Aena Sme S.A Unsp/Adr

Hello and welcome to the ANM First Half 2025 results presentation. Online subbing plays on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, press star one again. Now, I would like to turn the call over to Carlos Callego, Head of Impressor Relations.

The floor is yours.

Thank you, Mark. Good afternoon, everyone, and welcome to our first half 2025 results presentation. This is Carlos Gallego speaking, head of IR. It's a real pleasure being with all of you today. Our chairman and chief executive officer, Mauricio Lucena, will host the call together with Ignacio Castejón, our CFO, and myself. We are going to cover the main topics explained in the results presentation, and we'll finish with a Q&A session. In this sense, I would like to remind you that in order to meet the time schedule for the call, I would be grateful if you could ask only one question, press speaker. Without further ado, I give the floor to Mauricio Fena. Thank you.

Thank you very much, Carlos. Good afternoon, everybody. And thank you for joining us to go through our first half 2025 results presentation. I would like to start just saying that we are quite happy with the financial results. I think that they reflect that the company is functioning very well. And of course, I also would like to underline that we are also functioning very well operationally. I mean, from an operation standpoint, because you know that now the traffic is at record levels. So it means that our operation is quite stressful, but I think that we are responding very, very well. Okay, I will, as usual, I will go over the key highlights of the period, and afterwards, I will give the floor to our CFO, Ignacio Castejón, and as always, we'll conclude the conference call with a Q&A session. I will start with traffic. You know that globally, AENA group passenger volume grew by 4.7% year on year, reaching almost 181 million passengers. In Spain, the figure was 150.6 million passengers, which represents a 4.5% increase. And I think that the important thing here is that despite the obvious deceleration of traffic growth in these last months, we are very confident with our traffic guidance. for 2025. Of course, I'm now referring to Spain. So it means that we clearly maintain our traffic guidance for 2025, which you know is a growth of 3.4% year-on-year. This means that we are quite sanguine in the sense that we consider that the traffic will continue, let's say, performing satisfactorily, if we can find other words. But I would like to make this very clear that we stick to our traffic guidance that we made public. I think it was... In February, a few months ago. Okay, at Luton, the traffic growth was or has been 5.1%, and in Brazil, INV, 5.7%, and BOAB. Okay. 6.7% increase, which are, I would say, figures that confirm the good evolution, the good performance of traffic, air traffic in the world. Of course, each country is a singular case, but in the countries where IANA is present, we are quite satisfied with traffic evolution. Now I move to the financial performance. Total revenue for the first half of 2025 reached 3 billion euros, which is a beautiful figure. And this meant an increase of 9.1% year-on-year. And the EBITDA rose by 8.8%. So the EBITDA margin stood at 56.5%. I would like that you take into account when you analyze our global EBITDA margin, that first of all, of course it is flattish compared to the same period in 2024, but you should bear in mind the effect of the IFRIC 12 applicable to our Brazilian assets. It affects our EBITDA margin, so it means that without this effect, the EBITDA margin in Brazil and of course globally would have been a little bit higher. All in all, this meant that the net profit for the first half of the year reached €894 million, with a growth of 10.5%. You know, because we've announced it this morning, that yesterday the board of directors of AENA approved our tariff proposal to be applied from March next year, as usual. And let me be clear, despite of the usual sophisms of the airlines, you know that this increase, that the increase we have proposed is very mathematic and it's due to principally the K factor and also significantly to the application of the P index. The K factor, it simply reflects that we have a dilution that comes from 2024 and the formula of our regulation, it is very clear you then recover this dilution in 2026. You know that in other cases, in other years, the effect has been the contrary. So that is why I'm saying that I cannot understand the sophisms of the airlines. They know our rules and the regulation very well. And, well, it's the kind of noise that I really don't like because for our part, for AENA's part, this is an honest proposal that is not, I mean, it's not discretional. It just comes from a very clear formula. Well, having said that, I move to the commercial activity. On commercial, total sales grew by 9.9%, more than twice the rate of passenger traffic growth. And on a per passenger, which is a very important ratio basis, it means that it increased by 5.2%. Pure retail activities continue to perform strongly and I would like simply to highlight the very good performance of VIP services and mobility services. They are really performing very well and our ambition is that in relative terms they grow in the future. This is what I'm sure will happen and it means that it's a very promising business line. Regarding the tenders awarded in the first half of 2025 by AENA, In specialty shops, the minimum annual guaranteed rents in 2025 and 2026 are 25% and 35% respectively higher than in 2024. And in the case of food and beverage, the tenders awarded, they reflect growth rates of 8%. 17% respectively. On real estate, I simply would like to highlight the opening of the Spain's largest hangar in Madrid and the awarding of the so-called 120 plot in Barcelona for logistic uses. This just means that we have finally opened this new era in which We will try to strengthen our real estate business in the case of these very valuable assets that we have in our main airports. In the case of the international business, it has contributed with 425 million euros to the consolidated revenue of AENA. If we exclude again the IFRIC effect, the contribution would have been or would be 346 million euros, and the EBITDA amounted to 196 million euros. Regarding CAPEX in the Spanish network, a total of 427 million euros in additional investments for the rest of the DORA2 period have been approved, of which purely 351 million euros are regulated. So the rest is commercial, but you know that they are very linked to each other. And finally, We have published an important novelty this morning. We have restated 2024 annual accounts to increase the deferred tax asset by a considerable amount of 288 million euros. This adjustment simply arises from a situation of double taxation related to the IPO of the 49% of Aena's shares back in 2015. But Ignacio Castejón will give you the concrete details shortly. And on the other hand, you know that on June 19th, we successfully executed our promise of the stock split, and our aim is very simple. We want to improve the liquidity of INS shares, and, well, we still need a wider horizon for to assess the impact, but it is very clear that in no case this could be a negative effect for NINS shares. So in the future, we will share with you the results of our analysis, but we need still a little bit more of time. And as of June 13th, excuse me, Our financial leverage stood at 1.64 times net financial debt to EBITDA, and this ratio confirms what you know very well, which is the strong financial health of the company, both in absolute and relative terms. This is the end of my brief presentation and we'll have time to interact in the Q&A session. And now I give the floor to Ignacio Castejón, AENA CFO. Thank you very much.

