Global Dominion Access SA

MAD:DOM

Earnings Call Transcript 2022-Q2

[Operator]

Good morning, and welcome to Dominion's Presentation. [Operator Instructions] Before starting, I would like to remind you that once the presentation is over, as usual we will open the Q&A session. So you can leave us your questions in writing under the Q&A section or you can call us on the telephone or raise your hand on the lower menu. And Roberto Tobillas, the Director General; and Patricia Berjon, the Director of Corporate Development are going to speak.

[Patricia Berjon, executive]

Good morning, and thank you for attending our conference to discuss the results of the first half of 2022. I'd like to make some comments before I read the figures and how they've evolved because everybody knows that we are facing a very complex environment with difficulties intentions on several fronts. We have the prices of energy that started to climb 1 year ago. We have inflation tensions, and we also have problems in the supply chain and above all, lots of uncertainty. We are fully aware of the fact that in each of our businesses and the different geographic areas where we operate, we are keeping an eye on the impact, and we're trying to implement actions that will guarantee the continuous growth of the company. And we are doing so because we're growing every quarter continuously, and we trust that we will continue to grow over the next few months in spite of the difficulties that we all know we're going to have to deal with. And without a doubt, we are assisted by the characteristics of Dominion of our business model. That is diversification, flexibility, the possibility of taking decisions quickly in an innovative manner and the possibility of implementing them. And as regards to implementing actions over the last few months, we've adapted our systems and our procurement system to the circumstances. We have reorientated certain businesses. And during this second quarter of the year, we've decided to [ convert ] the divestiture in the activity of metallic structures that we have been carrying out from our headquarters in Denmark. It's a very niche business and it's that requires production centers. It's now facing the turning point. And in fact, the results were negative in 2021. So that's why we think that it's a very good moment to carry out a sale and to rescue the value we have on the balance sheet. So therefore, on the P&L and on the balance sheet that we're going to be talking about now, we will have items of activities that have been interrupted and assets and liabilities that have been sold and the impact on the P&L of about EUR 9 million. And as regards sales, it's EUR 3.4 million. And last year, the losses of the business were about EUR 800,000. And now moving on now to the evolution of our financial statement. In the first 6 months of the year, we've seen a consolidation of the growth that we expected this year. And we've had a very good evolution of the 2 -- the B2B segments. And the business figure has grown 7% in global terms, which means that our organic growth has been 7.5% over and part of the first quarter and of the commitment that is established by our strategic plan, which, by the way, is 5%. And on this occasion, we've had a positive contribution of ForEx. It's been 1.4% because of the change of trend in the movement of currencies. And the inorganic figure subtracts 2% because this includes the value that corresponds to the interacted activities that I mentioned before. In this semester, we've reached an EBITDA of EUR 56 million, which has double-digit growth and other was 14% compared to the same period of 2021 and the same growth, 14%, which is what we have in EBITA. And all of this means that we have a net consolidated profit of EUR 23.4 million, which compared with the EUR 19 million registered in the first quarter 2021 represents an increase of the net profits in line with the strategic plan. So as regards the annual accounts, we have the allocation of results to the minority business and in the renewable business of EUR 3.1 million and the result of interactive activities were EUR 3.4 million. But in order to understand the growth of this -- the original growth, we have to see the information by segments. We can see 2 different dynamics. We have a very good performance that is 90% of the business in the 2 B2B segments, not only in terms of sales, but also in margins, which, well, we have a B2C segment, which is 10% of the business that is affected by the bad behavior consumption and high energy prices. B2B services have grown 5% in sales, in line with the growth that was expected by a strategic and maintains its contribution margin at levels of 11.5%. The characteristics of the contract of this segment, the service contracts allow us to maintain recurrence, and we can also absorb cost increases without any relevant impact on our margin. So therefore, what we expect under the current circumstances throughout this year and in the future quarters that there'd be a good performance in the service segment. And