Allfunds Group plc (ALLFG) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the Annual General Meeting of Allfunds Group plc. As the time is now 12:00, and as we have a quorum of members present, I would like to call the meeting to order. I declare the Annual General Meeting to be open. My name is David Bennett. I'm Chair of the Board of Directors and will serve as Chair of today's meeting. Please allow me to introduce my colleagues, Juan Alcaraz, Executive Director and CEO; Lisa Dolly, Independent Director, Board, Vice Chair and Chair of the Remuneration Appointments and Governance Committee; and on my extreme left, David Perez Renovales, Independent Director and Chair of the Risk and Audit Committee. Other Board members are also attending the AGM are Zita Saurel, Ursula Schliessler and Delfin Rueda. I would also like to introduce Mr. Jonathan Batang from EY, the company's auditor. And finally, but by no means last, I introduce Marta Oñoro, our General Counsel and Company Secretary. She's going to assist me in the conduct of this AGM.

Thank you, David. Good morning to everyone. Pursuant to Dutch law requirements, let me start by stating that there are 493,491,669 shares and votes present at the meeting either in person or by proxy. Let me give you an outline of this Annual General Meeting agenda. First, our CEO, Juan Alcaraz, will provide a brief overview of the group's performance in 2024 and the strategic highlights during the year as well as a brief outlook for 2025. Then the Board Chair, David, will comment on the main highlights of our corporate governance in 2024. And we'll then move on to take any questions from shareholders before proceeding to uphold the resolutions. So I will now give the floor to the CEO for his review.

