Leonardo Spa Ord

Good afternoon, everyone, and welcome to our Q3 and nine months 2024 results presentation. I'm Valeria Ricciotti, head of investor relations and credit rating agencies. Today, our CEO will take you through the progresses that we've got during the first nine months of this year and how we are positioning looking forward. And our CFO, Alessandra Genco, will then take you through the Q3 and nine months 2024 results and performance across the group. We will then welcome your question. The call is planned to last no longer than one hour and a half, including the Q&A. The supporting slide presentation is available for download by registering to the webcast, and all the Q3 nine-month results materials are available on our website under the Investor Relations sections. Please note that throughout the presentation, we will be making forward-looking statements, so I invite you to refer to our safe harbor statement, which is the available on our presentation and applies to this call as well. And now I will hand you over to our CEO, Roberto Cingolani.

Thank you, Valeria. Hello, everybody. Nice to see you digitally again. So let's go with the presentation of the third quarter, 2024. Okay, this is the agenda. We'll start with the execution of the industrial plan. So before... showing you the data of the quarter. I would like to remind you that tomorrow it will be exactly 18 months. So we are at the midterm of this mandate. So it's a special occasion, despite the Q3 normal is not so exciting. But this coincides with our midterm report. And I would be happy to tell you, I would like to tell you what we've been doing in this first 18 months. So first of all, I think we developed a technology roadmap that was rather innovative, giving a vision and some ambitious industrial plan that were actually timely and appreciated by the defense institution, by the peers, the other companies, and I would say also by the market. So the industrial plan delivery was an important point of this midterm report. Second, we set up the strategy for the internationalization and for the creation of industrial alliances In this respect, the delivery, main delivery is the new joint venture that I'm going to introduce you later during the presentation. And the third was we launched a deep SWOT analysis of Leonardo to start the transformation into a more profitable high-tech global security multinational company. In this respect, the main deliveries were the saving plan that was started, the reinforced capital allocation, the divestment of core business, and many other issues dealing with reorganization of the corporate. The numbers are good. You will see in a minute. Numbers are very good, but we're convinced there's still a lot of work to do. And in the next 18 months, we're committed in pushing the industrial plan execution and creating new business sectors, accelerating on better efficiency, better margins, and improving our capability in handling and disciplining capital allocation. And finally, we want to tackle the historical weakness of our structure division that was amplified lately by the Boeing crisis and the new industrial plan of the space division. All those things will be introduced to you in a few minutes during this presentation. Can you go ahead, please? Thank you. So those are the numbers for the company. In the first column, you have the comparative column of the third quarter of 23. In the second column, we have the pro forma that includes telespazio. I'm sure you remember that we consolidated telespazio starting on January 24. So in order to compare the numbers, we'd like to propose you the third quarter of 23 and the pro forma quarter of 23, just like if we had included telespazio in the KPIs. And those are the numbers of 24. So you see the new orders growing by almost 8%. Revenues are growing by almost 12%. EBITDA is growing by approximately 15%. Reaching 766 millions. Return on sales is increasing by 0.1 compared to the pro forma. We are working on the efficiencies as before. The free operating cash flow has been increasing by 13.7%. The net depth has been reduced by 19%. So, in short, the financial KPIs are positive. And to be honest, we would increase guidance if there were no exogenous problems, primarily the Boeing situation versus aerostructures and the telco business versus Thales Alenia Spazio that are not really positive for us. So we feel at the moment that we should confirm the guidance on 2024, even though the numbers are quite promising and apparently things are doing very well. Just in short, because then Alessandra will give you much more detailed information, helicopters continue the strong orders and revenue growth. We're focusing on efficiency to improve order, actually revenue versus margin increase. We have double-digit 15%, 13% growth in orders and revenues, 7.5% return sales. Cybersecurity is undergoing a strong increase of all KPIs. This proves that the so-called intensive therapy or intensive care we did at the beginning of the year is giving good results, and apparently the shift towards a very attractive market of the cyber division is returning very good results, 21% increase in orders, 11% increase in revenues, we moved towards 5% return of sales. Those numbers were by far worse one year ago. DRS confirms a strong momentum, 9% return of sales, 12% return orders, increase of orders. Aircraft still confirms very high margins, which I should say the best in the company. Orders are affected by shift of some commercial operation dealing with the 346 and C27J, but this is just a temporary shift that has nothing to do with the performances. And so we are confident that things will grow as usual. We just have to wait for a few months because some of the campaign are shifted by a few months because of political reasons in the customer countries. About our structures, I