Enav SpA
MIL:ENAV
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Enav SpA
Earnings Call Analysis
Q1-2024 Analysis
Enav SpA
ENAV kicked off the first quarter of 2024 with impressive results, achieving a 9.6% increase in managed flights compared to Q1 2023. Notably, this is the first time traffic levels have exceeded pre-COVID figures, with a 6.3% increase when compared to Q1 2019. This upward trend in flights showcases ENAV's robust recovery and outperformance compared to the broader European market, which experienced an 8.5% decline in the same period.
The total revenues reached EUR 193.6 million, reflecting a 9.5% increase year-on-year. This growth was primarily driven by the surge in traffic volumes, along with notable contributions from non-regulated revenue streams, which inflated by 19%. ENAV also reported an impressive 30.2% growth in en-route service units compared to pre-pandemic figures, emphasizing a substantial recovery in international air traffic.
Despite the rising costs associated with managing increased traffic, ENAV managed to enhance its profitability. The EBITDA rose remarkably by 70% to EUR 16.5 million, aligned with improved traffic volumes, resulting in an EBITDA margin increase of 3% to 8.5%. Meanwhile, while EBIT did remain negative at EUR -10.3 million, this represents a significant improvement compared to the negative EUR -20 million in Q1 2023.
Operating expenses totaled EUR 177.1 million, an increase of 6% year-on-year, predominantly driven by personnel costs essential for managing the higher traffic volume. Staff costs rose by 6.7% due to an increase of 75 employees, primarily air traffic controllers and technicians. Nevertheless, ENAV continues to maintain quality service, reporting almost negligible flight delays, thus upholding their reputation in service reliability.
ENAV reported a net loss of EUR 13.8 million for the quarter, marking a considerable improvement from the EUR 21.8 million loss of Q1 2023. This reduction in net loss aligns with the company’s ongoing recovery strategy and heightened operational efficiencies in navigating the post-pandemic traffic landscape.
At the end of the first quarter, ENAV displayed a strong liquidity position with EUR 245 million in cash and additional undrawn credit lines amounting to EUR 199 million. The net financial debt decreased to EUR 300.6 million, down EUR 21.7 million from December 2023, supporting a net debt-to-EBITDA ratio of 1x.
Looking ahead, ENAV is reaffirming its full-year 2024 guidance, projecting mid-single-digit growth in both revenues and EBITDA based on ongoing trends. The company is optimistic that the summer travel season, typically stronger in traffic, will continue to bolster its performance. However, they caution that a double-digit traffic growth rate, similar to Q1, may not be sustainable due to capacity limitations across European airspace.
ENAV is currently navigating regulatory uncertainties, particularly around the RP4 (Regulatory Period 4) cost efficiency targets, which are anticipated to be finalized shortly. The current proposed target stands at an annual reduction of 1.8%. Management has indicated that they are prepared to adapt their strategies in anticipation of these regulations, aiming to align with the necessary efficiency standards while continuing to support traffic growth.
Overall, ENAV's Q1 performance reflects significant progress in traffic recovery and operational efficiency despite ongoing challenges in the regulatory landscape. Their strong financial position and optimistic outlook for mid-single-digit growth in 2024 present a favorable proposition for potential investors, while the successful navigation of regulatory and operational hurdles remains crucial for sustained performance.
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Good afternoon. This is Chorus Call conference operator. Welcome, and thank you for joining ENAV First Quarter 2024 Results Conference Call. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Daniele Tutino, Head of Investor Relations. Thank you, and over to you, sir.
Good afternoon, everybody, and thank you for joining us today on our first quarter 2024 results conference call. I am Daniele Tutino, Head of Investor Relations. Today, our CEO, Pasqualino Monti, will take you through our progress during the first quarter of this year. And then our CFO, Luca Colman, will take you through the first quarter financial results. And we will then welcome your questions.And with this, I will now hand over to our CEO, Pasqualino Monti.
