A2A S.p.A. (A2A) Earnings Call Transcript & Summary

Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the A2A Full Year 2019 Results and Strategic Update Conference Call. [Operator Instructions] At this time, I would like to turn the conference over to Ms. Renata Bonfiglio, Head of Investor Relations. Please go ahead, madam.

Thank you. Good afternoon. And welcome to our conference call with A2A CEO and CFO, Valerio Camerano and Andrea Crenna. Due to the current situation, we are located in different places and therefore the call will be carried out with this limit. The material of this call and the press releases will shortly be sent to you. Now I leave the floor to Valerio Camerano.

Thank you very much, Renata. First of all, I want to apologize with all of you. I'm just stepping out from our Board for the Board went a little bit longer than expected. And I think the reason why -- unfortunately, we had -- we have a little bit in late. Again, apologize to all of you. And we will be soon issuing our press release, but we have decided to start the conference call. Maybe starting at the moment from our general view about the coronavirus crisis. I know that most of you have delivered the questions over to the team on this topic, and so let me take the chance to go to this general issue by sharing with you what are we doing and what are our first evaluation regarding the impacts and how we are dealing with them and tackling them. So first of all, we -- we'd been rapidly putting together crisis teams on this topic that is constantly monitoring the evolution of the situation. We also immediately implemented the measures necessary to guarantee our business continuity innovations. Of course, we cannot control the entire situation. We cannot exclude the downtime and the volume of certain areas of the company. Let me drive you a little bit into the main areas of potential impacts for us. First of all, Market, the division, Market division. So we might expect some postponement in the payments of the clients. We only, at the moment, expecting delays as the -- apparently, also hold to this [ only ] by suspending the payment to the next month or something. But we are already talking, at the moment, regarding potential postponement of the target date, payment target dates. So we might expect some due date on the -- of this topic. We also expect some contraction in terms of the volumes, the consumption volumes, mostly for big clients, and from a wide reduction in the potential economic commercial development. Globally, the division, the Market division, we don't expect at the moment impacts over -- in the region over EUR 10 million but not over -- I'm talking about impacts for the overall 2020. For the Networks, we might get some difficulties in operating conditions, not at the moment. We are on the perfect continuity at the moment. But it may be -- potentially also here, in this area, some postponement in the payment of distribution fees. The value of the impact at the moment, we expect it's not bigger than EUR 5 million. So it's not really a big, big, big issue at the moment. On the new environment, potentially some reduction on the undifferentiated waste and potentially some lower volatility in the glass, plastic treatment. Further, this division, we're now thinking about something much bigger than EUR 5 million. Now we might have some costs, emerging costs for the management of the [ American ] Smart DPIs for incremental costs for software or PC to ensure that the entire area, entire community of people is in the condition to work for the Smart Working. We, at the moment -- a quite important portion of the company is Smart Working. It's working pretty well. We have been able to deliver very soon the infrastructure and the PCs to arrange that. So at the moment, we don't have the continuity issues or impact on the productivity. So globally, we feel we are structured to follow this kind of structure to also to monitor it and make sure the right continuity in this area. For the time being, we don't expect impacts at the moment bigger than EUR 20 million EBITDA. But of course, we need constantly to monitor the evolution of the scenario. Cash flow of course, the decision might be different. Cash flow might be different. I mean we might expect [ there an amount or ] something impact on cash flow. But at the moment, we don't foresee absolutely any particular issue on this topic. About the prospective in parts of the operating activity of the company, clearly, we also do see some direct and indirect impacts on the gas market and, consequently, the energy market. At the moment, we're following this -- the evolution. We don't have a -- grip the idea on the impacts. But certainly, we do see decreasing forwards on the generation prices, especially for the open activity, for the [ Smart Work ] generation activity. There might be some impacts. On the other side, we do see falling CO2. So maybe we can discuss this a little bit more on the -- on our vision -- in our vision on 2020, potentially going forward, 2021, for each of our view. So I think on the coronavirus topic, we don't see more than debt issues, more debit issues. We have -- on general side, we are clearly committed to try to identify the first mitigation actions on these potential effects. It comes out from the combined effects of recent M&A transaction that we have already closed. For example, the new project or the upside from Electrometal, our recent M&A transaction. We're also defining a program of OpEx containment in [indiscernible] and also adding policy, interventions on adding policies. So these efforts can have an important impact in 2020. And we think that, to certain extent, they might mitigate, at the moment, in a satisfactory way, the