will talk to you later. We have a plan to show. Telespacio is giving good numbers, fortunately. You remember Telespacio has been consolidated from January, so it's one year, almost one year now. It is experiencing good momentum after consolidation. The new space division is under construction. This was launched officially September 30, so the other components of the space division will be accounted for in a few months. I will show you what is the situation, but we should commend Telespacio because the orders are increased by 12%, revenues by 10%, And return of sales is approaching 8%, much better than the recent past, so we are very happy about this performance. But of course, Alessandra will tell you much more in about 20 minutes. This was just to give you a flavor of how things are doing. All right, so let's go to the next slide. I want to remind, but I'm sure you remember very well, we have two pillars, strengthening the core business and pave the way towards new technologies and products for the global security challenge. This is primarily space and cyber. Those are the legacy products, aircraft, helicopters, electronics, and so on and so forth. And I'm sure you remember, we were separating the organic growth, the efficiency boost, and the inorganic growth as the three pillars onto which we create the financial strategy. Now, let's see the execution of the plan so far. About digitalization, main delivery in organic growth was increasing the digital content of all our products, data fusion and data analytics. This is now being applied primarily on helicopters and aircraft, but it's being extended to many other areas such as space and cyber. And we launched very recently a new multi-domain innovation hub. That is a physical place where our engineers are coexisting with the military forces of the country to develop the multi-domain picture that will be for the national defense. This is located in the Tiburtina plant where we have the electronic facility and it's a very important point for us because we are mixing the military expertise with the engineers and the technical expertise to be very practical in the implementation of the multi-domain strategy which is at the basis of the future development of the company portfolio. The portfolio streamlining, this has something to do with the efficiency boost that we promised. I'm sure you remember that recently we sold the under marine business unit, rationalizing the portfolio of electronics, And this is actually doing very good numbers at the moment. According to the best forecast, the orders were growing. You remember this. I'm sure you remember that the conclusion, the finalization of the cell is supposed to be in the first quarter of 25, and the orders are already exceeding the expectations, so we should be at the maximum value of evaluation. That was 415 million, so we are quite satisfied with this. And also we exited non-core business such as divesting the Industria Italiana autobus for electric bus fabrication and Sky-Dweller, the solar-powered drones. And you will see later in another plot that has to do with a saving plan that this brings in a remarkable saving of money that contributes to the good performance in terms of free operating cash flow and savings. Organization and governance. The main deliverable here is the definition of new integrated division space. There will be a specific slide for that in a few minutes, so I'll give you the taste. This is, again, part of the organic growth. And about the setting plan, so again, on the efficiency boost, I will show you in more detail the job we did about accelerating the efficiency plan, developing a new class of KPIs to measure in a quantitative way how money is saved, basically. And at the moment, we confirm the expectation for the fiscal year 2024 of saving approximately $190 million. The original forecast was 150 for the current year, but apparently we cannot perform this number. Of course, this means having more flexibility over the next years. I will give you details in a few minutes. Concerning higher structures, this is again organic growth. You will see in a few minutes, in the continuation of the presentation, a new reactive strategy for the Aerostructure Division. In a nutshell, we realized we cannot go inertial anymore. We cannot trust anymore a single customer, undiversified production. So we decided to elaborate a new scenario. This will be officially presented at the beginning of 2025 with the update of the industrial plan, presumably before the end of Q1 2025. But I will give you some of the elements we are working around. And now let's go on the inorganic part. Actually, those are left at the bottom just because now we will start with a presentation on those specific initiatives. I would say that the most important initiative that we launched recently was the creation of the joint venture with Rheinmetall in the land domain. That's paving the way for the land defense strategy that Leonardo's launched as a concept a few months ago, one year ago. And on the same footing, We are progressing quite fast on the finalization of the GCAP joint venture, and we can anticipate the GCAP joint venture will be very likely signed between the end of November and December because the three member states and the companies finally found a good agreement that will give you the details in a few minutes. So those are very important actions in terms of inorganic growth and merging to create giants that can compete at global level with the other giants of defense. And finally, about merger and acquisition, I'm sure you remember we had in the inorganic growth, we had a component that was merging with giants and then a component that was acquiring small companies, keeping the concept that The cost of the operation should never exceed 15 to 20% of the turnover of the division that is