Iren SpA (IRE) Earnings Call Transcript & Summary

Good afternoon. Welcome to FY 2023 Conference. My name is Zack. I will be your operator for today's event for the duration of the call your lines will only be in listening mode. However, you will have the opportunity to ask questions at the end or during the conference. [Operator Instructions] I will now pass on the floor to your host Giulio Domma, Head of Investor Relations, to begin today's conference. Thank you very much, and have a good listen.

Good afternoon, thanks for connecting to the call to present Full Year 2023 Iren Results. The results will be presented by Executive Chairman Luca Dal Fabbro; and CFO, Giovanni Gazza. At the end of the presentation, there will be the usual Q&A session. I will now leave it to Luca to present the results.

Good afternoon. The Board of Directors has approved today 2023 results, which show an EBITDA that is growing significantly, exceeding expectations and guidance given in November 2023. Importantly, EBITDA growth by 14% to about EUR 1.2 billion was supported by the recovery and increased profitability of the market business unit, thanks to the effective commercial strategy as well as an increased contribution from hydroelectric generation partly due to an increase in production volumes. Leverage was kept under control below the [ 3.3% ] factor of the guidance. Results achieved thanks to the positive cash generation and actions to optimize the net working capital. Investments almost reached EUR 1 billion, of which more than 65% was allocated to regulated and semi-regulated activities, including, in particular, the development of water and electricity grades in the Waste business unit, not to mention the development of new renewable capacity for about 50 megawatts in 2023. Finally, we feel it appropriate to share the value generated in the year with our shareholders by proposing a dividend of EUR 11.88 per share to the shareholders meeting, up 8% from the dividend paid out last year with a payout of about 60%. Moving on to Page 3. We present the ESG indicators, i.e., our sustainability performance. Let's look at the key performance indicators in ESG showing that the group in 2023 continued its path of sustainable growth defined in the business plan with several indicators ahead of the set target thanks in part to about 80% of investments made with the sustainability profile. Regarding the gain transition, for instance, at the end of 2023, Iren has exceeded 71% separate waste collection in its historical territories, increasing by 12% matter recovered in its waste treatment plants, keeping its carbon intensity essentially constant as in these actually in the business plan. During the year, Iren's presence on the territory was strengthened through the increase in the number of municipalities, where we are active in waste collection and the extension of district heating an increase in the number of inhabitants served by integrated water services. Also in terms of service quality, the years ended allowing for 15% growth in renewable energy sold to customers. Achievement of 69% of the district water network, which has allowed to reduce water losses by 30%, which you see quite a lot. There are still room for improvement and to save about 5.6 million cubic meters of water in 1 year, which is a great achievement. Next slide. Transitional business, your profitability in a tough environment. If we look at this slide, we see the main economic and financial indicators in the period. Ordinary EBITDA amounted to about EUR 1.2 billion, reporting a growth by 13.7% of the previous year despite the difficult year characterized by lower energy scenario compared to exceptional levels last year due to the Russian-Ukraine war and to persistent inflationary pressure leading to a major increase in operating costs. The positive factors in the period include profitability of the Market business unit, which thanks said to an effective sales campaign not only recover the full portfolio value, but also increase its margins. A key contribution from Hydro Power due to higher prices realized due to hedging implemented ahead of 2022 and higher volumes produced, plus 42%, full contribution of integrated companies as SEI Toscana, which contributes with EUR 16 million in AcquaEnna, a Sicilian water company in the Province of Enna, which reported an EBITDA of EUR 7 million in the period, so not bad, I would say. On the other hand, there are negative elements that have characterized the period. We don't want to consider anything. We want to inform you about the positive and negative developments alike. Persistent increase in operating costs due to the macroeconomic environment and inflation and oil prices, if you -- also a private level, which have increased at least EUR 40 million, reducing the margins associated with organic growth, most of all in regulated businesses halving of the MSD margin from EUR 63 million last year to EUR 31 million in 2023 and an energy scenario with decreasing prices that has disfavored unhedged electricity production and then loss of full availability of waste treatment facilities for maintenance activities. EBIT is in line with previous year due to a provision for risk related to the price cap on renewable energy introduced in 2022 by the Italian government estimated at EUR 41 million plus higher amortization despite the significant technical investments to support the group's future growth, it was possible to maintain a net financial line that in line with the guidance. That's our polar store, thanks to our management of working capital. It's our obsession, also including credits related to super bonus I now hand over to Giovanni to our CFO.

