Global Dominion Access Sa

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. Antes de empezar, nos gustaría recordaros que una vez finalizamos la presentación, como siempre, comenzará el turno de preguntas y respuestas. Podéis dejarnos vuestras preguntas por escrito en el apartado de preguntas y respuestas de YouTube or intervene both by phone call and raising your hand in the interior of the Zoom. We begin the presentation. Roberto Tobillas, Director General, and Patricia Belcon, Director of Corporate Development, intervene.

Good afternoon everyone and thank you very much for your assistance with the results of the first nine months of 2024. Today we have not only publicized our numbers for this third month of the year, sino que también hemos anunciado una operación corporativa con la que avanzamos en la certificación de la compañía en la línea que ya definimos en nuestro plan 2023-2026. Así, con fecha de ayer, hemos firmado un acuerdo con el grupo Cerveo, participada de fondo por todo lo capital, para desinvertir nuestra unidad de servicios de mantenimiento industrial en España. Esta unidad agrupaba actividades muy diversas, como montajes y mantenimientos multitécnicos, servicios de facility management, automatización y logística industriales. They are contracts with little balance in terms of efficiency, circulant consumers and operating in a very atomized competitive scenario. The perimeter, which will be deconsolidated once it is produced at the end of the year, covers 105 million euros of invoicing and 4.8 million euros of life, and will include the transfer of 1,500 employees. As you can interpret these numbers, it is a very intense activity in the name of direct labor, that consume a lot of exceptional resources and with very low margins on average of the rest of our services and, of course, lower than our objectives in service of being above 12%. Additionally, these activities are not directly aligned with our positioning around sustainability. This is another of the pillars of the technical challenge. We want to focus our services and projects around areas that are supported by the tailwinds of sustainability, becoming a real facilitator for the transitions and challenges that our clients face. In this sense, we maintain within Dominion many other services and projects in the industrial field. They are those that we understand that are aligned with this strategy, such as services of industrial finance, waste reduction, circular economy, energy efficiency or emission reduction, among other services related to decarbonization. La operación está firmada por un precio de 27,5 millones aproximadamente, sujetos a la cifra final de circulante con la que se cerró la operación y con unos armados ligados al uso efectivo de bases imponibles negativas. Esto supondrá aproximadamente una plusvalía neta de 11,6 millones de euros. El cierre de la operación está previsto durante el cuarto trimestre de este año, una vez que se reciba la correspondiente autorización por parte de la Comisión Nacional del Mercado de la Competencia. For Dominion, it is a success to execute this operation for what it is supposed to do. On the one hand, in quantitative terms, putting a business in value that was no longer a priority for us and with reduced margins, and also for the entry of an important supply of cash. And in qualitative terms, it materializes strategic bases that, along with the restructuring of B2B2C last year, organize these activities, eliminating those less profitable. It is a clear advance in the simplification process that we have been carrying out since lanzamos nuestro plan estratégico. Una vez comentada esta operación, que no tiene, por supuesto, ningún reflejo en los números de estos nueve meses, vas a comentar la evolución del negocio con un tercer trimestre del año, donde se mantienen y se refuerzan ciertas tendencias que ya veíamos en trimestres anteriores. Destacaría la buenísima evolución del segmento de servicios. Se mantienen crecimientos orgánicos muy fuertes, pero sobre todo facturación de alta calidad, con márgenes operativos que en este trimestre son recordistóricos. Entrando a los números de cuenta de resultados de estos nueve meses, a nivel global se observa un crecimiento de un 1%, ya que por un lado existen casi 23 millones de euros de facturación eliminados inorgánicamente, vinculado al negocio de dispositivos móviles que fue estructurado durante 2023, es decir, que el crecimiento inorgánico resta un 2,7%, y la variación del tipo de cambio de divisas resta también un 1,2%. All in all, the organic growth of constant income is not much less flat, but practically 5% and therefore in line with the objectives that we set. We will talk about every business segment, but since last trimester we have talked about that this year we have a re-identification in the execution of projects, specifically in renewables. And yet, despite this, this global growth of 5% assumes that the strength of services with PESA comprises this re-identification. And this is a behavior that is also carried out at the level of margins. And it offers a very positive reading of the future