ACS, Actividades de Construcción y Servicios, S.A. (ACS) Earnings Call Transcript & Summary

Good morning, everyone. Thank you for your time today, and welcome. Welcome to our 2024 Capital Markets Day. Before we start, some safety measures, safety first. In case of an emergency, no matter how interesting it is what we're saying and explaining, please take emergency exits. They're one right in the center, one in the left, one at the right. Go down the stairs, please do not take the elevator, and we hope everyone to get outside, which is the master point. Peter Davoren and I will make sure that there's no one left inside and we'll be the last ones to get out. So today is very important for us, very important day for us. And very important day for us because this is the first time we do our Capital Markets Day with all of you. And there's a few very important messages that we want everyone to take once you live at the end of the day. The first one is that we're delivering on our strategy. And our strategy, as everyone knows, and you've been hearing us explaining a few times over the last couple of years, it's based on three pillars. The first one, derisking our portfolio. And by derisking our backlog, this is the best way to ensure that we do have predictability of cash flows and certainty. And this is the firepower for everything that comes next. In the second place, diversifying. Diversifying what we call the high-growth areas. That's the advanced technology, including digital, high tech, semiconductors, battery fabs. It's about energy transition, renewables, photovoltaic wing, transmission lines, hydrogen, ammonia. It's about sustainable mobility, critical minerals, et cetera. These high growth areas has one thing in common. Our clients are looking for trusted partners because it's about trust. It's about our engineering. It's about our knowledge, our systems, our supply chain. And that's why we've seen this type of projects higher margins. And we believe that we can increase our margins by increasing our positioning in these sectors. And last, but not least, our ability to inject and invest equity by following a very disciplined capital allocation into all these areas in addition to our core markets. And we're going to spend a lot of time explaining a lot of this. So today, not only we're going to provide the business plan from 2024 to 2026, we're also going to provide what we believe is our fundamental value right now and where we think we're going to be by 2030. Today, we're also going to talk about our priorities for this year, our priorities for 2026 and our vision for 2030. We're going to put the spotlight in our main companies, including Turner, Abertis, all our engineering and construction firms, ACS Infrastructure and CIMIC. We're going to talk about some of the strategy, how we would like to move geographically speaking, and you will see that we are providing a lot of information. So we would like to make sure that you have the right models to support our story. So we hope you end up today with one important conclusion, which is that when it comes to investment, we are the best choice because of our yield and because of our growth. So who we are? We are a leading engineering, construction and infrastructure management play. And we are very proud that we've been recognized because of our excellence, not just in civil and building, but across multiple categories. And these are the U.S. rankings and the official rankings. We are in the infrastructure space, but we're also in building. We're in investments. We're in telecom, aerospace, electronics, et cetera. We have EUR 35.7 billion backlog right now of revenues across different sectors, right, and geographies. 62% is coming from North America, around 60% in the U.S., 21% is coming from Asia Pacific, 15% from Europe and 3% in the rest of the world. And this is what makes us unique. And this is one of the reasons why we are being able to jump into so many different sectors because of our geographies. The fact that our DNA was based on our civil capabilities makes us who we are because civil is about local presence. Clients are local, supply chains are local. You have to be very much embedded into the communities to be able to perform. So when we say that we have 60% of our revenues coming from the U.S., it doesn't mean just that we have presence in 47 states out of 50. But it means that we have, in some of these states, more than 20 offices. But when we say that we have presence in Australia, it's not just Sydney. It's pretty much every single region from the Pilbara desert to the northern territories, Southern Australia and all urban and regional areas, and so on from India to Hong Kong and across Europe. And this is very important in a world of deglobalization, and that's something that makes us unique. So this is where we are today. EUR 73.5 billion backlog with EUR 2.6 billion curative net operating cash flow over the last 3 years with our revenue growth in 2023 of 10.3%, FX adjusted. So we do have a strong cash generation with attractive shareholders' return, just the last 2 years, more than 40%, always underpinned by our investment-grade commitment. And now we'll start jumping in some of the new things that you will see moving forward, which is the way we are putting together our group. We're going to report in three different areas moving forward: integrated solutions, infrastructure, engineering and construction. The rationale of this is very straightforward. Every company included in each one of the segments, they share clients, they share supply chain, engineering capabilities. So it makes a lot of sense that it gets integrated within each one of the segments. Same thing in infrastructure. Infrastructure is about investments. We are putting together through the same equity investment committees all the different organizations who are doing greenfield or brownfield in the group. And it also makes sense that engineering construction companies work as one. So how will the organization look when we start reporting this segment? So 65% of our PBT will be coming from integrated solutions, 20% is coming from infrastructure and 15% from engineering and construction. What's inside Integrated Solutions? High-tech sectors, digital, energy transition, sustainable mobility, everything that supplies engineering services with strong supply chains and uncentralized systems. What's inside infrastructure? Investments, not just in our core markets, highways, ports, airports, but we're going to take our chances in all the new sectors because there's plenty of opportunities coming in the market, and we're going to go through all of them. And then in the engineering and construction, which are our DNA, and it's what has made everything possible. Engineering and construction, they do support the rest of the areas because of their local presence. But one important thing is that we fully work as one platform and one group. And there's a huge interaction between all the companies right now. Many people wonder why ACS work with so many different brands. And together with our geographical spread, this is another very strong point of our company because Turner in the U.S. is American and CIMIC in Australia is Australian, and HOCHTIEF in Germany is German, and so on. And this is one of our biggest strength. As part of Integrated Solutions, we will be reporting separately on Turner, and we will be talking about Turner for the first time on an individual basis today. We will be putting a spotlight in CIMIC, and you will be getting information isolated for each one of these companies. As part of the infrastructure, we will be pretty much putting information together for Abertis and the three greenfield developers that we have across the world, Iridium, HOCHTIEF PPPs and Pacific. Many of you have been wondering about information on Abertis since Abertis was delisted from the stock market. Today, we are providing the full financial model of Abertis so you get comfortable with it, and we're going to spend a lot of time going through the organization. And we will do the same with all the greenfield opportunities we have in the market, plus the fair market valuation of infrastructure today. And then on engineering and construction, we'll have the opportunity to bring some of our managers explain all what we've been doing and how we are derisking the business, which is the main important goal for engineering and construction. So let's start with the first four companies, Turner. Turner was founded in 1902 and has been consistently leader in the engineering and construction management market in the U.S. for the last 100 years. It's pretty much top in plenty of categories according to the ENR. But more importantly, not only has a very diversified portfolio, but has been providing USD 1.6 billion dividends since 2017. With that growth, annual growth of PBT of 10% since 2017, 8% growth in the backlog and 6% on the revenues. The resilience of Turner is second to none, has gone through so many international prices in the last 120 years, and in spite of that has always kept a 100% conversion rate in its cash flows and has been able to go through pandemic, through the 2008 crisis, through the different falls of the different sectors in the U.S. and always leading the market. You will see at the back, the main figures, EUR 16.2 billion revenue, EUR 25 billion backlog and EUR 416 million PBT. The backlog doesn't reflect the full orders in Turner because Turner, as a construction management, most of the projects, they take long periods of engineering, and we don't reflect those projects in the backlog until the full construction is negotiated with our clients. And then you have how the EUR 25 billion is allocated through the different segments. 27% digital and tech, 34% biopharma, 15% commercial, 9% sports, 9% airports, et cetera. Now we get into CIMIC. CIMIC Is our most diversified company because not only works in the same segments as Turner. But in addition to that is the one company with the biggest presence in the energy transition business. It's a leader in Australia and Asia Pacific in renewables, in transmission lines, in hydrogen. It's building already a 600-megawatt hydrogen plant, but it has presence in 4 out of 5 of the additional hydrogen plants in Australia. It's a huge presence in defense, huge presence in manufacturing, et cetera. And all of these 3 are GL. But as we move into Sedgman, it's probably one of the strongest engineering companies in critical minerals. A lot of that, thanks to the fact that over the last 2 years, we've gone from different bolt-on acquisitions like Onix, like MinSol, Prudentia, Novopro, which has positioned Sedgman in a very good point when it comes to going from end-to-end services with critical minerals. This leader in the mining services and between this and Sedgman, our two most global companies, we have presence in Asia Pacific, Australia, North America, starting in Europe and South America. We will have the opportunity to go through the figures of CIMIC. But just to go through the numbers: EUR 8.1 billion revenues, EUR 20 billion backlog, EUR 300 million PBT in 2023. Now we get into Abertis. And Abertis is probably one of the [indiscernible] and one of our strongest companies. You will see and Jose Aljaro, the CEO [indiscernible] are going to give a lot of detail on Abertis, but we have also provided all the financial modeling so you make sure that you have all the support information. But out of the EUR 3.9 billion EBITDA, there's a very good diversification between Europe and 55%, 23% Lat Am and 22% North America. And more importantly, has been outperforming the GDP and the CPI for a number of years. And if you look at the period from 2014 to 2023, the Abertis EBITDA growth was 7% annual. EUR 8.9 billion is our portfolio for volume. And how do we get to this amount, very easy, discounting cash flows at an 8.5% discount rate. You have the financial models, go through them, just discount the cash flows of the dividends, and you will get to that figure. Because Abertis, the basis of Abertis without extensions and without M&A is delivering EUR 600 million and a very simplistic approach until 2038 growing right after. We'll get into the detail of all of that. But we're also going to be providing the net debt of Abertis and how it's going to evolve in time. Those EUR 25 billion, how they are linked to the assets of Abertis and how they get to it over time even in the best case without extensions, without M&A. So I won't extend right now into too much into it because we're going to spend quality time over the day. Now we get into the greenfield. The greenfield assets have always been the firepower of the group. That's where we create value. And we have multiple examples of the multipliers we get when we invest our equity from the very beginning, developing new projects. Iridium, HOCHTIEF PEPs and Pacific have a huge track record investing in the early stages of infrastructure projects. But more importantly, we've gone from the core markets associated to transport infrastructure into all the new markets. And I will give a few numbers on how we're going and how we're planning to do that. But we believe that in the period from 2024 to 2030, not only we are going to be in our core infrastructure, managed lanes, et cetera, but we will be investing a big part between 25% to 30% in the energy transition, 35% in digital and across sustainable mobility between 5% and 10%. Very diversified from North America, 37%; 28% in both Europe; plus 25% in Asia Pacific and 7% Lat Am. And then our engineering and construction. And we cannot be more proud of this segment because this segment is what has been making all of us possible, right? All these strategy, all these connections with the local markets. For many years, they have been pioneers in all the high-value segments and engineering applied to Civil and Building. E&C, from 2012 to 2018, the construction market in general, suffered a lot. And it suffered because at the back of the crisis of 2008, a lot of the companies involved in the construction segments try to look for international opportunities. At a time where a lot of the clients were transferring significant risk to the construction organizations, especially, I mean, hyperscalation, disruption, supply chain, at a time where everything was going up even we phase off it, et cetera. So in the international community, you saw a lot of companies struggling and suffering because of this. We learned from that. And we learned from that because we realized that in construction, you cannot take risk beyond your control. And we're going to spend a lot of time today explaining how much of our portfolio is in the lower risk area, which we have achieved around 85% at this stage. And we're going to the examples of our projects and how we manage the relationship with clients to achieve these type of contracts. And again, a lot of this is based on trust. So what's our vision for 2030: to consolidate our leadership in our core business. And our core business is engineering led integrated solutions that I explained and also the engineering construction. And more importantly, to make sure that we have the right capital allocation to continue creating value. Our priorities for 2026. The first one will be not only expanding our services, but to bring Turner into Europe. And this is very important because we want to make sure the integrated solutions goes from North America to Australia, as engineering and construction, as infrastructure investments. So there's a piece missing, which is opening that mechanic, high-tech advanced technology capabilities in Europe. We will continue derisking our contract models, and we will repeat this many, many times across the day. We will expand our margins by delivering all these high-tech, high growth, as I said, most of these projects are relying on trust, high [indiscernible] services, engineering knowledge systems, and it's a different way to interact with our clients. We want to simplify across the group, there's plenty of synergies. Not only there's one approach for each one of the projects and full collaboration between our organizations, but we also want to make sure that we get synergies operationally speaking and also when it comes to cost. And then our #1 priority has always been to remunerate our shareholders and to create value in dividends and in our growth. So let's get into the numbers. What's going to be our 2026 targets? And where do we see the value of the organization moving forward? Let me start with our revenues, EUR 23 billion, EUR 35.7 billion. We believe that by 2026, we will be between EUR 43 billion and EUR 48 billion with a CAGR of 9% per year. From a net point perspective, by 2026, we believe that we will achieve EUR 250 million to EUR 1 billion, which represents 14% compound annual growth. Net operating cash flow cumulative between to '24 to '26 will be EUR 3.3 billion to EUR 4 billion, which means like a 16% annual growth without shareholder remuneration of dividends above the EUR 2 billion in the period between '24 and '26. So let's talk about the firepower. Because this EUR 3.3 billion to EUR 4 billion net operating cash flow, if you add the potential investments on some of our noncore, we're going to be able to achieve between EUR 5.3 billion and EUR 7 billion firepower. Where do we want to invest this capital? So first of all, around EUR 2 billion or more for shareholders. There's EUR 200 million that we're currently negotiating to take 10% on this, it's still under negotiations. The remainder of the put probably will fall the end of '26, but the cash flows beginning of '27. So it's not included in this block. We have included EUR 650 million capital raise that we allocated to Abertis at the beginning of the year, EUR 1.3 billion on already identified infrastructure opportunities, and we still have 1.2 to 2.9 firepower for potential M&A, potential greenfields or additional investment in Abertis because there's plenty of opportunities in all those areas. And these are free cash flow allocation. Let's talk now about our investment growth sectors. And what's our ambition for 2030? Let's start with our core infrastructure. For the first time in a number of years, everyone, all our clients are ramping up with new greenfield in the more traditional space, especially in Managed Lanes. Probably, there's between EUR 60 billion and EUR 80 billion of potential opportunities, but we are targeting on EUR 20 billion. If you take into account that investment, our ACS equity piece will come up to EUR 1.2 billion to EUR 1.8 billion. But we believe that by 2030, the value of that equity investment will raise to EUR 3 billion to EUR 4 billion. In Digital Tech, that not only we are going to be working in the data center space, but we will be expanding to the [indiscernible] and a lot of infrastructure in the future associated to artificial intelligence and 5G. We have identified more than 60 billion opportunities, but we'll really get into which are the ones demanded by the hyperscalers, which are the ones with real energy inputs and fiber. We are going to focus on EUR 6 billion to EUR 12 billion, representing between 500 megs and 1 gigawatt. The ACS equity investments, and most of this is already identified and is being negotiated, comes up to EUR 1 billion to EUR 2 billion in the period. And we believe that by 2030, that will be worth between EUR 3 billion and EUR 5 billion. In the energy transition space, there's 2 parts: traditional energy transition, photovoltaic wind transmission lines, batteries. We have identified EUR 5 billion to EUR 7 billion investment opportunities between 3 and 5 gigawatts, most of it already in exclusivity that will require between EUR 1 billion and EUR 1.5 billion equity, and that will increase in terms of value to EUR 2 billion to EUR 3 billion by 2030. We have a special chapter for hydrogen, and that includes ammonia, it includes methane and [indiscernible], but we have decided not to put numbers because it's still early days. We're very conservative when it comes to our capital allocation. So we want to make sure that whenever we invest in hydrogen, we'll have a PPA, a certainty around the energy. We have the right off-taker. We will have the right technology in place, very much understanding the input of the electrolyzer. And the full business plan has to make sense, which in most of the cases will require subsidies. We do have a few opportunities identified between 2 and 3 gigawatts, but it's still early days. So we'll be watching. We have experience that we are pretty much having right now through UGL. I mentioned the 600-megawatt hydrogen plant currently being built. And I mentioned that in addition to this one, UGL has presence in our 4 to 5 -- 4 out of 5 projects in Australia that they are going through the feed engineering, et cetera. So we are getting prepared for what potentially coming, but we want to be cautious. Sustainable mobility, you will hear a lot of the things we are doing in sustainable mobility. That's much more advanced than what you know because there's a few things that we'll announce today. But there's a target investment of EUR 2.6 billion with equity needs of EUR 360 million, up to EUR 1 billion valuation by 2030. And finally, critical minerals. All this effort that we've been doing with Sedgman, and it is to invest in both in the different areas: engineering, processing, end-to-end critical minerals, underground works in the case of Thiess. All of this is not just to increase our operational portfolio, but also to make sure that it gives us opportunities to invest in the future of Critical Minerals. There's a lot of opportunities we're looking at. We do have the engineering. We have the expertise. We just want to be careful, analyze it. And when the time comes, decide whether it's worth it the equity. So we haven't included any number. But if you take all of this into account and consumer's strong fundamental valuation of EUR 14 billion, and the EUR 14 billion is very straightforward. You discount the dividends of Abertis. You look at the fair market value of Iridium at 2.7 together with HOCHTIEF PPs and Pacific. You go through the right multiples according to the peers, so fits one of the constructions, you get to the EUR 14 billion. This EUR 14 billion already excludes EUR 288 million. EUR 288 million, as everyone knows, and I'm going to spend a couple of minutes on it, the Department of Transportation of Texas decided to exercise its rights under the contract to terminate for convenience the project, there's a 6-months period. We are taking the opportunity over the 6 months to enter in the conversations with the government of Texas, see if there's another way to get a resolution around the project. But nevertheless, the impact, the initial impact on us, it will be a payment of EUR 1.726 billion, including debt. So the equity piece due to that, EUR 500 million of debt. That will be an immediate cash injection. So from a dividend perspective and value in the short term, neither Abertis, neither Iridium will be affected because it's very back ended, the cash flows of the EUR 288 million. From a P&L perspective, we're still trying to see what comes out from the negotiations and because of the utility through the negotiations, we prefer not to say. But obviously, we'll give the figure as soon as we see that the negotiations are not going in the right way. Net of provisions, we will communicate the impact, but we're very comfortable with the position we have right now. And then we believe also that evaluation has already been discounted from our current share price. But if you add to this EUR 14 billion, all we have explained in infrastructure space, we expect to double our value by 2030. This is just adding the good evaluation we've done for each one of the areas, which pretty much brings our current yield of 5%, dividend yield to another dimension when it comes to shareholders' remuneration. So why to invest in ACS? The first one, because we are an integrated global player, and we have very deep local roots at the most important time probably in the last 40 years. Second, because there's an increased global infrastructure spending. The world is resetting, not just resetting in traditional structure, but resetting in all the new segments, in all these high-growth segments. And we are very well placed for each one of them. Third, because we want to pivot the organization so we can increase the margins. Turner delivered in 2023 2.6% margin in its PBT. We believe that by 2026, we will be able to deliver in excess of 3.5%. We expect for 2024, 3%. And that increase in the margins is led by all these high-growth areas and what I have explained before. Fourth, our high free cash flow conversion and double-digit earnings growth. And last, the balanced capital allocation towards all the growth vectors and the shareholders' remuneration. So today, we hope to explain in a very detailed way all what I have introduced. I will turn over in a few minutes to Peter Davoren and Christa Andresky, CEO and CFO of Turner. We will then move with CIMIC, and I will ask to join me Doug Moss, our CFO of UGL; and Michael Wright, our CEO for Thiess. Jose Aljaro, Martin D'Uva will take you through all the details on Abertis. And Nuria Haltiwanger, our CEO for Iridium, will explain ACS Infrastructure. And then we will invite the engineering and construction team, starting with Santiago Garcia, Chief Executive Officer of Dragados, with Richard Grabinski and David Parker, both of them in ACS North America, Flatiron and Dragados. When it comes to ESG, needless to say, our commitment with ESG and environmental transition, social governance. We will give you our figures and our commitments. And both Christina Aldamiz and Martina will take us through all of it. And we will conclude our financial review with our Chief Financial Officer, Emilio Grande, and I will jump after that not just for the conclusions, but for the Q&A. So again, thank you so much for joining us. I hope you enjoy the day. I hope you find it useful and productive, and looking forward to your Q&A at the end of the day. Thank you. [Presentation]

Good morning. We're very excited to be here today. I am Peter Davoren. And joining me today is Christa Andresky, our Executive Vice President and Chief Financial Officer. Also in the room are some of our colleagues who can answer any questions that you have about Turner after the session. Let's get started. Here's what I'd like to show you today and share with you today a little bit about Turner, what sets us apart and our exciting growth vision for the future. You see this photograph of this building behind us. I have to mention that this is our new headquarters. It was built at 66 Hudson Boulevard, and we are now occupying. We finished it about a year ago and now we moved in, and we are waiting to have a cup of coffee with you at any point in time that you're in New York.

Not only will we share our vision, we will also share our high-value business model that supports significant profit and sustainable growth. That growth is centered around three things: number one, continue to be the leader in North America; number two, expand our footprint; and number three, increasing earnings contributions through our value-added service.

The picture on this slide shows the stadium we built for the Major League soccer team, FC Cincinnati. We say soccer, you say football. Football in the United States, we throw the ball, you kick it. It is 1 of 11 major soccer stadiums we built in the United States. We have also built 5 of the stadiums that will be used for the 2026 World Cup. Now for some background on Turner. Our company was founded in 1902. You know what other team was founded in 1902? Real Madrid. So we feel a deep connection and somewhat sympathic to Real Madrid. Turner is now the leading construction management company in North America. Our building expertise expands across multiple industries, markets and geographies. Across all sections, our sustainability team enables us to effectively serve clients who seek higher levels of environmental performance and resiliency in their facilities. This has led us to become and recognized as the top green builder in the United States. Turner has one of the most comprehensive office networks in the industry with a presence across North America, Asia and Europe. This helps us understand local markets, develop long-standing relationships and be part of the communities in which we build. We have been called upon to work on some of the most iconic buildings in the world in the United States. Central to our success is our focus on people first, a deep respect for our employees, our clients and our business partners.