Thank you very much, Marta. Good morning, shareholders and guests, and thanks for joining us at our Annual General Meeting. It has become a cliche to describe market conditions as unprecedented, but 2024 and the first months of 2025, have again demonstrated that long-held market thesis can be a turnover night. With our clients' focus on navigating these market changes, our position as an essential part of the funds ecosystem has never been more important. 2024 was an extraordinary year for Allfunds. The steps we have taken to diversify our business across regions, asset classes and distributor types have proved to be a strong strategic decision. And we are delighted to announce record AuA, record revenues and record profits, whilst our performance [Audio Gap] than ever before to deliver sustainable growth across the market cycle, supported by the structural trend towards outsourcing and the increase in open architecture penetration in Europe. Let me give you an overview of 2024 performance, the resilience of our model and our relentless commitment to innovation drove strong structural growth across the entire business. With all revenue lines growing at double-digit rates. Allfunds delivered record net revenues of EUR 632 million, a 16% increase compared to 2023. The excellent top line performance alongside our robust control of operating leverage drove a record adjusted EBITDA of EUR 422 million, an increase of 18% year-on-year an adjusted net profit figure of EUR 253 million, an increase by 16% year-on-year. This record performance enabled us to deliver an increased dividend of EUR 80 million increasing the payout ratio to 32%, as well as announced the share buyback being voted on today as part of our commitment to total shareholder return. Our growth has been driven by 3 main pillars: one, our expansion into key markets, including Central and Northern Europe, Asia and the Americas; second, the retention of key clients in our core markets, along with sustained market share; and third, our commitment to innovation and creating new value solutions for our clients, aligned to market trends that deepen client relationships and are cementing Allfunds position as an essential part of the ecosystem. Our AuA grew 17% faster than the cross-border mutual fund market, demonstrating our ability to expand our relationships with existing and new clients as we meet their evolving needs. AuA excluding discontinued operations, reached EUR 1.503 billion, up 17% with platform service surging 20% versus 2023. Our net flow picture reflects this and has driven our improved market share. The unprecedented levels of migration onto the Allfunds platform from legacy infrastructure providers and other competitors, leaves me very excited about the year ahead. Our digital ecosystem is supported by best-in-class proprietary technology and represents the future of Allfunds. Our subscription-based business is demonstrating its growing importance of our business, delivering a 13% increase compared to 2023 and representing 11% of total revenues by the end 2024. Allfunds alternative solutions. Our proprietary platform to access private markets has grown its AuA to EUR 19.4 billion, with EUR 10.1 billion in distribution, growing at an impressive 81%. Let me jump into the overview of 2024 strategic highlights. Last year was not just an extraordinary year, thanks to our record financial performance. It was also a period of very significant strategic progress. We are making excellent progress towards our 3-in-1 platform positioning, covering long-only alternatives and very soon, ETFs. This position has meant we are well positioned to capture changes in market dynamics, such as the high demand for alternatives [indiscernible] in the last 18 months. Our alternative business has surged to EUR 19 billion in AuA, solidifying Allfunds as the premier platform in Europe for facilitating investor access to private market funds. The work we have done internally to drive a more holistic approach to sales and client service means we are increasingly well positioned to offer our clients a full shoot of services driving growth and supporting the creation of deeper, stickier client relationships. With our announcement last year on the inclusion of ETFs on our platform, we are the only 3-in-one platform, giving client access to not only ETPs but also mutual funds and alternatives, Allfunds one-stop shop for fund distribution supported by additional value-added services. Our subscription business is also a great example of this. It is increasingly becoming a meaningful revenue driver, thanks to our new integrated sales approach, which has successfully -- successful in driving strong client acquisitions in 2024. Revenues grew at 13% year-on-year to EUR 67 million and represents 11% of total revenues. This is highly encouraging as we build the value proposition and monetization of Allfunds Digital and value-added services. In 2024, we also launched significant products and services, such as the Allfunds Navigator, which combines advanced AI and machine learning to provide comprehensive market insights, ANA, an intelligent assistant for efficient fund navigation and the sustainability Navigator to stream sustainable investment portfolio construction. Looking ahead, we have an extended pipeline of solutions and products to meet the ever-evolving needs of our clients. Continue to take market share and drive sustainable growth. This includes the launch of Nextportfolio4 earlier this year. This enhanced version builds on the modular and flexible nature of the tool while leveraging data-driven analysis together with the power of AI to offer time line and personalized insights in model portfolios. Let me jump into the outlook for 2025 and conclusion. This leaves me very excited for what is to come in 2025, this year. Last week, we released our Q1 2025 trading update, which, in my view, reflects our strong relative position in the current market context. A testament of this is the fact that total assets under administration grew 13.2% year-on-year to EUR 1.517 trillion, supporting our progress in taking market share. We delivered strong net flows of EUR 34.6 billion in Q1 2025, making a fivefold year-on-year growth. We have continued onboarding more fund houses and distributors and total net revenue reached EUR 162.6 million, a 10.3% increase year-on-year. We are delivering sustained growth with a stronger performance than in previous quarters, providing a solid foundation for the quarters to come and proving the resilience of our business model. We are navigating the current environment with measured optimism and remain well positioned to continue working on delivering on our 2025 full year targets. Our pipeline of new clients remains strong with EUR 250 billion for the next 24 months. And overall, the team is already moving at pace to execute against our 2025 strategic priorities as we build a 3-in-1 platform of choice for the industry. Finally, I look forward to seeing many of you at our Capital Markets Day later this year, the first since our IPO. We will be sharing deep dives on key aspects of the business, and we'll be providing an overview of the launch of the ETP platform. We are excited about the future and confident that our strategic initiatives will deliver value for all of you. For all our shareholders, I'd like to express deep gratitude for the continued support and trust from you, our shareholders. Thank you for your continued commitment to Allfunds. And I will now hand it over to our Chair. David?

