Casino, Guichard-Perrachon (Euronext:CO) Q4 2025 Earnings Call

0:00 Good evening, everyone. I'm pleased to hold this presentation today together with our CFO, Angelique Christophe Fari. Just keep in mind that the figures we are presenting today are financial data that have not been yet approved by the Board of Directors and as well they are not audited. Angelique will provide further details later on regarding the financial framework behind all these figures. I will start with a short introduction on where we stand in our transformation journey, followed by our key financial indicators for the full year 2025. Then I will provide you with a brief reminder of our Renuvro strategic plan ambition and I followed by an overview of key 2025 business achievement per brand. Then Angelique will walk you through our financial performance for '25 and I will close the presentation by providing you with some perspective and insight on the French retail market.

0:53 We'll take your question at the end of the presentation. Let's start with a quick update on the turnaround plan status. Casino turnaround is a long term three phase mission: Restore, Recover and Grow. After an intense period of transformation, we're entering in the phase of recovering. Our strategic plan, Renovo 2030, defined in Q4 twenty twenty four, had been updated and expanded by two years last November with the objective to generate value over the period twenty sixtwo thousand and thirty. We have also launched in November 25 the adaptation, the strengthening of our balance sheet structure. Angelique will provide you with more detail during this presentation.

1:40 Let me first start by introducing our '25 financial data estimate. First and foremost, '25 marks a new momentum in a strong increase in profitability for the Group. '25 financial data estimates are fully in line with our value creation plan and confirm that the turnaround is well underway. Regarding our sales performance and for the first time since the financial restructuring, we are posting a positive like for like sales growth. Net sales reached €8,300,000,000 with a like for like growth of plus 0.5% versus PY. Regarding our profitability, adjusted EBITDA before lease payment is growing by 14% versus last year and reached €655,000,000 This result reflects the efficiency of our cost optimization, our store fleet rationalization measures and last but not least, the improvement of our retail gross margin.

2:39 The adjusted EBITDA after lease payments reached €198,000,000 representing a growth of €86,000,000 Finally, our free cash flow reached minus €120,000,000 an improvement of five nineteen million euros versus POI. Let me give you a brief reminder of our Renuvao strategic plan ambition before to enter into the key Business '25 achievement per brand. If I have to summarize our long term strategy in one sentence, I would say differentiate brands as possible and centralize resources as necessary. We are a group of seven well known brands that are all unique and complementary, which is Casino, Cetus Kounte, Frans Prix, Monoprix, Naturalia, SPA and the last one, Vival.

3:29 We are now fully engaged in delivering Renault 2,030 ambitions to offer our customer the best brands in convenience retailing. We have just updated and expanded our Renuvaux strategic plan by two years and our vision, mission and direction remain unchanged. Our 2030 strategic plan is based on five key strategic levers supporting and changing core vision for the Group, strength of our brands, our culture of service, our strength as a Group, the energy of our people and our societal and environmental values. They deliver all connected, interconnected and declined per brand to specific actionable measures. The entire company is focusing on execution on a day to day basis.

4:18 Before providing you with a key Business '25 achievement per brand, let me give you a brief summary of our Group twenty five focus. Here are six core execution focus of 2025: First, brands and store concept investment, focusing on actions, on creating, texting and launching pilots and rolling out store concept as well as refining brand personality investing in our franchisee development. Within our circa 85% of our store portfolio is franchised streamlining our store portfolio to eliminate loss making store with profitability as a key driver versus market share at any cost managing COGS improvement, rationalizing and massifying private label volumes increasing national brands assortment overlapping across brands implementing Aura Retail and Everest alliances and continuing cost reduction, notably through the rollout of several group share services such as IT, accounting, payroll, legal, name it.

5:27 Last but not least, cash management with a definition and a follow-up of a detailed CapEx program and optimization of our remodeling costs. I will now guide you through an overview of the key business 25 achievement per brand. Let me start first by Monoprix. For you recall, Monoprix business unit represents six twenty four stores by the end of 2025, of which two eighty three are owned stores and three forty one are franchised. Let me present you in one slide the main Monoprix achievement in 2025. Monoprix sales reached €4,000,000,000 in 2025, representing a like for like growth of plus 0.6% and an adjusted EBITDA growth by 10.9% versus PY.

