Global Dominion Access Sa

Good afternoon and welcome to the disclosure of Dominion. Before starting, I would like to remind you that once we finish the presentation, as usual, we will open the floor for your questions and you can either send your questions in writing or you can either call us on the telephone or raise your hand to speak. And we're going to start with Rosa Tobias who is the Director of Corporate Development. Good afternoon everybody and many thanks for attending this results disclosure of Q3 in 2025. We are facing a quarter without major changes relative to what we'd already seen in the rest of the year. In other words, business as usual with positive evolution in spite of the context and in spite of the geopolitical situation where uncertainty is the dominating factor. We are fully aware of the fact, and although we don't have many direct impacts, I'd say that the main effects for us are, on the one hand, the strong depreciation of the dollar during the year, and on the other, the flowing down of the project segment, which is fully compensated by the recurrent businesses of GDE and services. And as a summary of what we're going to be looking into for the first nine months of the year, we can underscore that we have organic growth of sales that is far above the guidance and reaches 9% in constant growth. And we believe that we shouldn't forget that we have carried out significant divestments that have eliminated more than €110 million from our invoicing. And this simplification process is continuing together with the divestment in the Dominican Republic and it can be seen in the increase in consolidation of our profitability about 13% and reaching our EBITDA margin of the sales of 13.3%. But together with this transformation process, we're also boosting our strategic area of the global Dominion environment with acquisition. That is three companies in the quarter. in Spain and one in Germany in order to gain a position in the different industrial poles and increase our infrastructures and capabilities in this kind of activity. And finally, and as we've already mentioned, the net profits have been strongly affected by the depreciation of the dollar, which has produced a correction of the divested assets in the Dominican Republic. Without this correction, the net profit would be 40% higher compared to the figure of 2024. But now I'm going to move on to the details, but before doing so, I would like to remind you once again that the figures for 2024 were pro forma to be able to compare identical prohibitors after divestments of true 2024 and which may be referred to the sale of industrial maintenance services to CEDAW. And let's say that this pro forma It has an impact on divested activities, about €114 million in terms of invoicing or turnover, €5.6 million in EBITDA and €4.3 million in terms of net profit. And this is a former figure that has the same perimeter with which we're going to compare the results for these nine months. And the business figure reaches 800 million euros and represents organic growth at constant currency of plus 9%, in line with what we said in the previous quarter and practically doubling the commitment established in the strategic plan, and you know that it's 5%. This growth has been boosted by new contracts, mainly in services that are recurrent and therefore have been maintained month after month and given visibility and also have provided good future growth possibilities. The inorganic growth has subtracted 13% and the forest effect has been negative by minus 2%. margins, as we've already mentioned at the beginning of the presentation, are consolidated at about 13%. This shows the end result of the simplification strategy covered by the plan and we've also focused on activities and businesses that are more profitable, that are associated with the environment and which increase the potential expansion of the margin, which we expect will progressively increase in the future. And with it, in these nine months, we have an EBITDA of 13.3% of the sales and that is a growth of 6% in absolute terms. But it's important to mention several things. On the one hand, the reduction of financial expenses continues, as we already saw in previous quarters, and this is in the help of the reduction of interest rates by different central banks. This effect has produced a reduction of 25% of financial expenses, roughly, which is equivalent to something like €7 million in the first nine months of the year. It is expected that this effect will continue in subsequent quarters and the company will progressively reduce its net financial debt as a consequence of divesting in renewable infrastructures and interrupted operations. We have only included the wind farm with Pareto. has also reduced its financial expenses significantly and the new development of this quarter is that the farm is in operation and is therefore producing energy in the test revenue model and as a consequence and apart from this income the wind farm has operating expenses and finally There are several one-off effects that are associated with the divestment in the PV assets in the Dominican Republic with a total of 16 million euros in nine months. We have the correction that we mentioned in the semester's results and which is associated with the depreciation of the US dollar. and which doesn't represent any problems in cash flow. And the typical net profit, which is 6.1 million, without taking into account this one-off effect, it would be 22 million. In other words, the recurrent net profit is 40% higher compared to the net profit that we reported in the nine pro forma months of 2034. But let's now look into how each one of these businesses has evolved to receive global figures. We will talk about Global Dominion Environment with a turnover of $332 million and growing organically 8.3% compared to the same period of the previous fiscal year. It's the segment in which we have the biggest impact of the currency because Forex subtracts 2.8%. and the area has a contribution margin of 11.9%, which means that the margin of the segment is very two-digit, vis-a-vis that 8% of growth in turnover, the margin grows by 11%. So GDE accounts for 41% of the total level of turnover and one-third of the total margin of the company. As we've already mentioned, this segment is going to focus on the inorganic growth and the expansion of CapEx. by announcing the acquisition of three companies. We have EUREC, this is the water recovery unit of Cartagena. This is the plant for the processing of industrial water and a