in the case of 360 projects, it's especially positive performance in this quarter, and we've had double digit in growth, and it's been 11% of a cumulative growth in 6 months, which means 16% organically. And even with this high rhythm of execution, we've added more contracts to our project portfolio, which in June totaled EUR 621 million. And the good progression of sales is due to the good execution of all the business areas. But above all, this has been boosted by the execution of several renewable projects in parallel in Dominican Republic and Spain, which have the contribution margin that stands at exceptionally high levels. It reaches 18.5%, which is far above the strategic objective of 15%. And it does so thanks to these projects of renewables in which we are currently -- we're currently developing. We have a larger margin also because we've decided to discontinue activity of metallic structures. But in spite of this complex environment that makes us be much more conservative in certain sectors, we feel comfortable with the health of the projects that have been included in our portfolio. And the possible slowing down of some geographies or sectors is fully compensated by those sectors that are much more dynamic. And this is why, as regards to the rest of the year and the next few quarters, we hope that this segment will provide with a significant revenues and margins. And the segment that has been affected by this environment of uncertainty is the B2C segment. Although the sales figures went up by 2%, boosted by the higher prices of energy, margins have dropped to 7.5% over sales because of the drop in the number of customers and fixed costs and as we are aware of the fact that we have to attract new customers in the energy vertical, we focused our efforts on another vertical, which is renting. It is the renting service of top range telephones, where we have more than 6,000 customers and on the telecommunications vertical that has been 150% compared to last year, now reaches 229,000 active services. So it's nearly 330,000 active services in B2C. But in the meantime, we're still working on the different options that would allow us to offer competitive energy supply to our customers, and we have to replicate in energy the excellent levels of capture that we have in the rest of the verticals. And also during this quarter, we've reached a commercial agreement with [ photoprics ]. And the aim is to extend and diversify our channels and to increase traffic in shops by adding new businesses and services that can be operated with the already existing structure. But let's move on now to the balance sheet. And well, let's say the main movements are explained by the repurchase of shares, or by the buyback of shares and also by the rigid register of the dividend that was approved and paid on July the 6 and by the reclassification of assets and liabilities associated with these activities for sales. And the reclassification of these assets, another EUR 35 million together with the conversion differences explained the reduction of fixed assets because the net CapEx of the semesters in line with the registered amortization and the movement of net equity is due to the results of the semester. In other words, the EUR 16.7 million that we've invested in the buyback program. And it's -- on June 30, we've reached 3.8% of our own shares and the register is EUR 30.5 million. And this, together with the net figures of assets and liabilities of the activities that have been maintained that explain the other liabilities. As regards to net cash, well, it's nearly flat. It's gone down from EUR 65 million to EUR 61 million because of the -- well, EUR 17 million that we've invested in our own shares, and approximately EUR 15 million between the payment of earn-outs and investments in greenfield growth with the acquisition of the renewable projects developments, especially in Italy and the investments required to launch a multi-technical service contract. We're talking about the telco networks in Germany and the electrical grids in Spain. And while we've had an operating cash flow of nearly EUR 27 million, in other words, we have transformed into cash more than 76% of the EBITDA in the semester when the movement of working capital has been practically nil. And as regards sources of funding and the possible impact of interest rates movement, we are sensitive -- very sensitive about this of our total gross debt, about 35%, which is EUR 70 million is linked to variable interest rates, and we have to consider factoring too. So we think that the funding cost will grow by EUR 1 million to EUR 1.5 million in the second half of the year. So therefore, this -- the final message is that I think that it's a very good quarter, and we've continued with the growth trend that we already had in previous quarters. And although the context is not very favorable, we are still online, and we are going to fulfill our plan for 2023. Thank you very much for your attention. And now we're going to be moving on to your questions. [Operator Instructions]

