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Good afternoon, everyone. My name is Manuel Manrique, and I'm President of Sacyr. We are here to present the results for today, corresponding to the third quarter results presentation for 2018.As usual, I will give a brief presentation of the most relevant facts and then most relevant financial and economic aspects that -- go over the most relevant presentations. Then to finalize, as usual, we'll be available for any questions you may have.In the same line of the previous results of the first quarter, first, I would like to highlight the strength of our main targets from this period that goes from January to September, and that is being accomplishing all of our forecasts. An excellent development and achievement of the business alongside with a good financial policy has allowed us to go back to the dividends policy, with a profitability superior to 4%.As I always mention, Sacyr is today one company in a totally solid phase. The results of the first 9 months reflects in a good way, with an increase of 20%. So we have been able to make steady progress across divisions and particularly with regards to the international business that is increasing by 25%, with an EBITDA increase of virtually 38% out of EUR 374 million, with an EBIT that is growing beyond 58%, with a profitability margin of 13.8%, with -- and it's before tax that it's growing virtually 50% up, so EUR 188 million. With net profit of EUR 190 million, to which each and every division makes a significant contribution and a growing internationalization process that accounts for 58% of the company's revenue and 71% of the total portfolio. Today that comes from overseas businesses.In this regard, I would like to highlight that 50% of the group's EBITDA are registered from the concession business, reaching virtually 70% if we also consider recurrent activities and long-term activities in the Water and Energy sectors. As for the progress made by our projects, all of them continued to progress steadily, attaining our strategic targets.And I would like to highlight some examples of such progress. We have already commissioned some of the first construction contracts in the U.S.A., which are now opening a new business opportunity in the market, where we are confident we will be able to build a big business potential.Maybe you have learned from the media that we have been chosen the preferred [ bidder ] for another contract to build a highway in the amount of EUR 200 million in Florida. That way we will consolidate our presence in this market even further.In Chile, we have been able to commission the LimarĂ Highway that extends throughout 80 kilometers in the amount of EUR 180 million in investment. That's completing a very important positioning phase. We have cut it out through 5 concession contracts in this country since 2011.Now together with the beginning of the urban highway construction in Santiago de Chile, the Vespucio Oriente Highway, we are ready to embark upon a new growth path. In Colombia, all of our projects continue to make steady progress, and the international financial system is absolutely confident about us. In Peru, we will commission the new module in La Pampilla refinery, which is a technical milestone as well as a security and safety module for our Industrial division. In Mexico today, we will be officially opening the [ Tlahuac ] Hospital.So as I said at the beginning of my presentation, we would like to underscore that the strategic drive of Sacyr over the past years has made it possible for the company to regain stable and regular shareholder's payout policy by paying dividends by way of scrip dividend with a profit of 4.2% in 2018. These results therefore consolidate the profitable growth path and the sustainable business growth approach of a global and responsible company that is fulfilling its commitments with shareholders, customers, partners and employees.And without any further ado and awaiting any questions you might have afterwards, I would like to pass on the floor to Mr. Carlos Mijangos.
