Global Dominion Access Sa

Thank you very much for coming to this presentation, this earnings release. I think that we are all aware of the fact that we are at an extraordinary quarter because it's something that we cannot compare with the past and it shouldn't be extrapolated in relation to the future. But this does allow us to interpret how ready this company is to adapt to situations in which the activity has slumped and how resilient the business is and how resilient the margins are too. the behavior that turnover has had under this situation is out of control of the company. And even so, the behavior has been very good. And this is thanks to our diversification, that is geographic and of other kinds, and to the presence in businesses that are growing with recurrent income. And then the limited drop of margins, which means that we've closed the semester without any losses, shows how quickly our team has responded and, above all, how flexible our cost structure is

And not only that, but because we have to take into account that these margins do not pose a negative scenario.

But together with this behavior of the profits and loss account, we have a balance sheet that is still strong, thanks to the generation of positive operating cash flow that has to do with very efficient management of the working capital of balance sheet expenses and thanks to the contestative capex. There's a fundamental message, and that is we're dealing with a business which, in view of such a complex situation, has been resilient, flexible, and solvent. But before we move on to the details of the figures, I would like to mention the last corporate operation that we've been carried out. It has to do with the sale of the company dedicated to maintenance services of telecommunications networks for Telefónica in Spain. These are mature contracts that we've operated for a long time, and where the improvements in efficiency were very limited. And this is why, according to our strategic plan, we have prioritized activities and geographies where we have a global vision of the value chain and where our role allows us to implement efficiency improvements. The price of the operation, covering all concepts, reaches €13.5 million, which means that there's a capital gain of about €7 million. But it's important to bear in mind that these activities were related to a significant funding of working capital and that its sale has reduced our factoring by about 10 million euros. So both the capital gains in terms of the P&L as well as the impact on the balance sheet have been covered by the accounts of this semester. And as regards to future quarters, as from July 1st, we will deconsolidate this activity that represented about 25 million euros in annual turnover. But moving on now to the details of the figures, We have a half year with a slight slump in sales of 5%, with a net positive result of nearly 1 million euros, in other words. And we think and hope that this is going to be the worst quarter of the year, but we have not got negative figures yet. So these are figures without an inorganic effect. So what we can see is that what the acquisitions of Alderna and biking brought about in the first quarter has been compensated by the loss of turnover due to the divestiture of our IT services that we carried out in the month of September. So therefore, the evolution that the business figure has had in this half year is due to a forest effect that has a negative impact of minus 2% and also because there's been negative organic growth of minus 3%. So in other words, a reduction of activity of only 3% in this context means that our business was obviously in a clear situation of ex-COVID growth. As regards margins, they reduced by about 15 million. And these margins include negative one-offs of more than 5 million euros. So what we have in these one-offs are, for instance, with positive effects, we have the capital gains arising from the divestitures that I've just pointed out. And the negative effects are staff restructurings, provisions for situations that are related to COT, also stock provisions and insolvency provisions. So maintaining these margins in view of the slump of our activities is very good news because without the one-offs and even with the one-offs, the adjustment of costs has been spectacular. We have activity levels that are below the normal levels and we have become more efficient and we've not mortgaged the recovery that is getting closer. So we can see that there is a recovery of our activity and we cannot harm this substance growth and we must maintain the pool of knowledge and the necessary resources to address it. We have also made the direct costs much more flexible in terms of leases, machinery, vehicles, and we've also changed the size of our staff. and supported by measures as those adopted in countries like Spain. And you know that we've been very active in adopting other measures. We've reduced structural costs by implementing different actions. We've maintained the levels of CAPEX that are very controlled, but reduced the levels of amortization. And we've controlled financial expenses, even though we've had larger lines of liquidity. And as I said at the beginning, this means that we have a net positive profit in this half year. And this is the picture. the accumulated picture, and this is what we usually put across because you can see our business very clearly, but it's true that if we want to visionize the impact of COVID that arose from the third week of March, I think that it also makes sense to explain what's happened in that second quarter. And if we look at this in an isolated manner, sales have only dropped 10% organically, and then we have a forest effect of minus 3%, and also an effect produced by the divestiture of nearly 3%. But If we look at this behavior by activity segments, you can see that in the case of B2B services, we have a drop on average of 30%. And it's this average drop during these very complicated months when the restrictions applied to the different