Thank you, Luca, and good afternoon to all of you. We start looking at the results of each business unit, starting with the network by on Slide 5. Excluding nonrecurring items had positively impacted last year by about EUR 30 million and mainly related to tariff adjustments and the recognition of past green certificates, order EBITDA is down by 2%, mainly due to the persistent inflationary scenario that you were mentioning, Luca, that increased operating costs by almost EUR 2 million. As you know -- also in what happened at the end of the year, this increase is recovered in tariff revenues [indiscernible] 2024 through updated regulatory parameters around some organic growth of about EUR 100 million plus 8% over 2022 is achieved thanks to significant investments made in the past years, allowing for an increase indeed adjusted revenues of about EUR 22 million over last year. Investments are continued in line with the development of the business plant, plus 9% respect to the previous year and the related to efficiency and upgrading of electricity grid networks and also the development of the integrated virtual service infrastructures. And this investments also resulted in a significant improvement in service quality both of rotor network [indiscernible] and also regarding electricity grid outages. Finally, as you may recall, at the end of May 2023, the group an additional shareholding obtaining the majority and consolidation of AcquaEnna, which manages an integrated watercycle in the Sicilian province, contributing to an increase in EBITDA of about EUR 7 million. Slide 6. We see that the environment beyond in which we see the positive impact for the waste in the business unit -- and an organic growth and collection that is not been penalized by the worsening energy scenario and the incomplete availability of plants leaded to a 7% decline in EBITDA versus 2022. And the wealth collection business, in fact, grew by about plus [ EUR 200 million ] thanks to the successful integration of SEI Toscana, although inflation also had indeed a negative impact of about EUR 10 million in this sector. On the other hand, the treatment and disposal waste management [indiscernible] unit reported a negative performance due to lower margins of heat generated by wastage energy, lower availability of several treatment plants as a result of maintenance activities, ex-ordinary maintenance activity and the lower contribution of lenders sales compared to last year, due to the gradual depletion of their capacity. The result is also affected by the reduction in the volumes of special waste treated, which fell by 6% compared to the previous year. As far as investments are concerned, this continued during 2023 in line with our industrial plan and are up by about 5% compared to last year, mainly allocated to waste collection activities for the transformation development of differentiated collection systems as door-to-door collection and also material selection recovery plans. And we also had the realization of waste treatment plants, specifically were the treatment plant in [indiscernible] , that is a treatment to award for the production of pallets. And then we also have a [indiscernible] plant in [indiscernible] that entered into being fully operating last month. And these will positively contribute to the result of the business unit during 2024 and even more in 2025. Then on Page 7, we see the dynamics that led the energy BU to reach an EBITDA of EUR 374 million, up plus 7% from the previous year. And turning to the analysis by business areas, in renewables, hydro and solar recorded a positive result of plus EUR 52 million compared to last year, mainly thanks to higher hydro volumes plus 320 gigawatts per hour related to indeed the normalization of hydraulicity and effective agent strategy that was implemented in advance of 2022. So that hedging strategy was really effective and is made it possible to contain the negative effect of the downward trend in prices of indeed electric energy. The hydropower result was a part reduced to higher regional hydropower fees that indeed resulted in a plus EUR 81 million compared to the previous year. In Solar photovoltaic capacity in operation has grown by more than 50 megawatt over last year and reached a total of about 100 megawatts in operation at the end of 2023. Regarding heat, in 2022, the result had been penalized by about EUR 33 million by the unexpected shift of the gas index from [ P4 to PSA ], generating a nonrecurring negative effect on outstanding derivatives for EUR 33 million. So during 2023, there has been a recovery in unit marginality net offset by lower volumes sold during the first quarter of 2023. So these lower volumes were determined both by minor temperatures compared to 2022 and also energy saving actions indeed resulting from the more expensive bills that had an effect on sales. And then CCGT and thermoelectric plants has suffered in line with national dynamics from lower demand and margins in the MSD market, which amounted to a total of EUR 31 million, minus 50% compared to 2022. The negative result was only partially offset on the thermal electric BU by a higher clean spark spread capture, thanks to hedging policies and higher thermoelectric production thanks to the full availability of the bigger power plant that in 2022 had been broken for a long period. Finally, activities related to energy efficiency, reported a shrink result due to the reduction in the margin of renovation work essentially related to the super bonus and they decreased compared to 2022. And then considering the large BU market, you say this is immediately visible from the graph on the left, half the result is related to the recovery of the full value of the electric customer portfolio, which in 2022 had greatly suffered from the volatility of the energy scenario and regulatory measures on the higher prices charged on the bills. This result was made possible by adjusting the business strategy to current market conditions in which variable price contracts had become prevalent compared to those with a fixed rate. And so the composition of tariffs is a greater fixed rate component. The customer base has remained stable. Today, the portfolio is nearly 2.2 million customers with the predominance of electric customers, electricity volumes sold are down due to the group's strategic decision to reduce exposure to business customers and focus mainly on retail customers. In addition, in both electricity and gas, commodities, cost saving actions have occurred resulting in lower sales volumes. Finally, the decline in the profitability of the products and service business unit that is called Iren plus BU can be attributed mainly to the loss of government incentives on energy efficiency-related products which has significantly reduced this market. On Page 9, you can examine the elements that led to the group's net income. Depreciation -- increased by EUR 80 million, a result of the integration and you see this increased by EUR 80 million was a result of the integration of SEI Toscana and AcquaEnna, but also thanks to investments that became fully operating 2023, the item other provisions and write-downs includes the provision of EUR 41 million related to the price cap on renewables introduced by the Italian government in 2022. On this topic, we can say that we're waiting for the European Court of Justice to rule on the merits in the second part of the year. Because of the debt stands at 1.8% slightly up from the previous year, while remaining at a low level. Then of the -- you see the higher charges related to debt expansions of tax rate is confirmed at 25.6% and is lower than the theoretical value. Thanks to the nontaxability of tax credits for energy companies introduced in 2023 and this guaranteed contributions amounting to EUR 38.6 million. So the group net income for the period amounts to EUR 255 million, up [ 13% ] from last year. With regard to the evolution of the net financial position during the year, Slide 10, we observe that the net debt is basically unchanged compared to the value of the first 9 months we have an increase of EUR 585 million compared to the previous year. And this is mainly due to investments, very important investments also in 2023 and to tax credits related to the 110% super bonus works and the increase in depth is aligned with the growth in the group's operating results, which has made possible to maintain the [ NFI ] EBITDA ratio at around 3.3%, in line with the financial sustainability objectified in the plan. Indeed in the various updating of our industrial plans. So indeed, the containment of that responsible thanks to the increase in EBITDA, the optimization of net working capital and indeed also we have in change in the hydro service, and this was due, thanks to tariffs higher to the cap value and also the change from tax to fee for waste collection service. And the work amounting to indeed nearly EUR [ 318 ] million related to energy efficiency, supported by government and this will reduce service in the stock of tax credits, and we believe we have disinvestment by Sage financial entities. And now I leave the floor to Luca.