Thank you very much, Mauricio. Hello, everyone. This is Ignacio. I'll go through some further details. relating to the traffic and financial performance of the company for the first six months of this year. If we move to slide six on traffic, our chairman and CEO already commented the evolution in Spain and across the group. Generally, looking more closely to the trends in Spain, international traffic grew by 6.5%, while the domestic traffic rose by 0.0%. Generally, the assumptions that we took into consideration when the guidance was developed and the material change, the slowdown in the domestic markets were already anticipated at that moment in time. As a result of these trends, the share of international traffic has risen from 67.5% to 68.8% from 2024 to 2025. European traffic accounted for 85.7% of the total international traffic, slightly below compared to the previous year. The reason for that is the outstanding performance of some small markets in long-haul destinations such as Africa and Asia, where we have seen growths of 49% and 25% year-on-year, respectively. If we look at our largest markets, the growth for the UK has been 4.5%, Germany 3.6%, France 5.3%, and Italy stood out with a particular robust growth of 12%. In terms of airport performance across Spain, Madrid grew by 3%, Barcelona 4.2%, Palma 2.2%, Alicante 10.3%, and Malaga 7.8%. Finally, regarding our carriers, our airlines, the top 10 carriers handled nearly 109 million passengers, 3.9% more than in the first half of 2024, and low-cost traffic rose by 5.2%, led by EasyJet with 76% growth and Ryanair 6.3% growth. Let's move to the financial performance slides of the key highlight section. I'm referring to slides 6, 7, and 8. If we look at slide six, total revenue, as mentioned by our chairman, grew by 9.1% compared to the first half of 2024 year. Basically, what are the main reasons? The main reasons are the positive evolution of passenger traffic. the regulated traffic growth for the months of January and February, the continued improvement in commercial activity, and also the contribution from construction services income or revenues under IFRIC 12, which added an increase of a net increase, sorry, of 51 million. Excluding the IFRIC 12 effect, The revenue growth for the consolidated group could have been 7.3%. Basically, we go business by business. Ordinary IRO revenue increased by 6.2%, basically amounting to 1.5 billion euros. with being the dilution for these first six months of the year, 43.7 million, compared to dilution of the previous year that was 67.9 million euros. With respect to ordinary commercial real estate and international revenue, all these business segments grow double digits, 10.2%, 12.1%, and 14.6% respectively. So very healthy growth rates for all the business segments of the company, as the chairman was highlighting at the beginning of his opening remarks. Let's go to slide 7. On the cost side, total peer operating expenses at group level grow by 9.3%, totaling 1.3 billion euros, with personal expenses or staff expenses increasing by 10.6%. The IFRIC 12 accounting rules also increase. had an impact because we have to record not only the income but also the expenses following that accounting rule. So we had also a negative impact in our expenses of 51 million euros. Excluding this impact, the increase of our total operating expenses would have been 5.2%. When we look at other operating expenses, they grew at 5.3%, reaching 1,063 million euros. The increase was driven by personal costs, as I was advancing earlier. reflecting higher payrolls, additional head counts that the company is adding, and also the restructuring of our variable retribution schemes. Also explained by the performance of our electricity costs, maintenance costs, security services, and also the increases in the OPEX related to the activities that we perform internally on the commercial side, such as VIP services and parking. In slide 20 and 21, you will find a higher detail with respect to our other operating expenses. The growth of other operating expenses, excluding the electricity bill, was 2.9% below traffic growth, and on a passenger basis declined by 1.5%, so very good performance on the cost side. Let's go to slide 8, and let's have a look at EBITDA that reached $1.7 billion, representing an increase of 8.8% compared to the same period of the previous year. If we exclude the effect of IFRIC-12, the EBITDA margin improved to 58% from 57.8%. In the previous year, I will repeat myself, excluding the IFIC-12 effect. All in all, net profit rose to €893.8 million and a double-digit increase of 10.5%, reflecting the solid performance and continued financial discipline of the company. Net cash generated from operating activities increased by 4.2%. confirming the group's capacity to generate cash. Please note that last year, tax outflows were particularly low because of the application of the tax credits resulting from the commercial losses coming from the DF7 that were taken into account in the first half of 2024. Net financial debt to EBITDA ratio stood at 1.64, as mentioned by our chairman, compared to 1.57 recorded in the previous year, recorded