That's right, Peter. Our culture, strong risk management delivery model and agility enables us to pursue the next-generation market opportunities. This has made us a leader in growing market sections. The value-added service on top of this, our clients very much appreciate. It strengthens by our scale and our global reach. As the industry evolves, so does Turner. We have become the go-to partner to some of the world's leading technology and manufacturing partners. We anticipate continued and rapid growth in these sectors due to increasing demand for electric vehicle batteries, data centers and semiconductors. And on top, our Turner Engineering Group has highly skilled professional that provides integrated design expertise and technical guidance. This value-added service provides design optimization, risk mitigation across a multitude of disciplines. The Turner Engineering Group then collaborates with our design partners to challenge design directions, they provide alternative solutions to meet programmatic requirements and enhance project success. Then we also have SourceBlue, our well-established supply chain management system. This helps clients overcome supply chain challenges through strategic vendor relationships. Do you remember 2020, the pandemic? During the extremely challenging supply chain issues, SourceBlue became an indispensable part of our service for our clients, and that's appreciated. SourceBlue streams like the construction supply chain through a process that goes end to end, from an early design, through closeout and warranty phase out. We see significant opportunity to expand our SourceBlue business model globally. These solutions end-to-end, not only preconstruction and construction, but earlier helps us deepen the engagement with the client. It's very appreciated, but it also increase profit margins and success of projects.

Our story is one of consistent growth even in the face of the challenges such as global pandemic, as Christa said, and supply chain disruptions. We've become a very nimble company by navigating challenges through consistency, diversification and our ability to quickly respond to market shifts, we continue to grow. For example, our revenue has grown $5 billion since 2017. In 2023, Turner had its best year in history with higher revenue, backlog, earnings and margin. It's also important, in our busiest year, we achieved our best safety record ever.

I want to point out the graph to the right, it shows you our backlog. As you all know, backlog is the amount of work that we are contracted to do in the future. You can see that our positive momentum continues. In 2023, our backlog stood at $27 billion, and that's U.S. dollars. And by the way, as we close Q1, we have $30 billion in backlog. So we continue to grow. We already have, on top of this, approximately USD 10 billion of commitments from clients in our sales pipeline that will be secured this year. We also project that we will grow revenue in line with our recent results for the next coming years. This alone gives us the confidence that we will continue to achieve sustainable, profitable growth. Now we just reviewed revenue, we reviewed earnings, cash-backed earnings, but here is the highlight of Turner: cash. One of our strongest financial attributes is our cash management. We have optimized our cash conversion cycle, which reflects our efficient operations and overall financial health. Working capital management plays a crucial role in maintaining cash conversion efficiently. Our clients pay us, we expect our projects to be cash positive. From 2017 to 2023, we had EUR 3.1 billion of free cash flow. We are delivering significant shareholder return, and this is powered by a healthy balance sheet with no debt. We have a flexible cost structure due to no heavy equipment. I have no cranes, I have no bulldozers, no trucks. Our biggest assets are people, highly skilled people, and this is evident through our high return per employee. We had a 90% payout ratio or USD 1.6 billion in dividends over the last 5 years. Let's move on to why clients select Turner as their partner and talk more about our value-added solutions and our price-to-value solutions. First of all, you must stand for something. And we try to enhance all of our people everywhere we work to have the same message in what you stand for. And we believe, as you have given us the chance here, is that we believe that we want to create an environment where people can be at their best, be authentic and be treated with respect and dignity and eliminate hate and bias at every point anywhere you go. And you do this through active caring, and you care for the other individuals so that the 12,000 people at Turner, who actively care for each other, going to spill over to the 120,000 people that we encounter with every day. So that may be -- maybe it's possible that if you're working together and treating people well, you may be part of something extraordinary, like if you were part of a building that where you're building a hospital, you are part of the healing process. Or if you were part of a health care -- educational facility, you were part of the learning process. You need to stand for something and create an opportunity where people can feel extraordinary. If you're -- and you're building the Obama Presidential Center in Chicago, you're not there for the job, you're there for a purpose. We believe this very, very strongly, and it spills over to our clients and to our trade partners and to all of the AE community around the world.

So as Christa said, our people are our greatest capital asset. They're known for their deep technical knowledge. They provide consultation and management services with a wide range of skill sets and specialized market sector expertise. Our inclusive and active caring culture has resulted in gaining recognition being a great company to work for. In 2023, we received more than 30 awards from Glassdoor, Forbes, Newsweek and many more as a great place to work. Turner also received over 40 awards for its outstanding work and innovation in an industry by the Associated General Contractors Association, Engineering News Record and many other organizations, and we truly believe the ACS group companies share the same vision.

Engineering News Record ranks Turner as the #1 builder in the United States, #1 in data centers, #1 in health care and #1 in green sustainable projects. Turner ranks within the top 10 in 39 different markets, and 80% of our work is with repeat clients. And many of these relationships stretch back decades. And our collaboration with companies within the ACS group gives us a scale, a coverage to deliver services to multinational clients, 1 company, 1 team. And with that, with just 1 call, we can mobilize right resource the right time for our clients anywhere in the world. That is the real power. Key to Turner's success is our collaborative construction management approach. We introduced construction and management as a delivery model in the United States back in 1965, when we built the original Madison Square Garden. Clients appreciate the collaborative approach. It is now dominant and a dominant form of contracts in the building market in the United States. Through a construction management approach, most of our work is secured based on our qualifications and strength of client relationship. These contracts are very different from the intense pressure and competition that is inherent in the traditional lump sum bidding. The majority of our work is delivered for construction management approach. With this approach, approximately 75% to 85% of the reported revenue is a pass-through to the trade contractor. The balance is the professional services volume of Turner. For Turner, we benefit from costs being guaranteed by the subcontractors in the preconstruction phase. Remember, when we're planning, we're designing, and we're budgeting, activities take place before construction begins. The result, strong risk management and consistency in earnings and of course, cash generation.

Because of our global reach, we can capture growth opportunities, work on large-scale programs and serve our multinational clients. Let's talk a little bit about the work we do. As you can see, Turner works in a variety of market segments. To support the unique needs of our clients in diverse markets, we have established specialized and dedicated technical market sector teams. This approach has been highly successful. For example, we have maintained the distinction of being the #1 health care builder in the United States for over 20 years.

That's right. But we're also a very nimble company ready to make strategic portfolio adjustments and ensure long-term growth. You can see on the slides that the shift in the advanced technology sector on the right, 25% of the work in our backlog is a new or next-generation market that we did not capture just 10 years ago. Manufacturer spending capacity in the United States backed by the CHIPS Act, by American requirements and other market demands. Turner is a firmly established leader in delivering projects across dozens of markets. Here are some examples of our leadership. You see the building on the far left. That's for the Cleveland Clinic down in Florida. We're building a new neurological center for them in Cleveland, Ohio today. And behind me is SoFi Stadium. We talked about that a lot. The builder of SoFi Stadium is here today, and these are unbelievable projects that we're very, very proud of. We walk this project every 6 weeks for 4 years. We have worked up -- we've worked with most of these clients since the early 1900s at Harvard University. We built sports stadiums, dormitories, research labs, and we've completed more than $6 billion of work in the past 5 years. We have built 15 of the 32 NFL American football stadiums. Turner is emerging as the industry leader in advanced technology. Here are some examples of this sector. Meta is a client that we have been working for, for many years on campuses across the United States. We have developed a repeatable delivery model that ensures efficiency and optimizes project returns. We are actively supporting a transition to sustainability mobility. One of our largest and most exciting projects in the market is the Panasonic manufacturing facility for electric vehicle batteries. It's a $4 billion program, which showcases the offsite and modular construction value-added service provided by the Turner Engineering group. We are strategically delivering efficiencies and enabling new project revenue streams that strengthen Turner's position as a leader in a market transformation. To overcome labor constraints and drive productivity on the Panasonic project, we are building components in manufacturing-like environments and delivering prefabricated assemblies to the project site. This solution removed over 80,000 hours from the work site. Across our portfolio of work, off-site construction is helping us achieve improved project schedules, reduce cost budget -- to cost and budget and improve site safety and enhanced quality. And we're working for the Ascend Elements on a $0.5 billion project that will recycle electric vehicle batteries. This facility will manufacture sustainable batteries with the reused materials. Once additional phases are complete, the facility will produce enough sustainable batteries to provide 750,000 electric vehicles per year, and this is where we go into the area where people feel extraordinary. They're moving towards buildings to sustain our planet. We talked about SourceBlue a little bit before. Let's go into more detail about SourceBlue. SourceBlue is the leading strategic supply chain management firm in the construction industry. They help clients acquire equipment materials and finished products for projects. For more than 20 years, SourceBlue offered innovative solutions that help offer innovation for clients to overcome supply chain obstacles. They also bring a higher degree of certainty to schedules, budgets and project outcomes. When clients engage SourceBlue, they harness the collaboration expertise of 300 supply chain experts. Through an established network of leading vendors around the world, the SourceBlue team locks in lead times and pricing for clients. This gives clients market intelligence to achieve cost and schedule certainty. Our supply chain services model delivers direct connection with the global supplier and manufacturer network, open book pricing and clients with choices in materials and equipment. The SourceBlue team has prenegotiated terms and conditions with leading manufacturer, and we are expecting this service to expand to a non-Turner project and with ACS Group companies, 1 team, 1 group. This was resolved in developing a growing revenue stream for the company. SourceBlue revenue is expected to grow at a CAGR of 15% in North America and the first $1 billion revenue this year. SourceBlue also has 6% to 8% margin and cash for Turner.

One of our projects SourceBlue is working on is the electric battery plant in Ohio. We are putting in more than $110 million worth of work every month. The original equipment budget for the project was $500 million. SourceBlue came in, played a pivotal role in saving more than $40 million in mechanical and electrical equipment. SourceBlue is also able to connect with an international manufacturing partner that delivered $25 million worth of savings. In total, the SourceBlue team was able to reduce equipment costs by 54% for a total of $260 million in savings. We also were able to shorten the schedule for the project by about 5 months. This owner was very, very pleased about that. Before we talk about our vision for the future, I'd like to tell you about two amazing projects you see on this slide. We built the rocket launch pad for Blue Origin. It was the first launching pad to be built in the past 50 years in Cape Canaveral, Florida. Blue Origin invested $1 billion to develop this site that will be used to launch 1 of the largest space vehicles ever built. The project on the right is Merdeka 118, the world's second tallest building. Turner has served as project manager consultant on this massive project with thousands of employees. It includes 83 floors of office space, 16 floors of hotel rooms, conference centers and a retail mall. The opening of Merdeka 118 adds another mega toll project to Turner's portfolio for more than 100 skyscrapers in the world, including Taipei 101 and the Burj Khalifa. Now let's continue with our exciting growth strategy. Christa started this presentation starting out the key points of our strategy. We will grow our leadership position in North America by focusing on the next-generation market segments. We will add more high value-added solutions. We will expand our global footprint. And all of this will increase earnings, and it will expand margins to 3% in 2024 and we will increase margins in 2026 to approximately 3.5%. Turner will continue to evolve and maintain our diversified portfolio. Our track record and collaboration with advanced technology sectors and the manufacturing clients was going to set a strong foundation that will grow this business.

Let's get into the details of our portfolio manager and the future. The key to our approach is increasing our project margin and profitability. We will do this by maintaining the right portfolio mix with the right margin and an increased focus on the advanced technology market. The advanced technology market includes, just to remind you, data centers, EV batteries, semiconductors, industrial and biopharma. We completed nearly $11 billion in volume in the past 2 years in this specific market. With the growing use of artificial intelligence, the need for faster processing, increased remote work and learning, and other market demands will drive market growth for data centers and semiconductors. Growth in sustainable mobility will drive ongoing investment in industrial manufacturing facilities, and the biopharma market will continue to expand as clients explore new uses of existing products and develop products that provide care for rare and common diseases. And these market trends and our market leadership will drive an increase in our advanced technology portfolio from 25% to 40% by 2027. Our ability to deliver end-to-end solution has made us the #1 data center builder in the United States. We work with the top 5 hyperscale data center companies and have over 200 active projects in this market. 90% of this work is for repeat clients, and they keep coming back.

Building on this success, we see great opportunity for advanced technology work in Europe. As our advanced technology partners continue to expand, they have increased demand for our services. This is in part due to the global scale and proven collaboration model, which provides a reliable client experience. We have established operating companies here, led by experienced Turner executives in Europe to serve these clients. Some of them are here today. In fact, we already identified $20 billion worth of advanced technology project opportunities here in Europe. SourceBlue and the Turner Engineering group are vital to our expansion into Europe.

Let's summarize. We ship our path to growth centered on continuing to be the leader in North America, expanding our global footprint with an initial focus on advanced technology with existing clients in Europe, and we further increased earnings and expand margins, thanks to the increased contribution from our high-value solutions such as SourceBlue and Turner Engineering Group. Our client-focused collaborative delivery model results in strong risk measurement and consistent earnings and as you know, cash. Our financial strength, healthy liquidity position and stability will fuel our growth.

We are sustainably growing our company to meet global demand for our services. Our client-focused market-driven approach is bringing Turner's value-added service solutions to new markets. We are willing and able to invest in strategic areas to accelerate growth. We will not hesitate if we identify opportunities that fit this profile. We are building alliances and furthering client relationships to grow market share, create value, mitigate risk and increase profitability. When Turner people are committed to change, we accomplish great things. Our strategy builds on a strong foundation, and this foundation will remain, yet we will be a very significant different company in 2027. Our value-added services will deliver more of our profits. We will be more global. We will be more integrated in the ACS group companies. As mentioned at the beginning of our conversation today, 2023 was our best year ever and 2024 will even be better than that. The best years of our company are yet to come, and we really appreciate telling you our story to you today, and thank you for your time today. Thank you. [Break] [Presentation]

Hey again. So before we start with CIMIC, a few reflections on Turner. Turner is a great company, very well established in the U.S. But more importantly, the value that Turner provides to our clients is migrating into Europe, Asia Pacific and Australia. And this is one of the examples on how ACS is becoming a great platform where all the companies are working together. SourceBlue, and it's not just a very powerful supply chain organization but it's also allowing the rest of the companies at ACS to use SourceBlue in the rest of geographies. And we expect SourceBlue to grow significantly beyond what has been in 2023 more than EUR 1 billion revenues with the margin. And all the clients from Turner are being used as well by the rest of the companies. So they are being shared with the rest of the clients and the companies, how to work with them, how to engineering with them. Now we are going to move with CIMIC, which is an exactly the same approach. It's a very well-diversified company with a lot of clients in the natural resources space, critical metals, industrial and we are using all those clients and all those connections to move in Europe and in the U.S., right? So with that introduction, let's talk about CIMIC. You all know CIMIC, more than 125 years of history, more than 30,000 employees and AUD 13.3 billion in 2023. 87% on the revenues are in Australia and New Zealand with 12% in Asia. But as I said before, very diverse organization. 86% of projects are with repeating clients. Turner also gave similar figures. And as we move into these high-growth segments and high tech, this is very, very important because it's about trust, as I said in my introduction. This is the only way to achieve higher margins. When you become more sophisticating your approach in your value, in your engineering skills, in the supply chain. CIMIC is a perfect example. 90% of the contracts have been renewed over the last 5 years. You will see in the picture, we are doing a lot of infrastructure work for defense in Australia. We're doing a lot of infrastructure for defense in Asia Pacific. We are doing right now in Germany and the Eastern countries of Europe and in the U.S. One example was the Pearl Harbor an upgrade contract from Dragados. And all of that is interconnected as well as another example of interoperability between the different companies in ACS. These are the 2023 figures of CIMIC that you know very well. But in summary, it was a robust performance through a very disciplined delivery, cost control and risk management, AUD 13.3 billion of revenues, AUD 494 million of PBT, AUD 113 million net operating cash flow with AUD 32 billion backlog. And CIMIC, as the rest of the companies in ACS is also moving into these high-growth areas. And it's probably the most diverse, as I said before, organization in our platform. Because not only works in all the high-tech segments like data centers, like battery fast, but also is very, very strong in defense, very strong in natural resources, critical metals, et cetera. And we are going to continue increasing that over time. We believe that we're going to be able to increase our margins as we deliver more sophisticated segments. Our growth is very much based on the fundamentals of Australia because a big part of CIMIC is in Australia. And the fundamentals of Australia are great. Just the projected population by 2070 gives you a sense of how much investment Australia is going to bring. There's AUD 790 billion in investment outlook from 2024 to 2028, just infrastructure construction. But there's 6% of growth per annum in all these mega trends from 2024 and 2028. Special mention, the growth in defense. As I said before, it's a very important part of our growth, especially when it comes to infrastructure associated to it. And we do have security clearance from the U.S. to Europe to Asia Pacific and Australia. And in our figures in 2023 and the backlog, you will see reflected this fact. So these are the 3 building blocks within CIMIC of our value proposition. First, all the engineering net services, UGL, Sedgman, Leighton Asia. This is everything that has to do with integrated solutions segment that I was describing in the first part of my presentation. UGL is #1 in Australia in engineering services. Then we move into natural resources, critical metals, global sustainable mining. Number one it is. But also Leighton and Sedgman are most global firms. So they don't work just in Australia, but they do work in Indonesia, in Philippines, in Mongolia. They work in the U.S., they work in Canada, in South America, especially Chile, Peru. And they have a track record in Botswana, and they continue to expand, especially in the North American market. And then when it comes to engineering and construction, CPV, very strong. And CPV has one very good feature. And it's one feature that the rest of the group is taking advantage, their ability to work in remote areas. Most of the projects right now are very complex and it's very difficult to isolate the civil component from the energy from digital, from the way you integrate robotics, et cetera. And this is why we are so strong in bringing all the companies together. But there's also another component that is very important to deliver these projects, which is the ability to move resources, people, the ability to work in remote areas. And CPV has been doing it together with Leighton and UGL for the last 100 years. This is key. No matter we are working in some of the big terawatt data centers across the world or the big battery fabs or some of the future semiconductors facilities all the new prospects on the natural resources they are in very difficult areas, sometimes in the middle of nowhere. So understanding how to do price management in those regions is key. So having said, let's go more in detail through the different segments.

Thanks, Juan. My name is Doug Moss. I'm the Managing Director for UGL. I've been part of the group since the early 1990s, since 1992, in fact. I'm based in Sydney, Australia. If I start with UGL, the company that I manage. We have been in operation for 125 years. So it's certainly been around for a long, long time in Australia, very, very deep roots in Australia. We are the Australian leader of high-value engineering services and we have specialists in the end-to-end engineering, industrial services and operational solutions. We employ over 1,000 design and technical engineering resources in Australia. And that is really what sets us apart from the market and from our competition. Our total workforce is approximately 12,000 people. So we are a large business in the Australian context. At our core, we deliver mechanical and electrical and control systems infrastructure to a wide range of the Australian market across energy, industrial services, mobility, technology and defense. So we work pretty much across the entire sort of country in all the major sectors. We are arguably Australia's #1 designer and deliver on mobility and energy assets, and the market leader in the design and delivery of transmission lines. All those things, of course, very important for the energy transition. Now Sedgman, the second of our companies, has a similar sort of engineering pedigree to UGL. They've been in operation for over 45 years. They focus in minerals processing solutions to the natural resources industry. It has engineered constructed and operated more than 250 processing plants in Australia and North America, has deep expertise in critical and battery mineral processing design and is growing into the critical minerals necessary for the energy transition through mergers and acquisition. It is Australian market leader in its sector. The third business, which I'd like to introduce, is Leighton Asia, a high-tech specialist with more than 30 current projects throughout the region. Its operations cover Southeast Asia and India, with Malaysia, Hong Kong and the Philippines accounting for about 65% of the company's business. There's a contract behind some of Asia's most prestigious projects, including Hong Kong's largest and most complex off-site fabrication scheme and the world's largest underground railway station. It's also a very well-established player in technology and data centers and is known for its best practice, construction methodology and digital engineering expertise and currently is expanding into advanced manufacturing. With that, I'll hand over to Michael Wright, who will talk about Thiess. Michael?

Thanks very much, Doug. My name is Michael Wright, the CEO of Thiess. I've been with the company for 25 years. In fact, Doug employed me 25 years ago into Thiess, when he was there as well. So we know each other very well. So very proud to be part of the group. I've worked in Australia and overseas, and for the last decade or more into mining. Thiess, importantly, is the global leader of diversified mining services, providing open cut and underground mining and asset management solutions to clients all around the world. Yesterday was a really great day for us, 16th of April. We were founded 90 years ago. So we celebrated our birth -- 90th birth yesterday, which is great. And we had a good celebration on the weekend just gone that back in Australia. So with that 90 years of experience, we've got more than 60 projects across 7 countries across Australia, Asia, North and South America. And I think importantly, as you heard from Peter earlier, Thiess also has a strong commitment to our people, their development and critically, their safety and well-being. And that's resulted in Thiess having a global safety record that is the envy of the mining industry. There's nothing more important than our people and having a safe and respectful workplace, and it really does bring a competitive advantage for Thiess in our global mining business. We're positioned at the full front of sustainable mining with a strong focus on technology, rehabilitation, remediation, emission reduction and decarbonization, which the world needs and certainly mining has that challenge in front of it. And our strategy is one of diversification with commodity diversification in the critical minerals and metals, diversification through services in new asset management and sustainability solutions, and expanding our geographies in the mining jurisdictions where we can bring great value through our expertise and also our global supply chain. Because in the last 2 years, we've expanded in the U.S. with a really strong pipeline of opportunities in critical minerals and metals in front of us, and we've used strategic acquisitions, which I'll talk about a bit later, to really diversify our commodities and our services globally. We're now also in our fourth year of a 50-50 joint venture between CIMIC and the Elliott Group, which Juan mentioned earlier.