Thank you very much indeed, in 2023 despite the exogenous challenges we faced, we managed to improve the guidance, thanks in part to the effectiveness and resilience of our business model. I think it's worth highlighting the achievement of the goal in terms of net financial position, EBITDA ratio with about 3.3%, even without the contribution from the sale of minority stake in gas distribution networks. The transaction is halted because of the rationale, particularly the uncertainty regarding tenders underlying, this activity has disappeared. More details will be provided in the revised plan that we will present in June. We have a positive outlook on 2023 -- 2024 were despite the negative impact from the persistent bearish energy scenario that reduces the prices of unhedged generation volumes and heat marginality. We expect sustained growth from profitability of regulated businesses, at least EUR 70 million from tariff review and further increasing commercial margins. So these dynamics will enable the group to achieve a 2024 EBITDA in the range between EUR 1.220 million to EUR 1.230 million. Investment will continue to be in line with the business plan. We'll end the year just ended and will amounted to EUR 1 billion allocated mainly to an efficiency of the distribution networks and development of the waste change. This will bring us to [ an SI ] EBITDA ratio of about 3.3 at a constant perimeter. Should negotiations for the acquisition of Gas business units currently being finalized, be successfully concluded, then the ratio could settle in a range of 3.4, so which is still fully in line with our guidance. On the subject, we would like to add that the signing is expected soon. following the acceptance of the refurbishment plan and then the closing of the transaction, whereby we will acquire a 50% share of the company's operating divisions, but we will not consolidate -- consolidation in the next few years. Could be an option through the exercise of a call option. And now we open the floor to the Q&A. We will be glad to answer any questions and Giovanni and myself would like to thank you for your attention. Thank you very much.

