as of Q1. And it's -- that's why you'll see a negative mix impact coming through that in the operating margin line. But once again, I apologize, Katrin. It's not a muted message. The performance is there and the products strongly desired by customers. So good job. Keep going.

And just as a reminder, in terms of guidance on the margin, we said that the price mix and enrichment bucket in our margin for full year '26 will be negative by several hundred millions and notably due to the fact that there is this regulatory weight on the margin, which is difficult to pass through to the customers.

And the next question will come from Thomas Besson, Thomas from Kepler Cheuvreux.

First, I'd like to ask you something about the trends for orders in April. I understand Q1 orders are up on a base that was really easy, for instance, for LCVs. You mentioned the positive trends for BEVs in April. But can you comment about what you expect in terms of development for the European market in places that are directly impacted by higher oil prices, whether it's Europe or India where you think we are going to see the same sustained momentum? So I find it great, but the orders go up from the end of December to the end of March. But do you expect that momentum to continue in Q2? Or do you expect the momentum to, at some point, reflect the change in the environment, which I think is visible for everyone. That's the first question.

The second, I wanted to make sure I understood -- it seems to me that, Florent, you said the C segment's share is growing up. I had the impression it was down to about 1/3 versus about 40% last year. Just wanted to make sure about that. And whether it was possibly linked with delayed shipment of Bigster and Duster that are a bit down in Q1, possibly because of the Gibraltar stuff, you mentioned the weather conditions. Just want to clarify at this point, and I would like you to also maybe confirm the -- any -- whether there is any friction or none at all between Duster and Bigster, please.

Thomas, thank you for the questions. So we're getting questions on a shorter and shorter time horizon. So Q1 order take was strong. April order take, we had mentioned that the EV mix was certainly rising, but April order take continues to be strong. So not seen anything slow down compared to what we're talking about in -- at the stop date of 31st of March. So we're seeing the same trend with an acceleration in the pickup of EV mix.

Then you said, do we expect that to continue throughout the whole year? No. I think we said, certainly, we don't see any impacts of the Middle East situation as we have right now, but we have to see that going forward, which is why we're trying to be prudent in terms of the decisions that we have in our hands on managing fixed costs, managing variable costs and we will adjust production to any change in demand.

So obviously, I think we have a very flexible system, and we do monitor it, as Fabrice has also called out, mix changes all the time, make sure we're playing in the right channel. So proven at this stage, nothing seen short term, strong continuation in April. But obviously, at some point, the economy could be impacted.

Bigster versus Duster was impacted because I'll hand over to Katrin as long as she's forgiven me for my muted answer to a previous question, but the close of the straits was actually impacting us shipping parts from Morocco to Romania. But maybe you want to comment on cannibalization between Duster and Bigster, Katrin.

Yes. Thank you very much for that question also. So we have assumed when we were deciding on the Bigster that there would be somehow a cannibalization. And we see now the first results of customer surveys from last year and we see it's far less cannibalization than we have assumed. So the both products are very well positioned to find different customers, are in different segments, have different price points. And therefore, it's a very great asset to be with the Bigster in the C segment, and we have a very good cohabitation of those both models.

And Thomas, I'll take the point on the C and above, and I'll come back to you on this. We will check the data, of course.

Good. And our next and final question will come from Tobias Beith from Redburn.

It seems that the composition of volumes was quite decent in the first quarter. My question is this, how much upside is there to MFS's average ticket size and yield on its assets over the next 12 months?

Tobias, so volumes in the first quarter to average ticket price uptick. So as you can see, once again, MFS is a portfolio business. So we're looking at the average of the portfolio and the impact of that. I think it will continue to show a positive trend. Mix is increasing, obviously, as you read on the auto side in terms of euro per unit. You can see that in the product mix. So continuing positive trend. I wouldn't necessarily book 13% every single quarter, but we've seen that trend build last year, and expect it to be a strong contribution this year and going forward because in the FutuREady, we did call out mid-single-digit revenue growth, but coming from both auto and MFS.

Okay. But the ticket in the first quarter isn't some sort of exceptional results is kind of where I'm getting to.

Yes. Sorry, I thought so if your ticket -- average ticket rise in the first quarter, so if you're talking about what's in the auto, because obviously, once again, MFS is a portfolio business. So the portfolio is growing year-on-year. It's not an exceptional thing, no.

So with this, we will close our today's call. Thanks a lot for your time and your attention. The team remains available. Of course, if you have any follow-up questions, and speak soon.

Thank you. Have a good day.

Hello, everyone. I am very happy to be with you today to present Renault Group's new midterm plan futuREady. This plan is the result of 9 months of hard work with the leadership team and with colleagues all across the company. It is a great honor for me as CEO, to present this ambitious plan, which sets the next step for our group. futuREady is about making Renault Group robust and truly ready for the future. Being futuREady is not only about a vision, about an ambition. It is also about execution. This plan is a concrete detailed road map. It will make our group able to perform whatever comes next.

FutuREady is realistic and credible. It is a name of our journey to reinforce our model, thanks to our employees but also our suppliers, our dealers and our partners. With futuREady, our vision is to become the reference European OEM. What does it mean? First, it is about growth and product. In Europe, we'll deliver a second successful lineup in a row across our 3 brands. Outside Europe will drive a targeted offensive where growth is happening. By 2030, we will launch 36 new models. Second, reference OEM means technology and innovation. Renault Group will develop and master its own technologies in Europe at the highest level on all what matters most in our industry from electric vehicles to intelligent AI-driven cars.

Third, operational excellence. In an automotive world that is more uncertain than ever, we must stay focused and be best-in-class on everything we can control. Three examples. Quality. Over the last 5 years, we reduced quality incident by 50%. During this new plan, we will do it again. Engineering will make 2-year development the standard for all our cars. And the AI at scale we boost our operations with AI and use it to change the paradigm of customer experience.

The fourth pillar of our vision is engagement. We are Trust ready. We built this plan collectively and will deliver our plan collectively. We are committed to enhance the employability of our people. We are also committed to our supplier ecosystem and our network of nearly 10,000 dealer sites worldwide. Being the European automotive reference means we will remain deeply rooted in Europe. I am confident that with our teams, -- we will show Renault Group can continue to develop in Europe to produce in Europe, highly competitive vehicles.

With futuREady, Renault Group will deliver concrete results. First, growth. We expect total revenue to grow at a mid-single-digit rate over the midterm. Second, profitability and cash generation over the midterm from 2026 onwards, we target a sustainable group operating margin of 5% to 7% of revenue with progress over the period. And we aim to generate strong automotive free cash flow of minimum EUR 1.5 billion per year on average more than twice our historical performance. We will stay disciplined on capital allocation with clear priorities: invest in products keep a strong balance sheet and, of course, deliver fair returns to our stakeholders. To our employees, of course, by growing employee shareholding towards 10% of the capital over the long term to shareholders, with a EUR 2.2 dividend paid in 2026 for 2025 and a clear objective to increase the dividend per share in absolute value over the midterm.

In short, futuREady is about steady growth, higher profitability, strong cash generation and value shared with our employees, partners and shareholders. futuREady is deeply rooted in Renault Group 127-year legacy and in the strength of our 3 brands. But with this new plan, we are not looking back, we are looking forward, and we are putting everything in place to be futuREady. To reach our goal -- we have a key advantage. We are not starting from scratch, Quite the opposite. Where do we stand today? [ Resolution ] was a success -- it has given us a solid foundation, thanks to all the teams under Luca de Meo's leadership. We have a strong lineup with 32 models in 5 years, Scenic [indiscernible] have all won Car of the Year awards.

We also built a clear comparatory bond portfolio. and customers are responding positively. Renault brand is #2 in Europe. Dacia is #2 in the retail channel in Europe. Dacia Sandero is the most sold car in Europe. And Alpine has already tripled itself in just 3 years. Our value over volume strategy is setting us apart from European competitors. Our retail channel mix is more than 17 points above the market average.

Our residual values are 5 to 12 points higher than our European peers and mobilize financial services is proving financial packages to over 60% of our sales. Thanks to our dedicated teams. We have also built a disciplined go-to-market strategy with our platform, family approach, we have achieved high commonality between our products. We delivered EUR 400 COGS reduction per vehicle in 2025. Our plants are running at over 85% utilization rate. And we brought distribution costs down by 10 points for Renault brand, while Dacia now delivers best-in-class total distribution cost.

As you can see, over the last 5 years, we proved we can win. Now we must prove we can last. So now I invite you to join us for this new next chapter. It is ambitious. It is exciting, and it is futuREady.

Let's start with growth, product and customer experience. Renaulution was about recovery in Europe and it delivered. In this new phase, we are opening today, Europe will remain our priority. With a clear ambition, deliver a second successful product cycle in a row to become the reference European OEM. With futuREady, we also expand internationally. We are launching an offensive in selected fast-growing markets like India and South America. Together, these 2 regions will generate more than 60% of the industry volume growth in the markets where Renault Group is present.

Doing so, will compete across a much broader footprint, a market of nearly 50 million units a year, representing 55% of the global market. Europe, as our anchor new markets as our engine. This is a way will deliver consistent mid-single-digit growth year after year. Our growth plan is built for sustainability because it is balanced. First, from a geographical standpoint. As you can see, we'll grow in each market. Europe remains our core market. Internationally, we are building an agile and derisk business model compared to our peers. On 1 hand, we are not exposed to the major challenges faced by players operating the Chinese and U.S. markets. On the other hand, we already have strong industrial and commercial footprints in high-growth geographies. And we can also rely on our competitiveness to supply a few strategic partners. We are also adopting a balanced and derisked approach from a technological standpoint. In Europe, we'll keep pushing hard on EV while offering a complete range of hybrid solutions.

We target Renault brand to be 50% electric, 50% full hybrid by 2030. Outside Europe, we target 50% electrified sales in 2030 for Renault brand, mainly driven by our E-Tech full hybrid technology. To sustain this growth, we will launch 36 new model by 2030 even more than during our great Renaulution journey.

In Europe, we keep the pace with 22 launches, including 16 all electric vehicles. At the same time, we'll accelerate in international markets with 14 new launches nearly twice as many as during the Renaulution. We are building the next after with more product, more EV, more hybrid and more international reach. In short, futuREady is about growth across all markets and all segments we operate.

To go further in detail. Let me now hand over to the CEOs of our 3 brands. Fabrice for Renault; Katrin for Dacia and Philippe for Alpine and they start with [ Reneuron. ] Fabrice, the floor is yours.

Thank you, Francois. Good morning, everyone. With more than 100 years of history, Renault has forged a strong, strong brand identity. We have and we will design, what the French call, what you have here, cars made for life. This DNA is expressed through strong brand markers. First, designed to be loved. Our ambition is to spark emotion at first glance with cars that stand out on the road. Second, people first tech. Technology should serve people. We deliver best-in-class connectivity with smartphone simplicity and we focus on useful features that make mobility safer for all road users.

Third, electrified by passion. We are committed for electrification from full hybrid to full electric for better efficiency and CO2 footprint reduction. But electrification should never come at the expense of driving pleasure. We make electrified driving, engaging and joyful. And finally, crafted space, we design onboard experiences that adapt to people's way of life. Modularity, versatility, storage and roominess are core Renault strength even in compact silhouettes.

This DNA drives an attractive product lineup designed to address a wide range of customer needs and driving a strong conquest dynamic. It is embodied in every car we make. In iconic vehicles, such as R5, Twingo of the Renault Duster, which has just made a great comeback in India. In long-standing success stories like Clio, Scenic traffic, or master and also in our newest products from [ Sembios ] in Europe to Filante and Filante outside Europe. With futuREady, we are now accelerating the next cycle of growth for the Renault brand, thanks to 3 powerful drivers. Our ambition is clear, reinforce our European leadership, accelerate electrification and go faster internationally to confirm Renault as the #1 French automotive brand worldwide.

Let's look now at the first driver. In Europe, we will offer the most attractive lineup with 12 new models by 2030. In A and B segments, where Renault has historic leadership -- we will complete the success of Renault 5, Renault 4 and Clio 6 with the arrival of Twingo, our new A segment disruptor. These segments, our first offensive is already delivering strong residual values and profitability. Now we are preparing the next wave, a new generation of EV and full hybrid cars combining innovation, value and even better market relevance in Northern European countries.

I will give you just after some examples of what we are cooking up. In LCVs, Renault now has 1 of the strongest lineups in Europe with a clear objective, pushing electrification and European leadership with 7 new models including, of course, the new traffic EV. Second driver, electrification. Electrification is a powerful growth accelerator for Renault to stay agile we will continue beyond 2030, our full hybrid powertrains, which are among the best in the market. And because choosing hybrid is a first step toward electric mobility, we will extend our full hybrid offer in international markets as a solution to replace diesel and prepare market transition towards electric.

Electric cars will, of course, stay at the core of our strategy with our new EV platform. We will leverage it to develop Scenic new generation and the future Rafale. Imagine cars with no range anxiety, super fast charging and competitivity. In short, a hassle-free experience to go full electric. This will become a reality, thanks to this exceptional asset. It's, of course, too early to show you all the cars, but Philippe Brunet will tell you more about it.

True to our DNA, the onboard experience will be reinvented. Let's now begin and unveil our space lab.

Let's focus on the interior. It's not a future production car. It's a lab that explores the future of Renault's what you live and expresses our brand DNA at its boldest. As you can see on this video, the cockpit is a strong example of people first take the curved screen called Open Panorama, runs across the entire dashboard displaying information with optimal readability. The contractor screen is as simple to use as a smartphone and offers an intuitive experience. Our space Lab also poses safety further with innovations such as safety coach, with personalized assistance thanks to embedded AI and alcohol detection for young drivers.

Inside space and comfort reach a new level. The cabin is filled with light, thanks to large panoramic glass surfaces, reinforcing the feeling of space. In the front, you can enjoy a launch like experience with smart storage and the relaxing leg rest position. In the rear, the cabin is designed for real life we fully modular seats, but slide unfold to adapt to passengers. Several of those innovations will make their way into our next launches.

Let's now move to international markets, our third driver. Our objective is clear, fully leveraged our international hubs to capture growth while reinforcing our global competitiveness. Out of Europe, we will launch 14 new models by 2030. This strategy is focused on Latin America, Korea and India, where we already have strong industrial and commercial footprint. Together, these regions represent a market equivalent in size to Europe. Thanks to platform sharing, selected strategic partnerships and agile local organizations, Renault will develop global vehicles adapted to market needs. India is the cornerstone of our plan. It is 1 of the fastest-growing automotive markets with electrification and higher segments gaining momentum.

We have 15 years of presence there deep market knowledge and a fully integrated ecosystem. With the takeover of the China plant and the launch of 4 models, including electric cars and full hybrid India becomes a global hub, serving both local and international markets in production and sourcing. Bridger concept perfectly illustrates this strategy. It is built on a simple insight as cities grow, customer need cars that are compact, agile, [indiscernible] to introduce you to our new flagship in our international offensive rooted in Renault's DNA and build on a strong, highly competitive value proposition.

[Presentation]

This is a game changer. Bridger concept is a B segment car that delivers radical proportions. It combines extremely compact exterior dimensions with exceptional interior roominess with a length under 4 meters, it delivers all at once, generous new room a white [ stent ] under 400-liter boot. The high driving position provides excellent front and rear visibility and the strong feeling of protection. It will come to market as a true multi-energy vehicle, including EV with best-in-class efficiency. Bridger concept will be a key pillar of our global competitiveness with India at the heart of its development. Designed as a powerful conquest tool for the B segment, it will start with India and quickly expand to other countries. And we are moving fast -- our goal is to begin production in India next year.

So you see with the strategy, Renault is loyal to its legacy while being futuREady. By 2030, our ambition is clear, to sell more than 2 million Renault cars worldwide with half of our sales outside Europe. We aim for 100% electrification in Europe and 50% electrification outside Europe. We are future-proof thanks to a robust electrification strategy, an attractive lineup that unlock new markets. But we are also future driven with an ability to grow beyond Europe and capture international opportunities at the highest level of competitiveness.

Now I'm very happy to hand over to my colleague, Katrin, who will share with you the Dacia plan. Thank you, Katrin.

Thank you, Fabrice, and hello, everyone. At Dacia, we stand for the best value for money. We constantly redefine the essential what really matters for our customers. This is our compass and our purpose. Our brand is built on 3 strong pillars: first, essential but cool, I would even say essential and cool. We focus on what really is necessary for our customers without ever giving up on desirability. Bigster is a perfect example, a true C-segment SUV, both essential and attractive. Second, robust and outdoor. The success of Sandero and Duster are good examples. Robustness and outdoor spirit are a true [indiscernible] signature and will continue to shape our future models.

And finally, ECOSmart, ECO, meaning both economically and ecologically. It is expressed, for example, in our LPG strategy, but also in spring, that shares affordable full EV offer and in stark and innovative material made with recycled plastic. Dacia has always been in tuned with this time. Our journey reached a major milestone last year with 10 million vehicles sold since 2004, the year alone reshaped the market. So what is that charismatic formula? People ask us all the time. It is simple. Delivering the best value for money behind it stands a clear philosophy and disciplined execution.

First, a unique and profitable business model, a design-to-cost approach, targeting a 15% cost advantage by focusing strictly on what really matters most to our customers. The essentials and efficient industrial and sourcing footprint and a highly effective distribution model costing less than half of the Western European average. This is why Dacia is delivering a strong margin profile. Another key pillar of our success is customer loyalty and conquest. 70% of Dacia owners stay with the brand when renewing the car and another 10% move to Renault, meaning 80% remain with the Renault Group.

At the same time, Dacia is a true conquest brand. 65% of buyers come from outside the group. And finally, there is retail performance. Imagine Dacia is now Europe's #2 retail brand, and I will just take 2 examples, Sandero, the #1 model across all channels last year. at Bigster, the #1 compact SUV in retail in the second half of '25. With Dacia's midterm plan, we are not changing the recipe of our magic formula -- we are just tuning up the power, same fundamentals, same philosophy. Everything starts with 1 simple question. What do our customers truly need and what are they ready to pay for? From there, pragmatism is key.

Our ambition remains unchanged, offering smart, affordable mobility for all. So you may ask yourself, what are the key pillars for this plan. First, the clear move into electric mobility. By 2030, Dacia will launch 4 electric vehicles; second, electrification across the entire lineup. Today, 1/4 of our sales are electrified. Tomorrow, it will be 2/3 thanks to new full hybrid models and smart electrification. This year, we will launch a new A segment electric model, starting below EUR 18,000 made in Europe and developed in less than 16 months. Third, our C segment offensive. Bigster is already a success, and we will build on this momentum.

Our ambition is to grow our C segment share from 20% today to 1/3. Fourth, Sandero, a success story for nearly 20 years, 3 generations for the next-generation Sandero we've designed a range of fully multi-energy powertrains with a typical very attractive Dacia design. And of course, Dacia will remain the value for money Champion for Sandero. That's Dacia promise, and we stand firmly behind it.

And finally, we will continue to build on what makes Dacia distinctive, our affordable 4x4 expertise and our leadership in RPG solutions. And now to show you how exciting Dacia future is because images often speak louder than words. Let's take a look.

[Presentation]

[ Stryker ] such a beautiful Dacia, isn't it? What defines Dacia is our ability to deliver the best value in every segment and with every technology. And believe me, this won't change. This is exactly the spirit behind [ Stryker, ] our new electrified unexpected and dynamic crossover. Stryker will spearhead Dacia's expansion into the C segment. With Bigster, Stryker forms a perfect complementary dual, 2 models, 2 distinctive personalities sharing the same essential robust and value-driven DNA. 4-meter 62 long, Stryker brings a particularly compelling offer to the C segment with a disruptive silhouette and a dynamic qualities designed by optimal efficiency.

Today, we are pleased to give you a first exclusive look to its exterior design, a true avant premiere. The full official review will take place in June. Made in Turkey, Stryker will be launched later this year with a full hybrid, a hybrid 4x4 and of course, an LPG version. With the starting price under EUR 25,000, Stryker will contribute to make electrified C-segment mobility truly accessible. Stryker will play a strategic role in attracting new customers for Dacia across both retail and [ fleet ] channels. futuREady, Dacia ready and now please welcome Philippe the CEO of Alpine on stage.

Thank you, Katrin. Ladies and gentlemen, it's a real pleasure for me to be here to present the Alpine vision and ambition. Alpine has been -- it's a sports car brand of the group. And for 70 years, it has been a synonym for lightness, high performance and being proudly French. So it's very natural to redefine the brand values around these assets. Lightness, this is about optimizing every gram for unique driving pleasure, agile efficient, responsive, exhilarating experience, pushing boundaries and setting new benchmarks for ultimate driving experience and performance and French savoir-faire, embodying excellence of materials and craftsmanship. France is very famous for its premium brands in luxury segment. but we aim to be the first 1 in the automotive industry. We then define our product range around 3 pillars with motorsport auto art, all fully respecting the brand values and having a precise objective within the lineup.

Firstly, every day extraordinary. Here, Alpine A290 and A390 are key to our growth goals. Our ambition is to attract new customers to the Alpine family. So everyone can enjoy pure sporty driving pleasure daily. Achieving 11,000 sales in '25 demonstrate this intent, and we aim to double this in '26 with a turnover over EUR 1 billion.

Second, special project. Here, it's focused on limited service model. Ultra exclusive expression of our finest innovation, personalization and design. The Alpine want an [indiscernible] the most extreme and exclusive Alpine 110 ever is a perfect example. And then there is icons, spearheaded by our reference model, the Alpine A110. The Alpine A110 is the foundation of our brand, our core model, showcasing our commitment to deliver high technology products, keeping intact the spirit of the [ berlinetta ].