Thank you, Michael. Thank you, Doug. So moving in to CPV. CPV has been our civil engineering company for a number of years in Australia. In fact, it has been alive for over 97 years. It's a trusted construction partner. And CPV was one of the first organizations to convince clients to move into this collaborative approach that we always refer to. In Australia, the complexity and the size of the projects also taking into account how limited is the access to people, to skilled labor, and also with the fact that there's not so many construction companies, push a lot of the industry to come with better contract markets. And CPV was pioneer in moving in that direction. CPV has also been focusing on the order transition, has also been supporting in significant UGL in their tech infrastructure projects, and both together has significant JVs across the board. The project management skills from CPV in remote areas, which is very, very common in our civil construction organizations joined with engineering, mechanic industrial capability and advanced technology of UGL. It's a perfect combination. That model not only works when it comes to Australia, it's working between HOCHTIEF, Dragados with Turner, it's also working in North America when you see a lot of the JVs between Dragados, Flatiron and Turner. So it's a very important part of our platform. CPV is also a pioneer in innovative methods when it comes to environment. The statistics in the construction are unbelievable when it comes to recycling, the use of non-potable sources of water, how they are using all the materials, waste, et cetera, is second to none. And as the projects continue getting more and more and more larger, bringing different disciplines, how they are being able to bring customized solutions for our clients is key. So with our key differentiators. First, they were integrated platform. Second, the discipline derisking approach and this is something we'll continue repeating throughout the presentation. And third, how unique we are positioning ourselves in the next generation sectors. This is an example of how we use the platform. We could use exactly the same slide in Europe, in North America, or in Australia, Asia Pacific. And how they're integrating all the different companies towards the same goals. On one hand, we have Pacific acting as a developer and acting as the final owner. Some projects, not all the projects, only the ones that require equity with the possibility of owning the asset in the last place. Pacific, in the case of Europe, that position is taken by Iridium and by HOCHTIEF PPs and North America by ACS Infrastructure. That is exactly the same month. Then we do have all the different capabilities across the board, industrial capability on engineering manufacturing industrial services from UGL. The way that this has the diversified mining operations with the asset management and rehabilitation of mines. Then Sedgman, through the end-to-end mineral processing capabilities. Leighton for the high tech and advanced manufacturing in Asia Pacific and CPV with not just in general construction but the project management capabilities. You can replace those figures and those companies for Dragados, HOCHTIEF, Turner, et cetera, right? So there is an intercompany collaboration, so we can successfully deliver these critical projects. Now let me move to a case study, which was the City Metro. And basically, this is what we did. I mean it was pretty much involving the energy, the systems, the mechanical. We had investment from Pacific. But in total, we were able to build 110 kilometers of tunnels with EUR 15 billion between all the share of work within the organization.

So I'm going to talk a bit about the next 2 key differentiators. And the first of those is I'd like to talk about is the disciplined approach to derisking our projects. Now a key differentiator for CIMIC is its approach to risk management, and we're very, very good at that. We use collaborative models increasingly to mitigate risks and produce better margins and shorter project delivery time frames. There are several of these models, which are used in Australia, they all include the incentivization of all project partners and a significant early contractor involvement to derisk things like the design and the planning phases of the project. In terms of the commercial models, these are not fixed price or lump-sum contracts. They are generally undertaken as cost plus, cost reimbursable or pain gain share type models. The key differentiators here for us are our technical capabilities, what we bring to the clients, the certainty of delivery in terms of certainty of the outcome and, of course, the strong relationships that we have with our clients. The outcome of these types of models are fewer cost overruns, a much better understanding of the complexity of the projects, providing program certainty for the benefit of all the participants, clients and the contractors alike. Collaborative and low-risk contracts are an increasing part of the CIMIC backlog. In the figure here on the slide, you can see that we have increased them as a proportion of our backlog from about 65% in 2021 to circa 80% in 2023, and that trend is continuing into the future. So here, a case study of one such project. This is a joint venture. One of the ones which Juan was talking about, a JV between UGL and CPV to build a $1.4 billion high-voltage transmission network in New South Wales, one of the largest energy projects, which has been built in the country at the moment, the first of many, many transmission line projects. We have a strong relationship with this client. UGL has been working with them for over 60 years to the early 1960s, in fact. So the financial model, which is shown there on the slide provides that the downside risk is capped at our cost. So we always get our cost under all circumstances. We can't lose money. But the upside is shared between us and the client, and there's no cap on that. So again, we are fully incentivized to work closely with our clients to sort of minimize cost to maximize productivity, shorten the duration of the project. Everybody wins. If we win, we win together, very important. So fully aligned. Now these sorts of models are becoming increasingly common in the energy sector. And they -- but they had not been a feature of that market until recently. And this is because governments, clients need to get this work done quickly to meet our commitments in terms of decarbonization. So a positive trend and it's something we're just going to continue quite a bit. Now the third of the key differentiators, which I'd like to talk about is our positioning in these next-generation sectors. These next-generation high-grade sectors, much like you heard about from Turner. CIMIC is particularly well placed in critical minerals, biopharma, health care, education, social infrastructure, digital and technology and, of course, in the energy transition and sustainable mobility. You can see here the evolution of that backlog is just between '22 and '23. Energy transition, mobility and critical minerals are the areas where our backlog has grown the most. In energy transition by EUR 1.2 billion, sustainable mobility by EUR 1.5 billion and critical minerals by EUR 1.2 billion. And we're going to go to some more detail on 2 of those sectors, namely the energy transition and critical minerals, on the next few slides. In my opinion, these are not short-term trends. You're going to see more and more of this work. The investment that's coming is huge in Australia, as Juan touched on. And so we're going to see a real positive trend towards these types of projects over the coming years. So if we just go to the energy transition first. I'll give you some more background on that. What's driving this? How big is it? CIMIC is sort of ideally positioned to assist Australia to meet its ambitious targets, which have been set by the federal government. Those targets include reducing emissions by 43% of 2005 levels by 2030 and achieving net 0 by 2050. To achieve these goals, we will need a massive investment in renewable energy generation capacity by more than 9x. Some people would say 12x what exists today. So we're talking about going from 30 gigawatts of installed generation capacity to more like 300 gigawatts in that period, a massive, massive scope of work. Big dollars as well. Some people sort of estimate this is something like 400 billion in today's dollars. That's just the generation component. On top of that, to go to sort of use of renewable energies of solar and wind primarily, we need to invest heavily in what we call firming assets. These are the assets which store the energy. So when the wind doesn't blow or the sun doesn't shine, we still have power for our homes and for the country. So a lot of -- we're talking a massive investment. CIMIC is a leader in all of these sectors. And to date, we have delivered 14 solar farms over the past couple of years, about 1.2 gigawatts of installed capacity, 5 wind farms of about 800 megawatts of installed capacity, a utility battery energy storage systems, which represent about 3,000 megawatt hours of storage capacity. And importantly, we secured 3 of those projects in 2023 and there's a massive pipeline of those projects coming to us as we speak. We built over 280 substations, over 7,000 kilometers of high-voltage transmission lines and we're currently building a 660-megawatt hydrogen-enabled gas turbine power station in New South Wales. So we're in every aspect of that transition, every single piece from the start to the end and everywhere in between. It's just a case study here for us. Done a lot of projects for our good client in [indiscernible]. This is the Victorian Big Battery, the VBB, as we call it. It is the largest battery energy storage system in the Southern Hemisphere just outside of Melbourne in Victoria. 450-megawatt hours of storage, very close relationship between UGL and Tesla. So we're using Tesla's technology. UGL integrates those technologies from OEMs overseas, bring them to Australia and then support them in terms of the implementation of their technology. So a lot of engineering all done in-house, again, by our engineering team. So great depth of capability in this space. Juan?

And I think I'll throw over to Michael, do now who talk about minerals.

Thank you. So I guess, look, Thiess by numbers up on the screen. We turned over $5.9 billion of revenue last year, heading towards $6.5 billion this year. So that's consistent strong growth, strong EBITDA, as you can see there, and again, strong growth in that EBITDA with the long-term clients. We've got the work we do globally, the scale, the supply chain, et cetera. We've got over now today more than AUD 15 billion of backlog. So we've continued to grow that from the end of last year, which is important and it gives us that long-term sustainable cash flow. We've got profit, as you can see there, which again is on a growth trajectory moving forward. Importantly, on this slide, I guess, we've got -- there's currently discussions ongoing, as Juan mentioned about CIMIC, yes, acquiring a further 10% stake. In Thiess, we're currently 50-50 with CIMIC. And Elliot, and so that's ongoing at the moment, which successful result in the financial consolidation of Thiess and CIMIC. As mentioned earlier as well, some acquisitions that we've been focused on really trying to position Thiess for the critical minerals and the energy transition in the future. Next slide, I'll talk a little bit about Macau. But Macau, we acquired 18 months ago. We've been integrating that into our business. And as I said, I'll talk about that. And Pybar importantly, is a company that within 2 weeks of today, we'll take over fully. It's an underground mining contractor focused on metals and minerals and brings that critical service to the critical minerals clients that we're working with and will continue to work with both in Australia but also exporting that service overseas, which is critically important. So a couple of case study here around the Macau acquisition. It was a listed company. We competed against it slightly in some areas but really, the important thing about Macau Fortis was to bring that commodity diversification, services diversification, particularly looking forward with our strategy focused on the global energy transition. So we've extended our commodities portfolio in a new critical minerals, more copper, more lithium, nickel, more gold, molybdenum as well. And I guess, importantly, last year alone, we secured $1.7 billion in new contracts in Metals & Minerals. So we're continuing to grow as we integrate Macau into the Thiess family of businesses. We've also increased our client base. And again, through Macau long-standing focus on client relationships and contract renewals being completely aligned in culture to Thiess' same focus. Again, engendering that long-term cash flow, which is critically important. We've also benefit from the synergies of bringing Thiess and Macau together and will do so with Pybar as well. Of people, expertise of our supply chain, our global supply chain, which is second to none in our business and the systems we've got to running and mining operations. We've delivered $21 million in synergies to date and another $20 million more identified, which will take -- will come into effect in the next 12 months. And I think importantly as well, to get us since coming together above our financial '22 year pro forma of Thiess and Macau, we've improved our EBITDA by 15%. And again, we're going to see further growth in that as we move forward. Importantly, as well to touch on Sedgman, Sedgman through an M&A strategy has really positioned itself beautifully in the critical minerals area as well. Consolidating its position as a global leader in minerals processing has boosted its engineering capabilities, which is critical for the energy transition. So getting involved in the projects much earlier, expanding into new geographies as well critically. So through Novopro through MinSol Prudentia, bringing capability in engineering and manufacturing, in processing, in lithium and energy. It's critically important to Sedgman's future strategy in critical minerals. So Juan?

Thank you, Michael. So a few conclusions about CIMIC. The first one is how well positioned is in Australia and New Zealand, which are very important markets with very good and fundamental metrics. We also are seeing an increase in spending in those areas, especially following the population growth that they are experiencing. And our integrated platform is well positioned to pretty much approach and absorb most of that spending. We continue to derisking our backlog as we were doing in the rest of the geographies. And we believe also that not just in our traditional segments, but also in the high tech and new growth vectors, we are going to be able to succeed and that will continue bringing opportunities. When you look at the engineering capabilities that we have in manufacturing, in industrial, in energy transition, in high-tech, and now through all these acquisitions in the natural resources space and critical metals, we're also going to see very good opportunities to invest our equity. And we will be talking a little bit in some of the next sessions about it. So thank you so much, and we'll move into the next session. Thank you. [Presentation]

Hi. Good afternoon, everyone. I'm Jose Aljaro. I'm the Abertis CEO. And I'm very pleased to have the opportunity to introduce and to present Abertis to the financial community. Abertis was delisted 6 years ago, and now I'm feeling like a flashback, really. But having said that, the Abertis today is much better company. It's more profitable. It's more sustainable than 6 years ago. That means it's a great pleasure to be here. We have prepared a presentation with 2 blocks. In the first, we talk about Abertis overview and strategy, I will present to you. And the second part will be presented by Martin D'Uva, is our CFO. We are aware that the market has some concern about Abertis and some issues, like dividends, debt capacity to replace EBITDA, et cetera, et cetera. I hope that through or after our presentation, we can help you to avoid or to eliminate some of those concerns. Abertis today is a pure global toll road operator, well diversified geographically. And today, we manage high-quality portfolio of assets. We manage around 8,000 kilometers through 35 concessions. Abertis is a global diversified operator, as I said, with activities in 10 countries, and that's allow us to protect local disruptions. And third, we have, Abertis has a very good industrial expertise that help us to boost our profitability. In 2023, Abertis presented very good track record, very good performance. Basically, the top line has been growing plus 8%. EBITDA achieved EUR 3.9 billion, increased plus 10%, plus improved the margin, plus 70% EBITDA margin. And also we had, at the end of 2023, EUR 160 billion EBITDA backlog. We introduced in our presentation in many cases, this figure. We talk about backlog because we consider is more representative of our company due to, in our portfolio, we are including some asset that today generate limited amount of EBITDA, but in 10, 12, 15 years, we will double the contribution of those assets. I mean that is necessary to take into consideration. And Abertis has been very profitable in the last 5 years. For that reason, we paid EUR 3.6 billion dividends in the period 2019 to 2023. You see in this graphic what is our current geographical diversification, but also what will be the diversification of our backlog per country. You see today, France is our main contributor with the 36% of the EBITDA. But also, we have a good balance in all the 4 countries with contribution between 12% and 15%. And you see there is some -- in some areas like U.S. and Puerto Rico will limit the contribution today only 6%. But if you look at the backlog will be the main contributor. All in all, we maintain a good equilibrium between hard currency countries and soft currency. In both cases, we are -- we present a more than 60% of the EBITDA is coming from hard currencies. Abertis is building a perpetual value creation model and that is built through 3 different pillars. The first is the platform for growth. It's a good platform, I mean. And we have shown, however, we are for growth through different ways. I will explain later. The second pillar is the strong financial discipline. I mean, we apply very prudent -- a very conservative financial policies and also we have a commitment to maintain our rating level. And the third is the operational excellence. I mean, we manage in a very proper way our assets, and that allow us to improve the profitability of all the assets with different actions that our management implement in the portfolio. If we go to the first pillar is platform for growth. When we talk platform for growth, we are talking about 3 different ways for growth. The first is the organic growth, the second optimization of the current asset and M&A. Organic growth. You know that our top line is growing linked to 2 elements. One is traffic, and the second is toll rates, is tariffs. In both cases are linked to other macroeconomy element, is linked to GDP and linked to CPI. In both cases, we have a multiplier, positive multiplier and thus also improve the sustainability of our profits. Only with this element, considering only the organic growth, we are able to maintain the EUR 600 million dividend a year only with this element. And on top of that, I'm going to explain the other top component for growth, optimization. From time to time, we open discussion, enter in discussion to revisit our contract, and we try to obtain additional profits through win-win agreement with the different grantors. And the third element in which we have been able to create significant value in the past is M&A. We are growing in a very selective way, but in a very profitable way. Here, you see some -- another graphic showing our positive view about the macro-economy outlook. In this graphic, we present the GDP and CPI in so geographical areas: in Europe, in U.S., Puerto Rico and also in 3 of our main countries in South America, like Chile, Mexico and Brazil. You see that together in the case of Europe and U.S., we expect to increase both elements together in 3.5%, 3.3%, 6% in Europe and America, and also in South America above 5.5%. That together is helping us to improve our organic growth. But on top of that, we have positive multiplier, as I said, due to the quality of the asset, all the different agreements in the different administration in some cases, we increased tariffs above inflation as a consequence that we are implementing extra CapEx. And for that reason, that extra CapEx is compensated with additional tariff increase. All in all, we expect to increase our EBITDA in a recurring way in the next 3 years in plus 7%. I insist that this is excluding any additional renegotiation of the contract or excluding any additional M&A. If we go to the second wave for growth, this optimization of our current portfolio. I mean, we try to maximize the value of the existing assets. I mean, all our management is focused to identify opportunities to review or revisit contract and to open discussion with the grantor. On that case, always in a win-win situation, we extract extra value. It's a negotiation to improve very often the life of the concession. You have some example in this graphic. I mean our track record in the last year was very significant. More than 66% of the concession has been extended. That show you the capacity of our manager to achieve this type of agreement. But not only we did this negotiation, but also we have under review, under discussion new opportunities, especially in Brazil. Today, we have under discussion the possibility to extend some of our concession in Brazil. I mean, we are relatively optimistic to achieve an agreement that will allow us to extend some of them. And as part of that, we have shown ideas for new extension in Mexico and even in Puerto Rico, and we will see an example few seconds later. And the third way is M&A. I mean, as I said, we want to grow through new concession in our portfolio in a very selective way, we are very prudent choosing the right country with a strong legal framework and also, we apply the right return. And then Martin will explain a little bit more about the return that we're asking for. But at the same time, we succeeded in the last 5 years in different acquisitions. ERC, RCO, 288, Puerto Rico toll road and also Autovia del Camino. But additionally, our management team is working. And now we have identified 9 new opportunities that could contribute with other additional EUR 40 billion EBITDA backlog. That means today, we have the M&A team very busy. It's possible to disclose some of these assets that we are analyzing other for confidentiality reasons is not possible to disclose. But let me to say something that is public. We are involved in the tender of few assets. We have to present the binding offer at the end of May. We have another asset under analysis in Chile, Santiago Los Vilos. We have to present the final offer in the beginning of June. We have, in the second phase in an asset in France, 154 is a new concession in France, I mean you see that we will continue working on that. And that will be on top of the 7%, okay? This is a good example how Abertis manage his presence, his portfolio. We started in Puerto Rico with very small assets. Next step, we improved our presence in the country, acquiring Metropistas. Then we increased the stake in Metropistas. And finally, we extended Metropistas. And now recently, at the end of 2023, we acquired a new portfolio of 4 concessions. I mean, that is a normal way how we manage our business. If you remember, I said we have 3 pillars: growth; and the second one is strong financial discipline. On that case, Martin will explain deeper our financial policies, but I would like to remark 3 topics. The first is we have a very good protection of the increased rate. I mean a significant part of our debt is in fixed rate, and we have only 18% variable rate, but we apply a very dynamic policy. The second is maintain our current rating as investment grade rated by S&P and Fitch. And the third is to manage and to maintain a good capacity to deleverage the level of debt. You see in this picture that the absolute term or volume of debt has increased 13%. But really, we deleverage the company in like-for-like terms. But at the same time, we have been investing 10 extra billion in the M&A transaction. For that reason, in absolute term, we are increasing. In relative term, we are decreasing. But even in relative terms, the net debt EBITDA was 6.6x in 2018 and now 6.3x. And I said, not in the EBITDA, we are including the capacity to generate EBITDA with the recent acquisition because today, those acquisitions are in a ramp-up process. That means in 10 years, the EBITDA will increase substantially for the same level of debt linked to these assets, okay? But then Martin will explain deeper. And the third pillar is the excellence in asset management. I mean I said we have a good management team. If you look at this graphic, we have been able to generate 300 bps profitability above the macro-economy element. Why 300 bps in the last 10 years? One is due to the high quality of the assets. For that reason, we are performing traffic better than GDP, good located, good areas, good regions, et cetera, et cetera. The second is our capacity to implement efficiency program. I mean we reached EUR 1.3 billion cash saving in the last 10 years. It's a lot of money, really. And that was applying efficiency program and also to implementing best practices between the different countries where we are working. And the third synergies when we buy something in a country, the plaque and play integration is very easy. It's very efficient. I mean these 3 components help us to improve the profitability of Abertis. And finally, as I said, Abertis today is managed like a perpetual value creation model with capacity to replace EBITDA. If you look at the EBITDA in 2018, it was EUR 3.5 billion and now EUR 4.1 billion. This is a pro forma basis. It's including the new acquisition that we completed at the end of 2023. But I mean, we lose in the meantime EUR 900 million EBITDA, and that has been replaced by EUR 1 billion in these 5 years. No question about our capacity to repeat the same strategy going forward. The second is capacity to increase the backlog. We doubled the volume of backlog in our company. And the third, we has the capacity to generate strong cash flows, a strong cash flow to deleverage the company and to maintain the dividend policy in the coming years at least at the EUR 600 million. But it's a good combination between dividends growth and deleverage. This is Abertis today. I pass the floor to Martin to explain the Abertis financial review.