[Operator]

[Operator Instructions] We have Carlos Trevino from Santander first.

[Carlos Javier Treviño Peinador, analyst]

But I wanted to put 3 questions to you. Well, firstly, Patricia, you spoke about the very high level we've seen in turnover in this quarter with these new renewable projects. But is this just a very specific moment in time? Or do you think that there's going to be more growth year-on-year over the next few quarters? So are these just the certain landmarks that have coincided with Q2? Or is this a trend that we're going to carry on seeing in the future quarters? And the second question has to do with B2B services. And let's say that this has to do with the inputs you are receiving from clients in the current context. And well, do you think things will slow down a bit in the second half of the year and specifically in certain sectors and countries? And the third question has to do with B2C. You're growing a lot in telecoms and you're also growing with this new service of phone renting. So I would like to ask you about the profitability of the different types of services in energy. It's clear you charge a fee, a EUR 5 fee each invoice, but perhaps could you give us some indication on how profitability is varying or changing in the other services? It's high in telecos compared to energy or otherwise? And also in the case of the renting of devices to?

[Roberto Tobillas Angulo, executive]

Well, thank you, Carlos. Thank you very much. Indeed. Well, let's see, I'll address these 3 questions. B2B projects is a very specific issue. And well, it is true that our strategic target is above 15%. We've been doing this for quite a few years. And I think that this quarter is -- or those 19%, I'd say that it's a little bit more specific, let's say, and what we feel comfortable when we stand above 15%. But of course, it is true that this -- there are 4 projects that are already underway in the Dominican Republic. And that's where we in the construction phase, and these are projects, as Patricia pointed before, although we have a high level of execution, well, even in spite of that, the portfolio has not dropped, it's still EUR 621 million. But in any case, this is something that could be seasonal from the point of view of the fact that this second quarter has been very good, although I think that last year, we finished at EUR 300 million. I'm not sure if it's EUR 170 million in B2B projects in June. So above EUR 300 million. Yes, of course. But I'm not sure if we will be able to maintain this or perhaps we are maintaining these levels of activity, but the margins are -- 19% for me is a bit too much from my point of view. So we have to be cautious and say that we will stand above 15% in the strategic levels, but well, we have to be a little bit cautious on this particular front. As regards to B2B services, yes, we have received inputs from customers that are talking about a slowdown in countries or sectors. I'd say that this is not so we have a very high degree of recurrence. And this is what Patricia pointed out. We are also carrying out some greenfields in Spain and in the area of energy and perhaps we'll have natural growth too in Latin America because we're very happy with how this line is operating. It stands where we wanted to stand. It's pushing our level of recurrences. And I think that will all of this situation and with the design that we've carried out in the company, it has to offer us the opportunity. Perhaps we could have new greenfields or new growth opportunities even. So right now we are not considering any churns or any slumps in our activities on our projects. We're very happy about that. We're extremely satisfied.

[Patricia Berjon, executive]

Well, yes, I would also like to say something about services. Well, just remember that we have a unit on the environmental services, and we can see how that is also producing lots of activity. So I think that in all areas, in the field of energy, we can see how it's growing and environmental services too, and other kinds of services where we can see that there is a growing demand and which is going to give us more recurrences.

[Roberto Tobillas Angulo, executive]

And then there's something else. That is B2C, B2C, Carlos, well, let's see. Well, as I don't want to make any mistakes, I'm not going to give any margin divided by activities or services, et cetera, et cetera. And this is also a disclosure that I think we cannot really give you. But obviously the approach or the commercial offer of the different verticals is different. And well, you know about the energy segment. And you know that right now we are transferring to the customer our best competitive offers, and we are charging the fee. It's a management fee we're charging. And in the other verticals, that is not the case because we are working with gross margins. And what we do is that as far as renting is concerned, we are also giving handsets to -- as a service or we are providing the service to the customer and the margins differently, but we also depend -- in the area of renting, we depend on the residual recovery value. And what we are seeing is that our B2C element has an operational leverage that is ready to achieve much higher volumes. And this is where, well, there's a bit of a setback for energy. In other words, we've had a reduction in the number of users. But as regards telco and renting, we are growing. So yes, it is true that with that operational leverage, we can achieve high levels of growth. And what we are seeing is that we are in line with that. And I'd say that in our strategic reflection as we said in the previous call, how can we address the energy issue better? Well, with that operational leverage, we do -- and we know that those are the future quarters, we'll have to start with bigger volumes so that we can improve our profitability levels.

[Operator]

Well, somebody is asking for a connection via telephone as we can't see your name or the number finishes in 961. So please identify yourself. We think that you're muted. I'm afraid that we can't hear what you're saying.

[Unknown Analyst]

I'm [ Gavino Gonzalez ] from [ Hotabe Capital ]. I have 3 very quick questions. And the first question, let's say, the book value of steel stack, I think, is at about EUR 12 million. But considering how the metal market is evolving, perhaps, well, because of the deficiencies in the supply chain, should we expect to have more sales at these levels? Or do you think that there's going to be a discount against the book value? I don't know what you're contemplating right now and what cash-in you have estimated for this sale. And the second question has to do with margins because what you -- you've spoken a little bit about projects. But in services, we've seen that there's been a slump in the contribution margins. I understand that this has to do because of the new telco contracts in Spain and Germany that you mentioned previously. I'm not sure if you expect this to change in the next quarter? Or if this is going to affect you? And I don't know what kind of recurrent margins you expect. And then as regards to the B2C business, where you can see that there's a pretty significant churn in terms of energy, and could you please tell us what kind of actions you're implementing to reverse this behavior? Do you think that you're going to be able to improve your supply with the commissioning of wind farms to make this offer much more attractive and therefore, recover positive positions?