potential impacts that we have identified at the moment on the coronavirus issue. I think at the moment, you should have been receiving our press release. So if Renata agrees, I would be maybe starting the presentation, the presentation that you already have on the consolidated results 2019 and the -- some considerations on the 2020-'24 strategic plans. I will the, after this presentation, I come back to you with our view on what are the main plans and potential guidelines on each of our views for 2020. So I go on and I invite you to follow our presentation, the results, 2019 results and then strategic plan. I will start on Page 3. Typically, we recap the main plus and minus trends. On the positive, we had interesting hydro production this year, better than last year. We had the contribution from solar plants in excess of EUR 11 million, additional EUR 11 million versus 2028 (sic) [ 2018 ]. So we continue to build up of our photovoltaic plant bases. We had a considerable positive results of retail margins. This is a result of our enlarging market share of big clients, of large clients, but also the enlarged customer base on -- in the residential market. We also have positive -- on the contribution from safeguard and some regulatory components that gave also their contribution on the retail businesses. So very good, very good numbers posted under retail. On the waste, we continue to observe waste treatment prices strengthen. So globally, despite the increase in some of the costs, especially for cash as a -- and the issues of cost and, for example, trends on plastics or paper, globally, we have a positive contribution coming from waste treatment as a BU and as a compartment. Water cycle tariffs and heating prices, positive contribution, both increasing from 2018. And finally, we have the consolidation of ACSM-AGAM on 2019 numbers for a number in the region of EUR 70 million compared to EUR 40 million of 2018. So this is the list of plus. On the minus, we have the environmental markets. Most of you know that we have already anticipated this number, number which is in the region of EUR 100 million lacking in 2020 and '19. We knew that, so it's negative. And under the negative is the impact for the Grottaglie landfill closure. That's an impact negative in the region of EUR 18 million. So that's as much regarding highlights. Then if we go to Page 4, you will see the key financial indicators. Revenue's up, mostly for the contribution of the sales, increasing gas sales in the free market and increasing volumes in the large account clients. EBITDA, which is pretty much in line with 2018 despite the missing EUR 100 million of green certificates and other certificates -- contributions from environment of the ordinary EBITDA is in line with 2018. On net income, we're posting a record year for A2A. So we -- actually, this is the best result ever since the creation of A2A. That's also part of the strong contribution of the ordinary business, but also more minor devaluation. Mostly, we had more devaluation. There's the devaluation on Monfalcone in 2018. That's why we're upgrading the value of CCGTs. Andrea will come back on this point on the result of the capacity market results. So group net income ordinary, if you adjust mostly 2018, for the values impairment devaluation and EPCG numbers in 2018, we come with something which is basically in, ordinary, 2019 in the region of EUR 378 million. That's not away from the ordinary, for reported group income. Net financial positions, if you -we have an effect of EUR 100 million related to IFRS 16 adjustments and then there's a change on perimeter, mostly because in 2019, we had, in our books, still the [ EPCG ] impact. And then we have, of course, the impacts coming from the acquisition of some companies, particularly the Electrometal and the [ asset swap ], 2 acquisitions done in the last part of 2019, and then the acquisition of [ digital customers ]. Again, it's a strong acquisition for the environmental view. So that's for the net financial position. If we go to Page 6, we have a presentation on the situation for the BUs. As you can see, all the BUs have contributed positively. On the organic -- on the inorganic growth, if you scrap the one-off, '18 and '19, which are pretty much similar. They edge along EUR 40 million, with the Generation BU down by EUR 72 million versus the EUR 100 million that we were posting at the beginning of the year for the lack of the [indiscernible]. So the BU has recovered something in the region of EUR 30 million, thanks for the hydro production, thanks for the functioning of the CCGTs and the positive results on the MSD. On the Market, EUR 31 million odd, that's 2018. Again, as I said earlier, very good results. That's the effect of consolidation of GSM for EUR 17 million. And the rest, pretty much, is coming from the growth in retail for EUR 20 million, the retail by which I mean growth on the B2C and the B2B side as well. Waste was up by EUR 2 million, which is good. I mean from our perspective, we have up the collection. That's mostly related to the IFRS results. And in fact, we have a good flat zone on the controlling of WTEs, which you'll hear in a minute from Andrea, so positive also on Waste. Networks, very good results for Networks. It's up by EUR 35 million. We have a lot of revenues, including a lot of revenues on gas. That is up in the water business. We have a very positive result also on district heating. That's due to the scenario effects versus 2018, so very good from -- very good results on the operating side also from the demand of B2B. I'll think pass on the discussion now to Andrea to comment on the specific results to each of the business units, starting from Page 7. Andrea, it's your stage. Andrea?