acquiring a startup or a company. So I will update you in the course of this presentation. There are a number of opportunities. At the moment, 14 due diligences. One half of those are already completed, so we are waiting for response from the companies. And those are primarily in cyber, then in space, and one on unmanned systems. So this is actually what has happened over the last nine months. Let's go, let's start with the description of the Leonardo Rheinmetall Joint Venture. I think you've read extensively on the international press. So this will be named the Leonardo Rheinmetall Military Vehicles Company. It's a light joint venture established on October 15, The headquarter will be in Rome and the production site will be in La Spezia in Rome and in Dusseldorf. The aim of this initiative is to create a new player in EU tank production and in general land defense vehicles. Just for your practical information, if we can turn the camera, the key point will be, as a first set of orders, will be to satisfy the request of the Italian Army about renewing completely the arsenal of land defense machines. And there will be approximately 100 large main battle tank systems based on the Panther platforms. and approximately 1,050 infantry vehicles based on the LINCS platform, this smaller machine here. And actually, you should be aware of the fact that those will be multipurpose machines, having more than 16 variants for different applications, from infantry vehicles to logistics, anti-aircraft, anti-threat, and so on and so forth. Actually, the program for the Italian initiative as a value of approximately 23 billions, depending on whether we are dealing with the main battle tank or with the infantry vehicle, the small one, this one here, this bunch of money will be spread over 10 or 12 years. I mean, generally speaking, we're talking about a long-term plan that will start essentially now, and being completed between the 35 and, in some case, up to the 40. Of course, this is only the Italian part. We aim at acting like a catalyst for European cooperation. The machines will be state of the art. Leonardo will be in charge of mission systems, electronic suites, weapons integration. And there is a very clear work share that has been established with the partners of Rheinmetall. And it's a work share that is approximately 50-50. For the specific case of the Italian supply, it will be 60% of the job will be done in Italy, 40% in Germany, but of course we kept this very flexible for export because we know that being those machines state of the art in terms of interconnection, defense, electronics, and all kind of technical characteristics, we expect those to become very important for export and we evaluate that the joint platform for future land programs should serve customers in other EU countries, identifying a market in the range of $50 billion. So, actually, we better do a very good job in terms of new technology on those platforms, because this will open up a much bigger market than the Italian one only. Now, this is how the joint venture Rheinmetall Leonardo will start working, and we expect to deliver the first machines in a couple of years, the light machines, and maybe in three years the first machines for the main battle tank. And we are already working, and we're now fixing some of the details of the joint venture, appointing the CEO and the chairman. That will be rotating between Leonardo and Rimetal. And we're very happy because this seems to be very fast. I mean, I'd like to remind you that this started in June. So after five months, we are up and running. It's very important that we deliver fast what we promised in the plan. The second important initiative has to do with the GCAP. There was an acceleration recently. Member states, UK, Japan, and Italy have been working hard, and the companies Mitsubishi have indices in Japan, BAI in UK, and Leonardo in Italy found a very good agreement at the moment, so very likely we're going to sign and create a joint venture before the end of the year. The development contract is for 10 years at the moment. The Italian Minister of Defense has already allocated $8.8 billion. I roughly estimate more than $40 billion overall already allocated for the entire contract. The governance has been defined, and we have also set up the rules for the appointment of CEO and managers. The world share allocation and the key terms have been agreed. There has been a lot of work over the last couple of months. There will be four sites. The headquarters will be in the UK and NATCO, the national headquarters, will be in all three countries. There will be equal rights among all partners. And actually, the part of work shared that will deal with Leonardo is about flight system integration, weapon integration, training integration, and the number of activities for the mission system. Weapon effect management system, flight system, such as the flight control systems. All of this becomes very important for the future extension development of the GCAP as a system of system technology. So we are particularly happy of this agreement. Because, of course, this is also very important for future updates and upgrades. It takes value of the technology developed by Leonardo in a central way. And, of course, it opens a lot of future technologies within the system-to-system frame. This is the plot, the image, the rendering of the GCAP that you might have seen already at some international exhibition. So we are finally entering in the hot phase of the program. Hopefully, by the presentation of Q4, we'll bring you more data on the final JV after signing the final agreement. Let's go now on the merger and the acquisition activity. This is a very dense slide, but don't worry, I'll be very quick. There are approximately seven targets. For obvious reasons, we cannot disclose names and many details