Aena Sme S.A Unsp/Adr

Hello and thank you for standing by. My name is John and I will be your conference operator today. At this time, I would like to welcome everyone to the INA third quarter 2025 resource presentation. All lines have been placed in mute to prevent any background noise. After the speaker 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 to withdraw your question, simply press star one again. I would now like to turn the conference over to Carlos Gallegos, Head of Investor Relations. Please go ahead.

Good afternoon, everyone, and welcome to our nine-month 2025 resource presentation. This is Carlos Gallegos speaking, Head of IR. It's a real pleasure being with all of you today. Our Chairman and CEO, Mauricio Lucena, will host the call, together with Ignacio Castejón, CFO, and myself. As usual, we are going to cover the main topics explained in the resource presentation, and we will finish with a Q&A session. To stay on schedule, please limit each speaker to one question. Without further ado, I give the floor to Mauricio Lucena. Thank you.

Thank you very much, Carlos. Good afternoon, everybody, and thank you for joining us to our nine-month 2025 results presentation. As usual, I will try to go through the key highlights of the period. Then I'll give the floor to our CFO, Ignacio Castejón, Nacho Castejón, And as always, we will conclude the conference call with a Q&A session. I will start with traffic, as usual. As you can see in the information we have conveyed this morning to the market, traffic volume across the AENA group grew by 4.1% year-on-year. In Spain, the increase was 3.9%. And I would like to stress clearly that we do confirm our 2025 traffic guidance of 3.4% year-on-year. So this increase in the first nine months of the current year has confirmed our guidance, in other words. And if I jump to our international activity, In Luton, the increase in the nine first months of the year was 4.8%. In Brazil, in the BOAP, as we call it in Spanish, concession the increase was 5.5% and in ANB the increase was 5.3% in traffic volume. If I move to our financial performance Total revenue in the first nine months of 2025 reached almost 4.8 billion euros, EBITDA 2.9 billion euros, and the EBITDA margin stood at 60.2%. If we exclude the impact of the IFRIC-12, the EBITDA margin would be 61.9%. And net profit reached almost 1.6 billion euros. And in this sense I would like to highlight that the commercial activity really performed very well. Sales grew by 8.7%. And I would like to remind you that the tenders awarded in the first nine months of the current year in specialty shops, they guaranteed minimum annual guaranteed rents in 2025 and 2026 that are 33% and 40% higher than in 2024. And in the case of food and beverage, the growth rates are 19% and 20% respectively. You know as well that AENA has launched the tender for 98% of the food and beverage business in Barcelona. And I would like to say that we are very optimistic on the results, on the eventual results of this tender. And I now move to the real estate business. Total revenue grew by 13.7%. And as you well know, we have launched simultaneously the tender process for the first hotel developments in Madrid and Barcelona airports. And we are also optimistic on the results. And finally, the contribution of the international EBITDA to the consolidated figure was, in these first nine months, €307 million, which represents an increase of 23.3%. However, you know that I don't usually join you for the financial results presentation of the first nine months of the year. And actually, the reason why I have joined you today is because I wanted to be crystal clear on three elements that are very important for AENA and for our organization. financial results presentation and our important messages that I would like to convey to our shareholders, to analysts and in general to investors. So I would like to make a few comments firstly on the ownership of Aena's assets, of Aena's airports. Secondly, on DORA3 and what we expect in principle of DORA3. And thirdly, on dividends and the way forward, let's say. So I will start with... ownership and you know that in the last months there have been too many I would say statements made by some political representatives from some regions in Spain regarding airports owned by AENA we were convinced a few weeks ago that the moment had come to issue a I think it was a very clear communication to the market through La Comisión Nacional de Mercados de Valores, the CNMV. And within this communication, we stated that AENA has been undertaking a very intense advocacy activity, at least since the summer of 2024. I'm completely convinced that the current legal and constitutional framework and, because this is also very important, AENA's shareholder structure, the combination of private and state-owned shareholder structure, both this constitutional framework and our shareholder structure provide a very strong protection to the airport system and specifically to AENA, to our company. And I think that this preservation of the current model is especially important when we have announced, as you know, a very strong volume or very high volume of investment in the coming years. You know that we are going to embark on a period of major investments contained within DORA 3, and you know that this investment that we announced a few weeks ago will culminate in the modernization and the expansion of many Spanish airports, which, aside from AENA, are essential to Spain's economic development in the coming decades. So that's why we are so convinced that this investment is good, both for AENA and both for our country or the country where AENA was born and where AENA has its main activity. So, in other words, I would like to paraphrase a very well-known central banker, And I would like to state that AENA is ready to do whatever it takes to preserve its model and its net asset value. And believe me, the combination of the constitutional framework, our shareholder structure, and our determination will be enough. This is my conviction and I would like to convey it very clearly to the market. Now I move to the second important point, DORA3. You know that on September 18th we announced Our CAPEX proposal for the third DORA, for DORA 3, with a total amount of almost 13 billion euros, of which almost 10 billion euros corresponds to the regulated activity. You know that the aim of the investment related to DORA3 in Spain is to add significant capacity, deliver better service, and comply with regulatory requirements in Spain. And again, I would like to say very clearly that the top management team of AENA that I lead since 2018, I think that deserves credit. very much credit when I say clearly that we expect a technically reasonable WAC for DORA3. In other words, I think that the investment proposed by AENA will be technically reasonable. very well or not very well, reasonably remunerated. This is what I would like to stress in this message because I've read many things and at present I'm completely convinced that that the WACC will be reasonable. We don't ask for anything else than reasonability in the building of the WACC for DORA3 investment by AENA. And thirdly and finally, concerning dividends, you know that our Current payout is 80% of the net profit. And again, I would like to be crystal clear. At this moment, when I look to the future, at this moment in time, and with the information that I have in front of me, I don't see reasons to change our current dividend policy. This is the end of my brief presentation. I now will give the floor to our CFO, to Nacho Castejón. And of course, I am at your disposal to answer any questions at the Q&A session. Thank you very much.