Thanks, Daniele, and good afternoon, everybody, and thank you for taking the time to join us today. Let's start with the key points about our first quarter results. We are pleased to announce results which show a good start to the year on track with our plan with an excellent traffic performance and the strong financial results. In the first quarter of this year, the number of flights managed by ENAV recorded an increase near to a double-digit growth, up 9.6% compared to the first quarter of 2023.And these results exceeded the traffic levels managed in the pre-COVID period. In comparison with 2019 in the first quarter of 2024 traffic in Italy was up 6.3%. And the result in Italy was higher than the rest of the Europe, where again compared to 2019, the average figure at the end of the first quarter of 2024 decreased by 8.5%. The increase in flights led to growth of service units with en-route traffic exceeding 2 million of service units in the first quarter of 2024, up 8.7% versus the first quarter of 2023 and up 30.2% versus 2019 while terminal traffic is up 10.5% and exceeding by 1.4% to the pre-pandemic level.And even [ facing so ] high traffic volumes, we are continuing to be the best-in-class also in terms of quality of service with the volumes of minutes of delay almost equal to zero, while below the target set by the regulator. In terms of financials, total revenues are EUR 193.6 million, up 9.5% compared to the first quarter 2023, driven by the strong increase in traffic and with non-regulated revenues also contributing to this growth for EUR 7 million, with a strong increase of around 19% compared to last year. We have also continued to improve our profitability with EBITDA up 70% to EUR 16.5 million and strong margin at 8.5%, up 3% compared to the first quarter of 2023, while EBIT stands at negative EUR 10.3 million.Let me remind you that last year, it was negative at EUR 20 million, with EBIT margin up 6%. You may have seen that our traditional seasonality is shaping our results with the first quarter of the year, typically the weakest in terms of traffic and top line but not in terms of costs, which are fairly stable in the quarterly trend. And despite this trend in this quarter, we are seeing strong progresses at the bottom line with a negative net result of EUR 13.8 million compared to the EUR 21.8 million loss of the first quarter of 2023.In terms of CapEx, the amount in the first quarter stands at EUR 11.6 million, while net debt accounts for around EUR 300 million, and it decreased by 6.7% compared to the end of 2023 with a ratio net-debt-on-EBITDA at 1x. Let me show you now the traffic performance achieved during the first quarter 2024. Service units went up 8.7% year-on-year driven by a solid increase in international overflight flight traffic, which grew 17.2% in international traffic and 7% in overflight traffic. National traffic declined marginally year-on-year, having yet recovered pre-pandemic volumes starting from last year earlier than the other traffic components.In terms of mix in the pie chart, you can see as National traffic accounts for 19%, International accounts for 40% and Overflight traffic, which is the most profitable accounts for 41%. Here, the performance was driven by an increase of intra-European flights and Europe-Asia connections. En-route traffic volumes showed a fully recovery in the first quarter compared with the pre-pandemic levels, exceeding it by 13.2%.This positive traffic trend is processing with an impressive [ channel ] as confirmed by the number of flights in April, which is up 11.9% compared to April 2023 and up 12.4% versus April 2019. Also the terminal traffic shows a very strong growth. Service units grew by 10.5% year-on-year, showing a generally positive trend throughout our three Charging Zones. More in detail, Zone 1 is up 27.7% with a so strong increase as its recovery in the post-pandemic period was lower than the other two zones.Very good performance in the quarter for Zone 2, up 9%; Zone 3, up 3.7%. In terms of destinations, the International component representing the 60% of the total traffic increased by approximately 16%, while the residual 34% related to the national traffic grew by approximately 2%. In comparison with 2019 traffic volumes for the first quarter recorded a complete recovery as they exceed by 1.4%, the pre-pandemic level.And with this, I want to leave the floor to Luca to run through the first quarter key Group metrics.
