Enel Spa Unsp/Adr

Good evening to all the people connected. Welcome to the first half 2025 result presentation. Enel CEO Flavio Cattaneo will start with the highlights of the period and our CFO Stefano De Angelis will present the economic and financial results. We ask those connected to the webcast to send questions only via email at investor.relations at nl.com. Before we start, let me remind, media is listening to both. Thank you, and now let me hand over to the CEO.

Thank you, Omar. Welcome, everybody. The positive trend is also confirmed in the first half. a 4% net income increase on a like-for-like basis, marking another quarter of growth, driven by our action to reduce risk and secure results. On shareholder remuneration last week, we paid the final 2024 dividend installment, equal to 25.5 euro cents per share, with total dividend for last year at buying a yield of about 6% at current prices. In addition, as we have already done for Endesa and Enel Americas, today the Board approved a tranche of the Shared Payback Program at Enel's file level for €1 billion. to be executed starting from tomorrow until the end of December. This is another clear signal. We deliver on our promises and optimize capital allocation to maximize shareholder returns. Due to our action, we have improved the announced earnings profile. We resolved increasingly the couple from power price vulnerability, ensuring a lower risk, greater visibility, and enhanced resilience. We also improved visibility on our regulated assets. Our advocacy actions are delivering results. In Italy and Latam, we have made progress on distribution concessions renewal. While in Spain, with the proposed framework, it doesn't provide adequate support for the investment effort required by the PMEA. We are engaging with the authorities to reach a fair and sustainable outcome. Let's now have a look at the first half results. The group performed strongly across all P&L lines. EBITDA reached 11.5 billion euros after 100 million year-on-year, including the perimeter effect. If we take out the exogenous negative effect of exchange rate, EBITDA would have reached 11.8 billion euros, improving the solid result already achieved last year. Net income came in at 3.8 billion euros, up by 4% versus last year. Cash generation remains strong. FFO net debt stood at 25 over the last 12 months. This proves once again our delivery is driven by reliable and organic growth, and not one-off. The quarter evolved as expected and we are executing our strategy and turning into stable and visible results. We are on track to meet our full year target with net income expected at the top of the guidance range. Now let's move to our strategic priorities. We continue to improve our group risk return profile. Over 55% of CapEx was allocated to networks, ensuring stability and long-term visibility. 80% of total investments were deployed in Europe, our core markets characterized by low risk. As shown in the slide, industrial KPIs confirm our progress. Arab customers reached 658 euro, boosting asset profitability. Renewables now account for 75% of total production. Emission-free production now stands at about 85%. Fixed sales covered by renewables reached 93%. Its vote highlighting our commercial campaign significantly reduced churn in Italy. These results are fully aligned with the plan presented last November. Now we move from promises to delivery and from delivery to results. As for brownfield opportunities, we made solid progress moving on the next slide. As a result of our selective and return driven capital allocation, we acquired over one giga of renewables in Australia, applying the stewardship business model. We signed an asset swap deal with Gulf Pacific Power, increasing consolidated renewal capacity in the U.S. by 285 megawatts. In addition, we are at the final stage of negotiation for graphic asset acquisition in the U.S. and the EU, and continue to scout other opportunities aligned with our strategic approach. Now move to the other two strategic pillars, efficiency and sustainability. On efficiency, the short optimization is on track. We have already achieved 1 billion in savings, 67% of our improved target for 2027 announced in the last capital market day. This shows our commitment to efficiency without compromising on safety and quality of performance. On financial sustainability, balance sheet flexibility has been restored, net debt to EBITDA now stands at 2.5 times, and we are ready to catch long-term value creation opportunities. Now I'll hand the floor over to Stefano for a deeper dive of numbers.