transfer center in the province of Murcia. The operation has thought about the acquisition of assets and it will be fully operational as from 2026. And in Spain, we have ECOFESPIR, which is a company that manages and transfers industrial waste and it's located in the province of Cádiz. Both companies are going to join the businesses of the circular economy and this allows us to have more geographic presence in the main industrial centre in the south of Spain and we also have different operational synergies together with the rest of the infrastructure and activities will be underway in those areas. the German company, Zublin Tuning and Refractories, specialized in industrial deep carbonization, which was our main competitor in this segment in the country. Well, this company has a very solid client portfolio, and now we have become leaders in the German market, and we have become a reference in the Central European markets, and we are also collecting all of the operational synergies after integrating those companies. We consider that we are facing an atomized market in the area of the environment and that we can achieve significant build-ups in Europe. So that's why we're analyzing operations that can provide dominion with new capabilities and solid positions and progress is being made in developing several greenfields both in Spain as well as in the Persian Gulf. And as regards organic development, It has to be pointed out that we are continuing with the incentivization of certain circular economy activities. In the previous quarter, we spoke about our first recovery and revaluation operation in Latin America and in Q3. We've extended the bridges and now we're starting to work in Chile. and we have also continued with very good actions in terms of decarbonisation as we're providing advanced engineering services, optimisation and maintenance and integral rebounding of different kinds of furnaces and in different locations. Now, present, Dominion Tech Energy. Well, here we are addressing the energy and digital transitions and this has been divided into GDC services and GDC projects. GDC services closed in the first five months of the fiscal year with a business figure of 374 million euros which means that there's been a growth of 13% in turnover compared to the same period of the previous year. It's the segment that has grown most and its characteristic recurrence gives us lots of visibility in terms of future turnover and we can confirm the strength that we've seen during the entire year when More operation and maintenance services were hired for telecommunications infrastructures and electrical infrastructures in Latin America. The contribution margin stands at 17.9% of the sales, with growth in absolute terms of 8%. With regards to the total of the company, TTC services accounts for 47% of the total sales and 53% of the contribution margin. And finally, GDD projections and projects. It closes the first nine months with a business figure that is practically identical to the one reported one year ago with a slight reduction of 3%. And this practically flat behavior has its origin in that slowdown that I already mentioned as regards project execution. which is the consequence of the geopolitical uncertainty we're currently facing. And it's also the end result of a greater financial discipline imposed on renewable projects where we don't execute anything until we incorporate a financial partner. And in this regard, we have Q2 with more executions and we were carrying out the Italian projects and now that this has reached its final stages, we have a third quarter no doubt, does not represent any losses in terms of credit, but rather temporal delays. This is why the portfolio now stands at €436 million and during Q3 we can underscore a new project for technological integration for the National Authority of Infrastructures in Peru. The project is about engineering, installation, configuration and implementation of weather weather stations and early alarm systems in the regions of Ica and Piura. And to finish with the project, the contribution margin now reaches 22% of the sales. In other words, these are levels that are much higher than the role that has been established in this segment. And as regards the company itself, TTC projects accounts for 12% of the total sales and 16% of the contribution margin at the end of these nine months. although we have not received any privacy in these nine months. There's been no cash consumption in these first nine months of the year and in this quarter we've paid the dividend in the month of July for a total amount of 15 million euros and we've also paid an earn out of about 1 million euros corresponding to delayed payment for the festival company. And as regards the divestment in the Dominican Republic, I would have to remind you that the $102 million of this operation, we've already received $19.4 million when we signed it in July. 62.2 million dollars will be received during the fourth quarter of this year and the other remaining 20.5 million euros or dollars will be received in 2026. But to conclude, I would like to underscore that this year 2025 has been a very relevant year as regards achieving the objectives of our strategic plan. We are culminating the transformation we set out to do with strategic investments and which we hope will produce the . And we also have the strong growth of recurrence activities. We have to strengthen that recurrence, which is one of the three pillars of our strategic plan and which is absolutely fundamental in these contexts in which we are living. And this recurrence also makes us feel calm so that we can be ambitious with new opportunities like the GDE opportunity. In our strategic plan we say that sustainability and reducing the environmental impact of industry was an opportunity we have to make the most of and we have configured ourselves and organised ourselves to get it done. Our target in this area is to make use of these tailwinds to become a reference in Europe as regards environmental solutions for industrial customers. We have the capacity to become a compounder of different players and to grow with fixed and mobile infrastructures in relation to the circular economy and decarbonization services. And with this, we want to build a reference platform at the European level that offers these environmental solutions to our customers. And that's all from me. I'm going to close here with the analysis of the results. Many thanks for listening. And now we can move on to your questions if you have any. Thank you.