For the next generation Alpine A110, our objective is clear, is to create the world first true EV sports car and outperformed the best of today's combustion engine revolts. We believe that the car based on the unique Alpine performance platform, APP, will make it. And there's no better place than the north [indiscernible] to evaluate this ambition. Nick named the green L. It is the reference circuit for testing with over 20 kilometers of track and 73 corners.

Thanks to reverse engineering, we have created a simulation model of the actual best 2 combustion revolves to perform a virtual race versus our own Avatar car. Let's have a look. So how do we compete Consider the main features used on the Alpine performance platform that address all the technical challenges of lightness performance, design and electrification. First, the frame. We have developed an advanced aluminum architecture offering lightness, stiffness and modularity. That translates into structural integrity dynamic responsiveness and efficiency, thanks to innovative bonded and rivet technology, the best possible lightweight design.

To respect the A110's iconic chip, we added 2 battery packs rather than using a skateboard style design like our competitors. To reduce weight, and charging time, we opted for 800-volt cell-to-pack batteries with high energy density cells -- allowed to respect the 40%, 60% front year weight balance of a true sports car. For Power & Agility, we have a new real dual motor 4-in-1 e-Axle, delivering exceptional talk and performance with ultrafast control, thanks to its silicon carbide inverter.

And as a perfect [indiscernible] to sit in the heart of every Alpine mechanically, we designed 2 new full aluminum suspension plus a new integrated braking system and a premium class steering. But such a high-tech car needs high tech brain, all is called the Alpine Dynamic module, ADM and seamlessly integrate everything from the terminal management to the e-motors, including brake, steering and active aerodynamics.

For example, to achieve the extreme filling of lightness with the next generation of Alpine active targeting, AATV, and every 10 milliseconds, ADM can send a request of different talks between the right and the left wheel to create a yo moment to enhance stability or agility, depending on the situation. Then we have designed an incredible Formula One in spite driving position. Low [ slong ] with a vertical steering wheel. And besides the feeling, the feel at one sensation this gives to the driver. The cockpit is drawn to make all the important functions clearly visible and 1 touch away.

Finally, APP is developed to offer different body styles, Cope, Spider, 2+2, always no compromise. And before you ask, yes, the platform is designed to accommodate an internal combustion engine. So I think it's time to go back to the race.

We won [indiscernible] as you say, in French. So we'll keep our promise the next-generation Alpine A110 will be a real A110 and the first true EV sports car built around in Alpine DNA.

Thank you very much. And now over to you, Fabrice.

Let's go from Renault [ life ] to customer experience. Customer excellence is a key lever to face always fiercer competition from new entrants. And Renault Group counts on strong foundations to make our brands distinctive, 80,000 trained professionals in our dealer network. 60% of leasing penetration for Renault brand new cars in Europe, around 15 points higher than the market average. And the complete ecosystem of charging solutions developed over more than 15 years of experience. All these assets support our ambition, make the difference by integrating the complete car life cycle, first, second and third life generating value over time. OEMs have historically been focused on new car sales and after sales. We underestimated a massive revenue pool on second and third life that we will now tap into. And let me give you some examples.

By increasing the leasing take rate beyond the first line, we will improve customer loyalty and generate additional profit. And the logic is the same for aftersales retention. Overall, our objective is to benefit from the second and third life revenue pools targeting 80% of revenues generated during a 10-year car life cycle. Data, AI and new technologies will accompany us in this strategic next step. We have already delivered a success story in our upstream activities putting in place a digital twin of our production and supply chain ecosystem. And we will now extend the experience to the downstream by establishing a digital twin for our cars, but also for our customers, boosted by AI agents will improve customer loyalty and retain vehicles in our ecosystem for up to 10 years.

Our cars will interact with our customers in a highly personalized and conversational way. It will offer advice through a virtual coach in the car or through the app my brand, my Renault, Modasa, it will help with car usage maintenance and upgrade safety or even renewal conditions. The car itself coupled with the smartphone app will generate customer loyalty. And we will also leverage digital and AI solutions to improve our competitiveness by reducing our total distribution costs. All in all, through customer experience, we will make the difference.

Our objectives are clear, keep our customer over 10 years with 80% loyalty rate, tapping into wide profit pools on second and third life. Improve also our competitiveness further, reducing by 20% our total distribution costs and, of course, be leader in customer satisfaction.

Now Francois, the floor is yours.

Thank you. Fabrice, Katrin, Philippe and Fabrice have shown our product stories, rich and exciting. But win -- we must also compete with our best contenders, especially the Chinese carmakers in terms of technologies. To be futuREady, we have a detailed road map to match the pace. It covers everything that matters from platform, battery, electrified powertrain, electronic architecture that will provide AI-driven intelligent costs to our customers.

Now let's join Philippe, our Chief Technology Officer, to discover our tech road map. Philippe, over to you. .

Thank you, Francois. Hello, everyone. So let me guide you through an overview of the technologies we will be working on within the next 4 years. with the benefit for the customers. Starting by the vehicle platform we cover from A to C+ segment with most of the investment already done for passenger cars. [indiscernible] small for Clio, Captur, Sandero, Duster, et cetera, to our 2025 COTY awarded LNG EV small for Renault 5 including the [ NGA ] medium shared with Geely for our global overseas market, we are now focused on our brand new modular EV platform, energy EV medium 2.0, succeeding to the 2024 COTY awarded LGV medium 1 to 0 for Scenic.

But we are also ready in LCVs. From the small cargo van to the large master van, including our brand-new Energy medium van for the traffic E-Tech to be launched in 2026 and adding the new half-ton pickup for South America, we have 1 of the strongest LCV lineup coming on the market.

Coming back to our brand new EV platform for passenger cars, let's watch a short video.

[Presentation]

Great platform. The LGV medium 2.0 will be a key asset to achieve best-in-class performances from 2028, a 40% cost reduction versus today generation. It will cover from B+ up to the vehicle segment compatible with a low and high drive silhouettes, offering an attractive versatility and modularity. Thanks to a best-in-class efficiency, we will reach up to 750 kilometers WLTP range in EV and up to 1,400 kilometers WLTP range in [ HanjakStander, ] staying below 25 grams CO2 WLTP. Here will drive and 4-wheel drive version will be proposed from 275 up to 500 horsepower, including our well-known 4-wheel steering system with less than 10 meter turning radius.

The battery energy integration will reach a top filling ratio of 70%, thanks to the smart cell to body design, 20% less parts, compatible with prismatic, pouch and blade cells. And those battery will be repairable. Last, but not least, this platform is ready for intelligent chassis, [indiscernible] technologies and active suspensions. Following the presentation of our cell to body concept, let's talk about the chemistry to get the full battery picture.

In terms of energy density, we'll continue to stick to 2 streams. First, the high energy density stream for high output power vehicles such as Alpine or extra long-range version; second, the affordable stream for small cars and normal range versions. But from 2028 will even reach the extra long range with the affordable stream. On our new NGV Medium 2.0 platform, thanks to our Smart Energy integration. Believe me, this is a key lever in terms of cost reduction. Then we will increase the energy density from 10% up to 40% and of both streams by 2030, increasing consistently the vehicle range without sacrificing the charging time.

AB Vehicle segment will stay 400-volt with up to 20 minute quick charge in 2030, while CD vehicle segment will switch to 800-volt by 2028, achieving up to 10 minutes quick charge in 2030. These performances are based on the visible European power network up to 450-kilowatt by 2030. And for all those new generation of batteries, we will secure a no thermal propagation statement.

Now focusing on e-motors. Our strategy relies on 2 legs. First, for small vehicle focused on urban usage with low power output, our priorities, cost and investment-wise, -- so we buy. For other vehicles running for extra long range, our priorities efficiency at the best cost, minimizing the energy of the battery based on our know-how and industrial assets we make.

Let me introduce now our new e-motor. We are developing our third generation of ESM motor, which will be best-in-class in terms of efficiency on the highway at 93%. These 275-horsepower e-motor with front and rear wheel drive versions will be equipped with an innovative scalable 7 in 1 power electronics based on an 800-volt architecture. Both e-motor and 71 Power Electronics will be designed and produced in-house providing a 20% cost reduction with a 25% output power increase versus today generation.

Then about HEVs. Our strategy is simple. We intend to continue HEV beyond 2030, maintaining our CO2 leadership, extending our coverage below 150-horsepower and outside of Europe, while we will be reducing our system cost up to EUR 1,000 per powertrain. Regarding Heli architecture, our strategy relies on 2 streams. First, the domain control concept for cost optimization, already in most of our vehicles for cost competitiveness will be continuously improved. Second, the SDV centralized plus Donal concept as a first step is opening a new era in terms of time to market, agility and scalability. This is a pillar for the future. So let's deep dive the SDV concept.

Our SDV is to be the first European SDV introduced in the market in 2026. And the first car OS Android-based in partnership with Google. It will allow us a quick picture expansion, thanks to the scalability and the agility of SDV, 90% -- reducing by the time to market of new features. But this is the first step since it allows to reintroduce AI more and more deeply into the software from apps to basic software, expanding the AI features at vehicle level and leading from SDV to AIDV.

It opened the door to the intelligent car by controlling infotainment, ADAS and chassis. Talking about Intelligent care, we need to develop the corresponding technologies. This is the purpose of our Futurama program covering our innovation activities. Related to AIDV, we have started to investigate steering and braking by wire, active suspensions, ADAS Level 3, intelligent cockpit and safety so-called human first. On top of that, we investigate in wheel motors for which we see a breakthrough in terms of vehicle packaging, and as already explained in Ampere, we are studying the cobalt-free cathode and lithium metal anode leading to the solid-state battery.

As you see, -- ladies and gentlemen, our engineering ambition during this plan is to bring together the skills to develop the technologies and the competitiveness that will allow us to compete with the best OEMs such as the Chinese.

Thank you for your attention. You may have questions. I'm looking forward to answering them in a moment. Francois floor is yours.

Thank you, Philippe. We talk about products. We launched 36 new models. We continue building on our 3 distinctive brands, our strongest asset. Our new frontier is about customer experience with our ambition to keep 80% of our customers during 10 years of product lifetime. We also reviewed our tech and innovation road map. You have seen our future-ready bets on the right technology to be game changer.

Now let's turn to operational excellence. Our industry is entering a tougher, faster and more unpredictable cycle. To cope with this environment, we must be best-in-class on everything we can control. We must be focused on disciplined execution. It means improve quality, shorter development time and stronger resilience for supply chain. It also means cost discipline will reduce variable costs by EUR 400 per vehicle per year in average. As you will see, we'll also use data and AI at scale to boost our execution.

And finally, will continue embedding ESG objective into each of our operations. Operational excellence is the engine of [indiscernible] It is our return strategy into execution, how we move from success story to success system. To tell you more about it, let me invite Thierry, our Chief Industry Quality Supply Chain Officer to join us, and let's start with top priority among others, quality employee of the year.

Thank you, Francois. If we take a step back, what is the first purpose of operational excellence. For us, it's about serving the customer. That is why at Renault Group, we are committed to deliver best-in-class quality and durability. Not just when customers first take the wheel, but every single day they own the car. With futuREady, Renault Group vehicle will rank among the best for quality on the market. How do we get there? By getting it right from day 1, thanks to our improvement in the last 3 years, we cut by half the number of customer claims leaving us to the best reference in Europe, whereas in the same time, we managed to launch 24 models with a high level of technological breakthrough. Our plan now is to reduce once again by 50% the number of incidents in the next 3 years. Second conditions for the remaining few incidents, we get it right by reacting fast.

We will be able to evaluate any issue for our customer in the blink of an eye. We had already initiated a major shift by reducing the time line from 30 days to just 1. Tomorrow, thanks to AI and remote diagnosis, we will be able to analyze any effect in less than 30 seconds and often be able to directly fix it over [indiscernible]. Third, quality obviously means long-lasting promise. Our cars are built to last. Our ambition is clear to reduce incident rates by 70% within the first 5 years of vehicle use. We aim to deliver such a level of reliability and durability that our customers can confidently say -- after 5 years, my car is brand new.

The question is now, how will we achieve this? The answer lies in pushing even further in our use of new technologies and AI from the components that make the car to the end customer. Inspired by aerospace standards, every critical part will be individually traceable to ensure maximum reliability. In our manufacturing plants, we will be scaling up AI-powered inspection systems of that 100% of all critical operations are automatically monitored. That is to say more than 1,000 AI devices on each production line.

We will also keep expanding connecting equipment across all facilities, allowing every plant to visualize and manage this process in real time. And at the end of a chain real-time monitoring and [indiscernible] technology will enable us to detect, repair and update vehicle remotely, delivering seamless services to our customers without any need for dealership intervention. But to achieve operational excellence, we must also excel in manufacturing. To do so, we rely on cutting-edge factories. We are already at the highest standard of our industry and with futuREady, we will push even forward.

With Renault 5 we redesigned our processes to hit a 10-hour production time. Now we will go further. Our goal is to cut production hours by unit per another 30%. -- a real breakthrough. To achieve it, our plan is, first, cut the average number of parts per vehicle by 30% compared to the previous cycle, thanks to our teamwork with product engineering. Second, we will speed up our next-gen automation plan. In particular, we will deploy 350 humanoid robots in our plants by next year. Thanks to our collaboration with a start-up Wandercraft at Renault Group, the future is being written right now.

Third part of our plant we will further capitalize on having digital operation across all factories, generating more than 5 billion data points each day. We will deploy advanced digital and AI system to deliver game-changing results, for example, predictive maintenance will reduce downtime by 50%, just imaging for productivity and cost savings. Finally, we will deliver best-in-class energy efficiency with a target once again to reduce plant energy used by 25%, that is to say close to 50% since 2020. With this approach to manufacturing, we are confident we will cut production cost per unit by 20% Ready to deliver it's time for me to share with you a real and effective example.

I am proud behind me to introduce Calvin -- he is the first model of a next-generation robot developed through our partnership with Wandercraft. As you can see, future is now -- this video was filmed last week in our [indiscernible] plant. [ Calvin ] is already operational on the tire handling line feeding the assembly line 1 of the most physically demanding station in terms of economics. This is an industry first. He can move heavy loads while maintaining perfect balance. He can make decisions, understand his environment and navigate autonomously. It's only the beginning. 350 robots like Calvin will be deployed across our production line within the next 18 months.

Anyway, no matter the technology -- no matter the breakthrough we implement to ensure that our plan is realistic we need to build it for today's world, fragmented and unstable. No matter the shocks, we need to be ready and resilient. We will derisk our supplier base with targeted dual sourcing for strategic components. We will also put it high reactivity at the core of our supply chain model.

With our digital control tower powered by real-time data and monitoring -- we have a 360-degree view of our entire networks down to the supplier of our suppliers, that is to say more than 50,000 sites in the world. Second, -- our supply chain will match our international strategy. As we expand outside Europe, overseas flow will grow through our global hubs. More than ever, speed and agility will be key to ensure business continuity. With futuREady, we are building exactly that. First, we optimize global flows with AI powered planning our control tower will gain real visibility over 100% of our inbound and outbound flows and sharper forecasting, right time, right place, for parts and vehicle delivery.

Then we get ready to react agility to adapt to demand swings, handle supply disruptions and short-term lead times will allow us to cut inventory by EUR 1 billion. Overall, the goal is to reduce logistic costs per 30%, bringing them back to pre-COVID level. Our customer has a daily obsession, 1 supply chain and manufacturing system as a world-class reference for cost efficiency and resilience -- that is what I think we can call operational excellence.

Francois, back to you.

Thank you, Thierry. As a proof of concept, our new Twingo was developed in less than 2 years thanks to our Chinese development center, ACDC. Now that we know how the recipe works, it's time to scale it up. First, by working faster, at least 30% faster with our full virtual twin of vehicle data, we can leverage AI to support our engineers from parts design to software cutting. Second, by working smarter, will cut complexity with fewer parts thanks to the standardization of platform and technologies, Philippe presented earlier.

Together with our suppliers, we are building off-the-shelf models ready to plug into any program. 30% fewer parts means less development, faster launches and as Thierry just explained, stronger manufacturing performance. And finally, we'll reach our 2-year standard by working leaner with a simpler organization, we lower the cost per hour worked across the company, more in-house mastery less silos and optimize R&D footprint. That is why right after my appointment, I launched a new 1 engineering setup. This new organization will help us cut and ticket costs by up to 40%, reduce COGS by 10% to 30% compared with previous projects.

With futuREady, we keep our ESG targets, achieving net zero in Europe by 2040 and globally by 2050. Moreover, we have deeply embedded ESG in our operation as a way to improve performance. For instance, we will reach 30% recycled content per car. Our commitment to sustainability goes beyond ESG. It also means contributing to the local communities in every country where we operate. That is why we are proud to be an engaged company deeply rooted in each territory where we are present.

As an example, I am happy to share that the transformation of our [indiscernible] plant towards circular economy is perfectly on track. Just like the upscaling of our electricity hub in France to adapt to EV value chain. Lastly, our business units, the future is neutral, aims to become the #1 player in Europe for circular economy with a double-digit operating margin. All these actions will bring strong cost performance. On fixed costs, as I said, will lower entry ticket -- we will also keep SG&A expenses flat over the midterm. We'll do it by streamlining processes across the company and delivering regular productivity. All in all, these actions will hold our yearly cash fixed costs flat over the midterm, allowing a cautious breakeven point.

This discipline give us the fuel to invest more, and it protects us by absorbing shocks in an uncertain environment.

Now let's move to the fourth and final pillar of our vision, engaging towards our stakeholders. We will not build futuREady alone. For 127 years, Renault Group has made the difference. Thanks to our people and thanks to our stakeholders. That has not changed. We believe that working alone is not just risky, it is a sure way to pay. So now let me walk you through how we engage with each of our stakeholders. Let's start with what matters most our employees. Our ambition is clear, make sure that our 100,000 employees are better informed, better supported and better recognized.

First, better informed. It means transparency and trust, we will reinforce dialogue with employee representatives and involve employees in every transformation of the group. Second, better supported -- it means making our employees ready for a fast-changing industry. We will invest in reskilling and upskilling to address technological description and ensure long-term employability to enhance our expertise, we'll set structured professional pathways.

Third, better recognize means fairness and clarity. We reinforced transparent performance assessment with both individual and collective, supported by our variable compensation scheme. We rely also on our 9,000 managers community to make futuREady a success. -- 1 of my predecessor, Luis Feder, used to say, I believe in delegation in all and at all levels. I share that belief I believe in delegation, and I believe also in accountability and exemplarity. I believe also managers have to be open through permanent scouting for excellence, both inside and outside the company. Employee engagement, monitored regularly with external surveys will be our North Star to track the progress of our HR plants.

Now let's talk about our suppliers. We will not be futuREady if our suppliers are not ready to. That is why we are making a clear shift from suppliers to real partners. What does that mean? First, we involve our suppliers much earlier in the development of our cars. We no longer specify everything in detail as we did in the past. We'll rely on suppliers to propose solution because that can meet customer expectations, regulation and cost targets. Second, we integrate key suppliers into our tech road maps and seek more business opportunities for each of them.

Third, we require transparency on cost breakdowns and across the tier end value chain. So can we can secure together productivity and supply chain resilience. That's how we turn our suppliers into real partners.

Now let's move downstream to talk about our partnership with our dealers. Today, we have 1 of the strongest network in the industry, over 9,000 sites, more than 80,000 people and 30 million customer transactions every year. At Renault Group unlike many competitors, we have always seen our dealers as a key enabler to attract and serve our customers. and this will not change. Together, we can deliver a new breakthrough, extended customer experience throughout 10 years as Fabrice explained earlier. Doing so, we assume it could represent a 50% increase in dealers revenue beyond the first ownership cycle.

We will also work with our dealers on fixed costs and efficiency. Over the past 9 months, during my visits everywhere, I have seen 1 clear priority. We need to simplify to digitalize the way we work together with our dealers. That is a proposed of our software-defined retail project. With SDR project, we expect the network to raise productivity and reduce its breakeven by minimum 20%.

Moving on now to our OEM partnerships. Thanks to more than 20 years in the alliance with Nissan and Mitsubishi Motors, we built a real [ Sawarfare ] in making partnerships work. It is 1 of our key assets. Let me be clear, futuREady is a stand-alone plan. We do not rely on anyone to deliver our growth -- we do not rely on anyone to make our company sustainable. But at the same time, we are happy to develop win-win partnerships.

With futuREady, we will have 19 models and over 300,000 vehicles produced to 5 OEM partners by 2030 and on our 3 key geographies, Europe, Asia and South America. On partnership, I am guided by 2 principles: First, we will remain independent in Europe by developing our own key technology breaks. Second, Internationally, we are pragmatic. We seek partnerships to accelerate our growth in fast-growing markets. Nissan is our historic and strategic partner. Over the past 2 years, we reshaped our alliance in favor of our relationship driven by operational projects and real business opportunities. And it is already delivering. We are developing and producing 6 models for Nissan for the European market.

Outside Europe, we leverage our strong ties in India. In our China plant will produce 3 new models for Nissan. As you can see, our alliance with Nissan is more active than ever. And I am personally convinced that together with [indiscernible] and our joint teams, we will create new opportunities, thanks to our strong technological and geographical complementarities. Another key stream of our strategy is the collaboration we have been building with Geely since 2021. It's starting in South Korea. By joining forces, we were able to recover our operations there in 1 of the toughest markets. The key focus now is Brazil. It is a strategic market for Renault Group and our partnership with Geely allows us to run an ambitious and shared offensive.