Thank you very much, Mauricio. Hello, everyone. Good afternoon. This is Ignacio speaking. I'll try to be brief so that we have time afterwards for our Q&A session. On traffic, I would like just to share and highlight the important growth, a strong growth of the international traffic in our Spanish platform. international traffic grew by circa 6%, 5.7% in particular, while the domestic traffic remained flat, as all of you know. In this regard, I would like also to remark the important and the positive performance of the long-haul markets. You know that this is a market that is still smaller than our European and our Spanish market, but looking at the growth rates that we are delivering for Africa, Middle East, Far East, and Latin, I'm convinced that this is an important trend and a market that we'll keep working on then. The company recently confirmed the capacity that we are seeing as of today for the winter schedule that happened last week with the information that we have now. And this is around 3.5% growth compared to the latest information that we have for the real seeds delivered in 2024. I'm going to move up directly for the purpose of being conscious of time to cost, because I have read some comments on cost this morning. When I look and I'm referring to slide seven, total operating expenses of the group grew at around 10%. Basically, this has been affected. because the accounting rules that are applicable in Brazil, IFRIC 12. If we were excluding the increase in our cost related to IFRIC 12, that 10% would be around 5%, 5.5% if I am accurate. And when we look at the Spanish network, that I also read some comments this morning, the total operating expenses are growing at 6.6%, reaching 1.5 billion euros. Let's have a short discussion on this item. Mainly the increase is explained by a couple of things. 10.9% rise in personal cost basically is the result of higher payrolls, additional health counts, the improvement of the variable retribution schemes in the company. and a number of other things. This is something that is the result of our collective agreement, our collective scheme, and also adding more people so that we are prepared for Dota 3 and also reacting to the increasing activity that we have seen in the last 24 months of the company. When we look at other operating expenses, that are amounting 996.7 million euros. I would like to share with all of you three things. This is for the first nine months of the year, and I was also having a look at some of your views about the third quarter, and I think it's important that we address your comments. As you know, the third quarter of the year is the most active and the most intense quarter that this company had from a traffic standpoint. Secondly, as we have been sharing with all of you, we are seeing a trend in many of the contracts that we are awarding to our suppliers and providers. That is a trend that is confirming that most of our costs related to security, maintenance, cleaning, PR and services are going up. They are not going down. And this is basically as a consequence of inflation trends, as a consequence of new salary rules applicable in Spain being impacting many of these costs. Also new regulations applicable to INAH and also to our subcontractors. So there is a trend there that is basically impacting us and it's impacting the whole sector and many activities in the country. And finally, there are a couple of things that are affecting the comparison of this quarter with the performance of the other operating costs that we saw in the first six months of this year. Many of you were stating this morning, or some of you, sorry, that the increasing cost in this third quarter was higher than the trend in the first six months. Well, there have been a couple of things explaining why, or there are a couple of things explaining why that has happened. In the first six months of 2024, we recorded a significant provision because of the Chapter 11 of one of the real estate companies that we have operations with. And therefore, the cost increases that we have that year, so in 2024, was material in the first six months of 2024. So when we compare the first six months of 2025, the comparison was a very light increase. The provision, if I remember well, that we marked at that moment in time was circa 15 million euros. On top of that, there have been some costs that in the past we incurred in the first six months of the year, in the first part of the year, that in 2025 are happening in the second part of the year. For example, advertising. That's