Thank you, Juan. In my capacity as Chair of the Board, I'd like to provide an overview of our key corporate governance highlights over the past year, demonstrating how our Board of Directors and its committees continue to promote and support the group's long-term success. In 2024, the Board focused closely on oversight of compliance with the Dutch Corporate Governance Code, Board succession planning and monitoring progress against our ESG strategic plan from 2024 to 2026, in addition to carrying out other important corp governance responsibilities. Corporate governance remains a priority for Allfunds. We firmly believe that compliance with a recognized governance code enhances stakeholder confidence in the sound and responsible management of the company as well as its broader responsibilities to society. From a corporate governance perspective, 2023 was marked by the adaptation of our governance framework to the revised Dutch Corporate Governance Code, which we have voluntarily applied since our IPO as Allfunds shares are listed on the Euronext Amsterdam. In 2024, we maintained our excellent level of compliance with the codes, principles and recommendations as outlined in our 2024 corporate governance report. The Board places great importance on refreshment and succession planning to ensure continuity, stability and appropriate composition. As you know, most of the company's current Board members were appointed at the time of the IPO in 2021. Given the 4-year term of their appointment, most would be required to retire at the 2025 AGM in accordance with our Articles of Association. To ensure continuity and avoid the simultaneous retirement of all directors appointed in 2021, the Board launched a refreshment plan in 2024. As a result, Andrea Valier, Sofia Mendes, David Perez Renovales, and Axel Joly retired and were reelected by shareholders at the 2024 AGM. Continuing with the execution of this plan, my fellow board members, Juan Alcaraz, Lisa Dolly, JP Rangaswami, Delfín Rueda, Johannes Korp and Zita Saurel are retiring today, and their reelection is being submitted for shareholder approval at today's AGM. Additionally, Ursula Schliessler and Blake Kleinman are also retiring but are not standing for reelection. I'd like to express my sincere thanks to both of them for their dedication and significant contributions to the Board over the past years. To fill their vacancies, we are proposing the appointment of Marina Bellini and Hunter Philbrick, both of whom bring valuable skills and experience that will enhance the composition of our Board. Marina brings to the Board exceptional expertise in technology and digital transformation, having held top executive roles in technology, digital and information functions. She also has experience in financial services. Hunter further strengthens the Board's digital and technology capabilities due to his extensive experience in the software and technology sector. His international experience with privately held companies brings valuable strategic insight, high-level management and governance expertise. I'm very grateful to all Board members for their contribution over the past year and look forward to receiving shareholder support for the election and reelection proposals. Finally, I'd like to highlight the strong progress made in implementing our ESG strategic plan from 2024 to 2026. Over the past year, the Board has closely monitored our initiatives among the key milestones. We published our first voluntary TCFD report, achieving 92% renewable electricity usage and aligned our carbon footprint with the Paris agreement. We expanded our environmental audits and enhance both the number and quality of training programs. We improved gender diversity in senior management roles. We adapted our sustainability report to CSRD legislation enhanced ESG criteria for suppliers and improved our ESG rating scores in 2024 from key rating agencies. You can find further details in our strategic report and 2024 sustainability report, both available on our corporate website. So in conclusion, we believe that effective governance and rigorous oversight are essential to the successful development and execution of our strategy. Looking ahead, the Board will continue to ensure that we maintain a robust governance framework. Right. Before we proceed to vote on the resolutions, all shareholders now have the opportunity to ask questions regarding the CEO's or my own presentation. Please note that only shareholders and their duly authorized representatives are entitled to speak.

If you wish to ask a question, please indicate this by raising your hand and attendant will take your name and if appropriate, the shareholder you represent verify your entitlement to speak and introduce yourself to the meeting before you ask a question. Shareholders' questions will be answered after all shareholders have spoken. So are there any questions, Mr. [ Berg ].