Thank you, Flavio. Good evening. I start the presentation with some operating highlights. The capacity deployed in the last quarters supported a growing renewable production year on year, despite some shortage of resources in Spain for wind and in Italy for water, and the impact from curtailment in Brazil. Having a growing concern on this topic and the sustainability of the renewable shape in the spot market, we continue to deploy Greenfield best capacity, reinforcing our leading position on storage that stood at 11.5 gigawatts. Moving to the retail segment, in our domestic market we anticipated a churn reduction and we got it thanks to the final execution of the customer's portfolio reshaping and price normalization for B2C and small medium business. Last but not least, the strong investment deployed on Greece boosted the value of our REB, which has now reached more than 45 billion euro, increasing the resiliency of our ETA looking forward. The solid operating delivery resulted in a solid set of financial results. I'm now moving to page 2. As we have just mentioned, the year-on-year BTDA extension is driven by the growing investments in the network segment, coupled with fair sustainable returns. This action applies to the Italian regulatory framework, but we are confident Spain and Brazil will evolve in the same direction. About the net income, it is important to keep in mind that the closing of the disposal of Slovensk Elettrane, based on the collection granted to EPH in 2015, generates a negative non-cash accounting loss. in 2025, while during 2024 we have to register the pro-quota of the positive net result achieved by the company. None of these topics has cashed in but was included in our EBITDA or EBIT in our presentation. Instead, the deal generates a 1.1 billion net debt reduction that for ready agencies impacts positively the adjusted net debt. Finally, our organic, plain and business-driven financial results translate into a coherent, solid net cash flow that reduces our net debt by 2 billion resulting in a net debt to BTDA ratio stable at 2.5 times. These results have been achieved notwithstanding exogenous impacts. That's why on page 9 we have detailed these dynamics. Around 70 million euro impact from currencies devaluation is mainly associated with Brazilian real. And I'm referring, this is important, to the 2025 FX scenario. presented at the capital market day, not the year-on-year ones that have a greater impact and that is normally not adjusted by annual units results reported ordinarily. In this case, we are referring to the difference from the assumption that was the base of our guidance also in November when we set our business plan for 2025-2027. The second impact is the disruption related to the absence of regulation about the TSO operational management of the network system security that generate unexpected negative impacts for EUR 200 million. More in detail, in Spain, as already presented not just by Endesa but also by Beldor, for example, the blackout caused an increase to the cost of services Related to the ancillary services worth around 150 million that impact the retail business. In Brazil we face the containment of generation on lack of capacity of transmission line or forecasted offer demand unbalance forecasted that are made by the TSO. Moving into the country-based analysis, I will now jump directly to page 14, where there is an analysis related to Italy. It's already clear that the BTDA in Italy has to be analyzed separately. Networks have been already commented. to remind that the Italian regulatory framework allows us to use our financial file power and the return is visible and fair, also because we are allocating here 50% of our group capex, not the second capex, but the group capex, in these six months. Moving to the daily, we have a normalized second Q result as guided, but the price reduction of our customer base to align the first quarter 2023 repricing at the market condition is still waiting on the semester. Relevant achievement is the chart reduction in the residential customer base that imply an extension of our customer base lifetime of approximately 2 years. Finally, the commodity positions and consequently ABTDA is now moving into a new normal level of profitability and have more linear results in our books. On the following page we see, and now it's something that we'll show you in all our presentation of the financial report results, our customers and generation business in ebony with the edging strategy we are applying by approximately one year and a half. So, as already highlighted in the previous presentation, 2025 is already priced, I am referring to the B2C and small medium business fixed price volumes of power. For 2026, we have introduced the 2026, as I told you again, 2025 is full-priced, and this means that the renewable generation is full after. For 2026, we have already priced one-third of the total volumes. expected for 2026, but it is important to keep in mind that the renewable generation is entirely covered by the expected consumption of the segment I have mentioned. This means that it is entirely matched with the consumer has no business volumes based on existing contracts power consumption with fixed price offer this is why we explain that the power retail contracts are perpetual contracts with the fair and sustainable flows that allow us to change the price of the megawatt hour. So in the case there is a spike in the commodities, price, we can change the price. If the price goes down for two years, we will probably have to adjust the price, but it's not something that we have to realize immediately after a change into the wholesale full market price change. What we have to manage is the churn of the customers, that's why the lifetime increase is so relevant, because the area of that part of the 2026 that is churn and acquisition means that they have approximately 7% less customers per year. And the customers move into the mesh, the one with perpetual contracts. So, what I have to