something that we will incur in the last six months of the current year. Let's move to... commercial that I think is where we have a very good news as I think as usual in the last quarter that we are setting with you and I would like the chairman and CEO have already highlighted the significant growth in sales I would like to share with all of you, more than data that you already have with the presentation, the reasons why we think we are delivering this performance. There are a number of reasons. I think that, first of all, the progress in the remodeling works, refurbishment works, in most of the units awarded to our tenants. We are adding commercial surface. We are adding more and more space, for example, in duty-free. When we awarded the last contract, the current contract of duty-free, we said that we were going to increase the space for this activity, and that's happening. We have added around 10,000 square meters to this business line. The works are progressing. Madrid and Barcelona, we are almost done. We are introducing new business concepts. So as we discussed in the resource presentation back in July, we have more and more hybrid concepts where in the duty-free areas you can have F&B experiences and you can buy other products. We are introducing new brands that are fitting more and more with the passenger profile. We are, of course, taking into account and enjoying the consequences of having better conditions in our contracts. The chairman was referring, to the awards of the first nine months of the year, so max are going up, and that's resulting into better performance. And let me finish just with the strong performance that we are seeing in the mobility-related services, so car rental activities. We have the new contract, but also we are seeing more and more transactions at a higher average transaction value in the car rental business. And finally, the VIP activities that the company has been devoting a lot of work and activity is performing extremely well, with a delivery of around 30% of growth, mainly explained by the increase in prices. We are adding services, and of course, we are attracting more and more passengers. The growth rate in users is much higher than the growth rate that we are seeing in the traffic through our facilities. And let me finish on the international front. The chairman has referred to the growth in the international EBITDA contributed to the whole group. I would like to basically highlight on Luton. I would like to share with all of you that in the third week of September, the Luton team successfully delivered the parking lot, the construction for the parking that had a fire a couple of years ago was properly delivered, and that facility is already up and running, and therefore we are collecting revenues. And secondly, the insurance related to this fire, we managed to deliver a settlement, we managed to reach a settlement with the insurance provider, and therefore we shouldn't expect any kind of claim or litigation in this matter. That has been settled, and we have received what we were expecting to receive. And on Brazil, I would like to highlight the strong operational improvement that we are seeing in local currency. When we look at the growth in EBITDA in our Brazilian assets, the Recife portfolio and the Congonhas portfolio, we are seeing growth in Brazilian REIs of around 20% of our EBITDA in those two assets. which are very good news and confirm our views that we will be able to attract traffic growth, but also perform positively on the OPEX front and increase the commercial performance in these two assets. On Congonhas, I would like to highlight with all of you that the construction activities are progressing, are progressing materially. That's why you are seeing in the slide that you have in front of you that CAPEX for the first nine months is around 150 million euros. The goal and our obligation, according to the contract signed in that country, is that by mid-2020, of 2028, we should have done all the CAPES activities in that airport. And without further delay, I would like to stop there so that we have all the necessary time for your Q&A. Thank you very much.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. As a reminder, in order to ask a question, please press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, simply press star one again. Also, to accommodate everyone, we would like to ask you to limit yourself to one question only. Our first question comes from the line of Christian Nedelke with UBS. Please go ahead.