First question Roberto Letizia from Equita. Good afternoon. Thanks for your presentation. I would like to dwell upon the debt in the guidance. I would like to understand what are the guidance includes in terms of potential M&As of purchase and sales in 2024. And if you can explore the M&A opportunities for current year? And if you can share your expectations about the net working capital after tax credit session for the super 100% super bonus. So the expectations in terms of underlying dynamics. And I would also like to ask -- to ask an additional focus on the business waste, which has shrunk in 2023. What are the expected drivers in 2024. What was the impact of a facility and availability for -- due to maintenance works. So what is the expected contribution from new facilities. And in the context of this explanation, why in your opinion or special waste volumes decreasing? And what do you expect for 2024 a quick question about the very low tax rate. I'm wondering whether also in 2024, you expect such a tax benefit and then a snapshot on the retail business, which has grown the most. I would like to ask you whether the signals from the market that confirm the opportunity that you can retain profitability or if there is an increase in churn rate and there are discounts granted to customers with the reduction in the integrated margin. So a snapshot of the evolution of the retail margin in the first quarters of the year.

Let me just answer the first and last question. Giovanni will then answer to the other questions. M&A opportunities in 2024, net of [indiscernible] which is an opportunity. We have to sign within the short term. We are now looking at some businesses, most of all in for [indiscernible] , i.e., companies, there are owners of photovoltaic plants. There are a couple of companies we are considering in the field of waste and we are thoroughly monitoring all that is on the market in the field of water. This is just a scouting. So there is no final decision yet, except for some due diligence activities on photovoltaic plants. And this for M&A. For the retail business, last question. As you know, we have acquired, thanks to ARERA tenders, some important areas, most notably with the new tenders, we will be the first player in some important southern provinces in Apulia region in Brazil then also in Sicily, where we strengthened our position in this safeguard business. And here, we expect to grow additionally to -- asset to combine the customers we have acquired through the tenders for electricity services and then to extend the provision of gas and additional services in the areas. So if you look at our peers, you see our expenditure comparing with Edison. So we have been able to save 70%, 80% compared to our peers. We have spent -- let me just share some figures. We have invested about EUR 17 million, EUR 320 million, EUR 240 million and EUR 238 million. This is just to tell you that we have not invested very much. We have acquired many customers. We are ranking #3. So that's not an ideal start. But for sure, we have spend less to acquire valuable customers. And there, we can also start supplying additional services and also gas. We are very optimistic about 2024 and most of all 2025, where we will have a larger customer base and the opportunity to have commercial synergies. We expect fresh EBITDA from this additional business. So we are very optimistic. Question #3 and #4, net working capital in the guidance 2024, we have also embedded of worsening net working capital, about EUR 100 million because in the decreasing energy price scenario, there is a negative impact on our performance in terms of net working capital versus 2023. And concerning facilities 2023 has witnessed a reduction in performance due to maintenance activities and also because of depletion of some lengthy capacity. As to landfills, there are some approvals pending. We deem the approval cannot be completed by end of 2024, but we will have additional lengthy capacity starting from 2025 with reference to new facilities to new plans to recover waste as the waste to energy would recycling plants in [indiscernible] plastic recovery and the double [indiscernible] we believe that in 2024, they will be operating not really under full swing. So there will be a recovery of profitability, about EUR 10 million. From 2025 onwards, we deem we will be able to get a full saturation of these plans with a more significant contribution of about EUR 20 million. With reference to special waste -- the reduction is due to situation of the landscape capacity and to the market, giving us a fewer opportunities in the field of intermediation. And -- the tax rate is very low because as you have seen, we had a significant tax credits arising from the fact that we are a high energy-intensive company, most of all in plastic treatment. This has stopped in 2023. So our forecast for 2024 is for ordinary tax rate between 30% and 31%.

Thank you very much. [Operator Instructions] Next question. Alesandro De Vito from Mediobanca.

I have 3 questions. First question is about the dividend in the last business plan, you include the 10% growth of the dividend per share. This year, the dividend per share is increasing by 8% with a negligible cut. So what's...

indiscernible] and we deem 8% to be fully consistent with the 2023 figures, 10% would, in our opinion, have been not well balanced. 60% payout is more than adequate considering the context in our results. with the reference to the guidance as is our tradition, we will be more accurate in the next quarters. Net income we have shared. We have given visibility on the other variables. We will provide additional information about the net income in the next quarterly report. Hedging in 2024. We have about 65% of renewable energy production that is hedged starting from October, November 2023. And we have an equally consistent percentage, about 60% of hedging in thermoelectric energy this on generation. On the customer side, fixed price sessions are hedged at 100%. So we are now considering hedging and planning hedging for 2025.