in the first half of 2024. In the slide 11, we have some information related to the restatement of our 2024 financial statements, as mentioned by Mauricio. This is coming from the recognition of a deferred tax asset. This adjustment is related to a situation of double taxation related to the IPO of the company back in 2015. In more detail or specifically, At that moment in time, the company was unable to revalue the assets contributed by ENAIRE, our parent company, at market value. So those assets were incorporated into AENA's balance sheet at book value, not at market value. ENAIRE, as a result of the IPO, had a capital gain that was taxed at the ENAIRE level. As a result of that taxation, as that potential double taxation, the company thinks that it's entitled to recover that double taxation, and that's why we have recorded this asset amounting to $288 million, as mentioned by our chairman. This amount will be gradually applied as the company files its corporate income tax returns in the future. Please note that we have already filed some tax applications for the period up to 2024. So hopefully we should hear from the tax authorities in the next six to nine months. Let's move forward to the commercial business of the company. I'm referring to a slide 15. Ordinary and commercial and real estate revenue of the group grow by 10.3% to 980 million euros, excluding the straight line and other adjustments. In fact, the growth of the business was higher, amounting to 12.5% to 948 million euros. The fixed and variable rents had a year-on-year growth of 15.8%, a very high figure comparing to traffic growth in the Spanish network. In slide 17 and 18, we can go into further detail with respect to the commercial performance of AENA in Spain. As mentioned by our chairman, the total commercial sales grow by circa 10%, doubling the traffic growth of the period. Generally, this growth was driven mainly by the progress in refurbishment and remodeling works in our commercial areas, especially in the duty-free business in Madrid and Barcelona Airport, but also in Palma, where we are making significant progress. the arrival of new brands that feed our passenger profile, the strong performance of mobility related services and the continuing increasing demand for VIP services together with the progress, the successful progress of our real estate initiatives. If we look at the line by line of our commercial activities or the most important lines, sorry, we'll see that, for example, in the case of the duty-free businesses, sales grow by 18% and variable rents grow by 16.3% to 182 million euros. We have seen that after the material progress in Palma de Mallorca airport, We have been able to deliver a growth in June, only in June, of 11%, being the main reason behind this growth, the partial reopening of the walk-through store in that airport. We are also seeing important progress in the Canary Islands, where the contract, the lot for that part of the network exceeded the minimum annual guaranteed rents for this business line. And also, I would like to highlight that in the Mediterranean area, we were very close also to exceed the minimum annual guaranteed rents, and we were just 2.2% below the minimum annual guaranteed rents. With respect to the other activities, I would like to highlight the continuing increase in the VIP services penetration rates and income per passenger. which confirm the demand from our passengers with respect to this type of activity. With respect to car rental activity, we are not only seeing growth coming from the new contract, we are also seeing growth in activity coming from more contracts and higher prices being applied by our car rental operators. Let's move to slide 23. Two, where we can have a look at the debt breakdown of the company. I would like to send a message with all of you that our debt at fixed rate is at 77%, which basically is protecting, has been protecting, sorry, the company from the movement coming from the monetary policy of central banks. Now that we are seeing some decrease, we'll try to benefit from that situation, managing our debt accordingly. With respect to our international platform, I would like to stop to mention a couple of things related to Luton BOAB. With respect to Luton, you will have seen in our financial information shared with the markets that we have recorded an extraordinary revenue related to the compensation that we are entitled to receive from our insurance companies that has amounted to around 31 million euros. This compensation is positively contributing to our EBITDA and therefore EBITDA in Luton is positively affected by this contribution. With respect to BOAB, or B-O-A-B in English, I would like to highlight the significant increase in capex spent in this asset. And this is the result of basically the company having awarded the construction contracts at the end of 2024, early 2025. and having the construction activity ramping up in this asset so that we can meet the deadline established in the concession agreement signed with the Brazilian authorities. And I think that would be all from my end. So we could continue with the Q&A as planned for this meeting.