[Patricia Berjon, executive]

Well, thank you very much for these questions. Well, I would like to start off -- well, I'll start off at the end. The issue that has to do with B2C and well, the situation of our energy vertical. We've already spoken about this on several occasions or because of the kind of commercial proposal, we have is an indexed proposal. We sell energy at the pool price. So we don't really have the most attractive offer that will allow us to attract more customers. And that's why we're losing in that energy segment, and we are aware of the fact. But right now having a more attractive offer would pose certain risks, which we don't want to have. And that's very clear in our minds, and we are exploring the different options. But what we have -- what is very clear in our minds, and this has been driven by what's going on in telco and in renting and that is that the capacity to attract customers, in other words, our channels are very powerful. And energy project, it's a different thing, let's say that it's all about competitiveness or how attractive what we are offering is. So we're trying to offer alternatives to make this offer much more attractive. We know that at the end of the year, we will have the possibility of having our own wind farms up and running or renewable farms underway. But anyway, let's wait and see what happens -- to see what happens because we, well, we have a very strong channel. We can make -- we can deliver much more attractive offers. And we want to see if we can supplement that with our actions, but in the case, as Robert pointed out, what we expect is that this trend will change by the end of the year because we have that option. And then B2B service margins, well, you said that they slowed down a bit. But well, the truth is that we've maintained the same options we had in Q1, 11.5%. And it was slightly below what we had seen in the previous quarters of last year. And as you pointed out, the explanation is very clear. And that is that we are in a ramp-up period in several large projects that are taking place in parallel. So that means in the first stage is the margins of these projects are not the ones that the project will have once it becomes more stable. So what we do believe will happen in the second half of the year is that there will be an increase in the B2B service margins, and that's what's to be expected.

[Unknown Analyst]

Well, as regards steel stacks, well, you were talking about EUR 12 million, but this is a very big number, 1/3 of those EUR 12 million, 1/3 is mobilized machinery, buildings, 1/3 is goodwill. Another one is net circulating capital. So what do we expect?

[Roberto Tobillas Angulo, executive]

We are waiting for these options, but the only thing that can remain here that the only thing we can do is that we address whether -- or how much we recover of this goodwill. So what I would say is that as regards to interrupted activity what we have to recover, the fine adjustment of what is lacking in terms of goodwill. But as you will see, this is obviously a cost that does not affect our disbursements, but it will be an issue of assessment. And of course, we are going to recover the circulating capital. And we are now looking into market products, and we're looking into the productive CapEx, and we're not concerned about that either. But then what we have to see is that, well, we have to see how we can assess this divestiture or how much -- or how long it's going to take us to recover, but this does not affect our disbursements. It will be just and we have to convert these EUR 12 million into cash input.

[Unknown Analyst]

So this is going to be a sale?

[Roberto Tobillas Angulo, executive]

No, no, no, no, no, it's a settlement -- no, it's not a settlement, no. And what we are seeing is that there is a phased sort of -- we'll see how we can do this exactly, but it's all about trying to value our assets and try to recover as much cash as we possibly can.

[Operator]

Juan Pena, please, you have the floor, from Gaesco.

[Juan Peña Ruiz, analyst]

You've spoken about distribution channels, et cetera, et cetera. But have you got any kind of new product that you're going to be launching in the second half of the year? And then what about all the imports and how…

[Patricia Berjon, executive]

Excuse me, excuse me, we can't hear you, can't hear you clearly. Could you please repeat?

[Juan Peña Ruiz, analyst]

Well, it sounds wrong. The qualitative assessment of the -- of inputs and we're having problem with administrative permits in the development of renewables because some companies are telling us that they are having delays because of that issue.

[Roberto Tobillas Angulo, executive]

