Redeia Corp U/Adr

Good morning, ladies and gentlemen. We are going to begin our Earnings presentation for the first half of 2026. We'd like to welcome everyone who's joining us on the phone and on our webcast. Joining us today, we have Roberto García Merino, Chief Executive Officer, Carlos Puente, Corporate Director, Strategy and Diversification, and Emilio Cerezo, Corporate Chief Financial Officer. I'll now give the hand over to our Chief Executive Officer, Roberto García Merino. Thank you, Sol. And thank you, everyone, for joining us in this earnings presentation for the first half of the year. Allow me to begin by referring to the environment in which the company is carrying out its business and the most significant milestones in the period. And then our Corporate Director of Strategy and Diversification will discuss the main metrics and the progress made in our strategic projects. Afterwards, our CFO will go into greater detail on the numbers for the period before we conclude by reminding you of our Let me begin by giving you a bit of context about the company's activities. A key sector for the energy transition marked by electrification, the integration of renewables and the need to guarantee a secure, efficient and Resilient Grid. In the last months we have entered a particularly relevant stage for the electricity sector in Spain and globally since grids have moved from being merely a supporting infrastructure to becoming an essential component of energy security and of the transition towards a more electrified model. The geopolitical context has highlighted the importance of having robust resilient infrastructures ready to integrate renewable generation locally. At the same time, demand growth connected with electrification, industry and new consumption factors like AI and data centers require faster investment in transmission grids, interconnection, storage, digitization and cybersecurity. In addition, the European Commissions recently published a proposal and an action plan for electrification which confirms Europe's commitment to accelerate demand electrification in industry, transport and the residential sectors. The proposal to set an indicative electrification target of 46% by 2040 AIMS to reduce our external energy dependence, increasing our energy security and achieving more competitive prices for consumers. To achieve these objectives, investment in grids is essential and RedElectrica remains committed, as it has been to date, to developing and improving the electricity transmission grid in an agile and efficient manner in order to serve current and future demand Benefiting from a sustainable, secure and competitive electricity system. For Redella, this environment therefore represents a historic opportunity and a structural change for the company. Our role as electricity system operator and transmission operator is key to ensuring that the electricity system can absorb more renewables, respond to new consumption patterns and volumes whilst always maintaining security of supply. At the domestic level, Spain continues to move quickly in the transformation of its electricity generation mix. Renewable generation still at very high levels, close to 60%, confirming the strength of the decarbonization process and our country's distinctive role within Europe. And this progress is not just about generation. For more renewables to enter the system efficiently, we need a grid capable of transporting that energy from the points where it is generated to the centers where it is consumed. And that's why the expansion and modernization of the grid is an essential precondition to capture the full value of the energy transition. If we look at the recent evolution of the Spanish electricity system, we see a very relevant signal. Demand has returned to growth in recent years. But perhaps even more importantly than the growth in energy demand is what we are seeing at moments of peak system demand. Demand peaks are increasing, confirming the need to continue reinforcing the grid in order to accompany the electrification of the economy. It's not just higher annual demand, but also greater instantaneous power needs that the system must be able to meet with complete security. Amongst the factors influencing this shift in trend are the growth of industrial consumption and the increase in final electricity uses like heat pumps and electric vehicles. Also, long term, we expect very significant growth in demand Thank you very much. Our investment plan responds precisely to these needs, integrating more renewables, moving with the electrification of the economy and preparing the system for a more complex environment. It's not just about more capacity, but about a smarter, more flexible and more secure grid. For Redella, this translates into a solid platform for growth with a direct contribution to the energy transition and the country's competitiveness. Now that we've analyzed the sector context in which we're operating, I will present the most significant milestones of the first six months of 2026. During the first half of the year, the TSR has maintained a solid pace of investment. which reached €631 million, that's 12% more than in the same period the previous year. Of this amount, €551 million corresponded to investment only in the transmission grid. This performance enables us to anticipate that the TSO's investment will reach and probably exceed €1.5 billion by year end. This increase once again demonstrates our commitment to reinforcing critical infrastructures, improving the quality of supply and responding to the needs of the system. I'd also like to highlight other relevant milestones in the period. First, yesterday the Council of Ministers approved the third amendment on specific aspects of the 2021-2026 plan with a planned investment of 615 million euros. This proposal includes actions aimed at increasing the resilience of the electricity system and reducing electricity costs for consumers. We've also approved the gridding investment cap through to 2030, which was an essential step for the approval of the new 2025-2030 plan. In addition, the Council of Ministers has commissioned Redeléctrica the construction of the Gulmar pumped storage