Hello, can you hear me?

Yes. Go ahead, Andrea.

Yes, Andrea?

Okay. Can you hear me now?

Yes.

Okay. Sorry. Page 7, Generation was definitely, as Valerio said, a positive year considering where we were starting from. We slowed down in the fourth quarter, mostly due to the weak gas prices and a bad performance in the coal generation, where basically contribution margin started to be very negative so we stopped producing. The overall performance on the ancillary markets has been, once again, very satisfactory. We reached close to 150 million on the full year. And the second point I want to raise on -- your attention on is the total contributions to our EBITDA in the business unit from the renewables, photovoltaic plants, where the EBITDA reached EUR 28 million, EUR 11 million above last year. If you turn to Page 8, the Market, 4 major drivers of the excellent performance. Customer base on the free market, 200,000 customers more, in line -- more or less in line with the past year and a bit more than our budget. The customer base, overall customer base increased a little bit. The second driver was unit margin. Here, we reported a slightly decreasing margins on the electric customers and increasing margins on the gas. Overall, once again, we have not seen the reductions in the unit margins mass market that we were expecting at the beginning of the year and we would plug into our plan, which we have share with you several times. On the other hand, on the large customers, the B2B, margins have been increasing, and likewise, volumes have been strong. Then we have brought regulatory components and the safeguard, which has also been very positive for what is really a performance much above our planned results. On the Waste, 2 numbers which are worthing to be mentioning. Grottaglie several times explains basically the very, very tiny growth year-on-year. But you all remember that we got 2 -- actually 50%, 2 out of 4 of our WTEs stopped for plant maintenances. This is all the rest being equal EUR 78 million EBITDA shortage. And the second point, which we are keeping on seeing on the market is the increase in the waste prices when they're brought to the WTEs and the other treatment plants, where the increase has been 15% -- above 15% for all the cases which we -- where we had the possibility to renegotiate the contracts. On the Network, I think Valerio already explained pretty well. If I move to Page 13 -- no, sorry. If I move to Page 11, where there is the waterfall of the net income. There is a EUR 9 million net effect on results of our fair value of the asset assessment that we carry out every year. That's the [ algebraic ], some of -- a revaluation of some of our CCGT plants, in particular, the 400-megawatt groups, which we completely written off a few years ago when we mothball those plants. And now they are back into profitable operations. Coupled with the outcomes of the capacity market, that drove a revaluation of these assets for slightly more than EUR 100 million. And then we, instead, on the other sign, written off the residual value of the goodwill of the electric distributions for EUR 85 million. Grottaglie was also impaired, but that was already included into our semi-annual results. CapEx, which is Page 12, are quite self-explanatory, and same is on the cash flow. On the cash flow, you will see EUR 76 million of negative net free cash flow. It's a small negative variance, which basically can be explained with the dividends and the CapEx, which have grown significantly versus last year. And you will also notice a positive EUR 50 million change in perimeter, where the positive net is basically due to the tranches of the EPCG residual shares that we have completely sold out. So we have today completely exit the Montenegro story. And then you have separately the impact of the change in the accounting principle IFRS 16. I will handle the floor back to Valerio for a few final comments on the strategic plan. Valerio?