Good afternoon, everybody. We are going to analyze the results for each business unit. From the operational viewpoint, growth across areas have been positive, with a 20% increase in the company's revenue, reaching an EBITDA of EUR 374 million, which accounts for an increase of 38%. So each division has also reported increase; for example, in the case of Infrastructure, concessions with 12%; Services, 14%; and Industrial Division with a 5%. That way the EBITDA consolidated margin for the group in the first 9 months goes from 12.1% in -- all to the way to 13.8% for this year. EBIT after amortization and provisions account for EUR 279 million, which therefore shows a significant increase of 58%.As for the markets where we operate, we have 71% International portfolio with 2 major activities, construction and concessions, with over 80%, which really comes from overseas business. As for the yearly revenue, we are at 58% of International activity and this will be the trend on year-end. This year, it's been quite successful as for awards in our strategic markets, both on the Pacific areas, as well as in Colombia, Chile and Mexico, as well as in Northern Ireland, Australia or the United States.In the case of the United States, as we have just mentioned, agreements have been formalized and key projects have already been commissioned. And we have just been awarded another contract to build SR 23, a new 18-kilometer highway in the state of Florida.As for shareholders' dividend payout, it accounts for 4.2% on -- during the year with a scrip dividend in January and June. And more than 94% of shareholders accepted the payment of these shares by way of payment, which shows that the strategy the company has is in the right way.As for divestments, we have to mention the case of Itinere, which will account for an increase of EUR 202 million, and we hope we can formulate this agreement as soon as possible.As for financing sources, a Medium Term Note Programme has been issued in May up to EUR 500 million. Therefore, we'll be able to issue 7-year bond as another financing source for the company on the capital markets.In terms of growth related to revenues, here you can see the revenue. EUR 1.5 billion comes from the International business, in order to reach EUR 374 million and accounting for an EBIT of EUR 279 million and a financial profit of minus EUR 177 million, with a net profit of EUR 109 million.So in this case we have to highlight our financial expenses went up given the strategy, whereby we're focusing on concessions in order to finance projects, and therefore the financial burdens have gone up. As for other figures, we can see that they have all reported increases or improvements vis-à -vis 2018. As for the portfolio, there has been an increase of 40%, going from EUR 30 billion to the current figure reported by the group.Now from the viewpoint of revenue breakdown, the division with the greatest contribution is Engineering & Infrastructure, followed by the Services, Concessions and Industrial. From the viewpoint of EBITDA, the Concessions unit has more than 50%; Infrastructure & Engineering, 25%; Services, 18%; Industrial, 7%. Here we should highlight that the 70% -- say that 70% of EBITDA comes already from recurrent activities and long-term respectively. As for the portfolio, 2/3 comes from Concessions, 14% from Engineering & Infrastructure and Services and 6% comes from the Industrial activity.If we now take a look at the same period in the previous fiscal year, we have seen how each unit has grown; in respect to the Concessions from 175 to 195; 59 to [ 90 ] -- and all -- in all 200 and -- all the way up to 2,074. Therefore, the consolidated EBITDA is 13.8%.Now regarding the backlog. This increase of 40% from EUR 30 billion to EUR 41 billion is mainly due to new awards of concession contracts, but also through Engineering & Infrastructure awards and Services awards, and in some cases of Industrial contracts. And we can also see a change -- or profit as a result of the growth of internationalization.In the past, our presence was lower. Today it's 71% international. 50% of the backlog comes Europe. Half of that goes to Spain and the other half going most to Italy and a little portion to Portugal. The rest is concentrated in America 38%, out of which 18% coming most from Colombia and 11% to Chile and the rest corresponds to Mexico and Peru.Regarding the main concession awards. We can highlight the construction of the highway in Northern Island, 3 projects in United States in the amount of EUR 115 million. Well, we are going to sign another contract before year-end. We can also highlight these hospitals in Chile such as the Tarapacá hospital. Another hospitals in same Mexico, one is San Alejandro. Well, these are just some examples of the contracts that we have been awarded in some of the market where we operate. We can also mention the case of Somague in Portugal and Angola. And then finally, over the past days, we formalized another agreement for the Fortaleza Metro and this contract will be executed next year.Regarding Concessions, in the 9 months of year the El Tepual Airport was awarded to company as a 6-year term contract. We have also been selected in order to build the Puerto Montt [indiscernible] section. This is a EUR 1 billion investment with a term of 8 years, and we believe that this agreement will be critical in order to allow for the exchange of goods in either way.As far as Services, the most important agreement was awarded in Spain, the Sotogrande water project. But we can really see the growth -- international expansion with some agreements such as an agreement in Bogotá in the amount of EUR 170 million for that 8-year term, or other agreements in Chile in Antofagasta Hospital or another facilities management agreement here in Spain.Regarding the Industrial business unit, the most important contract was signed in Adelaida, in Australia. There we are going to build a water treatment plant. In the case of Spain, several photovoltaic plants and become -- in the