manage, going back to the point, is the churn and the acquisition. The churn, clearly, is a customer I lost, and I have to maintain the best customers in terms of their value. the retention activities. At the same time, I have to acquire new customers. Is the price of the market price move up or down, this will be reflected into the new contracts. So this 80% today may have a different pricing in the acquisition phase. Then I can adjust if I use a promotional price for six months. Then I can adjust after one year if the market moves in some direction again, up and down. Sorry it will be long, but I think this is quite important to understand the business. In the next page, I complete the exchange and the topic and I go to the group net income. This came at 3.8 euro billion. And I will focus just on some specific topics. One that is not mentioned in the blogs, let's say, is that they have a positive direction, let's say, especially in Italy. And we have, I'm sure, also the same movement in Spain. And these are the retail-driven bad debt. Then when you see bad debt, this also refers to the South American regulation framework regarding the final customer that is served by the network of aid. In this sense, it's always more important to analyze the debt separately from the customers that I have a relation also on price condition and a customer that I have a generation of price conditions that are based on a regulated bid or something like this, and that is just related to the financial condition of the customers. In this sense, clearly, Rio de Janeiro has a performance that is not aligned with San Paolo zone, and this is a point that will be very important into the negotiation of the concession terms. Another important point is the financial expenses that are down by around 150 million at the profit and loss level, on the back of, clearly, the change related to the gross debt. Reduction debt accounts for €9 billion. So when you see the €2 billion reduction in debt, you have to consider that there is a reduction of €9 billion in gross debt. And we have reduced the liquidity and the other figures that are related and are accounted as liquidity. Also because with the reduction of the Euro interest rates, I have expected that it is negative when I maintain too much liquidity on my accounts. Let me say, until 2023 this was not so evident, now it is evident, so we are acting in this way and we have registered the positive impact on the net income and also in the biggest flow. We have presented also the reported net income, and here it's important to highlight that around 400 EUR million difference is based mostly on the Slovak electronic accounting loss that we have to register also is not completely affecting our cash and our FFO, our land debt. Moving into the FFO, Group's cash generation continued to be strong, with an FFO standing at €6.7 billion, once adjusted for the impact of payable change related to CapEx. Cash generated in H1 more than covered the deployment of organic CapEx, as well as the acquisition of the hydro assets in Spain, with an FFO minus CapEx being positive for €700 million. The main non-operating accounting items that impacted their debts are the following. Irish were positive for around 1 billion, as in general we issued a new hybrid bond for 2 billion, and in February we had to repay the 900 bonds that were already refinanced in 2024. Not only the cash items related to the growth back in Italy, this was a negative accounting post for 20-23 results, but the cash impact is registered in this semester, and this was already registered in the first quarter because the payment happened in February. And this refers to the blowback of the 2022-2023 crisis of the energy market. Then we have the Electropaolo Pension Fund repayment in Brazil. Another important topic is the payment of the cash out related to the capital gain that was registered in our companies in Latam for the sale of the Peru, especially the generation business. The tax is paid, like in Italy for example, on the following years and these have an impact of half a billion in the cash flow of this first half. It's not relevant after we have commented on this impact, but in this we have also 200 million related to the first program of buyback from Endesa, because if you remember this started during the second quarter, so we have the first 200 million that was created, not in our market day projections. Then, at that, related to the comparison between the end of year 2024 and first half 2025, degrees 400 million. The 2 billion was the comparison in the last 12 months net cash flow value. It's worldwide. Also, you see that we are starting to comment Brownfield Acquisition. The first one, relevant, you remember, was signed also last year when we presented the Capital Market Day. So this is a strategy that was already implemented as direction in our Capital Market Day business plan We have already stated this will part of the opportunity that we had thanks to the flexible financial profile, the optionality that this flexibility gave to us. So, we didn't mention in the presentation, but it was highlighted that we have just signed an agreement to acquire 150 megawatts of a wind asset in Greece to further expand our renewables footprint in Europe. The estimated enterprise value of this asset is approximately 200 million. Let's finalize the presentation with the Fourier guidance, saying that, as highlighted at the beginning of the presentation, this year we faced effects and regulation-driven headwinds that resulted into negative dynamics we have been able to offset thanks to resilient and risk-averse business model. We expect these negatives to be fully compensated by the operating performance delivered by the delivery of a growing EBITDA by the grid segments across all the geographies. So this means that the results achieved so far and the visibility we have for the second part of the year provide confidence in confirming our guidance. And now I go over to the CEO for some closing remarks.

