Global Dominion Access Sa

Buenos días y bienvenidos a la presentación de resultados de Dominion. Welcome to Dominion for Source Presentation. If you want to follow this presentation in English, you can do so selecting the English language on the wall icon at the bottom of your screen.

Before starting, I would like to remind you that once the presentation is over, the future authors will move on to the Q&A session. And you can leave us your questions in writing in the section in Zoom, or you can either telephone, use the telephone, or raise your hand on the menu. So we're going to start with the presentation. We have Miquel Valandiran, the CEO of Dominion, and Roberto Tobillas, the Director General, and Patricia Rejón, who's the Director for Corporate Development. Well, good morning everybody and many thanks for attending this call for 2025 and many thanks for being so patient too. because we are starting somewhat later because of a technical issue. So many, many thanks. Many thanks for waiting. But before talking about the figures of the year and to understand how this evolution has been in the different business areas, I think that what we should do is mention how the year 2025 has evolved and also refer to the many events that have happened at the global level that have had a direct impact on the company's evolution. And I think that compared to previous years, geopolitics has now become an ingredient that we have to take into account because we are facing a context where what is improbable has become something possible. And this global paradigmatic shift also includes other things like elections in those countries in which we have a significant presence, like in Chile, and the priorities that still exist in France where it's difficult to carry out structural reforms. But as regards macroeconomic events, the most relevant ones have focused on the tariff war that was kicked off in April by the North American government and the effect that this has had for global trade. But although this has not affected the company directly, it has done so indirectly because it has affected the decision-making of some of our customers or different economic agents. And another consequence, another relevant consequence, is the strong depreciation of the North American dollar, which has produced significant exchange rate differences and conversion differences in the figures of this year. And what this proves what we've already observed since we presented our current strategic plan, or our most recent plan, and it shows that there's more uncertainty, which is not disappearing, it's only increasing. But as regards to the strategic plan, this fiscal year of 2025 has been a year in which we have consolidated the transformation that we initiated in the previous fiscal years, and we've materialised many of the objectives that we had set ourselves within the pillars of recurrence, simplification and sustainability, which are the three fundamental pillars of the plan. So, in the year 2025, we initiated the new reporting where the businesses and environmental activities for the industry have their own strategic structure of their global environment, And the creation of these two major areas, Global Dominion Environment and the rest of the businesses under Global Dominion Tech Energy, want to simplify and regroup the activities in such a way that it's easy to understand the company and also be able to value its elements. And this also means that we can work on different options to... developed the strategic area of GDE, where the company has put its focus on organic and inorganic growth, which is the end result of the potential that we can see nowadays, where the build-up opportunities are numerous and where the atomization of markets by geographies and activities is a fact. This process has already been addressed in the second part of 2025, with several acquisitions of companies and infrastructures and we hope that we will add more in the short and medium term and at the same time that we are developing green fields in different strategic locations like the case of Tarragona and the United Arab Emirates. And finally, and as regards the simplification process, we already made the most relevant divestitures of activities in previous fiscal years, and in the month of July we carried out the divestment of the PV facilities we had in the Dominican Republic that has improved the balance sheet, and we also divested our activities in France, where the possibilities of growth were below our objectives, and this divestment doesn't have any impact on the year's figures, because this was as of December 31st, but it indicates it's going to change things in 2026. But apart from the qualitative improvements, if we were to have to underscore the figures of the year, Well, we are growing organically by 4%, and we are doing so because both GDE as well as GDD services, in other words, the recurrence areas of the company, are growing above the guidance. They're growing at levels of 6%. And this means that this year the projects have not contributed as much as in other previous years. And we also have to underscore that the simplification of non-strategic activities is improving our profitability. It's growing and our EBITDA over sales margin is 13.7%, which is a maximum figure for the company, a historic maximum figure. Thirdly, the depreciation of the dollar affects the balance sheet as well as our net profits and this has one off effect because of the correction of the divested assets in the Dominican Republic and this one off is 18.5 million euros and without that correction our net profits would have been 10% higher compared to the figure reported in 2024. But an important thing is a strong reduction in the net financial debt, which at the end of the fiscal year is 137 million, and this is 25% lower than the figure reported in 24, and 34% lower than the figure we saw in the first half of the year. So that means that the leverage ratio is 0.9 times Vita. But before talking about the figures in detail, I would like to remind you that the figures for 2024 have been proformed to be able to compare identical perimeters because the divestitures are significant, and we have applied a proforma formula. So, in other words, these divestments... It's 134 million euros and 7.5 million in euro and 5.2 million euros in net profits. So we are going to compare this with this figure, with this pro forma figure that gives us a real snapshot