Okay, Juan, well, look, well, as regards the imports, so far so good. I think that it couldn't be better in the strategic vision of where we stand exactly and above all what they wanted. They wanted us to boost the European portfolio, which is what we're doing. We're doing this in Spain and Italy. So that means that, yes, we are now -- well, they do have financial capacity and we're looking into possibilities of funding, et cetera, et cetera. But what I would say is that the expectations we had with the arrival of this partner, well, the expectations are magnificent. As regards permit problems, well, this is what is happening in the market because what you can see is that especially in Spain, the tendering processes are being delayed or being postponed. And possibly this is a tendering process that will start in October, that will possibly be postponed. But then we also have strategies to attract more megawatts. And we've attracted or we've managed to get more than 100 megawatts. And this is endemic. And there's a little bit of slowness everywhere. Everything is running very slowly, but we, in the field of renewables, have the portfolio, and we want to start building in Italy at the end of the year. We have what we're building in Spain and the Dominican Republic. So I think that the plan is in line. And if there's any delay, this would affect the pipeline, or things that we expected for Q2 in 2023 will possibly become Q3 or whatever. But let's say that we -- I don't have any big concern or we don't have any big delays either. And I think you spoke about photoprics. Well, this was mentioned by Patricia, we have a commercial agreement with photoprics. And these are the operations that one carries out on the structure one has said that they can provide EBITDA margin. And we've carried out some projects with them with the same strike that we have in the shops and with the CapEx that has a return below 12 months, and we feel very comfortable with the pilots we've done, and this generates more traffic. And it also has -- makes a positive contribution because we feel optimistic with this initiative. And we believe that doing this hybridization as we're doing with service bundles and energy, telco and renting and so on and so forth, we think that this is a good and suitable strategy. And if you've seen on television, the advertisements, I think that we are also supporting the Phone House brand. And the answer is [ George Televute ] is Phone House.

[Juan Peña Ruiz, analyst]

And then what about new products?

[Patricia Berjon, executive]

Well, in that case, in that case, Juan, we have the issue of self-consumption, which has already been launched. But in any case, it's in the preliminary stages, and we will be boosting that more in the second half of the year.

[Operator]

Okay. We are going to continue with [ Haino Vonevidanta ] from [ Nanda ]. You're muted.

[Unknown Analyst]

I have 3 doubts. Sorry, I connected 3 minutes late. But I'd like to -- please explain the sale of the infrastructure from metallic structures. And you said that the impact was EUR 3.4 million in terms of the net profit, and this division had losses totaling EUR 800,000 and this affected sales by EUR 9 million. So this is -- is this a B2B services, or I suppose -- well, could you give us some more detail, why are you selling this and what kind of impact this has? And also, I'd like to understand your expectations in B2B as regards services for industrial plants and understand what the situation is like now that there's less activity because there could be potential plant shutdowns. And does that mean that you could have more projects in the case of tall structures or perhaps you could reactivate other kinds of tall structures? Could that part of the business be reactivated? And finally, as regards B2B services, is it just the ramp-up of the telco contracts? Or is there some inflationary impact? I know that you are containing expenses a lot, but have you done anything or has there been anything related to margins?

[Roberto Tobillas Angulo, executive]

Well, thank you very much. How can we do this? Well, let's see, as regards these structures, the tall structures as they're called, well, the decision -- well, this was a factory activity. It was the only construction activity we had at Dominion. And it was something that was not working properly. It was classified under B2B projects. And as I said, last year produced losses. And what we have seen is that, well, this is Dominion. So we have to continue changing so that we can stick to our philosophy. What we have seen is that there was no synergistic activity per se, and it made sense to value it and exchange it for cash, and we're trying to maximize as much cash as we can. And this impact of EUR 3-point-something million, I think that I answered this in the other question, we have about EUR 12 million left. 1/3 is material mobilized and another 1/3 is goodwill and another 1/3 is net operating capital. And what we are working now is we want to transform into cash CapEx. We've received some offers, and we want to try to find a suitable solution for the rest of it. So that means that in the second half of the year, we'll have to see if that goodwill that remains at EUR 3 million, EUR 4 million to see how much impairment there is. But in any case, and as I mentioned previously, well, this is not going to affect our cash.

[Unknown Analyst]

Well, those EUR 9 million in sales are no longer there. So the figures that you've reported, the sales figures was another EUR 9 million?

[Patricia Berjon, executive]

No, no, what we've done is that as this is considered an interrupted activity, you don't have the sales so that you were expecting in this semester of 2022, and you have all the margins on the last line. But this only affects projects, okay? And this is something you were asking about what we've done when we calculated growth. And when we were giving you the organic and inorganic and for growth, we've covered this under inorganic as if it were already a divestiture.

[Unknown Analyst]

So the project margin has improved a lot, hasn't it, because there were losses here?

[Patricia Berjon, executive]

Well, yes. Yes, there's a project margin, if I'm not mistaken, I think it's 19.5%, and that has a little bit of impact. And it was -- I think it was about EUR 0.5 million as regards the contribution margin in the 6 months of last year would have been EUR 0.5 million because we have EUR 3.4 million. And we have margins -- well, larger margins compared to last year because right now we are also -- we also have associated costs, costs associated with that sale. We have to complete or carry out all of the projects.