amount of EUR 46 million are going to be built. And then many others smaller wind farms and air generation farms.Well, in the next map, you can see our footprint, our target markets and our recurrent markets. From the viewpoint of the Americas, we mainly operate on the Pacific area, in Mexico, Colombia and Chile. There was an agreement signed in Fortaleza. As I mentioned before, in the United States, we built 3 roads. And we are about to sign another agreement before year-end in the state of Florida. And we keep on negotiating other award contracts.We have been shortlisted in order to build the Connecticut waste treatment plant; in Spain and in Portugal, we have multiple award contracts; the A6 Road in Spain (sic) [ Northern Ireland ], for example, and the Adelaida water treatment plant construction.Now from the viewpoint of net debt evolution, we should highlight the cash flow generated by the group in this quarter. We were able to generate the same amount in the previous 6-month term. This quarter has been very positive in terms of operational and cash flow generation, with a significant increase in working capital, reaching EUR 150 million (sic) [ 118 ]. Then we have EUR 177 million in financial result as a result of the implementation of concession projects. We should also highlight an increase in investments, EUR 280 million this quarter, out of which approximately EUR 200 million have been invested in equities, with a net debt variation due to exchange rate differences leading to EUR 4.019 billion. So as soon as Itinere's sale is closed, there will be a significant increase up to 370 million (sic) [ 3.817 billion ].In terms of business areas, one by one. In the case of Engineering & Infrastructure, there has been a 30% (sic) [ 36%] increase in revenue, as well as a significant increase in EBITDA. This area is now executing some large infrastructure projects in Italy with the Pedemontana highway, as well as other projects in Colombia, Mexico and Chile, reaching therefore a significant growth and EBITDA was EUR 95 million. The backlog is EUR 5.7 billion, out of which 90% corresponds to International business.As a highlight, apart from the execution of the projects themselves, we can mention the construction of 5.5 kilometers section in this Sao Paulo Metro system. This is quite a complex project. Here you can see a list of the main awards/contracts and some of the projects we have described before. Also, for this quarter, we can mention one portion of contracts executed, for example, for more than EUR 100 million in -- for the project of Nacala and then the agreements signed in Fortaleza.Regarding Concessions, their revenue went up by 31%. As for construction revenue -- here we're talking about revenue coming from the finance construction consortia. We see an increase of 63% in activity. We share that all concessions are at full blast. As for concession activity, we also see another increase of 15%, mainly due to the commissioning of Antofagasta Hospital at the end of last year; Limarà road, as I mentioned before; and we're connecting to cities in Chile, linking to the A5 Highway in Chile. And this has also been a positive evolution in terms of traffic rates.These are some of the projects that we mentioned before. Some are taking place in Uruguay, Paraguay, Chile and Mexico and Colombia respectively.From the viewpoint of the backlog, EUR 27 billion, out of which 80% most to the International business. This was acquired on active yearly terms of financial closing. For example, we have 2 financial agreements in Mexico. We have started the first phase of the construction of one highway in Colombia and we are about to formalize other agreements. In the case of Spain, the Guadalmedina road in the amount of EUR 230 million was closed. This agreement was closed before summer.As of September 30, the net capital invested was EUR 1.058 billion. [ That was ] EUR 170 million going back to the beginning of the year.Regarding contracts, the El Tepual Airport should be highlighted. We are now planning formalization of another agreement for the Uruguay rail section in amount of EUR 1 billion that I mentioned on the beginning of my presentation.Regarding Services, all divisions -- all service divisions reported positive results, mainly due to the commissioning or the beginning of the commissioning of different contracts that were awarded to the company at the beginning of the year; for example, the garbage collection service in Colombia, the Antofagasta Hospital in Chile or the water treatment plants that were commissioned such as the Sotogrande plant. Regarding the EBITDA, this shows -- this increase in activity and the margin continues to be at 8.5%. Out of the backlog EUR 6 billion, 30% corresponds to International business.This is the list of the main contracts: the Sotogrande water treatment plant or the garbage collection award in Colombia in the amount of EUR 170 million or other garbage collection agreements in Santa Cruz de Tenerife. I don't -- actually, because in Tenerife, we have another agreement that is signed in formalization before year-end.Regarding the industrial business unit, there has been some slight increases due to the completion of some relevant oil and gas projects. We completed the compression station in [ Nueva Julio ], and we have completed also another module in La Pampilla refinery. This is going to be commissioned next week.As for transportation (sic) [ transmission ], there has been an increase in activity mainly as a result of some contracts signed in Chile. As for industrial processing plants, a cement plant in Bolivia to make -- the state of progress is same. Also, an urban garbage collection plant in Melbourne.And in -- the water treatment plant for irrigation purposes in Adelaide, Australia or the Tenerife garbage plant. All these projects resulting in an increase in EBITDA of 5%, with a 14% increase in the backlog of this unit.And now we would like to open the floor for questions or in order to clarify any concerns or inquiries you might have.