Hi, thank you very much. It's a two-part question, if you allow me. A lot of investors are trying to understand a little bit better this incremental capex of 3 to 4 billion that you've announced a couple of months ago. They're trying to understand if it's goods or not that you're spending that, what type of returns you can get on the non-regulated side. Could you give us a bit more granularity? There are some information on slide 11. Can you tell us a bit more how much of this capex is for growth, how much is for maintenance, security, or other? Could you talk about any metrics, incremental retail space, or any other metrics that will allow us to better judge the return on capital employed you'll get in this asset. And the second part, if you allow me, you show on your slides a lot of the projects in this CapEx plan are in planning mode. So from the perspective of the timeline, how much CapEx do you think you'll spend in 27, 28? Is it fair to assume that CapEx is more back-end loaded? Thank you.

Hello, this is Mauricio Lucena. I would just like to make a very brief introduction to your first question, and then I will give the floor to Ignacio Castejón, to our CFO. I was honestly very surprised when the day we announced our CAPEX proposal, which of course is a proposal because you know that we have... period which is defined by law in which we have to discuss our proposal with airlines. We need also reports from the CNMC. We can marginally modify our specific aspects of our proposal. Then there's the profile of the airport charges and so on. And eventually, it is the government which in its role as a regulator decides what the final DORA3 investment will be. But I was a little bit surprised or very surprised by the market reaction by the decrease of our share price the day we announced this because as a professional economist, when I think about what is AENA's business from the regulatory perspective, it is almost everything about the RAP. And, of course, if we were another company, I could understand some of the, I don't know, of the doubts. But I think that our track record, our Delivery, it has been very good in the last decade. I say the last decade because it was in 2015 when we went public and we became a listed company. And I think that we are a reliable company. So I think that, of course, there are risks when you project such a high amount of capex, but this will be good for the company. This will increase our RAP, will improve our airports, will improve our... the quality of the services we offer to our customers, to our clients. And in the end, this will be... How would you say that? Sorry, because the words came in Spanish and I wanted to be very precise. This, in the end, the increase of the RAP with such a high volume of investment will generate value for the company, without doubt. So this would be my first, but I would say important reflection. And I now give the floor to Nacho.