And finally, we have horsepower train. Our joint venture with Geely and with Aramco. It is already a success, and it is becoming a global leader in power trains, targeting EUR 15 billion in revenues and 5 million powertrains per year. This is the logic of our approach with Geely. [indiscernible] from its side and turn it into a competitive edge. In Europe, our partnerships are a clear proof of our competitiveness and our ability to attract other OEMs. First, electric vehicle, Nissan, Mitsubishi and now Ford Motors have entrusted us with the production of new model based on our LGEV small platform. Second proof of our ability to attract other OEMs, hybrid and like commercial vehicle. We produce 2 hybrid models for Mitsubishi Motors. Nissan is already using our platform for 3 European LCV models. And through Renault Trucks, we have strong ties with Volvo Group on the current master traffic and now on the next-generation full EV, medium vice van.

Outside Europe, partnership enhance our growth. Let me just take 1 concrete example with Latin America. -- will accelerate, especially in Geely in Brazil. Geely can rely on our established ecosystem, and we can leverage Geely GEA platform 1 of the most competitive platform in the Chinese market. We already started selling Geely in Brazil with amazing quick start. And in the second half of this year, we'll start localizing Geely products into Renault Geely Brazil.

This is a tangible proof of how we use partnership as real boosters. They bring to Renault more agility, more scale and more competitiveness worldwide.

It is now time to conclude. Today, we presented our new midterm plan, futuREady. I would like to thank again all the teams involved across the company as well as our Board of Directors for its concern support, especially our Chairman, Jean-Dominique Senard. As a new CEO I do not see this role as just a position. I see it as a responsibility. Today, my responsibility is to make sure Renault Group is ready for whatever comes our way. That is exactly what futuREady is about. This plan is based on pragmatic optimism. We know where we come from. We know where we want to go, and we know how to get there. We have set a clear ambition to become the reference European OEM. This means developing in Europe, producing in Europe, a new generation of highly competitive cars and expand significantly outside Europe. We have a clear road map with clear targets. We will launch 36 new models by 2030. We will accelerate on technology and innovation and will push operational excellence further by executing faster, raising quality, scaling AI across the group.

With this plan, we choose long term over short term. What will make the difference is our ability to combine innovation and performance with robustness and resilience. This is how we turn the success story into a success system. And we'll do it on a way as we have done for the past 127 years by trusting our teams and building with our ecosystems and partners. This is not my vision. This is our vision. The future will not wait and neither will we. Renault Group is futuREady. Let's get the job done together.

Thank you for your attendance. And now let's open the Q&A session.

Thank you, Francois. Hello, everyone. Valerie and I will be your moderators today for the Q&A session.

Yes. Just a quick word on how we will run since today to make it super smooth. So we are going to start with questions from the floor and beginning with 2 from the financial community. Then we will move to the press on the alternate between both groups. And our colleague will be coming on with microphone and so please wait Juan to reach you.

So no big surprise. Valerie will be the good cop, and I will be the bad cop. For the sake of the broadcast, I would really appreciate if you could ask your question in English, if possible. Also, please stick to 2 questions each for now. We will do our best to come back to you later if you have more to ask. Finally, we have with people connected through teams, and we'll make sure you can ask your questions.

So the first questions will start with [indiscernible] #3. Michael, maybe if you can grab a mic.

Michael Foundoukidis, ODDO BHF. Two questions on my side. First one, you're targeting EUR 400 reduction in cost of goods sold per vehicle per year and 20% cut in production cuts. Could you maybe help us understand where the key execution focus areas lie? And when would you expect these initiatives to progressively translate into net P&L benefits across the different brands?

Second question, maybe on the Nissan stake. Could you share your current thinking on its potential evolution over the midterm and how a possible reduction might translate into shareholder returns. Thank you.

Thank you. So -- regarding costs, just we plan to have EUR 400 per year in average worldwide starting now. And by the way, we already did in 2025. So this start to deliver and we plan to deliver on a regular basis. Maybe for the key levers. Thierry, Philippe, you want to illustrate our COGS key actions.

Okay. Maybe I can talk about industry. Actually, they told me, I don't worry you won't have any question for you, but I couldn't expect it was a track. So about industry, I tried to explain a little bit in my presentation, I will try to go into detail. What we are targeting to reduce 20% production cost -- and as I said, to try to be resilient, we are targeting a 30% productivity, physical productivity.

One of the key lever is the design to manufacturing. We mentioned [ Air 5. ] And now we want to put at scale the smart design to manufacturing, we were able to do for F5 or for example, for Twingo to be able to reduce by 30% the number of parts to assemble car, and we are on track to do so. From excellence operational, a pure excellence operational point of view, automation will remain for sure, a key accelerator of productivity for what we say people working on the line, the blue color. And for indirect, we are relying on our digital twin which already allowed us to reduce by 25% the number of indirect in our plants in the last 5 years.

For Energy, as I mentioned, we made already one gap, 1 big jump from 25% and we aim to double the savings, thanks also to AI and our digital twin. Philippe?

Maybe from an engineering perspective, in fact, it's depending if you consider very short-term actions or midterm actions, I would say, Short term, it's pretty simple. The part is existing. We cannot modify. So the idea is to find a better cost structure to discussing with our suppliers. So [indiscernible] based on the resourcing activities. This is what we do. And we already get a lot of benefits, thanks to what we started 1 year ago. Then if you consider midterm, we have different levers. First, let's say, we can maximize the potential to reduce the existing part. It means on the shelf part. -- because then it helps you to minimize the investments. So at the end, this is a benefit at the COGS level. So this is the first point.

The second is, of course, we can consider design to cost which is very important. And 1 of them is to minimize the number of parts. This is what we are working commonly with Thierry because this is very linked between engineering process manufacturing. And for example, for very simple parts such as the bumpers, we have been already able to reduce the number of parts by 30%.

Thank you. Regarding the second question, short term, the priority for Nissan is to focus on Nissan and as Renault, we are doing our best to help with some projects like India, but for the time being, my priority is to let Yvon and the team of Nissan to recover satisfactory track record. For the midterm, everything is open. I think my job as CEO is to bring to the Board all potential optionalities for shares in Nissan. As I told you from operations standpoint, I personally think that owns Nissan will start to be fully stabilized. I foresee probably more opportunities than what we imagined 2 or 3 years ago. So this will be additional opportunities on futuREady.

Thank you, Francois. So we'll go to #5. I see Jose Asumendi from JPMorgan.

Thank you very much . Jose from JPMorgan over here. I wanted to explore a little bit more the growth opportunity for the business in the coming years. And if you could talk about the growth opportunity for Dacia and light commercial vehicles. Right now, how much is it of unit sales within the group, which vehicles? And what do you think will be the proportion of unit sales for these 2 brands or subsegments by the end of the plan -- and then question 2, can you speak about, please, about Wandercraft, the partnership you have with them. I would love to understand a bit better this 350 humanoid across how many plants is it going to be deployed?

And also very interested if you can help [indiscernible] in scaling up the manufacturing of Humanoids. And obviously, would you be interested in, obviously, also maybe building humanoids for the defense sector, if and when you will get the requirement from the French government.

For the last point, the answer is no. We focus on our own business. LCV Fabrice?

Yes. Well, LCV, as you know, is a key pillar for us not only in terms of volumes but also in terms of value and profitability. We have the chance within Renault brand to have the 3 kind of success stories, as I said before, Kangoo in small van, Trafic in mid van, Master in large van. We just renewed master with success. There was a long transition phase to manage because we manage a lot of diversity. But now master is on the right trajectory with orders entering and the share of market, as you could see in the last months, which are gaining speed and high.

And what is interesting is that we see that -- when you look at the results of the 3 pillars, the level of electrification is, of course, not at the pace of PC market, but is increasing. It's increasing because there is customer needs, fleet needs to deliver in the cities and so on. And that's where the game is beginning interesting because we will launch in a few months now the new traffic EV based on a new platform we developed with a high level of software inside with a new level of service. And we think that this will be also for us a game changer towards this electricity paths. And the potential, as you can see, we are starting from more or less 10% of EV mix on LCV is huge. -- and we will do that with no U turn systematically on this direction.

What is interesting also in LCV is that LCV is not only a tool for Europe, but also a tool for international markets. If you take the example of Latin America, we are very well known, for instance, with LCV and especially master we are producing in Brazil, where we are doing almost half of the market. So this is also a tool and the conquest tool for international markets. This was for LCV.

Katrin for Dacia.

Dacia and it's a path to electrification. So we are on trajectory to electrification. We have -- this year, we have 1 electric car and in '25, we had one electric car in our portfolio. The spring, which was the most sold EV in the A segment and had a plus of 53% versus the year before. This year, we are adding a new vehicle and EV in the same segment. This -- last year, we had 25% of our of our entire sales were electrified sales. So pure electric and hybrid. We will have, by the end of this year, hybrid solution electrified solution on every product that we sell. We will go to 4 electric vehicles by 2030. And with this, we will electrify by 66% or we will be at 66% of electrification in 2030. So we are really on the way and to electrify our brand.

Thank you, Katrin. Thierry, tell us more about your great humanoid robots.

About a little bit more about [ Kelvin ] coming brothers. Yes, I think you may know the story of Wandercraft in itself, it's a very nice story. Wandercraft is a company which is specialized in building autonomous exoskeleton for people having losing the use of their legs. And it's really by chance connection with in 1 in Renault Engineer brain, but this kind of exos but I don't -- totally autonomous was the kind of robots and robots able to have carry heavy loads, okay? So that's the initial story.

Starting from this point, it took us only 3 months to make the first model. So 1 key asset we have with this partnership is speed. Now talking about scaling, I guess, the first support we give to Wandercraft is that we are breaking use cases. So we have currently more than 25 use cases. we plan to extend robots. So you have the question in what kind of -- in what plant do we do we aim to expand so we will start maybe by a French plant because it's closer also to do the expanse. But for sure, the target is to expand them in our highly automated plants. So giving use cases, challenging them because we have a very clear, also very clear benchmark of what is going on, talking about humanoid robots and in the second step, if it's necessary, for sure, we will be able to help them to manufacture and to support also the design to cost. But honestly, from now, it's more in a second step.

And second step, talking about speed can be in 6 months.

But you know Jose a lot of companies like to do -- to use humans for [indiscernible] at CES. But Thierry prefer to put directly the humanoid robots into the line. And I'm pretty sure we are the first 1 in the automotive industry, putting Engage in our cycle, 60 seconds, humanoid robots for such tricky, complex and diversified tasks. So we start, but I see also a big potential.

Okay. I propose to move to number one.

Yes. My first question is a general one. You are talking about international markets as levers for future growth. do you expect any potential impact in the medium term from the new free trade agreements with South America and India. Then the second question is a follow-up on like commercial vehicles. Are you still seeing high pricing pressure in the second from competitors? And how it's your outlook for the total market and given the -- your new product range with Master, et cetera, as you expect to perform this year compared to the market?

Yes. Regarding the first question, you are right, and it is why we decided to focus on targeted fast growing and high potential markets because when we go outside Europe, we go deeply in the value chain. We are in India is to be more than 90% localized. And we have industrial footprint in India, in South America. And as I mentioned by Fabrice earlier, we really see India because we have the chance to be full-fledged now there, and I appointed 1 dedicated CEO to manage all value chain to manage our plant in India for India, but also to use it to improve our global competitiveness because India is competitive.

Regarding LCV, do you want to share more it?

regarding LCV, of course, we are monitoring the pressure -- commercial pressure and it's a reality in the market. This being said, we are looking tender after tender, and we don't lose so far our key accounts. We have a long-standing relationship with them, and we are capable to adjust our competitiveness with them just in order to give -- to keep them loyal, but not such a problem. On the contrary, we have a big still a big potential on proximity fleet, which is a little on LCV, what the retail on PCEs, it means very safe and value-oriented sales -- and with the lineup we have now -- we are in a position to gain market share this year.

Okay. Thank you. So I think we'll go to number #4.

Thank you. Christian Frenes from Goldman Sachs. I've got 2 sourcing questions. The first 1 with respect to horse, could you elaborate on your key milestones and KPIs that you hope to achieve between now and 2030 and also elaborate on your dividend policy there. And then the second question, with respect to your futuREady plan, when we look at your Chinese supplier mix, especially in light of European localization laws, -- how do you expect that to shift between now and 2030?

Regarding horsepower train, my first objective is thanks to horsepower train to access to the most competitive hybrid solutions everywhere. And this -- for this progress is really good. You saw that we have a road map up to EUR 1,000 cost reduction for our -- I do not say that this is already in our P&L, but all the actions are ongoing in order to deliver this before 2030.

Moreover, horsepower train allow us to get access to any technology. For instance, if you consider what Philippe Brunet explained about our new EV platform EV, medium 2.0. This is a pure EV platform, but we will also have some derivatives with Range extender. And this is coming from our powertrain. And of course, alone, it would have been much more difficult. -- additional investment, lower volume, but thanks to us powertrain, we have access to everything.

As far as dividends are concerned in our agreement with Geely especially with Aramco because Aramco invested in the company, they were 2 years stand still for dividends. So then it will deliver significant delivers -- significant dividends, then can as from..

We can start from 2027.

2027. Regarding your second question, I do not expect huge changes in terms of European footprint because we use Chinese suppliers for some technologies we do not have in Europe, especially the battery. And for this, as you may know, at Renault Group, we decided to localize. We have especially AESC Gigafactory in our plant in Douai, which is, I think, one of the most operational Gigafactory in Europe. And we are satisfied because our supplier is delivering the volume but also the performance we expect. So we'll continue this way.

And for the rest, as we mentioned during the presentation, the objective with our European supplier is to change the way we work in order to deliver in Europe the level of competitiveness, but also innovation and speed, similar as the 1 that Chinese producing maybe somewhere in Europe and all the parts coming from China would deliver in Europe. We will be as competitive. This is what we embedded in the plan. So the question is not what is the risk you manage we manage. It is in our plan, and it is what Philippe Brunet explained to you.

So Chinese supplier overall will represent something like 5% of our global footprint. But we are, of course, very happy to work with Chinese ecosystem. I think we are probably 1 of the OEM capable to work with the Chinese ecosystem in this type of win-win and balanced way.

Thank you, Francois. I'm going to get in trouble because we only had questions from financial analysts. So we'll take a question from the teams. I think there is a CNN journalist from Turkey. Can you please open the floor. Okay. We'll give it to an around -- can some journalists, please raise your hand so that we can take questions from the room. Okay. So please, number one.

Hi, good morning, [indiscernible] from [ Lavanguarria ] from Spain. I would like to make 2 questions. First of all, how is the volume we can expect with this futuREady plan, how you have said that Renault as a brand is going to say -- we're going to sell 2 million vehicles. So how can -- what can we expect from that year at that time? And also, -- what can we expect for Spain? What are you thinking for our plants, as you have said some things in the result presentations, 2 weeks before, -- what can we expect from this plant?

As you know, we never release detailed volume, we explained a mid-single-digit growth. So with this, you can do your math. We intend to grow in Europe as well. So our plan is a growth plan, not only outside Europe, of course. But also in Europe, we plan to grow with 22 new models we will launch in Europe. And we plan also to grow in each segment where we operate and for all our brands.

Regarding Spain, and I take care under control of recore, but Spain is a huge important country for Renault Group. And it's not only about sales where our brands are doing super well. It's not only about manufacturing because we have huge manufacturing is a 360 approach. And I thank the Spanish team to have this overall approach, including energy. For instance, we have a strong supplier footprint in Spain and also a top level Tier 1 suppliers, Spanish suppliers, and this will continue. But as I know your question behind yes, of course, we plan to -- and we are preparing the localization of the new platform shown by Philippe Brunet, our [indiscernible] Medium 2.0 in Spain and in Palencia, especially because Palencia is our plant for a bigger car, and we have to renew now the C&D segment there.

So this is planned, it is embedded in the plan. I -- as you asked the question, I rely on all the team in Spain to find an agreement between unions and management in order to secure the minus 20% manufacturing costs set by Thierry. I met all the teams in Spain, in Palencia and Vale. I was really impressed -- it's really absolutely great plants at the best level of Renault in terms of efficiency.

Now locally, they have to find the way to control smartly the labor cost, the flexibility allowing us to our motto is we will show that we can continue to develop in Europe produced in Europe with our ecosystem. So now we have to make things gone. And in Palencia this agreement between unions and management is something important we need to reach quickly now in order to move forward, but I am confident.

Okay. We have a question from Chinese media from -- by teams. So we'll try again. So please, could you open your mic and ask your question.

[indiscernible] Since we have noticed that foreign governments have different to survive here in China and 1 is to join the price war with Chinese competitors. The other way is to focus on the export business like Honda and Kia, so but for Renault, you didn't choose any 1 of them but to leverage the Chinese supply chain, the speed and talent advantage to develop products like Twingo, I think, is a very good example for the corporation. So -- but my question is that since you're not returning -- you're not planning to return to China as an OEM.

So what kind of Chinese market and the Chinese partners will play the role of the Chinese market and the partners will play in your future strategy? And will you develop more products here in China to better compete with Chinese competitors like BYD outside China. That's my questions.

Yes. Thank you. And -- you're right, we are not in the Chinese market. Our way to engage with China is quite innovative. And in this plan, we do not plan to come back into Chinese market just to be super -- maybe Philippe, as you are also ACDC Chief, you can explain the activity of ACDC and what you intend to develop there in the coming years.

Okay. So as explained, so we are not having kind of operation in China, but ACDC remains very important to us. You may know that CDC is not a big team, but this is part of our strategy because we want to have really the key people involved in ACDC and rely on the -- on strong partners in China, and this is what we have. So this is the model we applied for the Twingo and -- we were successful since we were able to develop Twingo in 22 months, which is a record for Renault.

We intend to continue the activity in China. So I would say we have mainly 3 kind of activities in China. The first 1 is that as we did for Twingo, we will continue to develop some vehicle. So this is what we are currently doing based on the NGA platform, which is a platform shared with Geely. So we will develop a vehicle for our global overseas market, and this is ongoing. So this is part of the activity.

The second kind of activity in ACDC is to leverage the Chinese ecosystem. So we are doing some sourcing of parts getting competitiveness and contributing to the minus EUR 400 per vehicle and per year. So this is the second activity. And the third activity, which is to me very important, is kind of market intelligence to see the trend in terms of Techno but also in terms of best practice. So this is not pure market intelligence, but this is a kind of a Northstar for us. it shows where we should go and having some experiments with different key player in the Chinese ecosystem. So all in all, this is the 3 main activities we are having in ACDC.

Okay. Thank you. We are going back to the room, and then we will take number three.

It's Henning from Barclays. Cars look great if I may say so. I wanted to bring Duncan in perhaps you obviously shared the midterm targets at the full year stage already. for me today was going to be more about substantiating the quite ambitious midterm targets and perhaps going a bit more granular into the underlying assumptions. So Duncan, perhaps you can remind us what you're assuming in terms of underlying assumptions for the main moving parts, right, in the 5% to 7%. If you could talk a bit about pricing, I think it's clear that volume and mix are positive.

And the way you also talked about it again today, savings, the EUR 400 per car translates to about EUR 1 billion. But if you can talk about the other moving parts. So what do you assume in enrichment, what do you assume in pricing, in particular and any other moving parts that would help us substantiate and perhaps add a little bit of credibility to that 5% to 7% target. Thank you. .

Duncan?

Thanks, Henning. Yes, so we did release our midterm targets when we announced the financial results on February 19. And the idea of today was to more go into the how. So I think operationally, you've got the people in front of you, demonstrating what's constructed behind the plan. We also gave a plan which was over the midterm and a corridor, and it's in a very fast, volatile market. So -- you're not going to get us giving you a granular walk down year by year as maybe some people would like. But we have obviously focused a lot today on the importance of cost and efficiency making sure that we have fixed costs flat across the cycle while increasing the number of products that we're launching and the number of technologies, I think, Philippe assumed into specifically.

We're not going to grow or price our way to an EV ICE parity. So variable cost is the second key factor. I think François, you talked a little bit about the supplier part side of things, we both got back into that. So an-- we have growth in the plan, and it's not a hockey stick plan. So it's a plan that starts this year. We have support coming from partner business. While we've talked openly about this over time, some people may look at it as being a dilution to margin -- but in fact, we're not putting any more fixed cost into the business, yet we're leveraging our existing supplier base, leveraging the efficiency we have in production and purchasing for our suppliers.

So it's -- it's something which is Roche enhancing, which is obviously the key fundamental point for us. So we have a growth plan. We have variable cost reductions. You'll see our fixed costs stay flat in cash. Obviously, we have some increase in depreciation because maybe we've invested a bit too much in the past. But the product plan is clear. The technology plan is clear. So I think those are the key drivers. You'll see our margins expand over time. and also increase in mass, and that obviously drops down to the net result and then it results into earnings per share and our ability to gradually return to shareholders over time with an increasing dividend per share.

Okay. Thank you. So we'll try number 2. I hope it is journalist.

Thank you. [ Robert Vanaper Dome ], I'm from Belgium, Transener Magazine. You talk about cost reduction per car, more efficiency, but you didn't talk about the head count as it we did change I read that Volkswagen Group want to reduce again the head count in the following years. What is the situation for Renault -- the Renault Group?

It is exactly the purpose of futuREady is to always be ready for the future. So it means to proceed transformation as early as possible in order to avoid to be in a situation with high tough restructuring. So yes, we are doing changes. Yes, we'll continue to do changes. Yes, we know what we have to do, and we share this transparently with our unions because it is a good way to proceeds step by step, the evolutions and avoid what you mentioned, a sudden big cuts in terms of work forces. This is our way and this is the purpose of futuREady.

In terms of staying in Europe, in terms of manufacturing, we stabilize our manufacturing footprint. So there is no huge changes, if you see what I mean. The visibility for each of our plants is is reasonable for the years to come. We assume that we'll get some flexibility on CAFE in 2030, otherwise, we would have to review our plan -- but manufacturing side, it's good visibility. The main challenge for our group today is technology, engineering. -- change our way to do cars, develop cars within 2 years, and this completely changed the paradigm. You generally have the question, but do you know how to do -- yes, we know as explained especially by Philippe, and we did it with a Twingo mostly developed in China.