Good afternoon, Mr. Chairman. I'm privileged to be here today to -- at the -- I think, for me, it's the second time to be present. I first would like to congratulate Allfunds and all its members for the great performance we've seen both in '24 and the first quarter of '25 as well. I have a small number of questions. First, I would like to go to Page#26 of the annual report, which phrases Juan's vision on what happened about the share buyback program. He says, "Additionally, the EUR 100 million share buyback program to repurchase ordinary shares was completed last September. This investment in the company's own shares demonstrates a commitment to delivering exceptional value to shareholders and aligns with the capital allocation framework established during the IPO." While the share price has decreased by 19.3% this year, ending at EUR 5.04 it presents a unique opportunity for investors to capitalize on Allfunds strong fundamentals and future growth potential. This temporary dip in share price does not reflect the underlying strength and resilience of our business. Instead, it underscores the market's cyclical nature and provides a compelling entry point for those looking to invest in a company with a proven track record of innovation, robust cash flow generation and strategic growth initiatives. As we continue to execute our business strategy and expand our offerings, we are confident that the market will recognize the true value of Allfunds leading to significant potential gains for our shareholders. Now as we are here today, we can distinguish 3 steps from the IPO in April 7th of April at EUR 11.50 from the bids by Euronext, EUR 8.75, February '23 to today's share price of EUR 5. It is a dissimilar performance from the great performance. Allfunds has so far realized and as Juan pointed out rightly, there's a great future ahead of us. Now I'm pleased to learn that there will be a Capital Markets Day probably early October, which I think will coincide with the launch of the ETP platform. And that's, well, offers a great prospect of accelerating the business case of Allfunds. Now my first question would be, originally, and the first time I learned about the ETP inclusion was during the first half report of last year. And Juan said rightly there, this is the future of mutual fund distribution, a revolutionary solution what will merge the best of the 3 distinct distribution platforms into a single powerful ecosystem to be launched at that time, the first quarter of '25. Now this will take probably half a year or so longer. Now my question will be, what are the investments extra needed probably in personnel, in equipment? What are your -- you can probably explain a bit more about the level we are today. And if there are early adapters visible, for instance, to give us a view of what was going on there. My second question will be about the loss of the Credit Suisse accounts, which is somewhat sort of overhang over the share price because investors are puzzled about the impact and probably also of other parts of the business that may change hands. In that respect, I was pleased to learn that the 2 great new contracts that were recently gained for another 5 years at EUR 60 million price, which is a good sign, of course. So then finally, my third question at this stage would be -- which is another key performance indicator, the subscription business, which is growing at a double-digit level, which is great and tells me about the success, obviously. What are your projections going forward, bearing in mind that both the great alternatives business, which is really at the top of mind of many distributors and fund houses together with the ETP platform business may catapult your business going forward? And maybe you can elaborate on that one as well because it's vital to investors confidence to regain interest in the All Shares performance forecast. Now Mr. Chairman, to finalize this -- end of the business. I would love to have a discussion on your SBB proposal of EUR 250 million. And I think it's best if I read the agenda well. To do that at agenda point 17, am I right? Is that a proper moment to do so?

We'll get to the resolution. Yes. I think probably we should have it now actually.

Because it's -- 2 years ago, we did a EUR 50 million share buyback in 2 years. At the time of the -- when you proposed that, it was mentioned to do it in a split way. The new proposed share buyback is EUR 250 million up until the end of next year. At the end, my question is this, would there be a scenario by which the EUR 250 million will be executed at an earlier date than the end of. And that brings me to the well, probably the final question about the capital allocation framework, which is today is vital because of the divergence between the share price performance on the one hand and the great performance of the company. On the other hand. In my opinion, it's offers like Juan said himself. In his own words, it's a unique opportunity. Now my question will be the following. There may be a scenario in this uncertain time with the Trump administration doing all odd things that may lead to a crisis in confidence. And as we all know, a crisis of confidence may lead to a sharp stock market correction. And I mean by that, a correction like we've seen in October '87 or more recently, the Lehman failure in 2008 and '09, which means a correction of 30% to 35%. If such a scenario would apply, say, for instance, for the next 6 months, what would be the reaction by your Management Board because to stress that item as well. Allfunds today is in an excellent position with a very strong balance sheet, CET ratio over 30%. And a leverage ratio of 0.2, I think. And that would create a great opportunity to buy more shares today as we are here today, the EUR 250 million share buyback program translates into an 8% share buyback potential from today's EUR 3 billion market value. So that gives you a view of what may be possible. But a 30% correction would even more greater. So my question will be, what do you think of a correction? And what will be your reaction as a Board because -- since this is a unique opportunity, in my view, one can come up with the idea to do a stronger proposition. And I mean by that, the company could consider issuing a convertible bond probably in the next 6 months prior to the Capital Markets Day, for instance, by issuing a EUR 250 million convertible bond with a EUR 2.25 coupon with a duration of 8 year with an exercise price premium of 40% used to buy additional shares. That will be a great opportunity to accelerate your visible companies value because the dividend yields on your shares given the fact that I expect like we all do, that Allfunds will continue to perform in line with the track record of previous years that your dividend yield will be substantially higher than the charges you will have to pay for the coupon on your convertible bond. So that's a suggestion from your private shareholder. And please take that into consideration. Thank you very much.