Thank you, Pepe. Hello, everyone. So I wanted to provide a few additional insights into how our perpetual value creation model works from a financial perspective. I'll show you a bit more of how it's worked in the past and what you can expect from it in the future. . But first, let's start with some basics of how the model, what it's made up of. Well, it's made up of 2 key components. First, as Pepe said, our diversified strong portfolio. Second, we complement that with an optimized financial structure. And what do you get? You get recurring strong cash flows that we use first to pay down debt; second, to pay dividends. And in paying down debt, that deleverage creates firepower to further invest in value-accretive growth, which then strengthens our portfolio and so the cycle can continue on and on. Now let's look at some of the -- let's go back to the key components, our portfolio. Now Abertis is quite large and arguably complex. So we try to simplify. And let's remind ourselves that we are made up of individual core infrastructure assets. These are high-quality toll roads that are doing exactly what you expect them to do, which is generate strong recurring cash flows. Why? Because we're providing an essential service to our communities, mobility. We do that with assets that are protected by high barriers to entry. You can't just build another road next to ours. Third, demand for that service is linked to GDP. In fact, as Pepe said, we consistently outperform GDP growth. And last, our regulated tariffs give us protection against inflation. So what do you get? Well, if you look at our portfolio today, the assets that are out there today. If you look at the last 10 years, you saw Juan and Pepe quote 7% CAGR over the last 10 years despite COVID. And that's a long period of time, and that's a big CAGR. So what does that mean? Our portfolio has doubled its EBITDA over the last 10 years, double their EBITDA. So please keep that in mind when we look into the future later. Now another thing to remember is every one of our toll roads goes through its own life cycle, and every toll road may be at a different point in that life cycle, but they all follow the same trend, especially 2 key trends. The first: it starts from a higher level of leverage, and that leverage goes down over time, thanks to those growing cash flows. And as that debt goes down, our ability to pay dividends goes up. And we are made up of a number of toll roads that are all following those trends. And therefore, we, as [ Abertis ] in aggregate, we'll be following that same trend. So please keep that in mind later.[indiscernible] Now we combine that with an optimized financial structure. So what do we mean by that? Well, Pepe mentioned that at a corporate level, at a TopCo level, we have a BBB and BBB- rating, an investment-grade rating, that we plan to keep. But what we often forget is that each of our assets that is rated has a solid investment-grade rating as well, which is a testament to the quality of those assets, to the prudent leverage of those assets which ultimately translates into an ability to upstream dividends to Abertis. Now you also see in terms of how we structure the debt that roughly half of that is at TopCo and half is at the OpCo at the asset level. And that's something [indiscernible] is something that we actively manage. Why is that? Well, the debt at the OpCo level, at the asset level, has a benefit that is Non-Recourse debt, and it's in local currency, which allows to mitigate currency risk. But at the TopCo debt, we have a debt that has a lower cost because, of course, it benefits from our large diversified portfolio. So we have low leverage at the asset level, 3.2x net debt, and then when you look at it on a consolidated basis, that's still a prudent at 6.3x. Now I'd like to think of our debt as our financial structure is being low risk, low cost and well managed. In terms of low risk Pepe touched on, we have good protection against interest rate movements. Over 80% of our debt is fixed rate. But you should also know that some of our key assets have 100% protection -- 100% fixed rate. Now another element obviously is refinancing risk. Now there, again, something that we actively manage. And during the last 5 years, we've managed to keep the average maturity of our debt at over 5 years. So what does that mean? Let's say, for the next 3 years. So we've got about EUR 3 billion of maturities every year for the next 3 years. It's a big number to some, but for us, it's very manageable. Why? So first, we've got over EUR 9 billion of liquidity. That's very strong liquidity that, of course, we'd rather not touch. And we don't have to because of the strong cash flows. Strong cash flows that actually mean that if we do nothing, if we don't need to raise additional debt or anything else, our actual refinancing needs instead of EUR 3 billion go down to EUR 1 billion or EUR 1.5 billion a year, which is a very manageable amount given that in the last 5 years, we've been raising about EUR 5 billion of debt every year. So again, we're comfortable with that. So low risk ultimately translates -- has to translate to low cost. And we've benefited from a stable low cost over the last 3 years. So our TopCo debt has had a cost of 2.1% despite we all know what interest rates have done. And we expect that to remain at a quite stable 2.5% in the next 3 years. And that's a testament, not just to our portfolio, but how we've managed that financial structure. And it's worth noting, for example, Early in 2022 before interest rates started going up, we entered into a EUR 4 billion hedging program, which created a lot of value for the group. And for example, that meant that we were able to reduce the cost of our last bond issued in June last year from 4.1% down to 2.4%, again, helping us keep that cost of debt low into the future. Perhaps the last component, if you like, of our model, which is value-accretive growth. Now value creation can mean a lot of things to a lot of people. But if we try to look at it simplistically from a financial perspective, value creation is achieving a return on your investment that is above your cost of capital. So let's look at what that means. Let's take an example of -- we're looking at an asset that has an equity IRR of 8% to 10% depending on its risk profile. Well, our cost of capital is very efficient and obviously lower than that. So hey, we're already creating value. And yet for an industrial group like Abertis, that's just the beginning. Why is that? Well, first, that 8% to 10%. In our case, thanks to our industrial know-how, that means that the projections that are underpinning those returns are more reliable. So already there, we're de-risking that 8% to 10%. But we don't stop there. We're able, as Pepe said, thanks to the [ breadth ] of our portfolio, thanks to best practice sharing, we're able to extract synergies, optimizations. We will constantly look at ways of improving, enhancing, extending each of those assets, and in some cases, add platform M&A. So what started as an 8% to 10% can easily end up at 10% to 14%. And that is what we do in all of our acquisitions. So let's look at what this has done in practice over the last 5 years. So we generated over the last 5 years were EUR 10 billion of free cash flows. What have we done? We've used EUR 6 billion to pay down debt, first step, deleveraging and EUR 4 billion to pay dividends, including in the last few years to EUR 600 million, as you know. So what has that meant? Well, that means that we started with EUR 23 billion of debt, and we've been able to reduce that to EUR 16 billion on a like-for-like basis, excluding growth. That means we brought down the leverage from 6.6 down to 5.4x. Now you won't see these numbers in our reported figures, and that's unfortunate, but that's what's happening underlying. You do see net debt going down in the years that we don't make acquisitions. So if it's 2019 or 2021 or 2022, you'll see that net debt coming down. We are deleveraging, but of course, that's what creates the firepower for growth, and that's what we've done. So again, in the last 5 years alone, EUR 11 billion of investments, about EUR 10 billion into M&A and over EUR 1 billion in growth CapEx, which are those extensions that Pepe mentioned. So a lot of investments in a short period of time. So how have we funded that? Well, we've been able to use that deleveraging capacity to fund most of that. Obviously, it's a lot in very little time. So we had to top that up with some equity. And what do we get? What has the model delivered in the last 5 years. We've increased EBITDA by 16%. We've doubled our backlog, and yet we've only increased our net debt by 13%. And in fact, our net debt as a percent -- as a multiple of EBITDA, has come down. So that is why we firmly believe that we're in a stronger position today than we were 5 years ago and how we delivered on the model. And again, it's unfortunate that, if you look at just the reported figures, some of these numbers don't pop out, you have to normalize. You have to normalize because, for example, in the last year, when we did a couple of acquisitions, we've got -- at the end of the year, the debt was added to our balance sheet in the last minute, and yet we got no EBITDA for it. That is why, as Pepe said, we also -- we need to pro forma for acquisitions and normalize. And last year, that EUR 1.3 billion of capital increase came in, in March this year, not last year. So you have to be able to see through some of these numbers, which I'm sure -- and I know a lot of you are doing, but that's -- it's important to remember that. So that was the past. What does it look the future look like? Well, I'm going to show some projections that will be shared with you as well. We try to keep it simple. And our projections are for the current portfolio only, it doesn't include any extensions, any M&A, which, again, are part of our model. So if we look at the next 10 years, in aggregate, then we'll break it down. But in the next 10 years, our current portfolio will generate EUR 27 billion of free cash flows. That will give us the capacity to pay down EUR 16 billion of debt and to pay EUR 11 billion in dividends, including EUR 600 million to our controlling shareholders every year for the next 10 years. So that will allow us to reduce our current EUR 26 billion of net debt down to EUR 10 billion, including a significant reduction in the TopCo debt and bring down leverage from 6.3x down to a very low 2.5x. And what will we have in 10 years' time? We will still have a business generating EUR 4 billion of EBITDA and with EUR 110 billion of portfolio of EBITDA backlog. So that's 27, 28 years of EBITDA life still left in our portfolio in 10 years' time. So we still have a strong portfolio, which we have deleveraged. And again, that's what gives us that firepower to reinvest in growth. Now let's break it down into some of the key components. So first, EBITDA, again, these are numbers for the EBITDA current portfolio. So we started at the current level of EUR 4 billion, and we peak at about EUR 6 billion in 2030, continuing the trend that those assets, how they've been performing for the last 10 years and hopefully, with no more COVID. So we peak at EUR 6 billion. And then, we have some -- some of our key concessions in France that it currently would expire. So naturally, that EBITDA will come down. But for the next 10 years, we've still got about EUR 4 billion on average EBITDA coming out of our portfolio on a like-for-like basis. Again, without extensions without growth. So it's a solid cash generation for the next 20 years, and we still end up with a backlog of over EUR 70 billion, which, by the way, is roughly where we were 5 years ago. And we're still going to have that in 20 years' time. Now I have to admit that as management, we don't particularly like this curve, and we're actively -- we're not obviously sitting and doing nothing. So we're going to continue to actively manage actively look for growth extensions. And you can rest assured that this curve will look different in the future, same way that it looks different today from what it was 5 years ago. Now let's look at debt, deleveraging the second -- the first key part of the model -- second, sorry, key part of the model, if you like. We talked about the debt going down from EUR 26 billion down to EUR 10 billion in the next 10 years. And you see the drop in TopCo debt was actually -- is fully repaid in 15 years by 2038. So TopCo, all that debt that is there today, would be gone. So it's a strong deleveraging capacity. Every day, we're paying down that debt. And we reduced leverage from 6x to 4 to 2 and to below 2, which obviously is a very low level. So what we've done is we've put in some recaps at the end. But strong capacity to deleverage, thanks to the strong cash flows. And again, this is without any extensions without any M&A, that is what this will provide us firepower for. The last component, dividends. So we have modeled that, as Juan mentioned, quite simplistically, we've modeled EUR 600 million of dividends paid to our controlling shareholders in the next 15 years. That coincides with the full repayment of the TopCo Debt. And obviously, those cash flows, the less that there is, we can use more of those cash flows to pay dividends. So even though we could probably increase the EUR 600 million earlier, you can see after 2038, a significant increase in dividends. And again, that is without including any extensions, any M&A, which will add to the value coming from these dividends. So thank you. I hope that has been insightful. I do want to leave you with 5 key takeaways. First: The perpetual model works. We have the track record of being able to replace and grow EBITDA. So as Pepe said, we have the confidence that some maturities come in the future, we'll be able to manage those and keep growing our business. Second: a strong cash flow generation because each of the assets that we have, our core infrastructure, quality roads that are doing what they're expected to do, generating predictable recurring and growing cash flows. And we start off with EUR 160 billion of EBITDA backlog. Third: prudent leverage. Sometimes people and without doing the normalization, wonder, is that too much debt? Well, it's not. I hope you've seen today that, first of all, we've been deleveraging. We've just used some of that capacity to fund growth and make us stronger. And we have a clear path to continue significant deleverage over the coming years just [ through our ] current portfolio. And with that portfolio, sustainable dividends, we have the ability to continue paying EUR 600 million a year to our controlling shareholders until the end of our [ concession life ]. And we have the capacity to grow those dividends. Remember, as we deleverage, we can pay more dividends. And we're not just going to sit and do nothing. We're looking for that perpetual growth. We've been doing that for the last 5 years. We've actually been doing that for the last 60 years, actually. And we're not in a rush. We're going to continue to be selective and apply financial discipline but that is the last element that will keep that perpetual value creation model going in perpetuity. So thank you.

Hi, everyone. I'm excited to be able to join you today to get to talk to you about our greenfield opportunities that we have and our greenfield investments that we do within the group. So I'm Nuria Haltiwanger, I'm the CEO for Iridium. And I'm here to talk about ACS Infra and tell you a little bit about who we are, what we do, which I think we do quite well and where we're going into the future. And so in terms of who we are, ACS Infra is comprised of Iridium, Pacific Partnerships and HOCHTIEF PPP and we're a global leader in greenfield infrastructure development and long-term O&M. We're a diversified platform with significant returns, cash yield that adds value along the whole value chain and with what we call the multiplier effect with other entities within our group. And these are a few of the metrics that we think reflect that we do a good job at this. So we have a long and successful track record of managing and investing in very big, large infrastructure projects, many of them considered mega projects. And we've historically invested in almost 250 of them. So that means we have experience in managing them and structuring them financially, oftentimes with project finance. And in doing this, we optimize our investments throughout that life cycle, helping generate a return, a strong equity IRR of almost 17%. Our current portfolio will generate over the next 10 years, EUR 160 million of dividend -- of project dividends. And we believe that, that creates a fair value in terms of the current portfolio that we have of our core infra platform, and I'll talk more about our next generation, of EUR 2.7 billion. So our focus really is about value creation across the full value chain. And so that starts with our development activities. And so we have an extremely successful bid ratio hit rate. So that means that in the last 5 years, the projects where we've decided to bid because we're selective in where we go and the resources that we put forward in identify opportunities. The projects that we go to, we win in the last 5 years, 65% of those projects, so about 2/3 of those projects. And we have a multiplier effect with our investments which means that for every EUR 1 million that we invest in a project, we usually are able to generate about EUR 23 million of revenues for our construction entities and other entities within our group, as well as separately a long stable cash flow of O&M backlog. So we currently have about EUR 3.6 billion of O&M backlog, mainly focused in North America. And then the last part of this value chain, which is really important in terms of what we do for ACS Infra, but for the group generally, is our strategic divestments and equity rotation model. And so we successfully do that by selling portions, oftentimes either a full concession or portions of our concession equity investment in order to generate 2.2x exit ratio compared to equity invested. And that money we can use to invest in new projects going forward, which again has that multiplier effect along the value chain. This shows you our portfolio, which, as I said, is well diversified, and that's well diversified in 3 ways. We're diversified in terms of geography, and so we're present in all of the major places where we do business. So North America, Europe, Asia Pacific and Latin America. We're also diversified in terms of our core infra specifically in terms of sectors. And so we've traditionally been very focused in transport. So we have significant road and rail assets within our portfolio, but as well as facilities. So social infrastructure projects, including hospitals, student accommodation and other public types of facilities. And then I'll talk more about the bottom portion later on, which is what we're calling the new generation infrastructure. And then we're also very diversified in terms of revenue streams. So we have a good balance and mix between availability payment projects, which provide for stable cash flows as well as demand risk projects, which help provide for opportunities for higher yield. We're focused on strengthening our core segments, and I'm going to talk first to that, but also unlocking the value creation that we're able to get from our next-generation infrastructure. So I'm going to focus a little bit just to tell you about the pipeline that we have for our core infrastructure. And there's great opportunity in respect to our core infrastructure, mainly because there's always this ever-increasing gap between the infrastructure that's needed and the infrastructure that countries and states are able to actually invest in. So that unlocks opportunity for private initiative and private investment, and that's where we can come in. But we have a focused and diversified platform of projects that aim -- but it's selective. And so that's an important part of what -- this is first very illustrative of what we have. We have a long pipeline that we study. But we've tried to just highlight some projects here that highlight the diversification of sectors that we look at as well as the integration that we have, but also very importantly, we're very selective in the projects that we pursue, particularly aimed at making sure that they meet our risk profile criteria. That's a shared allocation of risk, particularly on the construction side. And that is really focused and we're pushing clients more and more and because we're able to do that together with our other group companies because of the reputation we have in the market to help push the models of bringing more and more features of collaborative alliance, target pricing into these types of P3 models. And so we're actively doing that, and these projects help highlight that. As the people here now, I can speak in detail about each of these. I won't do that because I know I'm standing between you and lunch, so I'm going to try and keep it moving. But I do think we should highlight a few of the projects that we're tracking, particularly the Managed Lanes projects. And so Managed Lanes is a very large asset class that we're seeing that's going to continue to grow, particularly in the United States. And for those of you who might not know, Managed Lanes are basically congestion relief lanes that are built usually on existing highways that will be tolled. And so we're seeing more and more of those projects coming out within the United States, helping to address congestion in the growing cities. And one of the programs that we're very involved in is part of the Georgia Major Mobility Investment program. We're currently bidding in that program with their first project. That's an EUR 11 billion program with a number of projects that are set to come out with the first one that we'll be bidding coming up this next month, which is the SR400. Nashville and Tennessee will be coming out with a program as well, a large program with these projects. as well to address congestion that they have, and they're calling them Choice Lanes. And then we're following them in Virginia. We also here have, like I said, a brief selection of projects that we have on the social infrastructure space. We're following a number of projects in Australia. There's going to be a pipeline of hospital projects coming out. And then a few of the others that show and highlight particularly one of our water projects that is very interesting in Manchester, which is really bringing in the concept of target pricing model, and we're pulling that into this P3 model, as well as our Denver Airport and Conrac and APM project that we're going to be looking to bid together, which will bring together ACS infrastructure with Turner that will focus on the Conrac, which is a consolidated car rental facility at the Denver Airport, and the APM, which will bring in the expertise from Flatiron. So we'll be doing that collaboratively together. So as I said, our core infrastructure and the sort of highlights, you saw this a little bit before that Juan was able to explain. But this highlights where we're looking to sort of allocate our resources and what we view that the value that, that will bring coming up in 2030. So core infrastructure, we're looking based on our pipeline, our selective pipeline. We'll be looking to invest still about 1/3 of what our equity is going to be, investing forward. And that, we believe, comes out when we look at our traditional exit valuations would be equity value of about EUR 3 billion to EUR 4 billion for that pipeline. And that's just as it relates to the equity investment piece, that doesn't include the multiplier effect of what we're talking about in terms of the construction revenues for the O&M. Then we'll be looking and I'll be talking more in detail about how we're going to be looking at these what we're calling the next generation. But I think it's important to sort of understand what we're talking about when we go there. So as I said, we've historically been and we're involved in critical infrastructure going forward and developing whatever the needs were of the moment for our clients. So roads, bridges, highways, ports, high-speed rail hospitals. We've been involved in that. And as the needs of the society and as the needs of our clients have changed and evolved, we've changed and evolved with them. And right now, digital infrastructure is becoming ever more critical and the need that we have as our renewable energy sources and alternative and more sustainable means of mobility. So that's what we're doing. We're changing with our clients and with the needs to serve and approach those segments. But we're doing them through investments in areas and these growth sectors that are, in essence, very core adjacent. So we're doing them into core adjacent industries and where we already have group expertise. So we're able to leverage our group expertise in order to position ourselves within each of these. I think as you can see, and I'm going to talk more specifically about each one. So I think this was just -- so you can have a good overview. Again, as I said, we're really looking at leveraging the expertise that we have. And I think you've gotten a good highlight from -- already from the presentation that Turner made in terms of where we are in terms of expertise in data centers, you were able to hear from Doug at UGL in terms of the expertise on the renewable energy side. We have collaborations that are already happening. So even though we're calling these next-generation or new infrastructure, they're not new for our group. They're not new in terms of the expertise that we bring from the different group companies. So digital -- turning to digital infrastructure and what we're looking at. The market right now is experiencing a huge paradigm shift in terms of need because of the growing demand for cloud computing solutions as well as the disruption that's associated with AI. So that's the basis for the anticipated growth that we're seeing in the data center market in general, which by 2030 is expected to be about EUR 500 billion of revenues in terms of the market. And our strategy to participate in this from an equity level is really based on 3 fundamental pillars. And this is, I think, a really good example of us we are in the right places at the right time and with the right skill set. And it's actually -- as we look at each of the new generation sectors that really is what it is, we exist and our geographical scope is where these areas are growing, we're there, it's the time and we have the right skill set. So we're going to be leveraging our ACS Group footprint and expertise. And I think it was spoken well in terms of the Turner presentation about we have all of the major relationships with hyperscalers, which are 80% of the clients that utilize and are going to need data center space. We have, within the group, 1,500 dedicated data center experienced professionals. We have in-house land assessment capabilities because, in the end, the data center business is really about land, power capacity, water as well. And we have the ability and the logistics supply chain through SourceBlue to be able to help achieve that and renewable energy and nuclear energy expertise within the group that's also going to help us look to add in some off-grid energy solutions to this product offering. We're going to be looking to provide the end-to-end solutions to act as the developer and investor. And then we'll also be looking at some M&A bolt-on opportunities. So we're targeting right now about 1 gigawatts of data center capacity by 2030. So that will -- that translates in essence, we believe, into a value of -- that will require about EUR 1 billion to EUR 2 billion of investment, and that translates into up to EUR 5 billion of value by 2030. Again, without taking into account the multiplier effect as it relates to the construction opportunities that, that helped us bring. And we're already well on our way to helping achieve this. We have a number of projects already. We have -- a good example, and you'll hear a little bit more about it later, is our project Alcala, here in Madrid. So Madrid is one of the growing areas that we believe in, and places in Spain in general for data center growth. We are already in construction on this project, and we're looking to go into operations in 2026. We're doing this project together, and it's a good example of our integration. And that we're doing because it's a project ourselves Iridium together with Dragados and Turner, who are helping construct that project. And incorporated as well within our overall data center, strategy is a focus on sustainable edge data center solutions, which are actually being developed and is a really unique product offering that's being developed through HOCHTIEF throughout Europe. And so these are focused on edge data centers, which are smaller in size, but is one of the fastest-growing areas within the data center market. And they are looking to already identify 10 locations for data centers within the next 12 months. And you'll hear more about this unique sustainable data center approach later in Martina Steffen's presentation. So it's a very interesting product that we're also doing in this space. Energy transition. I think Doug actually did a really good job of sort of explaining particularly in the Australia market. So our energy transition and renewable energy strategy is focused primarily through Pacific Partnerships in Australia. And we are looking to pursue this because of the need that I think Doug did a good job of explaining in Australia, in terms of investment that will happen in renewable energies. They are at the forefront of the transition with renewable energy solutions going to be one of the largest infrastructure segments in the country for the next decade. They're having to transition from a coal-fired based power load and they're having to transition over in order to meet their 2050 energy net 0 targets. So they're going to have to make significant investment in next generation and generation storage, grid stability and upgrades. So Pacific is already targeting and we're targeting to do about 5 gigawatts, and they're well on their way. They already have 2.5 gigawatts projects that are -- they're currently developing or have exclusivity rights on. And we are -- we believe that, that translates again into -- by 2030 and equity value of about EUR 2 billion to EUR 3 billion. Again, without counting the multiplier effect as it relates to construction and O&M. Green hydrogen, we're also focused on the green hydrogen space. I think Juan did a good job as well explaining our strategy as it relates to green hydrogen. We believe that this is going to be a core vector and driver going forward in the future. And we're trying to position ourselves with the expertise that we have within the group, particularly UGL, in terms of their strength on the technical side. We are -- we have -- these are our 4 pillars in terms of our strategy of how we're looking to do this. So we're going to be focusing on key projects in key markets. The benefit that we have actually is our global presence is exactly where a lot of the green hydrogen solutions are going to be developed in the future. And so we're able to do that. So this is, again, another example of we exist, we're in the right places for this opportunity. But we're actively monitoring it to make sure that the business model meets our very stringent equity requirements in terms of investment. And so again, Juan highlighted them of what they were. It really is making sure that we have a strong offtake agreement that we have the right renewable energy source coming in that we have the right technology as it relates to electrolyzer technology and a competitive -- and a business plan that makes sense, often going to draw upon subsidies, which we're tracking and that have been announced, but we have to see how those actually will play out in terms of being able to do our investment. Having said that, we're well positioned that we actually identified a solid, very real pipeline of about 5 gigawatts of capacity, and we'll be ready to enter into that once we continue to move forward in diligence that and make sure. So our goal would be to reach about at that moment, if the moment is right and when the moment is right, to invest about 2 to 3 gigawatts of capacity of electrolyzer capacity. So sustainable mobility. And so I get the honor of getting to explain some of our exciting things that we're doing in terms of sustainable mobility. Sustainable mobility, the way we sort of describe it is really about the fact that as populations are growing, they're becoming more and more urban and there needs to be different solutions in order to be able to address those needs. And so part of this -- we anticipate actually that by 2035, the global market for what's defined as a sustainable mobility, which is quite large, it's going to be about EUR 1 trillion. And we are investing in and partnering with some of the companies that are helping lead different solutions as it relates to sustainable mobility. I'll talk a little bit more about them in terms of [ Skyports ] and [ Glydways ], so I'll be able to describe them more. But one of the other aspects that we're doing in terms of sustainable mobility is really focusing on the EV charging. So we're addressing the ever-expanding use of electric vehicles and investing in EV charging market opportunities with 150 charging stations and execution currently and another 650 under development. And we have a strong growing pipeline, particularly in the European market through HOCHTIEF, who is actually developing and won one of the largest public procurements for EV charging in Germany. They're looking to -- we're looking to expand that business going into other countries and also looking at truck charging. So in terms of what the market itself is, this is very, again, selective market because the market is quite large. But we're looking to do an equity investment of about EUR 360 million. That's what we've kind of anticipated for the next few years. And we believe that, that equity value, I would say, conservatively, is around over EUR 1 billion. And so now I'll get to talk to you a little bit about one of the -- our opportunities that we have. So we recently did a significant investment in Skyports, which is the, I would say, the global leader in advanced air mobility. And so advanced air mobility has been a business that's been growing and to date has had already about $9 billion of investment. But that's really been focused on the technology for the aircrafts, whereas that $9 billion has gone to the technology to develop the aircrafts. And as those aircrafts and the OEMs are getting ready to final certification, now is the time to be investing in the actual ground infrastructure that's going to help make this industry grow. So we did this by participating and by buying a 50% controlling interest in Skyports, which is the #1 -- Skyports has -- it's -- we would say, the global leader in advanced air mobility and has 2 really interesting components to its business. It is the leading developer of brown operating infrastructure are vertiports for sustainable urban air mobility. And they also have a very interesting beyond line of sight drone services logistics business, which, for example, they're the only company in the world, so that can do cargo deliveries to offshore oil rigs right now. So they have this very interesting other aspect of their business. But we really focused on them because of the infrastructure development side. So they're a first mover and one of the first movers in advanced air mobility, and they developed the first fully integrated vertiport in Paris. They have another 2 in California and Singapore. And they recently -- the video that you're seeing is actually from Dubai, because they won the exclusivity for 10 years to be -- they will be the exclusive vertiport developer and operator for all of Dubai for the next 10 years. Again, we have the 50% controlling interest in Skyports, and that also gives us preferential rights as it relates to equity investments in the projects that they're going to be developing as well as the construction. So again, this multiplier effect on our investments. And then again, as I said, as it relates to the drones logistics business, it's focused on beyond line of sight cargo, surveying and monitoring, and we're actually looking at how we can bring those efficiencies into our broader group and looking at how we're going to bring those synergies to our construction mining and asset management areas of the group. The other thing that I get to talk to you about is Glydways. So we have a pretty modest investment that we made into glide ways. But what that investment in Glydways does, and I'll explain what Glydways does, which is focus on personal rapid transit. But what is actually unlocking for us is the opportunity to invest in what we believe is going to be a very large growing infrastructure mobility solution to participate, again, with the multiplier effect in the construction and in the investment in the projects and the concessions that they're actually winning. So the Glydways concept, I call it where Uber meets mass transit. So it's basically small electric autonomous vehicles that are on demand, but that they run on dedicated lanes and guideways. So the benefit of this is that -- and they can run nonstop. So it runs within a mesh network. So if you're thinking about being basically on a metro system, but you get to call the car to you when you're ready to take it. It will take you on your dedicated lane, and it will drop you off at the station that you want to go to without stopping in between and in a private car experience. So you're not sharing that experience with anybody else. The benefits of this actually has, and we're seeing it play out with our public clients is that it provides a mobility solution that's actually high-capacity mobility solution, but at a fraction of the cost, because it requires a much smaller CapEx and mass transit solutions are usually designed for peak hours and for peak utilization. But that means that there's a lot of hours where trains are running, and they're running half empty. By being on demand, there's actually huge OpEx savings. And so what this modest investment is giving us is an opportunity to participate in the construction of some of these projects. And so they're an industry leader. We actually found them because we were participating in a bid with probably the only other entity that's doing personal rapid transit, but Glydways is technology is much more advanced, I would say, or their solution is much more advanced and they beat us in a procurement. And so if you can't beat them, buy them or buy the piece of them so that you can participate with them. And we're actually now participating with them in that project in San Jose as well as East Contra Costa, which is another project that they bought. I mean that they won together with Flatiron, and we're currently bidding a pilot program at the Atlanta Airport with them together again with Flatiron. So this is a great entry point for us into the automotive -- into the autonomous vehicle space. But it's actually -- because it's on a dedicated lane or a dedicated guideway, and not open road, it's actually able to be utilized now and it's providing a technology solution for the needs of today. So we think this is a really exciting opportunity. And again, very modest investment, but it's giving us the opportunity to partner with them on exciting other projects. And then related to the fact that as we've been talking all of these sustainable mobility solutions that I've been talking to you about are all electric and battery powered. So part of that comes with the need for increase and an ever-increasing need that demand that we're going to be seeing for lithium. And so one of the other aspects that we're going to -- that we're currently exploring together with our other group companies, particularly benefiting from the expertise of Sedgman are some opportunities within the growing need for lithium, particularly in the EU. And we're going to be focused on, and we're analyzing some opportunities going forward in the lithium space as well. And so -- just in terms of the key takeaways, just like I said, I'm between you and lunch. We're a successful platform for investment. We have a history of profitability with a very solid return that we provide for the group in terms of our equity investment with a -- we help provide the strategy of -- and a great exit ratio in terms of exit multiple to equity invested. We have a multiplier effect, and we have large opportunities in our core segments going forward. But we also see solid value creation that we can unlock across the different new growth vectors, because we're able to leverage our geographic scope and the expertise and partnership that we have an integration we have with our other group companies. So thank you so much. [Break]