Thank you very much.

We will now begin the question and answer session.

At this time, if you would like to ask a question, see the press bar followed by the number one on your telephone keypad. And your first question comes from the line of Tobias Prome with Bird Spain. Tobias, please go ahead.

Hello. Thank you for taking my question. Just a question on traffic growth. Obviously, H1, 4.5% in the Spain network. That would sort of... in H2 to hit your guide 3.4%. I was just wondering, what are your concerns? Do you see anything internationally, maybe a slowdown from certain regions beyond your Spanish network, beyond domestic Spain? And any chance of increasing the guide maybe in the next quarter?

Thank you. Thank you, Tobias.

We couldn't follow your whole question completely. I understand you are referring to the second part of the year with respect to our traffic guidance. We are expecting an impact coming from the international markets. I think I could repeat the message shared by the chairman at the beginning of the call. At this moment in time, we are not changing the guidance provided back in February. The slowdown that we are seeing on the domestic market is something that we were anticipating. There are some drivers behind that slowdown related to specific domestic matters. So at this moment in time, that's what we can share with you. Of course, the company will follow what is happening internationally, and that might have an impact in the guidance for the company. And if we decide to do it, we will share it with all of you.

Thank you. Thank you. And your next question comes from the line of Luis Prieto with Kepler.

Luis, please go ahead.

Good afternoon. Yeah, Luis Prieto here. Thanks, everyone, for the call. I just had one question, and it is with the 2026 target or guidance that you provided regarding international operations, I just wanted to know what the market is like at present for international opportunities, acquisitions or developments, whatever.

Thank you. Hello.

This is Mauricio Lucena speaking. I'll take this question. Well, I think that this is, I mean, when you compare the airport market in terms of M&A opportunities, I think that you, and you compare it with other or to other markets, I think that you reach the conclusion that it's not a very wide market. I mean, I think that you probably know many of the international opportunities exactly at the same time that they are sent to the AENA's team. I mean that they are usually well-known. So, Luis, the only thing I can say is that We analyze everything, every opportunity. Of course, naturally, we tend naturally to specific markets because of cultural and historical reasons. But believe me, we analyze everything. And I hope that after, in my case, seven years at the company, I hope that you all have... crystal clear that we only move and we only propose a firm offer when all the qualities or all the aspects of the opportunity are considered adequate by AENA and it means the quality, the intrinsic quality of the asset considered, the country, the regulation, and of course, very important, the price. We could add as well that you know that our strong preference is control participation. Airports in which AENA taking into account its size and our reputation in airports in which we can control the management and the daily operation of the airport. So this is all that I can say. I think it's the same thing I always try to explain, but I hope that at least I have explained it a little bit different compared to other occasions. Thank you.

