Tecnicas Reunidas Sa Ord

Good afternoon, and welcome to TR's nine-month 2024 results presentation. It will be conducted by our chairman, Juan Gallo, and our CEO, Eduardo San Miguel. It will last approximately 20 minutes, and you'll be able to post your questions after the final remarks. And I'll leave the floor to our chairman, Juan Gallo.

Thank you very much, Antonio. And good afternoon to everyone. Sorry for being here with you this late. We had a morning with customers. Nowadays, it happens often, but not always on a Friday. As usual, Eduardo, Miguel, and I will walk you through today's presentation. And first, I will provide a very brief overview of the main figures of our performance for these first nine months. Second, I will get more in detail of the recent commercial performance of this period. And then Eduardo will update you with the various milestones achieved by TR in our operations, in our delivery of projects. And then he will continue with an overview of the financial results. And as usual, I will wrap up. with our guidance for 2024. And let me go through the highlights. First one, our quarterly intake, which obviously includes the announced awards, stands for 4.1 billion euros. If you all remember, we always had the question of whether we were going to be able to replace sales with new awards this 2024. And I guess that, you know, with these new awards, this is not a challenge anymore. The second important number is backlog. It's already in page, translating to a record backlog of 12.4 billion euros, which is the highest number we have ever recorded. This is important, but most important is to precise the quality of these backdrops. Most of it, and if you review them one by one, has been awarded to us together with the strategic partner. The strategic partner, which allows us to focus ourselves on the quality and the excellence of the institution, and Good risk management. Third, our revenue for this third quarter. So, you know, it's the first nine months of the year have amounted to 3.2 billion euros. Getting those records to our target and guidance for the year. Which has translated into an EBIT, which in our business is our operation margin. of 131 million euros, implying a 4.1% margin of sale, which is on the environment, on the neighborhood, of our target, of our performance target, and our guidance. And as well, regarding our net cash position, we have closed this period with a consistent level of cash of 298 million euros. I think those are five numbers, but very important, and sell it by the highlights, the numbers. And now let me go through and elaborate more in detail their commercial performance. Here is the slide, which is... get into detail, it's not the purpose of confusing, you get into detail of performance for these nine months, which has been the result of a good strategy and good market trends. First, as you may recall, in July, we were selected by a major chemical customer, which still we cannot release the name, still we cannot release the name for more than $100 million euros in a petrochemical project on a service basis in North America, very much within our strategy, very much within our Southeast strategy, which is what we have announced to you, presented to you in a couple of more days. We are very fully engaged with the task force, integrated with our customers here in Madrid, adding value to this very important job. Second, furthermore, we also announced in July that Saudi Aramco awarded to the joint venture of TR and Stanopec the development of free gas compression plant of Yafura. Our stake in this job is 60%, which amounts of a bit more than 1.2 million euros. A very important job, I guess, for us, obviously, and for Saudi Aramco. Additionally, we have been awarded more than 72 million euros in other service contracts, costless contracts, front-end design, competitive fit, and other engineering jobs for various customers here in Spain, in the U.S., and where we have a strong presence in the Middle East. Covering a wide range of products, which starts in low-carbon products, uh, projects, petrochemicals, as well as natural gas. And last September, I'm sure you recall that a consortium led that bypassed Moody Gas and wooded the development of an ethylene cracker, again, to the joint venture on a 50-50% basis of Tecnica Ronedas and Cenotec. This is a very important job because of the customer. because of the meeting, and because of our strategic partner, and I will elaborate in more detail in my next slide. And finally, as it happens now more and more often, clients start asking us to mobilize to the project, obviously getting paid, you know, organize the task force, starting the job, and planning the kickoff meeting, which is exactly what we have announced today. This is the announcement of the large three combined cycles. Unfortunately, we cannot disclose the specific details of this job, but it's important to clarify that we have already been engaged with the three combined cycles, that the amount is 1.45 billion euros, and it's in the Middle East. In summary, the order intake for this period is 4.1 billion euros, which translates, as I said before, into a backlog of 12.4 billion euros. And now let's just spend a few minutes or a couple of minutes, no more than that, on the Cash Minute Gas Awards. On September 18th, the construction, which was led by Capital Gas, Gas Stand is a state-owned oil and gas company. Together, which as we've seen in this case, is also a customer with a 30% stake, Sinopec awarded the development of a steam cracker unit to the venture of ourselves, the Nicaraguan leaders, and our Chinese partner, strategic partner, Sinopec. This contract, or this award, is part of our strategic agreement with Sinopec, and is already the third job awarded 20 kWh Sinopec gas, which is important. In this case, the generation partners, TR, choose Lucas Technology, an extremely well-known U.S.-based company with whom we have worked, you know, for years. Some of you may not know that the owner of CR is LUMUS, you know, in the 60s. In this case, LUMUS is the technology influencer for this different partner unit. This decision underscores the emphasis of utilizing strong, proven technologies which we work extremely well to develop and grow in this petrochemical sector. This is an ethylene cracker, and there are not that many companies which can perform design and condition this type of petrochemical sector. This cracker, which is a critical component as I said before, of any petrochemical complex, we utilize natural gas source from the gas system's abundant fields, and eventually would, you know, generate a variety of petrochemical products in the local market, and also the exports to other geographies manage the idea that we need gas and this data for gas. And in this slide, I wanted to put emphasis on our service-based business. When we say 172 million euros of services compared with a full billion of awards, you might think it's not important. This is extremely important. And this is a demonstration that our SALTA strategy is already paying off. And, you know, we are continuing strengthening and dedicating our service on the unit block of services. This shift services reflect the awardness of the growing demand for these types of services, engineering services. We have been grooving by an increasing number of assignments of our clients who are entrusting more and more PR at the very early stages of their investments. So the contract is a clear demonstration of our focus and commitment commitment, offer service factor, offer service units. You have to compare that up. Forty contracts, if you compare with the 27, you know, a year ago, it's a big jump. And it shows fully dedication of TR to our customers and to this business. This includes projects as fees-per-fees, basic engineering scope, feasibility studies, technology assessments, many initiatives, a lot of initiatives related to low carbon, ammonia, EFUELs, and carbon capture technologies in the U.S., Europe, and in the Middle East as well. It's important also to mention, and it's not a contract, but it's a memorandum, and it's very important for us that recently it was announced you know, publicly announce the Memorandum of Understanding that will reach with excellence to provide a comprehensive property capture, transport, and storage service contract. This is the very beginning, the early beginning of a long trip together. And after these slides, Eduardo will drive you through

Okay, thank you, Juan.