when we return to the rhythm of execution of projects or services that are already very strong. As for margins, important improvements occur, with an average of 7% higher than that of the same period last year. Putting focus on the level of profitability over sales, we find ourselves in historical masses, as I said before, with a contribution margin of 15%, and an EBITDA of 12.5%. Remember that the strategy is to focus the company towards these more profitable activities and businesses and decrease activities with lower margin profiles. We have eliminated 30 of the lower margins with the restoration of B2C and with the operation that we were talking about today. As I said before, the important thing is this growth with quality in profitability. The amortization part se ve incrementada principalmente a raíz del crecimiento del negocio de rendimiento de dispositivos. Es un negocio que a mayor crecimiento supone mayores amortizaciones. Y en cuanto a los gastos financieros, en este caso tenemos una comparativa desfavorable porque las diferencias de cambio en movimiento de divisas suponen 2 millones de euros negativos adicionales al gasto financiero que veníamos registrando en trimestres anteriores y que todavía no siente el efecto de las recientes bajadas de tipos. Therefore, the improvement of the performance of our structure is also mitigated by financial results and the result of interrupted activities. Thus, we have achieved a net profit of 20 million euros, 26% lower than last year. This net profit behavior will change in the future thanks to the evolution of interest rates and the progressive reduction of debt. We have, on the one hand, sustainable services that increase their weight at the level of billing and margin over the total, supposing a 73% and a 64% respectively. Services that are organically 8.2%, way above the objectives and exceeding the growth rate of this segment in recent years. And it not only has good dynamics in terms of business growth, but also in terms of the evolution of margins. 12.6% accumulated in 9 months is a record profitability that I consider very, very reliable in the world and in a segment such as service services. We are clearly betting because this segment is of high added heat and, of course, sustainability-centered. And we are collecting the results of the measures implemented and that, as you can see, we are still implementing. The strength of this segment is very relevant in the measure that is a segment with a recurrent characteristic and that, therefore, gives us a very positive visibility of execution. The segment of projects 360, we have already mentioned that it has realized its execution rate compared to the past year. As we already mentioned in the semester results, the reason for this realization is related to the minimum execution of renewable projects. However, for the rest of the projects, whether they are industrial or infrastructural, the execution rate has been expected and with the same profitability. continúan muy por encima de los objetivos y superan de nuevo el umbral del 19% de margen de contribución sobre ventas. En cuanto a la visibilidad futura para este segmento, hemos observado un buen ritmo de caracterización, especialmente este trimestre, enfocado en el ámbito industrial, con algunos proyectos relevantes en Estados Unidos y Canadá, y la cartera actual se sitúa en 328 millones de euros, lo que junto a la próxima recuperación del ritmo de ejecución de renovables nos da unas perspectivas para la evolución del segmento in the next few months. And finally, regarding the participation of infrastructure, the small variations in terms of business and visa are mainly related to a monetary effect. In interrupted activities, we collect the result of illegal landfills, negative in this case due to financial losses, which are already energized and pending the launch of the generators. And there are no notable variations in this segment, in addition to the fact that negotiations are ongoing. Con respecto a movimientos de balance, a pesar de que no presentamos un balance detallado o una posición de duda financiera neta en estos resultados de nueve meses, solamente invitar que la mayoría de los movimientos consumidores de caja fueron realizados en la primera parte del año, a los que añadimos en el tercer trimestre el pago del dividendo en el mes de julio por importe de 14,7 millones de euros. En el sentido contrario, durante el tercer trimestre se debataba la correspondiente generación operativa del flujo de caja. In the near future, part of the payments made in the first part of the year will be covered by the entry of CAFA for corporative operations, as we have already mentioned, other potential corporative operations and taxable operations. Finally, we are talking about this year, 2024, as a means of transformation, and I would define this third quarter as one of progress. of very positive progress, observing that the dynamics that make up the activity are favorable, and of progress because we materialize the objectives that we have set. Thank you all for your attention and we move on to receive and answer your questions.