hydroelectric plant in Tenerife with a capacity of 200 megawatts. It's a strategic infrastructure for the Canary Islands electricity system, strengthening storage capacity and facilitating greater integration of renewable energies. This project is similar to the Salta de Chira project in Gran Canaria with an investment of over 1 billion euros over the next decade. This award represents a very relevant milestone for Redeléctrica, reinforcing its role in the deployment of essential infrastructure for the energy transition, opening up a new long-term investment vector. And in the financial area, 154 million euros have been received from the Recovery, Transformation and Resilience Plan, as well as 158 million in grants linked In addition, in April, a six-year, 500 million hybrid bond was issued at an interest rate of 4.375%. We currently have 1 billion in hybrid bonds and as envisaged in our strategic plan, our goal is to increase this figure to 2 billion, thereby consolidating a solid financial structure aligned with our long-term investment needs. Finally, I'd like to highlight a particularly significant achievement for Redella. For the first time, we've been recognized by Standard & Poor's as one of the most sustainable companies in the world, positioning us amongst the top 1% Global for Sustainability Performance. Only two companies in Spain have obtained a similar result and 70 globally. This recognition endorses our commitment with creating sustainable long-term value and reflects the progress made in recent years moving from the top 10% to the top 1% globally in just two years. I'll now give the floor to Carlos Puente who will explain the main figures for the period and progress made in our strategic projects. Thank you very much, Roberto, and good morning, everyone. As you've heard, the semester has seen very relevant operational, regulatory, and financial milestones, reinforcing the delivery of the roadmap that we presented to the market in February. This evolution is reflected in a widespread improvement of the group's main indicators. The 9% increase in investments, which I will analyze later, and the growth in our net profit, reaching €280 million, that's 4% more than in the same period the previous year. I'd also like to remind you that after approval by the General Shareholders Meeting on July 1st, a final The dividend charged to 2025 results of 0.6 euros per share was paid, thereby fulfilling our commitments with the market, with a total dividend booked last year of 0.8 euros per share. We now move to an in-depth analysis of our investments during the first half of the year. During this first half of the year, Rodea has invested 657 million euros. Of this amount, as previously mentioned, 631 million corresponding to TSO investment. This figure reflects the significant investment effort the company is making to accelerate the development of the transmission grid in Spain. Regarding Red Eléctrica's main projects, I'd like to highlight the following. Progress has been made in the electricity interconnection between Spain and France through the Bay of Biscay, which continues to be executed on schedule. Civil works are well advanced and we began receiving the first power machines in the Gatica converter station. The objective is to commission the first link in 2027 and the second in 2028. Also progress in the second interconnection between the Iberian Peninsula and the Balearic Islands, including the new high voltage direct current link between Castellón and Mallorca. This project is complemented by other key investments to move forward with the decarbonization of the Balearic electricity system, including the installation of synchronous compensators in Mallorca and the deployment of battery storage systems in Menorca and Ibiza. Also progress in the Transmanchego axis and the La Sagra axis, two key initiatives to reinforce the electricity corridor between La Mancha and Madrid, eliminating technical constraints on the grid and facilitating greater integration of renewable energy generated in Castilla-La Mancha. During the first half of the year, progress was made in the environmental and administrative permitting of the different sections. The Morella La Plana Axis, a key initiative to reinforce the transmission grid along the Mediterranean coast, has reached an important milestone with the granting of the Administrative Construction Permit. The project continues the execution phase with a target commissioning date of 2028. The Ichazo-Castejón-Muruarte Line project has recently obtained the main administrative authorizations to begin execution. This project is a key initiative to reinforce the meshing of the transmission grid in the north of the peninsula, increasing transmission capacity between the Basque Country and Navarre and facilitating the integration of renewable generation. This infrastructure will also contribute to maximizing the use of exchange capacity with France. Finally, and regarding our Salto de Chira project in Gran Canaria, we've completed the drilling of tunnels and galleries and practically all the cavern excavation. In addition, works continue on the hydraulic circuit and testing has already begun on the desalination plant. The project is therefore on schedule with commissioning expected for 2028. I'd also like to underscore that 96% of our investments are eligible under the European taxonomy, reinforcing Redella's commitment with sustainability. In short, and in line with the objectives of our strategic plan, we continue to increase our execution capacity and making progress on the investments that will drive Redella's growth in the coming years. Let's now review the results of the first half of the year. If we look at the P&L as a whole, I would emphasize the excellent performance of all lines during the first semester. The contribution of regulated businesses to our EBITDA exceeds 90% at the end of June and this is a particularly relevant figure because it confirms that the growth of our regulated activities continues to strengthen the quality, recurrence and visibility of our earnings. And to give us more details about these figures and the results of the semester, I'm going to hand it over to Emilio Cerezo, our CFO.