Thank you very much, Mr. [ Berg ] and thank you very much for coming. It's great to see you again. And also, thank you for your comments at the start of your remark. In terms of questions, I'm going to turn to -- I mean, there's 5 points here. There's the ETP launch, what's the extra investment needed, the loss that is overhang, the subscription business, the share buyback and the capital allocation framework and how we would react to a sort of downturn. I'm going to hand over to Juan actually to start off, and we may welcome to Alvaro a bit later on the share buyback back. But Juan...

Thank you, Chairman. And again, thank you very much for coming today. Very good questions, by the way. Regarding ETP, the ETP platform. We are just 6 months remaining for us to launch the platform. So this means that the majority of the investment in technology has already been deployed, okay? So you can see it in the current number of Allfunds, first. Second, when we talk about not the IT investment to enhance the platform. But when we talk about the people, the talent that we have attracted from the market to create this new business line I think that at least 80% of that team is already in the numbers that you see, okay? As you can [indiscernible] well, we needed new people new talent in order to launch this new asset class in the platform. So you can also see those numbers include in Q1, 2025, for instance. So -- having said this, once we launch the new platform in Q4. And once we start promoting it across our different distributors, we will really realize whether the investment has been the appropriate one in order to have a really competitive product and value proposition or whether we need to do more. I'm really confident that all the -- a big part of the investment in technology and people has already been done or is going to be done during 2025, okay? But again, 2026 is going to be the year where we will really see what we have done. It's really a unique value proposition and revolutionary, as you mentioned, revolutionary new platform or not, we will see, okay. Regarding credit, well, I think you also mentioned alternative on the alternative space. You know that we decided to open this business line a couple of years ago, again, it was all about feedback now coming from distributors and fund houses about the opportunity outside the U.S., this specific asset class. And that's what we always do at Allfunds is to be very close to our clients, understand their pain points and come back with solutions. So that is exactly what we did. As you see today, the growth is very, very strong. And here, well, I think we need to I mean I cannot give you guidance. But what I can tell you is that, I mean, has been the first movers into this space, and thanks to the fact that we are already connected to hundreds of distributors all around the world, more than 65 countries, as you know. In the moment, not that there is appetite for any of the distributors towards one of these products, well what they can count on Allfunds and it's exactly what is happening. So I'm very, very excited with the private markets initiative that we launched 18 months ago, 2 years ago. And that's exactly what we want to replicate with ETPs. Okay. So regarding Credit Suisse, yes, you are right. I think Credit Suisse topic was a headwind in our conversations with investors in the last couple of years since Credit Suisse was absorbed by UBS. I think this is one of these headwinds that has been -- has disappeared. I think we said it was contributing around EUR 20 million on a yearly basis. Well, the company makes more than EUR 600 million of revenues. So I think that the impact of that loss is not really relevant. And I think it's good to have taken off the table, the discussions about Credit Suisse. Yes, Credit Suisse. So we are pretty happy enough to present our numbers without this, let's call it, I don't know, uncertainty. I think you also mentioned Santander and Intesa agreements. That was also not for the management, but I understand for some investors, it was a potential headwind and the expiration of these contracts. Bear in mind that we have been working with these 2 fantastic banks -- well, in the case of Santander since the '90s, okay, even before the company of Allfunds was created. And in the case of Intesa, I think since 20 -- sorry, since 2003. So also more than 20 years, they are more than clients for us. They've always count on Allfunds and we have extraordinary strategic partnership with them. However, for the market, this was an uncertainty and a potential risk of losing them. So we sat down with them and we enhance, let's call it, for the next years this strategic partnership. So this is all about, I think I have covered the product issues. Well, subscription you mentioned also this potential correction of the market in 30% or 40%. Yes, it can happen. Why not? Absolutely. In fact, well, we saw in 2022, the worst financial crisis where both fixed income equity went down the 2 digits drop -- and well, I think the company needs to keep on diversifying our revenue streams. I mean, to have all our revenues subject to a correlation, high correlation to market volatility. I think it's not intelligent. So that's why we consider so strategic subscription revenues. First, because these revenues are completely decorrelated from market volatility, which is always good. And second, and probably same level of importance because it's added value services that comes through subscription revenues makes our distributors and our fund houses, so our clients in the end, much more loyal, much more sticky clients because in some way, we give them better services and added value products, solutions, tools. So we make our value proposition much stronger compared to any competitor, thanks to the fact that we have this added value services. As I said a couple of years ago, I would love to see subscription revenues to represent much more than 11%. But the company revenues now coming from the traditional business, what they have grown extraordinary well. And even though we are growing double digit, not the subscription revenues, it is difficult to grow that 11% against the revenues linked to assets. But the goal of the company, again, is to keep on increasing the subscription revenues. It makes Allfunds more resilient and increases and enhances our value proposition. So we will keep on investing and improving these services. I think that the questions were more about the share buyback. Well, we have our CFO here also in the room with us. So probably Alvaro, you want to cover this part.