[Unknown Analyst]

And then there's another issue which -- well, we were talking about B2B, we were talking about the ramp-up. We were talking about the mix of industrial plants.

[Patricia Berjon, executive]

Oh, yes. And yes, we were also talking about inflation B2B services. Because of the nature of the contracts we have in the service world, we were having -- we used the pass-through to customers. So the increase in costs that we have in terms of sales is not going to affect the margins significantly. But this was also mentioned by [ Mikel ], I wouldn't consider this as an impairment of service margins because in services, if you -- in hindsight, well, in the last quarters, for instance, over the year -- of last year, we had margins of 10.5% or 11% or 11.5%, which I think is a good margin for services. So we have to be more in line of 12%, which is absolutely associated with these ramp-ups that we are carrying out right now. But normally, ramp-ups are absorbed by the general business, but right now we have several ramp-ups in parallel, and they are very significant. We have contracts like Endesa's in Spain or telecommunications for 2 different customers in Germany. And then well, you were talking about the issue of industries and what we're doing in that sector. Well, I think that we are very diversified. And talking about the industry at large will perhaps -- well, we are very cautious about this because, well, this is affected by all of these situations we are witnessing, but we are very diversified. And in some industries, we see bigger impacts, but in others like in oil and gas and other sectors, activities are growing. So we are very cautious with industry, perhaps even more so than with other sectors, which are obviously much more dynamic right now. But even so we are not pessimistic. Well, perhaps what you see -- well, I was -- this is being -- this was pointed out by Roberto now. There's a decrease in the industrial business and the details that we showed concerning B2B. And this is associated with the elimination of sales because of the interrupted activities. If we wouldn't have had that elimination, we wouldn't be talking about a slump in industry, we'd be talking about a different kind of situation.

[Roberto Tobillas Angulo, executive]

And it is true is to -- it goes down from 44% to 40%. But in absolute values, we've seen a little bit of growth in the industry because this growth is somewhat higher, yes, in the case of interrupted activities, that's it.

[Unknown Analyst]

So just to be a little bit more specific here. So the balance between potential losses of activities, in other words, what is your contribution towards the oil and gas sector or the energy sector versus what is purely industrial? Could be autos or, I don't know, something that could be facing more shutdowns or more interruptions. So is your outlook more positive? Or is it more negative or neutral?

[Roberto Tobillas Angulo, executive]

Well, whatever is related to oil and gas and environmental services and automations and cleaning services, et cetera, the truth is that we are optimistic because the sector is demanding a lot because of these oil prices. And in some places, they are asking us to do bigger filtering or filtrations because, well, we feel optimistic as regards industry. I think that what we have is the recurrence of maintaining what we already have at reasonable levels. And this is our recurrence. And we really don't expect to have any losses of contracts nor anything relevant.

[Patricia Berjon, executive]

Well, perhaps to be a little bit more specific, I mean, we're very positive in certain things like oil and gas. So that's why in that industry, if you want, we added a bit more neutral. But [indiscernible] shows that we have some contracts with Michelin or others where we are growing. And this is a very recurrent service and sometimes and in certain moments of the economic cycle, services are maintained or they even grow sometimes.

[Unknown Analyst]

Well, I wasn't only talking about services. I was talking about tall structures too.

[Patricia Berjon, executive]

Well, let's just focus on the numbers we have today. And as I said, we have a portfolio, which in spite of the consumption we've had has grown. And it's grown because of renewables and on the whole too, and this includes structures and industrial infrastructures. And we don't really think that the outlooks are pessimistic. We are very diversified. Asia is growing. And in a global interpretation, we really wouldn't be pessimistic in terms of the industry.

[Operator]

Okay. We're going to give the floor [ Manuel Eurante ] from [ Miraboss ].

[Patricia Berjon, executive]

We can't hear you, Manuel. I think that his system has crashed. You know what this like, you mute and unmute and you disconnect yourselves sometimes. Oh, I think he's here. He's back. You're muted right now, Manuel. Well, you're using your computer. Well, perhaps it would be easier for you to go through the Q&A section on the chat. Okay. Well, there are no more questions. So we'll close the presentation here. Thank you very much for attending. Thank you all very much, and let's only hope that everybody has a wonderful summer. And we'll see you after the summer holidays. And Manuel -- we'll speak to Manuel later on. Thank you very much, everybody. Goodbye. All the best. [Statements in English on this transcript were spoken by an interpreter present on the live call.]