We begin the question time.

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En primer lugar, interviene Enrique Parondo, de JB Capital.

¿Qué tal? Buenas tardes. Gracias por la presentación. Yo tenía tres preguntas. La primera de ellas en relación al guidance de BIDDA que compartisteis en la presentación de resultados del trimestre anterior de cerca de 150 millones. Confirmar que esto era orgánico, es decir, que no incluía los 11,6 millones de capital de la venta anunciada hoy. La segunda pregunta es en relación al crecimiento esperado para la edición de proyectos 360. Como comentabais, se ha incrementado de forma sustancial la parte de proyectos industriales. Intentar entender qué parte de estos proyectos se convierta en ventas en el corto plazo y qué clase de crecimiento podemos esperar para la edición para el 2025. Y, por último, en relación a los desarrollos en renovables, Si no recuerdo mal, en el tercer trimestre, iban a comenzar a entrar en servicio los parques de Washington 2, 3, Lucila, iban a iniciar la construcción de Levittals. Si nos pudieseis dar una actualización en este sentido, también os agradecería. Muchas gracias.

Gracias, Enrique. Te contesto un poco yo a todo. Guy, damos la ida. Well, and you know that it is always the policy of this house to make a result and an edict that is recurrent. What we see here is that we have a budget, a budget and a guidance committed with the council of 150 million, at least, and we will point to this figure as 150 million of recurrent life. It is true that along the lines of renewable documents, along the lines of small restructurations and other things that are done in this case, we will have some non-recurrent impact that we can compensate with positive recurrent impacts. Our idea is that this issue is finally compensated even at the same level of the result count. Therefore, we maintain, as I said, in this figure at least a floor of those 150 million recurrents that we have committed to the Council. In terms of renewables, indeed, in the Dominican Republic we expected, practically in this third Q, to take the projects of La Victoria, Bosnia and Herzegovina, Capital 2, 3, Lucila. Levitas, the substations are already being built, but it goes more for next year. And here it is true that we continue to accumulate a little bit of delay. I think it is a matter, I do not know if next week we start to save energy, En la Victoria se están haciendo los últimos flecos y bueno, no sé si es un poco por zona caribeña, pero aquí nos hemos retrasado un poquito y todo esto evidentemente genera un poquito más de gasto financiero, genera un poquito más de extra costes porque desde luego hay cartera y la idea en Dominicana es seguir haciendo cosas después de la rotación adecuada de los activos. En la parte de crecimiento 360 es crecimiento más en cartera. Han ido entrando una serie de proyectos relevantes en todo lo que es nuestro mundo de descarbonización, eficiencia energética y demás, y han entrado como entre varios proyectos 50, 60 millones de euros más o menos. Pero bueno, esto va a tener una ejecución evidentemente en los siguientes dos años. Entonces, de esto tampoco es que vaya a tener un impacto muy relevante en lo que es el revenue puro del tercer trimestre. O sea, estamos hablando de una cifra poco relevante. Patricia, if you want.

No, I think there is also a bit of visibility beyond 2025. What we see is that projects in 2025 can be in the growth levels in line with the statistics, with levels of 5% or above 5%, and that the slowdown, as we have always talked about, is punctual at this moment, and that in no case are those invoices lost, but they are transferred over time. Therefore, in 2025 we should expect levels of execution Perfect.

Thank you very much. We continue now with Carlos Treviño from Grupo Santander. We don't hear you, Carlos. I don't know if you're muted.

Hola. Ahora sí. Perfecto. Gracias por darme entrada. Tres preguntas. La primera, saber cómo va la búsqueda de partners en Europa en renovables. La segunda pregunta, entiendo que estáis continuamente haciendo una revisión del portfolio y podría haber, por tanto, otros negocios que pudierais desinvertir, como el anuncio que habéis hecho hoy. Today you have announced a business that accounts for almost 9% of your sales last year. My question is, if you have businesses of a similar size that you could be reconsidering, or any other business that you consider would be less to the disinvestment that we have seen today, y la tercera pregunta es que sabiendo que no dais datos de balance y de tricastrol en el trimestre, si me podéis comentaros un poquito cómo ha ido la generación de caja en el trimestre y si tenéis alguna idea de a qué niveles podríamos acabar el año en Eulaneta. Muchas gracias.

Gracias, Don Carlos.

Italia Renovables Partners. um titulice dentro de nuestro balance de consolidación, activos fijos y deuda asociada a infraestructuras, pues ahí hay que encontrar a alguien. Estamos en ese proceso. Lo que también diría o adelantaría es que, yo creo que lo dije en Alfa Call, que nos gusta más escenarios de ser más flexibles y de encontrar partners ad hoc para cada momento y cada lugar. Creemos que los proyectos ahora mismo en Italia, tener ready to build y poder empezar a construir es un activo escaso, es un recurso escaso, And what we have to see is how we maximize this process, even without the need to tie the entire portfolio to the following year, the following year, etc. If not, go step by step, giving adequate solutions to each of the assets that enter into YouTube and that we are going to build. Therefore, that is the strategy in the hope of being able to close something hopefully or perhaps before the end of the year. In terms of the investment, which is something similar, of more than 100 million euros of sales, we understand that no. We understand that in the end, and this was for some news that had been poured out, and I think Patricia has explained very well where we want to focus. It is in those projects, in the world of sustainability. They are the ones that are aligned with our strategy. We are talking about industrial cleaning services, waste management, circular economy, energy efficiency, emission reduction, and the whole world of decarbonization. Therefore, we do not have anything relevant in that sense. What we have left in our world of services is perhaps some historical reminiscence of some more difficult issues, very minor, that we could see. And I would tell you, or you who often ask me this, the last phase of what the adequacy in the elimination of B2B2C, which, as you know, paints little or is going to paint nothing in that approach that we had. So, well, we are in that process. At the same time, in that process of disinvestment, evidently, they also do not generate this issue of there will be box entries as a consequence of these exits, and the box, of course, we are seeing opportunities, and the box will be to grow, it will be to look for opportunities, to do M&A, or, if you hurry, to buy more own shares. In other words, therefore, And I'm not going to answer the question of what our final debt photo is. This has been a quarter of operating cash, which has been positive, but this is also what we depend on a little bit of the final behaviors of a series of projects, of issues also of 360 with anticipated entries, etc. And for us to give that guide to launch right now, it is a bit... and it doesn't make sense. Of course, we are going to be below what we always say about the two-time provenance, but our idea, of course, is to adapt the financial structure at the right time. There is also a large part of the debt, or if it is not a large majority, is financing value assets, assets that are in the balance and that, therefore, It is not a debt associated with a generation debt, that is, this is not about me or Domínio in the rest of the years having to generate a debt to return that debt. No, there is a very important part of that debt that is returned with operations of disinvestment of renewable assets and structures, especially in the whole Caribbean or Dominican part. Therefore, well, we are a bit in that process. And I think I have answered Patricia's question.