Carlos Treviño, please. Good afternoon.

Can you hear me? Yes, we can hear you now. Good afternoon, everybody. In previous years, You've given us an estimate of where the EBITDA would stand for the total year. Could you give us a reference to it? And then after that, I have another question, a question on services in the field of energy. Well, this is a double question. You've grown, what is it, by 20%? And in the first half of the year, you'd have grown 9%. And I want to know if this has to do with a sporadic contract or if it has to do with new recurring contracts. So therefore, are we going to see stronger growth more than what has been reported until now? And then as regards the contribution margin in Q3, there's only been 5% of growth compared to 20% of growth in sales. Does this have to do with the initial costs of these service contracts, or is it that there's less profitability attached to this business? And the third question has to do with technology. So if we take a look at the projects, and if we look at Q3, there will be a turnover of €7 million, when on average it's been €35 million under normal conditions. And while the previous quarter was very good, over 50, but in the data that you have reported to it, the figure was about 35 billion euros. So it's a drop of nearly 80%. And I understand your reasons, but perhaps could you explain this a little bit more in greater depth? Could you talk about the nature and the geography of these projects that have come to a standstill? Thank you very much.

Thank you, Carlos.

If you want, I will start with the questions in the different segments. GDT, GDT services, you were asking about growth and if it's more recurrent or less recurrent or some sporadic event, because it's true that services is growing in a very significant manner, not only this quarter, but I think that it's been growing for the rest of the year too. And the answer is that it's recurrent because our service world has that specific characteristic. So this is why in the presentation I emphasised that this growth also will become very visible in future turnovers. And we've also had some very significant operations in the first part of the year that are now being reflected in our accounts. And let's look at the margins. So having grown as much as turnover has, And yes, that is true. It is true because when new contracts are initiated, there are certain initial costs involved. And then you have these ramp-ups of these service contracts that could have a bit of an effect, a bit of an influence on the margins. So it is to be expected that we will maintain a strong growth in our margins and in our turnover in the area of services. As regards GDP projects, you were saying that we've had something like 30 something million in turnover every quarter. That is the case. And in the last quarters, although specifically, you can see that in much higher figures, about 50 million in the second one, and we know that projects do not have a linearity or do not have that kind of behaviour that services have, and we can come across bigger levels of turnover in one quarter and then in the next. Well, we have got a lot in two, but we have less in three for projects. But in addition to that, and it's something that we've mentioned, the uncertainty that we're experiencing right now means that the turnover of the different projects in which we are involved is slowing down. And not only that there are projects that have started that have not, but there are some that we are already working on that have produced turnover that is less than we expected it to be. And then there's another factor which we've also mentioned sometimes. projects in the portfolio for renewables that we could execute but which we are not going to execute until we don't have financial partners. And if that means that we have less turnover in a temporary manner, this will probably favor our financial stability and that is the path that we think we have to follow. Hello, Carlos. I'm Robert and I'd just like to add that specific geographies in renewables and what we are doing, we know that we consolidate these projects and we want to make progress and think that our bridge would have no impact on the account because there are a couple of projects that are somewhat more stagnant because we're still trying to get all the pieces to the bottom first. And that's why we have less production and less turnover in that particular area. And as far as 2025 is concerned, let's say that there has been less production in Q3 in the area of projects. this has been accomplished by the most recurrent part of the company. All right, let's say something about 2025, but we think that it's the year for the definitive strategic transformation and this is when we have to focus on all of those concepts that we mentioned, recurrence, simplification, etc., and what we now expect Or we think that the end of the year will allow us to have a company that is ready to address the new plan that is coming along. And we've already shown the two main areas of the company. And I'd even say that more than guidance or commitment, what we are saying is that what we're going