Global Dominion Access, S.A. ($DOM)

[Audio Gap] has declined compared to the same period of last year. And this is explained by a lower weight of the GDT project segment, which, as you know, it's the segment that has the largest margins. But on the other hand, the weight of a recurrent segment and its good margins means that this margin over sales spans over this level of 30%. And these are record figures in our business. And today, during the AGM, we have spoken about this, the fact that the simplification of the company means that we have lower levels of turnover and less margins, of course. But that's logical. But we are building a more profitable company. Our percentage over sales is much higher than what would have happened if we would have maintained these businesses. Amortizations maintain the levels reported in previous quarters. And it's relevant to point out that there has been a reduction of financial expenses that are still maintaining a downward trend. And in particular, these costs were reduced by nearly 27% year-on-year and now stand at EUR 8 million on the closing date of Q1 of 2026 vis-a-vis the EUR 11 million reported in the same period of the previous year. And with the reduction of the gross debt, we also have the positive contribution made by exchange rate differences. And this has produced a net attributable result of EUR 7 million, which is in line with the net result of the same period of the previous fiscal year, which shows that our performance is stable in this context. So now let's move on to the evolution of each one of the businesses. Let's kick off with the Global Dominion Environment with a turnover of nearly EUR 107 million in these first months of the year, and this represents an organic growth of 4.3%. And this is the segment that has the biggest currency impact because ForEx subtracts minus 5.3%, which explains the slight retrocession or regression of 1% we can observe at a global level. As regards profitability, the business is still gaining an operational efficiency and the contribution margin has reached EUR 50 million, which means that the margin over sales is 13.4%, an important figure -- a very important figure. That means that margins have expanded compared to Q1 of the previous year. And this improvement can be explained by the good behavior of the circular economy activities in this quarter, which are those that have larger or higher margins in these activities of Global Dominion Environment. And this segment is the only one that has direct operations in the Gulf area. And this is why -- well, we have mentioned the impacts that this could have. And in the last months, we saw a certain degree of affectation and we'll have to wait until -- to see what happens with the conflict. But in any case, the maximum volume that could be affected is something like EUR 4 million of EBITDA, bearing in mind that during most of this quarter, we have operated with normality. And we've already added up turnover and margins. Even so at a global level, the activity of the area in this quarter has been influenced by the consolidation of the circular economy activity. We've reached a high level of recurrence, both in Spain as well as abroad. And we've also maintained a solid impulse for decarbonization activities with awards related to energy efficiency services in America and Europe. Let's move on now to Global Dominion Tech-Energy, an area that addresses the energy and digital transitions, which is divided into GDT Services and GDE Projects. On the one hand, GDT Services closes the first 3 months of the year with a business figure of EUR 106 million, which means that there's been a growth in turnover of plus 17% compared to the same period of the previous year. And this is a segment that most has grown organically and its characteristic is recurrence, although this gives us lots of visibility in terms of future turnover. And it's in this segment where we have most of the recent divestments carried out. And especially done in order to carry out the transformation of the former activities of B2C and B2B, where we have divested in the virtual mobile operator and in the shop chain. We were operating with MasOrange. And this is why the relevant we've carried out -- the adjustment that is carriedout is very relevant to show a comparison of what this is all about. And on the other hand, the margin of contribution -- of contribution margin has also grown compared to the same period of the previous year, plus 8%, and reached a percentage over sales of 17.4%. The growth of GDT Services is supported mainly by the acceleration of the electrification process and smart grids with more multi-annual contracts of a recurrent character in Spain and Latin America. For instance, we have the renewal and extension of the contract with Enel in Colombia for 5 years, where we are now going to be covering a new urban area. And finally, GDT Projects will close Q1 with a business figure of EUR 29.3 million, which represents a slump in our turnover of minus 17% compared to the same period of the previous year, whilst the contribution margin is not affected. It stands at 21.5%. That means that we're not talking about an impairment of operations, but rather about a lower level of execution resulting from this global uncertainty. And although this has reduced the trust in this business and has made people cautious in terms of global investments, we have maintained the solidity of our portfolio with a backlog of EUR 308 million, which doesn't incorporate many new contracts, but it doesn't really include any project cancellations. At an aggregate level, GDT Projects accounts for 12% of our total sales and 60% of the contribution margin for the company in this first quarter. And finally, very quickly now, the possible balance sheet movements, although we have not presented the detailed balance sheet nor the position of the net financial debt. But in any case, it has to be pointed out that during this first quarter of 2026, there have been no red on operations that have impacted cash generation. There have been no expenditures associated with investments or funding or with extraordinary concepts like dividends. And in this quarter, we've only generated operating cash flow and -- well, we have the disbursements that have to do with some of the earn-outs that had been previously agreed to, which have reached a total of EUR 8 million. And after this review, I would like to thank you for your attention and move on now to the questions. So we are delighted to answer and clarify your doubts. Thank you very much.