Thank you Stefano. The results are strong and consistent. They confirm once again the successful execution of our strategic plan. We are at the final stage of negotiations from Brownfield after the acquisition of the UN and the US. while we continue to scale the market for value-creative opportunities in line with our strategic priorities. The business outlook remains positive. We confirm our targets and we are moving toward the top end of the net ordinary income guidance range. Value creation is our guiding star. Organic growth, solid dividend policy and the new share-by-back program will drive robust long-term returns for our shareholders. Thank you for your attention and now let's move to the Q&A session.

We thank our CEO. Let's now open the Q&A session. We received a lot of questions for the call. They are summarized by topic. Let's start with the most strategic question that will be answered by our CEO. The first one, can you update us on regulatory changes across countries, specifically distribution and hydro-concession renewal in Italy, distribution concession in Brazil?

Okay, we're well on track with all advocacy initiatives. In Italy, the budget law already defines the main element of the concession extension. As for the technicalities, we await the authority resolution. But the ideal order is in our urgency. Our concession will expire in 2029. but it should be taken into account the concession of other operators, expired in 2010. And after 50 years, the option had yet to be held. In Brazil, the renewal process has already started. And during Enel published a positive technical note for renewal of Enel Rio. The others are respected by BIM. Thank you.

Second question. You launched the first tranche of the buyback program for Enel SPAR. What's the expected timing of execution Do you plan to proceed with the remaining amount?

Ah, regards to the euro, Enel's execution starts tomorrow morning. Spain moved faster than Italy due to the shorter authorization procedure. All partners are now fully operational. We have total firepower of almost 6 billion euro, including, obviously, Enel's Americans. As for the remaining amount, let's first focus on executing this initial plan.

Thank you. You often mention brownfield acquisition opportunities. What kind of assets are you targeting in terms of technology, geography and size?

Well, as I mentioned before, we are in the final negotiation stage for selected market deals and continue to scout the market. As usual, we don't disclose details to avoid jeopardizing ongoing talks. Our M&A strategy remains unchanged. No large deals, only low-risk ecologists and countries, only the EU and US.

Thank you. Are you considering further asset rotation or disposal?

The disposal plan has already been completed. At least there is not an exception of price. We don't schedule any disposal.

Thanks. Let's move to question for the CFO. Stefano. Q1 EBITDA numbers are stronger than Q2. What should we expect for the remaining quarters?

