Avio S.p.A.

Good afternoon. This is the Coruscant Conference Operator. Welcome and thank you for joining the Avio First Quarter 2026 highlights presentation. All participants are in listen-only mode and after the presentation, there will be a Q&A session. At this time, I would like to turn the conference over to Mr. Nevio Quattarini, Head of Investor Relations. Please go ahead, sir.

Good evening, good evening everyone and welcome to Q1 2026 results conference call Olavio. I'm here with Mr. Giulio Ranzo, newly confirmed outside chief executive officer of Olavio and Mr. Roberto Garassai, chief financial officer of the company. In a moment, we will go through the presentation we just released on our website, which outlines the main highlights and financial results of the quarter. And in the end, we will, as usual, welcome your questions. Thank you for your attention, and I hand the conversation over to Giulio.

Thank you, Mario. Thank you all for joining the first quarter results, the additional call we have. As Mario was commenting, I was reappointed, so I'm not a newly appointed CEO. I'm second-hand, probably, nonetheless. Off we go. So, another quarter. So, overall, this first quarter is in line with expectations, continues to show growth on what we do, and numbers in line with expectations. We're ready to go with DD29, the 29th mission of Vega. The SMILE satellite is on the pad and is expected to launch on May 19th. We had a little bit of a delay over the last few weeks, but we're on track to fly on May 19th. We recently had two important successes of ION6. The first flight for Amazon. You may recall, those of you who have followed the stock for a while, that this was an important target for ION6, which we achieved together by improving the performance of ION6 to suit the needs of the Amazon customer. So we were very happy on the last flight. We performed the first mission of ION6 with four of our boosters. a very, very important milestone achieved. It's also important to highlight to you that we are approaching notable milestones on our liquid propulsion technology projects, which we often refer to but don't talk much about. We are now accelerating a little bit towards the first adrenaline milestone, so we want to update you a little bit on that as well. On the U.S. projects, We are progressing as expected. We recently completed the land purchase in Virginia and started to order the plant equipment, which are, you know, with more lead time, so we ordered that in advance. As I said, on the financial side, the revenues continue to grow at a transcendent pace. versus last year, which is not irrelevant, if I may comment, because this is the fourth year in a row that we continue to deliver on the top line a growth of 20%, which I can guarantee to you that is anything but simple. Then, based on these aspects here, we obviously confirm the 2026 guidance, which is communicated a few weeks ago. As I said before, like you commented, we have a new board of directors. Five out of nine have been changed in the director, so myself and the chairman remain to grant management continuity, but we have also some new relevant additions that have broadened a little bit the competencies we have around the board of directors. So now, Moving on to page five, as I said, the venue, the next legacy mission is about to be launched, so May 19th is an important flight for the European Space Agency. The smile spacecraft, it's a scientific mission to measure something particularly complex to solar wind. the mission will be the first operated by Avio as a launch operator. But that being that we will essentially replace the former role held by Ariane Space for many years since the beginning of the Vega launcher. And so Avio will be overall responsible for the hold on service, which was, as you know, a target we had pushed for a long time. So everything is ready to go. We should see that next Tuesday, the night, I believe, between Tuesday and Wednesday in Europe. I told you about the first place of Amazon Neo. I remember very well when we pursued this customer a few years ago. We promised Amazon to deliver a capable launcher to suit their needs. in a peculiar configuration. Now we perform the first two flights, the first couple of flights for them. Now, later in July, I believe, we will perform the first flight of Ariane 6 core with the P160, with the larger prep-on booster that will deliver more performance and, therefore, more ability to carry more payloads, more satellites in just one flight. which I think is particularly relevant for Amazon because they have, let's say, scattered their flights across a number of different launchers. IN6 covers a portion of their launching needs, but we are delivering as expected, and I believe the customer is very happy about that. So, therefore, this is very important for us as we deliver the propulsion systems, which are very relevant, as you know, since the grant to something like 90% of the trust. The schedule this year for flights looks really busy. There might be as many as eight IM6 flights and three Vega C flights. The schedule for Vega C in 2026 has been made complex by scheduling of the satellites wasn't ideal, because what we envisioned is that we might have five flights in 2027, maybe it would have been better to do four rather than three and five. Nonetheless, the schedule of the flights was set to this tentative schedule for the time being. We continue to have a robust backlog on both IM6 and Vegas. for the foreseeable future. So we are covered all the way to 2030, give or take. So I think there's quite some visibility over future flights. Now it's all around execution and making sure we deliver on the promise of raising the flight rate. And next year, for sure, for Vega-C, will be extremely relevant. For Alien 60, already, will be relevant this year. And for us, too, in delivering the most. As we said before, a new board of directors with lots of new additions. In particular, we have two U.S. directors, Stephen Wood and Heidi Hsu. In particular, I want to mention the name of Heidi Hsu. She was a former Secretary of Defense, so very experienced in defense technologies, very important for us to have this addition. And Stephen Wood is a financial investor himself, so with some experience on the U.S. market and considering what we have in our plan, I think these are important.