Yes. Thanks, Juan. Alvaro, do you want to cover off the question about the 2020 -- the current share buyback with what happened? Is there a chance it is completed before the end of '26 and then go on to capital allocation, yes.

Sure, sure. Thank you, David. Quick answer is yes. There is a chance that the buyback could be accelerated and not take the full 24 months, of course. Secondly, I also wanted to answer or comment on some of the references you made to the capital allocation and remind you that our capital allocation framework remains effective and that the Board, of course, and management remain laser-focused on value generation for our shareholders. We continue investing in the future of the company, as you've heard from Juan, and of course, in parallel, we do monitor the market and what is happening out there to address the best risk-adjusted returns for the company and for the shareholders. You mentioned our balance sheet, and you're absolutely right. We have a very low level of leverage. It is a very light balance sheet with a significant amount of cash. If you add to that the fact that the company generates a meaningful amount of capital and cash on a yearly basis. It brings us to the, I would say, perfect positioning where we could face future challenges. And finally, let me thank you for your suggestion on the potential uses of the capital. We'll definitely take it into consideration.

Thank you, Alvaro. And [ Mr. Berg. ] Thank you very much indeed for your questions. As Juan said, they are great questions, and it won't surprise you that all of those things you raise have been on the agenda for the Board over the last few months and year. And yes, as Alvaro says, we'll obviously think about the convertible. So thank you very much. Okay. I don't think there are any more questions. I can't see any. So we'd now like to proceed to the formal business of the Annual General Meeting set out in the resolutions contained in the notice.

At this point, I wish to advise you that all the directors believe that Resolutions 1 to 17 inclusive and Resolution 20, as set out in the AGM notice are in the best interest of the company and its shareholders as a whole. Accordingly, the Board unanimously recommends that the shareholders vote in favor of each of the referred resolutions. With respect to resolutions 18 and 19, the representatives on the Board of our significant shareholders, i.e., the BNP Paribas Group and of LHC3 Limited will not be making a recommendation to shareholders in relation to resolutions 18 and 19 since in order to avoid any potential conflicts of interest, they have not participated in the Board's discussion in relation to these resolutions. Nevertheless, the independent directors unanimously recommend that shareholders vote in favor of these resolutions. Marta?

Some information on voting procedures now. Copies of the notice of the AGM were sent to all shareholders and are available here today, unless anyone objects, we will take the notice as read. Resolutions 1 to 14 are proposed as ordinary resolutions, while -- then to pass an ordinary resolution, we require a simple majority of votes cast in favor. However, Resolutions 15 to 20 are proposed as to special resolutions and may only be passed with at least 3/4 of the votes cast in favor. The Articles of Association provide that a vote will be decided on a show of hands unless a poll is duly demanded and further allow the Chairman to demand the poll.

For ease of administration, I hereby demand voting by poll, the company secretary is assisting me with counting the votes.

Thank you, David. Every shareholder present in person or by proxy is entitled to 1 vote for every ordinary share of which he or she is a holder. If you would like to vote for or against resolutions or would like to abstain from voting, you must fill in the voting card accordingly.

Thanks, Marta. We now propose that each of the resolutions is put to the meeting. Shareholders attending the meeting have provided us with their voting cards at the beginning of the meeting. Their votes and the proxy instructions received ahead of the meeting have already been counted. The results are as follows.

For Resolution 1, to receive the annual accounts and reports for the year ended 31st December 2024. 99.99% of the votes cast are in favor of the resolution and 0.001% against it.