Okay, let me answer the question also with a more general overview. As you know, we continue to underline the secured attributes of our operational planning and associated financial targets. This approach implies also that we are committed to a baseline, but focus on catching all the additionalities available in efficiency, brownfield asset, new business like the connection asset or the data center we described in the Capital Market Day. This approach allows us to offset the headwinds faced in 2022 and to execute a significant portion of the announced Shared By Back programs. Sandy Stone and her business portfolio have progressively recovered the weight of networks in the group EBITDA. In the second quarter, we are landing on a 40% share. Well, I'm moving to the guidance. If we confirm the guidance, it means that we are projecting the same, approximately, EBITDA of the first quarter, 11.5 billion euro. And I'm telling you that this target will cover the negative effects scenario in the first half regulatory headings. I also tell you that networks will confirm the 40% share in the second half of the year. This means that I'm pointing to 4.5, 4.6 billion euro for networks and BTDA in the second part of the year. In terms of geographic contribution, we will see a slightly growing share of Latam versus Europe, and this will also be driven by the greater Rabin cabbage that we are planning to perform in the domestic market that will benefit the Fulia 25 Rab expansion in Italy. Moving to the integrated margin, we have a more mixed evolution. We did business in Italy, we conferred the floor that I set in the first quarter, when I was talking about the first half expected performance. So, this average EBITDA per quarter is a baseline, as I was saying before, and we are working clearly to improve these results, so this 700 million GDP per quarter retained in Italy is the baseline concept I've described before. Staying in Italy, generation, both renewable and conventional, will confirm the results observed in the first half. while wholesale and commodity trading will balance their first half seasonality traditional highest results in the second part of the year. Moving to Spain, we expect a stronger second half as already shown in 2024. The top-of-range BTDA guided by DESA implies 1.92 billion BTDA for the second half of 2025. The rest of the world is expected to have a more linear execution with micro continuing to affect the growth potential. But we are, as I said before, we are projecting a higher exchange rate scenario for the remaining part of the year when we compare to the capital market day, more in line with this rest of the trend. Finally, in the U.S., we have a positive underlying evolution of the business, and this is what we expect in the second half compared to the first part of the year. Keep in mind that when we compare year on year the second half performance, we have a nonlinear higher tax incentive that was booked in the second half of 2024. Wow. Thank you, Stefano.

Next question. Net income guidance has been confirmed, but each one results points to a higher landing point for the full year. Are there some negative items to be expected in the second part of 2025?

I will try to make the same exercise that we make for the VCPA, but the difference is that, as you see in the presentation, we are seeing the net income moving towards the upper end of the guidance. And this is also because, don't forget that when you have The net is represented by the FX and when you arrive to the DTA you have just a positive number in front of you that is discounted by the FX. In fact, when I move to the net income, I have also the depreciation, the impact on the net financial expenses, so I recover some part of the negative yield, but in the BDA2 positive impacts that I have in the other part of the balance sheet and that reflects into the PNL. That's why we have also this plus one, plus four year-on-year change. So coming back to the question, if we go into the PNL, what we can expect? The DNA will let me say organically grow in the second part, but slightly go because this is the activation of the new asset that we were investing in the President's quarters. So, let me say, if we have 8. something billion in the second quarter, this is, let me say, organically the trend optimization that we can expect. In the financial charges, we again may land into a range of 2.8, 2.9. Let me say it differently. Financial expenses on debt, it will be flat. Some minor increase in the fourth quarter for the share-by-debt impact. When we move into the financial charges, here we have also the impact of other, let me say, also accounting values and figures. But again, if you want to stay into a secure number, 2.8 to 1.9 is the good number for the second half. Tax rate, you may consider the 29%. For the minorities, you have two different impacts. You have, as I was saying before, that in the BTDA, we expect a slight recovery also in terms of weight into the P&L of the group of the Latam. You know that in Latam, we have the highest minority in terms of geography. So this will impact, let me say, negatively on the minorities. So if in the first half we have 700 million, we may expect to stay today 800, maximum 900 million. Higher the minorities means that higher is the results from La Dama, so let me say it's not necessarily a negative impact. Keep in mind that we will also benefit from the indecision like that. It means that we will exclude from the minorities the part of the net income of Endesa that today is in the 30% of the minority share. And this is not, let me say, an irrelevant number. And this will more than cover the negative impact in terms of financial cost to sustain the back-back for Endesa.