Thank you very much, Mauricio. And thank you very much for your, I don't know, super question or 100 questions in one question, Christian. I think as the chairman was explaining, we are at a very early stage of the consultation process. It has just started. I think this is the second or the third week of the consultation process. The teams internally have been working very hard in order to have this proposal. And of course, we have a massive amount of internal information that is being discussed. The nature of the consultation process in Spain, as all of you know, is confidential. And therefore, we cannot go now publicly, assuming that we were interested in doing so, and start sharing all that information. Having said all that, because I will not be able to address all your queries, unfortunately, Christian. But what I can say with you, trying to react to some of your points, on the schedule, I think this is going to be partially back-ended. It's difficult for any company launching so many projects. For that value, being able to deliver from day one proportionally that amount of capex. So please assume that in the first years of DORA number three, the capex that we'll be able to execute will be lower than the capex that hopefully we'll be able to deliver in the second part of DORA number three. That's basically, it's a result of the of physical preparation, design, permits, et cetera, and also being up and running in a number of those projects that in some regards are not 100% controllable by the company. You were also raising the point on non-regulated investments. That is basically around circa three billion euros. I would like to highlight a couple of things, Christian, in this regard. I think the first one is around two-thirds of this amount is just the result of the mechanical cost allocation, in this case CAPEX allocation, that is applicable to this company when we execute CAPEX. So if this company is executing CAPEX related to a terminal, part of that building will be allocated to regulated CAPEX and part of that building will be allocated to non-regulated CAPEX. So it's not that we can entertain a discussion about are we investing in exotic, extraordinary, non-regulated activities that are not growth or will not deliver revenue. It's our scope, it's our day-to-day activities But every time that this company invests one penny in a building that is providing regulated activities, given that that building will also be providing partially some non-regulated activities, we have to allocate part of that investment to non-regulated assets. And rounding up, that is around two-thirds. If we look at the other third, that is 100% non-regulated activities, Christian, I would say that no surprises here. This is going to be mainly new car park buildings that are given that we are expanding the terminals and hopefully there will be more traffic based on our numbers in our facilities in the next decades. there will be a need for new car parks. And that's basically explaining a significant part of the 100% non-regulated investments. And this is what is behind the $3 billion figure that we set with the market in mid-September. You were also asking on a breakdown about what is behind the $13 billion figure. I think the company has been disclosing figures related to the main projects that we are willing to start in the next Dora 3. I'm referring to Madrid, I'm referring to Barcelona, I'm referring to some airports of the Canary Islands and also other ones in the Mediterranean coast. So I would say that around 50% of the total number of the 13 billion refers to these big initiatives, transformational initiatives. The other 50% refers more to infrastructure, technology, safety and security, sustainability, innovation, planning, recovery and maintenance, etc. So that's the kind of breakdown that I'm happy to share with all of you at this moment in time. I hope that I have been able to address your question. And I would like to finish just with another comment, following up on the statements from the chairman and also other statements related to Dota 3 that I have heard, and I think you were alluding as well in your question, Christian. This company this year, next year, the very first year of Dota 3, from a cash flow standpoint, is not materially changing. I think we are going to have a need to raise that in order to invest in all these CAPEX, mainly in the last years of DORA3. So I would like to share this message with you in order to reduce the level that I have seen in some of you about the uncertainty or materially changing in the credit profile of the company or in the cash flow quality of the company. 2025, you are seeing the figures today as of September. We should expect a 2026 very similar to 2025. I'm not giving you guidance. We are not providing guidance today of 2026. But it's the last year of the current DORA, and you have all the information on DORA 2 in front of you. And as I was saying at the beginning of my answer, DORA number 3, the CAPEX is a bit back-ended. And if you look at our debt maturity profile, there are no material debt repayments coming in the next year, and especially in the first years of DORA3. So the questions related to can the company afford these CapEx investments, the chairman has already confirmed the point on capital allocation with respect to dividends. And I also would like to share with all of you as CFO that we see that this company will remain having a strong rating in the next years despite this proposal of DORA3 that is on the table and we are willing to deliver. Sorry for my long answer, Christian, but given your total and big question, I thought that was necessarily a long answer.

Thank you very much. Thank you.

Your next question comes from the line of Tobias from Bernstein. Please go ahead.

Hello. I also have a question regarding CapEx. I guess some investors and the self had also worried that CapEx will be higher for longer, spilling into DORA 4 as well, given that, you know, not all of the projects can be finalized in DORA 3. When you look at slide 12 and the projects and planning stage and the pre-project stages, And then combine that with comments of the Spanish Minister of Transport that construction for Barcelona won't start before 2032. Can you maybe comment or give us a little bit more color on your CAPEX expectations for DORA 4? Maybe some comments on A, what do you think for Barcelona and the Barcelona Commons? And then B, sort of which other projects are likely to require CAPEX beyond DORA 3 that is not captured in your current proposed CAPEX?

Thank you. Thank you very much for your question, Tobias. This is Ignacio speaking. I'll be very straightforward, Tobias. We have just started the consultation process for DORA number three. So start talking today in the resource presentations for the ninth month of 2025 about DORA number four, I think would be a wrong approach from the company. That's message number one. And with respect to my message, the other message that I wanted to share with all of you, 10 of our projects in Dora 3, of course, are longer from a construction standpoint than the five-year period of Dora number 3. So there will be 10 of our projects that will be totally completed in Dora number 4. That's a consequence of the size and the importance of these projects that will allow the company to provide capacity for the next 20 to 25 years of traffic growth in Spain. Thank you, Tobias. Thank you.