Thank you, Pasqualino. It is a [indiscernible] since we set out our details for year 2022 results presentation. And as you know, although Q1 is important to us as we look to start the year in the right way, it is always our smallest contributor to the full year. And it is important to bear this in mind when now we go through our figures. First of all, let's see the revenue breakdown. In this slide, you can see that Group revenue in the first quarter 2024 grew 9.5% or EUR 16.8 million year-on-year reaching EUR 193.6 million.It is a very brilliant result, driven by the strong increase in traffic volume with En-route and terminal revenues increasing by 3.5% and 9.5% year-on-year, respectively. Now moving to the balance; you can see in the first quarter in 2024, a balanced contribution for minus EUR 1.8 million due to the following elements. First of all, a balance accrued in the period of about EUR 18 million, mainly coming from EUR 10.6 million inflation balance for the period as a result of the high inflation rate versus the initial estimate rate included in the performance plan.EUR 8.7 million balance related to the Charging Zone 3 in line with the last year; EUR 0.7 million balance actualization and EUR 0.4 million balance due to the traffic risk related to the Charging Zone 2 due to higher traffic managed versus the planned one in the [ tariff ]. And then we have a balanced reversal of minus EUR 19.7 million, mainly coming from 2020/2021 traffic COVID recovery. Moving now to the non-regulated business; also here, we can see a good devaluation compared to last year with an increase of about 19% on the back half of the rising activity international markets. And now let's see the cost evolution in the first quarter.Total operating costs accounted for EUR 177.1 million, up 6% or EUR 10 million year-on-year mainly due to the increase in personnel costs in response of the high volume of traffic to [indiscernible]. Staff cost is up 6.7%, mainly due to the actions put in place to manage the high level of traffic. Then we have fixed component remuneration is up EUR 2.8 million, mainly due to the increase in headcount for 75 average units at the Group level, primarily controllers and technicians. This is in line with our planning. The variable remuneration increased by EUR 3.2 million year-on-year mostly due to the flexible allowance for air traffic operators to manage traffic peaks.Social Security contributions grew by EUR 1.7 million compared to the first quarter of 2023 due to the above mentioned increases and other personnel costs increased for approximately EUR 1 million related to the health insurance first half redundancy incentives. And then the other operating expenses; this line increased by 2.8%, it's about EUR 1 million, mainly due to the maintenance costs and professional service, partially offset by a reduction in energy costs. The capitalized internal works related to Group personnel activities in investment projects are stable.This compared to the first quarter of 2023. And now let's see the P&L [ below line cycle ]. EBITDA stood at EUR 16.5 million, nearly doubling year-on-year as a result of the higher air traffic volume, which pushed up total revenue. This is partially offset by the related increase of personnel costs. D&A stood substantially in line year-on-year, and we reduced also lower write-downs compared to first quarter 2023. EBIT is negative at EUR 10.3 million, an improvement of EUR 9.7 million compared to negative EUR 19.9 million reported in the first quarter 2023.Moving down to the net financial expenses amounting to EUR 2.1 million in the first quarter, an increase of less than EUR 1 million, mainly due to the increase of the interest rate on debt, partially offset by financial income from the Balance Actualization mechanism and from bank deposits. Current and deferred taxation overall amounted to EUR 1.4 million, decreasing EUR 1 million year-on-year. As a result of these movements, the bottom line goes with a negative net result of EUR 13.8 million with a significant improvement compared to the first quarter of 2023, plus EUR 8 million and in line with ENAV's quarterly trend affecting the traffic seasonality that is typical of our business.Let's now move briefly -- let me now briefly update you on our liquidity and financial position, which, as you can see, remains very strong. We ended the first quarter with EUR 245 million of cash with additional undrawn credit lines for EUR 199 million after which EUR 150 million are committed. Net financial debt stood at EUR 300.6 million, decreasing EUR 21.7 million compared with net debt of EUR 322.3 million as of the end of December '23.The free cash flow stood at EUR 22.3 million. It was EUR 20.5 million in the first quarter of '23 and is mainly driven by a net cash in from operations for approximately EUR 50 million, an increase of EUR 12.1 million compared to the first quarter '23 that reported a cash in of EUR 37.7 million and EUR 27.5 million cash out related to the capital investment. As a result of these changes, net-debt-on-EBITDA ratio at 1x, slightly decreased compared with the end of 2023 that was 1.07x. On the back of the results achieved in this quarter, we are fully reconfirming our 2024 outlook.And with this, thank you for your attention, and I guess we can move to your questions. Thank you very much.
[Operator Instructions] The first question is from the line of Caburrasi Carlos from Kepler.
I have three. The first one is on the dividend side. I'm not going to ask you to provide any guidance yet or anything like that. But how likely is it that once the RP4 is approved and net dividend policy is presented. Then the second one, so far, traffic remains strong and leisure is still on the driver's seat. What's your view here?For how long do you believe this situation is sustainable? And what are your future expectations? And lastly, I wanted to comment on a read-across from France. As recently, we have seen some tensions there with the traffic controllers. Do you believe that in Italy, the situation is better or will you see some tensions as well?