Thank you, Carlos, and good day, everyone. Group revenues increased by 6.8%, driven mainly by the regulated business in Spain. New facilities entering service, net of grants, and higher regulated revenues for the system operator after the update of remuneration parameters for the 2026-28 period contributed to this performance. In addition, in 2026, there was a change in the regulated useful life of repowerings from 40 years to 8 years Thank you for joining us. The international business declined due to lower third-party projects in Chile, the depreciation of U.S. dollars versus euros, and lower results from Argo in Brazil as a result of higher financial expenses following the increase in company leverage after the dividend distribution in 2025. These effects were partially offset by the good performance in Peru and Chile. At the same time, the fiber optic business was affected by contract renegotiations according to plan in a context of market consolidation partly offset by the effect of inflation and CPI-linked contracts. Operating expenses show an increase of 8.9%. However, excluding expenses with a counterpart in other operating incomes such as the progress of works in the Chira Soria project and those linked to the damages caused by the The 2025 weather event growth was somewhat lower at 7.6%. Staff expenses also increased due to a higher average workforce required to address the strong growth of assets in the group. And external expenses increased due to higher asset maintenance costs, system operation, project costs, and other general expenses. The evolution of revenues and expenses leads to an EBITDA growth of 5.8% compared with the previous year, thanks to the contribution from the TSO. However, without the positive effect of this change in the regulated useful life of repowerings reaching 24 million, comparable EBITDA growth stood at 2%. We should also highlight that the aforementioned 24 million are fully neutralized at EBIT since a depreciation and amortization increase by the same amount. And to conclude with the income statement, the net profit reaches $280 million, or 4% higher than in the first half of the previous year for several reasons. Depreciation and amortization increased linked to higher assets in operation and the change in the regulated useful life of repowerings. Also, the financial result improved by $4 million as a result of lower financial expenses than in the same period of 25, mainly due to the placement of cash surpluses and higher capitalization of financial expenses in projects associated to the higher investment volume. These effects were partially compensated by a higher average gross debt and a slight increase in its average cost. And finally, the corporate income tax was in line with the previous year, with an effective rate excluding the result of companies consolidated under the equity method of 24.6%. From a financial perspective, the group's net debt stands at $5.009 billion, or $465 million, under the values of 2025. In addition, the group maintains $1 billion in hybrid bonds, which are fully recorded as part of equity. The generation of a solid operating cash flow of 518 million funds raised through the hybrid bond issued in April and the receipt of grants from both congestion income of 158 million and PRTR funds for 154 million offset the group's strong investment effort and the payment of the interim dividend. Thanks to all that, we preserve a solid financial structure with a net debt to EBITDA ratio of 3.9 and an FFO to net debt of 22.1%. Finally, about our credit rating, we maintain a BBB plus rating both by Standard & Poor's and by Fitch. So back to our Chief Executive Officer. Thank you, Emilio. And now to conclude this results presentation, I can only tell you how we expect the company's performance to evolve in the second half of the year and how we expect to close 2026. I would like to insist that the results obtained during the first half of the year and the expected performance on the coming months allows us to confirm our outlook for 2026 in line with the objectives presented in our strategic plan for 2629. Therefore, we expect to close the year with a net profit exceeding $510 million and a growth of dividends per share of 2%. In parallel, we will continue to make progress in the execution of our investment plan. In 2026, TSO investments will reach and probably exceed 1.5 billion euros, showing the significant effort made in recent years to progressively increase our execution capacity. In this regard, we moved from a phase of accelerating activity to a phase of consolidation and pursuit of efficiency. After several years, we have finally reached cruise speed, enabling us to face the challenges of the new electric planning with confidence. A very positive first half of the year, allowing us to envisage a year end in line with what we announced in February and constituting a solid start to our new strategic plan. Thank you very much for your attention and we are available to answer your questions now. Ladies and gentlemen, if you wish to ask a question, press star one on your phone keyboard. After taking questions over the phone, we will move on to written questions over the webcast. First question coming from Ignacio Domenech from JV Capital. Please go ahead with your question. Hello, good morning, and thank you for your presentation and for taking our questions. I have two questions. The first one is about approval of the investment cap. I wanted to understand your perspective on that aspect. And as for on the side of planning, what are your forecasts For your potential investments starting with that 0.5 billion in 2026. My second question is about potential improvements or reviews in the regulatory framework. Having seen that the regulation in other sectors are considering seasonal aspects too, do you expect anything similar to happen in your own sector in the next few months? Or if it's not related to inflation, are there any other components that might lead you to expect an improvement in the regulatory framework? Thank you. Well, excellent, Ignacio. Thank you for your question. As for yesterday's announcement about the investment