Ladies and gentlemen,

So the combination of these new competencies with us, with some that we already had, and therefore we believe that the usual setup with more than 50% of the directors as independent directors will continue to work. Of course, as I said before, chairman and CEO remain the same. As I was saying before, quite some advancements on the liquid oxygen methane technology demonstrator. that we are currently integrating to perform the first two tests. This is essentially a prototype of an entirely new next generation launcher with using liquid oxygen methane propulsion, which is in a way a novelty in Europe. It's also a novelty in the US, but you know, more so in Europe. So this is just an experimental vehicle. This is not meant for the time being carry any particular payload, but to improve our technology hopefully to a completely different degree of efficiency. So this experimental vehicle will perform a number of ground tests and then next year is supposed to perform a flight test. to measure essentially the performance of these new propulsion technologies, but not only that, also a completely new avionics system and some other systems that we work not only on the ascent phase, but also on the descent phase in the attempt to control the descent phase. So essentially making the first steps towards reusability that, as you know, we have embarked on as a development path, also with a separate contract to develop .

Get that done.

Now, to perform these tests, we have put together and infrastructure that will allow us to perform both ground tests and flight tests. It's interesting because it's a removable infrastructure. It's very small but complex, and we can mount and dismount this in different locations. So it's quite some new experience for us and a completely new technology. but hopefully something that we represent the forefront of our knowledge, adding a lot of intellectual property to our assets. In parallel, we are also reaching a very good level of confidence on our NPGE Orbital Engine, which is an hydrogen peroxide after stage storable engine. very important and will continue to be very important for orbital maneuvers. So this would mean the future be the engine for the upper stage of Vega-C and for the propulsion system for in orbit service modules derived from the Vega-C upper stage. So we have never endeavored on the developing technologies of this kind. We are very happy now that I wouldn't say we are yet mastering the technology, but we are reaching a good level of understanding of a type of technology that can guarantee you is absolutely forefront and way more efficient than any other currently used and also more environmentally friendly. So we're quite happy to have performed a number of very relevant tests successfully. More tests will be done on an upgraded version of the engine itself, but the whole infrastructure for testing that we have put together has left our team with a lot of new knowledge. In parallel, in the U.S., we have signed new orders in the course of the first quarter with the U.S. Army in particular, and then we have agreed with the Commonwealth of Virginia, with the state of Virginia, a whole package of incentives to establish our plant for a maximum amount of up to $97 million in a mixed form of tax incentives and some other types of small grants. On this basis, we have then secured the purchase of 1,200 acres worth of land in the southern part of Virginia. in the Pennsylvania country in the so-called Southern Virginia Multimodal Park, which is an area that is devoted to industrial activities. So in parallel to purchasing the land, we have also started to hire some people and to issue the first orders for the process equipment. So for the plant equipment, the mixers, the hydro, the premises, you know, all of the key relevant pieces of machinery that require a long time to procure. So that's in a nutshell what happened in the first quarter. I wouldn't spend too much more time on that. I would leave it to Roberto Carassai, our CFO, to walk you through the details of our first quarter financials, and then we will get together again to comment on the outcome. Okay.