Yes. Thank you, Andrea. And let me dive a little bit into some of the topics we are reporting in the strategic plan. First of all, maybe -- play nice. I mean it's -- we're not disclosing today the full content of the business plan. This is actually a decision made by the Board in light of 2 elements. First of all, the potential discontinuity that may happen in the new Board of this company. So in light of this potential discontinuity, the Board has approved the plan, has approved the numbers underlying the plan and, of course, the strategic guidelines and topics underpinning the plan. At the same time, the Board has decided to submit the plan to the new Board in order for the new Board to evaluate it, reevaluate it under the composition of the new Board. And also -- so that's basically the reason why that we only sharing with you today the key messages of the strategic plans, and we have reported the key messages of the new strategic plan also in our press release. So I can say that we have a quite strengthening in our business plan. We have decided to, first of all, to build a new plan around our DNA, our sustainable DNA. So we have turned our project -- our plan, it was designed under the TEC, you will remember, framework into this threefold new strategic partner: a climate action, the circular economy and smart solutions. So we have developed 3 sustainability trends, and under those sustainability trends, we have taken full commitment under 60 different CCGT KPIs. Beyond that, we have identified a repositioning of the company according 3 main big trends. First of all, a further and a strong increase, like expansion, in renewables for the company. So we have -- we're actually increasing 500 megawatt by 2024 and up to a minimum level of presence of 1.5 gigawatt installed capacity of new, but mostly, solar in our horizon. So this is -- will be done through M&A and through greenfield, so thanks to our agreement to purchase 1 gigawatt of greenfield potential capacity, potential development with Talesun, so some expansion in renewables. We confirm the shutdown our coal, fuel-oil plants by 2025, potentially by 2023, maximum. Also presenting a set of projects of flexibility and reliability supported from storage on ultra speed plant and on the peakers, gas peakers. So there's a full cycle of intervention on renewables and on gas flexibility to make that accomplishment and to be fully functional to the development of the new transition, energy transition plan in the country. On customers, this is a second use of [indiscernible] in this plan. We have a challenging growth. We're actually targeting an increase of our target of 10% of full market utilization, which basically means to get something from a -- to arrive to 5 million clients at the end of the plan, which is a big push in our customer expansion decision. This will come mostly from 3 legs. The first one is the existing expansion plan we've been delivering in the last 5 years. The second leg, which is a deep participation in the tenders will be auctioned in 2022. And the third is the start-up, launch of a new start-up, which will be operating next week in the country. For the time being, under a familiar trend, a beta tester, which is called NeN, N-E-N, which is a new 100% digital, not with new players in the country. It's going to be one of the first CE in this country, which is set-up, funded and financed, launched by '20, but fully independent and autonomous versus the A2A present structure organization. So on the second point, customers, there's an increasing ambition, [indiscernible], a stronger ambition on the existing customer base, on the tenders and on the digital growth in this country. Third pillar is recycling. So there's a -- we will complete our growth with 12 new waste treatment plants. Nine have already been authorized and in constructions. And we will, at the end of this process, basically managing something like 60 of our company plants in this country. So we will accelerate our presence in this segment. And fourth element, we have decided to step in more consistently on the industrial segment. You may remember that we've been mostly engaged so far in the human segment. We have taken the decision to accelerate our growth in the industrial segment in the country. So more renewables, more customers, more exciting capacity and, above that, a strong investments on the networks, mostly on the electricity networks, will enable the company to increase its RAB base and also further development of heat management and water cycle. So on Page 16, you will see the development broken down for each single BU. So most of the Generation development will come from solar development and the flexibility contribution. The development from the Market will come from the 3 main areas of development, as I comment earlier. And the addition EUR 100 million on top of existing EBITDA for Waste will come from the completion of our program of existing plants. On Networks, most the expansion will be coming from the electricity and district heating and the water cycle. So the breakdown of CapEx. There's a big CapEx project program, almost EUR 4.5 billion. 2/3 of this CapEx program will be dedicated to development program, which were the areas of the presence of our company. By the way, at the end of this program, the company will be even stronger, will enjoy a stronger balance and productivity in terms of business areas. We'll have almost 30% in actual hedging between clients and fleet. So just basically 20 terawatt hour of production, 20 terawatt hour of consumption, with a more predictable power generation. So we'll go from 32% to 52% of regulated business in the Generation. And we have a much better asset balancing. So we do see, also thanks to this plan, not only a strengthening in our core competence of the company, the customers, waste, tender and generation, in particular, new generation, but also a quite significant derisking in our profile. So Page 17. Page 17 is the dividend policy. So we have approved, the Board, today the dividend per share, which is EUR 7.75, which basically -- it means it increased by 10 by 7 -- 10.7% versus 2018. So we confirm our growth dividend policy going in 