to do, we're going to have a ratio here. The 1x of the net financial debt in EBITDA, and if you want to have any more data, last year the pro forma I think was 142 in EBITDA when we closed. I think that we have to stand with that range. I'm not going for 140, 145, a little bit more, but with net debt levels at those levels at the starting point. And all of this considering that we still have a part of the company's balance sheet or part of the company's debt that is funding the infrastructures. And this is part of the debt. And our idea is to advance and to eliminate this from the plan little by little. So you can see that in this approach, if we were to isolate that item, we want to go back to the dominion with a low level of indebtedness. So with the pipeline and with the things that we're looking into right now, we want certain groups and M&A operations can be readily available so that we can generate more value in all areas, but more specifically what Patricia pointed out in this that we have set aside that has to do with the environment and the social economy and decarbonisation and try to focus much more on that. I believe that this would be the approach or this would be our target, our target to fully focus on the year 2026. Thank you very much. I have another couple of additional questions on figures, but I will give the floor to my colleagues and I'll raise my hand later on, if I can, of course. Thank you very much, Carlos. For last, we want to the question from the panel. Alonso, a couple of questions. Can the company confirm that after the reduction in interest rate, the decontamination of Stonehouse and the sale of renewables and financial expenses are going to be reduced from 60 to 30 million by contributing another 30 additional million to the net profit in 2026. We come from a world of 16, as Patricia pointed out, and we have a profound suggestion and this year we could reduce this by 10 or so. So first we have to see some of the snapshots we have on divestment and net debt so that we can give you an exact figure. And obviously, we are now following the path of reduction. We believe that an interest rate at about 2% will allow us to consolidate the reductions that we've already seen this year. But anyway, we haven't really done an exact calculation, nor do we have an absolutely in-depth information, and we can't really give you any figures right now. And the second question from Ruben. And if we were saying at the Amherst conference that the $150 million in EBITDA was going to benefit from the reduction in interest rates and the sale of renewables, and this wasn't possible in 2025, but do you think that the results will be felt in 2026? Well, this is in line with what I said, and that is a sale of the Dominican Republic has won on effect. That's $16 million, and we're obviously now looking into financing. We always set ambitious targets and aggressive targets too. And yes, we do believe that we have the right work plan and we're getting the company ready so that we can apply leverage to our profits and increase them. And we will then inform the market. We will send to the market the guidances and the commitments that we will be approving through the board and you will receive all the information. Yes, we have to submit a new strategic plan and this new strategic plan is something that we're already given some indications of but it will possibly be followed by an inorganic growth plan and an investment plan and this is something that will also have to be reported through the income statement and through the P&L account. so that we can fully define the upcoming strategic plan. But in any case, we're already looking into this and we're seeing how this could be transferred to profits. But first of all, we have to identify all the items correctly and clearly. Okay, next question from Luis Padron from TBC Press. He's got two questions. And could you give us an education on the net financial debt after Q3 2025? And the second is what can we expect for the projects in Q4 in 2025? I think we finished with 184 or 207 as of July and in September we don't do any disclosures. We have a little bit less debt than what we had as of December but I think that we've already answered that question. What we should have is a debt that is one-to-one with the EBITDA we achieve and that's where I think we should feel comfortable and where we are already heading towards what it is we want to achieve. Well, it will be better than Q3, without a doubt, but as you know, and as was pointed out by Patricia before, let's say that our project could be better than we expected or somewhat worse, but in any case, I have to insist whether we stand, because we are not having any kind of gap here and we are not focusing on the portfolio. The projects are there, we're very calm, we're comfortable. And this is an issue that has to do with the cut-off point in the year and to see how much we can actually execute, although we'll see how things turn out in the end. Well, we have another first question for Luis Padrón. Are we having any difficulties to obtain the funding for renewable projects and if so, what are the reasons?