activities in each country have reduced the drops of up to 70% in the most difficult moments. And the activity of this segment is associated with the temporary declosures of the facilities of some of our customers and also because there has been a slump in activity. and the effects that started in Spain and then in Europe and followed later on by Latin America and North America. And today we've recovered most of this activity, but we shouldn't lose from sight the fact that there are other regions outside of Europe where these situations are still complex. And after the adjustment measures we've implemented, we now are now adjusting contracts to the new workloads, and we still expect that there will be a positive recovery in the last quarter of this year. And in the case of the B2B projects, the 360 projects, there's been a slight slump of 2% in this quarter. And this is due to delays, in other words, temporary shutdowns. And because some turnovers are being postponed until later quarters, but we're not going to lose this turnover. And there's not an impact in terms of margins that are still very high, above 17% as regards the contribution margin. And as regards to our portfolio, we've invoiced nearly 130 million euros this half year. And the new contracts, although they haven't stopped, there have been less. And this means that there's been a slight contraction of the portfolio, which is now 585 million euros. And new contracts have appeared in different geographies. But we have contracts, for instance, in Europe, Canada, Asia, and Russia. And in the B2C segment... This is a quarter that provides a complete comparison, and here we can see a 20% growth compared to the same period of 2019. And in this segment, we have invoiced our customers in the energy or power and communications sector. We have doubled the number of suppliers compared to one year ago. And this recurrence is what explains this growth that we can see in this segment, although our physical channels have been closed until the month of June. And this closure of the physical channel and the cutbacks in terms of affordabilities have reduced less acquisitions. And that means that the level of supplies we have are at the same level of what we had at the beginning of the quarter. In other words, just over 200,000 supplies. And at this customer base, there's been an increase in defaults. because you cannot cut off supplies even though customers do not pay their bills. And this is one of the things that we mentioned on previous occasions. As regards the current situation of the opening of physical outlets or shops, practically all of them have been opened. It's practically 95%. And we started to open them as from the first weeks of June, and we've opened the shops progressively. And we were very selective with those that we had to open and with how many people in them, because they had to be profitable. We have observed, and this is a trend that has to be consolidated because it's too early to know, but what we have observed in these last few weeks is that there's been an increase in sales when the shops were opened and that there was less traffic there. In other words, that potential customers that go to our shops have a higher rate of conversion. They're not there just to look at things but to buy. And this is, well, these are the comments that I wanted to make on the different segments and on the P and L accounts, and let's move on now to the balance sheet. Well, right now, one of the items on the balance sheet has to do with the movement of fixed assets, which is minimal. We have a capex of $8 million, which is lower than amortization, and it's lower than the usual capex, according to the relative current activities. And the net operating working capital remains at the same levels as in December 2019. And it's true that there could be a significant variation as a consequence of the drop in the commercialization of devices, although we've implemented very active management where we've been able to renegotiate payments and do something about the non-connections or defaults. and that means that we've also managed to collect all the disinvestments for the projects, and we have an investment that is practically non-existent in terms of working capital, even in spite of the situation, which I believe is positive. As regards to net equity, we have a variation of about €25 million, which has originated from the dividends that have been classified as pending payment, and we have a repurchase circling about €6 million, the repurchase of shares, and Conversion differences in terms of foreign currency settling at medium. And in the case of net debt or net cash, it's still above 100 million euros. And the figure is 102 million euros. And in this semester, and as I mentioned in the case of our equity, there have been significant impacts because of the conversion of these foreign currency conversions. It's about 4 million euros negative. And we've had a positive cash, and we've also addressed the payment commitment that we had $3 million for earnouts and $6 million for the repurchase of shares. As I regard this net financial debt figure, but in terms of the gross figure and our liquidity, I would also like to point out that we signed yesterday on a couple of loans with the EIB and with equal to fund R&D plus I projects. These are two loans totaling 25 billion euros each with very long-term amortizations, 10 moments as for the moment of they become available and rates of 1.6%. It's not only wonderful funding and very good conditions, But I think that this will also allow us to generate innovative projects at Dominion. And I know that we'll be able to develop new solutions for the healthcare sector, for the industrial sector, and for smart households. And with this funding, we will maintain gross treasury positions in excess of €300 million. So this is what has to do with the P&L account and our banner sheet, but I would now like to give the floor to Robert so that he can point out the conclusions for this half-year period.