Good afternoon. We hope you enjoy a launch. We're going to start the second part of our presentation today. We are going to begin with the Engineering & Construction segment. So we will call very soon Santiago García, who is our Chief Executive Officer for Dragados and will come on stage together with David Parker and Richard Grabinski. Both of them work in North America. They understand engineering and construction in North America, they've been there for a number of years. I mean the 3 of them will be able to give us visibility on the segment. We will continue on ESG. We will invite at that point, Martina Steffen, who is our Chief Human Resources Officer for both ACS and HOCHTIEF and Cristina Aldámiz, who is also our head for not only ESG matters, but also operations at ACS Group. And then after that, Emilio Grande, our Chief Financial Officer, will be able to -- going through all the details around the numbers. And I'm sure you're waiting for that. Right after, we will go to conclusions and Q&A. So I hope you find the second part of the presentation, very productive. Thank you. [Presentation]

So good afternoon, everybody. I'm Santiago García, CEO of Dragados Group. And here with me Richard Grabinski, who is the Chief Strategy Officer, in Flatiron, North America, and David Parker from Dragados USA, who is the responsible for bidding and business development. We appreciate your presence here that could be in the rooftop. And it seems like it's better for you to be here, so we appreciate. So let's go with ACS, engineering and construction. What are engineering acquisition today and what are our levers for the better future. First of all, you know us what we do. We do civil construction. We've been doing site construction in complex projects all around the world where we can demonstrate and make the difference with others as we are always in the forefront of the industry due to our technical capabilities, our skills et cetera, where we mainly operate in the most developed markets, that's it, North America and Europe. You can see in the graph that our revenues in 2023 were 60% in North America, United States and Canada and then 39% in Europe. Within the 3 companies that are Flatiron, HOCHTIEF and Dragados, are combined in the top 5 contractors in North America and Europe and in all kind of rankings, like ENR is a prestigious ranking. And that generally, they renovate our ranks, for instance, last year, 2023, Dragados was ranked in top 3 transportation contractors, same with Flatiron in other categories and the HOCHTIEF as well. Well, what are we doing not now just some years ago, and we are continuing now is derisking our profile. This is the main message I would want to declare to you. We are derisking profile, our backlog through collaborative contracts. We're going to take time and explain what is a collaborative contract, which I will do later on in the -- just for you to know that more than 65% (sic) [ 75% ] of our pipeline for future project is in these kind of contracts. And then, of course, at the same other areas the companies in the group and taking advantage of the synergies we have and the power we have with the rest of the group, we are deciding growing in high-growth [indiscernible] market is not a target for the future. We already are in 1/3 of our backlog in this kind of projects, mainly in sustainable mobility, biopharma, health, [ vacation ] and keep going. So what we do, you know us, that we're doing for decades is a very important flagship projects building. We're doing successfully during all years and in different countries. Why? Because we are in the forefront in the industry why because we have the skills, but we keep on investing in having the skills. I mean we keep on investing in business development, in research and in innovation. We don't do things as we did last year. We continue improving ourselves to be the leaders wherever we are. This was always like that. It's because we are [indiscernible] and we do for the future. What is our backlog like? Of course, mostly it is transportation, because we have more 50% of our backlog in transportation, but -- and you can see residential, et cetera, but -- there is 20% of our backlog currently in sustainable mobility and other segments growing. Some projects we could put a lot of projects here we will bridges will be in railway, we will, roads, dams, tunnels, we are tunneling now with 11 tunneling boring machines, which is a machine that can do it. At the moment, 11 in the United States. So just to put 3 examples, one of each company. We have more than 1,000 kilometers of high-speed [ infra ] in Spain with Dragados that permitted us then to export this technology to the rest of the world. We are working in this kind of projects in the United States, for instance. This iconic project of HOCHTIEF Europe in Parague, which is the renovation of this historical building of the Opera House. That's one example could put much more. And this one-off of Flatiron in California, Los Angeles, which is a collaborative contract. And is the dynamic toll facility for a very good client of then, which is L.A. Metro, only a few examples. Figures, don't want you to see much figures than this because I don't want to bore you, but you can see here our behavior the last 2 years and what's our upward trajectory. So in revenue, from 2022 to 2023, our growth was 8%, which was from EUR 8.3 billion to EUR 8.9 billion. Same with PBT from EUR 141 million to EUR 164 million, this is 16% of increase. All of this is going to continue because we have a backlog of 3 years actually, and a backlog that is, remember, derisking. So it's going to be better. As a result, the free cash flow generation, which is in the end what matters more. It's been so healthy, and it's going to be better, it's around EUR 145 million average these last 2 years. Just to give you some figures of where we are today. But what are the levers that will support the future, the present but the future of E&C, 3 levers easy, no more, 3. First of all, we are positioned and will be -- will continue to be in position in the main developed markets in the world, mainly North America, United States and Canada and Europe. We need our ventures, any other. No, we are consistently posited there. There are huge opportunities there. They are still growing. David is going to talk about this in a few minutes. And we have the presence, we have the skills, we have the credentials. The client know us. We know the clients. We're doing it successfully. We will continue, not change. Then second lever, we are fully committed in these companies to derisk our backlog. So we are going to proceed through collaborative contracts. We already have a lot in our backlog. Our pipeline you saw it is 75% or more coming. And we will get time to explain you what is a collaborative model, what is the difference and giving you some example, he will do, Richard. And we will do a couple of examples because we don't have more time. I will give you more that you will understand that this is the path. And the third lever as important as that, is that we are with the rest of the group, taking advantage of the tremendous power for this group and the synergies, getting into the high-growth segments. We are already there. We're going to see that we had several projects ongoing, and we're going to give some examples later on. So David?

Sure. So as Santiago noted, we're located in geographically stable markets with good growth prospects. 60% of our revenue is concentrated in North America, specifically Canada and the U.S., 39% in the EU and the relatively 1% in Latin America. The U.S., in particular -- particularly the heavy civil market has shown really good resiliency and strong growth over the last few years. ENR just released their confidence index, which is essentially a survey of industry leaders in the construction sector that shows that there's a strong expectation of further growth not only in 2024, but in the coming years. And there's good reason for that optimism and that is because of all the federal funding that's been allocated over the last 2 years to this market. The Infrastructure Investment and Jobs Act allocates $1.2 trillion over 5 years. This is split between transportation, power, broadband and water projects. And the majority of this funding has not yet been allocated. So there'll be a tremendous amount of infrastructure investment over the next 3 years as this funding makes its way out to the marketplace. The inflation Reduction Act allocates another $738 billion to energy security, energy transition and climate change. And this is going to benefit some of our future target clients in the energy and public utility space as well as funding is going to be -- additional funding is going to be available to help with flood mitigation and drought resilience, and that's going to be channeled to the core of engineers who are also an existing client of ours. And lastly, the CHIPS Act is authorizing $280 billion to onshore semiconductor manufacturing through loan guarantees, tax credits and direct investment. The first tranche of this funding is going to enable about somewhere between 25 and 50 projects. Now the majority of this funding is going to go to the likes of Turner in building these facilities, but we anticipate that there will be trickle-down E&C opportunities, tangential infrastructure opportunities for us. The final point I'd make here is that there's a multiplier effect associated with this federal funding. It's not the majority of funding that goes into these projects. There is state and local funding matches that are going to accompany these projects as well as private sector investment. So Juan in his opening remarks, talked about the importance in the necessity and the strategic advantage of being local in this business. We and E&C are spread between 21 states in the United States. And critically, we're in all the major metro markets, East Coast, West Coast, throughout the Sunbelt. In Canada, we're concentrated with the 2 Eastern most provinces in the 2 westernmost provinces, that give us good access to our transportation, energy and mining clients. Each of these regional markets has good leadership, which are living and embedded within the community, have good access and relationship with stakeholders and good supply chain and local construction partnerships. And this enables us not only to be successful in these markets, but to project ourselves to areas where we're maybe not present today to the extent there's an opportunity there that becomes attractive to us.

Okay. Now Richard is going to explain what is a collaborative contract.

Yes. Thank you. I want to take a moment and describe what is collaborative delivery as it pertains to the heavy civil market and why is it low risk. So first, owners and contractors both like and benefit from collaborative delivery, because it produces safe outcomes. Owners like it because they get a safe schedule. We like it because we also get a safe schedule. Owners like it because they get predictable financial outcomes. We also like it because we get predictable, safe financial outcomes. So both owners and contractors benefit from it. There's been a huge push in North America towards collaborative delivery. While Turner maybe have done it for 40 years now, it's new in the heavy civil space, and we're very excited about it. So how does it work? So collaborative delivery has the following tenants. First, contractors are selected based on their experience, their people and their technical capability. And that fits the ACS group very well. It's a huge advantage for us. Once selected, the contractor and the client work together in what's called a preconstruction phase. And in the preconstruction phase, we jointly developed a project scope, design, schedule and cost. And this includes price protections for our suppliers, our subcontractors and future escalations as well. Once we align, we negotiate contract terms, and a risk-sharing regime. When agreements reach, we enter into a construction contract. And these contracts are much more favorable than they have been in the past. The contracts can either be cost reimbursable, guaranteed maximum price or a target price. In all cases, these contracts have and give us the opportunity for upside, but they also limit our downside. So they're very favorable. It's a big improvement since how it was in the past. And we've been very successful in these last 3 years. We've already delivered 10 of these contracts, and all 10 of them have the same thing in common. We've done better in our earnings. We've done better in our cash, and we have much more reliable results. So we're extremely focused on getting more and more collaborative delivery contracts. So we see a huge pipeline of this coming. We've had great success over the last 16 months actually winning or getting awarded these collaborative contracts. In fact, we have 24 of them in preconstruction right now where we're actively negotiating with our clients to turn those into a construction contract. That totals about $12 million worth of contract value that we're currently in preconstruction for. And the good news is that the pipeline continues and continues. There's a big push towards this collaborative delivery now, and we're at the forefront of being able to win and execute this work.

Looking at the backlog on the right-hand side of this slide, it's important to recognize the contribution of Flatiron has made in terms of moving toward converting their backlog to this collaborative business model. About 4 years ago, Flatiron initiated a strategy to rebalance its backlog into these lower-risk contracts. The company took what I consider really proactive approach by publicly declaring their strategic intent to move away and disengage from lump sum design bill, which has been problematic for a number of contractors in the U.S. They took the time to meet with clients, partners and explain the rationale for this move as well as the benefits of this kind of contracting for both parties, contractors and owners. The result, as you can see here, has been a dramatic shift from roughly less than 10% 4 years ago to nearly 60% of their backlog being in collaborative contracting. Now Dragados, we took steps 2 years ago to reorganize the bidding group, which I'm responsible for, so that we had a more consistent approach to our business practices and including an enhanced focus on risk management and also to leverage -- better leverage across the company, our technical expertise, which is significant. We also made the pivot at that time to convert to more collaborative contracts. Today, we have about 1/4 of our backlog in collaborative contracts as we expect over the coming years, the next few years, as we move from the contracts that Richard described, which are in preconstruction into construction. And as we win our fair share of this pipeline of collaborative contracts, we expect to have the majority, both Flatiron and Dragados the majority of our contracts will be these kind of collaborative contracts.

Okay. So a couple of examples of this kind of prices, not successful examples. First of all, we start with this project, this is a Dragados project. We took place in London, U.K. started 10 years ago, we're not new in this kind of contracts. It started in the U.K. Now we are continuing in North America. This is a clear example of the -- this kind of projects, because a very complex project because it was in London -- sorry, in Bank Station. I don't know if you know, but it's in the middle or in the center in the heart of London. So this is one of the business players in the world, kind of 400,000 passengers per day, 5 lines in sign. Everything is very impressive, but the thing is that we had to tunnel inside. We have to mine inside. At the same time that these people continue doing this life with no any annoyance. So it was challenging, technically. And that's why the client wanted us to go there. We were not selected as the low offer. We were selected due to our technical capabilities, of course, financial as well. And well, we were there and the challenge has started. There were, of course, a lot of inconvenience, et cetera. Why it's been so successful? Is business as successful because everybody were working in the same direction, no arguments, everybody and why? Because this was through an open book target cost contract, a collaborative contract where the transparency is the word. I mean, everything was on the table, nothing under the table. Everybody got the data. And everybody was motivated and incentivated to get the projects in time, in budget and even getting savings, because there was a sharing mechanism where if the project has cost overruns, we could share this pain in case the project had savings, we will share these savings. So everybody wanted to have savings. What happened in the end, we have savings. It goes successfully finished, we have, again, save to increase the capacity, to install elevators, the free assets, changing platforms from one platform for railway now is for people on the contrary, et cetera. So it was fun, actually. And -- but it was profitable, which is in the end what happens -- and exactly, we finished it on time, in budget, we were awarded full satisfaction of all the stakeholders, the owner, the people around the commuters, everybody there, even the city major that we were mining under his house is still there. So [indiscernible] portion. And in the end, we have 30 awards in this project, all the disposal of them related to diversity, some of them, for instance, promoting women at work or sustainability, et cetera. We were selected by the owner, which was longer underground now transport for London, a stop contractor for them several years in a row due to this project and others, but it is project especially. But in the end, we've got a very good profit. We've got a very good cash performance during the entire life of the project and in full satisfaction of the stakeholders. So this is the project that we want to continue doing. And another one?