Can you give some price indication for this hedging?

Sure. Hedging on renewables is about EUR 130 per megawatt hour for thermoelectric about EUR 3 to EUR 4 per megawatt hour as clean spark spread. These are the marginality, we have allows us to have fixed value.

Thank you very much. And next question comes from Emanuele Oggioni from Kepler Cheuvreux.

Good evening. Thank you for your presentation. I also have some questions. Also with respect to what has been asked by previous colleagues, especially for net working capital, you mentioned before that and those scenario of inflation of energy commodities -- we have had an increase by about EUR 100 million in [ capital ] absorption in 2024, 2023. And I believe that -- other competitors of yours in 2023 -- so I wanted to understand your lag in reducing those in 2023 under this point of view. And I'm not referring about EUR 250 million super bonus EUR 164 of NWC, normal in 2023? And what are the dynamics? Why do we have those indicative dynamics in 2024, where also the price scenario is in favor of reduction of cash absorption for net working capital. So this is the first question. The second question regards of the retail business. Before you mentioned that you had [indiscernible] tenders and regarding the free market customers. There's 2 million customers what about their performances? They would barely go down in the fourth Q of 2022 with respect to my expectations. So I wanted to understand why the -- you were talking about tenders, but I wanted to talk about the customer buys. What kind of a margin, a quite level. What is the trend of the margin per customer in 2024 compared to what has been very good in 2023. So do you see an equal customer buys what kind of revolution of the margin per customer you see? This is the second question. The third question concerns of the regulated networks. In previous calls, we talked about EUR 50 million, EUR 45 million EBITDA -- additional EBITDA in 2024 from regulated networks, meaning thanks to reevaluation of [indiscernible] by about 80, 90 points compared to [indiscernible] and also the recovery of the water tariff of the water cycle business. So I wanted to understand whether this estimate is confirmed? Or is it more conservative? And the last question, if I may, is regarding hydroelectric concessions. If you can give us an update on that you are on the force of more innovative to make a proposal of partnership between public and private businesses. Do you have anything to add on these and what we could expect regarding the regulation and when things will be decided in the near future.

Yes, indeed, is a country intuitive partly depends our portfolio of generation. We have in generation -- thermal electric generation, hydroelectric generation of that as a whole reach about 90 kilowatt per hour and employment for customers of about 5 or 10 kilowatt per hour. And so we have energy. We've indeed actually a collection within 7 days. And with regard of the reduction of prices, this actually creates a lower flow since indeed the payment terms for thermoelectric are about [ 90-100 ] days. this element actually characterizes as and therefore, determines this lag. And regarding the network we had underestimated and we were very conservative because we did not actually know the increase of work, especially for the integrated hydroelectrical cycle. So it's about EUR 70 million, 80 million -- so we have a benefits are coming from also the recognition also remuneration of invested capital and also of a reflector that also affects the [ rev ] increase and the recovery of inflation regarding OpEx. And with respect to the dynamics of the customer base in 2024. As of today, we saying that our view is that the level of margins that has characterized the 2023, can be maintained also throughout the year 2024 with some possibilities of the further upside. And regarding the last question for concessions, yes, we were the first to go on partnerships between public and private. And we presented a project finance and that was approved by the region. And indeed, there would be a tender. We will participate to that since we have 1 project means that we have a last call, meaning that at equal price and value, we are the ones who will be awarded the tender. So in general, we see the other operators in great difficulties because they didn't follow this procedure. We're still a great uncertainty situation. And so the beginning of tenders, there is indeed the risk of a great venture for those who are going to free market because also funds and other operators that are quite interested in that. So we think we have operated quite well. We see whether we will be getting the tender, but we have a lower risk compared to other operators in the thermoelectric business.

Next question comes from Davide Candela from Intesa Sanpaolo.