Your next question comes from the line of with JP Morgan. Please go ahead.

Hi. Thanks for taking my one question then. We talked a lot about the capex and that you think they are good capex. And you mentioned that the WAC will be reasonable. Could you give us maybe a bit of color about what kind of tariff increase this will all translate into in the next hour? I think you said in the past that you would aim to get something around low single-digit tariff increase. that you viewed that as a good outcome? Is that something that you are still comfortable into pushing forward to? And for next year, tariffs were obviously already announced. How secure is that? And when will we have the final confirmation? Thanks very much.

Thank you very much, Elodie. This is Ignacio speaking. I think as you know the process, we will not have our proposal being discussed and hopefully approved by our board until March of next year. And we'll be subject to further approvals coming from the cabinet and regulators after summer of next year. So any indication from my side could be premature. Having said all that, I think we see reasons why there might be a tariff increase in the next years. If we look at the CAPEX investments that we were discussing previously, this is a significant investment. Two, if we look at OPEX, uh opex of the company is likely to to go up there are many reasons for that in the context of a significant construction activity expanding our terminals a bigger footprint of our terminals more activity coming on the commercial front so all that i think this company will get bigger and therefore the opex of this company as a consequence of that is likely to to go up and finally from the remuneration standpoint, as the chairman was referring, we think that we'll get an adequate and attractive, a reasonable WAC. And if I look at many of the inputs that are taken into account in order to estimate WACs, what I see now is a scenario in which risk-free rates are higher, cost of debt for AENA will be higher than the one used for DORA2. So there are reasons there to defend a higher remuneration for this company in the context of DORA3 than the ones that we had through the consultation process of DORA2. And that would be my answer, Elodie. Thank you.

Your next question comes from the line of Nicolò Pessina with Mediobanca. Please go ahead.

Yes, good afternoon. About the governance rights that many local authorities have asked in the last couple of months, I understand INSVU to preserve the current model. However, I wanted to understand better what the objective of the local authorities in asking these governance rights is, what would they like to do differently? And is it technically possible to give them a role in the decision or process of a single asset, maybe giving them voting rights for a single asset while retaining the economic rights? Thank you.

This is Maurici Lucena speaking. Well, I think that for the reasons why local authorities or certain local authorities for more involvement in the management or regulation of airports. I think that you should ask them the reasons because I don't know. I mean... I cannot be abstractly in their place to think why they ask it. You know that the political world is complex and I think that the best approach is to ask them directly. On the second issue you mentioned, again, I want to be crystal clear. We think that it's stronger than we think. We are convinced that that the constitutional framework and the part of the Spanish constitution that refers to airports, along with, and this is very important, along with the shareholders' structure of AENA, which is a hybrid state-owned and private and listed, provides a very strong protection of the model. In other words, AENA will and can only decide things that, to put it simply, that are in harmony with a business case which is profitable for the company. Why the company would be interested in sharing the management of the company being the most efficient company in the airport sector probably in relative terms in the world? Why? So, this is why I say that We consider our model, which is, by the way, the model defined by law in Spain of airports and of the company of AENA, very solid. And at present, I consider it... impossible to modify anything in the line that has been mentioned by some political actors. Thank you very much. Sorry.

The next question comes from the line of Andrew Lopenberg with Barclays. Please go ahead.

Oh, hi there. Can I ask about external activities? And I know you're always limited on what you can say about where you're looking and what you're doing. But as we are focused on the scale of CapEx and as Mauricio spoke about how you recognize the importance of shareholder returns to investors and you reiterated your expectation of sustaining the 80%. dividend payout. I mean, how are you thinking in terms of the flexibility to participate in further external opportunities, given that potentially Luton is on the table and then press reports have you looking at the CCR and assets and indeed Catania as well. How are you balancing this?

