Tecnicas Reunidas Sa Ord

everyone, and welcome to TNR's first quarter results presentation of the year. It's going to be conducted and led by our chairman, Juan Lladó, and our CEO, Eduardo Sanmiguel. It's going to last about 20-25 minutes, approximately, and you will be able to pose your questions after the final remarks. And now, I'll give the floor to our chairman, Juan Lladó.

Thank you very much. Thank you, Antonio. Good morning, everyone, and thank you for joining us today. As you can see in this slide, we have this, you know, we have this structure, our presentation, you know, in a bit complex, but I think very understandable. First, I will start giving you, as always, you know, a glance of the key highlights Afterwards, Eduardo will step in explaining the ongoing Middle East situation and how TR is managing it. He will first drive you through the very short-term commercial outlook and the very relevant expected awards. Then he will explain the disruptions suffered from projects that are under execution in this area and how they are being managed. And to finalize this second section, I will come back to give you what we see the mid-term opportunities that we consider this current situation will bring to the sector and to TR. As always, Eduardo will go to the financial section of the quarter. Apparently, I will give you the final remarks before the Q&A. Eduardo? I don't know. It might be my time. So let me, let me, let me. I thought I had finished. Let me start with a key highlight, which is quite important for this quarter. If you look at this slide, each quarter has demonstrated a tiered solid business performance. Solid business performance reflected in the growth of revenue, tax generation, and underlying evidence. Sales reached 1.6 billion euros, which implies a 21% growth versus one year ago. And the net cash figure has significantly improved up to 360 million euros. Or better said, a solid 112 million cash generation compared with the first quarter of 2025. This level of sales and cash responds to the underlying evidence. strong and alive EBIT, which reflects GR's performance, with a number of 76 million euros implying a 36% growth year on year. On the other hand, we have to be and we are being prudent and realistic. Our execution performance has been delivered in the context of the eruption of some projects in the Middle East. interruptions and impacts that we have estimated in 45 million euros, for which we have decided to make the provision in our accounts. Again, we have to be prudent and realistic. In this sense, after that provision taken, the first quarter ended the state at 31 million euros. Our strong performance is also reflected in the very relevant awards expected in the very short term. And Eduardo will just bring some color to these awards, which will confirm our full confidence that we have in the short and mid-term outlook, confidence, and fully aligned with our strategic plan.

Eduardo, your turn. Thank you, Juan. Good morning, everyone. Before proceeding to this Middle East conflict section, let me first express our solidarity and firm support to all our clients, subcontractors, and suppliers in the region. In the actual circumstances, they all are not only our business partners, but also our friends. This section will cover both the impacts and the opportunities the conflict is generating in the Gulf countries. And moreover, how the reshaping of the energy landscape that this conflict is likely to trigger helps to create opportunities for TR across multiple principal geographies. So, we have three topics to speak about. Opportunities, project disruptions, and global impacts and opportunities. Let's start with the short-term opportunities. Middle East was, is, and will be our main market. The commercial activity in the region remains solid and strong, since there is not a glimpse of doubt from our clients to continue as planned with their upcoming development. If we go to the figures, our commercial pipeline in the region is close to 40 billion euros, out of which we are expecting in the very short term awards in the range of 4 to 8 billion euros. 4 to 8. As you can understand, I cannot provide today further disclosure than what you see in the slide. We are talking about three projects in three different countries. One is an oil field project, another one is an offshore development, and the third one is a power generation facility. The three projects, and that's very, very important, we expect will be awarded most likely before June 13th. So we are talking in the forthcoming 45 days. You may say, right, the range of $4 to $8 billion is a bit too wide, but let me translate that range into words. Anything below four would be fully unexpected, and we have a very high chance of being awarded around six. A billion is a perfect scenario and cannot be disregarded. But also, as you can imagine, The current conflict has tightened our relationships with our clients more than ever. We do not only keep executing our ongoing projects, especially in coordination with them, but also we are assisting and analyzing how to restart damaged facilities. Our clients in the Middle East are strong and reliable, and the message we have received from them is clear. We want you to complete the existing projects as fast as possible and to launch together a massive volume of new investments. Let's now move to the second topic. Impact in the existing projects. It is a fact that two-thirds of our current backlog is in the Middle East, and somehow all the projects in the region are being affected. But it is a fact as well that only a limited number of projects, and I would say just four, which are deep inside the construction phase are significantly impacted. The amount of these four projects in our backlog is around 1.5 billion euros. Many impacts obviously have to do with safety, logistics, and site disruptions. First, safety. We have impacts because our own workforce in the area is close to 4,000 people, and we have implemented all available measures to protect Delma. Second, logistics. The impacts come because the closure of all moves has blocked the arrival of equipment and bulk material, and has forced us to divert the transportation to alternative routes when possible. As of today, 1,061 shipments have already been, have already or are bound to be affected, and some equipment which impact in the critical part of the construction is not in the sites. And third, Disruptions on sites because the difficulties to mobilize large construction teams to make them work efficiently under this scenario and the delay of arrival of equipment and work have slowed down the rhythm of execution. Since the conflict started, clients have been collaborative and supportive. But above all, they have insisted in the need to accelerate the execution in the future to minimize its general impact. Although the conflict is not over yet, we are analyzing together with clients how to accelerate. And I wish to remind you now this kind of acceleration plans are not so unusual And they were widely implemented by chair last year in the region. But we have to be prudent. We have to be prudent. And we have analyzed the potential final impact of the conflict in the four projects effect. Assuming hostilities will not resume and the strait is open within this second quarter, before June, before the end of June, We estimate the global impact will be in the range of 40 to 50 million euros. And we have booked a one-shot provision of 45 million euros in our first quarter account. Now Juan will analyze how the project is giving us new opportunities all around the world.