2020. And from 2021 on, we confirm the minimum growth of 5%. So that's basically what we have -- we wanted to share with you in terms of presentation, so 2019 results, the main topics of 2020-2025 industrial plan. I would now turn on, on our list of other topics that we have recalled from your questions. And so some of the questions came from some of the analysts and investors. So I'm now going through some of the issues or topics that you have raised. And hopefully, we'll be able to cover the most -- majority of them. And of course, in case we will not be able to do it, the entire IR team is available for further comments. So the first topic I would like to discuss with you is the 2020 environment. So how are we dealing with 2020 environment? What are the main topics that we are now tackling? So let me start from Generation. Well, the energy scenario has clearly worsened starting from November. So we are assessing -- we are losing -- we're observing gas prices going down, coming to the TTF's decrease. So that's basically the result of certainly a warm winter. So we have experienced a higher-than-average temperatures and also some international -- the elements, like oil price crisis between Russia and Saudi Arabia. We do start to see also now some first impacts from the corona virus that we are actually following. Okay. This contraction has impacted clearly the PUN, the power prices. Historically, it's very linked to lower gas, our gas prices. So we have now some impacts on the PUN -- especially on the PUN. You'll see that we have hedged -- already hedged more than 50% in 2020. So a big portion of our result is not open yet, but we have to deal with decreasing PUN scenario. On the contrary, we do -- we still see quite strong spark spreads. So spark spreads. So spark spreads are still quite high, by the way, one of the highest the last years. But that's due to the fact that the fall in the power prices is more than -- is offset or more than offset by the price contractions on gas and CO2, obviously on CO2. So if from one side, we do see decrease in power price affecting our potential ideal production, the other side, we still see positive evolution of spark spread and not only 2020, but also in 2021. Today, we have a hedge ratio on WTE and on hydro, which is something around 55% with a sell time around EUR 59 per megawatt hour. So globally, we still have not hedged volumes in the region of 1.9 terawatt hour. So that's our main areas of focus at the moment. On market, we expect we will continue to pursue an expansion in the free markets. Something which is not far from what we already accomplished 2018, 2019, which is basically additional 200,000 new free clients. And we also have -- buy -- the acquisition we have made, buying ACSM Energies of the utility of the General. And also, we do expect already, in 2020, some positive effects coming from our new startups and then there is a focus on digital work that we'll start delivering results, including 2020. If I move on to Waste, we have a positive contribution at the end of the year, as I commented earlier, from M&A. So we're something between EUR 6 million coming from the acquisition of Electrometal. And we do expect, I confirm that we do expect slight growth on treatment prices in 2020. As far as the authority regulation impact, most of you, some of you ask your question at this point, we don't see -- we have no impacts on collection in 2020, and we have no impacts on 2020. So we -- no special assumptions have been made from our slide on this topic. We do see a steady state in terms of collection and treatment in 2020. On networks, that what we do -- we actually, regarding the regulatory effects coming from the revision of the regulation on gas networks between EUR 6 million and EUR 7 million down versus 2018, water will benefit from tariff increase in 2020. We are reporting also quite small decrease on the recognized OpEx from the level on the electricity. So negative -- some negative effects from gaps in electricity with some imported FX coming from water. That's pretty much regarding the networks. So that's overview regarding the 2020 on main topics. Just 2 months, we're not really far away from what we've already done in 2019, 2018. So first 2 months are quite in line with the previous months. But clearly, we will have to deal with the decrease in prices on energy for the rest of the year. On M&A side, let me give some update on the main dossier, order. Let me start from -- in [ IB GLC ] So we are now very close to the finalization of the transaction. So we -- the Board will be proving in the next weeks, 2 or 3 weeks or -- and also city -- cities now will be down. They will be proving their transactions. The transactions, we expect, it will be completed in the month, clearly, literally, in the end of March, beginning of April. In terms of accomplishment of the formal side that clearly will take more time. The impact of this is going to be totally flat and we will have something like 18,000 gas distribution points on top of existing. We'll be contributing our -- in the company, we will be contributing our 250,000 lighting points of A grade public lighting. So we're actually entering in the group with the holding in the region of 33% of the newly created JV. But A2A will certainly play the role of industrial part. So with the relative governance, we will -- we were able to negotiate. We will able to consolidate the numbers of IB into -- what are the key numbers of A2B -- sorry, AB? Revenues of EUR 220 million; EBITDA, around EUR 35 million; and the net income of IB for 2019 in the region of EUR 12 million. So that's the numbers. IB has practically no debt, EUR 2 million of debt. So it's a company with -- sitting here on cash. So I think we're expecting anything by the end of the month, the beginning of 2000 -- the beginning of April, the approval by the shareholder general meetings, both from IB and from A2A. Not really the way, I mean, remunerating will be actually the shareholders into contributing some point of deliveries. And then therefore, we just need to wait for the anti-trust clearance, which is expected from May, June. So if all this plan would be respected, we expect to the