Now the challenge is to do it in France here in the techno center, with super good engineers who used to develop cars 5 years and now we have to move 2 years. And this, we have to do it with our European suppliers. Same our European suppliers. They are capable to do 2 years in China. But same, we are in Europe with European engineers, and we have to change our way in order to do it. And this is our ambition in futuREady in terms of transition. So it's why we speak about transparency to employees. I said before, better supported means to organize structure enough in advance the reskilling, upskilling what we call with Claire, our CHRO, workforce strategic planning -- so what is the workforce we need to have in 2030?

And how we move our people to this want to be. This is permanent, constant, noncomplacent changes in order to avoid to be in the situation you mentioned in your question.

Thank you, Francois. Also keep in mind that we did the production adjustment. We reduced our capacity by 1.2 million units compared to 2019. And so we don't face the same issues that some of our peers are struggling with these days.

We'll take now question 5 from the room.

[indiscernible] Regarding Alpine, you quickly mentioned the APP platform can host an ICE engine as well. So I wanted to ask if the future A110 is confirmed to be EV only or if we will see a nice version as well. And more in general, which is your view and your plan about EVs ICE or hybrids in the sports car segment, which -- in which we see the EVs are struggling to convince the customers?

Philippe?

Yes. So the APP platform is EV-native and the new A110 will be electric. The thing is that if we want to be futuREady also in Alpine, we need to prepare the future and that's why we are predisposing also the platform to receive internal combustion engine. Doesn't mean that we are going to do it, but we need to be ready for. Concerning your second question, -- the most important thing in this segment is to offer a product which is excellent. You buy an 110, not because you need it because you want it. And if you create with the product, something which is exceptional for me, it doesn't matter if it is EV, hybrid or ICE. And the last part of the answer is that if having an ICE will create some opportunity for other markets because today, we are targeting France, Europe, but in the future, the growth of Alpine also we go through international. So -- if there's opportunity to grow again with Alpine in other markets, thanks [indiscernible], then we will make it.

Okay. So question number one, Harald .

Horst Schneider from Bank of America. First question is more short term and is maybe for Duncan. When you gave your guidance for 2026, the Middle East conflict has not yet started. Since then, we have seen this oil price spike. We see that the Dutch sales are still weakening. I think February is down something like 30%. And if I'm not wrong. So I just want to get a feeling. Can you give some reassuring comments maybe on the outlook for 2026 if the recent developments are all covered by your guidance? That's number one.

Number 2 is, when I look at your volume guidance, if I'm not wrong, it implies something like 4%, 5% sales CAGR. So you consider taking market share -- and in that context, what should we think in returns and about the price mix? And what is more important? Is the price mix more important or the volume more important? And as a follow-up to that, for Francois. What you're seeing in the context about scale? How important is scale for Renault and what if the sales targets run below expectations, does that increase the pressure for increasing scale in another way, maybe in terms of partnerships.

I take the last question first. So we have the scale. Our ambition is to be referenced OEM in Europe because we have the scale. We have the scale in Europe. We want to be a leader in Europe. We explained to you in detail today how we streamline our platform, our technologies in order to be at the top, top level worldwide for all technologies that matters. So we have the scale. Outside Europe, we also make choices, big markets, fast-growing and where we have also the scale.

So our plan is a stand-alone plan. We do not rely on any one. Regarding maybe 2026 -- and also about Middle East, I think, is a good example after Duncan. -- here, if you can explain what we did to put a working team dedicated to check this, how we use AI, data, all what you explained during the presentation to the example of of Middle East crisis in order to show that all of this is not a PowerPoint. This exists already today. Duncan, first for 2026 short term. .

Okay. So 2026. Thanks, Horst. So you said mid-single-digit growth is what we're looking at, but -- let's not forget that we'll start to consolidate RNA IPL in India as of January. We actually did the transaction in August last year, so it was only partially impacting the second half of the year. And there's not just our European volumes. So maybe I will hand over to Katrin or Fabrice to make some comments about short term, we don't want to focus on it too much. But I think the start of the year, as was impacted by some logistical problems. But in terms of order take, things have been, as we said just a few weeks ago, comfortably strong. So we've seen a good start to order take at the beginning of the year and nothing really impacting us short term.

So you said we don't assume a positive and pricing environment for 2026. That wasn't what we took into account. And as you know, we had due to regulations in Europe with Euro VI EBS. We had a lot of equipment. We also had to add into the range, which was not possible to price it on to the market. So when you're talking about revenue growth, we have consolidation of new business in India, this is close to EUR 1 billion of revenue alone. We have partner growth. We also have the model dynamic, and it's not a question of chasing market share and the value for volume remains clearly in place.

Do you want to

I think it's okay to illustrate Middle East as a way to do resilience at scale.

Francois, I have to apologize, we did not fix the Middle East crisis. But anyway, we managed not to have significant consequences. So I need to be a bit cautious because it's still going on. But the first thing when we have this kind of big event during a weekend is finally where are the ships and we'll have the time we may have the time to get a destination without a description. So -- this kind of question is very simple, but to answer for 100% of the part delivery. It was very complex to be able to answer, I'd say just maybe 2 years ago. And now on Sunday, you have the answer.

And the answer so far is that we have enough time to deviate the ships and the fact that finally is once again closed won't have any disruption consequences for us. Second question is a bit trickier is do we have supplier-suppliers, in the conflict area with a potential description area, not to disruption the crisis not today, but even in the coming weeks. -- or this kind of question is even more complex. But once again, thanks to our control tower it's possible to answer. So we have the answer. We did not have the answer in 24 hours. We had the answer in 3 days. And we know that for some components, little components, we have to be a bit careful. But so far, we are managing it.

Okay. So we'll take the question from Pushkar.

So my question, my first question is about the growth. This is something that Renault has also targeted -- in the past, I think it was the 2018 plan where you wanted to have double x Europe growth, right? For some -- for various reasons that did not work out. What makes you confident that you can deliver that growth now in this plan? What has changed? As a sort of follow-up to that, this ex-Europe growth outside Europe, it is margin dilutive from what I understand. So how does it fit into that 5% to 7% sort of long-term or medium-term operating profit target?

And then on the Chinese competition, you have articulated well what you want to do to be competitive with them. But we see every month, the Chinese brands gaining market share in Europe. So what sort of a time line can we think that when exactly the European brands can be at that level and compete with the Chinese on price, on content so that you don't lose market share?

Regarding growth, what has changed compared with, for instance, Renault contract 2019. First, -- we do not push volume. We work on value. Second, -- we have a clear brand organization and brand management, and we focus on our brands in order to deliver a clear services, products, emotion, desirability into the car we put in the market. Third, -- we strongly improved quality and now our customers perceive this well. Fourth, we do not want to rush everywhere in the world, we target on some specific markets where growth is happening and where we have good chance to deliver our case on a profitable basis.

Fourth, we do not try also to target everyone. For instance, in India, my objective is not to sell a car to all the Indian families. -- we will target based on our technologies, more medium, upper families, which is a huge market in India. So this is the way we intend to do and our value versus volume, this is very important because today, we do not decide the volume. We decide the car, the way to serve the customer. And then we are happy to see that our customer likes our car, takes our car, our volume assumption is cautious, and we are on a virtuous circle to enhance our brand, our value, our residual values. And this is what we intend to continue in this plan.

Regarding Chinese competitors. So I do not know how the other will do. I know what we are doing. And as said, we we will be as competitive as our Chinese competitors, starting by Europe. And what is the time frame? That time frame is step by step, but it's already starting today. You take the Twingo. This car is below EUR 20,000. Full car, you have Google inside, rates, features, okay. I'm quite comfortable with it. Very desirable car, a lot of emotion in the design, top quality.

So let's see, but I'm quite comfortable. Now of course, we have to proceed. The C platform explained by Philippe Brunet will be another step for us. And as you could understand, we develop cars within 2 years. So you can imagine when those cars will come. But I don't know for my competitors, but for Renault, I think that we are future ready.

Thank you, Francois. So we'll take question number one. I see Harald and Thomas around.

Harald from Citigroup. You've covered a lot of ground today. Just from my side can we just talk a little bit about the regulatory situation? IAA kind of interesting in the last week or so made in Europe. Are you -- do you have any expectations that, that makes it a little bit more difficult for your Chinese competition, particularly in the fleet markets once those rules come into play?

Secondly are you expecting any further regulatory change from the European Union? I know you're talking to them all the time. And then lastly, your EV strategy is obviously quite comprehensive. I'm assuming you're not assuming any further change in the CO2 framework in Europe. Is that correct?

Overall, the release of Madame Vander Len end of December is a good one because you have the set menu. So I'm quite pragmatic. So it's not so difficult. Some flexibility in CAFE. So this was embedded in the release. Now we expect something and especially regarding 2030.

Regulation freeze. The problem today in Europe is the price of the car. So instead of putting 108 new regulation to the automotive industry, you freeze regulation during 10 years, then as Renault, we put the 25% engineers working here for regulation, we put them to decrease the price for the customers. I commit.

And last is so-called local content. I take this IAA release as a good sign that Europe is starting to move. It looks very complex, so I'm not capable today to comment. But again, let's be very common sense. First, Renault, I assume, will be a European automaker, I assume.

Second, if you say to China and our Chinese competitors that Europe should not be closed, and this is Renault recommendation. But the rule apply in Europe are the same that China did so successfully 20 years ago. I mean you are welcome, but you have to invest in Europe, produce in Europe, use the supplier ecosystem, create job, put R&D, it will work.

So I'm reasonably optimistic. The most important for Renault today is to get concrete decisions in order to fully stabilize the European path.

Okay. Thank you. So we will move to the other side of the room with number 4.

Philippe Houchois at Jefferies. I guess I was going to ask this question about the IAA. And in your sense, what is the probability that what we saw in that release is actually going to come through and over what time frame? Because it seems to me it's a lot of proposals and then it's going to be dissected at OEM level, supplier level, country level.

And what comes out of it could be in 2028 and a shadow of what the EU has been proposing. So what's your feeling on this? And in that case, also, what's going to happen between now and then? Because it seems to me that what has been proposed by Brussels is almost like an opportunity for the Chinese to try to accelerate some of their investment in Europe before the rules change. And interested to have your views on that.

My job is not to have feeling and I have not the difficult task of [indiscernible] So at Renault, we want to be ready for any scenario. So first, we have 2 legs. We have all the technology and the legitimity for electric car, and we have a top, top technology for full hybrid. And those are the 2 legs. And it is why Fabrice released that his target for Renault brand in Europe is 50% electric, 50% hybrid.

As I mentioned before, I consider that as Renault, we should show our capability to be as competitive as our new Chinese competitors in Europe. This is the way we manage. For your question, I'm reasonably optimistic, but same as you, I do not know the time line. But we are future ready. We are really ready to any possible scenario. And it is what we want to show you this morning.

So we will take the number one.

[indiscernible] I would like to ask you about Dacia. Spain is a very important market for Dacia. I would like to know if he's in your plans make a Dacia car in [ Malaga ] or Balencia in next years.

Katrin, regarding Dacia, Spain is an important market for Dacia. And regarding manufacturing, I'll let you decide if you answer or Thierry.

Okay. Yes, I can only confirm Spain is a very important market for Dacia. We are on this market, the #2 retail brand. We are still growing. We had a very good year '25, and we are expecting to continue that first path. And I'm not going to take the answer away from Thierry, but currently, we have made our decisions when it comes to products that we want to launch. So from my side, there are no news for Spain.

Okay. You didn't give me a lot of time to think about your question. But okay, I think what is very -- looking at our industrial system, one key asset we did not highlight today, but we had the opportunity to do it in different presentation is the flexibility. And we can really integrate a new vehicle with a very low investment cost.

And that's why we are able, for example, in to welcome the new Micra or new Eclipse on top of the for Renault models we have already. That is to say that deciding where we want to allocate a vehicle is finally one of the last decision we will take.

So coming back to Dacia, we just launched an incredible lineup. And Swiss lineup has just been launched. So Striker will be launched next year. Bigster has been launched last year. So we have already the footprint for the current generation. For the next one, everything is open.

So we'll take question number one.

Thomas from Kepler Cheuvreux. Two questions, please. The first one on the Renault brand in India and Brazil, the growth targets. Over the last 15, 20 years, you've sold cars in these regions, but small cars like Kwid and now you're aiming to sell bigger cars like Bridger, but also much bigger cars.

You haven't talked much about the perception of the Renault brand and how you believe consumers are going to be convinced that they can trust you to buy a EUR 25,000 fuel car versus a EUR 10,000 fuel car in these countries where competition is quite intense, specifically in India. That's the first question.

The second -- sorry, I go back to Duncan. I understand it's a traded for finance matter. Can you share with us, even if it's just a range as well, some indication about your pricing assumptions for Europe as it has been said earlier, Chinese automakers have captured 10% of the market in average over the last 3 months.

It coincides with the relative weakness of your registrations probably because of logistics issue partly. But it's a clear concern for investors. So we need to understand what you've assumed because clearly, that will partly impact your profitability. And I'd like if it's possible for Duncan to say a few words about CapEx and working capital.

You've said EUR 1 billion inventory reduction. Can we have an indication about what you expect overall for working capital and whether CapEx stays where it's been, goes up, goes down, knowing that it's up in '26.

Okay. We start with Renault brand in India and Brazil.

Yes. India, Brazil, a very interesting question because effectively, we've been present for years in both countries. And of course, we sold small cars, as you say. But we developed also quite intensively our brands.

If you take Duster, for instance, in India, Duster is a brand by itself. It's a brand because we've been the first SUV on the market. And that's why this kind of new concept like Bridger, which is, by the way, smaller than a Duster, but bigger from inside and which will be supported by new technologies, multi-energy technology will be a game changer in the market.

It means we are not starting from scratch, neither in India nor in Brazil. We are starting with a lot of customers who are driving Renault already in those countries. Of course, we do that on a very India, starting with a very modest way because we know that our share of market is still very low. But on the contrary, the potential is huge and our brand has a lot of potential.

If I take the example of Brazil, we are doing already and we are selling already cars on new price segments like Boreal, which has just been launched a few months ago and which is doing a very good beginning of career. And if you want to extend a little more than both countries like India and Brazil, just take a look at Korea.

We've never been in Korea on the D or the E segment and Grand Koleos now 1 year ago and Filante now just a few weeks ago are working very well. It means nobody is forbidden for Renault. We have and we are in our historical place, and we have the good technology. Let's compete, let's fight. And I think we have a good chance to make it happen.

Okay. And Duncan, coming back to beginning of the year and the pressure by Chinese competitors in Europe in pricing.

Yes. So I think [ Mr. Colex, ] I'd say price mix and enrichment we plan to be negative. So we took an assumption of a couple of hundred million negative. So a few hundred million negative was built into there as raw materials were also negative. But maybe coming back to Ening's question earlier, we have obviously a strong cost reduction.

Second point was on CapEx R&D. So we look at CapEx, R&D and supplier entry ticket as a whole, and that will remain under 8% of revenue across the plan. And Tom, you called out a question in one of the slides, there was an inventory reduction. It's the EUR 1 billion is the average level of inventory throughout the year, okay?

So it's not that we're trying to eke working capital out of the plan. The working capital assumption in the plan is a negative figure each year for a couple of hundred million euros. So despite the fact structurally, it could grow, we've been very prudent and the free cash flow is not generated from working capital in the plan.

And coming back to -- each time you asked a question about Chinese competitors, and yes, indeed, we value very much what they are doing. So we do not underestimate the strength of the best Chinese competitors. And it is why in our futuREad plan, we intend to have the technology road map in order to be in the base.

We intend to continue to invest in products, and we think that we can do more desirable and more European native products. And on downstream with what we presented today, namely the strength of our brand management the way we organize customer experience, the way we engage with our dealers, we think that downstream, we can bring higher value in terms of residual value management, we think we can bring higher value than some of our competitors.

So upstream, yes, true with some more catch-up, but we are in the pace. And we will be at the level of the best in terms of innovation, cost and speed. And downstream, I deeply think that we can bring higher value. This is our way to manage.

Okay. Thank you, Francois. So we will now go to #3.

Christoph Laskawi From Deutsche Bank. I'd just like to ask on the cost savings per year per car that you target, the EUR 400. In your assumption for the midterm plan, how much of that do you pass on to the customer? You just highlighted that pricing obviously is part of the problem in Europe.

And in '26, we have certain headwinds and you need the cost savings to offset part of that. But over the longer period, what's a good share to assume to be passed on? And could you comment on if that varies by brand and powertrain type?

Do you think I will answer to all your questions?

Maybe Duncan?

Do you think I want to answer all of it. So I mean, obviously, in the past, we'd maybe benefited from a couple of years ago, supply issues across the market. So we were able to manage to maintain more of our variable cost savings than we were actually giving away in price. You can assume we've been prudent in this in the plan. Okay?

So we're talking about EV, ICE parity over time. So cost reductions, obviously, you've seen demonstration on the ICE side of things with up to EUR 1,000 on hybrids. You can assume the EV with Philippe's presentation in terms of talking about technology and the difference of 40% between one series and the next is going to be more than the average part of that. So I'd say that we've assumed that we will give away -- or give back in terms of value because that's what the market will require because cars have got too expensive, the savings that we are making. I don't think I'll go much further than that.

No. But anyway, I will give you a few tips because when you will digest the detail of our presentation this morning, you saw Philippe showing that our new energy EV Medium 2.0 is minus 40% cost compared with previous generation. In the presentation we said that thanks to our new standards 2 years development, we intend to decrease the entry ticket by up to 40%.

We also disclosed that we will decrease the COG as the cost of our cars from 10% to 30% compared with previous generations. We mentioned minus 20% for manufacturing, minus 30% for logistics. So you see that each time we have a KPI, this is quite aggressive KPI for sure double digits.

So if you put all together, you see that we take very seriously the possible price tension that we may have in Europe and in the world. And with what we know, what we see, especially in China, also in India, what we forecast in Europe compared with some other markets, we are futuREady for this.

Okay. Thank you. So the last question will be #3 again.

I'm Mark [indiscernible] Northern France from the webinar. Can you give me more details about the models you intend to produce in France and especially in your Northern France factories?

Overall in Renaulution plan, we gave a clear priority to France. And thanks to this today, our manufacturing footprint is secured in France for all the plants. What we intend to do with futuREady in the next 5 years is to invest the same level of investment that what we invested in Renaulution. So its why to answer to your question, the visibility for our electricity hub is positive moving towards 2030.

Overall, if you compare 2021, 2025, 2026, 2030, we produce in France plus 20%. So this is super concrete. Of course, it is an assumption. It depends on a lot of topics. But as you see, the strategy gives a clear positive visibility to our manufacturing footprint in France.

Thank you, Francois. So this concludes our presentation today. Thank you for your attendance here with us and online. Of course, the team remains at your disposal should you have any questions.

And for those here in the room, the next event will be lunch, birth at launch just up the stairs. And then for the media roundtables, your press contacts will reach out to you and accompany you to the prepared room for that.

Thanks a lot, and enjoy your day.

Hello, everyone. Welcome to Renault Group's 2025 Financial Results Conference Call. I remind you that this call is recorded and will be made available in replay on our website after the call.

During today's call, we will outline the 2025 strong performance from our group, and we'll discuss the 2026 and medium-term outlook. This presentation will be made by Francois Provost, CEO of Renault Group; and Duncan Minto, CFO of Renault Group.

Francois, the floor is yours.

Thank you, Florent. Hello, everyone. Thank you for joining the call. It's a pleasure to be here with you for this important moment, not only to present, as mentioned by Florent, our 2025 full year results, but also to share our '26 outlook and medium-term financial ambitions.

But first, I would like to start with our strong momentum since July 2025. One month after my nomination, I could release our new leadership team. And with this team, we already took several important decisions to simplify, streamline our organization.

Fabrice Cambolive as a Chief Growth Officer, enhance complementarity between Renault and Dacia, and this start to deliver results. Our CTO, Philippe Brunet set one unified engineering organization, and the team was capable to reorganize this within 4 months.

We released our Ampere 2.0 project in order to extend the mindset of Ampere to all our Renault Group operation. I decided to stop Mobilize Beyond Automotive, focusing more on customer experience for our EV customers.

On India side, we appointed a CEO in charge of the full-fledged operation in India in order to prepare our next midterm plan in India. And last but not least, we reshuffled our light commercial vehicle operation in order to put this important operation back on track.

On the partnership side, we also grant important milestone with the closing of our agreement with Geely in Brazil. So today, Renault do Brazil or I should say Renault Geely do Brazil is selling Geely cars and the localization of the Geely platform, both for Geely and Renault products is on a good track. And we also, as you well know, released our partnership with Ford in Europe.

Let's move now to our financial results. We got the job done. July guidance has been delivered with operating margin 6.3%, which means EUR 3.6 billion; free cash flow, EUR 1.5 billion; and record high automotive net cash position at EUR 7.4 billion.

All our brands delivered strong performance in 2025. We recorded 2.3 million units overall in total with third consecutive years of growth for Renault Group. Renault brand, first, also third consecutive year of growth, plus 10% growth in passenger cars, second brand in Europe for PC and LCV, first French brand worldwide.

Dacia also delivered good results with plus 3.1% growth. We have more than 10 million vehicles sold with Dacia brand since 2004. Dacia is second brand in retail passenger cars in Europe, and Sandero is the best model sold in passenger cars in Europe. But also Alpine, because with Alpine, we have triple-digit growth. First time ever, we achieved 10,000 sales in a year for Alpine. A290 now is gaining a good momentum, and we launched -- just launched A390 in the European markets.