Thank you Stefano. Do you see power demand inflecting? What could be the impact on your business?

Starting from the American continent, where we see, let me say, the more positive trends, both in the north part, mainly in the U.S., in Canada, we have positive trends, all the discussion about the data centers is still in our mind. When we move to Brazil, that is the biggest you see also the impact of the demographic dynamics. This helps the demand to grow. So we clearly see a growing demand in the Americas. When we move to Europe, in Spain, accordingly also with the GDP, Today, Spain is one of the best performing in Europe. Also, the energy demand is growing, 3%, 3.7%, depending on the month, you know that there are adjustments for the temperature, but it's clearly a positive dynamic. When we move to Italy, we have, let me say, a flattish situation, not inflection, but a flattish. The problem is that it's not what we were forecasting in the last 10 years. We were also expecting the electrification of the construction, etc., etc. Differently, we have, let me say, a flattish trend. It seems that it's very difficult to... to find a way to increase probably in Italy, especially in elasticity, if the price will normalize in the forthcoming quarters, may be expected as an impact. Net-net, we do not see any inflection, let me say, if we see a flat Italian consumption, more influenced by the temperature. For example, in July we made the record a regular month for Italy, but this was related also in June to the highest temperature regarding it for the month of June. So let me say, it's still flat with impacts that are more related to situation, specific situation, weather and something like this. But not a worry, we are not worried for this. Let me say, it's an option that today we are not betting on a growing Italian market in terms of power demand from residential customers that we grow 10% for the, let me say, electronic vehicles. We are very, as always, very prudent in this. We want to have a target that is influenced more by our managerial action than from something that is exogenous.

Thank you. WACC research for Italy is expected by the end of this year. Which is the level of WACC expected at the moment? Are changes in the parameters of the formula triggering a decrease?

Technically speaking, the period 2022-2026 is divided into two sub-periods. 2022-2024 and 2035-2027. The mid-term review already materializes now at the end of 2024 resulting in the present 5.6% work. That was slightly below our projection, but again, you see that the baseline approach worked because we have not any significant change when we refer to the guidance to the target we have on net, also because we have some positive impact. If the work is changed, it means that you have also additional that may come from the OPEX, from the other variables that enter into the dynamic of the BTDA. At the same time, for example, you have inflation adjustment that may more than compensate this slightly change in the walk. Coming back to the question, to be precise, an update of the work within the sub-period may occur, you know, that this is a sort of trigger event, you know, the revelation of 30 basis points or more. Today we do not see this in the figures that are based on the European sovereign wars and the other viable, but we are clearly fall on track to observe if there is any change, also because if we perceive that there is the potential change in the work, we immediately move to find something that may compensate any negative impact, as always.

Thank you Stefano. Could you please provide an update on hydro production expected in Italy for the second part of the year?

In 2095 the water availability indicator in central and southern Italy was closer to the historical average, resulting in a better level of reservoir compared to the previous year. This is mainly associated with the explicit request from Sardinia and the center of Italy to optimize water consumption in spring on the back of an expectation of a dry summer. So here we come to the point that this is not a fully regulated asset, but we are not in the condition to manage the water. Just for economic or financial target, it's a resource that is managed jointly and looking at the sustainability, also environmental sustainability and also the other viable that is correct that enter into the use of the water.

Thank you, Stefano. EBITDA in Italy is down here Could you please go deeper on the dynamics?