[Operator Instructions] So firstly, we have a question from Luis Padron from GVC.

Hello, Luis. I think you are muted.

Can you hear me now? Can you hear me now? Wonderful. Cheers. I have several questions. Perhaps you can help me with them. Well, firstly, I would like to understand -- well, 2026 -- it's in 2026 when the '23-'26 strategic plan will finish. And in theory, at least as far as I know, 2025 was the year for simplification adjustments, et cetera. But what I can see is that in 2026, this simplification process is still up and running. So the idea would be to -- what kind of timing can be expected? So in other words, we have -- do we have several more simplification quarters ahead of us? Or are we closer to the end? So in other words, I'd like to know what the situation is going to be like from the point of view of this process. That's number one. And then number two, how would the evolution of EBITDA and cash flow coincide or tally with sales? Because, well, you've spoken about improved sales, but there are no references as far as I can see in terms of guidance or EBITDA or cash flow. And I think that this has not been reached. It has not been covered. And then I would like to know something else. Is there going to be a recovery in the area of projects? And finally, your divestments in assets, which is what you're currently working on. That's all for me.

Luis, I'll start off with the simplification thing. The simplification is one of the fundamental pillars of the strategic plan that runs from '23 to '26. So we can't really still expect there to be a simplification in 2026. And what does simplification mean? Well, it means that we have to restructure certain activities, and above all, we have to divest, which, in other words, divest in activities and infrastructures. And then your last question that had to do with infrastructures, well, this forms part of the simplification and it could happen in 2026. But in any case, when we're talking about adjustments in our financial statements in Q1 compared to the rest of the quarters in 2026, we're talking about the simplification processes that we carried out in 2025 and how they impact our figures. They have an impact. What we are trying to help you is to make a comparison, because if not, in this first quarter of 2026, there are a number of activities that are less numerous than we had last year because we have divested, and this is the reason. And as regards if we -- can we expect that during the year, in the next quarters, there will be inorganic adjustments. Yes. And in the rest of the quarters, there will be inorganic adjustments because some of the divestments did occur at the end of the year. For instance, France and the MasOrange shops, and this is going to be adjusted throughout the year. Although it is true that the biggest adjustment that we have in Q1 -- well, because the third divestment occurred in the first part of the year. So this adjustment of Q1 is the biggest that we'll be seeing in the 4 quarters of the year, but there will be more adjustments in the upcoming quarters. And then you were also asking about the recovery of the project segment. Well, the end of 2025 -- at the end of 2025, projects looked weak in Q3 and Q4, especially in 3. And this -- in Q1, there's been a slight recovery compared to the end of the year. But we don't think that with the current situation that this -- well, we think that the current level -- with the current scenario things will continue as they are. But if there's no changes and if the conflict in the Gulf stops, and if the problem disappears, that will obviously help us to help our customers to take decisions. And therefore, this means that the project could recover. But it's very difficult right now to know when or at what point in the year that could happen. And then the final project -- question, sorry, that has to do with divestments in assets. I suppose that you're referring to Cerritos. As we mentioned on previous occasions, the Cerrito farm in Mexico is now for sale. And in this process -- well, this is already underway. And in the sale process, what we have -- what we have been doing is we're looking for -- we want a PPA to be signed so that we can sell energy, which increases the value or, let's say, supports the value of that asset. And we believe that it's a fundamental element so that we can carry out this divestment in full.