No, what I mean to say is

I don't see any problems in terms of funding because we had to find an equity partner and I have to retract our strategy. We are a neighbour of IPPs and we are not taking any decisions carrying out certain projects that we already have because one has to sign a buyer for that project. You need to have visibility for all the pieces in the project and that's not really funding. because funding would obviously be feasible and could be obtained, but it also depends on the quality. The quality of the funding is going to depend on the PPA that we can get, and it will depend on the quality of the solar or wind resource that the project has. But what really concerns us more is this business of finding partners, as we have in Italy or in the Dominican Republic and other places, people that are willing to share or cover most of the project so that we can start to execute them or carry them out. Next question from Diego Martinez Salazar and he's asking us about three things. First, do you have an estimate of the EBITDA that will be contributed by the three companies you've acquired? Are their EBITDA margins similar to those that the company has, 13.3%? Second, are you going to consider more acquisitions for the rest of the year? And finally, do you have any options for the Cerritos wind farm? So when do you think you'll sell it by? Well, the companies that we are acquiring do not have a big relevance, I think, on average. It could be about one million in a bit H1. And the margins are obviously, well, these are social economy companies and I think that they can improve that figure of 30%. So the mix could improve. and in that respect there are going to be more operations from now until the end of the year. Well, there are possibilities but one never knows when one is going to be able to close all of these opportunities. They do exist and we are analysing them actively and we are looking into this. I think that that's because Cerritos, yes, the process is already in the way, as Patricia pointed out previously, the project, two days ago we received the documentation of the migration of the project And all of the trials that we had to perform have been done. So we're waiting for them to perform the definitive tests in Mexico. And as I say, now that we have migrated the permit, and this means that absolutely all the conditions have been met to formalize the sale operation, the process is underway and we expect that by December we'll be receiving proposals, binding proposals, so that we can formalise the operation and I think that being reasonable and realistic, I think that by Q1 they see it and this is all we can see right now. Although we do know that as from December, well, we know how much the variations are going to be, where it is we stand and we also know how we're going to proceed and what decisions have to be taken. Hello, can you hear me? Yes, go ahead Carlos. Well, I've got a couple of questions that have to do with CIGIT more than anything else. For the first one, you said that the inorganic contribution of these three companies has not been significant. I think that this is something you announced in June, and that is the purchase in Germany, and you spoke about 26 million in turnover. So could you please give me the figures of how much these purchases have contributed in the quarter? Or perhaps it is that you didn't close them in July and you closed them somewhat later. That's the first question. Sorry, sorry, yes. Go ahead, please. No, we announced them in July. the signings, but in the case of Germany, well, we then move on to Q4, and yes, it is true that they had a higher turnover. The others are a circular economy, and this one has a somewhat higher turnover because they were operating in a group that was stopping performing this activity, and it was not profitable. we can contribute value. But as regards Q3, the contribution made by these three companies is zero or minimal. I think that even in the consolidation processes, we have not taken them into consideration. And as I say, in Q4, this could be, I don't know, I dare say that it could be, I don't know, half a million or so, I dare say, roughly. So it's not going to be relevant. Thank you very much, Robert. And the second question, has to do with a one-off of the Dominican Republic that's gone up to $16 million in the cumulative figures of nine months, when in early June it was up to about $14 million. So could you please explain that? Well, I'll explain this, yes, certainly. When we formalized the Dominican operation, we formalized the lockbox. In other words, the operation was formalized as of January the 1st. All those projects were funded with an equity mix or with a capital mix and part of the shareholder loans that we were accruing interest. So what we had in that particular 12% in exchange rates for the dollar produced that effect of about 14 million euros. which is what we can see in accounts and something else that would also have an impact on equity because of conversion difficulties. But what we were doing for the corporation to be homogeneous and pro forma relative to the previous year is that each of the quarters were accruing financial incomes that were no longer accrued, but it used to be 2 million Euros approximately. So what I'm saying is that the exchange rate, we've heard this in September, is practically the same as in June. It remains at 14% for it to be homogeneous compared to the appropriate 2 billion that we don't have now in financial income, which is when Patricio says that the financial results have improved by 7 million. So with this same exchange rate and with everything stable, the dominant operations will have that could be compared to the previous year, which is 14 June, 16 September and 18 December, basically. And that is the effect, and this is the explanation. So it's a comparison of the different opportunity costs because we're not accruing that part of financial income that we were doing in the past. Thank you very much, Robert. Okay, let's move on to the next question from Diego Martinez. You said in the presentation that financial expenses have been reduced thanks to the reduction in interest rates. Have you used anything which you received from the sale of the Dominican Republic to reduce debt or has that reduction only happened because of the reduction in interest rates? Well, we've collected the first $20 million at the end of June, so we obviously for two months we had those dollars in our pocket. Perhaps we didn't mention that but we do expect, well let's say that we have an impact of the interest rate but it could be reversible and those dollars are in cash and we have them remunerated. Why? Because we believe that in the future in Latin America and in the Dominican Republic and in Mexico they could have projects that are going to be dollarized and we're going to need those dollars and those dollars are on the table for Dominion. and rotate or whatever. So we obviously have heard about the rate of exchange in the very long term, but we believe that our functional currency in these projects is the dollar. The dollars we've received have not been exchanged and we maintain them. So this exposure is something that is latent and which we are going to maintain. because this is going to be used to generate new contribution margins as a consequence of that rotation. So I think that the answer would be yes. They have been placed, but we've had financial incentives for two months. It's been about $20 million for two months, roughly. Okay, we're going to close with the... Thank you all very much for your questions, and we hope to see you again next quarter. Thank you very much. Bye-bye. Good afternoon, everybody. Bye.