company to new JV, which will be consolidated by [indiscernible] with our CEO, will be effective July 1, 2020. On the, maybe Veneto. Before you know, we own -- on the M&A on Veneto, we're actually working out the JV. So we will try to close as much as we can over the next month or so, which will be basically delivering a common investor plan at the end of 2000 -- by the end of March. And then eventually working out a potential governance and structure the deal in April. So we actually are targeting potentially the end of June as a target date to complete this deal in terms of signing. The combined effect, of course, this is still open. Though it's not certain. We're working to make that to happen, but it's still ongoing. The combined entity Verona, Vicenza has an aggregated EBITDA in the region of EUR 150 million and aggregated net income of EUR 30 million. We aggregated the net financial position of Vicenza and Verona will be the region of EUR 280 million. A few comments on the acquisition of the Ascopiave Insurance. It's something that some of you been asking. So the reason why we wanted to buy is because we were offered to buy this package of shares by the exiting private shareholder. We actually -- this is not a contest -- a conflict contest with Ascopiave so we will not be a hostile shareholder of Ascopiave. We already made clear that. Our aim will be to contributing this participation into the Verona, Vicenza JV. So beyond the acquisitions of our assets we are discussing with the company -- with those 2 companies, so we're discussing some regional assets that will be contributing in the company in order to get a participation in the future JV. We want to contribute also this portion of shares. We believe that this will make possible to renew, to entertain a dialogue with the Verona, Vicenza and with Ascopiave to potentially develop some strategy, common strategy, Verona, Vicenza, Ascopiave and A2A and Veneto. Of course, this is our wish we had, before, buying the shares. We have tested the interest from Verona, Vicenza. Of course, the answer was positive so Verona, Vicenza themselves, they look at this potential Ascopiave shares contribution as a way to alter the discussion on the network side, of course, with Ascopiave. So the rationale behind the purchase of this Ascopiave shares are mostly related to our ability and our willingness to regenerate a dialogue with Ascopiave through the newly created JV with Vicenza and Verona. A few words on the other potential builds we're looking at. We have sized -- virtually, we were submitting an offer on Rieco, which is a major acquisition on the environment. We're looking at specific assets. We're not looking at the entire current concern. We won't be looking at the treatment plants. And we also will be looking at other -- we are looking and we'll be looking at other M&A deals or renewables, in particular, on solar portfolio. Always, we believe, we deal with the objective to enlarge our market shares but to continue to be financially disciplined on this front. So I think, maybe a few other comments on the business plan. Roughly, I'm looking through the questions that you have submitted us. Let me go to some of the other information to use. Capacity markets, so we have successfully delivered our offer for capacity markets. We're assuming that we'll get lower revenues on MSD, but we assume that there will be continuity on the capacity market beyond 2020 and '23. So why we have this view? Because we think that the market will be too short after '25 when potentially other plant will be realized. I'm talking about gas lines. Potentially, we have -- we are making the hypothesis that existing plants will obtain less than what we already obtained in the existing capacity market. So something which is basically equal to 50%, what we already assumed when we got on 2022 and '23. A few comments on -- though we're already authorized, and I would mentioned the fact that out of the 12 new plants of the environment had been already authorized. What are the 3 plants not yet authorized? This plants are plants into the organic treatment, so basically 3 plants. We already -- we got 1. We got 1 plant already authorized. We then get -- we're still getting the other 2 as soon to be. On distribution, very quickly, I mean, we have -- on as far as the Milano tender is concerned, we are raising to the potential movement of this tender. We have appealed against the decision of the regional administrative court. As you know, the next hearing is scheduled for July, so we will look after that. We have made a couple of expression of interest in [ 2 items ] but the radio publication, the short term appears quite low. So we've taken the decision regarding the business plan provision, all the tenders have been rescheduled to more realistic dates, pushing them back beyond 2024. So in our plant, we are envisaging, at the moment, the Milano tender. The other tenders potentially have been postponed beyond the 2024. I think that's pretty much what I wanted to tell. Maybe a few other more comments regarding the renewable generation. So as I said, we're looking to the M&A. But also, we're looking to the good [ and ready ] plants. As you know, we already developed -- we're developing a plant of 10-megawatt fully green on totality. We have already signed a few PPAs with other few companies. So we'll continue to look at -- to this source of growth. I will -- I can confirm you that we'll predominantly look at solar, though wind would be also an area of interest from our company. We'll look at that. We already looked at that. Biogas and the hydro will be areas of growth, mostly for Linea Group, given the presence in some of the markets where these 2 technologies have been already developed. But we're talking about a minor portion of the investments if you look at the global investments with the company. So that's pretty much what I wanted to tell you regarding 2020, our sentiment of 2020, a few comments on the MD&A, on the territorial aggregation and on the generation side. I would like to hand over now the stage to Andrea. Andrea is also going to go over some of the topics that he already submitted us. So Andrea, please go ahead.