Thank you, Andrew. I will be very sincere because your question is a question on which I have been reflecting, I would say, a very long period of time. Yeah, I will be very clear. I think that to the extent that the current information allows us to reflect on this, I think that it is compatible so far. to invest enormous volumes of money in the coming years to defend a very high payout our net profit and that's why I say I said that I don't see at present any reason to change our payout policy in the coming years present and thirdly the the potential of M&A projects. I think that these three elements, investment, a very generous dividend policy, and potential M&A projects are compatible. And this is why I wanted to be clear when I said what I said on the dividend policy. And specifically in M&A, I've said this many times, You know, we look at everything. We look at everything because this is a sort of not very wide market. I refer the one that offers new international opportunities. So we look at everything. But actually, we are interested in very few projects. because the combination of the quality of the asset, price, regulatory risk, the country, culture, I mean culture proximity, to express it clearly. The combination must be a very specific one. And when this combination takes place, we can then be very concrete in being interested in a specific project. But this happens very few times. Thank you.

Our next question comes from the line of Karyud Metlayan with BNP Parva. Please go ahead.

Hi, Dario here. Thanks for taking my question. I agree with the chairman. The group cap makes sense. I think the regulated work should be reasonable for the next order. I'm more concerned about the execution. So how will Aina manage the construction risk? I think about the construction. Aena has not done a lot of capex over the past 15 years. And of course, 13 billion is a large number. So if there are delays, cost overruns in one project, what happens? Can Aena transfer some of this risk to subcontractors? Or how would the regulator look at this for the next order? Thanks.

This is Mauricio Lucena again. Well, all that I can say at present before I give the floor to Ignacio Castejón is that as CEO of the company, I consider the company very well prepared for this very... It's true. ...stressful period of... an enormous amount of investment, but if it was otherwise, I would not have proposed this volume of investment to the board and then convey it to the government for its analysis and its final decision in the coming year, in next year. So I think that we will be prepared. You are right when you say that it's not the same when in Spain you invest. Well, this year we will be investing in Spain from a regulatory perspective only. 750 million euros. And this is very different from the volume that we will face in Dora 3. But I consider the company very well prepared. And if there are any doubts, I would kindly ask you that you analyze what we have just done in Brazil. In Brazil it's the first time ever, and this has been said by the Brazilian authorities, that an airport company complies with everything related to all the construction that was associated to the concession. I'm very optimistic as well on the success of the construction in Congonhas, which is very challenging, of course. But I think that this is a very good precedent. to assess the, let's say, the probability that AENA in Spain will complete successfully the new DORA3. So, again, I'm very confident that we'll do it. Thanks. And now we'll give the floor to Ignacio Castejón.

Thank you, Mauricio, and thank you for the question, Dario. The 2027 to 2031 investment plan, of course, will be a challenge. I think one of our main aims, Darío, is maintaining, and that's why it's an important challenge, is maintaining airport capacity during the construction activity, so while the works are underway. The most significant works will begin in Dora 3, and our plan in order to have them being executed and delivered is that they will be gradually put into service. So it will be a phase approach. I would also like to highlight or to underline that we will tender out the projects the construction projects when they are already designed, already completed. So when they are tendered out by us, there will be very little, I would say very limited room for potential deviations or changes. That mitigates, that materially mitigates risk, at least from our perspective. I think the chairman referred to Congonhas, to Recife, We also have in front of us the example in Palma where we are delivering the project one year ahead of schedule in 2027. Also, thank you to the investment approved by the regulator that gave us more room to finish this project next year. So I think it's a transformational phase for the company, but we think we have the right resources, tools, processes, and our approach to tender contracts will help us to mitigate the risk that you were pointing out. Thank you, Dario. Okay, thank you.

Your next question comes from the line of Marcin Wojpał with Bank of America. Please go ahead.