cap, we have very positive view, not only because of that cap. Yesterday, the present planning, a change in the present planning was approved yesterday by the Council of Ministers to make the present plan more efficient and to make energy cheaper. Our first impression is very positive. As for investment cap, well, it's just a reference, a limit to investment. Much needed to continue the analysis and approval process for energy planning. which will be the guiding light for our investment framework in the next few years you know that this cap was much needed and in the CNMC report last month assessing the planning proposal for approximately 13 billion it was clear that the previous gap The new announcement makes the new limit comfortable for the investments to ultimately get approved in the planning, but it's relevant precisely because it was much needed to continue the planning analysis and approval process. which will earmark the investments in Red Eléctrica for the next few years. As for yesterday's approval of changes to the present planning, I perceive it as good news, particularly for the electricity generation system, as it will bring extra elements into the system to provide higher resilience. So my take on both announcements is very positive. As for the remuneration model, well, the truth is the model was approved in December. We have objected some aspects in the model, which we believe can be improved. We believe that the model is insufficient, particularly in the present environment and the one we're considering for the future. And we have given the CNMC our opinion and filed the corresponding appeals. In other remuneration models for similar activities to ours, we have seen the introduction of a concept like an inflation adjustment. which we've required or asked for in our consultation process with the CNMC. We believe this would be a positive measure to accommodate the evolution of prices in the remuneration process and we also requested from the CNMC an update of our remuneration model An amendment we consider reasonable and which we requested last year in our dialogue with the CNMC. So there is still room for improvement in the model. So there are appeals and an explicit request for an update were filed to the CNMC. Thank you. Next question from Javier Suarez from Mediobanca. Go ahead, please.

Yes, hello, good morning everyone. I have a couple, or actually several questions as follow-up to the previous question about the updating of the current plan until 2026. The government announced yesterday an increase of over 600 million euros, but the question is when do you think that that additional investment Is it something that's going to happen within your business plan running up to 2029 or beyond that? And the second question is about the National Energy Infrastructure Plan, which has to be approved, running two years behind and probably run only up to 2030. So the question I have is once this new infrastructure plan is approved, Will you be updating your business plan? And in that update, how much visibility would you have? That is I'm trying to understand. Thank you very much. Thank you. As for the investment connected with the proposal for the amendment of the current plan, it was approved yesterday. of course some preliminary work is required engineering analysis and permitting management and to start the tendering process for equipment and so on so in our 2629 plan there will be some of that investment already executed but Of course, these kinds of investments have longer development times, but because of the type of amendments and the previous ones, we have seen both with the synchronous compensators and also probably with this kind of investment, the RAB versus CAPEX ratio is actually a bit more favorable because these are processes or facilities that require less permitting time. And so there we expect to be able to accelerate the process a bit but as for the 615 million the impact on the current business plan will be relatively limited because it will take us a while to see the real impact on our investments probably it will be towards the final years of the plan as for the planning and the updating of our We set it in February and perhaps Carlos can give you a bit more color. The essential part of our strategic plan is connected to the planning. Obviously once the planning is approved, we have to look at the scope and the content before thinking of potentially an update of our plan. In February, we gave a description of where we thought investment might evolve up to 2030, 2031. But now that the planning has been approved and with the evolution this year of the most strategic projects, which are moving forward pretty successfully, I think we will have more visibility, perhaps extend our visibility on the strategic plan to 2031. But we'll have to wait and see until the actual planning gets approved because that's the essential component we work on to construct our business plan or our strategy plan. Carlos, do you want to give any more color? Yes, our current strategic plan, 2026-2029, included investments connected mostly to the current planning, the 2226 planning with all the various amendments that have taken place. and once they publish the new planning we will have more visibility on investments for the years beyond 2029 with their respective commissioning dates and we'll be able to do that update of the numbers that Roberto mentioned. And then also Javier, what you were saying about the planning timeline, obviously that's the government's and the ministry's decision but perhaps most European countries in our environment, you're correct, We do tend to have plannings that are run at least 10 years into the future but we think in an electricity system that's quite a reasonable timeline to reflect the changes and modifications that could occur in future years but in any case it's up to the ministry but it's true that a lot of European countries have that kind of a timeline in their plans and the recommendations from Europe tend towards longer term plans than the one we work with in Spain. Thank you. There are no other questions in Spanish. Let's now move to questions in English.