6:21 This result reflects the good performance of Monopoly, especially in fresh products, non food categories such as fashion and home decoration. What are the main Monoprix achievements in 2025? First, several initiatives have been launched in the key quick meal solution market. Monoprix defined, tested and launched the new concept La Cantine in 12 stores by the end of twenty twenty five, posting encouraging double digit growth. During Q2, Monoprix introduced a new quick meal solution assortment with circa two fifty SKUs rolled out in all of our stores. Second, regarding the food category, Monoprix was focusing on developing fresh category with the rollout of 25 new fresh counter and 14 stores with a new fruit and veg concept.

7:10 The team continued to strengthen Monoprix's singularity and personality brand, thanks to the introduction of over 800 innovation to the assortment this year. As far as non food is concerned, Monoprix sustained growth in the beauty and fashion category by defining, testing and launching a new beauty concept rolled out already in 14 stores and by developing a new collection supported by our 11 partnership with designers in 25 in Home and Fashion category. Fourth, we have also worked to continue our digitalization to position Monopoly as an omnichannel brand. To name a few, we extended our partnership with Amazon to 22 additional cities. We developed quick commerce solution with Uber Eats and Deliveroo, covering today 92% of our store network in France. We finally developed our new e commerce site monoprishoping.affair dedicated to fashion and decoration categories.

8:11 In parallel, we kept on working core retail fundamentals, improving products' availability and reducing shrinkage, increasing the number of conveyor belt checkouts, plus 10 points versus last year giving more shelf space to highly profitable non food category. We took the opportunity by closing 28 magazine and newspaper departments in our store Regarding the Monopoly and Mono store network management, 26 new stores opened over a period while 20 underperforming ones were closed. 30 own stores were switched to franchise. And last but not least, we started store remodeling with seven stores in 2025. Let's now continue with Frampris. For you recall, Frampris business units represent nine ninety nine stores by the end of 2025, of which two ninety six are owned stores and seven zero three are franchised.

9:10 Let me present you in one slide main Frampris achievement in 2025. 2025 obviously was, for Frampruit, a year of unlocking potential. Frampruit sales reached 1,500,000,000 in 2025, almost flattish with an adjusted EBITDA growth by circa 20% versus POI. The execution of the Renault strategic plan includes several important achievements. First, the rollout of our performing oxygen concept in 89 stores in 2025, summing up to 107 stores at year end. As far as our quick meal solution is concerned, we have proceeded with important space reallocation for snacking, development of a new stacking assortment and menus such as breakfast at €1.9 or a pizza menu at €5.5 positioning Frampris as the cheapest among all of our own competition in the market and launching a set of exclusivity such as Krispy Kreme.

10:17 We also launched several customer focused commercial initiatives. The new loyalty program, BB plus with circa 50,000 additional subscribers in 2025. We launched as well the PRIFOR initiative that includes essential articles at highly competitive price. The rollout of daily in store services such as Nanimag, Franclay, etcetera and finally, the rollout of Leader Price as the core private label of Grand Prix and Tour de Jour as a brand as an entry price range. We also developed specific B2B promotional offers under the concept of buy more, pay less to help our franchisees in boosting their sales and profit.

11:04 And finally, in terms of store network management, we maintained a disciplined approach with 20 new store opening, 85 store exits and six own stores converted to franchise. Now let's continue with Casino, Spa and Vival brands. For you recall, Casino, Spa and Vival business unit in France represent 4,528 selling points by the end of twenty twenty five, of which two thirty six are owned stores and 4,292 are franchised, which is 95% of the store are franchised. Let me show you in one slide, like for the previous brands, 25 achievement. Casino's Par Vival sales reached EUR 1,280,000,000 in 2025, representing a positive like for like growth of plus 0.6%, with an adjusted EBITDA decreased by circa minus 37% versus PY, mainly driven by ASHMSM disposal dyssynergy, but we carry them since 2024.

12:10 The execution of the Renault strategic plan includes several important achievements. We launched in 2025 two new store concepts. We defined, tested and launched the new concept of Spark called Origins in five stores by the end of twenty twenty five, posting encouraging double digit growth. We defined a new casino brand identity in Q4 twenty twenty five and the first store, the first two stores, I must say, will be inaugurated not later than tomorrow in Saint Etienne. And in case you are close by, please, you will be welcome to visit us. In the key quick meal solution market, we continue to roll out of our Curre de Blais concept with 53 corners deployed in 2025, summing up since 2024 to 62 stores up to date. We complete our snacking assortment by introducing 17 new SKUs in 2025.