I declare the resolution is passed.

For Resolution 2, to Approve the Final dividend for the year ended 31st December 2024, 99.93% of the votes cast are in favor of the resolution and 0.07% against it.

I declare the resolution is passed.

For Resolution 3, to approve the Directors' Remuneration Report, excluding the Director's Remuneration Policy for the year ended 31st December 2024. 99.58% of the votes cast are in favor of the resolution and 0.42% against it.

I declare the resolution, which is advisory in nature, passed.

For Resolution 4, to re-elect Zita Saurel as Non-executive Director. 96.72% of the votes cast are in favor of the resolution and 3.28% against it.

I declare the resolution passed.

For Resolution 5, to re-elect Johannes Korp as Non-Executive Director. 90.29% of the votes cast are in favor of the resolution and 9.7% against it.

I declare the resolution passed.

For Resolution 6, to elect Hunter Philbrick as Non-Executive Director. 99.39% of the votes cast are in favor of the resolution and 0.6% against it.

I declare the resolution passed.

For Resolution 7, to re-elect Lisa Dolly as a Non-Executive Director. 96.32% of the votes cast are in favor of the resolution and 3.68% against it.

I declare the resolution passed.

For Resolution 8, to re-elect JP Rangaswami as Non-Executive Director. 98.9% of the votes cast in favor of the resolution and 1.09% against it.

I declare the resolution passed.

For Resolution 9, to re-elect Delfín Rueda as Non-Executive Director, 99.62% of the votes cast are in favor of the resolution and 0.38% against it.

I declare the resolution passed.

For Resolution 10, to re-elect Juan Alcaraz as an Executive Director. 99.5% of the votes cast are in favor of the resolution and 0.5% against it.

I declare the resolution passed.

For Resolution 11, to re-elect Marina as Non-Executive Director. 99.99% of the votes cast are in favor of the resolution and 0.01% against it.

I declare the resolution passed.

For Resolution 12, to appoint Ernst & Young LLP as auditor. 99.96% of the votes cast are in favor of the resolution and 0.04% against it.

I declare the resolution passed.

For Resolution 13, to authorize Directors to determine the auditor's remuneration. 99.96% of the votes cast are in favor of the resolution and 0.04% against it.

I declare the resolution passed.

For Resolution 14, the authority to allot shares pursuant to Section 551 of the U.K. Companies Act 2006 under the terms referred to in the 2025 AGM notice. 96.34% of the votes cast are in favor of the resolution and 3.66% against it.

I declare the resolution passed.

For Resolution 15, the authority to allot shares pursuant to Sections 570 and 573 of the U.K. Companies Act 2006 and to dis-apply pre-emptive rights under the terms referred to [indiscernible] in the 2025 AGM notice. 99.09% of the votes cast are in favor of the resolution and 0.9% against it.

I declare the resolution passed.

For Resolution 16, the additional authority to allot shares pursuant to Sections 570 and 573 of the U.K. Companies Act 2006 and to disapply pre-emptive rights under the terms referred to in the 2025 AGM notice. 96.29% of the votes cast are in favor of the resolution and 3.71% against it.

I declare the resolution passed.

For Resolution 17, approval of the terms of the ordinary buyback contracts for off-market purchases and the authority for the company to purchase own shares of the market. 99.99% of the votes cast are in favor of the resolution and 0.001% against it.

I declare the resolution passed.

For Resolution 18, approval of the terms of the BNPP buyback contract for off-market purchases and the authority for the company to purchase own shares of their market. 99.99% of the votes cast are in favor of the resolution and 0.001% against it.

I declare the resolution passed.

For Resolution 19, approval of the terms of the LHC3 buyback contract for off-market purchases and the authority for the company to purchase own shares of the market. 99.99% of the votes cast are in favor of the resolution and 0.002% against it.

I declare the resolution passed.

Finally, for Resolution 20, the authority to call general meetings accept AGMs on short notice. 95.74% of the votes cast are in favor of the resolution and 4.26% against it.

I declare the resolution passed. Thank you, Marta. Ladies and gentlemen, this concludes the formal business of the Annual General Meeting. I now declare the meeting closed, and thank you for your attendance and for your support. Thanks very much.