As a reminder, if you wish to ask an audio question, please press star 1 on your telephone keypad or submit a written question on the webcast platform. The first question comes from Arthur Sitbon with Morgan Stanley.

Hello, thank you very much for taking my questions. The first one is actually a follow-up to a previous question on your discussions with The CNMC around your remuneration model. You mentioned that you filed an appeal. I was wondering, is there any other route for you than the formal appeal in order to obtain a change in remuneration model? Or would it necessarily have to go through that formal route, which I imagine could take multiple years? So is there any chance to have some sort of fast track to an improved remuneration model. My second question is around the potential timing for Capital Markets Day and for an update of your business plan to 2031. Is there a chance that could happen in the first half of 2027 or would that most likely have to be later in 2027 given the timeline for the The update of the transmission capex plan in Spain. And the last question is just on the 2026 net income guidance. It seems that in H1 your net income is growing a bit faster than what that full year guidance anticipates. So I was wondering if you consider yourself being a little bit ahead of the growth pace that you guided for the year. Thank you very much.

Well, thank you so much, Arthur, for your questions. If you don't mind, I'll answer the first two and then Emilio can answer the last one on revenue. As for the appeal, yes, we are following the formal channel, which is to appeal that letter. But as we have done with the change incorporating inflation-linked adjustment, we have requested an update, which is something you can do, and some of those differences of opinion that we've expressed in the appeal can also be dealt with with an update of the circular letter which can happen within the year so that's an approach we can follow for now we've placed a formal appeal but we've also made a specific request for an inflation adjustment and circulars can be amended at any time As for the update of the business plan, as I said before, we need to wait until the final CAPEX plan is approved so we know the content, analyze that in detail. Once it's approved, and once it's approved and we've analyzed it, we will have a lot more visibility and certainty about when we might be able to share with the market our longer term vision, probably running up to 2031. Emilio. Revenue? Yes, as for revenue and net profit this first semester, Arthur, you're correct that net income has increased 4% versus last year with 280 million euros. But the guidance that we gave at the beginning of the year, and which Roberto has confirmed, still applies. So net income would be above 510 million euros. But I want to say, Arthur, that earnings in the first semester are probably not Just something we can multiply by two to get the year end figure probably because our maintenance costs are usually seasonal and so higher in the second half of the year and secondly because the excellent performance of our international business in the first semester probably not going to be replicated in the second semester there are some macro factors like the IPCA in Brazil which have We had a very positive impact on which we don't expect to continue in the second semester. Although, nevertheless, our international business is going to be performing better than expected. And our financial earnings, well, in the second semester we'll have more debt. We are planning to close the year at around 6 billion euros and so slightly higher interest costs. Currently our average interest rate is 2.35 in the first half. and we expect to close the year at 2.45. So the combination of these three factors will mean that the earnings of the year will be good, slightly higher. I think we expect that no guidance, but it's not going to be just double the first half.

And the next question comes from Louis Bejart with Odo.

Yes, hi, good morning. Thank you for the presentation. Maybe two questions on my side. First one regarding AI and CapEx extension. You identified AI data center and industrial electrification as a key structural driver for future growth grid investments. Could you provide some indication on the current pipeline of transmission connection requests coming from these sources of demand? And how does it compare with the one you had one year ago for these specific elements? And maybe a second question regarding the publication of the European Expert Panel Report. What operational measures have you already implemented to strengthen the system resilience? And which additional investments are now specifically dedicated to improving the voltage control, the system flexibility, and the operational resilience, please? Thank you very much.