13:04 We also launched several customer focused commercial initiatives. We continue to roll out our Coup de Pousse loyalty program launched in 2024 with circa 128 new subscribers in 2025. In parallel, the team continues to transform casinos par Vival singularity and personality, thanks to the introduction of new assortment tailored to the trade areas as well as corner of Naturale, for example, in 20 stores. As for France Prix, we introduced B2B promotional offer, buy more, pay less type of, and we launched new AE functionality of Casino Pro. Casino Pro is a tool for franchisee and ordering tool that helps them to better manage their store performance.

13:50 In terms of store network management, we opened 151 new selling points. Ten fifty two stores were exited and additionally, 78 own stores were converted to franchise. Now let me switch to Naturalia. For your record, Naturalia business unit represents two thirteen stores, of which 152 are owned stores and 61 are franchised, means 29% only are franchised. Let me show you in one slide what has happened in 2025 for NaturaLa. It was a year of growth acceleration for NaturaLa. Sales reached €300,000,000 representing a positive like for like growth of plus 8.6% and an adjusted EBITDA increase by circa 57% versus PY.

14:41 Main achievement for Naturalia was the rollout of our Performing La Ferme concept in 25 stores in twenty twenty five. End of December to date, 36 stores are already rolled out. Naturallia had launched a new organic quick meal solution concept in 35 stores and a new beauty concept in 47. Teams have also worked to continue Nat Puralia digitalization by adding 17 new stores with our partner Uber Eats and launched several commercial initiatives. In terms of store network management, six underperforming stores were closed and one store was opened in 2025. Let's finalize an overview per brand of 25 by Cedis Kount.

15:29 '25 was for Cedis Kount, the year of customer acquisition. Celeste Kount GMV reached €2,750,000,000 in 2025, representing a growth of plus 3.5% versus PY. €1,000,000,000 of net sales and an adjusted EBITDA of €67,000,000 Starting with our solid B2C performance, we saw sustained 3P momentum with a GMV increase by 7.7% in 2025, reaching plus 8.1% in Q4. Our Marketplace business grew, representing now 67.3% of our total GMV, a two percent point increase over 2024.

16:18 We continue to expand our customer base, acquiring 2,000,000 new customers in 2025. Our major investment plan has been fully deployed, providing support for both sales uplift, brand equity and obviously customer acquisition. Moving on to our B2B activities. We've seen significant progress in enhancing the experience of our sellers, resulting in a notable or noticeable 20% reduction in support tickets. Furthermore, our Retail Media business has experienced strong growth with net sales up 13% compared to last year. Finally, we developed in house conversational chatbot deployed with more than 900,000 customers, leveraging generative AI to enhance search and improve conversion.

17:09 Let me now share with you a few group initiatives, starting with our store portfolio streamlining and how we strengthen our relationship with our franchisee. We continue streamlining our store portfolio to eliminate loss making store and coordinate selective expansion with profitability, as I said, as a key driver versus market share at any cost. From January to end of December, eleven seventy eight stores left our network portfolio. During the same period of time, we also opened two zero seven stores and we switched 112 stores to franchise. In parallel, we continued to strengthen our franchisee relationship by organizing, for example, annual franchisee event, sharing monthly newsletters, implementing B2B Net Promoter Score and involving our current franchises in the franchisee selection process for new store openings.

18:08 Finally, we support franchisees' store performance by providing them with user friendly store performance report versus their local competition, for example, or versus the average network performance. As far as cost reduction is concerned, we have put a lot of effort in efficiency improvement, cost reduction and CapEx monitoring. In the first half of twenty twenty five, we successfully launched seven group shared service centers covering key functions like IT, accounting, payroll and others. We kept on increasing assortment overlap for national brands across all our business units. We are continuously managing our CapEx with detailed calendarization and reduction of our concept remodeling cost per square meters. Finally, we strengthened our process to recover overdues receivable, ensuring better financial discipline.

19:06 And last but not least, two purchasing alliances are now operational, supporting our retail gross margin improvement. Viola retail purchasing alliance with Inter Marche and Dauchan in place since March 2025 for a large 2,080 supplier. The European Everest Purchasing Alliance since August 25 for international purchases. By the end of twenty twenty five, 37 suppliers were at the rollout. Let me now hand over to Angelique. Thank you very much, Philippe, and good evening to you all. Let me first provide the context and financial framework behind these key financial data estimates for 2025. This publication is intended to provide the market with financial information relating to 2025, subject to the formal approval of the financial statement for the year.