Good afternoon, and thank you for your presentation. I also have 3 questions. The first question is a follow-up from working capital and what you have explained to us with respect to the commodity scenarios. And I was wondering, we chase the commodities or underlying that net working capital absorption and can you give us more of a middle or short-term perspectives for price scenarios? Also with respect to what we are seeing right now and what are your estimates regarding the evolution of this scenario. The second question concerns, again, the M&A issue. And I like to know whether you are induced doing a payout of minorities, you have especially on the water business and in more in general, also considering the agile operation that is likely to be finished. What is your headroom on the top of that as a full-time leverage that you could have also at the end of 2024, including [indiscernible]. And then last question regarding of the various due dates and the gap to evolution and refinancing topics so the various debt-to-maturities. Thank you very much.

Well, regarding the commodities scenarios, we have reasoned on a pool from EUR 80 million to EUR 85 for the entire year 2024. So we believe this is a low level of the PUN and how you see -- we see a very short to mid-to-long term. We might believe that there is a recovery starting from the second half of 2025 to reach [ EUR 100 ] in 2026. Regarding indeed the debt topic, in January, we have relocated a rebound of EUR 500 million, quite important operation, and we are quite good feedback 9x in due to the amount of EUR 500 million we had speculated and this allows us also to have the coverage of the bond expiring in the last quarter of 2024. The next maturity will take place half of 2025 for about EUR 500 million. Regarding the dynamics of rates, we also think that there might be a progressive reduction from a 25 basis points starting from June and of course this will be affected by inflation performances and the dynamics of indeed the gross domestic product of the euro area. Regarding the Aqua -- regarding [indiscernible], that is the minority -- thank you to the minority owned by us to I. And we will evaluate those according to the sale process of a [indiscernible] -- and based on those dynamics, we will decide whether to participate and cause the participation won't have to factor our ratio. Indeed, our sales or 3.3%, 3.4% additional sale operations we should intervene for cash-in we'll -- may make cash out, although otherwise, we want to buy the minority. Regarding [indiscernible], of course, we still have a few years to exercise the call option, we have 50%. And if we have the signing and the closing, we are 70% and to acquire the additional 50% in order to consolidate the EBITDA results. We may evaluate this in the next few years, we are not going to hurry and might position as a company. So we will see how our [indiscernible] goes if we'll see that [indiscernible] is improving their performances, we might decide to acquire it in the next few years. This is what we think.

Thank you very much indeed. Can we deep dive into working capital if we imagine the slightly higher scenario than you have depicted EUR 90 to EUR 100 will there be a small upside on the debt end of 2024. Second question in 2025. So what about the net working capital considering the expected price scenario with a view to 2026.

So I can confirm it's a likely improvement of the single energy price of the PUN those levels would bring an upside, a significant upside for us. And this will also apply to 2025. Thank you very much indeed -- thank you.

Next question from Francesco Sala, Banca ACOs.

I've got 3 questions. First question, can you split the expected CapEx in '24 by business unit. Second, the clarification about net working capital in your guidance in the EBITDA? How much is included in terms of cash collection for the super bonus of 110%. The third question, can you share with us since you have been talking about hedging production in 2025, the hedging strategies, what are the prices you are currently considering the feasible prices for that?

Net working capital and effect of the sessions of super bonus tax credits. We would like to see the EUR 250 million. Let me just give you a view concerning the last measure -- so the latest news you have probably read in newspapers. This EUR 250 million refer to 2023. And this is an amount we have already registered. So there is no risk get connected to this measure. As to the prices for 2025, we expect that in the second half of 2025 that can be a recovery and an increase in the PUN in the single energy price. So we assume values between EUR 90 and EUR 95 per megawatt hour. Breakdown of investments. We expect in the wake of continuity about EUR 1 billion investment in 2024. EUR 350 million, EUR 400 million related to grades EUR 150 million, EUR 180 million related to waste business unit, energy, EUR 220 million, of which about EUR 70 million, EUR 80 million in renewable energy sources. And then we also have corporate investments, CapEx relating to IT, EUR 60 million and market investments for another EUR 60 million. And then we should also add the M&As previously described by the Chairman.

Thank you very much indeed. There are no additional questions. I would like to remind you that you can submit questions or comment. [Operator Instructions]. No additional questions, then I'll hand over to Giulio. Thank you.

Thank you very much, indeed, for your attention. And during the next call, we welcome on the quarterly results. Happy Easter. Thank you.

We close today's conference. Have a nice evening. Thank you for joining today's call. If you wish to raise questions following today's presentation, please address them via our webcast. You may now disconnect. [Statements in English on this transcript were spoken by an interpreter present on the live call.]