Okay. I will start from the third one, answer your questions. So for what concern our controllers of the news let me say that at the moment, we don't have a particular element of discussion with the staff. So other than try to -- and this is coming with the second -- your question, the traffic volume. Just trying to better play in the summer season where the traffic will be very, very important, really important. The forecast is going -- I mean it's at the moment very, very significant.And this is the only, I mean, main thing that we are talking with our staff other than the renewal of the technical part of the contract that we don't see any particular pressure on this second item. So at the moment, I don't have anything to underline on our discussion with them. Other than -- so I can answer also the second point, the traffic, the strong traffic that we are now managing. This traffic is going to be strong also for the second quarter.The very last operative forecast that [ your ] controller give to our, let me say, controllers -- center said that even in the summer, the next 8 weeks because they have a very short, very strong forecast for the next 8 weeks is going to be more or less the same level that we're having now. And this is something that is quite important for us because as much as we get closer to the summer season, we expect that the level of traffic should, in some way, decrease a little bit. I mean the increase -- the trend that we are having now should not be the same because, as you can imagine, the air space is kind of already managed high level of traffic, much higher than the one that we are normally managing during the first quarter.So saying that, in the year, we expect to have a very strong increase even in the summer. We still need to wait some more weeks to understand if July and August will be so strong. We believe that it cannot increase by double digit as is happening now because actually, there is no more room in the space. [indiscernible] is not part of Europe, actually, they have a capacity problem that probably in some way will affect all the net or the European network. So even if we expect to have increase of traffic, also a strong increase of traffic also for the next month, probably it will -- will slow a little bit down.For what concerns the dividend, yes, the discussion with RP4 is going on in this period. So I confirm that in this moment, we can say that the timeline that we have given is something that will be probably respected. So we believe that within the end of the year at the most at the beginning of the next year, January, February 2025, we think would be the finance fixed. So we will be able to deliver our new business plan with the new dividend policy. Did I answer your question?
[Operator Instructions] The next question is from the line of Bacoccoli Luca from Intesa Sanpaolo.
Hello. Good afternoon, everyone. Can you hear me? Okay. Good. So three questions from my side. The first one regards the staff cost increase. So I was wondering if the trend seen in the first quarter can be projected also for the remaining part of the year. The second one regards the full year guidance that you reiterated. But in the first quarter, basically, in absolute terms, you already delivered half of the increase embedded in the full year guidance. So what should we expect in the coming quarters in negative terms?Just to reconcile the full year guidance with this strong start to the year that we have just seen. And finally, the other question is sort of a follow-up on RP4 regulatory period. So I know that maybe it's too early to talk about the next year tariffs, but given the significant increase on OpEx during the last two years because of the inflation. What trends should we expect in 2025 for tariffs? Is it fair to assume a stable level increasing or on the contrary, a drop on the back of the significant jump on the service units?
Okay, Luca, thank you. So starting from the first question on staff cost, let me say that yes, probably I confirm that the staff cost trend that you are seeing now could be more or less projected to the end of the year. The only element that we are still considering in this moment is the summer season. We still have to understand how much will deeply impact the increase of traffic in the summer season because, as you know, we are already reaching the highest record of traffic managed. So in the summer, this is much more important for us.If you take into consideration that August and July too is almost -- we manage almost double the traffic that we normally manage in January and February. You can imagine how much is impacted if we increased by 3% or by 6% because the volume is much higher. But more or less, I can say the staff cost would be more [ than ] projected. For what concern the guidance, yes, from one side, let me say that the weight of the first quarter in terms of results, how much they bring to the total result of 2024 or normally of the year is very, very low for the traffic reason mainly.So yes, we performed very well. This is much -- it's very important. It's a very good stepping point. But I think it's much more important how the second quarter and the third quarter will impact the total -- the full year results. On top of this, it's always some RP4, some new regulation thought that is going on and negotiation to where we are definitely thinking what could be the best strategy to apply even in 2024 to find -- to put the company in -- not only in safe harbor [indiscernible] position to perform well also in the next regulatory period.Say that before discussion is going -- so answer to the third question, probably, I cannot say anything about the [indiscernible] because as you can imagine, 2025 tariff is something that is -- will depend, first of all, on the negotiation on the cost efficiency target, that is something that will be finalized in a couple of weeks. And then you can imagine that this is a very important part. The second part, it depends on the balance because the tariff applied is sometimes it's somehow different from the Duke so the KPI that is considered for a cost efficiency mainly for the balance.In 2025, the balance will be quite important. Say that I think it's important to underline the RP4 discussion is, I guess, this is something that this information could be usable for all of you, have seen a Single Sky Committee a couple of weeks ago, where the Commission presented the 2.1% CAGR cost efficiency target. And after discussion, the new target was 1.8%, but the discussion went wrong. So no decision has been taken. The Commission is thinking how to better move forward. There are some informal discussion with the state, we had with our national authority, some other discussions.Probably, we expect to have a new proposal shortly -- just in a couple of day, and we are quite confident that this could be a good proposal also for our parts for [indiscernible]. So it should be a couple -- just a couple of days let me say -- at the most couple of weeks, months, probably will be much, much -- will be a little bit less to have an answer of what will be the cost efficiency target given to the European country in terms of cost efficiency. But we are quite confident at the moment of how the discussion and the negotiation is going on. We are quite positive.