Thanks a lot for that, Marici. And your next question comes from the line of Christian Edelk.

with UBS. Christian, please go ahead.

Hi, thank you very much for taking my questions. The first one on domestic Spanish traffic on the slowdown, if I could please come back. Could you elaborate on the drivers behind this slowdown? And equally, so I don't know if you could tell us a bit your views on the second half and next year in terms of domestic traffic or what's in your budget or how you're thinking about it directionally? Secondly, a question on duty-free. The canneries' valuable rents have exceeded the mags for a while now. If I look at your slide 32, it looks like in Q2, the other airports are not far from this either. So my question would be, could you give us a bit more color on Madrid, Barcelona, When do you expect the variable rents to exceed the max? Can this already be in Q3? And how you think about the next years? And the last one, if I may, in the press, we are seeing plans for IANA building new terminals in a few airports. And I understand we are at an early stage, but just Just ballpark or directionally, could you help us think about the incremental airside space that comes together with this new terminal? So from the commercial point of view or incremental airside commercial space versus the current space in the airports, any color you could give us there.

Thank you.

Christian, I just would like to partially answer your first question, and partially, because it will be complemented by Ignacio. Let's, for a moment, just put aside Brazil and the UK. I think that the evolution of the traffic in these countries is... It's very good. I mean, you just can review the figures and we are happy with the evolution of the traffic growth there. So I now will focus on Spain. And the only thing I would like to say is that when we elaborated our forecast for the traffic growth in Spain for the whole year, We clearly expected what is at present happening. I mean, we knew or we didn't know exactly, but we forecasted that the beginning of the year would be quite strong because you know that we have the airlines planning and we have a very competent team that follows everything that arises in terms of novelties regarding the evolution of traffic. And at that moment, when we elaborated our forecast, we also anticipated that the summer would be something similar to what we are witnessing. So we are not surprised at all. Of course, if you descend to the details, you could, I mean, the precision, it's always questionable in the sense that, of course, we could anticipate the trends, but that is why I wanted to highlight, to underline, that we are still very comfortable with the traffic forecast for Spain for the whole year, that, you know, it's 3.4%. But Ignacio will complement my explanation. Thank you.

Thank you, Mauricio. Hi, Cristian. I think the explanation from the chairman has been very complete. I could only add some potential drivers that could be explaining what's happening, and Christian, that I'm sure you also were. I think the slowdown that we are seeing is very likely a phase of stabilization. following several years of a strong traffic growth post-COVID recovery. With respect to domestic traffic, I think in 2023, we were already surpassing pre-COVID levels. So the comparison base was already very high back in 2023. If we look at cost prices in the Spanish market related to travel, tourism, what we are seeing is that there might be a situation in which prices are increasing in relative terms more for the domestic services, for domestic trips or domestic leisure, more than international prices. And this might be one of the reasons for the impact. We are also seeing that the competition with respect to high speed rail is intensifying. There are operators with lower prices in some of our routes. That may also be another thing to take into account. Finally, for domestic traffic, we are seeing some reorganization of fleets and domestic operations in some of our carriers. that are moving fleet and activity from one brand to another brand. And that might be affecting domestic traffic while all those adjustments are taking place. So it might be the result of all this, the explanation behind. Most of these elements were taken into account, as explained by Maurici earlier, when we're putting together our budget and our guidance. And let's see how the rest of the year evolves. But we are hopeful that we'll be able to meet the guidance. With respect to your second question, if I may, I will cover them very quickly because our goal, Christian, so that all of you can have a can participate in the meeting was having just one question per house. I will cover your second and three questions very quickly. With respect to duty-free, as you mentioned, Canary, as we are above, the minimum guaranteed rents, and I would like to highlight that in the case of the South and the Mediterranean coast, we are very close to going beyond the minimum guaranteed rents, taking into account, of course, the first six months numbers. With respect to other regions of the country, the Baleares lot, the Mallorca, the Palma lot has been impacted by the construction activities and the refurbishment of the airport. As I mentioned in my notes at the beginning of the call, June sales have been very positive. We have seen significant growth. So we should see there an improvement. And with respect to Madrid and Catalonia, We have managed to finish most of the construction activity related to the duty-free activity there. So hopefully in the next months, we'll have better information with respect to our capacity to go beyond the max in the rest of the years of the contract with our duty-free providers. On the DORA 3 construction activity, the company has been providing information through press releases about some of our projects. That's the only information that we can share so far. Basically, we have identified some of the main projects in some of the, I would say, the assets and very important assets for the company. And so far, that's the info that we can share with all of you, Christian.

