Aena Sme S.A Unsp/Adr

Good morning, good afternoon all, and thank you for joining us today for ENA full year 25 results presentation. My name is Sammy and I'll be coordinating your call today. During the presentation, you can register a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two on your telephone keypad to remove yourself from the question queue. Please, in the interest of time, please limit yourself to one question per person. And any follow-ups, please do rejoin the queue. And I'll hand over to your host, Carlos, to begin. Please go ahead, Carlos.

Good afternoon and welcome to our 2025 results presentation. This is Carlos Gallego, Head of Industrial Relations. It's a pleasure to be with you again following our conference call last week regarding the draft regulatory proposal. Today we are presenting our 2025 results. Our Chairman and CEO, Mauricio Lutena, will be hosting the session together with our CFO, Ignacio Castejón, and myself. We will review the main highlights of the results presentation, which you can already find both on our website and on the CNMVA website. After that, we will open the floor to your questions. As usual, to ensure that we remain on schedule, we kindly ask you to limit yourself to one question per person. Without further delay, I will now hand the call over to Mauricio Lucena. Thank you.

Thank you very much, Carlos. Good afternoon everybody. Thank you for joining us for the presentation of our annual 2025 financial results. It is a very important satisfaction for the top management to present these results because as you have seen in the communication to the market. They are record financial results and it's our three year in a row that we achieve this record. And as Carlos said, this presentation follows the presentation we did last week regarding the DORA3 INAS proposal. So, as usual, I will start with traffic. 2025 was also in terms of volume the third year in a row with the highest traffic ever in Spain. We are very proud of this achievement and not only because of the volume but also because we know it's very difficult to manage with a high quality of airport services such a record volume and we achieved both. the record of volume and I would say high quality airport services. So, in total, AENA Group traffic reached almost 385 million passengers. And in Spain, in the Spanish airports that belong to AENA, the figure was more than 321.5 million passengers. And as you also know, our traffic estimate for the present year, for 2026, in Spain is an increase of 1.3%. And to us, this is a natural estimate because we think that we have overcome the, let's say, overshooting phase of the traffic evolution after the pandemic. and now we enter into a, let's say, more normal phase of traffic, of airport traffic, and it's a combination of the way we see the economy, the way we see not only the Spanish economy, but very especially the economies of our principal foreign markets. I'm referring to the UK, Germany, France and so on. And also that in 2026, and especially in Dora 3, we will in certain days, in certain aspects, face constraints. because the infrastructure, because AENA's airports are approaching its technical limits and this is the strong reason why we propose within DORA3 to enter into a very strong new phase of investment. I don't want to be dramatic in the sense that I think that these constraints on the side of our airports, I mean, they will exist but they will not be very important. They just introduce subtleties in the way we are calculating our estimates for the future. If I now move to Brazil and to the UK, you know that in 2025 our traffic in Luton was 17.6 million passengers, in Brazil in one concession almost 29 million passengers, in the other concession almost 17 million passengers. And in terms of financial performance, I would like just to highlight that our total revenue in 2025 was almost or reached almost 6.4 billion euros. Our EBITDA was close to 3.8 billion euros. And all in all, the net profit exceeds or exceeded in 2025, €2.1 billion, which is a record. And consequently, you know that the board of directors, it was yesterday, proposed the payment of a gross dividend of €1.09 per share. And on the commercial side, experienced a very robust growth last year i would like to stress that in the duty-free business line for example three lots canary islands the north of spain and andalusia mediterranean these three loads ended 2025 above the contractual max and this is a very important achievement because this makes uh feel both very comfortable, AENA and the duty-free companies. As you know, we have just started the complete renovation of the food and beverage activity in Barcelona, in the Barcelona airport. On the real estate side, Total revenue grew by 10.5%. in 2025 and in the international arena, I think that we are satisfied because we would like to, if possible, to increase a little bit more the contribution of the international activity in the total EBITDA, but so far we have achieved and EBITDA in the consolidated figure was close to 400 million euros and I think that this is a significant EBITDA and this is a satisfaction because you know that we would like in the long term to have a better balance between Spain and the rest of our international markets. And also concerning the international activity, I would like to highlight that by the end of last year, AENA obtained the most financing in the Brazilian airport sector. This will allow us to finance the CAPEX of the new concession, the Boabé concession, and also internationally, you know that in December 