20:03 As such, this information does not stem from a full set of financial statements since it has neither been approved by the Board of Directors nor audited by the statutory auditors. However, the process related to the preparation of the consolidated financial statement has been completed. These financial data have been prepared on a similar basis as that used for preparation of the consolidated financial statements in accordance with the IFRS reference framework and are based on the information known by the Group as at the date of this presentation. These data have been reviewed by the Board of Directors at its meeting held today. The approval of the financial statements on the basis of the going concern assumption remains subject to a favorable outcome of ongoing negotiations among the stakeholders involved in the Group financial restructuring.

21:01 Here is a summary of our full year financial data estimates. As you can see from the table, the trend is reserved positive with a net sales like for like growth over the full year period at plus 0.5%, driven by solid initial results of the rollout of new concepts in the Food business and the sustained momentum of the non food activity. We saw a significant improvement in profitability with a 14% growth in adjusted EBITDA, driven by: first, the implementation of action plans, such as reducing shrinkage and improving receivables collection second, the benefit of purchasing massification under alliances third, the measures to streamline the network, as Philippe mentioned and fourth, our cost discipline.

21:48 Our consolidated net loss group share would come out at minus CHF402 million, mainly due to the net financial expenses in continuing operations. Free cash flow before financial expenses remains negative at €120,000,000 representing a strong improvement versus last year, mainly derived from the growth in operating cash flow and the change in working capital. Net debt stood at €1,500,000,000 up €290,000,000 compared to December 24, still impacted by cash outflows from discontinued operations. The Group liquidity position was CHF1 billion at the end of December twenty five.

22:34 It includes operational financings, for which the Group has obtained from its creditors an extension of the maturity to 05/28/2026. The Group aims to reach an agreement with its creditors and FRH, its main shareholder, within this period and at the latest, by the end of June. Let's now go into the market environment. According to CIRCANA data for 2025, and more specifically, the FMCG category, value sales across all channels were up plus 1.9% in 2025, with inflation up plus 0.6%. The positive news last year is that volumes rebound in 2025, with plus 0.9% growth versus 2024, after four years of decline in France, alongside a slight Premier Musician trend.

23:31 Combined with moderate inflation, these factors are driving revenue growth. In this context, the Convenience Store segment continued to outperform other store formats in 2025 in both value plus 6.3% and volumes plus 4.9%. This supports our strategic positioning, in line with changing consumer trends. As for Monopoly, its performance followed the general trend among supermarkets category. However, in Q4, market trends were marked by a significant decline in festive products in all segments over the key four week period ending January 4. It was minus 4.4% in value and minus 3.4% in volume.

24:18 A similar trend was also observed in our operational performance for December 25. First of all, a quick overview of our group sales figures. Full year 2025 net sales totaled billion, up 0.5% like for like. This performance must be split into: first, a return to growth for our convenience brands, up plus 0.7% like for like, with 0.6% at Bon Appri and Casino, Spa, Vival, when Naturaia increased by plus 8.3%, but Frantry slightly declined. Second, a minus 0.7% decline for the discount on net sales, which, however, reflects an improvement over the year with a strong acceleration in Q4 with plus 3.7%.

25:10 On JMV side, as Philippe mentioned, sales discount was up plus 3.5%, also supported by an acceleration in Q4 with plus 6%. Let's now focus on Monoprix. Monoprix net sales amounted to €4,000,000,000 in 2025, up plus 0.6% like for like, of which minus 0.5% in Q4. Non food sales, representing about 30% of net sales, were up plus 2.1% and once again supported the trend driven by Fashion and Home, which is outperforming the market. Food sales, representing about 70% of net sales, were stable, reflecting a contrasted performance with positive momentum in fresh products, plus 1.3%, offset by unfavorable market trends in festive products in December, as mentioned before.

26:09 The brand recorded a plus 0.4% increase in footfall in 2025. In terms of adjusted EBITDA, Monoprix totaled CHF424 million in 2025, up CHF42 million year on year. This change is driven by the reduction in shrinkage, the margin gains resulting from the alliance with Aura Retail, the cost savings which partially offset the rise in store staff costs. Frantry net sales came to €1,500,000,000 in 2025, slightly decreasing by minus 0.4% like for like, of which minus 1.4% in Q4. The good performance of stores converted to the oxygen concept was offset by negative impacts from price cuts rolled out in September 2024 and the nonrenewal of a promotional operation in Q1 twenty twenty five.