Thank you very much. Apologies for the extra questions. Thank you.

Yeah, and Christian, concerning your second question, I would like to... publicly recognized a very good job that the new, well, not that new, but the team that is around Xavier Rusiñol, the current CEO of Avolta, of Dufri, because I think he was appointed three years ago. And you know that AENA... and Dufri had some important disagreements because we were very upset and very angry as well when they promoted the approval of the DF7. So that was a hard moment and it's true that the relationship with their chairman has been always very cordial, very polite, but when Xavier Rassournol joined the company, it coincided with the preparation on AENA's side of the new tender, and we are very happy both with the proposal of The proposals that they sent to AENA, both in terms of design, of course, financially, et cetera, but they have demonstrated that apart from the strong growth of traffic, that they are really taking advantage of all the spaces available that they are working on at AENA. And I think it deserves public recognition because they are doing a very good job. And, of course, it's profitable both for AENA and for Volta.

And your next question comes from the line of Elodie Rall with JP Morgan. Elodie, please go ahead.

Hi, good afternoon. Thanks for taking my question. I'll have one on CapEx, if I may. So you announced 427 million of extra CapEx for Dora 2. I think you had communicated already on the 351 million regulated part. So what drove the additional CapEx that you've announced today to 427 million? And could you give us also the phasing of this CAPEX between now, I mean, 25, the remaining of this year, and 26, and where we should have our expectations for CAPEX in total as well, if that's possible, for the next two years? Thanks very much.

Thank you, Eloi. This is Ignacio speaking. I think the amount is all part of the same CAPEX analysis and assessment that was made earlier by the company. So some weeks ago, we disclosed information related to the regulated CAPEX because it was the most important piece. But as part of that amount, we were also taking into account that the company would also be executing unregulated CAPEX in order to complement that regulated CAPEX in order to basically being able to deliver other projects that were necessary or a consequence of that regulated CAPEX. And also because of our regulation, part of our CAPEX is also unregulated because of the accounting rules or regulatory rules of the company. So it's not a change versus what we announced. It's just a complement of what we announced some weeks ago. Sorry for the confusion, Elodie, on that matter, if there was any. With respect to the phasing, I think given that we are in June, most of the phasing, of course, will happen during the last year and a half of DORA 2, as mentioned by the chairman, and most of the CAPEX execution works will happen in 2026. We'll see if we can partially deliver some of those items through 2025, through the remaining months of this year.

Thank you, Ellie. Okay, thanks very much.

And your next question comes from the line of Andrew Luddenberg with Barclays.

Andrew, please go ahead.

Oh, hi there. I think I ask this every quarter, but is there any update that you can offer us on the status of negotiations with Luton with regard to the subsequent expansion? Thanks.

Hi, Andrew. This is Ignacio. And thank you for asking every quarter on this topic so that all of us can be coordinated. No real... change to what we disclosed in the previous quarter. As you know, there was the possibility of having a judicial review taking place with respect to the DCO granted. That judicial review will finally happen in the next months. We are still pending to receive some further information. And that's the only real change that I could share with you at this moment in time. Andrew?

So until the judicial review issue is cleared, there's no negotiations to be done with the council, or is that not right?