from different countries. Overall, the due diligence are 14. Seven are quite ahead. The business is primarily in cyber. Those are the issues, service and solutions, cross-domain solutions, network security. One is in space. Another one is in drones. The other one is also cyber. They are all quite ahead, so due diligence either ongoing or completed, and in some cases, we are finalizing the agreement or waiting for a go, no-go decision by the counterpart. So that has been the effect of the intensive work done with those companies. For your information, I'm sure you remember we promised to stay within 15 to 20% of the turnover of the divisions. And indeed, we report here an indication of the turnover of those companies. You see, those are from very small to, let's say, mid-size, around 60 million. So if you accept the idea that there is an EBITDA in the range of, I don't know, 10% or so, and you have multiplying factors in the range of 8, 10, 12, depending on the sector, you see that we made the specific selections of companies that will bringing new technologies, new capabilities, or new products that it is at this point easier and cheaper to buy than to develop in-house. And this was a criterion that we promised since the very beginning. That's why we did such kind of selection. It's a lot of work, of course, but I think I will pay back. Okay, let's go now on the... on the other important delivery, the other important promise that we did is cost and efficiency. Now, you remember that that was the plot that you still find in the presentation of the industrial plan. The idea was to realize, to accomplish savings for approximately 150 millions in year one, this current year. Well, to be honest, we started, we launched the program, the industrial plan in March. So it's only seven months from now. So this is not even not one year. But okay, we're accelerating, we're pushing like crazy. Now, for the nine months that we're considering now, we can expose approximately 150 millions of savings with a forecast of 190 millions after 12 months. Now, let me tell you which was the difficulty. Making a quantitative assessment of the savings is not that easy because you cannot simply compare what you spent this year compared to last year because conditions are changing. Headcounts, number of travels, or consumption of energy, inflation, raw material costs, and so on and so forth. So we need KPIs. Most of the effort done so far was not only saving money but also identifying KPIs that are significant enough to have a reasonable estimate of the savings. For this, CFO, planning and control, engineers, strategists have been working together, including the procurement organization. Just as an example, this is a bit boring, but I would like you to understand how much work there is behind. For instance, travel rationalization, I remind you that there's 58,000 people in Leonardo, so travel matters. Travel optimization, rationalization, brings in $13 million savings. In order to evaluate this, we have to develop a matrix. For instance, we found out that the average cost per day in the lodging is diminished by almost 9% on average. International flight costs diminished by 4%. National flight costs by 3%. Average train costs by 16%. Even revisiting agreements for roaming and international phone calls, mobile devices, and so on and so forth, has resulted in a reduction of 34% in the total cost. Real estate has been optimized, and now we can estimate 24% reduction in cost per square meter. Of course, this includes all services. cleaning, securities, and so on and so forth. So it's a huge effort for a company having more than 100 sites in the world with different buildings, quite complex logistics, and so on and so forth. The corporate cost has been kept under control in the seven months. We can ensure that this year we will spend the same amount of money that we spent last year for a corporate that, by the way, had much more expenditure for security that has become an important central cost because of the international situation, for personnel, and for information technology because the digitalization has a big cost, actually, and to keep under control inflation. This will improve and we will see important savings now with the new budget for year 25 on which we are already working after having learned the lesson and having developed the right KPIs. Direct procurement so far has been Under control, primary savings were aimed at the containment of inflation. That was successful, fortunately. And then business and product disposal, that I told you before, exiting Industria Italiana Autobus and Sky-Dweller, accounts for approximately $30 million per year, Industria Italiana Autobus, and $50 million per year, the Sky-Dweller. So those were non-core business programs, and it was successful. fair to quit them because they were never taking off as products. Now, least but not last, the organization streamlining was very important. We have reduced the participated and associated company that we have in all countries where we do have representative offices from approximately 151 to a bit more than 100 by clusterizing and making efficiency. And this has resulted in 2.5 million savings. And the complete redesign of the foundations controlled by Leonardo, the Leonardo Foundation, the Medor Foundation, and the Anceldo Foundation that are making outreach and geopolitics and so on and so forth, has actually cut by a factor of two the investment. We saved 4.5 million starting from 9 million yearly investment. So this is just an example, but I think It gives you an idea on how specific and how detailed and serious was the job we did in order to make a quantitative assessment that is as reliable as possible. Let's go now to see the new space division. That's another important delivery. We promised, you remember in the industrial plan, we