Well, thank you for your questions about the use of AI. Well, clearly the company is trying to make the best of all the advantages the new technologies bring. And we are using it in the search for efficiencies to enhance the operational efficiency of the system, not only in performance, but also in maintenance. to bring further intelligence to maintenance criteria and therefore generate very specific maintenance plans rather than general plans, which will in turn generate extra efficiency in operational terms. So we are working along those lines and seeking operational efficiencies. As for the European expert panel report, and thank you for that question because I do believe that the report you mentioned helped us improve our vision on the reasons of the April 28th blackout. I would say this paper is an independent European document. sharing the same conclusions and analysis issued by our own experts. They agreed that this was a one-off multi-factor incident. I believe there is no further doubt about that and the expert panel report insists on that fact. I would like to go back to the multi-factor origin of the incident. Sixty-six files were opened by the CNMC about that incident, and only one of those accountability files pertains to Red Eléctrica. As for the options for improvement suggested by the experts panel, well, there is something we detected early on. and we already applied changes to our planning since July last year and based on the experts panel recommendation many of these measures were rolled out and integrated into the teams that worked on yesterday's change in the planning. So we are working to give the system a higher resilience and we had an immediate reaction. I would like to insist on the fact that the expert panel report is an independent document and they state that the incident was a multi-factor one-off.

We're now going to read the written questions. First from Bank of America, who's asking how we're going to finance that 600 million increase in the investment that was approved yesterday, whether it will be with the current finance scheme and whether we're planning to divest of any assets. Oh, great. Yeah. Mark, I can give you a general overview and then maybe Emilio can give you more details. When we announced the strategic plan, We said that we had several financial levers in order to deal with increased investment in our strategic plan. First remember that these 615 million, as I said before, have to go through the permitting phase and there's the manufacturing phase by the suppliers, so it's not going to have a significant impact in the 2026-2029 period, although there will be somewhat of an increase in the investment Director General of the European Commission for Economic Cooperation and Development The possibility of some partial or full asset rotation and there's a new aspect which will also have a positive impact and that is that given the progress in our strategic projects which I described earlier and given the faster commissioning of these last amendments of the planning We might be able to increase that RAV to CAPEX ratio and probably get more cash flow from operations in the coming years. So we have these levers and first the impact of these amendments is not going to be that huge in these first years and our finance structure is ready to cover these types of changes without any problems so it doesn't really require a structural change in our The strategic plan that we shared in February. Emilio, do you want to add anything? No, I just totally agree with what Roberto has said. If you remember, the strategic plan ended with our financial debt at around 8 billion euros plus the hybrid issuance you already are aware of. The execution of this over the next years, Roberto was saying, will require a slight investment effort, but nothing too significant in terms of debt, given our current debt volume, which, because we have a portfolio of, a very broad portfolio of finance instruments and so it won't be a problem to finance this increased investment. And we have two more questions from Laura Marconi from Barclays. First, when do we expect the final planning to get approved, the CAPEX planning? And second and last, whether due to this delay in the planning and execution of the projects, will Spain meet the energy targets for 2030? Well, Laura, thank you for those questions. The final CAPEX plan, that's obviously a process that is run by the Ministry. In the last couple of months there has been significant progress for the final approval with a favorable report from the CNMC and the approval yesterday of the increase of investment cap, yesterday, and then there's the The analysis of the Strategic Environmental Study, which is the most relevant critical milestone that remains in the analysis process of the CAPEX Plan, and that of course is up to the Ministry, but we expect, given the progress that has been made, that it could be approved, at least that's what we hope, by the end of the year. And as for the targets for 2030, I can only talk for Our part in the matter, and as you have seen in the last years, Redeléctrica has taken a leap forward in its execution capabilities. We are investing at historic levels of over a billion a year, and that's Redeléctrica's contribution to the achievement of the targets of the national plan. I think I should recognize the effort this company has made to take this leap forward in our execution capabilities and as we said before we currently can face the challenges ahead with confidence in our ability to execute investments at a record level and in fact we are the biggest investor in the electric grid in Spain with these levels of over 1 billion a year. Well, that's the end of our earnings presentation today. As usual, the investor relations team will be available to answer any further questions. Thank you, everyone.