27:06 However, footfall rose by plus 3.8% in 2025, of which plus 2.5% in Q4 as a result of commercial offer developments. Loyalty program acceleration, as Philippe mentioned, the pre franc price campaign with prices cut and frozen on 30 private label products, the development of services such as Franclis for key duplication service or the Danny Bag luggage security service. Adjusted EBITDA for Franclis totaled €136,000,000 in 2025, up €22,000,000 year on year, driven by strong cost management and lower impairment of receivables as a result of actions to streamline the store network.

27:52 Casino Brands net sales amounted to €1,300,000,000 in 2025, up 0.6% like for like, of which 0.3% in Q4. 2025 net sales performance was positively impacted by strong momentum for seasonal stores as well as the efficiency of the supply chain, with an improvement of service rate at 94.9%, plus 2.5 points versus 2024. Adjusted EBITDA amounted to €29,000,000 in 2025, down €17,000,000 year on year. Excluding the impact of twenty one million euros in desynergies on operating costs and €12,000,000 in logistics desynergies, adjusted EBITDA would have increased by €16,000,000 supported by the important streamlining of the store network and cost savings.

28:50 As for Naturaia, net sales came to €310,000,000 in 2025, up plus 8.3% like for like, of which plus 8.4% in Q4. The brand definitely benefited from a good momentum in the organic market and the success of its LaFerme concept, plus the effectiveness of measures taken in terms of product offering and assortments. E commerce sales also performed well in 2025 for NaturaLa, with double digit growth of website, plus 19.1%, while the partnership with Uber Eats on QuickCommerce continues to be rolled out, covering 72 stores at the end of twenty twenty five.

29:36 NaturaLa continues to benefit from a strong growth in footfall, up plus 8.2% in 2025 and a solid loyalty customer base since 74% of its revenue is generated by loyalty cardholders. Adjusted EBITDA amounted to CHF22 million in 2025, up CHF8 million year on year, driven by volume, FX and cost discipline. As for sale discounts, the brand has enjoyed positive momentum in 2025, thanks to its relaunch strategy initiated eighteen months ago. Global GMV has returned to growth in 2025, supported by Marketplace GMV with plus 8% growth, while the Direct Sales GMV decreased by minus 1%, but keeps recovering with a return to growth in Q4, plus 3%.

30:30 The Discount net sales came to CHF1 billion in 2025, down 0.7%, of which plus 3.7% in Q4, confirming the sequential improvement underway since 2024. Adjusted EBITDA came to €67,000,000 in 2025, down €4,000,000 year on year due to higher marketing costs as part of this reinvestment plan, which was partially offset by strong commercial momentum, operational efficiency and cost savings. By contrast, adjusted EBITDA after lease payment increased by CHF5 million, primarily supported by a significant decrease in lease payments resulting from the rationalization of warehouse capacities.

31:18 By walking through the P and L statement, we would arrive at a consolidated net loss of million, including a net loss from continuing operations of minus EUR571 million and a net profit from discontinued operations of plus EUR168 million. The net loss from continuing operations was mainly impacted by EUR64 million trading profit, resulting from an adjusted EBITDA of EUR65 million but EUR591 million of depreciation and amortization. Second, a reduction in other operating expenses, which amounted to minus EUR258 million in 2025, including €87,000,000 related to asset disposals, mainly real estate assets minus €275,000,000 asset impairment losses, including €218,000,000 in goodwill impairment and minus EUR 41,000,000 from risks and litigations.

32:27 A negative impact of EUR $369,000,000 from net financial expenses, including a net cost of debt of €192,000,000 interest expenses on lease liabilities of €445,000,000 and the financial cost of CB4x for sale discount of €25,000,000 As regards the discontinued operations, the net profit of €168,000,000 was mainly due within the HMSM segment to favorable settlements of liabilities related to reorganization costs, termination of operational contracts and store closures. It thus reflects costs that are ultimately lower than initially estimated.