promised to create a new division because Leonardo asked to be perceived as a company that makes space technology, space economy. Last year, when we started, we were only a controlled company. We didn't consolidate anything, and so in the balance sheet, there was no real existence, no real presence of the space activity, but for the dividends. So we made a new division. We are creating, we are preparing the industrial plan. The new division, the new space division, It relies, first of all, on the financial consolidation of Telespacio. That's very important. You remember this was the first good news in 24 years. Then we carved out a business unit of the electronic division that was entirely dedicated to space electronics and space robotics. This is now, it's about 500 people carved out and moved into the new space division. Of course, we rely on the Thales Alena Space Italy factory with the exploration capability. There's a lot of hardware, very high-end capability. We have incorporated E-Geos, which is a company 80% Leonardo and 20% the Italian space agency, primarily dedicated to geoinformation. and ISR capability. And, of course, we have allocated a substantial part of the high-performance computing and AI capability to the space division because this will be a data-driven division for data collection and analysis for end-to-end satellites. Now, end-to-end satellite services. Now, the new business model, as I reported to you at the very beginning, will be no SATCOM for us, no launchers. And a specific choice on end-to-end satellite services, primarily information and satellite services such as energy, governmental services, maritime, different utilities. Space awareness domain, space traffic management, mission operator in ground infrastructures. There will be, of course, defense and intelligence applications. Those are mandatory because we are also using important public, as in any country, institutional money. There's a lot of work in cloud in space and exploration. We are trying to move computational capability directly in orbit. And, of course, exploration is one of the key points, the key capability of Leonardo through the TASI components. And then a lot of work on low Earth orbit and lunar space economy with new programs that have been recently accepted. So this new business model is being now elaborated and transforming into a business plan. We will present the new industrial plan that we will release on the first quarter of 2025, together with other news that I'm going to tell you in the next few slides. So far, the organization of the division is almost completed. The new division director has been appointed. It's a world-class space expert, Massimo Companini, that has 25 years, 30 years experience in the field. At a European level, definitely one of the key characters. We have appointed the new CEO of Telespazio, the new CEO of IGEOS, the new CEO of Thales Alenia Spaz Italia. And we're now working quite intensively with our partners in Thales because we have now a few ideas that we are sharing, we are analyzing together, in order to modify and evolve the Space Alliance towards a more oriented industrial plan, such as the one I told you, the end-to-end satellite services, which is a common interest, because of course we need constellations, we need high added value services, primarily based on capability and computation, AI, And there's a plethora of application domains that I've shown you before, and I think this is of common interest. And, of course, there is an ongoing discussion with peers at the EU level, because we are all aware of the fact that space needs to be boosted in Europe, and I think big companies should consider together how to ally and how to do something with big critical mass. This is a discussion ongoing. I can't say much more than that, but just be aware that we are discussing on a very solid and grounded basis about future potential alliances and collaboration to be competitive with the American space industry and also with the Chinese and Indian space industry. So next appointment will be Q1 2025 when we will release completely the business plan and the strategy. All right, so let's go now quickly to another important point, which is aerostructures. About aerostructures, basically we have to focus a little bit on the problem we are having related to the Boeing events in 2024. There is a short story here that you can see. In June 24, there was a reduction in the volumes of the 787 by 25%. In September 24, there was a strike on the 737 and 767. On October 24, there was an additional delay in the 777X and 767. In November 24, there was a labor contract renewal approved after seven weeks of strike. And in November 24, so after a few days, there was a second 787 reduction by 11%. So to be, I mean, to simplify a complex story, if you see the total shipment we rely on, we went through three plants, Z59, Z60, Z61, and the shipment for 2024 were 80,000, components according to the first plan, 55 according to the second, reduced to 49 according to the third version. And considering 2025, the forecast originally was 112 shipment, then went down to 97, then went down to 81. The collaboration with Boeing is actually, I mean, we have to acknowledge the very good will of Boeing to find an agreement. Our teams were working together trying to find a solution. And I think we both made our best. But unfortunately, this is not enough for us to keep the division running. I mean, it's true that we have essentially five plants, four plus a minor one. Three of those are doing relatively well. The one in Grottaglia, which is primarily involved in the 787, is the one having more problems. But the point is that the civil aviation technology in this moment is rather critical at global level. And, of course, we are impacted by the situation. In a few words, in a nutshell, we