Global Dominion Access Sa

Buenas tardes. Bienvenidos a la presentación de resultados de Dominion. Welcome to Dominion's results presentation. If you want to follow this presentation in English, you can do so selecting the English language on the world icon at the bottom of your screen.

Before we start, I would like to remind you that once the presentation is over, as usual, we'll move on to the Q&A session. You can leave us your questions in writing under the heading of Zoom for Q&A, or you can call in via the telephone or raising your hand on the menu. So let's kick off with the presentation. We have Patricia Verjon, who is the Director for Corporate Development. Good afternoon, everybody, and thank you very much for attending this call. The results of the first quarter of 2024, as you know, we held our AGM yesterday, where apart from approving the results of the 2023 fiscal year, we approved the renewal of the members of the board. And we also paid out 15 million euros in the form of dividends. And Miquel Barranderán, our CEO, also reviewed the non-financial information and our performance in the area of sustainability, an information that is becoming increasingly relevant for our stakeholders. And he also took the opportunity to talk about our performance our sort of position in relation to activities connected to sustainability and to the transitions of our strategic plan, that is the energy, digital, industrial transition that are transitions that are addressed by society and more particularly by our customers. But as regards the figures for Q1 that we published this morning before the market opened, we've seen that the quarter doesn't have major headlines as regards the evolution of the business. So we have continuous growth in organic terms with clear improvements in terms of operational profitability. In other words, we have organic sales. that compensate or are even greater than the sales that we eliminated that are very few. They make a very low contribution to the margin. So this shows that our current roadmap is suitable to give our businesses towards the most recurrent, profitable, and resilient businesses or activities. So now that we're growing organically with good profitability levels and we have decreased inorganically in activities that are less profitable. But to correctly interpret the financial statement, we have to take into account several elements. On the one hand, we have this negative inorganic growth that we mentioned due to the restructuring of our retail business, and as you know, this meant that we closed down the physical shops in 2023. which means that we have lower sales of our mobile devices because we reduce the sales platform and this doesn't have any impact on the margin because these devices produce practically no profitability and the inorganic effect has been about minus 10 million euros. And secondly, during Q1 of 2024, we also had to address payments of nearly 90 million euros. And the most important was the payment of 67 million to INCUS in the month of January, followed by the disbursement of 12 million euros for the purpose of our own shares. And in particular, it was in the month of March when we bought 2.6 million shares that reach the other 1.5 million shares acquired in 2023 and 2022 and which will be purchased by the management team according to a plan that has been designed for a greater stake in the share capital of Dominion. So that means that part of the Directors will become shareholders which shows that they do trust the shares and they are also fully in agreement with the strategic plan of this company. But going back to the figures of the quarter, organic growth at a constant currency of the business figure was 5.2% whilst the total growth of the company has remained practically flat. plus 0.6% as a consequence of the inorganic elements that I mentioned previously. And the effect of negative forex has been minus 1.2%. As regards margins, I'd like to say that the operational profitability of the business is improving. And this proves that this inorganic effect not affect the margins but rather the strategy and the strategic plan that was presented last year is correct. I would like to remind you that our strategy consists in focusing on activities and businesses that are more profitable and reducing those activities that have lower margin profiles with investments and divestitures. margin over sales of 12.3 percent and this means that we've gone beyond the barrier 12 percent for the second consecutive quarter and we've improved compared to the profitability reported in the first quarter of 2023. Amortizations have been stable compared to the same period of the previous year about 15 million euros. Well the main differences that are results from our renting business for mobile devices and the effect of IFRS 16. As regards finance and expenses, they have increased because of the payment commitments of this quarter that I've already mentioned because compared to Q1 of 2023, interest rates are higher. And in this quarter, financial expenses reached 10.2 million euros. So this means that we have a profit in continuous operations of 9.3 million euros and an attributable net profit of 7.3 million after considering the interrupted activities that refer mainly to the financial expenses of the Cerritos wind farm, which, as you know, is about to be divested. But let's move on now to the behavior of each one of the business segments. And we're going to start off with sustainable services that maintains a weight of 70% of the Dominion sales and has reached a business figure of 194 million euros. And organic growth in this segment has been very positive. We're talking about 6%. And therefore, this is above the target that was established in the strategic plan. And even so, our sales are flat compared to the same quarter of the previous year because it's in this segment where we can see this inorganic effect that I spoke about before. and we expect it to reach the halfway through the year, and that's when we will have sales platform that compares to what we had last year. As regards the contribution margins for sustainable services, this quarter we will reach 12%. In other words, it's a margin that is 7% higher than the one reported in the same period of the previous fiscal year. and this improvement in margins is possible thanks to that approach from the company in terms of services with higher margins and in services that are more related to environmental services and because of the decline in these activities with lower margins. And there's also been excellent behavior in the case of telecommunication service contracts and they've behaved perfectly well in the last few quarters and therefore in this first quarter of the year both in Latin America as well as in Europe with Germany as a success case for the company. And in the 360 degrees project segment, we've reached the sales of 86 million euros, which represents a growth of 1.5% compared to Q1 of 2023, which is 3.2 in organic terms. As regards margins, this quarter, they stand at 18.7%. They are somewhat more normalized, but they are far above the target established in the strategic plan for this business segment, which is 15%. This somewhat more moderate growth is characteristic in seasonality, the seasonality that projects have when we look at an isolated quarter. And in this case, we are dealing with a transitional quarter within the framework of renewable projects because as we mentioned in the call of 2023, the execution of the parks in the Dominican Republic is being closed and we are transferring the activities towards the European market where we will start with an execution in Italy over the next few months. And as regards the portfolio, on the closing date of March 2024, it stands at €618 million, where renewables have remained practically stable and where most of the additions happen in the area of industrial infrastructures with projects that are about to be put into motion. And we also have to underscore the successful execution in a record time in Chile of the design and construction of a data center, a project that could not only represent a major success but also the fact that new similar contracts will be awarded. And finally, we have our stake in infrastructure that is still providing something like €3.5 million in turnover and €2.2 million in EBITDA per quarter. This is very similar to the figures reported last year because we have the same wind farms in operation. because of the global integration, because of the global consolidation, and the 281 megawatts that are under construction refer to those wind farms that we said were made in 2023 in the Dominican Republic and which right now are undergoing a connection process, so therefore they are about to enter into COD. And then we have the other one farmed in Perritos that is also about to be connected prior to be completely divested. And with this, we've just reviewed our business and also the different elements of the financial statements. Thank you very much for your attention. And now we're going to be moving on to your questions so that we can answer them accordingly. Thank you very much. Okay, we're going to start off with the questions. If you're connected via Zoom, you can ask in writing through the Q&A section, or you can raise your hand by choosing the button in the lower menu, and we will give you the floor. Should you be following the presentation via the telephone, please press asterisk 9, and we'll give you the floor. And we're going to start off with a Q&A and giving the floor to the people that have raised their hand. And please make sure that your microphone is not too silent. Firstly, we have Enrique Padón from JV Capitan.

Hola, buenas tardes.