Yes. So here's an example of a collaborative delivery project that we're actually performing right now. This is the Terminal 1 at the San Diego International Airport in California. This is a $2.8 billion project. That's a joint venture between Flatiron and our Friends Turner. This is combining Turner's aviation experience. They're building experience, their local presence, along with Flatiron self-perform heavy civil capabilities. This is a low-risk collaborative delivery contract called CMAR, construction manager at risk. And this contract included an open book negotiated preconstruction phase, where together with the client, we developed the project schedule, the project scope, the design and the cost. And then developing the cost, we also developed a shared contingency regime, and we protected our future material escalations from price increases. The efforts of the preconstruction resulted in a construction contract that we're now performing. And in fact, I think by the end of this month, we'll be at about 50% complete on this project. One of the benefits of Flatiron and Turner working together is that we're able to take advantage of our local staff, our local presence and our strengths and in the end, create a simplified management approach of the project. This project has been a great example of how we can leverage the strength of both companies that result and in this case, a very enhanced financial outcome for the group.

Yes. Going through the third lever, which is getting progressively into the high-growth segments, we aligned with the rest of the group. And we have here the backlog, how is now at 34% of our backlog already in this kind of projects, and we will keep on going and growing. And at the moment, sustainable mobilities in the [indiscernible] is 59%, then water framing or biopharma, health and education and the rest growing now. Digital and tech still at the end of 2023 was 1%, and it's going to increase drastically from 2024 onwards, because we are already there, of course, always working hand-by-hand with our the rest of the companies of the group, not competing everywhere. So one example of this, a very good example is the DISH project that [indiscernible] mentioned before, is a project developed by Iridium is a data center in Madrid, in Alcalá [indiscernible]. And it's a clear simple collaboration between the companies. I mean, Iridium developer, then Dragados and Turner are working together with the subsidiaries helping, especially SourceBlue in the purchasing of the equipment that is a very specialized one, et cetera. We are already constructing. We are starting in 2024. We started some months ago. And we have to get this operative in 2026. So this place is perfect to show all what we are seeing today, I mean, it's collaborative. But at the same time, we are getting into this high tech market is going to help us expand in these markets. It's not the only one where we have for confidential reasons, we cannot tell others. Iridium has permitted us to talk about this one. So I think it's a good example of this. And then another one.

Yes. This is a sample of a project that we're performing in our high-growth segments of sustainable mobility. We were selected for this project in 2023 to create a 0 emission micromobility network in Contra Costa, which is in California. This project will provide first mile and last mile connectivity to the existing transit system there. And micromobility is a low-cost battery-operated on-demand pod that transports people along a predetermined route to predetermined destinations. This is a collaborative delivery project, where we're working with the client and all the key stakeholders to do the design, the scope to build it, operate it and maintain it. Once we're able to get an initial operating segment up and running, then we get the exclusive rights to build this further out throughout the country. This is a collaboration with Contra Costa County Transportation Agency but also with the company Glydways that you heard about earlier today. Glydways is an innovative technology leader in this space. This is one of the very first micromobility projects in the United States. And if we can get this one up and running, there's a huge demand, not only in the U.S. but elsewhere.

Okay. So that's it. I mean I'm going to go to summarize with some takeaways that are same that I said before. I mean, first of all, what we do, you know us, we do civil works we do very well. We do the largest in technical challenges more in the world. We've been doing it for decades. We will do it in the next years. But we do it in the high-growth markets. I mean we do it in the United States, we do it in Canada, we do it in Europe, stable conditions, natural prices and a solid position in there with our presence there. Second lever, important, we have in our DNA, all of us mitigate the risk going to collaborative contracts. This is not negotiable. Collaborative contracts and getting a best-risk profile of our backlog. And third, continue increasing our presence and exposure today's high-growth segments. In collaboration with our friends of the rest of the companies of the group. So thank you so much for your attention, okay. [Presentation]

Good evening, everyone. Thank you again for being here today. Martina and myself are very glad to have this opportunity to share with you a brief update on our sustainability agenda. So far, our colleagues have been talking to us on who we are, what opportunities we see looking forward, what is our vision, what we do different. And of course, what this implies in terms of financials and return for our shareholders. Now we want to talk to you about how we do this. In ACS, one of the fundamental pillars of our corporate strategy is our firm commitment to develop our activities in a responsible manner. And this means in a sustainable manner. We have integrated this commitment that is our culture in a transversal way in all of our organization. We are convinced that this is the best approach to rent our future and guaranty fair value is generated for all ACS stakeholders. We take this belief into action. Being our strategy oriented to decarbonize our operations to extend our work in sustainable infrastructure, energy transition, social and digital infrastructure as well as to prioritize operational health and safety and talent development and to do our business, supporting our people and communities and protecting biodiversity in the areas we operate. Our efforts across the years -- sorry, have already yield in some significant accomplishments. As a way of example, we have been able to reduce so far, 30% of carbon emission in the last 4 years. The presence of women in leading positions has also increased, not only in the board. We are 22.6% of women in management positions or over 83% of our operations are evaluated in human rights. We are very proud to see that these efforts have been recognized by the market. Both ACS and HOCHTIEF belong to different indexes. The Dow Jones Sustainability Index, and the FTSE4Good Index, and we both are evaluated and support the carbon disclosure project. This recognition serve us as a motivation, but also as a challenge to keep on promoting our culture and pursuing our commitment in all sustainability aspects, social, environmental and governance. Our strategic approach sets in 2 key principles. On 1 hand, we promote and develop sustainable infrastructure solutions as we've seeing all this morning. And overall, we embed sustainability in our daily business. Regarding the first principle, solutions that we promote include climate resilient infrastructure, renewable energy development, clean hydrogen, sustainable mobility or critical minerals for the energy transition. We see examples of this in the [indiscernible] that has to enhance sustainability and long-term safety of the community on the capabilities we are building in lithium as a key component in electrical vehicles in the lithium extraction and processing plant in Europe. And also in the opportunities that we are pursuing and investing such as on the renewable energy storage sector or in high-tech, sustainable mobility, as Nuria has explained this morning with Skyports and Glydways. We are conscious and have taken very seriously the role we can play as a catalyst for change, driving forward the agenda and culture of sustainability across our supply chain, clients, projects and employees. We promote sustainability by partnering with our 80,000 suppliers to search for sustainable solutions jointly as we've done with United Rentals to electrify Turner fleets. By creating awareness in our 135,000 employees and by driving our business, advancing ingredient solutions in our projects. Our excellence is a driving force in uplifting our reputation that triggers 2 immediate effects. On 1 hand, it becomes the main lever to attract the best resources both when it comes to financial resources as well to when it comes to human capital. As also, it becomes a catalyst for boosting growth as we become eligible for a greater client base. So thank you. And I pass the floor to Martina.

Thank you very much, Cristina. Yes, I'm very glad to be here today. So I worked very hard for the last 3 years in my role as Chief Sustainability Officer of HOCHTIEF on working on with an international team. So really with all our group companies together in driving our operational business and the sustainable future. And on the next slide, you see one environmental case study, sorry. It's our YEXIO data center in Germany. So this project for us a very important project. So it is a project that will create 2-megawatt sustainable high-tech data center in Heiligenhaus, Germany. And this is for us, not only a project as far as much more, it is for us as a product. And we would like to roll out this product in a lot of cities and hopefully, in a lot of countries. So -- and the main areas from this project are 3 areas. It's the energy management, it is the materials and resources, and it's an environment and biodiversity. We are supplying local green energy we are implementing an innovative water cooling system, and we will recycle waste heat. We used alternative construction materials, such as wood and this data center will have a green facade and surface unsealing. So we are totally convinced that this is a product we can roll out to the market. And this is what we are doing now. And hopefully, we can really have a lot of success with that. So as you now see, we established a sustainability master plan to ensure the integration of sustainable practice into our everybody operations. As of today, we are committed to the sustainability master plan, and we are on a good track on it. So if you can see here some of our targets, so you see regarding our environmental pillar, we have the target to reduce 35% and 60% of the emissions in Scope 1 and Scope 2. And we have interim targets of 15% and 30% by 2025. Neutrality, we would -- climate neutrality, we would like to have and reached by 2045. So in the second pillar in the social pillar, of course, for us, health and safety is key. It has top priority in all our business fields. And for this, we have clear directives with clear responsibilities in place. We have really important commitments. We train our people a lot. And of course, we have certifications in place so that we can prove to our customers and partners that we adhere in the highest standards. So the third pillar is our governance pillar. And of course, for us, governance is very important, a good governance. And you see here 2 targets. One target is the target regarding our own operational evaluation regarding human rights. So -- and on the other side, we have a second target. The second target is the critical suppliers evaluated in sustainability. I forgot one important topic. It is a women quota. So I have to go back to social. So this is a very important topic. Cristina said before that we overpassed our target of 20% to have women in management positions. So this is really a great success because this is really an ambitious target. In our business field, it's not so easy to develop people -- to develop women and to get women in our business. But we were able to do that. So we are very proud of this. And if you look to this for us, it's important, as Peter said, that we have the right working environment. And so that really everybody who works for us can be at their best. Be authentic and be treated with dignity and respect. This is very important for us all over our companies. Yes, about the governance pillar, we talked about that. So let us go to the next case study. This is the case study regarding our social pillar. And so here, you see this is a product. It's a 2.2 kilometer promenade in the Hong Kong's harbor front. So -- and here, we have a lot of safety, security, technology included in this project. So we have Design for Manufacture and Assembly technology for boardwalk installation. We use smart robotic lifesaver. We use health monitoring through smart watches for all our workers and we've done a lot of marine health safety trainings. So -- and the result was that we got -- that the team got from the Hong Kong labor department, the gold price. And so we are very proud of this. So unfortunately, I would like to talk more about sustainability, but I know we have a lot of things we have to follow up. But we would like to talk to you, of course, and to follow up here in all our communications through our journey, and we will always let you let you know what our journey is. So thank you so much for today.

My name is Emilio Grande. I'm a CFO of ACS. And I'm really honored to be here today running through our financial review, which will cover the current position we are in and the exciting period we are entering and you've been hearing about from everywhere around the business. It's probably not the best time today to talk about numbers, but I'll do my best to keep the interest up throughout the presentation. So let me start with a very brief introduction of where we are today. As Juan explained at the beginning of his presentation, we've been focused over the last couple of years in developing our strategy. One of the aspects of that strategy is that we have become and we are, as of today, an integrated group. This is very important from a financial perspective, not just because of the focus on the high value and the growth opportunity it brings and the solid cash flows, et cetera. It's also very relevant because it brings a lot of opportunity in terms of integrating further the group explaining the group in a different way and delivering solid results as we did already in 2023 and that you can see on the right-hand side of the slide. Let me start running through our new reporting structure, which is basically better adapted to the new reality or the current reality of the business and our company. We are going to report our results on 4 basic business lines, which are Turner on the 1 side, you will be able to see as we report going forward, the Turner numbers clean. Second, within the Integrated Solutions business line as well as CIMIC as a second reporting segment. CMIC will report their numbers. You already have those numbers, but you will see them in the context of ACS as well as part of integrated solutions. Together with this, which is now, as you know, deconsolidated. But as referred earlier, we are in discussions through the possibility of bringing it back within the group. So this consolidation would go in the CIMIC segment as well. Third one, engineering and construction will gather, as discussed, Dragados, Flatiron and HOCHTIEF Europe and infrastructure, which will cover Abertis and Iridium assets, basically deconsolidated, as you know. One comment on the Infrastructure segment, which I think will be relevant and you will find unusual in the reporting, we -- even though Pacific Partnerships and HOCHTIEF PPP, which are part of the Infrastructure group or part of the Infrastructure business we do across the group. They will be included in CIMIC and HOCHTIEF, but we will be reporting in terms of fair value and book value for those assets. So you can get a full view of where we're investing, what we're investing in, what's the fair value of those investments. So that will be reported through the Infrastructure segment as well. This is a relevant change for us. It's not pure reporting. I think it's relevant because it really allows us to explain the group in the way we see it and the way we manage it. It's fully aligned with our operations fully aligned with our strategy and how we set our priorities. So it's very relevant for our perspective that we are going to be able to show the group going forward in this way. The other point is probably the last one here on the slide. We are going to provide harmonized financial metrics, et cetera. So we'll make our life and everybody's life in the financial community easier because you will be seeing harmonized metrics everywhere across the group. Now that I've explained briefly what their new reporting structure is, let me show you for the first time how our 2023 numbers look like under this new structure. First highlight in my mind is Integrated Solution is the biggest contributor already in 2023 in terms of revenue, profit, et cetera. You can see there the PBT, EUR 944 million, excluding extraordinary results. The contribution of Turner and CIMIC as part of the Integrated Solutions is around 65% of the profit that the business is delivering once you adjust for headquarters. E&C contribution of EUR 164 million PBT in 2023 altogether as a segment, which represents around 15% and infrastructure, EUR 227 million in the period. representing around 20%. So this is how the business will be reporting going forward, as I said. And the headquarters in line will cover all the cost that sits above the business and an NPAT level will also include the financial cost, obviously, that sits in both structures, okay? So this is the numbers for 2023. The expectation, as I'll cover in a minute is Integrated Solutions with high growth opportunity and margin expansion, both for Turner and CIMIC, E&C stable contribution also with growth in margins and good opportunity in the market. And infrastructure in the period '24 to '26, more stable but long-term value creation as we direct investment to those -- to that segment. On the right side of the slide, you can see we're just maintaining our guidance we announced in the full year presentation just a couple of months ago. But given the new reporting structure, we adapt to the bottom line net profit. So it turns into 8% to 12% guidance for 2024. So now that we've covered '23 and '24, let me just run through the targets that Juan outlined in his presentation and that we have set ourselves targets to deliver in the '24 to 2026 period. We are very confident in our market position and the organic growth opportunity in the business to deliver these targets. Let me start with revenue. We're expecting a 9% CAGR to the middle of that range that we show on the slide in terms of revenue. This is on the high end, and this applies to all the targets on the high end of the target we are including the consolidation of these. So 9% or around 7% or 6%, 7% like-for-like without the consolidation of Thiess. In terms of net profit, our target is to move from EUR 600 million in 2023 without extraordinary results to a range of EUR 850 million to EUR 1 billion in 2026. It's important to say here and state here again here that the upper part of the range includes the consolidation of Thiess, which would obviously contribute net profit on an attributable basis in -- by 2026. And that means a 14% CAGR in the period, a solid 14% CAGR in the period. In terms of net operating cash flow, we are targeting to achieve EUR 3.3 billion to EUR 4 billion net operating cash flow number in the period for the group. This is at a group consolidated basis, right? I'll refer to that in a minute when we talk about remuneration. This compares to just over EUR 1 billion, as you know, we generated in 2023 on a consolidated basis. So this is a very important target for us, and it's established on the back of solid cash conversion across the business lines, as has been explained, and I will get into more detail in a minute. Lastly, in terms of shareholder remuneration. We are targeting to deliver over EUR 2 billion of cumulative dividends to ACS shareholders and HOCHTIEF minorities in the period. So this is a EUR 2 billion consolidated number. It incorporates both ACS and HOCHTIEF minorities. And that is expected to be above EUR 2 billion, that includes an increment -- an intention to increment the dividend for ACS shareholders through the period. Now this is the financial roadmap we've established to achieve these targets. You've heard a lot from the business directly. But the question is, how does all that come together in terms of consolidated financials for us to deliver on the targets we've just gone through. So if I go horizontal, let's say, Talking first about revenue growth, as I said, 9% CAGR, 6% like-for-like without the consolidation of Thiess, driven by Turner's growth in the U.S., a strong growth prospects in the U.S. and the expansion, the organic expansion in Europe and advanced services in supply chain, engineering, et cetera, and growth in the new growth sectors. From CMIC's perspective, similar, CIMIC has been experiencing -- in 2023, experienced very solid revenue growth. The expectation is that will continue. We will be sharing numbers about this as we report going forward and you will see the development, a stronger growth in the same case as Turner in the high-growth areas with higher value added and consolidated position on the E&C part of the business that lies within CIMIC. In terms of Infrastructure, what we've been doing in the past. We will look for highly synergetic in terms of revenue investments, profitable investment stand-alone, but also generating revenue for the rest of the business, and that will contribute growth to the revenue line. And in terms of Engineering and Construction, you've been seeing through the day, plenty of examples of collaboration between the different group companies and how that will support as well growth of the E&C business in the period. In terms of profitability or margins of the business, this is a key focus for us in the period, as it cannot be in any other way. But we have -- thanks to that operational integration we've got a lot of opportunity in this front. So part of that is going to come from the business mix, higher percentage of revenues in the different businesses in higher value-add segments as you've been hearing from the business, plus also realizing more efficiencies across every business line and as an integrated group generating more efficiencies from the fact that we are more integrated and we deepen in that integration going forward. So we expect to obtain significant value from that, which have put at the bottom as well as integration efficiencies. In terms of cash flow generation, Again, just to reinstate the target, EUR 3.3 billion to EUR 4 billion at a consolidated level of net operating cash flow, that's the target for the period, for the 3-year period, sustained, as I said, by very strong cash flow performance by the different parts of the business. Turner, you've heard about their delivery to date in that respect and that's the expectation going forward. It's a CapEx-light business. It's working capital generating business positive working capital generating business generally. So very strong cash conversion expected from Turner. Same with CIMIC in -- with some level of completion in the process that we know we are in for some time in terms of unwinding the working capital that comes with a changing model to lower risk contractual structures, but a long-term stable cash flow as we complete that derisking process we're in. Abertis, you've heard as well about Abertis, we rely on a stable cash flow generation, stable dividend of EUR 600 million per annum plus the dividends that are generated by the rest of the assets, concessional assets or assets we own around the business and all the investment we're diverting there. And lastly, from E&C, a stable cash flow generation as we complete the remaining working capital unwind linked to the change in the contractual model and the lower risk models. So let's go through the net operating cash flow. How we are going to deploy how we're going to deploy that capital through 2024 to 2026 period. As I said, we expect the business to generate on an organic basis. Based on the current market position and based on the current organic growth prospects, we expect to generate in the period of EUR 3.3 billion to EUR 4 billion. Again, EUR 4 billion, remember, includes Thiess consolidation [ EUR 3.3 billion ]. So first of all, first allocation of that is shareholder remuneration. As I said, that EUR 2 billion block includes HOCHTIEF minorities as well, not just ACS shareholders. And it assumes we -- our intention to increase the dividend per share through the period. That means we are left with EUR 1.3 billion or up to EUR 2 billion total firepower from the business cash flow generation which -- of which we have already invested EUR 650 million in Abertis earlier this year, and we are allocating EUR 200 million for the potential acquisition of the 10% of Thiess. So with all of that, we are still left with EUR 1.2 billion for the period to direct to our investments, and I'll get in a minute in how we make the decisions through the process in terms of capital allocation, plus between EUR 2 billion and EUR 3 billion of cash flow coming from divestments of noncore assets, which I'll talk to in a minute. So all of that will be allocated in a flexible way in the sense of in terms of timing and in terms of complying with our financial policy, which is basically shareholder remuneration, as explained with the EUR 2 per share and intention to grow over the period and protecting our strong credit profile and our investment-grade rating profile. So these are the opportunities. We will continue to look into in order to deploy the capital going forward. We are adopting and Juan mentioned it as well, we have adopted a very strong and robust flexible capital allocation policy and process to decide on all these investments. But essentially in terms of what they are, you can see on the left side a value accretive and strategic M&A. There's plenty of examples we've done, and we will continue to look at in terms of bolt-on acquisitions to enhance engineering capabilities for businesses that once come to the ACS world, let's say, our portfolio generates a lot of synergy in terms of revenue growth and value, and that will add to the long-term value of the company. The support to Turner's expansion into Europe or any other strategic investments we analyze as we go. In terms of brownfield infrastructure acquisitions, Abertis is an amazing growth platform, as you have heard. And we will continue to analyze opportunities. There's a lot of opportunities, as José Aljaro explained in the pipeline. We will continue to look into that, and that's certainly an area of interest for us to deploy capital. And lastly, in terms of equity investments, you've heard from Noria, the amount of opportunity we've got across the group globally in this area, both in core infrastructure and more traditional markets but also in the new vectors of growth. And we are already deploying capital like Skyports or Glydways, and we're already deploying capital in these areas that will contribute to the long-term value of the business. So in terms of these investments, obviously, we will continue to apply strict guidelines for investment. We will look for flexible and liquid investments as we go. We will look for high synergy potential of every investment we put money into in addition to the -- obviously, the financial stand-alone attractiveness of the investment and protect the investment-grade rating of the group together with the shareholder remuneration. And these are essentially a summary of the Dragados so far financial policy, which will cover the capital allocation policy in the period and as we go, how we make decisions. And that's why I referred earlier, flexible allocation through the period. First of all, shareholder remuneration with an intention to increase the EUR 2 per share in the period. The maintenance of our investment-grade rating and the group companies that also have an investment-grade rating. And within well managed and sound debt structure management going forward based on the same principles we've been doing traditionally. So conservative liquidity and comfortable liquidity levels limited refinancing risk and long-term maturities for the debt cost -- finance cost management of the debt structure and a good diversification between funding sources between capital markets, et cetera. You can see there on the slide some of the key metrics in this respect as of December 23 for the group, which shows a sound position in that respect. So key takeaways from my perspective, from this financial review before I turn to Juan for his closing remarks. First of all, the new reporting structure, it's very significant. It's going to align -- it's going to allow you to see the business, how we see it internally and align to our operations and to our strategic decisions. We've got a strong business plan, organic business plan that is able to generate based on the current market position, all the growth opportunities we've been talking about the cash management and the cash delivery is able to generate between EUR 3.3 billion and EUR 4 billion of cash across the group that we will use to provide shareholder remuneration and long-term growth of the company for the benefit of shareholders. And that will be driven by a strong and consistent delivery by the different business lines, big contribution by integrated solutions and stable contribution in the period of cash and longer-term growth opportunities for infrastructure. And just to state the last all that capital allocation, as I said, will be driven to deliver shareholder remuneration, direct, there is an intention to direct investment to equity investments to deliver long-term value together with an attractive shareholder remuneration, while protecting our credit profile and our investment-grade rating. So thank you very much. Thank you very much for listening to -- for me today.