did a strong assessment, a very detailed assessment of the aerostructure capability in Leonardo. And the industrial challenge is very clear. Our maximum industrial capability is based on 4.5 million hours of engineering and capability basically. The average workload that we might expect in the best case between 25 and 29 amounts to 3.2 million hours. So that part missing, which is 1.3 million hours, is hard to replace if we stay on an inertial scenario. So the unused capacity is a burden to the economic and financial position of the division. And, of course, on top, you have to consider the impact of inflationary pressure on materials and labor costs. So the combination of those things, it's, of course, not very easy. And I think it was time to make a very detailed analysis such as this one because we need – let's say staying still is no longer an option. We cannot continue with this – with the pace we kept so far based on a single provider and supplier. So we have a team with international advisors, our engineers, the people in the division, people, financials, and we're trying to study different scenarios. Scenario number one, that was the initial one that was kept for many, many years is no longer an option. So we are not able to wait anymore for the solution of the situation of Boeing or any other supplier. We cannot wait. We cannot survive otherwise. The second scenario is an improvement scenario. We are introducing new programs, including military product. We are enhancing the industrial efficiency with a strong focus on automation. And we are studying incremental optimization of the cost base and supply chain. That's a big, big issue. I mean, I can tell you that after our analysis, we found out that 80% of our supply chain is based on suppliers that operate in countries where the cost of labor is very high. I mean, maybe the quality is good, but the cost of labor is very high. So we have to find a tradeoff for that. Our competitors are relying on the opposite fraction. 80% are coming, approximately 80% are coming from countries that have low labor costs. So this is of course an optimization we are working on. It's already ongoing, but very likely is not self-sustaining, though necessary in the short term will not be enough. So we decided to go ahead, and we're now elaborating an end-to-end industrial transformation, which includes cost structure repositioning, the reconfiguration of the footprint of the division, restructuring of the supply chain, which is not simply optimization, restructuring. We are analyzing new business opportunities. There is a focus on diversification, on higher profitability segments. Of course, those things are still under study. But the important point is that all this will be implemented with financial and or industrial partners. Basically, we have to think in a totally different way and preparing alliances that can make the The division is very attractive on the international level. The quality of our manufacturing is outstanding. The situation, however, needs an evolution that goes towards maybe a carve-out and the creation of alliances to do something that can compete a global level on the market. So we are working on that. This is under construction. The team of people that we constituted together with the international advisors is already in contact with financial partners and other partners. So we are studying all the scenarios. And this will be presented, again, at the update of the industrial plan, first quarter of 2025, together with the Space Division and a few other news. So this is to tell you that we decided to accelerate no longer an option is the inertia scenario. I mean the inertia scenario cannot be any more used as possible scenarios for the future. Now, I conclude with some good news about the sustainability. This is an important part of our sustainability action. You have the slide. I don't go through this. But it's very important to see that Leonardo is making an effort on all the most important ESG parameters. And we're always among the best, maybe the first in class, among the top three, top four, sometimes top ten in a very vast plethora, vast group of companies, not necessarily only in aerospace and defense. This is important for our sustainability balance sheet. This is the complete report that we have every year. We will insist, we will invest, we will insist, try harder because we want to keep this leadership and we want to improve where we can improve, where we already have leadership. We want to stay at that position. I mean, one for all, standard and poor global assessment, corporate sustainability assessment, we are in the highest score in the entire compartment of the A&D. And I can tell you the data are very interesting, very good. And I think our sustainability division, the sustainability unit is doing a very good job. And I think this contributes to increase the reputation of the company together with the KPI, financial KPI that I've shown you before, and together with the technology roadmap that we have established. I stop here. It was a bit long, but as I told you, this was a midterm report, not simply Q3. And I think in a midterm report, after the half of the mandate, you have to be aware that we have a great attention on delivery great attention of capital allocation, great attention on saving money, and great attention to future technologies, innovation, because without innovation, Leonardo will never take off, will never take the right position in the international scenario, and least but not last, great attention in joint ventures and internationalization. As I told you, no one can make it on its own. We have to think bigger, and I think we are on the right track for that. Thank you for your attention, and now I give the stage to Alessandra.

See you later. Thank you, Roberto, and good afternoon to everybody.