Is that judicial review of the DCO granted by the secretary office of, yes, by the central government? And I will be, I understand that the timing is 12 months, around 12 months, there might be a hearing in order to analyze the DCO granted. That's the information that we have with respect to Luton. That is a change with respect to what we disclosed last quarter.

Okay. So the whole thing grows out a bit more.

Could get delayed because of this judicial review. You are right. Okay.

Thanks.

And your next question comes from the line of Marcin Woltau with Bank of America London. Marcin, please go ahead.

Yes, thank you. I have just one question. It's regarding the DORA 3 process. So when are you expecting to submit your business plan with all the details of CapEx, tariffs, and RAP? And is it going to be, or the key points, are they going to be shared with the market?

Thank you. Thank you, Marcin. This is Carlos Gallego speaking.

Well, clearly, according to the law, the last, let's say, milestone of this process will be the approval in September 2026 coming from the, let's say, the cabinet, the Spanish cabinet. So we have to run the consultation process with the airlines with the different inputs. And according to the law as well, our proposal has to be delivered in March 2026. Okay.

Very clear. Thank you. Thank you. And your next question comes from the line of Dario Maglioni with Exxon.

Dario, please go ahead.

Hi. Good afternoon. Just one question. What is the latest assumption for the CAPEX for DORA3 when we include the regulated and non-regulated CAPEX?

Thanks.

Dario, your question was about the split between regulated and non-regulated CAPEX for DORA3. And the total amount, the total amount as well? I think that at this moment in time, we are not disclosing that information, Dario. I think that is information that we'll be providing once we have gone through all the analysis of DORA3. That will take some months from our side. That will still take some months from our side. Okay.

Thank you. My pleasure.

And your next question comes from the line of Jose Arroyo with Santander. Jose, please go ahead.

Yes, thank you. Good afternoon. I wanted to ask you about the tariff application for next year and your announcement earlier this morning. The increase you are aiming for is 68 cents per passenger, and as you clearly state, the K factor from 2024 represents 45 cents. And there is another 17 cents from the P factor that the CNMC recently approved. So that leaves about, if I'm right, 6 cents per passenger that the press release does not break down for us. And I was curious if within these 6 cents per pack, you may be recognizing your expectation that the next year's studies reflect the P factor the CNMC rejected in the last minute last year. Is this a fair assumption, correct, incorrect? Thank you.

Hi, Jose Manuel. This is Ignacio speaking. It's not a fair assumption. In those other sense, we are taking into account the B factor and other elements related to COVID and costs related to the border controls coming from previous years. So it's totally unrelated to the topic that you were referring to.

Thank you. And your final question comes from the line of Graham Hunt with Jeffrey Scram.

Please go ahead.

Yeah, thank you very much for the question. Just one on the VIP performance, actually. I wondered if you could give a little bit more color there. It's been such a strong division for you within commercial in terms of growth and growth per packs. I just wondered if you could speak to that, where you're seeing that trending over the next – into 2026, and maybe a little bit of color on how you're factoring it into your – campaigns plans for the DORA3 as well.

Thank you.

Hi, Grant.

Thank you for your question. We are really happy with the performance of this business line. I think what we have seen is basically revenue raising 36% year-on-year to 95 million euros and also the income per passenger rising around 30%, so outstanding performance for the whole line. Around 80, a bit more of 80% of that line is explained only by VIP launches. And what we are seeing is that numbers of clients, of users of these services are increasing materially at a much faster and higher growth rate than traffic. For example, number of users have increased around 18% in these first six months of 2025 compared to 2024. And also that this demand from our users is not impacted It's not materially impacted by prices. So also the average ticket that we have been able to get from the business line is increasing. Simultaneously, penetration rates are going up. I think we are slightly above 2%. And we are seeing this trend across all the VIP lounges of the company. So this is something that we are taking into account. We are expanding in every single airport where there is room and we see that there is demand. This activity, and that's what we are planning to do, and the commercial team is assessing as part of the DORA3 future.

Thanks very much. There's no further question at this time. I will now hand it over to Carlos Gallego for closing remarks.

Carlos?

Thank you, Mark. As there are no further questions, I think we can conclude the results presentation. Thank you very much for joining us today, and have a happy summer break, everyone who is taking some time off. Bye.

That concludes today's call. You may now disconnect.