Muchísimas gracias.

Ahora una pregunta a lo pendiente por responder. If you want to leave us any more questions, this would be the time to finish, please. We see that Ignacio Ortiz from ERM has raised his hand. We give you the floor. We give you the floor. Go ahead, Ignacio. ¿Me escucháis? Buenas tardes, ¿me escucháis?

Sí, le escuchamos, Ignacio.

Muy bien, buenas tardes. Tengo una pregunta. Cada una de las negociaciones que estéis teniendo con socios renovables, a nivel de valoración y teniendo en cuenta cómo está el mercado, ¿os parece razonable seguir pensando y conocerme sin equivoco en las valoraciones que... to which you sold the cart bar, which I think was 1 million per megawatt. That would be the first question. Then, looking at a little bit of renewable pipeline transactions, they have been made normally at 0.08 million megawatts. So, if you think it's also a reasonable amount for the pipeline. And then you tell me this, if this is reasonable, we'll be talking about it. that you have right now, 355 megawatts installed without construction, with which if it is a million, we will be talking about an EV of 355 million euros, and you have a pipeline of 2,184 megawatts, if I'm not mistaken, that to the multiple that I have mentioned, we are also talking about an EV of 227 million euros, that is to say that we are talking about of a total V of renewables, close to 580 million euros, which is very similar to the V of the company. That is to say, that right now three businesses would be valued at zero. Does this reasoning seem to you, given the reasonable redundancy, makes sense to you?

Thanks to both. Let's see. The Valdecarretas PPA for Spain, the assets we have in the Dominican Republic are worth more than that. The enterprise value is worth more than a million megawatts because they are assets built in COD. And basically because it is not comparable both in hours and basically to the effect of the enterprise value for the PPA that we have there, which is at 100 dollars, at least, inflationary, compared to what we have in Valdecarretas. We clearly aspire to more than that value. We have no doubt about that. Secondly, the pipeline is a pipeline. That is, we are saying that we have in our portfolio, obviously, those 2,000 million. We have them in the pipeline, they are in different stages of development. Some are in the Dominican Republic and we believe that they will end up with PPI, with accumulation, with batteries. Therefore, they will be of greater value. But this is already a... I mean, this is already a desideratum. We have projects in Italy, we have some in Spain. This is already more, as you know, we go more to a valuation in the ready-to-bill moment, but trying to protect the construction to try to give a total cost that is enterprise value. I would tell you that we aspire to those two gigabytes to end up being, at the end of five years, the company's IEV billing, but you have to see how much of that crystallizes perfectly, how it evolves, how prices evolve, and also there is an economic part that will have more PPAs and will be less... tendrá menos afectación por la evolución de los precios de la energía, y otra sí, y también habrá afectación evidentemente por la curva de tipos, que parece que ahora vuelve y nos puede beneficiar. Por lo tanto, yo hasta ahí puedo leer, creo que bastante certidumbre en lo que tenemos construido, prácticamente a punto de evacuar, y con todo lo demás, pues cautela y preparados para lo que venga. Muy bien, muchas gracias. 27.5 is the price. It goes directly into the box. The idea is to be able to take it into account. This is a signing that we made yesterday. We are going to see the National Competition Market Commission how long it takes. We don't know if we will go to a closing that has to be a monthly closure. Therefore, it will be from November 30 to December 30 and that price will be effective at that time. The earn out is linked no es muy relevante, está entre 2-3 millones de deudos y se hará efectivo a medida que se vayan utilizando estas 2.5 millones de deudas negativas. Eso es un pasto directamente que se pone en valor la base.

Pero en cualquier caso, por aclarar a la pregunta de Álvaro, esos 2 millones serían adicionales a los 27. No sería una parte de esos 27 millones.

Correcto. Y esta es prácticamente la operación y la entrada en caja. Estamos dejando una compañía que tiene el working capital recurrente y ad hoc, y por lo tanto no hay mayores efectos.

No hay más preguntas, por lo cual esto va a finalizar la presentación. Muchas gracias a todos por asistir.