Thank you, Giulio. Good evening, everyone. It's a real pleasure to walk you through our financial performance for the first quarter, which marks a pretty solid start for the year. Moving to the background slide, it's worth highlighting that the backlog is still very robust, exceeding 2.1 million in line with last December. This is due to the fact that we have booked 8 million orders in the first quarter, largely thanks to this contract that we have signed with the U.S. Army and for the development, the qualification, and the initial production of solid rocket motors defense application. Thanks to this order intake, we have achieved on the defense business segment, 31% of the total backlog amounting to 650 million. It is increasing also the stake of production inside our backlog in the 70%. versus 30% related to the technical development. If we move to the next slide, we focus a bit on the revenue performance. As Giulio was saying, we have again achieved an increase of double-digit increase compared to last year, almost 20% more than last year, achieving 128 million. As you can appreciate, this increase has been driven by all the three segments, so the launch system, the space propulsion, and the defense. In particular, in the launch system, we have increased the production activity in line with the VGAS-E flight mindset, while on the space propulsion, we are increasing the booster production for the M6, and then the defense increase is mostly due by increased production currents for Aster. to this size that we manufacture. And moving to the next slide, we focus a bit on the process loss. And here, it is important to highlight that this growth on the net revenues driven the growth of the EBITDA adjusted reported that achieved 5.2. with a significant increase of 1.2 compared to last year. And these results have been possible despite the ramp up of the USA cost in line with the expectation that has achieved 1.5. In terms of net financial position, we still have a fairly high positive net financial position amounting $560 million, slightly declining from the amount that we used to have last December. This is as a result of the partial initial flow down of the advance payments that we massively collected in the last quarter of 2025 to our suppliers. Moving to the next slide, you can see Here we can focus a bit on the quarterly evolution of both FTDA and net financial position. In terms of FTDA performance for the year, we expect to follow the same path of the previous year. And in terms of seasonality, you know that these companies experience a bit of business seasonality. and the largest bulk of the EBITDA is generated in the second half of the year, in particular in Q4. In terms of net financial position, we expect this net financial position to partially decline across the year in order to cover the CAPEX standing for the USA project and for the further flow down to the supplier of the advanced we collected last year. Moving to the last slide, yeah, based on Q1 results, the company confirmed the full year guidance. Thank you very much. I leave the floor to you again for Q&A.

So for those of you who are new to following Agno's results, the first quarter, is typically soft it's not particularly indicative of the year in particular in terms of the profit because as you can very well see from the the distribution of the profit across the quarters typically the most of the profit gets accumulated on the fourth quarter so the first three quarters are typically soft so we did well according to expectation maybe even a little bit more than expectation So we're on track. I wouldn't take from that the indication that we'll have 20% more at the end of the year. We don't know. But what is indicative is that, and I want to make a clear statement of that, is that crunching revenues at a 20% increase for the first year in a row is not simple. And in my mind, it is failing of the ability to convert all of this market demand growth into backlog first, which reached a record high at the end of last year, and into net revenues now. So this is requiring a lot of effort, hiring people, mobilizing suppliers, moving a lot of working capital. So, so far so good. This is moving in the right direction. We will continue to do so, and we'll have more data points maybe by the fall. So thank you very, very much for following our presentation.

We're open to any questions. This is the conference operator who will now begin the question and answer session. To answer the queue for questions, please click on the Q&A icon on the left side of your screen. When announced, please click continue on the bottom of the pop-up window. If you are connected in audio only, please press star 1 on your telephone. The first question comes from Martino de Ambrogi with Equita. Please go ahead.

Thank you. Good evening, everybody. Three general questions. The first one is on the CAPEX plan. So everything is progressing in line with your plans so far, but is it conceivable any acceleration considering the environment for the defense propulsion? And on campus, if you could quantify, remember as the expectation for the full year and what was spent in Q1. The second is on MBDA. Because the CEO stated that this year production, there is a 40% production increase. Is there any update on what is the possible news flow in terms of, I don't know if it's feasible or not in this goal, but any update on the order flow would be appreciated. And very last, another general question, because if we look around what happened in the past few months, it seems the demand for defense propulsion is only growing more than what you expected at the beginning. Okay, the path is long, so you needed to build up the plant, but am I right in assuming that the final demand is I don't know, significantly or in any case higher than what you assumed when you launched the right issue.

Okay.

The purchase of land in the US was finalized on the very first few days of April. So it actually went outside the first quarter, but we expensed a few millions there. And therefore, there is a little bit less in the first quarter than we had anticipated, but just because of timing. An acceleration of CapEx, I don't know. We are progressing as we expect. On one side, we look at the CapEx. On the other side, we look at the progress of firm orders on the U.S. side. Therefore, we try to keep these two things in balance, so not to overcommit on CapEx too early. But at the same time, we need to be able to deliver any customer requests. So that's why we have started to purchase the land, order the equipment, and so on.