Our so-called 2-leg strategy is working well. We continue to push on EV and software, plus 72% sales growth for Renault brand EVs in Europe, plus 77% for the group in Europe. The mix of full EV for Renault brand is 20%, 14% for Renault Group.

But we have also very good results on hybrid. Our hybrid E-Tech full hybrid is second best in Europe. We grew plus 35% sales growth in hybrid in Europe. And the mix of hybrid for the Renault brand is 38%, but also overall 30% mix of full hybrid for Renault Group in Europe.

All of this is due to the successful launches of our new product. I start with Europe, and I start, of course, by Renault 5 with over 100,000 units sold in 2025, and leader in EV B-segment in Europe. Symbioz, successful launch as well with 89,000 units sold since the launch. It's Renault's best-selling full hybrid model, and it is a C-segment growth for Renault brand in Europe. On Dacia side, Bigster was a big hit in terms of launching last year. We already sold 67,600 cells. It is the best-selling C-SUV to retail customers in Europe in H2 2025.

Outside Europe -- our push outside Europe started. As you know, we launched Grand Koleos in South Korea, about 44,000 units sold in 2025. It is a top 3 D-SUV HEV in South Korea. Kardian is also a success with about 50,000 cells sold in 2025, both in South America, but also very successful launch in Morocco. And the Duster, over 27,000 cells sold outside Europe in new markets like Colombia, Australia and Saudi Arabia.

All of this is based on strong fundamentals supporting the performance. We keep healthy inventories, 539,000 total inventories. As you know, we have high utilization rates, over 85% for our manufacturing footprint. We have solid order intake fueling order book, plus 3%. We continue to value -- to focus on value over volume, plus 17 points above market average on retail channel mix for our brands. All of this leading to increase of the residual value from 5 to 12 points above peers in Europe. We have, also on cost side, a very strong performance with over EUR 400 COGS reduction per vehicle in average worldwide in 2025.

Duncan, please detail the results.

Thank you, Francois. Good morning, everyone. Thanks for joining the call with us this morning. Without ado, let's go straight into the zoom on the financial results.

Starting with group revenue, Renault Group enjoyed a 3% revenue growth at EUR 57.9 billion in 2025. As you've just seen, the result has been achieved while staying true to our value over volume credo. At constant exchange rates, revenue was up 4.5%. Automotive revenue stood at EUR 51.4 billion, up 1.8%. The Mobility Services contribution amounted to EUR 91 million, up EUR 22 million versus last year. And last but not least, Mobilize Financial Services revenue increased 13.2% to EUR 6.4 billion, mainly driven by higher interest rates of the portfolio and the increase in average performing assets.

Drilling into Automotive revenue, it included in the first bucket, negative 1.6 points of exchange rate, mainly related to the devaluation of the Turkish lira and Argentinian peso. Constant exchange rates, revenues increased 3.4%. The volume effect was positive at 0.7 points, driven by an increase in registrations, which was partly offset by a lower restocking within the dealership network in 2025 compared to 2024.

As mentioned by Francois, group registrations rose by 3.2% this year, totaling 2.3 million units, marking the third consecutive year of growth, driven by 3 distinct brands. Each brand surpassed market performance, aided by the deployment of the international game plan and the expansion of our electrified lineup.

The 3.2% increase in registrations was partially offset by a lower restocking within the network in 2025 compared to 2024. As you can see on the graph, the stock rose 5,000 units in the year compared to 62,000 in the previous period.

As of December 31, total inventories of new vehicles stood at a healthy level to operate and represented 539,000 units, of which 442,000 at independent dealers and 97,000 at group level. This level of inventories is supported by a 3% growth of the order intake, resulting in an order book of 1.5 months of forward sales at year-end 2025. Order trend continued to be positive also at the beginning of the year with a double-digit increase over the year in both PC and LCV.

The sales to partners, which was the next bucket effect was slightly negative, mainly due to the positive R&D billing one-off in the first half of 2024 and the deconsolidation of Horse Powertrain revenues from the end of May. These were partly offset by gains from partner programs, particularly Nissan Micra and several models for Mitsubishi. Additionally, our Indian activities, RNAIPL, inclusion in the consolidation perimeter has happened since 1st of August, which contributed positively.

Let's review price, product mix and geographical mix effects. The price effect was slightly negative at 0.2 points, mainly due to the ongoing commercial pressure, especially in Europe. Price increases helped partially offset negative currency impacts. The group continues to prioritize residual values as part of its value over volume strategy, as mentioned earlier.

Product mix had a positive effect of plus 3.2 points, driven by the recent launches, notably Dacia Bigster, Renault Symbioz, Renault 5, the A290 from Alpine, the Renault 4 and the Renault Koleos. This trend will continue to support results in 2026.

Geographical mix was negative at minus 0.5 points attributed to increased sales outside of Europe. The international mix rose to 30.4% in 2025, up from 28.6% in 2024. Finally, the other impact resulted in a 0.3 point increase, primarily due to the performance of parts and accessories and distribution activities.

So let's turn now to analyze the operating margin. This year, we posted an operating profit at EUR 3.63 billion, representing 6.3% of revenue. The Automotive segment operating margin stood at EUR 2.18 billion or 4.2% of auto revenue. Mobilize Financial Services operating profit reached EUR 1.47 billion.

So looking at the evolution of the group operating margin. On the first point, currencies had a negative impact of EUR 282 million, mainly due to the Argentinian peso. The Turkish lira positive impact on production costs was offset by the increase of the group sales in Turkey. Volume effects contributed a positive EUR 186 million, thanks to the increase of our invoicing and increased sales to partners in H2.

Price, mix and enrichment and cost factors together had a negative impact of EUR 341 million, that's the sum of the 733 and the 391, reflecting strong commercial pressure, especially in Europe, a higher EV mix, higher international sales and fewer high-margin LCV sales. Efficient cost management helped partially offset these impacts.

When it comes to costs, we achieved our target of reducing the cost of goods sold by EUR 400 per vehicle in 2025, mainly due to our strong purchasing performance and the initial benefits we're seeing from the powertrain synergies delivered by Horse. That said, even with these positive results on COGS, our overall costs were affected by higher warranty expenses in the second half of the year, largely due to a recall campaign on powertrain. Also, despite a strong performance, industrial and logistics costs were impacted by higher amortization related to recent launches.

R&D posted a negative impact of EUR 87 million, primarily due to an unfavorable comparison base with nonrecurring R&D billings to partners in the first half of the previous year. SG&A improved by EUR 59 million, thanks to strict control of expenses and others effect was negative by EUR 59 million.

Mobilize Financial Services posted a record operating profit. I'll just comment that in a minute. But the last bucket highlights the impact of Horse deconsolidation. It represented a negative impact of EUR 279 million in 2025 compared to 2024, explaining a significant part of our operating margin decrease. From now on, there will be no more impact of Horse deconsolidation on the bridge. Competitiveness from Horse will be tracked in the cost bucket.

As I said, Mobilize Financial Services generated a record result, recording EUR 22.3 billion of new financing, up 3.3%, thanks to growth in both registrations and in the average financed amount. Average performing assets hit EUR 59.3 billion, up EUR 3.3 billion versus 2024, driven mainly by strong commercial activity on the customer financing business over the last years, following the end of the electronic component shortage.

Net banking income as a percentage of average performing assets improved by 19 basis points, highlighting a robust margin policy. Cost of risk at 0.36% remained in line with our historical levels. Operating costs in absolute value improved by 4 basis points as a percentage of average performing assets and remained stable in absolute value, excluding positive one-offs in 2024. Overall, Mobilize Financial Services posted a record operating profit of EUR 1.468 billion, up EUR 173 million year-on-year.

Moving to key items from our group P&L below the operating margin line, other operating income and expenses were negative at EUR 11.5 billion, mainly included the noncash loss linked to the change of the accounting treatment of Renault Group's stake in Nissan for EUR 9.3 billion that was recorded in the first half of the year. It also included impairments for EUR 0.9 billion, restructuring costs for EUR 0.4 billion. These restructuring costs notably embedded an early retirement scheme.

Other items included here the FCA penalty provision at MFS. Indeed, we took, this year, an additional provision of EUR 222 million to address potential risks related to the U.K. Motor Commission matter. Other items are also included with the EU CAFE LCV provision for a total of around EUR 100 million at the end of 2025.

Moving down to net financial income and expenses. This amounted to EUR 208 million compared to EUR 517 million in 2024. Hyperinflation in Argentina had a lower negative impact in '25 compared to the previous year.

The contribution of associated companies amounted to negative EUR 2.2 billion compared to a negative EUR 521 million in 2024, included Nissan's contribution for negative EUR 2.3 billion in the first half, while the contribution of Horse Powertrain amounted to a positive EUR 245 million this year. I remind you, Nissan no longer impacts the net result since the change of accounting method end of June.

Current and deferred taxes represented a charge of EUR 522 million, including EUR 24 million related to the French exceptional surtax. All in all, and excluding Nissan's impacts, net income group share reached EUR 715 million.

Let's now move to free cash flow generation, starting from the top line. The cash flow reached EUR 4.7 billion in 2025 compared to EUR 5.2 billion last year. The year-on-year decrease was meaningfully lower than the decrease we experienced in our operating profit, highlighting the resilience of our performance.

Worth highlighting as well is that 2025 cash flow included EUR 300 million dividend from MFS versus a EUR 600 million dividend in 2024. The EUR 300 million was EUR 150 million of dividend for the year 2024 paid in the first half of '25 and EUR 150 million anticipated for the year 2025 paid in H2 2025.

Tangible and intangible investments cash outflow included asset sales -- including asset sales, amounted to EUR 2.8 billion, rather stable compared to 2024. Including the part of R&D expenses accounted for in the P&L and excluding the impact of asset disposals, the total amount of group's net CapEx and R&D stood at EUR 4 billion, relating to 6.9% of revenue compared to 7.2% of revenue in 2024.

The change in working capital requirement was a headwind of EUR 190 million. This underscores the group's willingness to have a healthy and sustainable working capital requirement management. In this context, the group aims to unwind, in '25 and '26, the significantly positive EUR 844 million change in working capital recorded in 2024. Finally, restructuring charges had a EUR 300 million cash impact.

All in all, Renault Group generated EUR 1.5 billion of Automotive free cash flow in 2025, demonstrating a resilient profile. The Automotive net cash financial position stood at EUR 7.4 billion on December 31, 2025, compared to EUR 7.1 billion a year before. This evolution was mainly driven by the strong free cash flow generated, dividends paid to shareholders for EUR 697 million and the impact of foreign exchange, IFRS 16 and others, which resulted in a negative EUR 392 million, partly due to the employee share plan. Liquidity reserves stood at a comfortable level of EUR 17.7 billion.

I'll end this presentation of our '25 results with the dividend that we will submit for the approval of the general assembly on April 30, 2026. The proposed dividend for the financial year 2025 is EUR 2.20 per share. This dividend, I think, is a clear signal of confidence in the future of our company and confirms our intention to remain attractive in terms of return.

I'll now hand back over to Francois for the '26 and midterm financial outlook.

Thank you. Thank you, Duncan. Before we look at the midterm perspective, let me start with 2026 full year financial outlook. As you can see, we aim to deliver, again, a strong and resilient results in complex environment with operating margin circa 5.5% and free cash flow circa EUR 1 billion. Our key assumption is same pace in terms of global markets, stable Europe, South Korea growth, India, South America and also a high level of market in Turkey and Morocco.

As you can see, we have a slight decrease in operating margin ratio. This is due to expansion of our business, especially in India, South America, South Korea, strong increase in terms of sales to partner and of course, also keeping a strong momentum in terms of battery EV in Europe.

I remind you that in 2026, we have consolidation of RNAIPL, our plant in India. In this outlook, we embedded to keep a very strong cost reduction activities as well as a negative change in working capital. We also expect EUR 350 million dividend from Mobilize Financial Services.

In 2026, we will keep intensive product offensive, both in Europe and outside Europe. Let me start with Europe. On passenger cars, we will have the full impact of our new Renault Clio and the start is super strong. The new Twingo E-Tech Electric will be launched in H1. For Dacia, we'll have a new A-segment EV, a new C-segment ICE and full hybrid version.

On LCV side, we will launch this year our new Trafic van E-Tech at the end of the year. But in parallel, we'll have the full benefit of the full set of version of Master now available. We will have also the benefit of the Alpine A390 in Europe.

Outside Europe, we will push strongly our growth, notably with Renault Boreal in South America and in Turkey, the launch of the Renault Duster in India, Renault Filante just released also in South Korea. And I would like also to mention the launch of our new pickup in South America in H2 2026. This is for 2026 overall financial outlook.

Next March 10, we will release our new strategy, our new strategic road map for Renault Group. This will be based on 4 convictions. The first one is that we have and we will continue to give top priority to our product to deliver a second successful lineup in a row in Europe and to be a contender in high potential markets outside Europe like India and South America. We will also release a strong ambition in terms of customer experience.

We will release detailed technology road maps for all key technologies, especially regarding EV and software.

Third, we will deliver top operational excellence because in this tough competitive market with a lot of uncertainties, we need for each function to target the best-in-class performance.

And last but not least, our conviction is clear. We will not win alone. We will build sustainable, trusted, transparent relationship with our key stakeholders, of course, our employees, but also our suppliers, our dealers and our partners. Our next midterm plan as Renault Group is a stand-alone midterm plan, and we will use our partnership to boost our competitiveness and strengthen our position, especially in key international markets.

In terms of midterm financial outlook with this strategy, with this midterm plan, we are happy to share with you today our midterm financial outlook, which is about robustness, regular and resilient financial results. In a very challenging environment, we will create value with consistency, predictability, discipline and realistic approach.

As you can see, we aim to deliver regular 5% to 7% operating margin as well as over EUR 1.5 billion per year on average free cash flow. We will do this, and I will now detail a bit more those items.

In terms of operating margin, as you can see, our industry is very cyclical. Over the past 20 years, our average COP was 3.9%. And what we disclose today is that we aim, in the next year, to deliver between 5% to 7% with a steady mid-single-digit revenue growth over the midterm, supported both by the Automotive business and MFS. This will be also delivered through a steady improvement in variable costs as well as a fixed cost discipline with a strong focus on productivity.

If we move now to cost reduction, we will deliver every year EUR 400 cost reduction in average per vehicle. We will continue to improve our efficiency in terms of development of new products. We will deliver in the coming years up to minus 40% reduction in new projects entry ticket, means R&D CapEx and supplier entry ticket. Our SG&A expenses will remain stable over the midterm. With all of this, we will keep a cautious breakeven point, and we'll keep stable our cash fixed cost base over the midterm.

Let me move now to free cash flow. With all of this and enhanced performance, revenues, focus on costs will enhance our profitability. As a consequence, we will improve and deliver strong free cash flow, R&D CapEx and supplier entry ticket below 8% of group revenues. MFS dividends will come back to historical high level, circa EUR 500 million a year on average. But also, I would like to mention that in the next years, we will start to have high level of dividends from Horse Powertrain to start from 2027 onwards.

In terms of capital allocation, we will have a very strict discipline and balanced capital allocation. Of course, the top priority will be to invest into our products, as I mentioned, with R&D CapEx and supplier entry ticket below 8%.

In terms of financial investment, we'll have very high ROCE request. We will, with all of this, preserve a strong balance sheet to maintain strong liquidity reserve to protect our investment-grade profile. We will also return value to our stakeholders, to our employees with profit share mechanism. But today, I also confirm our long-term objective to have 10% of our share capital owned by employees. And of course, to shareholders, we will have a progressive increase in dividend per value (sic) [ share ] in absolute value.

It is what I will present now in the next page regarding dividends. For this as well, you see that over the past 20 years, we had EUR 1.65 per share dividend, but circa EUR 0.4 per share if we exclude Nissan dividends pass-through. And now we aim to deliver EUR 2.2 per share this year, next year, explained by Duncan, but also progressive increase in dividend per share in absolute value.

As you can see, and this is my conclusion, in a cyclical industry, now Renault after 5 years of Renaulution, clearly a success story. We are capable and we will deliver a success system. And it means in terms of financial outlook, sticky, robust, resilient financial performance. Thank you.

Thank you, Francois. Thank you, Duncan. With this, we will now open the Q&A session. And the first question will come from Thomas Besson, Kepler Cheuvreux.

First question, I'd like to talk about your recent momentum. I mean, November, December, January in Europe have seen clearly a sharp deceleration of your commercial dynamic. Can you talk about this, explain if there's something unusual or if it's partly driven by the sharp increase in Chinese automakers' share or your geographic mix or the momentum in LCVs? That's the first question.

Second, could you say a few words if you can already or eventually postpone that to March 10 about capital allocation? Talk about the Nissan stake, whether you still plan to reduce that over time, what you plan to do with FlexEVan or whether there are eventually some other investments that might require some capital or whether we could hope to see eventually higher capital returns in the future, given the strong net cash position you've reported?

And finally, a question on the financial services operation that reported very strong results again in '25. Could you explain why the dividend is not rising faster in '26? I think we thought it would be a bit more. I've seen you raised the equity of the business in '25. Could you detail the evolution of the cost of risk and remind us what was your residual value exposure at the end of 2025 directly carried by the financial services operations?

Thank you, Thomas. A lot of questions, so I will try to organize this. In terms of commercial performance in Europe, we delivered a good performance in 2025, and we'll continue to do so next year. And maybe, Fabrice, you can give the overall overview of your strategy in Europe in 2026.

Yes. I don't know, we'll check with you what you mean with deceleration in November, December. But our results in Europe are not only robust, but I would say, consistent in the time. Our growth is based on growth on PC retail market in Europe in 2025, and it was the case for Renault and for Dacia, 3 years in a row. And I would say this year in 2026, we will benefit from many positive factors.

First of all, a good recovery on LCV. You know that we had this phase-in, phase-out of Master with the launch of the new Master and now we have the full diversity and this should -- and this will already help us to increase our volumes on the LCV side, which is a very good point.

The second point is that we are -- we will have a robust and we will consolidate our strong position on the A and B segment with the renewal of Clio on one side, but the arrival also and the extension of our market coverage on the A segment with the new Twingo and a new A electrified -- segment A electrified model for Dacia.

Next point, we have a stable position on the C-segment, and we will add on this segment a new car from Dacia side. And of course, we'll count on our 2-leg strategy between hybrid and EV to fulfill the consumer needs market by market.

On top of that, as you saw also last year, we have an increase of our international volumes, double-digit increase last year, which should continue through the number of model launches you saw and presented before by Francois. It means, for me, no alert from the commercial side, a good position in terms of CO2 in Europe, which allow us to play between volumes, pricing, profitability and CO2.

And this always structured value-oriented commercial policy, I think we are working far above pure pricing power. We are working in value. What does it mean? A good channel mix, good residual value, good capacity to increase our model mix. It means on this side, we are working on the safe -- on a very safe dynamic.

Thank you, Fabrice. Regarding Nissan, I think the priority for Nissan is the success of the Re:Nissan plan. And I share very often with Ivan, and I'm confident Ivan and Nissan team are capable to deliver this plan. I think they just released encouraging results a few days ago.

My personal opinion is that once Nissan will be somehow stabilized, we will see more opportunities than today between Renault and Nissan because both groups, we have to concentrate on priority in terms of resources. It means that each time one partner can help each other to share resources and our geographical footprint is very complementary.

I personally think that you will see in coming years even more opportunities between Renault and Nissan that what we are successfully doing today, especially in Europe and in India. And for Nissan shares, as you know, everything is open, and we will consider any decision with the unique interest of our shareholders.

Regarding FlexEVan, Flexis, I'm happy to share that, with our partners, Volvo Group, Volvo Trucks, CMA CGM, we are about to reshuffle the business model, which is unfortunately needed because the pace of electrification for light commercial vehicle is much below what we expected.

But the product is good. The product is really good. The product is now almost fully invested. It means, Thomas, that our SDV now is invested and everything will be launched, I mean, Trafic E-Tech included SDV this year, and this is -- and this will be a strong asset already invested for the next midterm plan.

And regarding the 2 last questions, MFS and dividends, maybe Duncan.

Yes. Thank you. Thomas, so yes, so we did do a Tier 1 equity or Tier 1 raise last year. But I mean, the capital situation at MFS is really strengthened. It was building for the future. Cost of risk, you asked, I think I called it out in the slide, so 0.36%, we're pretty much in line with historical levels, things are under control.

In terms of total exposure for residual values compared to average performing assets of close to EUR 60 billion, we have a EUR 4.9 billion exposure to residual values, around EUR 700 million of that is EV alone.

And in terms of dividend, yes, so it probably wasn't well known, but we received EUR 150 million in the first half, which we published in June. We got a pre-dividend of EUR 150 million in the second half. The outlook is therefore EUR 350 million for 2026. And obviously, as we move on through the midterm, back up to EUR 500 million per year.

And the next question will come from Jos Asumendi.

A few questions, please. Duncan, can you help us a bit with the expectations for 2026 on the bucket of raw materials, purchasing, warranty and industrial costs? And if you could comment there also on the cost savings that we're expecting from Horse to be booked in 2026. That will be question one. There's probably 3 questions there. But question one -- but that will be the first one.

And then two, Francois, can you comment on -- and I'm happy to leave it also for the CMD, but you're mentioning some very big numbers like 40% reduction in entry tickets. Does this mean that some of the vehicles that you're planning to develop going forward will be coming from Shanghai? Is there an additional opportunity to work with Chinese suppliers or with Shanghai R&D development center to continue to develop some vehicles from that region, which could allow you to reduce further entry ticket by that proportion, which is very large?