33:20 In 2025, we then reported a free cash flow deficit of CHF120 million, an improvement of CHF519 million versus 2024. This change reflects the growth in adjusted EBITDA after lease payment for CHF86 million, a positive impact of CHF403 million due to change in working capital. As you know, 2024 was marked by the financial restructuring with a return to normalized payment terms leading to a higher level of disbursement in 2024. On 2025, we saw the implementation of the suppliers' shared service center, with a new organization requiring a complete overhaul of processes.

34:07 Changes in working cap was also impacted by faster inventory turnover due to seasonal effects end of twenty twenty five. Generally speaking, the basis of comparison had been adversely affected last year as well by the payment of EUR153 million social security and tax liabilities placed under moratorium in 2023, of which EUR142 million coming from working capital and EUR11 million from taxes. Excluding this effect, the free cash flow before financial expenses last year would have been negative for minus €486,000,000 and the free cash flow would then have increased by €360,000,000 positive year on year. Now starting from the minus €120,000,000 free cash flow of the previous slide, our net debt position has been mainly impacted by the net financial expenses, of which CHF118 million interest paid for the reinstated term loan, CHF19 million cash flows from discontinued operations and asset disposal, including a negative impact of CHF152 million in cash related to discontinued activities, but a positive impact of EUR170 million from real estate disposals.

35:26 As a result, our net debt has increased by EUR290 million to EUR1.5 billion end of twenty twenty five. On this slide, we can see our debt maturity profile. As you know, most of our debt, except our main RCF, matures in March next year. And for operational financing, we have secured last week an extension of the maturity from our banks until of the end of May twenty twenty six. In the meantime, ongoing discussions with creditors are continuing with a view to reaching a comprehensive agreement that would, in particular, extend the maturity of the operational financing to a longer term and also revise downward the cost of debt.

36:12 You can also see on the right the cost of our main debt instruments. In light of this maturity and cost of debt, last November, the Group has launched a work to adapt and strengthen its financial structure, as most of you know. Now let's give you some insight on our liquidity position at the end of December last year, which stands at €1,000,000,000 including €11,000,000 of undrawn overdrafts. All the other credit lines were drawn as of December 2025, as you can see here, the main RCF for EUR $711,000,000, EUR $249,000,000 of overdraft facilities, EUR 95,000,000 of the Monocryx Quotation RCF and €60,000,000 of the French state guaranteed loan, plus €36,000,000 of Monocryaldi's bilateral lines of credit and €20,000,000 of another bank available line.

37:15 Just as a reminder, under the loan documentation, available cash is defined as cash and cash equivalents, excluding the float and any trapped cash. Now moving on to our financial covenants. The financial covenants until those financing agreements include EUR100 million minimum liquidity on the last day of each month. Hence, 1,000,000,000 end of December was satisfying. And the same covenants also applies to each month of the subsequent quarter. Here, important for you to know that our liquidity position estimate for the end of Q1, which is tomorrow, is EUR0.8 billion, of which EUR0.2 billion is attributable to factoring reverse factoring and similar programs.

38:06 The total net leverage ratio at the end of each quarter must also comply with specific thresholds. As at December 25, this ratio was 4.66 based on EUR194 million covenant adjusted EBITDA and EUR900 million covenant net debt. It is below the threshold of EUR7.17 million we were to comply with and it doesn't take into account any pro form a restatement as warranted by the documentation. I would add that the ceiling of this ratio is set at 7.41% for March 26 and our EBITDA forecast for Q1 is to ensure compliance with this March test. Let's now focus on the project to adapt and strengthen the financial structure of the group.

38:58 In order to support the execution of the strategic plan and in light of the maturity of our various indebtedness, we have initiated work to adapt and strengthen our financial structure since last November 25. The key terms of the proposals made by either the controlling shareholder or the creditors were made public in February and March and are detailed in the presentation available on the group website. It's important to highlight that should such a transaction to adapt and strengthen the financial structure be completed, it would result in a significant dilution for our existing shareholders. The company has last week secured an extension of the standstill agreement from the RCF, TLBs and operating financing creditors until 05/28/2026, while the standstill granted by the Quadrim creditors is in the process of being extended from end of April to end of May.