The next question is from the line of Arsova Aleksandra from Equita.
Three on my end. The first one is a follow-up on regulation on RP4. So you mentioned that the last proposal is around minus 1.8% CAGR over the next 5 years. So let's assume that this is the final one or it could be even maybe better, but let's assume 1.8%. So with such a target, will you be able to make EBITDA grow, let's say, in line with past track record or mid-single-digit in the coming years.The second one is on the bonus/malus. Again, looking at the proposal of the PRB, they want to set up, let's say, three elements to determine the bonus/malus, so ATC disruption, weather delays and system reliance buffer. So this new setup of the bonus/malus will make life for you easier or tougher to achieve the bonus/malus target?And the last one is on the guidance full year '24. So you confirm that the mid-single-digit growth in revenues and EBITDA. Just a clarification, what is the assumption you have in the guidance on the bonus element in euro million? And what could be the sensitivity of this guidance depending on the summer season contract you are negotiating currently with trade unions?
Okay Aleksandra, and thank you for this nice question. Let me see what I can tell you about the first and second question -- I will answer together -- the 1.8% [indiscernible] target that at the moment is on the table and the bonus/malus negotiation for [indiscernible] capacity and [indiscernible]. This is something that goes together in some way and the negotiation is going together because from one side, the European Commission [indiscernible] understand that if you push too much on cost, probably we may have problem of capacity.I'm not talking about Italy. I'm talking about all European Network and above the North Europe -- the North part of Europe network. Saying that this is exactly the point of discussion in this moment. I wouldn't -- but I cannot say anything. I wouldn't -- I mean, in this moment, I wouldn't take into consideration this 1.8% at the moment -- waiting for the new proposal if there will be any in some days. And then we -- maybe on the base of the new target, we may have probably another discussion also total concern the capability of the company to reach this target.At the moment, we understand that there is a new target that could be, in some way, presented where the company is, in some way, thinking positive about this in terms of reaching the target and continue to grow. So what concern the bonus/malus this discussion goes together with this cost-efficiency target, let me say that starting from the beginning position of the PRB in particular, the new discussion group -- the table to discuss in different targets at the least for what concern ENAV. We have explained our reason.And we believe that the new target that is giving to us now in a future way in this moment is for what concern bonus/malus -- sorry, the capacity target is something much better than the first one. So even for the bonus/malus, we believe that we could continue probably to challenge to try to get also for -- and will be always more and more difficult, but I think it's the job of our regulator that is, in some way, try to push all the system, all the network to work at [indiscernible]. The third point was related to the -- the guidance assumption. What was the question? Sorry, I forgot the -- your question about the guidance.
So the sensitivity on the EBITDA guidance, depending on the summer season contract and how much of bonus you will include in the guidance in euro million.
We didn't disclose this second information -- information, but we believe we could be able to reach part of this bonus even with an increase of traffic -- with the increase in traffic that we are having. In our forecast and our guidance, there is a part of this bonus. There is a part of the traffic that is increasing.At the moment, we didn't change -- I mean, we didn't update any figure of the guidance just because the summer season would be the one that in some way would drive the 2024 results. And in the moment, our figures are confirmed. So for catastrophic bonus/malus, part of the bonus/malus is something that we are quite confident in the moment to reach.
The next question is from the line of Limite Marco from Barclays.
I've got only a couple of questions left. So you were mentioning earlier that this in 2025 tariffs, we will see a meaningful amount of balance, so if you could just remind us, number one what was the inflation balance in 2023 that will go in 2025? And what do you expect actually for the inflation balance in 2024?Because I can see that in Q1, the number, yeah, wasn't mostly different from last year? And also, the second question but still on a similar topic out of the EUR 670 million of, let's say, pandemic traffic balance, how much have you been able to use in '23 and '24, and therefore, how much is left to be used for the years ahead? Thank you.