Well, yes, you've spoken about the divestment of assets. And it's true that the CEO was talking about this, this morning. And then as regards the upcoming strategic plan, we were talking about businesses that we consider to have a high value and a high level of return. So that's why we're talking about bonus of 20%. And I think that all of the things that we have sold from the Dominican portfolio and Cerritos, which is wind power, we still have a couple of small assets. We have some biomass. And at the end of the day, all of that return is interesting, but it's at levels of 10% or 12%. And this could represent a cost opportunity in capital allocation. The simplification strategy is here to provide us with a starting point that would allow us to look towards the future with an ambition and also focus on businesses, as was mentioned this morning, in the world of grids, in the world of environmental things. And if there's any possibility of concluding in 2026 or finalizing this adaptation of assets and repatriate or bring this money back to strengthen our progress, so be it. But as regards to the recovery of projects, as Patricia pointed out, I think that behavior has to do with a bit of a trough in this quarter. But in any case, there are a number of countries like Chile or the Dominican Republic or Honduras and Nicaragua where there are a number of projects that are practically ready or nearly ready to go ahead. And perhaps -- well, we will be able to have a much more recurrent visibility in terms of the contribution margin. And I think that the CEO also mentioned this morning that in the end the guidance that you were asking us about should try to focus much more on these commitments to achieve an EBITDA after the simplification at those levels of EUR 150 million. But this part that has to do with projects is there. If it were a situation that -- as it unfolds, we will be able to crystallize things. So as Mikel pointed out this morning -- well, the only thing you can see if the guidance is talking about an EBITDA of EUR 150 million. What I meant to say -- or what I said this morning, of those EUR 150 million, EUR 125 million are recurrent. So the recurrent accounts of the company are practically insured. And we have EUR 25 million that depend on the project area, and this depends on how this macroeconomic situation evolves and the strategic issues. This is not going to affect the EUR 25 million, although we have seen these indications in Q1, although we all know that the situation will be solved. And one way or another, we will be able to carry out our projects.

Okay. We were just reading through one of the questions here we have on the chat. And it runs along the lines of the first question from Luis. And 2026, do you think that's going to be the year of normalization? Or do we have to wait until 2027 to see a more stable level of profit per share? And yes, what we are doing in this '23-'26 plan focused on transformation, we're transforming the company so it can become a solid company with a solid base so that we can move on to the '27-'29 plan that uses that base to grow. And it's 2027 when we should see things becoming a little bit more normal.

Okay. Well, now to continue with the people that have their hands raised, we're going to give the floor to Carlos Trevino from Banco Santander. Please switch on your mic, Carlos.

Can you hear me?

Yes.

A couple of questions. One has to do with what Luis was asking. Could you quantify the effect of divestments of Q2, Q3 and Q4? And the second question is that you said something generic about projects and the geopolitical context, and Robert has spoken about projects in LatAm. But what about projects in renewables? What is the situation? And do you think that the -- some of these relevant projects can be commissioned by the end of the year?

Carlos, well, quantifying potential divestments with asset rotation in Q2, Q3 and Q4 seems to be a little bit too ambitious. And according to what I said before, you know that if there is an opportunity, I think that this asset rotation would be worthwhile, although we are looking into different situations and we will give you all the information as things unfold as soon as we have something binding.

And then -- no, I'm referring to those that have already been done, those 3 divestments that have such a big impact on your financial statement. What kind of inorganic -- is it minus EUR 25 million? But what kind of impact do you think there's going to be for Q2, Q3 and Q4? But what divestments are you referring to?

Well, these are the adjustments of the shops and TBE and France. Well, these adjustments are something like EUR 10 million, just over EUR 10 million, with certain variations in turnover, of course. And then you were saying...

Well, renewables.

In?

In LatAm, Latin America.

Well, I would talk about the projects we have ready to build and that are pending PPAs in order to be able to decide and to do this 360 concept. We have these projects in the Dominican Republic and Ecuador. There's going to be an auction there. And we are still pending -- well, we want to reach an agreement, sign an agreement with the government. And that's how we can evaluate profitabilities and possible partners. And we will then be able to meet up with colleagues or buyers who can allow us to carry out these projects. And I think that we're going to have much more visibility towards the end of the year, in particular, especially in the Dominican Republic with the combination projects and also in Ecuador.

What about Europe?

In Europe -- well, we are still in Italy and I think that we -- it's about 80 megawatts per year which are now ready to be, and that's where we do have profitability. And we also have a number of preselected partners so that we can carry out these projects. So I think that everything is more or less underway. And finally, in Spain, we have some old developments with the new regulations, from 2 to 5 kilometers. They are small projects that could be grouped up and they could generate quite a lot of value. And we also see that we have travel companions or we have buyers, potential buyers, to see what could be done in this new model of renewables to see if we can get things done and ready to be with construction contract included in the formula.