Yes, good afternoon. Thank you for taking my question. I just wanted to ask about the regulatory process and the timeline. So you mentioned that you have until 15th of March 2026 to submit your DORA plan to the regulator. Are you going to make it public? Are you going to perhaps organize some sort of presentation explaining your assumptions and giving us more detail? And then what happens later? Are you expecting the regulator to issue maybe like a draft determination, preliminary determination before the summer, or we have to wait literally until September 2026 to get further visibility? Thank you.

Thank you for your question, Marcin. I think with respect to what the company may communicate after March of next year, we haven't made an internal decision about it. So we will make that decision at that moment or in the following months if we think it's the best for the company, the shareholders, and the process. If I understand well, during the process of DORA number two, there was some privileged information being disclosed by the company with a summary or the main elements of the proposal of the company being served with the market. That happened in Dora number two. I think let's make a decision. Let's make the call about Dora three at that moment in time. If we finish the best course of action, always taking into account our regulation and the Securities Exchange Commission regulation. With respect to your question number two, I think it's unlikely that they publicly revert to us before summer. But I don't have that. That's a question for them, not for us, how they will make progress before summer with all our information. Thank you.

Thank you.

This question comes from the line of Harry Shankar with Deutsche Bank. Please go ahead.

Yeah, good afternoon. Thanks for taking my question. Maybe one around the tariff increase that you're talking about for DORA 3. What would be a reasonable back behind your assumptions for a slight increase in tariffs? And on a tangent, if you do land a tariff increase under DORA 3, what's the risk that airlines start pulling out more capacity? Are you worried about that? Thanks.

Thank you for your question, Harry. Of course, we are working with numbers internally, and we have been working for a while. We haven't even presented to our board those final numbers. And in the consultation process, discussions about WACC, will happen later on so would be uh i could say wouldn't be the right uh approach from from our end sharing sharing that information with you at this moment in time uh apologies for that uh harry i'm sure that in the future we'll be able to have this this conversation but not now thank you no i completely understand that and uh any thoughts around uh what might happen to airline capacities and um whether you would be worried about that

In the event of a tariff increase, I mean.

I didn't get your question, Harry. Sorry.

Sorry. So we've seen some reports on how certain airlines have been looking at taking capacity out on the back of tariff increases. So given your projection for slight tariff increases, are you worried about any capacity changes from airlines? Yes.

Sorry, I didn't understand your question initially. Apologies for that. Now I got it. I think that those have been comments from one specific airline with respect to a specific season prior to Dora number three. So what we see is a market that is one of the largest touristic markets in the world that according to ACI is going to be top five market in aviation. a very important activity sector like tourism accounting for around 15% of the Spanish GDP. So we believe that there will be appetite and demand from airlines to be present in this kind of market. Harry, thank you. I appreciate that. Thanks.

And the last question for today comes from the line of Jose Arroyos with Santander. Please go ahead.

Yes, thank you for the clarifications. They were very helpful. I wanted to ask you on the Barcelona food and beverage contract, what are, in your opinion, reasonable expectations for the market increase in that contract? I can see that there is 30% more square meters than in the previous contract, and I can see that in Madrid, a similar contract was awarded in 2023 with more than 40% increase in MAC. So I wanted to make sure my expectations that we might see the MAC rising by more than 50% in that individual contract is not out of filter. And whilst we are on that topic, I wanted to check with you if there is any other large tender outside Barcelona Food and Beverage that we should have in mind during 2026. Thank you.

Thank you, José Manuel. This is Ignacio speaking. I think we are very excited about the F&B tender in Barcelona. The commercial team has been working really hard in that matter, and the the feedback that we are receiving from the market is that I would say it's very strong. We are adding space. We are trying to have a very attractive and appealing approach to this contract in terms of tenor, in terms of layout, in terms of concepts. With respect to expectations or sharing with you my expectations,

Please give us a moment. We will be back momentarily. Once again, we will be back momentarily. And that is the end of our Q&A session. I will turn the call back over to Carlos Gallego.

We are currently facing a few technical difficulties.

We will back momentarily. See you. Thank you. Ladies and gentlemen that concludes today's conference call you may now disconnect your lines we thank you for your participation.