40:00 Banks have also agreed to extend the maturity of the operational financing to the end of May twenty twenty six. As of today, unfortunately, no agreement has been reached between Casino, Efferach and the creditors regarding the adaptation and strengthening of the Casino Group financial structure and discussions are continuing. So that concludes my presentation. Thank you for your attention. And I give the floor back to Philippe for his closing remarks. Yes. Thank you, Angelique. I will go to a conclusion. That means I would like provide you with an overview of our market perspective and upcoming challenges that Casino Group will face in the coming months. First of all, I'm convinced that we are at the right place and at the right moment. Covenant Street Market, as you have seen in the Angelique presentation, shows a positive trend aligned with change in consumer habits, especially in the growing segment of Quick Meat Solutions.

40:55 There are still a white spot for expansion in our targeted zone in France. Organic Specialized Distribution and e commerce penetration are still growing, offering important opportunities for the group. Main French retailer operate a move towards growing communist retail sector, on which there is significant investment, especially in Paris. Rivari will increase drastically in the upcoming months, most likely leading to a territory and price war. Moreover, traditional retailer position is exposed to risk from the aggressive expansion of non food discounters and ultrafast fashion e commerce platform such as Temu or Shin. Finally, from a macroeconomic perspective, we'll also face consumption decline and lead to political instability in France, low consumer confidence, recent conflict in Middle East and the oil price increase.

41:51 It's now a moment to conclude. I would say that we're in a dynamic convenience market at the right place, with the right brands, at the right moment, but in a market increasingly competitive where players are fighting for price leadership. '25 financial data estimates are fully in line with our Renault 2030 business plan and confirm the relevance of our positioning and the successful execution of our strategic plan. We'll focus during the coming months on execution and constantly adapting our model to market evolution as well as to market revolution. I would like to thank you for your attention, and we will now answer your questions. Thank you.

42:47 Okay. Then the first question is when will the group pay the rest of the Quadrim bond given the high interest burden? So you may have noticed that EUR 21,000,000 were repaid last Friday to the Quadrim secured bondholders. Hence, the nominal amount of the Quadrim bond is now EUR 120,000,000 versus what it was end of December. The gross asset value of our real estate asset presently stands above €200,000,000 at the end of last year. And we are ahead of schedule, which means that thanks to this disposal program, we have reduced the coupon at 7.5% since April 2025 instead of an initial coupon of 8.5%.

43:38 This bond matures on January 27, and it benefits from a one year extension option exercisable by the company, which will be we will see in the future how this is extended. We also have a question from ODDO, what to expect on margins from Casino and SEDiscount, which were somehow below expectations going forward? On margin, Casino and SEDiscount are not below our expectations. In the next year, we expect that Casino free cash flow should be zero in 2030 as was shared through the Renovo 2030 plan, and it should be, for the discount, a EUR 67,000,000 free cash flow.

44:27 Yes. I think the question I will take that one. The question, it seems that somehow CapEx is below target slightly, but above all, is it enough to meet growth in the context of increasing competition in proximity? I mean cash flow reached €252,000,000 in 2025, slightly below our plan of €263,000,000 which was just phasing effect we had at this time. As you recall the representative that I mentioned that we are very careful in the cost per square meters and as well as to make sure that we implement the right CapEx at the right store and at the right place. This year, we have accelerate at Monopoly as well all the investment, the CapEx investment we are doing in turnaround stores. You know that every store by the end of the plan of Monopoly will be touched till 2030.

45:24 Every single store will be touched on that one. If you take '25, 2030 is more than €1,700,000,000 that will be invested into our network. And yes, to answer your question, is highly sufficient to fight against competition and even leading the pack. Next question? Yes. We have a question on net debt. So can you elaborate on the position as of December 25 and real estate disposals? How much of the cash from those disposals? Is this level of net debt a kind of run rate? Or shall we make some retreatment to have an idea of the real net debt, excluding divestments?

46:18 So the consolidated net debt stood at 1,500,000,000 end of December, increasing by EUR $290,000,000, as explained during the call. This variation was mainly impacted by real estate disposal for EUR 170,000,000, but financial expenses for minus EUR182 million, cash flows from discontinued operations for EUR152 million and free cash flow before financial expenses of minus EUR120 million. So net debt end of December twenty five was yet impacted by the real estate disposals and discontinued activities, notably as indicated.

47:04 Ongoing discussions to change the group financial structure will impact what is the level of group indebtedness and cost of debt going forward. So it's a bit early to answer what is the run rate for the net debt. And apparently, there is no more questions. But we would like to thank you for the time today and for your question, and we're going to see most of you quite pretty soon and next financial update will be end of the quarter as well, first quarter. Thank you