Okay. We're going to read the questions that you've sent to the chat. We have one from [ Alvaro Aristegui ], where he says that EBITDA because of the Gulf conflict could reach EUR 4 million. What is this? EBITDA? Or is it turnover?

Alvaro, the total -- the potential budget for the Gulf or the Gulf plus Israel, that area that is affected by the conflict, we're talking about EUR 40 million in turnover and EUR 5 million in EBITDA per year. And I was saying that it's EUR 4 million potentially that could be affected because we've already invoiced over EUR 1 million -- no, sorry, not invoiced. Because we have registered more than EUR 1 million in EBITDA in that area that I'm talking about. The fact that, that would be in an absolutely maximum -- sorry, of not doing anything in the year in that area, which we think is not going to happen. So therefore, I'm talking about the maximum level of EBITDA that could be related to that area. But we never think that that's going to happen, though.

Alvaro was also asking if the -- if there's been an increase in cash flow for the company after selling the shops.

Well, this -- well, these are shops open to the general public, and it's the last thing that remained of a B2C situation, and there was only one customer. And the effect is EUR 2.5 million or EUR 3 million to recover the value of the assets. So yes, there has been cash, but it's not very relevant and it doesn't really have a very big impact either.

Okay. We'll continue with the questions from the chat. And it's [ Ignacio Andre ], who says the following, that Cerritos is somewhat late as regards to its divestments. And what is this due to, this delay of several quarters?

We've received offers in Q1, but what we can see is that what really makes sense is, as we said before, is that we need to have a complete package that includes TPAs. And we also know that Mexican bureaucracy means that the COD has been delayed. And we're really thinking about June to have everything ready on the paperwork front and the migration as well as the commercial operating date. So in the meantime, the effect that Cerritos has is only -- well, some financial expenses. As you've seen, the results have been interrupted. And what we want to do, and this is very clear, is that we're adding on all of the value elements to the asset so that the sale could be suitable and proper. So the offers are there. And I think that we will try to give it a go and close it before the end of the year.

And [ Robin Alonso ] is asking about the new strategic plan and more in particular about the opportunities that we can develop in terms of data centers, electrification and grids.

Well, I think that the new strategic plan, I think it's going to talk a lot about opportunities in relation to GDE. That is an environmental thing. But what is -- but the rest of the transitions are also going to play an outstanding role, especially the digital transition, where the data centers are. And this is just another infrastructure within the infrastructures that are required to digitize the economy. And we're working on this and this will form part of the plan. But above all, electrification and grids, well, especially in the case of electric grids, this is going to be fundamental for the new strategic plan, because, obviously, the energy transition that we are experiencing is creating lots of infrastructural needs, where we have lots of experience. Our historic business has to do with telecommunications and we have plenty of experience. And we know what we're talking about in terms of electrical grids.

Well, I don't want to make any disclosures, but let's just make people excited about this until we present the next plan. But I think that it's important to underscore that we have a GDT that only has services and projects that is grid services or energy grids, as Patricia has just pointed out, as well as infrastructure projects that are also related to renewables and to the telecommunications technology or hospital technologies or renewable farms. And GDE, which is where we have put our stakes on decarbonization and circular economy, will be only one company, and we are concentrating all of our investment capacities there for the purpose of becoming leaders, European leader, in terms of environmental systems and infrastructures.

And [ Rouven ] also points out the following, and that Cerritos is costing about EUR 900 million and EUR 3.6 million per year. And he's asking us, could we please confirm how much interest we're paying on the Cerritos debt?

Well, as you point out quite rightly, at Cerritos, the activities have been interrupted, and it's been EUR 900,000 in this quarter, which is what we expect for the year unless there are other things that we have to take into account. Well, it would be something like EUR 3 million or EUR 4 million because of interrupted activities. And this covers the expenses of the activities and the operating expenses of the farm as well as financial expenses. But we don't really have any financial expenses associated with Cerritos.

I would like to remind you that if you want to ask any more questions, this is the time to do so. And should there be no more questions, we will finalize the session here and close it down. Okay. Well, let's finish the call here. And thank you very much for having connected to our presentation. Good afternoon, everybody. Thank you very much. Bye-bye. [Statements in English on this transcript were spoken by an interpreter present on the live call.]