Okay. So we reached the end of our Capital Markets Day today. If you remember back in 2022, a few of us, we got together, and we're talking about ACS at that time. And a few of you asked me about the vision for ACS. And we started talking about our biggest strength, which was our geographical positioning throughout the different markets, and that was going to be key to address an approach what was coming. And we spoke about a few things. We spoke about different sectors. We touched on data centers, and we went through defense, battery fabs. And we're going through all of that. At that time, there were a few questions about -- I mean, it's a good vision and how you're planning to move it forward because right now, ACS -- after the selldown of ACS Industrial is a civil and building contractor. And at that point, we went through how we're planning to implement it. Today, we're not giving a vision. Today, we have explained a reality. We have gone through the current valuation. 120 years of history of Turner is not wrong. We just gave visibility. And Abertis, unfortunately, we haven't been able to give the visibility before for different reasons, but we are provided with the modeling. The net debt, the assets, the dividends, all that comes out of the model. And when it comes to CIMIC, if you go through each one of the organizations within CIMIC, all of them are very stable, long-term business, working collaborative jobs, such as Sedgeman, UGL, Thiess, Leighton Asia. History doesn't lie, and that's why we are so obsessed to the risk or business model. And that's why in that civil component that we still have, we want to make sure that we avoid some of the mistakes of the past, where a lot of the construction industry was taking unnecessary risk. And ever since the last 2 years, we've been communicating the percentage that we've been achieving in terms of derisking our backlog. Having said that, you are not going to see any surprise. We believe that we're very close to continue derisking and there's probably 2 years from now to achieve that an important part of 100% of our backlog. But until then, we will not see any surprise. We're very comfortable with our backlog, and we're very comfortable with the way we're doing things. I won't go through all the messages that you've been hearing today because we would need another 5 hours. But there's a few important ones that I think are worth to emphasize. First one, when it comes to Turner, not just the $1.7 billion dividends delivered since 2017, but that 10% annual growth in the PBT, 8% backlog, 6% revenues since 2017 and 100% conversion rate. The reason why we're bringing Turner into Europe is because the clients are asking for it. Those clients are letting us know where do they want Turner to be positioned, which companies they want us to approach and how they want us to continue doing business. Turner is around $18 billion revenues in the U.S. But right now, they are just started to look at Europe, and there's already $2 billion in opportunities that will materialize very soon. And the pipeline is around the $20 billion. So there's a huge growth opportunity for Turner in backlog, and we also went through the yields before. Margins not just finishing 2.6%. And at the end of 2023 on a priority basis, but they will continue growing above the 3.5% by 2026. There's a lot of value. When it comes to CIMIC, CIMIC is a huge platform. And in the same way that Turner is going to Europe and to Asia, CIMIC is coming to Europe or in North America. The level of knowledge in the engineering associated to the industrial renewables, energy transition, critical minerals that CIMIC has some percent, and we're going to use all that knowledge to do exactly the same thing that we've been doing from Turner respective with CIMIC. And we are very, very encouraged about some of the opportunities that the market is offering us in those sectors. Abertis. You have the model, please ask any questions you might have. It was very important for us to show how the net debt profile was evolving and unwinding over the years because there was a lot of questions about it. EUR 25 billion half of that corporate debt, how are you planning to repay it pays by itself. It's a matter of time. It's linked to projects, it's linked to assets. It's not differentiated between corporate assets, everything is part of the same thing. It's just the way that is managed to achieve more efficiencies in cost. But it's linked to projects and we are very comfortable with the EUR 600 million dividend in prepared duty growing after 2038. But more importantly, what you saw today on Abertis doesn't include extensions, doesn't include M&A. And you also saw that we do have firepower to support that potential M&A at Abertis. It was very difficult to see many opportunities for the last 5 years. Pension funds, very, very, very competitive, and it was quite -- or almost impossible to see one brownfield opportunity. But now there's plenty of brownfield opportunities and our capital cost is competitive again because of increasing interest rates. On top of that, we are going to have a lot of opportunities on the greenfield space to transfer those assets to Abertis. So the opportunity to grow is there. And of course, I would like to emphasize that the biggest opportunity right now are the extensions, which require no equity in that sense. ACS infrastructure, the big question is how much is blue sky, how much is reality. And I wish we had another 3 hours because each one of the segments we have introduced have been very, very carefully drafted. It's not that we are talking about 20 billion because we're trying to capture a percentage of our blue sky market. The 20 billion that we are analyzing in data centers, it's already filtered through all the opportunities we have identified in excess of 60 billion once we have gone through the analysis of where is the fiber, where's the energy, where's the hyperscaler, which are the preferences. That's what is driving the equity. And then the rest of the equity value is pretty much looking at the market, last transactions. We are not looking at the 30x EBITDA that we've been in transactions in the last 5 years. We're being so much more conservative than that. But we will be talking and following up on those opportunities and how they materialize over time. Same thing with renewables, same thing with sustainable mobility. And of course, we did not include on purpose, the opportunities associated to hydrogen or the critical minerals because we don't want to mislead or believe that we're just being aggressive. I'm talking about Blue Sky. And then Engineering and construction. Engineering and construction, as I said before, it's our DNA. And the investment in traditional transportation, construction, is just going to go increasing and increasing and increasing. So that increase is a big opportunity for us. It's just that we want to do it right this time. And where's the opportunity that is very difficult to find nowadays a pure civil project because that kind of commodity applies to a small price, but not to the big projects. Every big product nowadays, as I said before, as a component of energy, has an associated data center, most likely has stand-alone 5G associated because everything is smart these days. And it's probably in a difficult part of the world, requiring a lot of people. And yes, labor is one of the big challenges these days, being able to bring skilled labor, but at the same time, it's one of our biggest strengths to be able to mobilize people. We are very proud this year that for the first time, for the first time, ACS Group has become part of the Forbes list of the Employer of Choice, the Best Place to Work. We're very proud that it's not just that we have become part of that selected list is that we have become the first company in Spain above all banks, oil and gas companies, telecom companies in ranking in Spain, and we have a very good position internationally. So that says a lot about our values, about what we stand for, about how we're pursuing pretty much the ESG component of our plan in a rigorous manner. And that also follows the fact that CIMIC and Turner has been for many years being the employer of choice of the people in those areas. So ACS is a reflection of our companies and our companies are a reflection of ACS. So I want to finish with the 3 pillars because that's the way I started, the risk in our balance sheet, growing our backlog in all these new segments, making sure that we increase our yield and our margins and, of course, taking the opportunity that all these new segments give us from an equity perspective. So I'm going to turn over right now to the team so we can go through all your questions, but I truly appreciate your time today. And of course, we will be following up with you through all the results this year. So I'm going to invite the entire team to join.

Questions.

Luis Prieto from Kepler. Thank you very much. I have a bit of information overload, but thanks a lot. Really appreciate what you've done. Quite impressive. I had a couple of questions. I don't want to monopolize. The first one is regarding capital allocation. You described very clearly the numbers where everything comes from what you want to invest in. But there's obviously a moving part there, which is if you're forced -- sorry, for the expression, but if you have to pay more for a larger stake in Thiess, beyond the 10%, obviously, the result gets affected. So my question is, what sort of leverage can we take into account if any, on top of what you described in order to compensate for something like Thiess, for example. And the second one is you've talked about Turner, you've insolated it in your future reporting, which is great. But how much is that business worth? I would like to know who you think your competitors are? And what's the right multiple EV EBITDA, if you could provide it, please?

So let me start [indiscernible] through some of that, and then I will turn over to Emilio. As you see on the screen, this acquisition, I mean, the first 10% -- I'm sorry, it's not in the screen. But let me take you through it. If you remember, out of the firepower, we had it was net operating cash flow of EUR 3.3 billion to EUR 4 billion. And out of that, our intention was to use approximately EUR 2 billion for shareholders remuneration. There was allocated EUR 200 million for the Thiess acquisition, EUR 650 million for Abertis. And then in total, including noncore asset divestments, it was going up to the EUR 2.5 billion to EUR 4.2 billion. The 40% acquisition of Thiess, most likely would happen by the end of '26 and the revenues or the cash going out at the beginning of '27, right? That's what we have included. So you would need to add another by 2027, probably EUR 1.5 billion of firepower into that, right? If you look at our profile, we are at EUR 1.5 billion, less CapEx, EUR 1 billion, 500 million shareholders, EUR 500 million firepower for investments. We're going to grow that. That's why we get into EUR 3.3 billion to EUR 4 billion cumulative by the end of '26. So by '27, we should expect that EUR 1 billion moving to EUR 1.5 billion. Now even if for whatever reason that [indiscernible] was exercised before, which I guess that was your question, I mean, we still have from EUR 2.5 billion to EUR 4.2 billion I mean, available for -- I mean, to cover a lot of that or EUR 1.2 billion the remaining firepower, if you deduct that. So we are very comfortable that we're going to be able to continue using -- I mean, we have enough funds for dealing with everything we have.

Yes. I would add if that [ good ] was exercised, we would bring all that cash flow with it. So it's financeable. There's liquidity at CIMIC to accomplish that. So there wouldn't be a problem in that sense on the contrary. And on the other hand, from a rating perspective, that's already factored in. So from a rating perspective, it adds on the subjective side, or the more qualitative analysis, it's positive in terms of business diversification and in terms of credit metrics, it's neutral, essentially. So from that perspective, it's within the financial policy, et cetera. If it comes early at the [indiscernible] price, it's accretive to these numbers because we would be saving minorities going forward, which is not factored in.

And the second question about Turner. So we wanted to put a spotlight in internal because we see real chances for Turner to grow into the future, right? Above and a larger scale of what has been in the past. And that's why it's really important for us to make sure that everyone is looking at Turner and the evolution, in margins, in revenues and in segment. Especially now that the U.S. is booming and especially right now that we go to Europe. Who are the competitors of Turner? Jacobs, AECOM, Bechtel, ABR, which are the multipliers. I mean, Jacobs has gone from -- depending on the time from 12 to 16. Bechtel is private. But those multipliers of the EBITDAs are very well now in the market. And they are similar companies. The more Turner continue evolving into high-tech areas, industrial areas, which it will, the more we will be able to achieve those targets.

This is Marcin Wojtal from Bank of America. Firstly, on your disposals of noncore assets, you indicated between 2 billion and 3 billion, can you provide an update? We've been obviously reading in the press about class energy assets? What are these transactions moving in the right direction? And maybe second question, if I may. You gave helpful guidance for net profit for the group for 2026. Is it fair to say that Turner is the largest contributor to growth? That would be one of the highest growth, what are the other relevant contributors in terms of segments for net profit growth?

So starting with the second one, Turner for sure is a big contributor. But we also believe that EnC has a lot of potential, right, especially when it comes to North American market. And as we move into this collaborative contracts, we see a lot of potential in the business plans, growth and margin. And that was -- this is one of our pleasant surprises that we are in the right direction when doing EnC. In the case of CIMIC, we see a lot of potential but probably we see the potential of CIMIC beyond 2026, right, I mean, because we need to go back to the transaction we did, we valued back in 2020. At that stage, this, for example, did not have any debt. And post transaction, we raised 1.6 billion, we put in debt at a 44 million cost -- interest cost per year. Nowadays, that interest cost is 220 million. And this is dealing with 220 million load in its numbers. UGL and Leighton Asia, are the ones that are going to grow significantly and the potential is unlimited. But also, we've been that for a few years because Leighton Asia has gone from a 50% high tech or advanced technology, 50% civil to a pure advanced technology, high-tech markets digital. We have seen a growth, but unwinding at the same time, right? So we will see a little bit of that before Leighton Asia will start growing even about what it used to be. And we're very comfortable that, that will happen '26 onwards. So we do see a lot of potential with CIMIC. When it comes to ACS Infrastructure, it's true that that's not so much embedded in the PBTs and EBITDAs and P&L. But from a value perspective, that's probably one of [indiscernible] right? And that's the one that we will be more -- I mean doing more follow-up as we go. And the other question, Marcin sorry, the other question was about?

I was asking about disposals of noncore assets plus energy.

So those -- I mean the ones we always include in the list [indiscernible] and industrial assets that [indiscernible] did not purchase when taking ACS Industrial. And those are the ones that -- I mean, the reason why they did not buy them is that because they were not completed or there were any kind of defect that had to be corrected, et cetera. So we believe that most of those assets will be disposed by 2025, and [indiscernible] it's under analysis right now.

Graham Hunt from Jefferies. Just two questions from me. First of all, on the SH-288 maybe if you could just comment on how the developments there, if they've changed the way you think about the U.S. Express Lane market or in the pipeline that you see there? And then second question, you spoke about extensions being one of the most important opportunities you see in Abertis. Could you just talk about what stands in your way and sort of getting those extensions? And if you could give any color in terms of what you're expecting in the midterm would be helpful.

So we're starting with 288. It hasn't changed our mind. We still believe that the U.S. market is a growing market. What Texas has done is just looking at the contract analyzing the possibility to take the asset at a lower cost. But it's true that it's a very specific clause that Texas has been putting in their CDAs or concession agreements for a number of years. The rest of the managements who are pursuing, and you saw the program and examples that we gave is significant, it's huge and do not have that clause. To mention for convenience going forward. We want to make sure that is for market value at the time of termination. So from that perspective, we are comfortable and it doesn't change. Regarding the potential extensions of Abertis, and Pepe can comment more on that, I will turn it over to you, Pepe in a minute. But those are the biggest opportunities because do not require equity, right? And traditionally, that has always been -- and that's why Abertis put so much emphasis in talking about the past when explaining the future because that has always been the way for [indiscernible] to increase CapEx, increase investments out of their balance sheet and pretty much implementing instantly without going from 1 year, 2 year in the process. And what we're going to find is a situation in many, many markets that there's a real need for infrastructure, especially in South America, but also in Europe. And most of the clients when they are facing that situation, having Abertis or any other operator owning assets and being able to pretty much run all those CapEx extensions through the operator is the best, more efficient, cheaper, fastest way to put people to work.

Okay. Clearly, this is one of the strength of Abertis. All the management team is fully oriented to identify opportunities to open negotiation with the different grantors or governments try to generate extra value in our assets. As I said before, you saw in the presentation some example. But having said that, we have others in the pipeline. I said we have under negotiation right now with the Brazilian government, the possibility to extend some of the federal concessions. Today, we manage 5. We have presented idea some projects to extend up to 15 extra years. Those concessions. I mean today, we have only 2 in the second phase. That mean we have timing to negotiate these 2 concessions. The other 3 is standby, but that is a great possibility to improve and to generate additional value. Always is a win-win with the administration. But clearly, we know the assets. I mean the risk is limited. We have the back office, we have everything. I mean, in many cases, is the way to invest extra CapEx and in exchange of that extend the concession. There is other formulas. In the formulas, we changed the tariff scheme, for instance. On that case, we modify, we'll reduce the tariff. And in the change of that, we extend the life of the concession. I mean that is a different mechanism. Let me to give you some feedback about other opportunities. We have some ideas in mind to renegotiate improvement in our road in Mexico, for instance. But it's not the right timing today. There is election in June. We have to wait the new minister at that time, we will approach them and we will start to propose idea. So the idea is to improve capacity, to improve safety. For instance, we are very sensitive to safety. That different cases, in some cases, is some politician in one region need to do re-enrolled for instance, I mean, we are very, very focused on that. Sorry to extend in my answer, but I give you other examples. For instance, in Puerto Rico, Recently, we won a tender, and we bought 4 new concessions. In that case, the tender process will launch for 40 years. And the maximum length of the concession could be 50. We push the governor for only 40 and not 50. Why? Because we identified in the due diligence process, some actions, some ideas to improve later and to go in this trade-off. Okay, governor. If we do this and this improvement, we will reduce some traffic jam here. We are going to improve safety in this area and in exchange of that we will ask the 10 extra years. I mean we are always thinking in these type of things.

Dario Maglione from BNP Paribas. Three questions for me. One on Abertis, in which scenario do you expect an equity injection in 2024? And what is the feedback from the rating agencies on the business plan that you have presented today? Second question on the working capital outflow that has been going on as the transition to lower-risk contracts. When do you expect that outflow to stop? And third question on Iridium, the existing assets. A lot of things we look just at the book value, but so many of them. But we are using there is a lot of upside potentially comparing the book value and the actual value of the asset?

Okay. So I will turn over to each one of you. But in general, I mean, I guess that the last question, the 2.7 billion for market value on the assets. Is there -- as they get mature opportunities for recycling equity? Yes, there is. We haven't considered but there is, right? In case of Abertis, so we're working with the rating agencies, obviously, presenting other plans. And of course, the rating agency is one of the things. But they are -- I believe they are comfortable is first, our commitment always to keep the investment grade of Abertis. And in second instance, that they see as the shareholders, we are pretty much committed to Abertis with equity, with the negotiations of extensions, et cetera. So all of that is very powerful. But I will turn over to Emilio, Nuria and Pepe to...

I think you've summed it up. In terms of Iridium, I think in terms of our assets, we have a number of assets where we have opportunities sometimes for refinancings. And so we can get value there. We have, as I said, a good mix of portfolio in terms of availability. So sometimes there's more limited abilities for huge upside there other than an exit. So we look at strategic exits where it relates to that. And then we have a good demand risk. So I think -- I mean, really the value that we're able to bring and draw forward is on managing the financing and optimizing financings as well as where it makes sense doing equity rotation.

Okay. Only to add regarding rating. We have a monthly contact with the rating agencies. And before to present a binding offer, we submit to the S&P, what would be the outcome if we success in this process. That gives us a guarantee that we are everything in line with our commitment. Our commitment is to maintain the stable outlook in the [indiscernible], I mean we think this is the more optimal notation or rating for our company.

And to the last point on the working capital. Probably the answer is '24 and little bit in '25. But overall, we are not concerned about an overall winding. You will see that certain companies have unwinding as we migrate and derisk the organizations. But overall, you won't see an impact in the overall working capital because some companies are growing significantly and there will be unwinding. So -- but if you were to isolate those companies more impacting '24 and a little bit in '25.

Joao Safara from Santander. I have two questions and both of them are -- well, the first one on the cash inflows and the second one on the cash outflows. On the cash inflows, just to understand the -- again, going back to the potential divestments, if this includes the SH-288 or not has anything changed, do you take that into account that potentially, if there is obviously a renegotiation, it would be more difficult for you to sell this asset than before, just to have an idea if you add that into consideration? And then the second one on the use of the EUR 1.3 billion of equity investment, what I would like to understand, and if you could give us more color here on basically on what is the equity committed as of today for these investments. So we know there is a 3-year period. So we'd like to understand more or less this EUR 1.3 billion, how much is today already committed to be invested.

Okay. So starting with the first one. The bad part of the 288 is that obviously, we lose an important asset. But the 288 dividends were very much back ended. With most of it post 2015. So in short term, and I don't want to give the impression that it's a good thing to mention for convenience of the 288 because it's not. But in the short term, we are getting an inflow of 1.2 billion. 44% comes directly to Iridium. 50% of this 56% through Abertis, right, so we do have an input. We do have an injection of equity in the short term. In terms of a potential sale of 288, we would have waited maybe a couple -- 2, 3 years to get it. and we would have been able to maximize that. How much more, I'm not sure, right? So we would probably -- the divestment wouldn't have happened at Abertis level. It would have happened at Iridium level. And instead of getting the 500 million we would have been able to get twice that amount, more or less. In that sense. And then Nuria, if you really want to go through the -- he was talking about 1.3 billion. How much of that is already available -- I mean, of the total firepower we were talking about the 1.3 billion investment from greenfield, right? And that one, more or less, when you look at the page of investments and you see how much we have on data centers, how much we do have for renewables? How much -- I mean that -- how much we have for the different projects. That 1.3 billion is going to be allocated to that. There's an important portion potentially of managed lanes in the U.S. out of the 1.3 billion from now to 2026. There's an important part that goes to data centers, and we have 3 data centers in mind right now. There's also opportunities already identified through sustainable mobility, especially electric chargers and the ones coming from [ Sky boards ] and [indiscernible] that we explained before. And we do have the ones for renewables in Australia, right? And that would be from now to -- and it's an important part from now to '26. The firepower we have above that, which is significantly because we have another EUR 2 billion to EUR 3 billion [ by heart ]. That's the one that we need to decide. A, how much of that EUR 1.2 billion to EUR 2.93 billion we want to allocate to Abertis, how much to new infra projects associated to Thiess's infrastructure and how much to M&A, because when we were talking about Turner coming to Europe or CIMIC going to Europe or North America, there's an important piece of engineering that we would like to acquire and make [indiscernible] capabilities on the ground.