[Operator Instructions] The first question is from [ Guillermo Klaus].
I have some questions as for the divestment regarding Itinere. From a legal viewpoint when do you think that this divestment will be completed? So could you please provide us with an update after refinancing of the advanced payments for Panama? And then a third question. I believe that working capital in the quarter went up to $77 million. You showed us where -- working capital of $118 million. Out of those $180 million, corresponds to the contracting businesses specifically?
Well, as for the first question regarding Itinere, as everybody knows right now, we -- some precautionary measures have been issued by a judge. As a company, we have filed for an appeal. These precautionary measures have been taken and now the judge has to decide whether they're going to be defining a model with it. Our lawsuit will be initiated. In which case, the company will be ready to carry out an agreement it may deem adequate. This is a forward decision we're talking about. This can be before year-end or afterwards. So this is the expected terms. Regarding the second question on the advanced payments in Panama, the company has already prepared a contingency plan and therefore we're ready in order to face any scenarios that might arise from the arbitration award. And as for the third question regarding the positive working capital, about 80% corresponds to the concession activity and the remaining 20% to other activities or resources.
[Operator Instructions] The next question is from [indiscernible] from CaixaBank.
The first question is about Pedemontana and how much it has contributed to the company's EBITDA during the 9 months term? And second, I would like to know your opinion about last views regarding selling a minority stake in Chile. Is that piece of news real? Is it true that you are looking for a buyer? And under which conditions would you carry out the sale? And if the answer is yes, when do you think that agreement would be closed?
Thank you very much for your question, [ Filipe ]. Let me first address your first question. Regarding the Pedemontana figures, the revenue was EUR 294 million, with a contribution of EUR 52 million to EBITDA. As for the second question, it is true that we're now going through a divestment process for certain assets in Chile. This process started out a few months ago. We have very exciting -- and there's great interest by many investors. We have received some proposals already. We have shortlisted the most interesting proposals. And we're now going through the second phase of this process. Therefore, this should take us 4 or 6 months. And before -- by spring next year, we will have a deal closed.
[Operator Instructions] The next question comes from [indiscernible] from [ G.V. Capital ].
I have 2 questions. The first question is about the margin from Concessions in the third quarter. You said that 740 basis points lower than in the previous quarter. Was this due to a one-off or have to expect the same performance in the upcoming quarters? The second question is about the construction activity. I have noticed that there was an increase of EUR 55 million in terms of debt during the quarter. I would like to know that this is due to the fact that [indiscernible] some CapEx items due to some startup costs? Or whether this is only due to the business operational needs?
Well, [ Daniel ], as for Concessions, margin went down slightly because due to the LimarĂ road. At the beginning -- well, when you start out a project, the margins are a little bit lower. But it was not due to a one-off. It was just the commissioning of a new project. As for the variation of the construction debt, I feel only the net debt varied because as we use up our financing that is now in escrow account, of course, the debt will go up. But that is actually because the project is progressing.
Thank you very much. We have no further questions into this conference.
Thank you very much. And we look forward to having you all back for the next presentation of results.