The negative results that he commented in the last four quarters, I would add the two main negative dynamics. I would say also famous reposition of the customer base. As we always say, we have to change completely the tariffs for the customer base because we found, let me say, an out-of-market standard situation. We were losing a lot of customers, so we had to adjust. But this was not just adjusting the price. The warranty strategy was, let me say, turned around. But this is something that has been completed. It was just time. Now the base is reshaped and repriced, and this is based on a mutually fair economic condition and also distinctive competitive attributes. We want to move to a beyond commodity multi-service platform concept, not just a competition based on promotion and pricing. As already commented if you want, we already expected this dynamic. I also guided the target of the DA for retail in Italy for the second quarter just to show the world under control of the situation. And so now we start from this level of the DA that was set as minimum average worth result of 700 million. Differently on the generation, we trade, let me say, something that is typical of the business, there was a degree of resources in the agro generation that normally happen, maybe better or not. We have some degrees of resources in the agro generation. However, admin services, customers and usage is maintaining an affordable and fair pricing. The negative impact on the gas will say edging will continue to, let me say, have a negative impact on the year-on-year comparison because this is also part of a different approach on something that is not for business of generating and selling energy to our customers. So we are reducing the weight on, let me say, wholesale trading on commodity. Finalizing, these negatives have been partially offset by the strong performance of grid and thanks to the, keep in mind, the higher investment deployed and the efficiencies used to compensate these expected temporary negative impacts on the specialty retail and all that is not part of the core business of the utility SBA.

Thank you, Stefano. ANEL recently approved a positive tariff adjustment. Could you please elaborate?

Yes, it was, let me say, regarding, let me say, adjustment for the existing Brazilian regulatory frameworks. It was not a surprise. It was an improvement for Sao Paulo, where we have an increase by almost 14%. Keep in mind that in Brazil, the SELIC, that is, let me say, the interest rate is 15%, so we are not We are happy, but that's why I say we were expecting this adjustment. This will take effect from July the 4th, so it will be visible in this part of the recovery from Latin America, which is the day that I was presenting before. I can share the data, but this is 13.3% increase in the low voltage network, approximately 16% in the high voltage, but these are the data that if you want the IR department can share with you.

Thank you. In the half, the impact of currency devaluation was 280 million euro year-on-year. what should we expect for the rest of the year and compared to the plan assumption?

I will start. Before the 280 millions, let me say, organic, partially organic, because it's clear that we plan our long-term targets, financial targets, and in mind that for the Latin American economies you have to keep in mind and put in your figure that there is a devaluation. What happened this year that we have also, let me say, something that may not be necessarily structural because we had the appreciation in three months, the strong appreciation of the euro against the US dollar. The US dollar is the currency that drive the South American currencies. So we had, let me say, a not structural impact related to a dynamic of the euro that was just against US dollar. It was not because of South America. So part of this spike should be recovered. When we look at the compared to the capital market day, we have, let me say, a more positive scenario for the Latin American currencies, but now that we have the state and our guidance, we have updated this scenario, so we have a scenario that is in line with the projection and the forecast that you have today, and also in our books for the staff of the year. Thank you.

Do you expect to record any impact from the blackout of chronic pain?

For now we have a negative impact for the cause of the ancillary services, but this is part of the... I don't know if... This cost in Italy, for example, is booked by Terna. In Spain, this cost is booked by the company in the cost of sourcing. So it's something that's why we expect in the second part of the year to not have this impact because sooner or later all this trend disappear or we have to consider this as structural cost of the service and you have to increase the tariffs. But as is normally in each segment, in each sector where you sell something, you have to consider the cost of the service or the product that you sell. Moving back to the breakout, normally the breakout is something that you should understand what happened from the DSO. in this failure, this situation that is not clear exactly what happened. And ESA was never mentioned as a potential operator that had any relation with the breakout zone. We could have the action from the customers of Endesa and we didn't receive anything significant, so we didn't have any, we didn't, if the question is for impacts in the books, we have no reason to put today a figure as a potential liability related to the blackout because we do not have, let me say, the complaint about this. We do not have any evidence that Endesa could have a responsibility in the blackout.

Thank you. There are no more questions, so the Q&A session is over. We cover all the main topics. If something is missing, the IR team is available for follow-ups after the call. Thank you to everybody. Thank you. Bye.