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.