Yes. Thank you, Valerio. I hear one question. I think I already answered in my presentation before about the amount of the ancillary market in 2019, which I confirm was EUR 150 million, and EUR 24 million we got out of the capacity payment system, which still up and running. So for the 2 accumulated amount EUR 275 million, basically. Let me read here. The free market, I think I -- there's a question on the dynamic of the performance in the market. I think I touched the 4 drivers about behind the excellent performance, same as on the impact of the waste-to-energy maintenance, EUR 7 million to EUR 8 million. We should, of course, all the rest being equal, at this year, when these 2 WTEs, which have been at Acerra and in Brescia, will be running at full potential in 2020, and the same on the prices. I think there is only one question I haven't answered, and it's about the evolution of the cost of debt. We ended up the year with an overall cost of debt to 2.8%. The average life of our debt is 5 years now. So we can assume that average, over the past 5 years, we will, on average, of course, refinance as duration, so call our indebtedness -- clearly, the amount of debt -- the cost of debt that we have on the marginal indebtedness is much lower. We're still much lower despite the spikes, both in the mid-swaps and in the credit spreads that we are experiencing these days due to the coronavirus and especially the impacts on the Italian market on the spreads, I mean. So we can assume that over the strategic plan windows, our cost of debt will head down. The first maturity is January, February 2021 for EUR 500 million. And then progressively, if the market conditions remain the same or more or less the same, we'll reduce the impact of our cost of debt. I think I've answered all the questions I got here on my side. Renata, is there anything more -- else we can do?

Well, I think we will be able to deal with some incoming questions, I think, but the important questions asked by the analysts and the investors have been addressed. We, therefore, thank you all for your time. We are sorry for the inconveniences in this call. Our Investor Relations is available for follow-up. We wish you all the best, to you and your family. Thank you very much. Bye-bye.

Goodbye.