[ August Nason ] from Stifel. I've only got one question. In your 2030 vision slide, you were talking about the simplification of the group, and I imagine this refers to your structure. So I was wondering how do you think about your HOCHTIEF stake in that context?

So we -- I mean, first of all, operationally speaking, we're very comfortable with the way we are, right? And there were 2 question marks in our business plan. And for the last 2 years, a lot of questions in this regard, saying how are you going to simplify ACS because ACS is very complex, lots of brands, a minority interest. Today, we wanted to make sure that everyone sees ACS in the same way we see, which is, first, having different brands is a strength, not a weakness. And 2 operationally speaking, we access all of that because between ACS and HOCHTIEF, we are pretty much managing the group in a unique and consistent way. Yes, we need to make sure that we protect the minorities of HOCHTIEF, and we will always do that in everything we do. That's number 1 rule when managing ACS or HOCHTIEF. So what about the potential acquisition of HOCHTIEF, which is your main question. At this stage, it's not in our agenda. But of course, always happy to be opportunistic when it comes to capital allocation. What we don't want is to distract ourselves from all the opportunities we have described today by focusing on trying to consolidate our [indiscernible] because we don't need it. right? It's a good financial investment years. Doesn't give us more EBITDA, but it gives us more impact on dividends, of course. The math is direct, but we believe that we can generate much more value by pursuing our capital allocation structure. There was a question at the end.

So, Nicolas Mora from Morgan Stanley. Quite a few, but I'll go straight to the point. On Turner, there's a lot of froth on data centers. Can you help us a little bit really in a simple way, frame the opportunity? Today, you're doing $3 billion revenue in data centers, where can go? How much is this boosting margin -- just to help us basically salivate on the opportunity? That will be the first question. Then on Turner again, you've got -- you're talking about high tech. There's also the low-tech business. How is that doing? Is it still stuck in a 1% to 2% EBIT margin range? And how much of a, let's say, cannonball is it to the overall progression of margin? And last on simplification and streamlining. Thanks for the new split. But personally, I'm not quite sure we're streamlining much Integrated services still has CPV contractors, for example, you're going to add contract mining. That's a bit disconcerting for a fair amount of investors, especially with an ESG focus. Can we even simplify further? Why not just group Turner and UGL, for example, which are high margin, very high multiple businesses, and strip out CPV? So I'm not entirely sure we're actually simplifying really that much today. And we -- the market is going to be able to recognize and value the assets as much as one could hope.

You want to just talk about Turner, Peter?

Sure. Thank you very much for your question. I think that the $3 billion that we have today can immediately go to $5 billion in the next 2 quarters. because of the race to AI by the 5 hyperscalers. And those opportunities for us are going to become more and more prevalent because there are only a limited amount of competitors that can work in that data center market. So we are really waiting for the, I'd say, the oil bust to really give us more opportunities. In addition to that, those competitors have small scale. In other words, regional, they're more regional, where we have larger scale in the country today. And the second part of your question is on the buildup of margins. What we're finding is that we are able to price the value that we bring as integrated solutions to these projects like SourceBlue and self-performing. If you think of a data center, you think of a server that servers on top of servers, on top of servers. And then there's a -- that's a warm layer and then there's a cooler layer next to it, and they have to be mixed together. They're partitioned off. So what we're doing is we're self-performing all of those partitions so that we are doing more of our self-perform work in those data centers. That's price to value. That's increasing the margins on those particular projects. On the EV battery space, in 1 project, we are building 1/2 of all the clean rooms self-perform. That's another opportunity to price the value because we're increasing the margins. And then the last piece -- point I wanted to make, the competitors in the data center space are not necessarily the competitors in the EV battery space, and we are in both. So we are going to take advantage of the price to value and also take advantage of the opportunity that if those opportunities come out, our scale will be able to accommodate those clients and building and participate in the race of the AI.

And on the second question, I will go through it right now. So you're right, let me answer because your question has 2 different angles. From an ESG perspective, from a financial perspective. Let me start with the financial perspective. You're right. CPV should be in [indiscernible] but it was very difficult to reorganize everything to change and to move CPV out of the reporting. So we will provide that adjustment whenever you -- we're talking one-on-one, you will be easy when it comes to valuation, right? The reason why we believe that this should be -- [indiscernible], is because of natural resources is different from the world of just coal. And 4 or 5 years ago, this assessment were mainly coal-oriented mining and processing engineering firms. But they've been moving away from that. Rare or highly engineering complex projects, so is lithium. So is nickel, so is iron ore. So it's copper, magnetite, vanadium, is not coal, it's a processing coal plant is crushing the mineral, very different from lithium. We do have a variety of options. And the same thing from an operational perspective, even more when you get underground and part of the operation, it's underground in highly engineered environments, right? But at the same time, both of them share exactly the same approach to business [ downturn ], when it comes to risk and to cash flows and certainty, right? And both of them are in the long term. And at the same time, when we were talking about Turner, one of the things that we love about Turner, right? We love everything about Turner, as you can imagine. But 1 of the things that we like is that, that relationship with the clients that they do have has been very useful for [ light in Asia ], has been very useful for UGL. It's been very useful for [indiscernible]. And all of that is being managed by Turner. Even SourceBlue, it's going to become more centralized platform, open parenthesis, 2 years ago, we were talking about having a centralized logistics supply chain platform, right? And we were talking about the potential and the need to have that. Well, in 2 years, that platform has revenues about [ EUR 1 billion ], a 6% margin. It's unlimited potential. So I close for emphasis, getting back to ACS. The same thing happened with this and we [indiscernible], Rio Tinto is all over the world, and he's asking [indiscernible] to follow them. So is Glencore, BHP, FMG, right? In the same way that certain clients are asking Turner to go out. Some of our clients are asking Thiess and Sedgman to go up. So those firms are integrated solutions because they share risk profiles of contract. They share engineering, complex projects, they share a lot of those common features. So the only one that we see out is CPB, and we will adjust and we will be able, when it comes to valuation. The other part of your question was from a [ easy ] perspective. We are making a huge effort to diversify Sedgman and Thiess out of coal. As I said, Sedgman is almost there, right? Because their engineering projects have a life span of 1 to 2 years. So basically, it's very easy. And through all the acquisitions of [indiscernible] and Prudential's almost done. In the case of [indiscernible], it's more complex because it's huge, right? But when you look at where it used to be in [ thermal coal ] 4 years ago and where it is right now in the 30-something percent is quite remarkable. And at the same time, we are transitioning all the fleet to go from diesel to [ the ] fuel, and that overhaul is happening in Indonesia with a special hub that was established by Thiess. And on top of that, we jump into the rehabilitation of mine. So I want to believe that by '26, '27, '28, as Michael was explaining, it will be the most sustainable and friendly miner in the world. And we believe that we can achieve that.

If I may add something, Nicolas, maybe on the practicalities of the financial reporting, Obviously, that's a situation. You always have to find a bit of a balance between management and pure description of the activity and CIMIC is a diversified platform in itself, as was explained during the presentation. The important point for you is you're going to get reporting quarterly from CIMIC with breakdown of the different activities in a similar format. So you will be able to identify the E&C business from CPB in terms of financial KPIs. We are going to report, as I said, fair value and book value of the investments from Pacific, for example, within the Infrastructure segment as well, not from P&L, et cetera, but from an investment perspective. So we thought of those mitigants to go a step further to simplify the understanding of the group.

And furthermore, when [ Luis ] was asking who are the competitors of Turner, and I was going through all them. those competitors have a big component of civil as well. I mean the fact that your integrated solutions, that doesn't mean that you don't have a component of civil. It's more about the percentages of each one of the segments in your overall backlog but anyway, that's also.

Just in terms of, again, market perception, you just said in 10x [ EBIT ] business is to Thiess which -- where peers are valued at 4. I mean it's very simplistic and again, we are obviously in the fine world. But you're adding great businesses, my personal opinion, decent value margin expansion, DC EV battery to the old world. And again, Australian peers trade on 4x EBIT, but that's -- we leave it there.

Let me make a comment before you'll leave it there. You're right. We are in our valuation, we are not putting CIMIC at the multiply of Turner because exactly what you're saying. So it's not that we are closing our eyes to that. I mean we're not evaluating CIMIC as if it was 100% multiplier of Turner. We're just going through, what evaluation of Thiess, separate from CPV, separate from UGL, et cetera, and putting all the discounting the plus headquarters and [indiscernible] with a valuation following what you're saying.

If I may, last question on Turner. I think we talked with one a few times on one of the key peers. So [ Excite ], the German private company, which does more fabs, so semis. These guys do 6%, 7% EBIT margin. They do so because they're more integrated, they've gone up the value chain. Do you need a Turner to do more M&A, maybe especially in Europe, to go up the value chain, be much more integrated. That's the main question. And the last one, we talked distribution data centers. The other parts of the businesses for 12, 18 months have racked up fewer orders. Think about EV batteries, you don't win an order every year. Biopharma, when can we expect these parts of the businesses also to join and say, the GC revolution?

So starting with the first one. We don't need an external company to bring Turner into Europe. Turner has solid capabilities in data centers, has capabilities in battery fabs, so in semiconductors, biopharma, et cetera. And in fact, I mean, in all the categories that I just mentioned, if it's not #1, it's 2 or 3 in the U.S. However, if we want to accelerate the presence of Turner Europe, it's convenient to do on money. So we are analyzing M&A seriously in Europe to accelerate the presence of Turner in Europe. When we analyze M&A, we did a couple of things. The first one is the making like capabilities on the ground. So that's the one that you fully accelerate by going through M&A. And the other one is we'll continue doing bolt-on acquisitions when it comes to engineering. What's the latest because it's very difficult to generate good engineering ideas organically. We do, but it's better to grow that. And on the second question, I'm not sure if I understood the question because when I mean, battery fabs, biopharma, semiconductors, all of that already ported portfolio of Turner. We will see much more growth in the future on those ones. Data centers is going like this, but the rest of the segments will continue growing significantly, Peter, I'm not sure you?

No question about it. I think that, again, the race to AI, the race to sustain our planet through -- in the United States, we're going through a modern-day industrial revolution, and the factories that are being built in the United States today are for sustainable technology and advanced technology is quite extensive, and we believe that, that market is going to stay for the foreseeable future, even in an election year, we believe it's going to stay.

This is Fernando Lafuente from Alantra. Thank you so much for the presentation. Three quick questions for me, please. The first one is on cost cutting. You've talked about the margin of each of the divisions. And does this new integrated way of looking at the group bring some cost cutting? And if so, can you quantify it in this growth that you are targeting for 2026? The second one is on the dividend. If I understood you correctly [ Milo ] the underlying, let's say, guidance on dividends, although on a cumulative basis, it's going from the EUR 2 that you paid last year, up whatever. So my question is if there is any kind of strategy in terms of dividends or policy behind in terms of payout or annual growth kind of to extend that going forward. And the third one is on Turner. I really appreciate all the information that you have given us. And my question is, what are the barriers of entry for the same as you are coming to Europe, and it seems that it's going to be easy for you. But what are the key points for you to come to Europe and being so easy and the misunderstand me [indiscernible]? And what are the barriers of entry for any guy that wants to go to the U.S.?

Yes. So the -- as I explained in terms of the dividend policy, we are -- we've got a target to increase the dividend per share through the period. Obviously, there is -- when you look at the target we've put in terms of [indiscernible] you see it's an [ 851 ] billion for 2026. There's obviously a lot of growth coming through the period in terms of revenue growth, in terms of profitability, cash generation, et cetera. So it's a wide range in terms of setting up a specific policy right now on how that's going to bode over time. But it's certainly a strong commitment to increase that over time and keep an attractive payout ratio through the period.

And to add to that, I mean, it's a balance, right? We are always talking about yield growth, deal growth. And from our perspective, from a management perspective, our obligation is to find that right balance, okay? If we were to cut dividends, probably wouldn't be here right now, but we will create numerous opportunities to grow, but vice versa. So it's very important to keep that. The good thing is that we have that balance, right? It's very difficult to find -- most of the big companies with huge growth potential have no yields and vice versa, the ones with high yields have not growth, right? So we have a very good balance. And when it comes to the synergies, we are not including synergies when it comes or big synergies when it comes to cost, et cetera. Do we have those? Yes, of course, right? Do we -- are we a [ worry ]? Are we going to expect synergies? And reduction in cost in the near future? Yes. But I mean, obviously, those operational efficiencies are always very sensitive. And regarding Turner, you want to?

I would say that we're in a very lucky position because 3 of the hyperscalers have asked us to go to Europe. Iridium has asked us to go to Europe. So we are teaming up with Dragados and teaming up with, [ HOCHTIEF ] building, and we want to take them as a true opportunity. And we believe that those opportunities are going to continue wherever there's a pad and there's power for data center. I know that at CIMIC late in Asia. The 2 hyperscalers are going directly to late in Asia, and they know they're from an ACS global company. So it's becoming a great opportunity, and it's been good by the -- it's been very, very helpful. Having the hyperscalers know that we're 1 company, they may have different names subsets, but it's all part of 1 company. And I think that's where the opportunities are going to lie. I hope that answers that last question.

[ Mark line ] from Barclays. The first question is on capital allocation. So basically, you are estimating potentially divestment up to 3 billion, which might be invested in M&A. But let's say, in the worst-case scenario where you are not able to [ disinvest ], that's where you happy to take on board more debt and still carry on with your M&A opportunities or basically all the M&A acquisitions are not on the table anymore? This is the first question. And the second question is on Abertis. We appreciate the slides and the numbers that make, our analysis, let's say, be easier. But to what extent do you think you have been conservative in estimating those numbers? And what leaves you comfortable with those estimates going forward?

I start with the first one, you're right. We haven't included in our analysis, raising debt for the opportunities. But we do have, in that sense, a lot of firepower, right? We are currently at $400 million net cash position. This is not going to impact in that sense because, I mean, from an adjusted perspective, A lot of that has been taken into account. So when you take into account just the 1 billion per year, 500 million less cash flow and the increase that we're going to have from '24, '26. We do have operational firepower plus if we don't include the noncore assets, additional debt. So we would -- we're not going to give up on opportunities because of lack of noncore divestments, which is your question. And on Abertis, Pepe, do you want to answer the question? So the question on Abertis, if I understood correctly, was how conservative we've been how conservative we have been on the fires of Abertis. And before [ Pepe ] answers, on purpose, we didn't include extensions. On purpose, we didn't include M&A, which is the only thing that could have made us more or less aggressive or conservative.

No, I think it's realistic. There isn't any aggressive assumptions on that. It's based in the track record in the performance linked to traffic and toll rates. And a part of that, there is no extension. There is no M&A included, is very, very realistic, I say.

And the 1 thing that potentially could have been conservative and please [ Pepe ] and Martin confirmed is what Martin was explaining about being very simplistic and putting the [ prepare duty ] until 2038 because certainly, with refinancing, we would be able to start increasing the dividends before. That's the part we've been conservative.

[ Victor ] from [indiscernible]. I have only one question. What is the major risk that you see for your plan going forward?

What's a major risk we see for the plan. I'm not seeing any at this stage. I mean -- and this is what I was saying before, because that question came 2 years ago, right? I mean -- and there were a lot of assumptions and how we go from seeing building contractor into where we are today. And that was a difficult question back in 2022. But I mean, right now, it's rock solid. I mean, if we don't, what's the worst thing that can happen? Now we don't win some of the projects we have identified on the infra space will win others, that we don't manage some of the extensions with abilities are not included in the plan that we don't do M&A. We're not included in the plan. The world stops the artificial intelligence race, I struggle to see that, that the energy transition is going to put a break. I don't see that, and we are pretty much in our plan is the 1 in Australia. We're not including anything out of Australia. So it's a safe bet when it comes to renewables. I don't see anything. We're very much aware of E&C nowadays. We are very much aware of what's the potential unwinding that I explained before, '24 '25. Is there's any issue we have the right provisions and the potential cash has been taken into account in our figures. We're very comfortable with what we have explained.

Yes. A quick one. Outside of Turner, where do you see the biggest opportunity for margin expansion in the businesses? Because we have derisking Dragados still derisking at CPB. So could we see -- I mean biggest progress potentially at [ atar ] from a low base for the progress on UGL? Just to help us understand whether we have a bit of buffer versus top line-driven growth and a bit of buffer on the margin side?

I would say I believe that the SourceBlue component for all of the advanced technology world, of both data centers and EV batteries, which is really taking off. We're in basically our infancy, but we really believe that SourceBlue is going to generate at that 8% -- 6% to 8% margin on top of the revenues that we currently have now is going to be a big differentiator for us, number one. Number two, it's going to help us grow our margin, including the self-perform. But I think that we have over 300 people in the SourceBlue operation today, it's 20 years old, and they're fully directed to help support the advanced technology sectors in the company. So I really believe that SourceBlue is going to be very, very vital to the margin growth that we see when we're at 3.5% in 2026.

But [indiscernible] -- so I think on the slide, was expected to grow 15% CAGR for EUR 1 billion. I mean even on 68% margin is we're talking relatively small numbers. Is this scalable to EUR 2 billion, EUR 3 billion procurement entity as you scale up in DCs? I mean, is there a step change really to take this into a totally different scale?

Yes. I think it's unlimited. And that's just the Turner portfolio, the other portfolios that we will be working with is all of the Australian companies, CIMIC, Sedgman, Leighton holdings and all of those companies were also wherever they are going to be, whether it's in the advanced technology business or the building business we are going to expand our services into CIMIC and have that opportunity also. That's not in our plan today.

Okay. And Flatiron and Dragados, any hope?

Well the whole idea is to joint venture more with Flatiron and Dragados wherever we can. And we have a very, very good, clean joint venture that we're building, as you saw before, $2.8 billion airport in San Diego. So when we recently met when Javier and [indiscernible] met with the CEO, and I met with the CEO at different time, they look outside, they see 1 building. They see 1 build, they see a terminal, and they see all the civil work. They see 1 company. And this has been the sweet spot for us. So we're thinking about how do we take it and find other opportunities in other parts of the country where we are, where maybe Dragados is or Flatiron, but how can we do that together. So that's going to be a very, very big opportunity for us. and it's been quite successful. The margins on the San Diego Airport because of the Flatiron joint venture are much higher than we've seen in the past.

And one thing in that sense, you would be very pleasantly surprised to see the contribution of EMC in the future to the business. Not that we are increasing the margins. The margins have always been in theory, very good in EMC, but one project going wrong pretty much would tweak the rest of the jobs. That's the problem with [ NS ]. But the margins are super healthy. By the risk in the backlog, we are going to see a very powerful EMC, not far away from now. and the contribution to the business plan is important. So we're very comfortable with that. And going back to Turner, I mean, Source Blue is the 1 that can grow significantly in revenues. But certainly, all these sectors that -- I mean, semiconductor is an example, a lot of the I mean a lot of the advanced technology projects to continue increasing margins. So I mean, I think that we have a healthy plan.

Last one on Turner, how much cash do you need to operate? Do you really need to sit on EUR 2 billion of cash, net cash right now? Can you operate on less? Or do you need that cash for bonding for guarantees and so on to keep feeding the business?

I mean from a cash flow perspective, as a policy and [indiscernible]. We really want every business to be autonomous, right? For [indiscernible], we try not to support our business's cash flows, right? Because that creates a DNA and mentality when it comes to liquidity when it comes to doing business, right? So there is a big part of that. that leaves that cash into Turner, right? So there's a big pause.

$2 billion net cash to $20 billion revenue? That's the real [indiscernible].

The point is if we have strong operating units in the different markets and strong stand-alone, they're in a better position to access capital markets like the case of CIMIC, for example, or face the clients with a strong balance sheet, which is a competitive advantage and isolates the risk in the different parts of the business to make them accountable for the risk they take on board. So that's as a general principle across the group, which ends up in high cash-generating businesses, keeping some cash like in this particular case of thermal, but that's the general principle.

And in the same line, Imagine that we were starting to get all the cars from the different companies. Automatically, ACS we will need to start getting guarantees everywhere for the projects. Even you believe an alliance or a [ cost plus ] the clients are going to compare that Turner or that UGL with a competition. If you are competing with [ AECOM ] and they see the balance sheet, right, 2 options. One, giving guarantees above, 2 you're too small to compete. Yes, but it's not risk, it's cost plus. It doesn't matter. I want to make sure that I'm dealing with a strong company, right? So we want to make sure that every company and Turner has the balance sheet to compete with the big firms in the U.S. It's a different dimension. Turner, if we take that cash, we move our way, we bring to euro, won't be the same, won't be as successful. Okay. If there's no further questions. Thank you so much, everyone, for being here. Of course, you can always follow up with any Q&A, and we will be obviously reporting very soon on our AGM. We will be reporting our Q1, and we will be able to address any further questions or comment, but for now, thank you so much. Hopefully, you found it productive. And I look forward to seeing you more of you.