2025 we acquired a significant participation in the UK, respectively, in Leeds and Newcastle airports. This is an achievement because we naturally feel very comfortable both expanding our activity in Brazil and in the UK because if we expand our activity we set in motion our, let's say, extraordinary efficiency because of the functioning in a network. Okay, now I move to financial issues. Last month, in January 2026, we launched a second bond valued at 500 million euros with a maturity of 10 years. we are very satisfied with the financial conditions because I think that they demonstrate that in the bond markets where AENA was relatively virgin, we have very rapidly achieved the confidence of the market and I think that the conditions of this second bond reflect I would say that the financial assets of AENA. In terms of ESG, I would like only to mention that in 2025 AENA achieved a reduction of almost 75% of emissions of Scope 1 and 2 compared to 2019. And finally, I would like to just refresh the main messages associated to our DORA3 proposal that we communicated last week. you know that the government of Spain, through the Council of Ministers, they have a deadline in September 2026 to approve the definitive Dora 3. And you know that our aim has been to translate into volume of investment, distribution among airports, the evolution of tariffs, OPEX, WAC and so on. We have translated, I was saying, our new cycle of investment in terms of the regulatory scheme. And this will be a completely different phase for AENA. It will be the first time in the last 20-25 years that we enter into a very strong investment cycle. I would like to remind that in pure financial terms this is good news because we will significantly increase our RAP. our regulated assets base in more than 5.5 billion euros and this should be the increase in the enterprise value, of course, taking into account that the WAC, the OPEX, the risks and so on, they all are, let's say, reasonable. In other words, if the figures of the final DORA3 approval by the government, along with the The real INA performance during DORA3, if all this makes sense, we will significantly increase the enterprise value. And this is good news, knowing that we face some risks. but we are very confident that the experience and our past performance demonstrate that we are a reliable company that will develop and materialize DORA3 successfully. And you know that the key projects in DORA3, they cover the airports of Madrid, Barcelona, Malaga, Alicante, Tenerife Sur, Valencia, Ibiza, Lanzarote, Bilbao, Tenerife Norte. menorca and melilla and in terms of the opex that i know very well that worries you in in my opinion too much but uh this regulated opex it is just a consequence of uh how the economy is moving and the new phase in which aena will uh into which aena will enter What do I mean by this statement? Well, I'm referring that the new OPEX reflects the inflation experienced, but experienced by the Spanish economy, and by the way, by the world economy, the increase in the minimum wage, and very specifically, the new resources we require to address the investment challenge The increased traffic also implies a little bit more OPEX, more regulatory requirements in terms of safety, maintenance and quality of airport services. This also costs money. And finally, you know that many of our airports are aging. They are aging well, but they are aging, and this means more OPEX to maintain them. And again, we have said this many times, but we are convinced that when you enter into a phase with important investment and important expansions of many airports, we have to compatibilize the new traffic, new record volumes of traffic in the future with the investment. So to compatibilize successfully these both very important ingredients, this future record traffic with the CAPEX, the expansion of the infrastructures, we need a little bit more of OPEX. And for AENA it's been, let's say, a lesson what has happened in recent years in Palma de Mallorca. The whole renovation of the airport has been a success, but we have learned that all the rest of things being equal, we need to spend a little bit more money to ensure that the passenger experience is better than it has been in Palma de Mallorca. In Palma de Mallorca, we will finish the renovation before expected. It will cost a little bit less than expected, but one lesson learned has been that for the future expansions of airports, we will need a little bit more money. just a little bit more to increase the passenger experience. And finally, you know that our WAC is simply a consequence of the turn of the monetary policy across the world. And finally, our average increase proposed All in all, it's just 43 cents every year. This, regardless of the... This boring and... I don't know how to describe this noise that is made by the airlines. When you compare the increase we propose with the increase in the prices of flight tickets, well, I think that this is perfectly eloquent of the difference. And regardless of this very modest increase we propose in terms of airport charges, to cover this complete transformation of spanish airports that will endure three decades these new airports i think that they will be used in the coming three decades uh regardless of this increase the charges of AENA's airports in Spain will remain highly competitive and particularly they will remain the most competitive aeronautical charges in Europe and this is very good news and this is a commitment that we will accomplish. Thank you very much and we will join you back in the Q&A session.