The amount for the year you asked for, we have planned something around 90 million overall, out of which two-thirds related to

There are today in backlog more orders than we had anticipated just six months ago or a year ago. Every now and then more orders are coming, in particular on the Aster 30 side from Europe, maybe less so on Camiar, which is a bit more long-term, but the volumes on Aster are expected to grow. The process by which we get the orders, as I've mentioned to you many times, is very fuzzy, so very difficult to predict because it comes from different countries within Europe. We are a supplier, so we don't have visibility over what the final customers decide. We may have some on the Italian customer, but the Italian customer is comparatively small within Europe. But there is no doubt, to answer your question, that there is an expectation for for more orders from NDEA exceeding our earlier expectations. In the US, if I compare the view of when we presented the plan in September, lots of things changed. When we presented our plan in September, the war in Iran was non-existing. Therefore, you know, we have to take necessarily into account that a substantial consumption of the missile stockpile was actually done in the course of the last few months, and this inevitably will further grow demand for the future beyond our expectations. The difficulty we have is getting precisely analytical on how much this will be and when, because it's not yet completely factored in. The process is long because it goes in the U.S. from the Congress realizing that they have to invest more in procurement of weapons than the different services, Army, Navy, Air Force, to to define exactly what they need, and then the primes to receive orders from the end customers, and then we, as suppliers, receive orders from the primes, taking into account that we will be a second source of production, we will not be the main source of production. Therefore, we are going step by step along this complex path. But to answer your question, there is no doubt that there is an expectation for volume upside with respect to what we envision in September. And I believe then we will try to be more precise as time goes by.

Thank you, Giulio.

The next question comes from Gabriele Gambarova with Intesa San Paolo. Please go ahead.

Yes, good evening. Thanks for taking my questions. Back in March, you said that there were some clients, let's say, with whom you were holding talks because there was the idea that they could, let's say, exploit the existing capacity in Italy in order to source solid rocket motors even before. the opening of the new US facility. I was wondering if you have any update on this front. And the second question is on the guidance for revenues. If I factor in the past 19%, you recorded in the first quarter, it comes out that in the next three quarters, Revenues should stay flat or grow by 6%. So any comment, any call on this would be helpful. And last, sorry, but I totally missed the level of capex. Martino asked for the Q1 because the line is very bad. I'm sorry.

So first of all, on the story of leveraging Italian capacity, what you are saying is right. In the course of the first quarter, we received a second order for a second product from the U.S. Army, for the development of a second product for the U.S. Army, to be manufactured in Italy, not in the U.S. And we will also receive requests for arranging, at some point in the future, the production rates of the two products that they have requested us to develop. And all of which will be manufactured in Italy. So that is definitely something interesting because it allows us to start to do work for US customers from Italy while the plant is being constructed essentially. Then the US Army has also ask if in the future they could leverage both the Italian and the US facility for the needs and of course we have made ourselves available for that. So on this basis I cannot exclude that also other customers other than the US Army may want to do the same. So start using European capacity and then as soon as the US capacity is available use that as well, okay? And this is, allow me to say a little bit, our advantage. The fact that we can use both a European capacity and a future US capacity is an advantage, maybe, versus other players, such as, for example, new startups and so on. And therefore, we will try to leverage this advantage. The guidance, on the guidance. The guidance, for the time being, will keep the one we have. We do not have sufficiently precise information other than the sharing of expectations for upside, which are still generic in nature. We don't have sufficiently precise information for us to raise the guidance 26. Therefore, we are cautious in keeping it as it is, but as I already commented a month ago, it is clear that the scenario calls for a significant upside with respect to what we had foreseen six or seven months ago. Now, when this upside is expected to materialize precisely, and how much is expected to materialize precisely, this is a bit difficult to forecast since, you know, the conflicts are still ongoing.

uh we have the iran war still unresolved and so it's a bit difficult for us to predict any in any more precise fashion we have incurred 4 million overall because as judo said the the u.s project was envisaging the land purchasing the land purchase in March, but then at the end we signed the contract in April. So it was just a little postponement.

Okay, thank you. Thank you very much. If I can make a follow-on on the second contract you got in the first quarter exploiting the Italian capacity, do you have in mind a time for the start of production even directionally.

I don't have it on top of my mind, but if you think about the fact that with the first product of the U.S. Army, we already are in production. We started in summer 2024. If everything goes well, we should be able to deliver the first item for production within 18 months, 24 months max, which is a very fast So the approach used by US Army is extremely fast, simplifies the development processes to make sure that they reach production as quickly as possible.

Okay, very clear. Thank you. Thank you, Giulio.

The next question comes from Andrea Bonfa with Avancatros. Please go ahead.

Hi. Good evening to everybody. Most of my questions are being answered. I got a curiosity. When is the new P160 engine being, let's say, utilized in a launch? Because it seems that there is no official deadline for that. You can comment on that. Thank you very much.