of what this looks like. We've closed the year with a business figure of 1,045 million euros, which means that the inorganic growth of sales are 4%, with lots of inorganic growth and also growth of forex. because Forex has taken off 2% and Inorganic growth 11%. And although there's been a slowdown of projects whose causes that I will be describing later on in the information divided by segments. And as I said, we're growing at a very good speed over in especially in activities. The recurrence of GDE and GDT services and the margins are growing and Levita has reached the maximum figure of 13.7% of the sales, which shows that This simplification has been very handy with the divestiges of those activities that had lower margins, and we focused much more on activities and businesses that have much more profitability in regards to the environmental world. And the results of 2025, some of them stand below Evita, and it's important to detail this, and the most important things would be a progressive reduction of financial expenses that finishes with a reduction of 8.2%. 2.5 million less in absolute terms and this reduction came from the reduction of interest rates which we expect will continue in the next quarter motivated by two factors because there's been a reduction of the financial debt in our balance sheet and the normalization of the interest rates especially in the United States where the company also has debt denominated in dollars and Interrupted operations. And while we have the relative figures for the Cerritos wind farm, losses have been reduced by 3 million compared to 2024. And this reduction is mainly due to a reduction of financial expenses associated with the funding of the wind farm and with the commissioning of it, which would generate income. And this commissioning of the wind farm was one of the necessary conditions to carry out the divestment in the infrastructure, which started in the second half of 2025. And right now we are working on the negotiation of a PPPA with different companies so that we can maximise the value of this infrastructure. And finally, this correction that has been brought about by the depreciation of the North American dollar in the assets of the Dominican Republic represent an extraordinary effect of €18.5 million. So the attributable net profit is €10.2 million without taking into account that one off of €18.5 million. So the figure would be €28.7 million, which compared to 2024, it's a recurring profit that is 10% higher. But let's now review, let's review each one of the segments, each one of the business segments, starting off with Global Dominion Environment. And this segment has a turnover of €472 million in the fiscal year, which is equivalent to an organic growth of 5.9%, which is nearly 6% that we mentioned before, a percentage that stands above the guidance of the strategic plan. And to this we have to add positive and organic growth totaling 1.1% as a consequence of these acquisitions that we announced in Q3. In other words, we're talking about Ecogestion de Residuos and URAC, which is a recovery unit for water in Cartagena, which is in the area of circular economy, and the German company ZCR that operates in the area of decarbonization. But sales have had a negative impact on forex of about minus 3%. And this area has reached a contribution margin of 10.3% over sales, which is somewhat higher compared to the figure reported in the previous fiscal year. And as mentioned on other occasions, within this area there are different activities with very different margins. And we have those margins of circuit economies that are higher than the rest. And right now... The circuit economy represents 25% in the area of GDE, so as the weight of the circuit economy grows, the objective would be that this should reach something like 50-50, and then the margins will carry on growing. Regarding the total figures of the company, this segment, GDE, accounts for 45% of our turnover and 28% of the total margin of the company. And in relation to what we've already said about the strategy of the company in this area, we're working on a relevant pipeline with lots of acquisition possibilities, and we're looking for new capacities, new capabilities, and a new position so that GDE can become a European reference in terms of environmental services and infrastructures. And not only that, we also have the organic development of this area, which is very significant. And I have to underscore that as regards the circular economy, we're signing new contracts for the recovery of hydrocarbons, both in Spain and Latin America, but especially in Chile and Peru, where this activity continues. Well, this automatic cleaning activity is a new development and it's something that only we do and where we are consolidating our presence and this is becoming a recurrent activity. As regards decarbonization, we're still signing new contracts with existing and new customers and we've signed the first thermal optimization contract in the United States. So, we're opening up this market to this activity and this has an enormous potential. Let's move on now to Global Dominion Tech Energy, and here we explain the two segments, GDT Services and GDT Projects. On the one hand, GDT Services closes the fiscal year with a business figure of €460 million, which is organic growth of 5.8%. And this segment is what actually has the divestments are focused on this segment, and they subtract 23% of the turnover. And we have to add that Forex is subtracting 2%. So this year, anything that is related to this area is affecting us in other areas too. And the CDT services segment accounts for 44% of the total sales. But if we were to add this segment to GDE, we'd be talking about, well, 90% of the company's turnover. And this segment's recurrence, as I said before. So, therefore, we have achieved this objective, this recurrency objective in the plan that is exceeding 60% of our total and also 60% of the contribution margin related to recurrent activities. And these recurrent activities are the ones that have grown organically above the guidance. So this gives us lots of visibility in terms of turnover and in terms of future cash flow generation. So we have the contribution margin in the segment that reaches 19.7% over sales. And as regards the total figure of the company, GDT Services accounts for 53% of the company's contribution margin. Finally, GDT Proyectos closes the fiscal year with a figure of €113 million, which is 14% lower than what we reported a year ago. And as mentioned earlier, not only in this period of time, but this behaviour has to do with the temporary slowdown in the execution of projects, and this is the consequence of the situation of geopolitical uncertainty that we're facing, and also because there's been a change, there's been a change of strategies in renewable projects where we do not execute anything until we incorporate a financial partner, so we want to have a greater financial discipline. So this slower rhythm of execution does not represent the loss of any projects or the collapse of any projects. So our pipeline is still strong and will eventually become income for us. And on the closing date of the fiscal year, the pipeline is 413 million euros, which I think is more than two years of project execution. The contribution margin now reaches 28.5% over sales in the year and in Q4 the percentage has been much higher than the average and this can be explained by the reversal of some provisions of figures of cost that we have not incurred in a project that has already finished. So we made an adjustment and the adjustment was positive and it's the transmission line or transport lines in Angola. As regards the total figures of the company, GDT projects accounts for 11% over sales and 30% of the contribution margin. So, once we've taken a look at the PLL, both globally and by segments, let's move on now to the main movements of the balance sheet. With regard to fixed assets, they have remained in line because this has coincided with the amortization of the CapEx of the year, and also with the changes of perimeter. And there have been changes in the infrastructural assets where this reduction of nearly 62 million euros comes from divesting in the photovoltaic assets in the Dominican Republic. The variation of the operational net circulating capital, working capital represents a net investment of 250 million euros and this also variation in the rate of exchange and elimination of the debt positions associated to renewable assets in the Republic. With regard to the financial debt, well, it now stands at 136.6 million euros, which means that it's a reduction of 25% compared to December of 2024 and 34% compared to the last debt figure reported in June 2025. And this reduction has been brought about by the generation of operating cash flow in the year and also because we've collected 70.3 million euros because this operation was signed in dollars and in euros it means that we'll be collecting 70.3 million euros for the divestment of the wind farms in the Dominican Republic so that means that the leverage of the company is equivalent to 0.9 times EBITDA so in other words it's 9.9x for this fiscal year. So this generation of operating cash flow was 71.7 million euros. So that means a 5.4% higher compared to the operating cash flow that we generated in 2024. And of course, in 2024, we generated 76 million euros in cash flow, but we have to discount a number of activities. So the figure for comparative purposes is 78 billion euros. Cash generation has been used to pay an earn-out totalling €1.2 million that corresponds to the acquisition of the Gesteva company in 2023 and also for the payment of dividends to the shareholders who had €50 million in July as well as the minority shareholders, €1.9 million. and the investment for CNO related to the divestment in the Dominican Republic and 6.3 million euros that correspond to interrupted operations. In terms of capex, it has to be underscored that in addition to the 20.1 million euros of maintenance capex, which is a figure that remains stable year on year, and we've even managed To optimize our levels, we have destined 37 million euros to the expansion of different activities, among which we have the renting business for mobile devices, the development of renewable infrastructures and greenfields in the area of circular economy in Fujairah and in Tarragona. So as a conclusion of these results, in this year we have achieved the target established for the fiscal year. So this is thanks to the transformation we've carried out with a very positive evolution and we have materialized many actions that were geared towards the simplification exercise established in the plan and we've done so within the context that is pretty turbulent too with lots of complications. So therefore we have reached this final year of the strategic plan with most of the changes made and decisions taken in order to carry on progressing in our focus on the environmental world through global dominant environment and we also confirmed that in 2026 we will be presenting a new strategic plan where we will lay down the foundations of dominion of the future and where each strategic area will play a very important role and before finishing i would like to remind you that the dividend policy establishes a payment of one-third of the pivotal net profit but even so the board is going to suggest or propose to the atm that we pay a much higher figure much more than the three million that were resolved from applying that policy and this is so that we can preserve uh the remuneration to the shareholder so we will suggest a dividend of €8 million in 2026, which is equivalent to about 50% of the net profit of the continued activities. In other words, without taking into account those activities that were interrupted. And I would also like to remind you about another operation in the area of our shareholder composition, which was done about one month ago with the departure of Mahindra. Mahindra owned 4.16% of our shares. And the relevant thing in this case is that this figure, 4.16%, has been acquired by the main company shareholders, that is, by the biggest shareholder we have, as well as by the chairman and the CEO by the company, therefore increasing their possibilities. So, I would like to thank you for your attention, and we can now move on to your questions. so you can either write them in or you can either raise your hand on the screen on the zoom screen thank you very much for your attention okay well let's start off with the questions then and uh If you want, you can write in through the Zoom section, Q&A, or if not, raise your hand. So let's start off with the Q&A session and give the floor to the people that have raised their hand. And please make sure that your microphone is not muted. Firstly, we have Carlos Treviño from Grupo Santander.

Good morning.