And then also happy to leave it for the CMD, but I was wondering if you could just comment briefly on your market share assumptions in Europe for '26 and '27 in the light of the competition that we have, obviously, Chinese OEMs entering the European market?

Thanks for the questions. I'll start in terms of the 2026 outlook bucket by bucket. So for FX, the impact on the operating margin will be more negative in '26 than '25. We're still seeing Argentinian peso, Turkish lira, it's the same kind of exposure that we have this year, but it will be a stronger impact.

Obviously, as you call out, and maybe Francois or Fabrice will come on to the market share questions afterwards, but not just a market share in Europe, but growth in volumes, obviously, in line with our mid-single-digit sales growth assumption, both from internal plus also partner businesses.

We do continue to see commercial pressure remains strong, and so therefore, weighing negatively on the price mix element for the activity. Enrichment will be a big part of that due to the regulatory costs. We had the Euro 6e base, which is impacting powertrains, which came into force on Jan 26 is impacting a lot of our B segment, B+ segment [indiscernible] negative.

But I mean in terms of dilutive, we have growth in EV, we have growth in international, but that's been well called out. As you say, we do have a strong dynamic on the cost reduction. That remains very key in terms of priority. So that will be positive. Variable costs, the fact that we're doing EUR 400 per vehicle will impact us very positively. And also, we won't have the warranty recall provision that we had in the second half of the year.

And as fixed costs will be managed stable, the only thing that's coming through is slightly higher amortization. Fixed cost and cash are stable. And I think MFS will be able to produce as well, if not slightly better than this year in terms of outlook. So that's bucket by bucket. You asked for the 3 of the main ones, but that's the full walk down.

Okay. Jos , regarding your 2 next questions, yes, we think we are capable up to minus 40% entry ticket reduction for the new model project development compared with previous generation. And yes, this is especially because we could assess in detail the way Chinese ecosystem is doing, thanks to our ACDC development center in Shanghai.

I remind you that our proof of concept was Twingo. And as a matter of fact, we are launching Twingo within 21 months, showing that we are capable to do. In the next midterm plan, our challenge is to put this as a standard and to demonstrate that Renault is European OEM capable in techno center with our supplier to develop within 2 years our new model as a standard, and this is a strong part of the next midterm plan. And this is indeed for this main reason that we are capable to release such a performance for entry ticket.

And regarding market share in Europe, as you know, we do not disclose market share. What I can repeat is that, together with Fabrice, Katrin, Philippe, [ Krief ], we will continue to give priority to value versus volume. And thanks to this, we deliver steady growth, we improve the value for our customer, we improve the residual value, we improve the loyalty of our customer.

You mentioned Chinese competition. If I take the example of Spain, which is probably where the Chinese growth is the strongest one, you can see that our brands, both brands are growing and gaining market share. So it's why I do not underestimate the strong Chinese push because I know very well the strength of Chinese industry.

But I think that, with our strategy, with our recipe, which is about clear brand positioning, strong product, value versus volume, we will be capable to sustain the growth in Europe in the next years.

And the next question will come from Horst.

I hope you can hear me.

Loud and clear.

That's great. My first question is just a quick one. When you talk about midterm guidance, could you specify you talk about which year? Is that now a 2028 guidance? Then the second one is, again, I want to come back on the 2026 guidance. I missed, Duncan, your comments on raw materials. So what is baked now into the guidance? And maybe you can split that up, what's the impact also then from the rising chip prices?

Then I want to follow up also on the question that was raised by Thomas on the late development. I mean we have seen in January that the Chinese OEMs, they increased their sales in Europe by something like 100%. So there seems to be a renewed push by Chinese OEMs into Europe. At the same time, I think Stellantis also said that they want to do more volume over value. So they also put the prices down. And at the same time, we see that [ Dutch ] share was very weak in January, which I think you say was due to logistical issues.

But my impression is that the overall competitive environment worsened again in January. So therefore, my question is, to what extent is already baked into your guidance? You talk about around 5.5% margin guidance for '26. Should we work now with a range of kind of 5.3% to 5.7%? And since the market got worse, we should rather go than for something like 5.3% for '26.

And the last one is a brief one on dividends. So you say dividends increase in absolute terms. My takeaway from that is, it's not that important what the earnings going to do. If it's now 5.3% or 5.7% margin, doesn't matter that much. It's more really that you want to increase the dividend step by step, and we do not have a kind of payout ratio that we need to keep in mind. Thank you.

Horst, thanks for the questions. So midterm is for the years to come. We're not talking about something for 2035, so it's shorter than that. But with the volatility of our industry, we want to give you the corridor that we're working in for the years to come.

In terms of the second question on raw materials, yes, we had a tailwind of raw materials in 2025. That would be the opposite and probably more like double the amount opposite. So we've got that on our radar and built into the guidance.

In terms of chips, I guess you're talking about memory. So we've been, like all sourcing topics, we're covering them -- covering this, and we have working groups making sure that we're fully on top of it. So we are seeing pressure across the sector in that area, but no disturbance at this point in time to call out.

In terms of the guidance range, so 5.5% -- circa 5.5%, mathematically, that's between 5.3% and 5.7%. I mean, we're announcing today the guidance for 2026, Horst. So I don't think I'd say I've got anything particular to say whether it's the lower or the upper end of that. It's circa 5.5%.

And the last point in terms of dividend stable, yes, so we had in the past talked about payout, and we want to move away from that sort of cyclicality and we want to be able to produce a steady and robust result. So the idea is to de-link the percentage payout for free cash flow. And so we are proposing a EUR 2.20 dividend and a policy which should progressively grow over time.

I think there was a third question in the middle of those five, which was on Chinese competition, Stellantis. Do you want to take?

No, I will not add much.

[indiscernible] January as well. Why that was so weak in January?

You should not pinpoint 1 month. I think we have to see the trend. And I repeat, last year, several competitors pushed a lot in terms of price. This is short term. This is short-term strategy. It is not our strategy. And despite this, we showed in 2025 that thanks to clear brand positioning, strong product lineup and value versus volume, we can do better.

So we will not be short term in 2026 and following years, and it is because of this that steadily we are growing our performance. And I remind you that residual value is key in the European market because we sell most of the car with financial and leasing products, for which the residual value is absolutely key.

So it's why our sustainable value versus volume policy for our brands, our focus on retail for our brands, those are the good solution to have a steady growth in Europe and this is what we will continue to do. We know what Chinese competition is and we are ready to fight and to grow in Europe.

But your impression is not that it got worse lately, right?

No, Horst, I think I made the comment to you guys asking the question in Jan. In Jan, we had some specifics, indeed, as you referred to, regarding logistics, notably for the Dacia brand, but this will be caught up during Feb and March. So this is something that is not depicting a trend or whatever. And as mentioned by Fabrice as well, the order trend is good in Jan. And the order book, as reinforced, it was at 1.7 months at the end of Jan. So again, on these, the perspectives that we have are good.

Thank you, Horst. We now give the floor to Philippe Houchois, he is on the phone.

Philippe, can you unmute your microphone, please?

I've got 2 questions, please. The first one is on the investment ratio, the 6.9% is very, very low. Want to keep it below 8%, average industry, probably 10%. I guess the market will have an issue with the sustainability of that investment ratio. And so it would be helpful if you could maybe comment on what kind of benchmarking you've made. I know you're breaking new ground working with the Chinese, on development, but also maybe to make that ratio look more sustainable, how much of that is the fact that you are probably more disintegrated vertically than most of your peers, having deconsolidated the horse. So in the context of that sub-8% investment ratio, how much do you think is an edge from your vertical disintegration? That's my first question.

And my second question, maybe for you, Francois, is more on the -- we hear noise about EU local content rules coming through, hopefully next week. What we heard is 70% ex battery seems to be like music to your ears, I think, in terms of what you were kind of looking at. And I'm just wondering if you can kind of tell us your latest thoughts on would that be kind of a positive for you? What's happening on the LCV CO2 rules to make them workable? And then any thoughts on what does the EU have in mind when they allow the price undertaking offers for the Chinese OEMs?

Regarding the first question, indeed, what we target is best performance for entry ticket and supplier entry ticket. We know how to do. This does not mean that we reduce the pace and the ambition in terms of new products, but also in terms of technology roadmap. And you will see during our Strategy Day, March 10, and our CTO will explain this in detail, that we set very detailed tech roadmap to catch up Chinese trend on all what is important in terms of future of automotive.

And it is true as well that -- and we will show this also March 10, that we will streamline our platform. We set in our engineering organization, a cross-car line organization, in order to streamline diversity and develop top-notch level of module and technology, very much standardized, and then the three brands can use it. So this is also a strong lever in order to be better than competitors. So yes, we aim to be better than competitors in terms of R&D CapEx ratio, but not reducing the pace of investment.

Regarding EU, I have been very talkative. It's true, last year, in order to raise the urgency to do some changes, I think EU and governments now understand the urgency, but so far, we have no concrete project. I nevertheless remain confident that we will get the necessary realism and flexibility as far as CAFE 2035, technology neutrality, and also tsunami of regulation are concerned.

Regarding Chinese competition, you know Renault opinion? We do not think that to close boundaries is good. It's not good for Europe, it's not good for China. What we recommend, and I will repeat this now, is to apply in Europe what China successfully applied 20 years ago. Means that Chinese OEM are welcome in Europe, but they should partner with us. They should produce, develop, use our suppliers, invest in Europe. And this is, we call it -- we can call it local content, but for me, this is the most important.

So now, I will wait for the decision. But what I can share with you is, again, as Renault today, we have the agility to move quicker than our competitor in order to adjust ourselves to what EU will decide sooner or later.

Thank you, Philippe. The next question will come from Michael Foundoukidis from ODDO BHF. Michael, the floor is yours.

3 questions on my side. First, on the order book, order was 1.5 at the end of last year. I think you said 1.7 at the end of January, so it's definitely improving a bit. There's probably some seasonality here as well, but what's your take on how it should develop throughout 2026? That's the first question.

Second question, a follow-up. Duncan, I think you said earlier that -- or maybe it was Francois, that LCV sales should improve in 2026, meaning should grow. Is that versus, I would say, H1, which was very tough last year or overall we should expect absolute LCV sales to increase in 2026 versus 2025?

And maybe third question and follow-up from others on shareholder returns and free cash flow. So you're guiding for free cash flow above EUR 1.5 billion per year. Dividend is, even if it increased, it's probably a payout, which is something like, EUR 1 billion max, I would say, so there are still some available free cash flow. And your financial situation has been highlighted as already significantly improved and is very strong. So could you help us navigate into that? Meaning that what should we expect as a target for net cash position and how should we see shareholder returns in the context of free cash flow? Is it possible that all free cash flow should be returned to shareholders at some point or there's other ideas in mind?

Thank you, Michael. Fabrice will start with the 2 first question and then Duncan.

Yes, Florent said that order book increased at the end of January by 0.2 months, which is reflecting what we said before. It means a good dynamic in terms of orders. We are monitoring that carefully, and frankly speaking, the trajectory until now is good. We don't see any reason why we shouldn't confirm that in the next months, due to the success of our 2-day lineup and the next launches, which will increase our market coverage.

We are entering once again in A segment, in C segment with Dacia. It means we should increase naturally our market coverage and our orders due to this news in terms of product. Of course, we're putting, as Francois said, value first. We want to increase on the right channels, at the right residual value at the right pace, and we will monitor that carefully.

Regarding LCV, the comeback is already demonstrated in the numbers you see since the beginning of the year. I think that if you check LCV sales in January, they are increasing. The level of orders is also increasing. It means, yes, we should have a global increase on LCV volumes this year in Europe.

Michael, on the capital allocation, so yes, free cash flow guidance is for over EUR 1.5 billion on average per year. Currently, we pay a little bit less than EUR 700 million when we look at a dividend per share of EUR 2.20. So in terms of capital allocation, I repeat again, what Francois said. So first priority is product and investments in the company. Yes, mathematically, if you take 1.5, minus the dividend, there's more left over. We will continue to strengthen the balance sheet, but we will also make investments in product and extended businesses.

So if we were to change the scope of Flexis, for example, that would be an impact on utilization of cash, because we believe in the product, and we have some excellent opportunities in those types of areas. So first of all, product, and then steady growth over time. We want to move away from the cyclicality. I'll manage to say the word of the sector, and prove to you that we have a robust financial outlook in this corridor of 5% to 7% group operating margin, and a very significant improvement compared to historical trends, both on margin and on cash.

Thank you, Michael. The next question will come from Pushkar Tendolkar. Pushkar, the floor is yours.

My first question is, again, I want to come back to the Dacia commercial performance in Europe. Second half of last year versus first half, it's still gone down in terms of absolute volumes, despite having the Bigster ramp up. Also within the last few months of the year, it was down month-over-month. So is there any specific reason for that? And just to give us more comfort from a '26 point of view, if you can break up the sort of the mid-single-digit into Renault, Dacia and LCVs in terms of the volume growth.

The second one on cost versus price mix enrichment. Historically, the objective has always been to make -- to keep this sort of neutral or positive. Unlikely that it happens for '26. If you can share what the negative magnitude could be, ballpark, but also, when could this bucket then again go back to neutral in terms of your medium-term planning?

Okay. So for the first question, regarding Dacia track record, I will ask Katrin to answer, please.

So we are very satisfied with '25. We had a solid increase and volume increase. We are a brand which is not chasing volume, but value, and we did that also last year. We had the entrance in the C segment, as Francois said, and it was very successful. We managed to be the #1 on the C segment SUV for retail customers in the second half.

We had record sales also when it comes to our electric car, the Spring. So we are very confident also to move into that or to continue that trajectory also in 2026. At the end of last year, we had a change of model years and also engines, so we might have a slight slowdown, which is more due to logistics and changes in production than we see it in orders. And we are very confident also that we started the year well off and that we will continue to do so.

Yes. Pushkar, on the cost, the mix price enrichment and cost, we had said in the past that those buckets should be able to compensate each other in previous periods as well due to you know, electronic component crisis and the ability for the industry to have more demand than supply was possible. That was a positive in the previous years.

Certainly, as we came through this year and we saw in the second half, and we'd called out, the sum of the 2 can no longer compensate at this point in time. We've not taken an assumption in '26 that they can compensate either. I'd like to remind you, as we are growing, obviously, Katrin just talked about the changeovers of engines at Dacia, so we have additional headwinds in those sectors. So Euro 6e-BIS is calling us to put additional equipment and cost into the car that, frankly, the customer is not willing to pay for. So this is a negative overall.

And in terms of growth, we had 10% growth internationally for the group in 2025. As you know, Pushkar, the margins outside Europe aren't necessarily the same as inside Europe, so that growth is slightly dilutive. We called out in the guidance that EV is shifting very positively for the group as well.

14% mix for the group in 2025, and obviously, that's going to continue to grow. And partner business, so even if I was to come back and link to one of the questions earlier from Philippe Houchois, we're seeing growth in revenues, where we have no fixed cost from these partners coming in. So that also impacts our ratio of CapEx to group revenues. But your question was, do we have an assumption in 2026 that the 2 are positive? No. I came, I think it was, I don't know if it was Horst or Jose earlier that asked about raw materials, but that's a headwind as well in 2026.

And the second part of your question was, at what point can it come back in time? Obviously, our international expansion, the idea is as we grow, that we also improve profitability. Pushkar, we'll be delighted to see you on March 10 to look at our Strategy Day and see what we have in terms of excellence, in terms of efficiency and performance across functions, the products that we're bringing out, the technology that we're bringing out, and how we plan to improve profitability internationally over time, improve EV over time as well. So I won't call out a specific year in which we would say that that would be fully balanced, but that's, I guess, the low point for us in 2026.

Just if I can ask one follow-up or a housekeeping rather question. In terms of 2026, are you looking at more provisions related to the LCV on the CO2 side?

On the LCV, the European CAFE for LCV, it was just over EUR 100 million provisioned in '25 in the other operating income and expenses line. All things being equal, at that same mix with no change in regulations further than today, that would be a further headwind in '26, yes.

Thank you, Pushkar. The next question will come from Renato Gargiulo. Renato, the floor is yours.

Thank you for taking my questions. Most of them have been already answered, but 2 quick ones. The first one, if you can give us an update on the synergies on powertrains with Horse. The second one, if you have any further comment on the recently announced partnership with Ford in European market, and if we can expect any potential expansion of the partnership, going forward.

Yes. Regarding the Horse Powertrain, I'm very, very confident with this project. In 2026, this will deliver more cost reductions than what was planned already, and much more to come. I start to see also a lot of synergies created inside the company, which will go on top of the cost reduction roadmap for the European cluster, let's say.

So yes, indeed, Horse Powertrain is strong lever to sustain our cost performance in the midterm. And on top of this, Horse Powertrain will be also contributor in terms of dividends in the next midterm. So indeed, a strong lever for our next years to come.

And regarding Ford, progressing very smoothly. I have nothing new to disclose today, but I can confirm that the first projects, namely, 2 Ford cars based on human technologies, production in France, are proceeding smoothly and operationally very smoothly between the 2 teams.

Thank you, Renato. The next question will come from Stephen Reitman.

I have 2 questions as well. First of all, could you talk about your BEV mix in vans in 2025? And what was it -- and what is the average you require over '25 to '27 in order to be compliant? And can you quantify the potential fine if your BEV share stayed at the 2025 level?

My second question is about international. Clearly, you already indicated that the growth you expect in international is dilutive to your margin, and that's obviously included in your guidance. To what extent is international required to reach European levels of profitability for you to be up -- to be at the up end of your guidance range over in the medium term? And maybe give some idea of what the lag is at the moment.

And also, can you comment on some of your BEVs, the Renault 5 volume potential in 2026, especially with the availability of LFP, in terms of what that you can do with positioning on price-wise on that vehicle?

Regarding the first question, if I understood well, it's a battery EV van situation. Unfortunately, the trend in Europe is much lower what EU expected. It is why we have the problem with CAFE. But I consider Renault Group is better than the average of the competitors, slightly better.

Regarding penalty...

The theoretical penalty if no mix was to change. So I mean, it's a very theoretical question. I mean, based on the mix we had in 2025, that the provision for the fine is EUR 105 million relating to our 2025 volumes. I mean, it was heavier in the first half and lower in the second half because our mix actually improved in the second half in terms of the CAFE, LCV.

So if all things being equal and we do the same volume over the three years, you can multiply that trend by 3. But obviously, we have a product portfolio plus Flexis, the full availability of Master, which you called out earlier in terms of EV as well. So once again, it depends. We have the product offer, it's how the demand follows.

Yes. Regarding the last question, you spoke about LFP and R5. I would like to highlight that as planned, we are capable to introduce, within less than 18 months, a second battery technology in our existing cars. LFP, including the cell to pack, no more modules. So this is I think the proof that Renault is capable to catch up the speed, the innovation of our Chinese OEM competitors.

The way we use this opportunity of double battery, I leave it to Fabrice.

I mean, we saw that regarding the -- because your question was also the volumes of R5 and the commercial results. Last year, we sold almost 90,000 R5 all over the world. We are not pushing the car. It means the car is very good on retail market. By the way, in the top 3 on BEV retail in Europe.

We expect this year another growth due to the potential of the car, our order bank, which is good, and also the increase of the EV mix market in Europe. t means no change until now for R5 and additional levers to grow in the coming months.

Stephen, just to give you some order of magnitude in terms of cost performance, we intend, as mentioned by both Duncan and Francois, to continue to reduce our variable costs, notably in 2026. Through the implementation of LFP and cell to pack on the existing cars, that enables to reduce the battery cost by about 20%. This is the type of improvement, technological improvement that will support the cost, hence the competitiveness of our vehicles on the market against European players, but also against Chinese competitors.

On international.

On the international I did confirm that it was dilutive, as we said, compared to the average profitability of the group. I won't go into calling out the percentage lag nor at what point it catches up to Europe. But certainly, you can assume that it contributes positively to moving us upward in the corridor from 5% to 7%. That's all I'll say.

Thank you, Stephen. We'll take the next question from Christian Frenes. Christian, the floor is yours. Please open your mic.

Most of my questions have been asked, but maybe 2 more from me. First of all, regarding your 2026 outlook, could you add some qualitative commentary regarding European pricing, what you're assuming within the 2026 outlook and also the contributions perhaps from Turkey and also from Brazil to that number?

And then my second question is just on free cash flow. It's going from EUR 1.5 billion to a guide of EUR 1 billion next year. Could you just give us the walk -- the bridge for that?

So thanks, Christian. We got those clear. So I'll maybe answer the second one first, on the free cash flow walk. So you have obviously, in terms of the cash flow generation, you'll be able to make your estimations from our mid-single growth, plus the operating margin guidance, but there's not a huge move there. CapEx and R&D, we will have a slight increase, but the main one I'd like to call out, is the working capital assumption. So it was EUR 190 million negative in 2025, coming off the EUR 844 million positive impact in 2024.

And so, we've built into our assumption for 2026 that we will further unwind, working capital. So you can consider that amount will be somewhere between the 2025 number and the total gap we had to catch up to 2024. So that was on the free cash flow. On the Turkey?

Yes. For Turkey, so you are lucky because I was with Fabrice in Turkey early this week, so I can give you up-to-date information. I'm very confident, very confident what I shared with the team in Turkey. I don't think we had such lineup for Turkey for a very, very long time. Clio 6, the new Clio, its start is super good, and we met with Fabrice dealer, salesman.

The Boreal, I tested the Boreal. It will be a great, great car for Turkey. And also for Dacia, the C segment car we launch in Europe and produce in Turkey will be a fantastic car for Dacia in Turkey. So I'm very confident about Turkey, not only, as you understood for 2026. Very, very confident. I think that what we put in 2026, in our midterm plan. This is really a baseline, and we decided with the team locally to set extra miles, extra targets. So I'm very confident.