So it's Normally, it should be this summer on IAM 6. So, the way we is that it's set to fly on IAM 6-4 first, and later in time, we will introduce it in legacy. Okay? So, it should be this summer on IAM 6-4.

Okay. So, the line is pulled. So, if I'm so correct, this summer might be used in the IAM 6-4. Is that correct?

Yes. Yes, we have a lot of manufacturers, something like 25, 26. So we have that in stock.

Okay, thank you very much.

The next question comes from Chloe Lemarie with Jefferies. Please go ahead. Please click on the continue on the bottom of the pop-up window. Thank you.

Thank you for taking my question. The first one would actually be on MBDA, which announced recently plans to increase production by 40% in 2026. I was wondering if you were seeing orders from them mounting to roughly that level of growth The second one, and I'm aware it may be difficult for you to comment, but have you had any recent discussion with Leonardo following the change in management on what they intend to do with the remaining stake in the company? And last one, on the Q1 margin expansion for the non-Italian, for the non-U.S. side of the business, could you maybe share what were the key drivers between growth and defense? And I suspect some volume came away in the launch of business, please. Thank you.

So regarding NBDA, we definitely are raising the volumes of deliveries for every year this year, maybe more so on a step 30 than on time yet. And we will do the same next year as well. So we are on a path to essentially doubling the volumes for them in a matter of a few years. So we're just along this path and we are committed to them to continue to grow in production rates and not only this year, but also next year and the following year and so on. So Leonardo, Leonardo, yes, of course we have met. I know the CEO very well. We have met, we know each other. uh he has just started of course he's not new to the company he knows the company extremely well i don't know what the strategies will be regarding his share and so on i think he also needs to have sufficient time to make up his mind as to what he wants to do with the strategy of the company but he's obviously well aware of the situation keep in mind that he was formerly the chief commercial officer of mbda so he knows One part of the business, you know, that's really well. And we will see. Then we have new directors from Leonardo who are doing the boards. And we have started with the first quarter board today. So we'll see if the discussion will be ongoing. By the way, on the sale of their shares, I mean, this is not a transaction that takes place with the company. It's maybe with Leonardo and someone else, not with the company. So I may not necessarily be involved. Regarding the margin expansion, we don't report margins on the single business lines because as you know, some of these business lines relate to one or two customers. So we don't want to disclose customer specific margins for commercial sensitivity. The margin expansion, for production activities, a direct function of volumes. So as we grow in volumes, we expect to improve the margins. While in development activity, margin is not necessarily linked to the volume of activity. Therefore, we believe that given the needs we have in the business, which is partly production, partly development, it will take some time to see full margin expansion, but we are on the right path to do it. And as a matter of fact, you already saw some improvements, modest improvements, I have to say, I have to admit, but some improvements on the margin, and we will continue on that path as we committed to in our defense.

Thank you.

The next question comes from Alex Ciarnelli with Sal Moyo & Co. Please go ahead.

Great quarter. Most of my questions have been answered. Just the last one. I think in the past you said part of the strategy is to look at vertical integration. Any call on that? Anything you're doing in there? So just something there. Thanks.

Yeah. So vertical integration will be yet another step. to be taken care of once we have more certainty around the long-term orders. We also explained in our previous calls that we need more investment into the vertical integration also as a function of the orders we get, but also as a function of the type of government support that we might have. The government in the U.S. is calling for the urgent need to further consolidate the supply chain at all levels between tier 1, tier 2, tier 3 suppliers, and we are more than happy to do so. But if this were to be the case, then we need significantly more funding. Now, as you know, we had already anticipated for the possibility of adding to raise additional capital, and if we will see the opportunity to invest with a return, we will. But we would also like to have, together with more equity, perhaps more government funding to support vertical integration. As a matter of fact, the U.S. government has put some money available to support vertical integration within the supply chain because they understand very well that the primes and even the tier one suppliers like us, we can commit to triple or quadruple the volumes, why not, we tell you that we will do it, but if there is one supplier who is critical and is not moving, then we will stay with low volumes. Therefore, it is clear that this topic will be particularly relevant for the future, but we also have to have the proper funding to do it, because

Are there any more questions?

Not on my side, thank you.

The next question is a follow-up from Gabriele Gambarova with Intesa San Paolo. Please go ahead.

Yes, just a couple of questions more from my side. I was wondering if you can tell me on space and launchers if you saw any movement in pricing. Even directionally, of course. And then the last one is on the 90 billion loan that Europe approved to support Ukraine. I know you are not a tier one, you are not MBDA, but your view on this in terms of effectors in terms of interception missile. Do you think that this could help export of sales of after missiles further? Thank you.