[indiscernible] the 2021 traffic balance -- let me say that you should consider -- you should divide more or less by 5. So if the total amount divided by 5, you find somewhere -- something around EUR 120 million, EUR 127 million, EUR 125 million per year. This year, I'm thinking -- I'm talking about 2024, the total, the net cash -- the net balance reversal will be around EUR 100 million because we have some balance that we give back to market, that's the reason.But if you look at the 2021 recovery balance, so the EUR 670 million value. You should consider more or less EUR 125 million, EUR 127 million per year [indiscernible]. And this is for what concern the first one. For what concern the inflation 2023 inflation is around EUR 60 million, EUR 62 million, this is the amount of inflation recognized in 2020, if I'm right.
And what is the expectation for '24 for the inflation balance?
[indiscernible] the inflation rate with respect. No, I'm kidding. This will depend on the inflation rate, the final inflation rate that we will have by the end of this year. In this moment, it could be a range -- you know that the inflation that in some way is accrued in the previous year is something that is a carry-forward. So seeing that we should wait the end of this year to understand what could be the final value depending on the difference between the one inventory -- [ trended ] tariff and the one that is the -- it will be the actual one. In this moment, I can imagine a value higher than this EUR 60 million, but it will depend on the final inflation for either.It could be another maybe under EUR 15 million, EUR 20 million on top, but this is just an idea. We should wait some months. I mean, we normally start to count the financiation -- the real financiation in the third quarter. In the third quarter, we have a good idea what could be the final one. In this moment, we just have a first, I mean, first indication but as you can see from the figures that we have explained. But it's just -- it's a very, very first indication related only for what concern Q1 then that is a very small part.
Okay. And actually, if I can add one more question on a different topic, which is CapEx. So I mean, as part of your business plan, you said that you want to accelerate on technology deployment. And therefore, I assume that will drive higher CapEx in 2025 and forward. So I just wanted to understand with you, is this like a discussion you actually have also with the regulator to what extent what's the sort of amount of money you can -- you can do and you can recover or it's all your decision and then you just bear the fruits of, let's say, the cost efficiencies that are coming from the CapEx. So is that like your choice or it's something you have to agree with the regulator?
Okay, Marco. It all starts from our -- I mean, choice, our strategy. We share with our regulator, and we also share with the airlines -- in the meeting that we call the consultation meeting with the airlines because we have to -- in the consultation, we show some of our figures in the performance plan. And one of these is the investment plan.Say that we are not really increasing in a very, very important weight level of our CapEx and more than our CapEx our D&A that will be paid by the airlines because we are coming back to the level that we have already declared in the, let me say, in a situation right after the target when we said that we are going to go back to a normal level of depreciation that will be -- sorry, the CapEx that will be around EUR 120 million per year. That if you remember, is more or less the level that we had also in pre-COVID in 2018, 2019.But in that time, most of this CapEx was to maintenance and was the maintenance investment. Now there are investments to develop a new technology substituted in some way, the old one. If you think, for example, one of the most important one is the [ co-flight ] is a new technology that we use in our ACC to manage the traffic that will help us to be more -- to perform better in terms of cost, but also in terms of capacity.And this is a project that is now really at the end, we will actually implement in a few months in our first ACC. This is something that is always CapEx, but it's kind of substitution of CapEx. But the level -- the total level of CapEx that is important is, let me say, back to normal to EUR 120 million. So in some ways, we don't expect to have any problem with the regulator or with airlines to be approved because it's something that is already in their mind. It doesn't increase the level that they were used to be with the D&A and the tariff pre-COVID period. Did I answer your question?
[Operator Instructions] We have a follow-up question from the line of Arsova Aleksandra from Equita.
Yeah, a very short one. Now in June, we are having the European Election. So do you expect maybe that this will change something in the negotiation process or maybe some delays or people in the technical bodies you are discussing with to be maybe replaced?
This is just my idea. They don't -- I think they don't -- they will not change any technical body part of the commissions that are actually in some way, analyzing, discussing and bringing forward before because they don't have the timing probably to do it. So my idea is they will keep this team until the end of the RP4 negotiation and approval of the performance plan. And then if change will be made, they will be made only -- that will make only in that time, not before.
[Operator Instructions] Gentlemen, there are no more questions registered at this time. Do you perhaps have any closing comments?
Thanks a lot for this conference call. Obviously, the Investor Relations team remains available for further follow-up. Thank you very much. Bye.
Thank you. Ladies and gentlemen, thank you for joining. The conference call is now over. You may disconnect your telephones.