And for Brazil, Fabrice, you were in Brazil a few days or weeks ago, so maybe you can share the situation and your views.

Now, Brazil is benefiting for the first effects of our joint venture with a common sharing of our industrial assets and our lineup now, which is on 2 legs with Renault on one end, Geely on the other end. What we can see is that the models which have been launched from both brands are doing their job. Kardian and Boreal for Brazil, for Renault and we expect to catch the growth of the market in an environment where the exchange rate remains until now at a good level for us.

That's very helpful. And on European pricing?

Okay. But European pricing, you saw the evolution in the last years. You see also the different announcements which are made by our competitors. I would say that, if you look at our pricing policy in the last years, frankly speaking, we've been always very stable. No erratic movements, but a consistency in our pricing strategy. Focused once again on a reduction of distribution cost, because this is very important for us. Narrowing tariff price with transaction price to give even more transparency, and for that, Dacia is a benchmark. It means for us, what we aim is a stability on that to avoid any erratic movements in terms of residual value, all stock and so on, and we are sticking to that. That's the priority.

And of course, our way to respond or to answer to the pressure of the context is the product once again. Don't forget that the products we are launching now, if I take the example of a Twingo, less than EUR 20,000, is at the same time value and a good answer to the need of affordability in the market. It means our answer is pricing stable. We stick to our strategy, we give transparency, we are not erratic, we preserve our residual value, but we cover even better the market with the complementarity of both brands and the entry on the A segment, which is coming very soon with the launch of Twingo and then the launch of the Dacia.

Okay. So just to reiterate and make sure I understood this correctly. Given your refreshed product range, your '26 assumptions assume a sort of stable environment regarding your pricing, given the value proposition your products have. And then, but they also -- the guide also assumes positive contributions from Turkey and Brazil. That's how I understood you.

Christian, so we gave positive dynamic in Turkey and Brazil. In terms of pricing, I mean, I think you, you asked specifically about the pricing environment in Europe, and Fabrice gave a comprehensive answer to the approach, the stability, the longer term view, the focus on value.

Just that, in your model, I know when you look at the price bucket, you look at the price mix and enrichment together. And so, don't forget that, we've factored in a negative factor for the total, because, once again, regulations mean that we have to put content in the vehicles that we can't necessarily price off.

Yes, that's clear.

Outside Europe, also, keep in mind that we will still have a strong negative Forex impact on international sales and revenue and this will not be entirely offset by price increases. So this is a key for you to put into your model.

The next question will come from Henning Cosman from Barclays. Henning, the floor is yours.

Francois, Duncan and team, perhaps I can, if you allow me, just ask a little bit higher level about your midterm guidance, right? At the floor, 5% obviously implying downside to your 5.5%, around 5.5% for 2026. So if we could just talk a little bit high level, if there's anything specific that you're expecting that would make things perhaps a bit worse before it gets better in terms of phasing? You're looking at a sort of a back-end loaded improvement or is it really that you're looking for progress in terms of profitability, but in the context of the volatile environment, you just have to give yourself that range of margin of safety? That's the first question. If you could just, talk us through your thinking there a little bit again.

Second question, to come back to Horse. Francois, I appreciate your very constructive wording around Horse. Can I just ask if that EUR 2 billion net saving figure over 5 years that your predecessors had shared previously, is that still a relevant number? And how does that reflect into the obviously now cost bucket rather than a specific Horse reporting line itself? And also on the dividend you're referencing from Horse, could you share an order of magnitude, and to what extent that is reflecting into the average of the EUR 1.5 billion midterm free cash flow guidance?

And then finally, third question on this defense project, the drone project from the French government. Is this more of a one-off in your mind, or is that something that you would allow the market to get a little bit excited about, that there's potential for you to expand into this area proactively, look for more projects in this defense direction? How do you want us to think about this?

Henning, thanks for the questions, and good we managed to get you in, especially to finish on some high-level questions. So yes, I think we should employ you. I think the way you worded the answer to the question on midterm guidance was perfect. I don't see anything that we're looking to say when we say circa 5.5 in 26% and the range 5% to 7%. It is that we're targeting to steadily grow up in that range. We're not looking at a hockey stick plan, but as you say, we just don't want to lock ourselves in for a couple of basis points difference. So just wanted to be nice and prudent in that corridor.

On Horse, I know you and I have just talked about this in the past in terms of the dynamic is the same, as called out in the initial plan, so very strong. You need to look at Horse, both sides of the business as well, both in terms of European and on the Chinese side, which gives us the internal benchmark to challenge on that.

We've got back to the point where we're now costs Renault Group less than it to buy engines and powertrain units from Horse than it was in the past. And so we're seeing that dynamic, and that's part of the EUR 400 per unit variable cost reduction coming through. We've already seen some of that and that's key for us going forward. Remind you of the EUR 245 million positive impact on equity associated earnings for our 45% holding at Horse.

From that, I'll let you estimate your dividend assumptions, but we're not talking EUR 10 million a year, so it's obviously a good upside for us, but not as of '26. That could start from 2027 onwards.

Maybe, Francois, I think the defense...

Regarding defense, no change. We do not intend to become a major player or part of the defense industry in Europe. At the same time, we accepted the request of French Minister of Defense to help to cope with all the disruptions they are facing. We will do this with defense industry players in partnership, and we bring our specific value in terms of technologies, adaptability, both product, process development, and of course, scale. We got a big first contract together with [indiscernible] and the project is ongoing. There is several other opportunities. But for me, it's an opportunity and not core for our next midterm plan. And of course, just for the sake of clarity, we do not reduce the necessary allocation of capital to our core business due to defenses. So this is opportunity.

Thank you, Henning. And the last questions will come from Stuart Pearson from Oxcap Analytics. Stuart, the floor is yours.

Just feel free to finish quickly. On the midterm guidance of 5% to 7%, obviously, that's group. Normally, that would mean a 3% to 5% auto margin. Is that still the right equation going forward? I just wonder, given the finance company seems to have particularly strong momentum. And given the work you've done on residual values over the last few years, what kind of expectations do you have for that finance business and the mix of that profit, I guess, between auto and I think going forward?

And then on that 5% to 7% guide, I guess that's a standalone, almost organic business plan that you have today. Presumably, the Ford BEV agreement is in there, but just to confirm, nothing on the OCV side yet, as that's not set in stone just yet. And I also think another part of the IA we're expecting next week is possibly a requirement for foreign players of certain countries to invest via JVs in Europe. Is that -- obviously, you do that with Horse on the engine side, would you consider an assembly JV with a Chinese partner just on that?

And then finally, Duncan, on the working capital, thanks for the clarity on '26. Very clear on that. But you seem to be suggesting you want it to kind of neutralize the volatility in the free cash flow. That's something that Stellantis has been trying to do over the past by bringing that working capital position down. You've still got a few billion negative working capital overall, though. So over the next five years, is that going to be a constant drain on the cash flow? Obviously, you're putting that into your EUR 1.5 billion guide, but is that after a constant drain of working capital as you try and reduce that volatility?

Yes, midterm guidance, 5% to 7% corridor would, I agree with you in terms of the estimation of the auto alone, that's 3% to 5%, because of the MFS profitability. We do see growth. I mean, you're seeing a stellar performance of MFS today, and we will look to expand the coverage of the different types of offers internally in-house through organic growth with MFS as well. So that's also you can underline -- you can read the underlying performance as well as we're saying EUR 350 million of dividends in 2026, expected rising to the normalized EUR 500 million going forward. So good news on that.

Yes, the plan is an organic plan and includes the Ford 2 vehicle opportunity that Francois discussed earlier, but nothing else on top of that. So it's an organic plan, and anything -- I think the comment you said, Francois, was it boosts, other opportunities may boost that going forward.

I'll maybe finish on the working capital to let you comment on Europe, assembly, JV, Chinese. Just on the working capital, yes, we will unwind in 2026. And we have assumed a slight negative in the years going forward as well, even if naturally, in the auto sector with the structure of our working capital growth would actually generate cash from working capital. But it's not something that we want to focus on, and we want to have a more robust profile and avoid the volatility. So we've built in a negative each year going forward within the over EUR 1.5 billion free cash flow generation per year.

Regarding the last question, if I understood well, your question was Horse Powertrain doing some JVs locally with Chinese OEM in Europe or some third-party sales. Is it correct or...

Not quite. It's kind of the -- Geely doesn't have any -- If I'm getting to the point, doesn't have any local assembly capacity of its own in Europe. But obviously, the IA might make that, increase its motivation to have that, and obviously, you're one of their key partners. Obviously, you have an engine joint venture, but if they wanted to do something in assembly or any Chinese partner, it...

Yes. Okay, sorry, I did not catch your question. We have no such project for time being. In Europe, we have -- we develop and we'll continue to develop our own technologies in order to prove that in Europe, European OEM is capable to develop, to produce, at the same performance as the best Chinese OEMs in terms of cost, innovation, speed. This is the ambition for the next midterm plan. So our ecosystem is open to partners. We receive a lot of requests, and we cannot say yes to all requests. But for time being, we have no such project with Chinese OEM.

Good. Thank you, Stuart. Thank you all for your attendance to this call. So we remind you to get to the team to register for March 10 Strategy Day, which is fast approaching. Have a good day and speak soon. Thank you.

Thank you. Bye-bye.

Ladies and gentlemen, good morning and good afternoon. Welcome to Renault Group's Q3 2025 revenue presentation. This conference call is broadcast live and recorded. It will be made available in replay on our website. I will now hand over to Duncan Minto, Renault Group's CFO, to begin the presentation, which will be followed by a Q&A session. Duncan, the floor is yours.

Thanks, Ron. Good morning, good afternoon, everyone, and thanks for joining us today. I'm pleased to be with you here to present our Q3 revenue and the sales performance. So in Q3 2025, Renault Group revenue amounted to EUR 11.4 billion, up 6.8%. At constant exchange rates, it was up at 8.5%. Automotive revenue stood at EUR 9.8 billion, up 5% or 6.8% at constant exchange rates. Mobility Services amounted to EUR 23 million, up EUR 9 million compared to the same period last year. Mobilize Financial Services continued strong growth with revenue up 18.4% to EUR 1.6 billion.

So as usual, let's drill down into the automotive revenue evolution. Automotive revenue stood at EUR 9.8 billion in Q3. That was up 6.8%, as I said, at constant exchange rates with a negative ForEx impact of 1.8 points. This impact was driven mainly by the devaluation of the Argentinian peso, the Turkish lira, the Brazilian real and the Korean won.

The second part, the volume effect was a strong positive by 3.2 points in the quarter as the 9.8% growth in group registrations was partly offset by a higher destocking of the independent dealer network over the quarter in Q3 2025 against Q3 2024, but we'll come back to this in a second.

Looking first at the registrations, the 9.8% growth worldwide in Q3 translated to more than 529,000 registrations. I think the point to note is international sales were up 14.9% and European sales up 7.5%. In Europe, passenger car sales grew by 10.9%, outperforming a market up 7.5%. LCV sales have shown a meaningful improvement sequentially for us, but yet remains 7.1% below the Q3 2024. Overall, all brands were up, which is quite remarkable, Renault, Dacia and Alpine, certainly a highlight in the current auto industry context.

Renault Group continued its acceleration on electrification. Renault Group's electrified vehicle mix in Q3 grew by 10.8 points to reach 44% of its sales. The Renault Group EV sales more than doubled, reaching 13.5% of sales and HEV sales grew by a strong 25%.

Looking at the Renault brand, electrified vehicles accounted for 60% of the brand sales, up nearly 10 points compared to last year. Renault's EV sales surged by 85%, thanks to Renault 5, the B segment EV leader in Europe, and Scenic the C segment EV leader in France. The EV mix reached more than 20% of Q3 sales, up 8.7 points. Hybrid sales rose off a strong base by 4.4%, thanks to Symbioz, the best-selling Renault hybrid to reach 37.9% of brand sales in total. Renault was the second brand for hybrid sales in Europe.

Dacia's hybrid sales more than doubled, now accounting for nearly 21% of its Q3 sales, up 9.1 points compared to Q3 2024, thanks to Duster and Bigster.

As regards to our commercial policy, we kept our focus on value over volume. In Q3, retail sales accounted for 63.8% of group sales in the 5 main European countries. This is 20 points above the market average. Sandero, Duster and Clio in the top 10 retail sales in Europe and residual values remain globally stable for both Renault and Dacia brands at the end of September 25 compared to last year. I'll remind you, there's a 5 to 11-point positive gap above our main competitors in the 5 main European markets for passenger cars.

Quick zoom on the Renault brand. Continued progression in Q3 '25. Global sales were up 6.6% at just over 361,000 units. In Europe, the brand grew by 1.8%, thanks to a 5.5% PC growth and an LCV performance, as I said, showing signs of recovery, but still down. Growth was especially high in Germany and in Spain. And Clio is the second best-selling car across all channels in Europe.

In international markets, Renault grew in its strategic regions, posting a 14.2% increase overall. In Latin America, the brand rose by 6.8%, thanks to Kardian, and further momentum is expected from the upcoming launch of Boreal in Brazil in November. In South Korea, Grand Clio supported the brand's growth by 54.7% year-on-year. And in Morocco, Renault achieved 42.6% growth with 9,258 vehicles sold, again, supported by Kardian's success.

Turning to Dacia. Worldwide, sales were up 16.2% with 165,000 vehicles sold. The brand posted solid growth in most European markets with outstanding performance in Germany, Spain, Belgium, Luxembourg. Bigster is the second best-selling C-SUV in Europe on the retail market with 22,353 units sold during Q3, and more than 55,000 orders taken since launch. Sandero remains the best-selling vehicle in Europe. All distribution channels combined with 66,233 units sold in Q3 and over 218,000 sold since January. Year-to-date, in terms of standing in the European market, Dacia gained 1 place and ranked second on the European podium for retail sales.

Turning to Alpine. We recorded more than 2,300 registrations in Q3 with now both A290 and the A110. A290 is now available in most of the brands countries with 1,845,000 registrations over the period. Since its launch in the U.K. this summer, the U.K. registered a strong start of sales for A290. A110 maintained a solid momentum with 500 registrations. The orders of the current generation of A110 will close in the coming months before of the next generation, which will be 100% electric.

And lastly, Alpine will soon open orders for the A390 its new electric sports fastback, which will be out at the end of the year. So that's the zoom on the brands.

I'd like to move to the inventories on the next slide. Total inventories, this is the sum of group and independent dealers. At the end of September, stood at 538,000 units, up just 8,000 units versus June. The inventory increase at group level is partly offset by a destocking of independent dealers in line with the regular seasonal patterns. Looking at the impact on our volume bucket and the revenue, this quarter, destocking at independent dealers was minus 98,000 units, you can see on the slide, stronger than the destocking effect experienced in the same quarter last year, which was only 72,000 units. And therefore, this impacted negatively a volume effect in the walk down of revenue.

We continue to implement a strict discipline in the management of our total inventories. We did slightly adjust our production output in Q3, as we do traditionally, and we'll continue to do so in Q4, if needed. This will be done while maintaining a high utilization rate of our industrial facilities.

Looking forward to Q4, the group expects a restocking independent dealers but one well below that registered in Q4 2024.

Let's move on to our sales to partners. This is the next part of the walk down. This has a positive effect of 1.6 points on revenue in Q3 2025, driven by programs with our partners and the impact of the integration of RNAIPL in the consolidation parameter. This was the facility we bought in India. As a remainder -- as a reminder, sorry, on August, we completed the acquisition of this facility. We now have 100% of the Chennai plant previously held at 51% by Nissan.

Now let's have a look at the next box, which is price, product mix and geo mix effects. As expected, the price effect was slightly negative in Q3. This is mainly due to a highly challenging environment with continuing and strong commercial pressure, especially noted in Europe. On international sales, the negative currency impacts were partly offset by price increases. But as part of our value over volume policy, we maintain in our pricing approach, a strong focus on residual values which is a key competitive factor for the group's longer-term performance. The product mix effect was positive at plus 0.9%, driven by the performance of both Renault and Dacia models, mostly Bigster and Renault 5, I'd like to note, they delivered on our expectations in terms of mix impact.

The lower product mix effect compared to the previous quarters is mostly explained by the annualization impact of the phasing of product launches. When we look back after 1 year, we have Symbioz, Scenic and Duster, which entered in the comparison base this time last year, which naturally reduces the year-on-year impact. Product mix in Q4 should be higher, benefiting from a stronger contribution of Bigster and Renault 5 and the ramp-up of Renault 4.

Geographical mix stood at plus 1 point, notably explained by lower sales in Brazil in Q3 2025. This was due to a focus on the most profitable channels, combined with a high comparison base in the previous quarter or the quarter of the previous year.

Now let's turn quickly to Mobilize Financial Services. I mentioned the strong growth. The contracts production slightly increased on Q3 2024. But it's the average performing assets that improved by 5.3% at EUR 59.5 billion, mostly thanks to the increase in average selling prices over the last years. All in all, Mobilized Financial Services revenue were up 18.4% to EUR 1.6 billion, mainly driven by both interest rates and the average ticket price I just described.

So a review of the revenue done. Let's turn to the outlook for the full year. In 2025, the auto industry as a whole is challenging, but we have built strong fundamentals on which we can leverage. We have a very disciplined inventory management, allowing flexibility in our production base while maintaining the high utilization rates of our plants. Our order intake was a high single-digit growth in Q3, that's year-on-year, with a positive momentum both on passenger cars and on light commercial vehicles. We continue to focus on value over volume. It's a core fundamental embodied by our exposure to the retail channel mix. And I'd say, once again, we are 20 points above the market average. This is an advantage, obviously, as regards the group's margin profile.

Finally, in terms of residual value, the strong competitive edge remains. We stand 5 to 11 points above our main competitors in the European markets.

Can't forget product. This year was intense in terms of launches and facelifts, and we've already seen the first benefits of Bigster available in both ICE and hybrid. The vehicle was launched in Q2 and is demonstrating day-after-day commercial success. Renault 4 arrived at the end of Q2 with a real launch happening in September, and we've also launched the facelifts of both Espace and Austral. This will not stop here, and we continue in Q4. We have 3 new vehicles for Renault, Renault Kwid E-Tech, Renault Boreal for International. And the new Renault Clio 6 for European markets, which we will see the first deliveries in Q1 2026. And last but not least, the Alpine A390, which will arrive right at the end of the year. These launches will further support the commercial dynamic of the group, which is very positive, as you saw in the Q3 registrations.

So looking at the outlook, we confirm our guidance today for 2025 with a group operating margin at around 6.5% and a free cash flow between EUR 1 billion and EUR 1.5 billion. We remain very focused on reducing our costs and continue to work on what we can control. Our top priority is to deliver on our updated full year guidance. And in parallel, as you know, we are working on the next strategic plan, which will be announced in Q1 2026.

So this concludes my presentation. Thanks, everyone, to your attention, first of all. And then with Laurent and the team, we are ready to take your questions.

Thank you, Duncan. And so the first question will come from Jose Asumendi from JPMorgan. Jose. Can you please open your mic.

Thank you, Duncan, very clear. Just 3 quick questions, please. When you look at the free cash flow guidance and your confidence to achieve the free cash flow, I would like to understand what drives the -- a little bit at the lower end and the upper end of that free cash flow guidance. And are there any factors that you're thinking could drive that swing is basically lower end and upper end?

Second question, can you give us please an update on where we stand on selling the stake in Nissan and monetizing that asset?

And then 3, I believe there's a strong opportunity to have strong product mix positive into 2026. Can you address which vehicles could drive this momentum in '26?

Jose, thank you for those. So yes, the free cash flow guidance has a lower and an upper end. Obviously, we have a stronger EBIT in H2 than we did in H1. But I guess the -- more of the volatility within the range, as you can imagine, is working capital. So we had a EUR 900 million negative impact in H1, and we expect a good part of that to unwind and not all of it as we don't want to push the working capital, I think it will unwind a bit this year. We'll also continue to unwind a little bit the working capital in 2026 as well.

And as you know, it's very much driven by the steady invoicing process that we need to have throughout the month of December, and also the production levels and the impact of the payables we have on that. So what we've strived to do is adjust production early when needed and not build up stock. So we did that in Q3. And if need to, we'll adjust again in Q4, but it's more the working capital that explains the lower and upper end of our expectations on working capital.

The selling stake in Nissan, as you know, there's nothing new here. So still continue on the same strategy we had before in terms of the structure of our shareholding and those held ready for sale. But as you can imagine, the concentration short-term has been left on Nissan to do and execute the turnaround plan, which has started well. And so we will follow up with that as time goes on.

In terms of product mix in 2026, does anyone want to comment. I mean, we obviously got a strong Q4 coming, but...

No. I think in product mix, we will have a full year for Bigster. We'll have also at the end of the phase-in, phase-out from master with a full lineup, which will help us also. We'll have full year for Symbioz. And I would say more generally, we are -- as you noticed in the presentation of Duncan, we are growing up on this full hybrid lineup, which is quite good in terms of product mix on each segment and for each car.

And the next question will come from Michael Foundoukidis from ODDO BHF.

Yes. Two questions on my side. First, maybe as a follow-up to Jose's question on product mix. Could you tell us about the potential impacts of this, let's say, lower product mix on profitability for H2 if it has one, significant? And maybe a bit of magnitude on the improvement that you expect in Q4. Is it fair to assume, let's say, something between Q3 and Q2 levels?

Second question on order intake. You said it's down to 1.6 months, but it's due to higher expected forward sales in Q4. So could you give us some color on absolute figures? Is it flat, lower or maybe higher versus end of June.