So, let me start from the story of the space launches. You know, what I've seen in the last few months is that everywhere I go, they come to me and they ask for more for more flight rates, right? So in particular with the European Space Agency, my question to them was, hey, why didn't you invest more at the last ministerial conference to increase the flight rate? Whereas at the last ministerial conference, a lot of money was invested to attempt to develop so many different rockets around Europe and so on. I think the system in Europe is realizing that developing an entirely new rocket is a lengthy process, and we never solve the problems of the near-term demand. So I think European member states are realizing that they need to invest more in what they have, which is mainly Ariane and Vega, end of the story, to secure flight rates to fulfill their demand. Then, entertaining development projects to create new rockets It's an interesting effort. We have reported to you the advancements of our latest technology. It's all very good, but it doesn't solve the problem of getting stuff to space tomorrow. So what I anticipate and I hope the European states will do, they will hopefully converge again into funding more capacity expansion for Ariane and Vega today, their armored flight planes. because this is the only way to respond to undoubtedly an increase in demand within Europe. Then, on the story of the 90 billion for defense, I was called in a meeting by the European Commissioner for Space and Defense, along with all the industries for missile manufacturing across Europe, essentially to say, okay, we have this 90 billion, how do we spend it, right? But we are still at the point where, you know, you get together in a room, there is all the industry in the world, the institutions, but we still need to decide where to invest the money and on which products. And the problem is that all across Europe, as you know, there are different types of products being used by different countries. Some countries procure products from the US, some have their own products, some have other products. So it's a very complex situation. So I think Europe lacks a central procurement policy versus weaponry that in these cases we unfortunately delay decision making on increasing volumes on one platform or the other because there is the money on the table, there is everything, but everyone has a different as a different requirement, as a different product. Moreover, I believe that these 90 billion will likely become debts for many of the countries. So I don't know how each country will deal with that. So all I can tell you is that it is clear what you say is right. It resonates with what I heard, but it's still in the main thing.

Thank you, Giulio. Thank you very much.

The next question is a follow-up from Martino D'Ambrogi with Equita. Please go ahead.

Thank you. Focusing on the energy costs, which is mentioned as a potential risk, although maybe it's only temporary, but I was wondering, number one, what was the impact in Q1, which is mentioned as a limited impact? If you're Best estimate today is still for two, two and a half million for the full year. And if you already started, as a third question, if you already started negotiations to revise the price because of the energy cost increase. Thank you.

So the energy price is anything but stable at the moment. It's difficult to forecast what the situation will be for the rest of the year. we have focused our attention to decrease the electricity and steam consumption to the least, okay? And in fact, we achieved one very important result. We pretty much had the same consumption in megawatt hour we had last year, but we manufactured something like 19% more. So in terms of the efficiency, in delivering output with the same amount of energy, we did a great job. And then, of course, the price of natural gas, which we procured for generating steam and so on, has unfortunately increased by more than 20% in March, maybe by 30%. However, on the first quarter, you don't see much of an impact because it was only in March. Now, if this price continues to stay till the end of the year, we might have an impact of about one or two million between now and the year end. But God knows what happens between now and the year end. It may go down again to reasonable levels. We just don't know. And what's happening in the Strait of Hormuz is at the very core of this issue. So I don't know whether the gas price goes up to 100 or what. I have no idea at the moment. We have attempted to see whether we could buy any options to turn the price of gas, but at this point in time, immediately after this crisis, it's impossible to buy an affordable option to do that. We could do that, but the option would be so expensive that it would offset the benefit.

And the idea to negotiate, renegotiate with your main customers, is it possible or... It's very difficult.

See if you would, Marchino, because this is hopefully a near-term effect. Hopefully it's not a new normal. So they will tell you, okay, but we are facing the same situation. Let's see what happens in six months. Let's discuss it. Of course, if this plan were to endure for too many months, you are right. We shall go back and discuss and negotiate. But we cannot try to renegotiate a contract every time there is a spike in an energy price. As I told you, we're doing a great job at limiting consumption, which I'm very proud of because that comes as no need for external discussions with customers. And it's, by the way, always our duty to try and limit consumption anyway.

Okay, thank you.

For any further questions, please click on the Q&A icon on the left side of your screen or star one on your telephone. Gentlemen, there are no more questions registered at this time.

Thank you. Thank you, everyone.

Ladies and gentlemen, thank you for joining the conference. It is now over. You may disconnect your devices. Thank you.