Okay. So lower Q3, lower impact of model mix in Q3 to like 0.9 points where we're in mid 3.5%, 3.7% in Q1, Q2. There is a strong comparison base in the past, as I said, with the launches that we had last year. What I would like to tell you is that the mix we're expecting coming from, I guess, one of the most key products such as Bigster was spot on where we expected. And I can see those orders in the portfolio, so that will also drive a growth in Q4. I think you're right to say Q4 should be somewhere between what we saw in Q2 and Q3. So I don't have any particular problems with your expectations in that front.

In terms of order bank, so we have 1.6 months of sales in bank. As you correctly state, yes, that figure is obviously forward-looking orders we have today divided by forward-looking sales, and it's the forward-looking sales part that's growing. I think we need to remind you that in Q3, our order take was actually up on last year. So that's building. Obviously, we're not -- not all those orders are going straight into the portfolio because we're also delivering. So as you saw, registrations were up 9.8%. The commercial dynamic is strong. So yes, I think you're quite right. We have a forward-looking sales expectation, which is strong of the proven track record we did in Q3, and order take was up over last year, both in passenger cars and in light commercial vehicles, to be honest. So it's high single-digit growth.

And the next question will come from Thomas Besson from Kepler Cheuvreux.

A few questions as well, please. Duncan, can you remind us your target for inventories at year-end? I think you said that would be less restocking than last year, but is there a range target for inventories towards the end, please?

Yes. Do you want to question my question, 525 to 550.

Yes, if it's okay. Sorry.

525 to 550.

525 to 550. Second question, your BEV share has increased a bit less than I think I was thinking. But at the opposite, I think your hybrid and HEV shares are doing very well. Do you still need to be somewhere between 19% and 20% for BEVs over '25, '26, '27 to comply? Or is the increase of your hybrid and HEV share allowing you to be below that just to get an idea of what you need to achieve in '26, '27 on that front.

I think I'd say I'm comfortable on passenger car CAFE compliance over the periods that you're talking about. So the dynamic of sales on EV for us is strong. The hybrids, even Dacia side is doubling. So it's the passenger car side of things, I'm not concerned about in terms of hitting the mix that were required, no major SKU needed. Once again, remind you that LCV is not the case. We provisioned CAFE in H1 to the tune of EUR 98 million. So unless things change in the rules, I don't foresee -- I don't foresee pretty much any of the LCV manufacturers hitting a CAFE compliant over the period. So let's stay positive on the fact that people might react to this, and we may have some positive news on changes to regulations, but we will not count on that. And so we'll plan for the worst.

Understood. On the bank, which continues to grow strongly, can you say a few words about 2 things, capital needs eventually and dividend potential for that. And I mean, the French press has reported some management changes there. Could you confirm and indicate whether as a CFO you may become the new boss of that business or whether we should expect a new announcement on that front?

In terms of management changes or comments in the press, I won't comment on any individual situations. Let's just say that operations are under control and everything is maintained as normal.

In terms of capital needs for the bank, we guided that -- as you're well aware, the dividend from MFS was down this year due to the strong growth in the balance sheet and the requirement to have the capital reserves, both for rating agencies and the ECB, and that should start to rise again to above the average EUR 500 million, EUR 600 million per year, be it probably next year or the year after. So I don't have any particular concerns. Obviously, we've got to clarify the FCA situation and provision in the U.K., we'd provision EUR 90 million for that. So that's the only one thing that we've yet to have clarity on.

Okay. Last one on others. Can you just say a few words about what was there this time around, please?

Others, we have rebound in Renault Retail Group activity, so the activity of a wholly owned dealer network is the main part of it. We have a little bit of aftersales, but...

And the next question will come from Henning Cosman from Barclays.

Duncan, I was just wondering if you could comment a little bit on how business has been going incrementally since H1. It seems to be getting a little bit tougher in Europe. You had called out that commercial pressure, of course, already at the H1 stage. And now we're seeing some more plant stoppages from some of your competitors, some seem to be attributable to higher inventory of chip shortage. You just mentioned the U.K. redress scheme of course. Perhaps you could comment on light commercial vehicle momentum specifically there if you expect to be on prior year level in Q4. But just overall, maybe how incrementally tougher Europe environment has perhaps affected your confidence level for the full year guidance. Is it the same? Are you almost more confident because you're now closer to the end of the year and have better visibility. If you could just put a little bit context around the incremental trading environment. That's the first question.

And second question was just on the dividend. If you could kindly confirm again that you're still planning to increase the absolute euro dividend relative to the EUR 2.20 of last year?

And I had the third question on the U.K. redress scheme. I believe you just said you provisioned EUR 70 million for that. If you could just confirm that number. I don't know if I heard that correctly.

Okay, Henning. No, I said EUR 90 million maybe so maybe I wasn't clear. EUR 90 million is what we provision for that. And so we will be reviewing that as the details come out in the coming months.

Your first question bundled a lot of things together. You talked about commercial pressure in Europe, which is yes, clearly tougher than we thought we had -- we didn't plan that things would get better, but there's certainly more pressure out there.

You talked about inventories, but I think maybe you were referring to some of our competitors. So to avoid any entry -- inventory buildup, we did actually trim some of the production schedules during Q3. We like to be reactive on that front. And because of the factory is really turning at a high capacity. It's not so much of an issue for us.

You also put in their chip shortage. So I know we've had news from several fronts in the past few days on that, but nothing that's impacting our production schedules as I can see today. I mean we learned a lot during the electronic component shortage in previous years. And in terms of tracking what's going on at first level of suppliers, suppliers supplying suppliers, working on optimizing the stock available within the system or even resourcing, which can take a couple of months. But we're able to manage with the current visibility we have today on that.

LCV momentum, so we stayed down previous year. And as I think we discussed together, it was the propulsion, the rear-wheel drive part of the LCV mix on Master, which is coming on now. The order takes up. So when I said high single digits for our order take in Q3, LCV was actually higher than passenger cars. So I think we're building the orders on that. We might actually see all of those deliveries this year, they might come into next year as well and also on the partner business.

But -- so while I want to answer your question saying, yes, things are tougher in Europe. Yes, we've seen lots of things from our suppliers. Yes, supply chain is disrupted, not seeing the impact on our production outlook. And once again, our registrations were up 9.8% in the quarter. And we saw strong order intake, high single digit with LCV higher than that. So the confidence is, obviously, as we get closer to the end of the year, and that order book is in hand.

Bigster, I know you and I talked about being one of the bigger drivers on H2 profitability versus H1. That was as expected in Q3, and we have the order book in hand to be able to deliver in Q4.

Dividend guidance in the past has been about payout ratio. So dividend was -- will be a topic which we will discuss with the Board of Directors, and we will announce in February next year. So no change in dividend policy to date.

Did I say EUR 90 million -- sorry, the FCA, I think was the last part of your question, EUR 90 million, not EUR 70 million, sorry.

And we'll take the next question from Stuart Pearson from Analytics.

So a few just to follow up with Duncan. I mean firstly, just on that competitive situation in Europe on pricing. Just looking at it, is it fair to say that pricing in Western Europe is running something like negative 2% to 3%? And if so, you're aware of the most tense areas of competition.

And secondly, just coming back to the emission side, you noticed this week, the Nissan is now pooling with BYD. And just very quickly, does that affect your outlook into '26 at all? Were they ever paying you any kind of polling agreement or any plans to before? Can you perhaps go a little bit more slowly on EV than you otherwise would have done now that you don't have to carry Nissan, who's the furthest away from their targets. So I don't know if that affects you at all.

I'm kind of linked to that, plug-in hybrids, I mean, it's not really been a segment that's been particularly important in the European mass market. But obviously, the Chinese not facing tariffs there. In the last few months, they've really pushed right, Cherry, you might have noticed almost 20% of the U.K. plug-in hybrid market in September. So I wonder if you think that could become a more significant segment. If I'm not incorrect. I don't think you have any product offer in that powertrain now. So I wonder how agile you could be to actually bringing those to market if actually that does take off?

And then just a final one, if I can. Just as you look ahead to the strategic plan next year. And I guess, Renaulution to overly simplify it, a lot of it was about the product side, there was cost stuff going on as well. But I wonder, looking at Volvo this morning as well, where costs played a significant role in what they delivered. Is it fair to say the next strategic plan can have a much greater focus on cost efficiency than Renaulution. And now you've had your feet under the table for a little while. Do you see significant potential still there at Renault, given that we had a lot done on the cost side in that organization over the last 10, 15 years?

Okay. Thanks, Stuart. Pricing, I think if you said Western European markets were down 2% to 3%, I think that's a bit strong, probably less than 2% in terms of negative price impact, I would say. And maybe I'll answer your other questions and then let maybe Fabrice or Katrin comment if they want any further on that.

Regarding plug-in hybrid.

No, no, on pricing.

In terms of pricing, I would say that in terms of pricing, what we see now in Europe is quite stabilization and we are controlling our variable marketing expenses at the same level of what we did in Q3. And this is how we will manage the level of pressure until the end of the year, perhaps we'll find some opportunities even though to increase some prices on some very targeted segments of our countries. It means we are 0 up in terms of pricing strategy.

Regarding plug-in hybrid, perhaps I think if you take the plug-in hybrid segment share in Europe at CAA, until the end of August, they are around 8%, 9%. It means it's still a small segment. We have one offer with Rafael, which is a very interesting product because it's a car which is at the same time, a plug-in hybrid and hybrid when the battery is empty, which is -- which means a very low level of consumption. What we see on the small segment is that the customers are more oriented on either full hybrid solution. It means nonpluggable or on EV. And we want to manage our diversity. That's why even though we have the technology, we prefer to focus on one hand, full hybrid. That's what we do commonly between Renault and Dacia and on EV with the launch of the new cars like our R5 and R4. And this allow us to be at a level of share, which is manageable, I would say, versus the future target.

So we do have the technology, horse has it. So...

If we need, we can decide to push the button. But I would say that at this level, let's focus on our hybrid technology, which is growing a lot and which is a good lever in terms of volumes and profitability. With a good residual value on those cars which is not for sure the case for most of the plug-in hybrid you see in the market.

You had a question on CAFE. I don't think we've had any impact of Nissan signing with the BYD in terms of pooling. It wasn't in our plan. So in terms of CAFE compliance, once again, who did -- I think it was to Thomas' question on the passenger car side of things, I'm quite comfortable on the outlook of light commercial vehicles, obviously, a bit of a lost cause of anyone being compliant, I think at this stage in time.

Strategic plan. So product was the center of Renaulution and also the positioning of the brands. I think the brands have really grown and have their own unique positioning now. At this point in time, which is another way of looking at it in terms of residual values. Before saying yes, cost will be a part of the next plan. Product will also remain at the center of the next plan. We're very much focused on core business. But I do think we will have work to do on cost as well and efficiency. As time is getting tough, we need to be able to ensure that we control our fixed costs that we maintain that solid breakeven point to ensure that if there are any disruptions in the market that we don't have to take an axe to our product lineup or suddenly change the plans going forward.

So we will continue to focus on breakeven point cost reduction and that's what, I guess, leads to the strong return on capital employed that we've had. And variable cost is also stepping up as you've seen this year, we -- I think we said we were just under EUR 400 per unit in H1, and we're seeing a stronger dynamic in H2. And that's something I can confirm today that that's well on track.

And the next question will come from Stephen Reitman from Bernstein SG.

Yes. I have 2 questions, please. First of all, could you bring us up to speed on the transition to LFP that you're doing on your BEVs? I understand you've already -- have you already launched on them again? And when will you be able to offer LFP offerings on the Renault 5 and Renault 4? And what impact would that you think it would have on pricing, your ability to price those vehicles?

And secondly, could you comment on the competitiveness of your Turkey plant, particularly in the light of the further devaluation of lira, particularly regarding exports to Western Europe.

Yes. So maybe on -- obviously, the Turkish plant is one of our most efficient plants and devaluation is a short-term gain for exports. Obviously, we do have to pass on some cost increases afterwards for all of the non-Turkish lira sourcing that suppliers have in that. So there's a little bit of a delay on those. On LFP, we have the transition next year. to 2026. So it's pretty much across the whole of the BEV lineup. Fabrice, do you want to say anything about that?

We already begun now with the new spring which is giving more competitiveness and more autonomy also for our customers. And we will go on next year with our BEV segment. and Megan also. Duncan, I think this is very interesting because that's a solution which will enable us to gain more cost, better cost, more competitiveness and at the same time, more autonomy for our customers.

And just if I may add on the Turkish lira just for the reminder of everyone. So we had a negative impact on the revenue, and it was a positive impact on the margin so far. Moving forward, we do expect the impact of the -- on the margin to be less of a positive because we have increased our sales in Turkey, and this was one of the main drivers in terms of performance on international sales in Q3. So this is something to keep in mind.

And so the next question will come from Pushkar Tendolkar from HSBC.

So just, Duncan, a couple of questions on -- maybe related to the guidance, but some of the indications that you had provided on the first half call, which probably then feed into your full year guidance as well. One was about the second half volumes being better than the first half. Now that you have -- we have got at least 3 to 4 months forward. How is that looking in terms of progression?

The other was about cost savings. The indication was that price mix enrichments versus cost savings would be a net positive for the full year and also for the second half of the year. If you can provide any color on the development on that front. And the third 1 is just a clarification. The EUR 90 million that you mentioned in terms of -- in terms of provisions that will be booked in the second half or that has already been provisioned for in the first half.

So FCA has already provisioned in the first half. The second half volumes better than the first half. So I think you've seen the 9.8% registration growth in Q3. So as you say, Q3 is behind us, Q4 ahead and so confirm that will still be the case for the full year. We did trim a little bit of production in Q3, but as we do constantly over time.

Cost savings. So I talked about the cost savings, just a couple of seconds ago. In terms of the variable cost, we -- excluding any external factors, which are actually also positive on cost at the moment as maybe come back to the Turkish lira deflation, and also raw materials is a bit of a headwind -- sorry, tailwind as well. But if we exclude any of those, we were trying to go for EUR 400 per unit cost reduction on the variable side, full year. We did slightly less than that in H1. And my expectation was to do more in H2. I confirm that, that's still on track. So we have good visibility, good traction on that front. And then you wrap that into saying price mix enrichment and cost. On H2, we said it would be positive and maybe positive on the full year.

As you've seen and as we've discussed, the pricing environment is a little bit worse than we expected. So that's putting pressure on that one, but we're upping cost reduction actions in other areas across fixed costs. The only one thing we had a warranty recall which puts a bit of pressure on that bucket as well. But -- we've upped fixed cost reductions in other areas and the strong dynamic on variable cost is definitely there. So all in all, I think we'll probably be flat positive -- well, flat in H2 and slightly negative for full year. So that's one of the factors that got worse, while our management of the things we can control in terms of costs stepped up.

And then volumes, cost savings, EUR 90 million was booked, yes.

And so the next question will come from Harald Hendrikse from Citi.

Just 2 slightly longer-term questions. One, you've mentioned a couple of times the negotiations now with the European Commission. Can you just talk a little bit about what you are hoping for or expecting from those talks? Any sort of specific demands or anything that you can give us regarding those negotiations?

And then secondly, both with the changes in the CEO, the new CEO changed quite a lot of the headline management in the group. The strategic direction seems to be very much business as usual. What other changes do you think you can identify for us what has changed with the 2 of you at the top of Renault changing this year that you want to identify for us that will help Renault going forward?

Okay. Thanks, Harald. On the European Commission, so I think as you would understand in some of my comments, the -- we have a hope short-term that the rules will change on light commercial vehicles because it's a segment which has been a strong profitability base for European manufacturers, and it's really a European business. So while fleets that wanted to go electric and could go electric are already there, and we've got our offer, which is competitive on Kangoo traffic, and we've recently launched on Master. Obviously, we do have, and we've taken a big investment to do a full EV offer with FlexEVan, which we expect will be out towards the latter half of next year. So in terms of putting the product on the market and making the offer available to customers, we're doing it. The demand is not responding in the same way. So I think we need to collectively relook at that. But once again, while I remain positive on the fact that, that will change, we're not counting on it. And so we had to provision in H1 and we will do until the rules change.

I won't necessarily comment further on more longer-term. But on the passenger car, I think the sort of wall of 2030 in terms of hitting the CO2 targets. If we have to do it just in 1 year alone will be a challenge for many manufacturers. We were positive -- we positively accepted the sort of bank and borrow scheme over 3 years, which came out for '25, '26, '27. So let's see what happens for the future on those.

In terms of CEO, so he obviously came on end of July. He's not someone who's new to the company. He's been here for several years. He built the Renaulution plan with Luca and the team. So we had some new management announcements, which I think are coherent with what we need to do going forward. February is here, obviously, Katrin in terms of CEOs of Renault and Dacia, respectively, but working closer together in terms of coordinating the offer and the lineup and how those 2 brands remain in their strong positioning. That's something, I think, has been a benefit, and we're seeing that in the construction of the midterm plan we're doing right now.

I think if I was to focus on one thing, it would maybe come back to -- I don't know who asked the question. It might be Thomas earlier. It was on cost. I mean, it wasn't. But in terms of -- we've seen a very strong new product offer. The brands and they're very clearly and distinctly positioned. We have strong residual values. We are selling well with the bank off of that, that's making our offer competitive. We had a big focus on cost reduction on the EV side with Ampere. So we were striving to get that business down to breakeven this year. We probably won't be far. But I don't think that's the key point. I think the key point is looking between one series of cars and the next to be able to take 40% of the cost base out.

There's a little question earlier on LFP, it was Stephen right, I think they said it, but it's -- the battery is a huge element of the cost of the car. And this technology change does allow us to be more competitive in margin than it would on the LC that we have today. But on top of that, I do think we need -- and we will have a heightened focus on fixed costs because we need to protect our breakeven point to ensure we have a continuity in the rollout of our strategy. So I think that would be the focus points.

It will be very much a strategic plan, which is controlling CapEx and R&D. We won't be going past 8% in terms of overinvesting, focused on the core business. And in terms of growth outside of Europe, we're starting to see it now. I mean growth in Europe was 7% in Q3, more than double that for international. And we've made the investments necessary in India and with the purchase of RNAIPL. We have Latin America, which we have a Geely partnership, which we've just concluded, and we also have Korea. So it's utilizing the asset base we have to ensure we can foresee growth in the outlook of the plan.

Duncan, just a quick follow-up, if you don't mind. Just getting questions here on the EV and trying to get to 20%. Just remind us the latest that you were talking about on the EVs, the Renault 4, Renault 5 profitability relative to the range. You're saying Ampere is now very close to breakeven. Obviously, if we start adding volume, that margin will go up further. How do you see that dilution from your perspective?

No, certainly, we have -- in terms of -- we've got 3 challenges in terms of growth because, obviously, EV is increasing, and we're not yet at a parity for margin between EV and ICE. Come back to my point, just answering you in terms of variable cost reductions that have to come in over time. So as we will see growth in EV, it's dilutive because that's the case today, and we have to get to those kind of levels of cost reduction before we get to EV parity.

The second one, I guess, is you've seen, if I linked to the business we have, which you've seen a growth of in Q3 in terms of partner business. So as we've signed partnerships with our European production base, that's what you're seeing coming off now. But with India, you'll also see revenue grow as we sell more to Nissan as we're producing 2 new vehicles for them, one in '26, one in '27. And we'll also be selling and distributing Geely brand in Brazil.

Partner business is great for ROCE because we're not actually putting any additional assets in, but -- we do have a dilutive margin on that compared to the rest of the core business. So there's 3 different challenges in terms of diluted business. International as a whole EV and partner. And the answer to that is cost. And the good news on that is the return on capital employed.

And the next question will come from Philippe Houchois from Jefferies.

It's Philippe Houchois, Jefferies. A couple of questions for me. I think 1 you already answered, but I want to clarify. So you're now talking about a strong fourth quarter, which explains why the book to sales is a bit lower than we've seen recently. Does that optimism on the fourth quarter include LCVs and potentially LCVs going into positive territory in terms of volume, is my first question.

And the other one is, I've seen in the press that France and Spain apparently are against the delaying the 2035 deadline. And I'm just kind of confused right now between what the industry wants to achieve, the governments want to achieve, and if you can comment about where that political decision is coming from a country level and how it is aligned or not with what you're expecting from negotiating with the EU in follow-up with Harald's earlier question. And if you feel there is a common view between the German side and the French side of this industry when it comes to discussing with Brussels?

Thanks, Philippe. I'll try to avoid any political battles, but I don't think -- I think you've got the answer to your question and the alignment across Europe between the different countries, but it's not changing in any way our position, and so we were prepared for 2035. The strategy doesn't need to change on our front because of that. My comments earlier were more on some of the shorter-term challenges for CAFE in terms of LCV very short-term. Maybe the 2030 change in LCV, which is a big step down, as you know. So it's maybe more flexibility on that front that I'm expecting.

You said that you noted, we'd have a strong Q4 in our discussion today, but we'd expected a strong Q4 when we talked to you back in July as well. So registrations were up 9.8%. And -- so yes, as you quite rightly point out, the order bank as a mass divided by the forward-looking sales looks lower at 1.6%, but the order take being up high single digits in Q3 is confirming our outlook on that.

But would you venture to say LCV could be positive in the fourth quarter? I mean, the Q3 was better than the first half.

I don't think so.

Philippe, in Q4, the LCV market should decrease again after a rebound in Q3, which was mainly explained by easy comps related notably to GSR2 effect and some tax incentives in the Netherlands and probably some tactical push also from some players in the market. In this context, the Renault brand should outperform the market, underpinned by the strong order intake that Duncan just mentioned. And notably on Master because of the improvement in the diversity availability. But we still expect LCV to be in negative territory in Q4 in Europe.

Thank you. This concludes our Q3 revenue call. The team remains available if you have any questions. And see you soon. Thank you much. Have a good day.